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3 Definitions Value Practices: Strategies, techniques, methods or procedures that have proven to produce results of the highest value to an organization. Best Practices are interchangeable with Value Improvement Practices (VIPs) or “Value Practices.” Value Practices are usually from an outside source – CII and Save International.
CII Best PracticesThe Saudi Aramco Experience
Musaad Al-SaidSaudi Aramco
October 6, 2010© Copyright 2010, Saudi Aramco. All Rights Reserved.
CII-KFUPM Workshop
2
AgendaDefinitions
Background and History
Value Practices Implementation Cycle
Why Use Value Practices?
When to Use Value Practices?
Internal Study Findings
Conclusion
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DefinitionsValue Practices: Strategies, techniques, methods or procedures that have proven to produce results of the highest value to an organization.
Best Practices are interchangeable with Value Improvement Practices (VIPs) or “Value Practices.”
Value Practices are usually from an outside source – CII and Save International.
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Background and History
1993 - 1997 1998 - 2001 2002 - 2005 2006 – Present
IPA 2000 and 2004 System Benchmarking Studies
Internal Benchmarking
1993 – Voluntary use of CII Best Practices
1998 – Value Engineering Initiated
2000 – Formal Implementation of Best Practices
2004 – Project Performance Optimization Division Created
2006 – Local Consultant Training Program was Carried Out
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Value Practice Implementation Cycle
Embed
ImportValue
Practice
BENCHMARKINTEGRATE
DEVELOPIMPLEMENT
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Why Use Value Practices?
Support Saudi Aramco’s large capital program:‒ Reduced schedule durations‒ Reduced costs‒ Achieve safety and quality requirements
Benefits to Saudi Aramco include:‒ Improved project planning and execution‒ Avoidance of major changes‒ Improved project processes‒ Enhanced use of lessons learned and historical data‒ Improved team alignment
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HIGH
Ability to Influence Outcome
LOW
HIGH
LOW
Cost of Changes
$$$$$
PROJECT PROGRESS
Procurement
Construction
Start-Up
DBSP
Proposal
Design
Optimum Timefor Value Practices
When to Use Value Practices?
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VE CONSTPFSU 30%
When to Use Value Practices?
Const Constructability
LL-I Implement Lessons Learned
LL-C Collect New Lessons Learned
PDRI Project Definition Rating Index
PEP Proj Execution Plng Workshop
PFSU Planning for Start-Up
SC&CM Scope Control & Change Mgt
SO Schedule Optimization
VE Value Engineering
FUNDING
MC OS
StartUpConstruction
Detail Design / ProcurementPrelim DesignDesignBasis
100%
PFSUConst 20%
PEPW
SC&CM0%
0%
PEPW
0%
PFSU10%
PDRISOSC&CM60%
90%VE
LL-ILL-C
LL-C 100%LL-C LL-l
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Internal Study FindingsStudy Data
Selected 381 projects started during 1990-2003.
Focused on 255 projects started during 1995-2003:‒ Comparable project environment.‒ Significant numbers of projects either using or not using
best practices.
1995-2000 Low informal use of value practices2001-2003 Increasing formal use of value practices
1990-1994 Limited use of value practices
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Internal Study Findings
0%
5%
10%
15%
20%
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003PPS Year
Sche
dule
Gro
wth
0
1
2
3
4
Ave
rage
No.
of B
Ps p
er B
I
Avg BPs per BI
Schedule Growth
Joined CII Formed BPT
Limited use of Best Practices
Low informal use of Best Practices
Increasing formal use of
BPs
Trends for Best Practice Use and Schedule Growth
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0.75
0.80
0.85
0.90
0.95
1.00
1.05
1.10
1.15
1.20
1.25
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003PPS Year
His
toric
al C
ycle
Tim
e In
dex
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
5
Ave
rage
No.
of B
Ps p
er B
I
Internal Study Findings
1998 Baseline = 1.00
Actual
Original Plan
Avg BPs per BI
Joined CII Formed BPT
Limited use of Best Practices
Low informal use of Best Practices
Increasing formal use of BPs
Trends for Historical Cycle Time IndexPPS-OS Duration Compared with 1998 Baseline
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Internal Study Findings
-7.5%
-5.0%
-2.5%
0.0%
2.5%
5.0%
7.5%
10.0%
12.5%
15.0%
17.5%
20.0%
Best Practice Use
Sche
dule
Gro
wth
~0 BPs126 Projects
8.8%
1990-94
4.6%
1.4%
0-1 BPs156 Projects
2+ BPs99 Projects
1995-2003
Schedule Growth vs. Best Practice Use 1990 - 2003
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Internal Study Findings
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
Best Practice Use
Sche
dule
Gro
wth
$10 - 20 MM $20 - 50 MM<$10 MM >$50 MM
9.0%
- 0.4%
6.3%
2.9%2.3%3.5% 3.1% 1.9%
2+ BPs12
0-1 BPs81
2+ BPs37
0-1 BPs23
2+ BPs22
0-1 BPs29
2+ BPs28
0-1 BPs23
Schedule Growth vs. Best Practice Use by Project Size
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ConclusionValue Practices use is a journey, not a destination.
VPs are not a cure-all solution.
VP implementation is a continuous process and key to achieving Saudi Aramco’s objectives.
CII Best PracticesThe Saudi Aramco Experience
Musaad Al-SaidSaudi Aramco
October 6, 2010© Copyright 2010, Saudi Aramco. All Rights Reserved.
CII-KFUPM Workshop
