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December 18th , 2010 Jubail

Master Project Schedule Development of a Level 3Construction Schedule

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AMTPJ Construction Schedule Level 3

1. Safety Moment

2. Schedule History-Level 2

3. Objective-Develop a Level 3 Schedule.

4. Area Plan Layouts Issue for Reviews-Links

5. P6 Plan Statistics, Basis and Validation

6. Baselining and Schedule Implementation

7. Short Term Planning, Milestones and Look Aheads

8. Plan Quantity Tracking and Resources

9. Contractor Level 3 and 4 input, implementation

10.Project Reporting, Schedule Metrics and Clients.

1) Safety moment• All drivers to practice a defensive driving approach to and from work.

•See attached slide re defensive driving statistics to saving lives

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History• 1300 Activities and tracking Piling, Building & Equipment Foundations, MEIP with

Contractor support.

• Monthly reporting use and CP analysis with various degrees of success.

• Skill level as a tool is limited and based on long duration estimates, limited interface and logic connections for a large construction project.

• AMJ not on board with both schedule presentation for realistic predictions to Start Up Milestones. Looking for a more detail experienced approach to CPM through level 3, quantity tracking, resource and budgetry control management.

• Reasons to bring on more horsepower/experience to provide added detail schedule development, planning and constructability to the CM team.

Issues and Concerns• Need to develop a believable set of conditions to the Project as a whole.

• Need to develop and execute at level 3 as a minimum objective to execution.

• Need to understand the interfacing, sequencing that will allow a safe Construction using both Contractor and Direct Labor.

• Need to understand criticality and short term gains through day to day coordination.

• Current construction team and CM finding so much interface clash with an inordinate amount of coordination at interfaces.

• Lack of experience with tools of choice P6 Database software.

2) Schedule History Level 2

3)Objective-Develop a Level 3 Schedule

Objective and Outline of Development• Must deliver a level 3 schedule that has as a minimum the constructability meets all execution

strategies for the Project and has buy in by the PM, CM team, Area Managers and Contractors. Plan before schedule that is the best way to achieve a construction plan. That means more constructability improvements as alternate strategies at the top down.

• A minimum WBS by Unit/Process or /Sub Area/ CWP (Contractor)/Discipline. See current wbs.• Support the overall Major Project Objectives and through a formal Management of Change

program meet all Key Project and lower level 2/3 area Milestones.• Development Program is 1) Develop, review and issue by 30 December 2010. 2) Revise with all

current Contractor Inputs and 3)Implement a Baseline program from Jan 1st 2011.• Establish the Areas and detail to current planners on board. Review progress 2 x weekly. Roll

out status and development to PM,CM and Construction Area Manager by 20th December.• Expedite all current detail design, procurement and contract data for input to schedule.• Participate in all current supplier workshops and update the detail level 3 & 4 data into the P6

working file.• Establish basic duration estimates from either contractor level 2 (HSH, Sinusteel) and/or

suppliers for added value to meet sequence, logic and interfaces to the schedule development.• Ensure that schedule integrity and basis for a quality product is met ( IPA standard audit

procedures).• Cold Eyes review if necessary to improve the product. Add more interface and sequencing.

4) Area Plan Layouts –Issue for Constructability Reviews

P6 Layouts by Areas

• All Construction is driving the project by Area and Process line.• The Project is not only driven by Major Equipment but is unfortunately driven by a large process

building (Main Building) and Major Equipment Foundations. • All AREA PLANS and Process Lines rely on all purchase or contracts committed to a vendor

design, manufacture, logistics, sea transport, storage and site transport from any port of origin over a wide world supply chain. The history and status quo has to be managed for sequential construction and pre-staging of the project as we see it today.

• The LEVEL 3 PLAN WBS (see pdf attached) is a simple breakdown of the AREAS as follows;• Plan1 Main Building ( including Crane rails, cranes and electrification). All

Finished Grade Slabs and Underground Services).• Plan2 Process Lines ( 10 specific Trains or Lines).• Plan3 Power Distribution ( Substation, E Rooms and Power Distribution

from HV SW GR and Delivery to Main Substation).• Plan 4 Water Treatment Plant ( Areas 100 to 700).• Plan 5 Auxiliary Buildings (between 15-18 Masonry or structural Steel

Buildings)• Plan 6 Utilities for Inside Battery and Outside Battery Limits • Plan 7 Main Lab Facilities and Maintenance Facilities.• Plan 8 Other Buildings and Structures and assets that meet the scope of

the Project.• Plan 9 Turnover, Commissioning and Start Up Systems support.

• Schedule Basis, Validation and General Integrity of the Project file. ( Includes Backup and Admin).

5) P6 Plan Statistics, Basis and Validation

P6 Working Project File.• Approximately 6-7000 activities at level 3 or lower to meet the execution strategy.• Currently, no plans to develop a System Schedule for Turnover to Operations.The latter

required at or about the 50 % progress milestone.• See statistics as a pdf copy to support the development.• See Basis of Schedule and Validation Reports. No Risk Analysis and Schedule Reserve is

added. The latter performed by the PM for the AMJ Change Management Process.• Frequent working file analysis to meet the integrity of the project schedule development. (Once

a month along with all Baseline procedures.)• Critical Path Analysis to meet the optimum execution strategies.

Concerns• Proper data analysis and review prior to development.• Project set up and a level 3 schedule needed all current development to be performed in

previous phase of project.

6) Baselines and Schedule Implementation

• If the Project Execution Team can approve all the current schedule development with all its changes in strategy then a Baseline Program will be implemented.

• The current plan will then be progressed on a biweekly basis and take on a maintenance and change management process. Baselines are made when current plan logic delays and task durations are in error.

• Reporting on a large project is performed on a monthly basis with a internal review at mid month to effect all changes in the Areas based on new recovery strategies.

• Planners will run biweekly update sessions with the Construction Area Managers.• A procedure must be adhered to manage all changes and updates.

7) Short Term Planning, Milestones and Look Aheads

• Short Term Planning starts with having a short window to meet the specific objectives. This means Construction breaking down the overall schedule ( ie Baseline1).

• Planning produces a 3 week look-ahead for each Area Manager and Construction Team, Progress is marked up at bi-weekly sessions by the responsible Lead/ planner and returned for update and maintenance.

• Inputs from Procurement and Engineering are also required for logical interfaces and Equipment status.

• As a short term objective a workfront or package milestone may be set and targeted for all teams to achieve. This is a normal practice for checks and balances if the current plan is believable for both durations, logic and sequences. Adjustments are always necessary and normal on out of sequence work, parallel work fronts and interface difficulties. Other concerns are lack of resources.

Look Aheads• The effective short, medium and long term planning needs a 30/60/90 day look ahead in order

to progress a large project. After a constructability review process the current P6 plans will set the respective plans and issue to all members of the project.

• The project schedule will be cut into short term periods to manage the project effectively. The data date will be moved forward every month after all progress is maintained from Contractor and other departments ( Engineering and Procurement being mandatory under the current crisis).

8) Plan Quantity Tracking and Resources

• A second priority but part of the planning work to the project is to develop a resource based plan to meet several project objectives.

• The physical progress is imperative to check a suite of schedule initiatives. S curve management is just one metric and tool to determine both accuracy and quality to any plan.

• Quantity survey departments are required to support both contract and direct work packages. The progressing is a benefit to the project as a whole and supports any risk or alternative action plans.

• To resource the project requires a basis. This basis is normally in estimated quantities and/or equivalent direct labor /craft hours. To produce a Baseline and Project Progress curve (‘S’) the planners need to resource the level 2 activity with manhours.To be reviewed by the PM.

9) Contractor Level 3 and 4 schedules/Inputs to the Project Master Plan

Inputs by Contractors and Vendors

• All Contractor schedules should be managed on a MP,P6,P3 format and the current live files issued to the Project Master plan on or before the month end cycle drop dead dates. A monthly calendar set of 2011 dates will be issued in January. All updates completed.

• A request to support the Master Plan will be formally issued by the Project Manager.

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10) Project Reporting, Schedule Metrics and Clients

• Standard Project reporting are necessary to meet the projects commitments to both Construction team and Clients.

• These will be developed over the next month with the Project Manager.