pre-project planning lessons from the construction industry institute construction industry...
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![Page 1: Pre-Project Planning Lessons from the Construction Industry Institute Construction Industry Institute Michael Davis, P. Eng, PMP Ontario Power Generation](https://reader036.vdocuments.net/reader036/viewer/2022081512/56649da15503460f94a8cddc/html5/thumbnails/1.jpg)
Pre-Project PlanningPre-Project Planning
Lessons from theLessons from the Construction Industry InstituteConstruction Industry Institute
Michael Davis, P. Eng, PMPMichael Davis, P. Eng, PMPOntario Power GenerationOntario Power Generation
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ObjectivesObjectives
Demonstrate the importance of pre-project Demonstrate the importance of pre-project planningplanning
Describe a pre-project planning processDescribe a pre-project planning process
Review some CII planning toolsReview some CII planning tools
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Construction Industry Construction Industry InstituteInstitute
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The Construction Industry InstituteThe Construction Industry Institute
Unique organizational modelUnique organizational model– 90 to 100 corporate members90 to 100 corporate members– Owners and contractorsOwners and contractors
Conducts research into best practices for Conducts research into best practices for construction projectsconstruction projects– Research done by academics under guidance of Research done by academics under guidance of
member project teamsmember project teams
Assists in moving the research into practice with Assists in moving the research into practice with implementation toolsimplementation toolsAll information is available in the public domain:All information is available in the public domain: www.construction-institute.orgwww.construction-institute.org
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What is a Best Practice?What is a Best Practice?
A process or method that, A process or method that, when executed when executed effectivelyeffectively, leads to superior project , leads to superior project performanceperformance
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CII Validated Best PracticesCII Validated Best Practices
Pre-Project PlanningPre-Project Planning
AlignmentAlignment
ConstructabilityConstructability
Design EffectivenessDesign Effectiveness
Materials Materials ManagementManagement
Team BuildingTeam Building
PartneringPartnering
Planning for StartupPlanning for Startup
Quality ManagementQuality Management
Change ManagementChange Management
Disputes ResolutionDisputes Resolution
Zero Accidents Zero Accidents TechniquesTechniques
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Value of Best Practices:Value of Best Practices:Project Cost PerformanceProject Cost Performance
N=73 N=74 N=71 N=75
Cost Category: Greater than $5MM
Project Budget Factor vs. Practices Use Index
By Practices Use Index
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Value of best practices:Value of best practices:Project Schedule PerformanceProject Schedule Performance
N=60 N=55 N=65 N=57
Cost Category: Greater than $5MM
Project Schedule Growth vs. Practices Use Index
By Practices Use Index
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““Best” Best PracticesBest” Best Practices
Pre-project Pre-project
planning planning
Change controlChange control
Planning for Planning for startupstartup
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Low Impact High Impact
LowImpact
Pre-Project Planning
Constructability
Design/InformationTechnology
Zero Accident Technique
Project ChangeManagement
Cost Savings
Schedule ReductionHighImpact
Cost Savings
Sch
edu
le R
edu
ctio
ns
Average Project Cost : $79MMAverage Project Duration : 99Weeks
Team Building
Medium Impact
MediumImpact
MaterialsManagement
Planning forStartup
Low Impact High Impact
LowImpact
Pre-Project Planning
Constructability
Design/InformationTechnology
Zero Accident Technique
Project ChangeManagement
Cost Savings
Schedule ReductionHighImpact
Cost Savings
Sch
edu
le R
edu
ctio
ns
Average Project Cost : $79MMAverage Project Duration : 99Weeks
Team Building
Medium Impact
MediumImpact
MaterialsManagement
Planning forStartup
Impact of Best PracticesImpact of Best Practices
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Pre-Project PlanningPre-Project Planning
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Pre-Project PlanningPre-Project Planning
That part of the project planning process That part of the project planning process that takes place that takes place beforebefore the project is the project is authorized to proceedauthorized to proceedSometimes called “front-end loading”Sometimes called “front-end loading”An An OwnerOwner responsibility responsibilityExpect to spend 10-25% of engineering Expect to spend 10-25% of engineering cost (up to 8% of total project cost)cost (up to 8% of total project cost)Assign project manager and best staffAssign project manager and best staffHave key stakeholders representedHave key stakeholders represented
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Major Influence
Rapidly DecreasingInfluence
LowInfluence
Scope
Definition
Influence Expenditures
ConceptualAnalysisand R&D
Pre-ProjectPlanning
BasicData andScoping
ProjectAuthorization
ProductionEngineering
andProcurement
Construction EngineeringComplete
Turnoverand
Start-up
Le
vel o
f In
flu
en
ce
Pro
jec
t E
xpe
nd
itu
res
Project Life Cycle
Opportunity for InfluenceOpportunity for InfluenceOpportunity for InfluenceOpportunity for Influence
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Pre-Project PlanningPre-Project Planning
Provides a basis for:Provides a basis for:
Informed business Informed business decisions – “doing the decisions – “doing the right project”right project”
Efficient project Efficient project delivery – “doing the delivery – “doing the project right”project right”
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CII Pre-Project Planning CII Pre-Project Planning ProcessProcess
ORGANIZE
PRE-PROJECTPLANNING
SELECT
ALTERNATIVE(S)
DEVELOP APROJECT
DEFINITIONPACKAGE
DECIDEWHETHER TO
PROCEEDWITH PROJECT
Prepare
AnalyzeTechnology
EvaluateSite(s)
PrepareConceptual Scopes andEstimates
EvaluateAlternatives
AnalyzeProjectRisks
DocumentProject Scope
and Design
Define ProjectExecutionApproach
EstablishProject Control
Guidelines
CompileDefinitionPackage
Make
Decision
Select Team
DraftCharter
Pre-ProjectPlanning
Plan
Project
FORPROJECT
BusinessCase
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Key ElementsKey ElementsKey ElementsKey Elements
Organize for pre-project planning– Create a team– Draft the charter for the planning phase– Plan the planning: tasks, deliverables, responsibilities, etc.
Select the alternative– Alternatives definition– Technology– Site/location– Conceptual scopes, estimates (-30 to +50%)– Evaluate the alternatives
FinancialHigh level risk analysis
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Key ElementsKey Elements
Create project definition package– Project objectives and priorities– Scope and preliminary design– Risk analysis– Project delivery strategies– Project Execution Plan
Prepare the business caseSubmit package to approval authorityDecide whether to proceed or not
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Project ObjectivesProject ObjectivesProject ObjectivesProject Objectives
Establish project success criteria - define the target
Sets priorities consistent with business drivers
Basis for decision making
Refined as project progresses
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Conceive Develop Execute
+100%+100%
Ex
pe
cte
d
Pe
rce
nt
Va
rian
ce
Ex
clu
din
g C
on
tin
gen
cy
-50%-50%
Order of Order of MagnitudeMagnitude
ReleaseRelease DefinitiveDefinitive(Detailed(Detailed))
Most Probable Cost
+15%+15%
-10%-10%
+5%+5%
-2.5%-2.5%
Pre-Fund Authorization Post Fund Authorization
Scope Definition - Estimating AccuracyScope Definition - Estimating AccuracyScope Definition - Estimating AccuracyScope Definition - Estimating Accuracy
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Elements of a Elements of a Project Execution PlanProject Execution Plan
Objectives & prioritiesObjectives & priorities
Scope and deliverablesScope and deliverables
Execution and delivery Execution and delivery strategiesstrategies
Organization and Organization and responsibilitiesresponsibilities
Cost estimate & budgetCost estimate & budget
Schedule & milestonesSchedule & milestones
PermittingPermitting
Safety, quality, Safety, quality, environmentenvironment
ProcurementProcurement
CommunicationsCommunications
Project controlsProject controls
Risk assessment and Risk assessment and managementmanagement
Commissioning and start-Commissioning and start-upup
CloseoutCloseout
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Sponsor’s RoleSponsor’s Role
Verify correctness of objectives, priorities and Verify correctness of objectives, priorities and scopescopeReview and concur with execution strategyReview and concur with execution strategyVerify assignment of roles & responsibilitiesVerify assignment of roles & responsibilitiesConcur with estimate and contingencyConcur with estimate and contingencyConcur with schedule milestones and Concur with schedule milestones and completion datecompletion dateVerify acceptability of project controls and Verify acceptability of project controls and change management processchange management processReview and concur with risk management planReview and concur with risk management planApprove significant changes to the PEPApprove significant changes to the PEP
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Planning OutcomesPlanning Outcomes
Understanding of objectives & prioritiesUnderstanding of objectives & prioritiesOptimum solution identifiedOptimum solution identifiedProject scope defined - what’s in/outProject scope defined - what’s in/outAlignment of participants and stakeholdersAlignment of participants and stakeholdersKnowledge of risksKnowledge of risksCredibleCredible estimate and schedule estimate and scheduleSound business caseSound business caseEffective, achievable project planEffective, achievable project plan
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Pre-Project Planning ToolsPre-Project Planning Tools
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PDRIPDRI
PProject roject DDefinition efinition RRating ating IIndexndex
Planning assessment tool developed by CII Planning assessment tool developed by CII through extensive research through extensive research
Evaluates how well the scope definition and pre-Evaluates how well the scope definition and pre-project planning has been carried outproject planning has been carried out
Provides an early indication of the probability Provides an early indication of the probability of project successof project success
Validated - tested against actual project resultsValidated - tested against actual project results
Proven effective on both small and large projectsProven effective on both small and large projects
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PDRIPDRI
70 elements are grouped into 3 categories: 70 elements are grouped into 3 categories: – Basis of decision/scope (50%)Basis of decision/scope (50%)– Front-end definition/preliminary design (42%)Front-end definition/preliminary design (42%)– Execution approach (8%)Execution approach (8%)
Each element is given a weighted scoreEach element is given a weighted scoreThe more completely an element has been The more completely an element has been addressed, the addressed, the lowerlower its score. (Similar to golf: its score. (Similar to golf: lower is betterlower is better))Maximum score of 1000 Maximum score of 1000 Score of <200 correlates with more successful Score of <200 correlates with more successful projectsprojects
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PDRI Score sheetPDRI Score sheet
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Project AlignmentProject Alignment
Common, clearly Common, clearly understood set of understood set of project objectives is in project objectives is in placeplace
All project team All project team members working members working toward the toward the samesame set set of objectivesof objectives
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Alignment ToolAlignment Tool
Developed from workshops, surveys, Developed from workshops, surveys, interviewsinterviews
Involved more than 100 experienced Involved more than 100 experienced individuals at all levelsindividuals at all levels
66 alignment issues analyzed for 66 alignment issues analyzed for correlation with project success over 20 correlation with project success over 20 projects projects 10 key factors identified 10 key factors identified
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Factors Affecting AlignmentFactors Affecting Alignment
Stakeholders are appropriately represented on the project teamProject leadership is defined, effective, and accountableThe priority between cost, schedule, and required project features is clearCommunication within the team and with stakeholders is open and effectiveTeam meetings are timely and productive
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Factors Affecting AlignmentFactors Affecting Alignment
The team culture fosters trust, honesty, and shared valuesThe pre-project planning process includes sufficient funding, schedule, and scope to meet objectivesThe reward and recognition system promotes meeting project objectivesTeamwork and team building programs are effectivePlanning tools (e.g., checklists, simulations, and work flow diagrams) are effectively used
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Alignment ThermometerAlignment Thermometer
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QuestionnaireQuestionnaire
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Alignment ThermometerAlignment Thermometer
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Other CII ResourcesOther CII Resources
Team BuildingTeam Building
PartneringPartnering
Change ManagementChange Management
Project Delivery and Contracting Project Delivery and Contracting StrategiesStrategies
Zero Accident TechniquesZero Accident Techniques
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Benefits of Pre-Project PlanningBenefits of Pre-Project Planning
Fewer scope changesFewer scope changes
Increased predictability of cost & scheduleIncreased predictability of cost & schedule
Better definition of risksBetter definition of risks
Reduced probability of project failuresReduced probability of project failures
Improved operational performanceImproved operational performance
Better achievement of business goals Better achievement of business goals
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By the time a project is released, the conditions for its success or failure are essentially established.
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QuestionsQuestions