it might just be planning but ... jonathan crone
DESCRIPTION
This is one of many excellent presentations given over the last three years of the eVa in the UK series. They can also be found in the archive at: http://evaintheuk.org/archive along with back-copy video footage in http://evaintheuk/pmchannel EVA19, the long established Earned Value conference, has this year described its theme as looking at a project management ‘ABC’ – Agile, Benefits and Complex. The four day event, which returns to the Armourers Hall, runs from the 19th to 22nd of May with the flagship conference being held on 20th and 21st May and workshops before and after. The conference will look at how this ‘ABC’ can be made to work within a portfolio and how agile fits into major and minor projects. It will investigate how to manage the relationship between portfolio benefits and project budgets, and whether complex projects even exist. Conference organiser and APM chairman, Steve Wake says: “Currently there is little evidence that this ‘ABC’ is being effectively deployed and managed. This conference aims to address that concern through EVA’s trademark blend of learning and professional development. Case studies and unusual presentations, delivered by top-notch speakers and experienced practitioners, will again engage and entertain the audience. We’ve used string quartets to illustrate points in the past and this year we will be using a Blues band for the first time.” Speakers across the two days include many familiar faces from the APM events programme including; Adrian Pyne of the APM ProgM SIG ‘Changing the project wasteland with a portfolio culture that works,’ APM Honorary Fellow Tim Banfield Director at the Major Projects Authority and Stephen Jones, Sellafield and Planning Monitoring and Control Specific Interest Group (PMC SIG) and Carolyn Limbert of the APM PMC SIG to talk about agile, benefits and complex. Peter Taylor, the Lazy Project Manager will be presenting on “The project manager who smiled” and the ever popular Stephen Carver will present the leadership lessons that can be learnt from Alfred the Great. In addition, there will be speakers from AIRBUS, TfL, Bloodhound, Heathrow T2 and London Tideway Tunnels. The conference will be supplemented by a number of workshops being held at the Chartered Institute of Arbitrators, Bloomsbury Square on Monday 19th and Thursday 22nd May 2014. 'eVa in the UK' http://evaintheuk.org is building a reputation, brand and a learning legacy for the Project Management Profession. The event series is now in its nineteenth year. It is almost as if it all kicked-off when Steve Wake was in short trousers and knights roamed the land on their chargers! #eva19 is an excellent example of Listening, Learning and Leading #apmLLL in action, and great opportunity for professional development. I would encourage anyone who is interested in 'Building a better Project Manager,' to take a look at the web site, book your place and get involved.TRANSCRIPT
‘It might just be plumbing but………….’
15th June 2011
Jonathan Crone
2Page 20-Jun-11
Outline
An insight into some of the challenges faced when implementing EVA and integrated Project Controls into an established deep sea construction company
3Page 20-Jun-11
Subsea 7 An introduction to Subsea 7 and the work we do
Our Vision
To be acknowledged by our clients, our people, and our shareholders, as the leading strategic partner in seabed-to-surface engineering, construction and services.
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Where we operate
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A global leader
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Something about our projects
8Page 20-Jun-11slide 8
Northern Production line Offloading Buoy
Riser Tower
FPSO mooring
Northern Water injection line
Gas injection line
Southern Production line
Southern Water injection line
Major Project – 183km Offshore Angola
Umbilicals
Service line
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Flowlines
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Umbilicals
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RISER TOWER
• 1,240 m
• 4,057 T
• 2.3m diameter
• 11 Risers
• 1 umbilical
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EVA in Subsea 7 So, its fancy plumbing, but………..
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Key Considerations
• Financial and Statutory focus
• Global Environment
• External and Internal Stakeholders
• Best Application of EVA - ‘Horses for Courses’
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Financial and Statutory Focus
FINANCE PROJECTCONTROL
REPORTING •Forecast(POC)•Treasury/ tax•Year end •Currency
•PM Forecast •Scope•Project Life•‘As-sold’ rates
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Financial and Statutory Focus
FINANCE PROJECTCONTROL
REPORTING •Forecast(POC)•Treasury/ tax•Year end •Currency
•PM Forecast •Scope•Project Life•‘As-sold’ rates
DISCIPLINE •Accountants•Financial Control•Accuracy of historic data•Focus on Actual
•Project Profession•Delivery to scope and budget•Trends and likely outcome
17Page 20-Jun-11
Financial and Statutory Focus
FINANCE PROJECTCONTROL
REPORTING •Forecast(POC)•Treasury/ tax•Year end •Currency
•PM Forecast •Scope•Project Life•‘As-sold’ rates
DISCIPLINE •Accountants•Financial Control•Accuracy of historic data•Focus on Actual
•Project Profession•Delivery to scope and budget•Trends and likely outcome
SYSTEMS •Accounting systems eg JDE, SAP, Excell
•Cost Management eg Cobra
18Page 20-Jun-11
Financial and Statutory Focus
FINANCE PROJECTCONTROL
REPORTING •Forecast(POC)•Treasury/ tax•Year end •Currency
•PM Forecast •Scope•Project Life•‘As-sold’ rates
DISCIPLINE •Accountants•Financial Control•Accuracy of historic data•Focus on Actual
•Project Profession•Delivery to scope and budget•Trends and likely outcome
SYSTEMS •Accounting systems eg JDE, SAP, Excell
•Cost Management eg Cobra
STRUCTURES •Financial, eg:entities, Chart of Accounts•Transactions
•Scope and Cost, eg:WBS•Control Accounts
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Financial and Statutory Focus
So the answer is….
Acknowledge the differences and….
Play to our strengths!!!
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Play to our Strengths!!!Systems, Structures and Reporting
POC
Manual/Auto
PROJECT REPORTING
COBRABudget
ForecastPerformance
AnalysisVariations
PRIMAVERA
Progress DataDates
Offline Analysis
Ad Hoc reports
SAPPurchasing
RatesPaymentsInvoicesACWP
Project StructureTimesheets
Misc. Local
Costs
FINANCIAL REPORTING
Data structures mapped at ‘Control Level’ between
systems to enable integration at Control account level
Actuals
Structure
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Play to our Strengths!!!Systems, Structures and Reporting
Internal Resource
Financial Control in SAP
Ship and Equip Allocation
Procurement
Project
Network Activities
WBS Elements
Awards, Commitments and Actual Expenditure
Proj
Cost Management and Project
Performance in Cobra
Budget, Forecast, EVA, PMSR
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Play to our Strengths!!!Reporting
Sensitivity Reporting:
POC
Worst Case
PM ‘Achievable’
Best Case
Enables a view of risk exposure whilst being able to support market figures
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Play to our Strengths!!!Reporting
• EVA metrics form part of:
Project Dashboards
Country, Territory and Corporate Portfolio Reports
Used to cross check integrity of forecast
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Play to our Strengths!!!Disciplines
It is important to achieve clarity of role and purpose. This has been done through:
Right organisation structure
Clear Role Profiles
RACI
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Play to our Strengths!!!RACI
PROJECT CONTROLS AND FINANCE FUNCTIONSPROJECT COST CONTROL AND PROJECT ACCOUNTANT - RACI
ACTIVITYProject Cost
ControlProject
Accountant1. Cost Planning R I
2. Cost Estimating R C
3. Cost Forecasting R C
4. Cost Tracking R C
5. Budget and Scope Control R I
6. Value Engineering R I
7. Inflation R
8. Contingency Management R I
9. Recovery Planning R C
10. Valuation R I
11. Breakdown Structure R C
12. Convert As-Sold Budget R C
13. Actual Work Performed + Forecast Deviation R C
14. Forecasting R C
15. Determine Trends R C
16. Valuation of Sensitivities R C
17.Variation Control R I
18. Variance Analysis R I
19. Cost Profiles and Currency dentification R C
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Internal and External Stakeholders
• Revenue vs Cost
• Programme/Progress measurement
• Legal Entities
27Page 20-Jun-11
Best Application of EVAHorses for Courses!
Influences on the application of EVA:
• Project Phases: eg Vessels can be 60% of project costs
• Type of Work – pipelay, fabrication, Engineering
• Contract Conditions – EPC or Reimbursable – small vs large
• Corporate View vs Project View
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In Summary
Its not just the work that can make the application of EVA difficult:
• Financial and Statutory implications, eg:
– POC
– Tax
– Currency
– Entities
– Year end
• External and Internal considerations
• Nature of our projects:– Type of contract
– Nature of work
– Phase of work
29Page 20-Jun-11
…..But it still has a value at all levels of the Project Organisation!
10.01.11 30Page
seabed-to-surfacewww.subsea7.com