Building a Solid Project Plan

Presented by George Baskin, PhD

About Me

George Baskin

• Over 30 years of Experience

• Burns & McDonnell since 1999

• Principal, Project Development

• PhD, Engineering Science

– Mechanical Engineering

– Industrial Engineering

• St. Louis, MO

• Personal Life

– Wife & 4 kids

– Church musician

• Setting the Stage

– The life of a project

• Project Planning & Definition

– How are we going to do this?

– How fast can we do this?

– How much does it cost?

• You Need a Well Oiled Machine

– Developing & keeping team alignment

Topics

• Business Planning Phase *

– Identify a business need and plan how to satisfy.

• Front End Planning Phase *

– CAPEX allocation ready plan for project execution.

• Project Execution Phase

– Execute project design, procurement and installation.

• Operation Phase

– Start-up through decommissioning, dismantling, or other

disposal.

Project Lifecycle Phases

Stages & Gates

• What will be the product?

• How are we going to produce the product?

• How much product will we produce?

• What is the product market value?

• What is our anticipated revenue stream?

• What are our CAPEX and OPEX goals?

• Can we make a profit?

• Does this appear to be a viable business venture?

Business Planning Phase

Identify and Define the Business Case

• What will be our anticipated OPEX?

– Staffing plan - Rolling stock plan

– Materials sourcing plan - Maintenance plan

• What will be our required CAPEX?

– Facilities - Plant equipment

– Process control - Project bulks

• Is the project plan CAPEX allocation ready?

• Is the Business Case still valid?

Front End Planning Phase

Validate or Disprove the Business Case

0 Feasibility 1 Concept 2 Detailed Scope Design &

Construct

3

Feasibility Report

PDRI 1

Filter Options

Generate

Options

Initiate Phase

Project Definition

Package

PDRI 3

Cost & Schedule

Control Estimates

Finalize Scope

Definition

PDRI 2i

Preliminary Reviews

Preliminary

Design/Eng.

Initiate Phase Initiate Phase

PDRI 2

Concept Phase

Report

Evaluate and

Select Best

Alternatives

Conceptual

Scopes and

Estimates

Analyze

Alternatives

• Stage 1 Purpose

– Evaluate Feasibility

– Initial validation of the Business Model

• Stage 1 Package

– Conceptual Scope Definition

– +50/-30% Capital Cost Estimate

– Gate review to align the project team on deficient project

definition areas that need to be addressed during the next stage.

Pre-Project Planning Stages

• Stage 2 Purpose

– Evaluate and select technology alternatives

• Intermediate gate may be used to help select “the” alternative to

develop to final stage 2 level.

• Stage 2 Package

– Preliminary Scope Definition

– +/-25% Capital Cost Estimate

– Gate review to align the project team on deficient project

definition areas to be addressed during the next stage.

Pre-Project Planning Stages

• Stage 3 Purpose

– Fully define project scope

– Allocate personnel, resources and capital required to execute the

project

• Stage 3 Package

– Detailed Scope Definition

– +/-10% Capital Cost Estimate

– Gate review to identify deficient project definition areas that must

be addressed before the conclusion of stage 3 and CAPEX

allocation.

Pre-Project Planning Stages

• Improved predictability

• Safe construction and operation

• On schedule

• On budget, maybe even under

• Successful startup and operation

• May reduce the project total lifecycle cost

by as much as 25% to 30%.

Why Bother?

So, how do we get our

team aligned and

keep it aligned?

Alignment is achieved when the project team is

working toward common objectives.

A Well-Oiled Machine

Alignment is based on well-developed and

well-understood, common objectives.

Alignment is…

• Important for any project in any company

• Reduces miscommunication

• Builds and maintains team motivation

• Promotes cost efficient application of resources and capital

Especially critical for newer organizations with a

developing corporate identity and minimal legacy.

Alignment

• Conflicting Values and Goals

– Different team members bring the values, attitudes and goals

characteristic of their origin.

• Project Complexity

– Complexity can obscure objectives and raise the risk of selecting

an inappropriate objective.

• Conflicting Objectives

– Develop balance of objectives that reflects the owner’s interests

and is acceptable to team.

• Conflicting Guidance

– Project team members may be influenced by stakeholder /

managers from their functional group who provide guidance in

support of goals that conflict with the project objectives.

Barriers to Alignment

• Projects seldom evolve throughout their development

without surprises that require revisiting the balance of

objectives relating to cost, schedule, quality and safety

Changing Project Drivers

• Formation

– Owner resp.

– Business goals and

limitations

• Communication

– Written objectives to the

team

• Integration

– Negotiation

• Agreement

Setting Objectives

• Project objectives should be

formed early.

• Influence on cost and schedule

fades rapidly as the project

matures and details become

more rigidly defined and

resources committed.

Set Objectives Early

• Business/Financial (image, fundraising, burn rate)

• Marketing (turndown, quality, $/unit)

• R&D/QA (purity/quality, process control & flexibility)

• Technology (established, serial #1)

– Identify IP “crown jewels” that need protection

– Develop a project IP protection plan

• Capital Projects (design rate & CAPEX)

• Operations & Maintenance (safety, up-time & OPEX)

Rank the drivers honestly!

What Are the Drivers?

• Is it specific and identifiable?

• Is it oriented toward single-ended results?

• Is it set against a deadline?

• Is it attainable?

• Is it responsive to organizational needs?

• Is it controllable?

• Is it assignable to responsible parties?

• Will it be used to evaluate the success of the

project?

Objective Agreement Test

Thank you!

Questions?