Willie J Viljoen Director - ESI-Africa.com · • The following slides illustrate the importance of the 11 main Criteria or Project Management Processes, that are required to ...

Willie J ViljoenDirector

Marwillcor Project Control Services

Pty Ltd South Africa

2

• The following slides illustrate the importance of the 11 main Criteria or Project Management Processes, that are required to function satisfactory, for Project Controls to be effective.

• The 11 Criteria, or Processes are based on Earned Value Management Principles as described by the PMI, the PMBOK, Prince 2, AACE (International).

Project Management for large Power Generation Projects

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For this presentation the 11 main criteria have been grouped into 5 processes.

1.An agreed, integrated, deliverable-orientated, Work, organisational and cost Breakdown Structure (in short the WBS).

2.An agreed, high-level schedule, based on 100% of the authorised scope of the WBS.

4


The 11 main criteria have been grouped into 5 processes for ease of use.

3.An agreed Performance Measurement Baseline against which progress is assessed and performance and status can be established (in short the PMB).

4.Establish under-performance areas as early as the 15% completion mark.

5


The 11 main criteria have been grouped into 5 processes for ease of use.

5.Provide forecasts: Estimate At Completion for cost & time at agreed intervals (in short the EACc & EACt).

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J F M A M J J A S O N D J F M

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Process no. 1:An agreed, integrated, deliverable-orientated, Work, organisational and cost Breakdown Structure.


Copy of WBS typical Power generation.xlsx

7

EP

CM

Prj. Mng

QC

SHEQ

750

654=

750=

290=

150=

300=

=1 900

2 500

1 700Civil

ME&I

Boiler

1 600

1 000

1 750

150

360

250

200

765

564

200

200

200 200

200 250

Power Gen. Project

R 23 600

Unit 1 ACC Silo

5 333 3 700 3 880

EXAMPLE: Integrated Work Breakdown Structure

Deliverable

(1) Detailed WBS Element Description; (2)

Schedule; (3) EV Milestones; (4) Estimate

(Budget); (5) Assumptions; (6) Long Lead

Items; (7) Risk Register

Objective: A Signed-off Agreed Scope,

Schedule & Budget (CBE)

Pla

nn

ing

Lev

el 1

Lev

el 2

Lev

el 3

Schedule Alignment

Pa

ckg

s

A Control Account consists of:

(1) Scope; (2) Schedule & (3) Budget

Costs are collected & progress is

assessed at Control Account level

What are the

elements that will

make the deliverables

(assets) successful?

What are the

deliverables (assets)

that will make the

project successful?

RPlanning & Work

Packages

WBS is DeliverableOrientated

8

750

000=

750=

290=

150=

300=

=1 900

2 500

1 700ME & I contractor

Piping contractor

Civil contractor

Prj. Mng 1 600

QC 1 000

SHEQ 1 750

150

360

250

200

000

000

200

200

200 200

200 250

Project ABCR 23 600

Crushers Conveyors Sub Station

5 333 3 700 3 880

EP

CM


Schedule Alignment

A Control Account consists of:

(1) Scope; (2) Schedule & (3) Budget

Pla

nn

ing

Lev

el 1

Lev

el 2

Lev

el 3

Contracts

WBS is DeliverableOrientated

9


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Process no. 2:An agreed, High-Level Schedule, based on 100% of the authorised scope in item (number 1 above).


10

Mth 16Mth 01 Mth 13Mth 04 Mth 07 Mth 10

Total Proposed Project Duration

All

Pro

ject

Pa

cka

ge

s

(WP

+P

P)

&

Co

ntr

act

s

tha

t w

ill

en

sure

th

e

pro

ject

’s s

ucc

ess

Package 9

Example:

An agreed High-Level Schedule

Package 8

Package 7

Package 6

Package 5

Package 4

Package 3

Package 2

Package 1

100 % of the authorised scope, logically linked

Work Packages Include:

1. Clear Scope

2. High level Schedule

3. Budget / Costs

Planning Packages:

During the early stages, the

Scope, Schedule and Budget

for “far in the future”

packages might be a best

estimate only

11



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Process no. 3:An agreed Performance Measurement Baseline (PMB) against which progress is assessed and performance and status can be established.

12



All

Pro

ject

Pa

cka

ge

s

(WP

+P

P)

&

Co

ntr

act

s

tha

t w

ill

en

sure

th

e

pro

ject

’s s

ucc

ess

Package 9

EXAMPLE: An agreed Performance Measurement Baseline

Package 8

Package 7

Package 6

Package 5

Package 4

Package 3

Package 2

Package 1

Control

Account

200

180

200

120

800200 600 1200 1400 1500

Performance

Measurement

Baseline

100 % of the authorised scope, logically linked

The PMB, is also called: The monetary value for

the work to be performed-

Planning Packages:

During the early stages,

the Scope, Schedule

and Budget for “far in

the future” packages

might be a best

estimate only

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EXAMPLE: The final Performance Measurement Baseline (PMB).

Contract 5

Contract 4

Contract 3

Contract 2

Contract 1

200

180

120

600200 450 1000 1200 1300

Performance

Measurement

Baseline

Hig

h Le

vel

Sch

edul

e As contracts are placed, schedules are agreed,

which establishes the final Performance

Measurement Baseline (PMB).

Control Accounts: Weighted milestones are used

to assess Progress and Earned Value, and

measure Performance.

As contracts are placed, schedules are agreed, which

establishes the final Performance Measurement Baseline

The PMB, is also called: The monetary value for

the work to be performed-

90

14



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Process no. 4:Establish under-performance areas as early as the 15% completion mark.

15

15%

Anticipated CPI:

Anticipated SPI:

Establish under-performance areas as early as the 15% completion mark

Preferred Profile

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Process no. 5:Provide forecasts: Estimate At Completion for cost & time (EACc & EACt) at agreed intervals.

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Earned Schedules

Provide forecast forSchedule at agreed intervals

Schedule – Slip 3,5 weeks

Schedule Variance

(SV)

18

Provide forecast for Cost at agreed intervals

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1. An agreed, integrated, deliverable-orientated, Work, organisational and cost Breakdown Structure.

2. An agreed, high-level Schedule, based on 100% of the authorised scope in item (number 1 above).

Let’s recap the 5 processes

supporting effective

Project Controls!


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3. An agreed Performance Measurement Baseline (PMB) against which progress is assessed and performance and status can be established.

4. Establish under-performance areas as early as the 15% completion mark.


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5. Provide Forecasts: Estimate At Completion for Cost & Time (EACc & EACt) at agreed intervals.


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• Ensure that the 5 main processes are implemented and continuously visible throughout the execution phase of the project.

• No extra manpower is required to maintain the 5 processes. It is basic Project Management Principles and Teamwork that are required.

Project Management for large Power Generation Projects - in summary

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• There is no software on the market that “fixes” bad Project Management.

• The referred processes in this presentation has to be established and functioning for any cost engineering software to perform to its expectations.

Project Management for large Power Generation Projects - reminders

Willie J Viljoen Director - ESI-Africa.com · • The following slides illustrate the importance of the 11 main Criteria or Project Management Processes, that are required to ...

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