executing large epc/epcm projects using scrum...
TRANSCRIPT
EXECUTING LARGE EPC/EPCM PROJECTS USING SCRUM VALUES AND PRINCIPLES
$BILLION AGILE
$BILLION AGILE
WHAT PROBLEMS NEED SOLVING?▸ Unclear priorities, roles
▸ Working in silos
▸ Lack of visible progress on what’s
important and why
▸ Lack of accountability to each other
▸ Lack of understanding of true state
of project
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SESSION OUTLINE
▸Background on Gas Plants, EPC/M projects, and WHY Scrum?
▸Applying Scrum to a Large ($1B) EPC Project
▸Scrum Values, Roles, Artefacts, Events
▸Results
▸Applying Scrum to a Large ($3B) EPCM Program
▸Approach to Multiple Organizational Cultures and Concurrent Projects
▸Results
▸Taking it another step
NATURAL GAS PROCESSING PLANTS AND LARGE EPC/EPCM PROJECTS
BACKGROUND
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WHAT’S A GAS PLANT?▸ Processing of Natural Gas
▸ Takes feed stock from surrounding
wells and removes water, sand,
sulphur and other hydrocarbons
▸ 400 million cubic feet per day
… times ~5 … every HOUR
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$BILLION AGILE
ENGINEERING, PROCUREMENT, & CONSTRUCTION PROJECT
Engineering: Deliverables are detailed design and resultant drawings
for equipment procurement and construction
Procurement: Deliverables are POs resulting in materials on site when
they are needed
Construction: Deliverable is an operating gas processing plant built
safely
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COST OF DELAY
▸ Delays in Reviews/Approvals
▸ things don’t get engineered or
purchased fast enough
▸ therefore they don’t arrive on
time
▸ therefore less time for
construction
▸ higher risk of delayed ROI
$BILLION AGILE
WHAT PROBLEMS NEED SOLVING?▸ Unclear priorities, roles
▸ Working in silos
▸ Lack of visible progress on
what’s important and why
▸ Lack of accountability to each
other
▸ Lack of understanding of true
state of project
3 PILLARS OF SCRUM
SOUNDS LIKE THE
TRANSPARENCY, INSPECTION, AND ADAPTATION
BUILDING A $B GAS PLANT
APPLYING SCRUM VALUES/PRINCIPLES TO AN EPC PROJECT
STACK RANK PRIORITIZATION OF ISSUES AND MINIMIZING WIP
FOCUS
REGULAR FEEDBACK LOOPS ON HOW WE WORK TOGETHERCOURAGE
OPENNESS
TRANSPARENT ITERATIVE
PLANNING AND INSPECTION
WORKING AGREEMENTS
RESPECT
COMMITMENT TO GOALS / OUTCOMES NOT PARTICULAR SOLUTIONS
COMMITMENT
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APPLYING SCRUM ROLES
AN EXISTING ROLE CALLED THE PROJECT MANAGERRESPONSIBLE FOR REGULARLY ESTABLISHING THE PRIORITIES AND CONTEXT FOR THE TEAM
PRODUCT OWNER
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A NEW ROLE WE CALLED A TEAM FACILITATOR INITIALLY RESPONSIBLE FOR HELPING THE TEAM KEEP AN AGILE MINDSET AND COORDINATING THE TRANSPARENCY OF GOALS, PROGRESS AND IMPEDIMENTS.
SCRUM MASTER
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A GROUP OF MULTIDISCIPLINARY SPECIALISTS JOINTLY RESPONSIBLE FOR PRODUCING VALUABLE DELIVERABLES TO BE CONSUMED BY THE CONSTRUCTORS
DELIVERY TEAM
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APPLYING SCRUM ARTEFACTS▸ Product Backlog
▸ Sprint Backlog
▸ Product Increment
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PRODUCT (PROJECT ISSUE) BACKLOG
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PRODUCT (PROJECT ISSUE) BACKLOG
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SPRINT BACKLOG
‘PRODUCT’ INCREMENT
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APPLYING SCRUM EVENTS▸ Sprint
▸ Sprint Planning
▸ Daily Scrum
▸ Sprint Review
▸ Sprint Retrospective
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ITERATION PLANNING
DAILY STAND-UP
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▸What we accomplished, what has been actualized in the
schedule
ITERATION REVIEW
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ITERATION RETROSPECTIVE
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RESULTS
▸ We were able to gauge progress
based on empirical evidence …
rather than “it’s on track until it’s not”
▸ We were able to ensure that the
team regularly understood what the
project priorities were that
superseded their respective
discipline priorities
▸ Transferred techniques to site for
Turnover
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RESULTS
▸Priority issue cycle time was
reduced by a factor of 3.
▸Reduced the overall Project
Cycle time by 5-10%
▸ The project management team
was able to maintain the
original project schedule until
the plant was sold.
BUILDING A PROGRAM OF EPCM GAS PLANTS
APPLYING SCRUM VALUES/PRINCIPLES TO EPCM
$BILLION AGILE
RESULTS▸Plant 1/3
▸G2S 38 days EARLY
▸Plant 2/3
▸G2S 86 days EARLY
▸Plant 3/3
▸G2S 167 days EARLY
▸Program > 10% UNDER budget
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▸Design one build many
▸Concurrent activities
▸Execute vs Oversight
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APPROACH TO CULTURE▸ Started as Traditional-based
Execution and Scrum-based
Oversight … NOPE
▸ Attempt to shift to a new culture …
Mission, Vision, Values … Patrick
Lencioni
▸ Transition ownership of Scrum
approach to EPC
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APPROACH TO COMMUNICATION▸ Scrum of Scrums approach to
Program priorities / roadblocks
▸ Applying lessons to successive
projects in program sprint to sprint
▸ 24 hr rule
▸ Excel, screen sharing, telephone …
still not as good as situation room
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APPROACH TO WORK PRODUCT▸ Iterative ‘just enough’ model reviews
▸ Breakdown/breakthrough model
▸ Seeing the gap between what is
predictable and what is desired
▸ Challenging the status quo
▸ Committing to exceed
“THE RESULT OF APPLYING AGILE AND BREAKDOWNS IS THE REALIZATION THAT CHALLENGING THE STATUS QUO AND USING NON-LINEAR THINKING IS REQUIRED FOR SUCCESS. THIS DOESN’T SHOW UP IN A GANTT CHART.”
Team Survey commentary
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RESULTS▸Plant 1/3
▸G2S 38 days EARLY
▸Plant 2/3
▸G2S 86 days EARLY
▸Plant 3/3
▸G2S 167 days EARLY
▸Program > 10% UNDER budget
THE FUTURE OF AGILITY IN EPC/M PROJECTS
Source: Leighton Winkler
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THE FUTURE IS MINDSET OVER MECHANICS
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AN AGILE MINDSET MIGHT ALLOW US TO …▸Automate the schedule progress update process to minimize
the time it takes to understand progress [this is akin to
continuous integration/testing]
▸ Iteratively review and update the schedule logic to ensure it
is current and reflects today’s reality [this is akin to release
planning]
▸Use a floating and fluctuating end date (as scope is usually
fixed) to allow the impacts of changes to be seen
immediately [this is akin to release planning]
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DECLARATION OF INTERDEPENDENCE (PMDOI.ORG)▸Agile and adaptive approaches for linking people, projects and value
▸We increase return on investment by making continuous flow of value our focus.
▸We deliver reliable results by engaging customers in frequent interactions and shared
ownership.
▸We expect uncertainty and manage for it through iterations, anticipation, and
adaptation.
▸We unleash creativity and innovation by recognizing that individuals are the ultimate
source of value, and creating an environment where they can make a difference.
▸We boost performance through group accountability for results and shared
responsibility for team effectiveness.
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IN CLOSING
▸Scrum is about feedback loops; ITERATIVELY inspecting and
adapting:
▸What we work on
▸How we work together
▸Scrum CAN be applied outside of software with substantial
benefit
▸Scrum’s success depends on modeling specific values and a
growth mindset
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MORE QUESTIONS?
▸ Simon Orrell, P.Eng. PMP CEC
▸ (403) 630-6442
▸ www.snowdolphin.com
▸ @snowdolphin
