Project managemet

7/30/2019 Project managemet

1/40

Projec t Va lue Delivery, 2012w w w . P r o j e c t V a l u e D e l i v e r y . c o m

Projec t Va lue Delivery

Spec ific s of Managing

Large, Complex Projec ts

in pa rticular in the Offshore Construc tion Business

Projec t Va lue DeliveryJanua ry 2012


2/40

Projec t Va lue Delivery, 2012w w w . P r o j e c t V a l u e D e l i v e r y . c o m 2

Spec ifics of Large, Complex Projec ts

Most of us areused to day-trekking

How much doyou p repare?

Like most people

you dec ide theday b efore +minimalpreparation


3/40



Day-trekking = 500 to 1,000m heightdifference in a day

No big dea l

Whats then the deal to do 3 or 4times the same?

Is it just a matter of doing more o f thesame?


4/40



Everest base c amp:5,150m

Everest 8,848 m

Only 3,700m

Bye bye honey, Illjust c limb the Everesttomorrow ???


5/40



What is the d ifferenc e between day- trekking andc limb ing Mt Everest?

ORGANIZATION /TEAM

SYSTEMS /EQUIPMENT

PROCESS


6/40



Running a Suc cessfulLarge, Complex Projec tsCompany is

fundamentallydifferent

from running a Suc cessfulSimple Projec tsCompany


7/40

Contents



What is a La rge, ComplexProject?

Convergenc e proc ess

Survival Organization

Systems

Conclusion


8/40

Sec tion

1



What is a Large, ComplexProject?

Ab out size a nd c omplexity, andthe offshore ind ustry


9/40


What is a Large, Complex Projec t?

What is c omplexity?

Unpredictability


10/40


What is a Large, Complex Projec t?

Complex System = System with many indep endentcomponents and strong interac tions


11/40


What is a Large, Complex Projec t?In the Offshore Construc tion Industry

In the Offshore Construc tion Industry

Complex ~ EPIC projec t

Sizeab le Comp lex Proc urement & Fabric a tion & rela tedeng ineering (30, 40%+ of revenue)

Large ~ 300 MUSD+

Risk ownership va ries

lump-sum projec ts = risk & opportunity w ithContrac tor = higher potentia l marg ins


12/40


What is a Large, Complex Projec t?In the Offshore Construc tion Industry

Simple Projec tProjec t Mana gement

Engineering

Simple Proc urement

Complex Procurement

Fabrication

Logistic s

Offshoreoperations

Complex Projec t

Projec t Manag ement

EngineeringSimp le Proc ureme nt

Complex Proc urement

FabricationLogistic s

Offshore operations


13/40


What is a Large, Complex Projec tsIn the Offshore Construc tion Industry

Business Benefits of Large, Complex Projec ts

Leverage revenue / asset b ase

Lump sum higher potential marg ins

Multi-yea r p red ic tab le a c tivity / revenue / c ash

Ma rket p rem ium & market leve rage

Inc reased organiza tion capab ilities a llows totac kle new developments


14/40



MINDSET ISSUE

How do you rec ognize easily a company whic hmindset is one of Simple Projec ts?


15/40



Answer:

Acompanywherepeopleonly speakofVesselsandAssets

A c ompa ny where p eople only speak of Vessels and Assets.


16/40

Sec tion

2



Convergence proc ess

The Key To Suc cessful La rge,Complex Projec ts


17/40



Simp le Projec t Complex Projec t


18/40



Projec t Performanc e Driver(or, what kills a projec t)

Simp le projec t Large projec t

Effic iency Convergence

Potentia l upside/downside10%

+20%

- 30, -50, -100%


19/40



For Complex Projec ts, the foc us of projec t managementneeds to be on convergence

Ma in driver: avoid standby of p rojec t & ma jor assets

Projec t management is gea red on timely delivery of

a ll req uired deliverab les This might require investment = add itiona l c ost up front

Very d ifferent projec t management foc us & proc ess than

Simple Projects Read our White Paper on the Fallac ies of c onventiona l

scheduling & the way to imp lement the convergenceprocess
http://www.projectvaluedelivery.com/_library/2012-03_Falacies_Conventional_Scheduling_v0.pdfhttp://www.projectvaluedelivery.com/_library/2012-03_Falacies_Conventional_Scheduling_v0.pdfhttp://www.projectvaluedelivery.com/_library/2012-04_Convergence_management_key_success_v0.pdfhttp://www.projectvaluedelivery.com/_library/2012-04_Convergence_management_key_success_v0.pdfhttp://www.projectvaluedelivery.com/_library/2012-04_Convergence_management_key_success_v0.pdfhttp://www.projectvaluedelivery.com/_library/2012-04_Convergence_management_key_success_v0.pdfhttp://www.projectvaluedelivery.com/_library/2012-03_Falacies_Conventional_Scheduling_v0.pdfhttp://www.projectvaluedelivery.com/_library/2012-03_Falacies_Conventional_Scheduling_v0.pdf


20/40



Real life examples

Afric a , 2006: Contrac to r loses 20MUSD d irec t c ost(60MUSD ind irec t c ost) for being la te on a0.5MUSD item in a 800MUSD c ontrac t

Delay impac ted First Oil: huge organiza tiona l d isrup tion

Loses next c ontrac t w ith same Client

Numerous examples of lump sum projec ts

finishing a t c ost x2 or x3


21/40

Sec tion

3



Survival


22/40


Survival

With a Large, ComplexProjec t, the very surviva l of theContrac tor company is atstake.

Mt Everest c laimed 219 lives so fa r


23/40

Sec tion

4



Organization

Large, Complex Projec ts RequireSpec ific Organiza tion Pa tte rns


24/40


Organization

An integ rated team

Geographicallyregrouped

Team effec tiveness

Direc t report to topmanagement

Func tions support projec t

Resourc ing

Processes and tools


25/40


Organization

An experienced Projec t Manager of Simple Projec tsis not nec essarily suitable to lead a ComplexProject

Different skills required

? Would you hire this guy

to help you to the topof the Everest?


26/40


Organization

Different skills required also for

Supp ly Cha in Ma nagement

Engineering


27/40


Organization

PVD recommends that Complex Projec ts beexecuted in a d ifferent Business Unit than SimpleProjects

Complex Projec ts have d ifferent d riversc om pared to Simp le Projec ts

It is a c onsistent mista ke to try to manage b oth

types of p rojec ts in the same organiza tiona lstruc ture, with the same proc esses


28/40

Sec tion

5



Systems

Large, Complex Projec ts RequireAnother Rea lm Of SystemCapabilities


29/40


Systems

Large p rojec t = large number of parameters tocontrol


30/40


Systems

Manual systems are overwhelmed, high error rate

Need to:

manage inter-offic e remote work, remote sites

guarantee da ta c orrec tness and ac c ura tereporting

have sound forecast over p rojec t span


31/40


Systems

What systems? Doc ument control & Correspond enc e c ontrol

Cost control (different from ac c ounting)

Commitments

SCM Logistic s

Travel, HR

Timesheets

Sc hed uling & c onvergenc e p lanning

Read our White Paper on the setup of right systemsand infrastruc ture
http://www.projectvaluedelivery.com/_library/2012-08_setup_systems_infrastructure_v0.pdfhttp://www.projectvaluedelivery.com/_library/2012-08_setup_systems_infrastructure_v0.pdfhttp://www.projectvaluedelivery.com/_library/2012-08_setup_systems_infrastructure_v0.pdfhttp://www.projectvaluedelivery.com/_library/2012-08_setup_systems_infrastructure_v0.pdf


32/40


Systems

What Investment?

NOT JUST ASSETS!!

Systems: 2-5 MUSD

People

+


33/40

Conclusion



Large Complex Projec tsTransformation:

Hard and Rewarding


34/40



On averag e, people spendmore than 1 yea r to preparefor an Everest c limb

IT TAKES TIME TO BE READY!!


35/40



WITH THE RIGHT PROCESS THESUCCESS & RELIABILITY RATE

INCREASE DRAMATICALLY

More than 3,000 people have m ade it to the Everesttoday

RELIABLE PROJECT DELIVERYCAN BE DONE!


36/40



To tac kle Large, Complex Projec ts Transform the organization and its mindset / foc us

Corpora te and governanc e level

Projec t leadership level

Invest in the right tools, proc esses and peop le

It is possible to do it with the right proc ess,organization and tools

It takes effort and prac tice

It pays off


37/40



PVD rec ommendations It is an investment over severa l years. Are you

ready for it?

Change the organiza tion s mindset first

Change the organiza tion struc ture: spec ific B.U.and c a reer pa th for Complex Projec ts

Imp lement spec ific Proc esses for ComplexProjec ts in p a rticula r in scheduling &

convergence

Imp lem ent appropria te Systems tha t c an a lso beused for other ac tivities


38/40



Welcome to the top!


39/40


THANK YOU!

We Em p o w e r O r g a n i za t i o n sTo b e Re l i a b l y Su c c e ssf u l i n

Ex e c u t i n g La r g e , C o m p l e x Pr o j e c t s

Discove r mo re o n

w w w . P r o j e c t V a l u e D e l i v e r y . c o m


40/40


We Em p o w e r O r g a n i za t i o n sTo b e Re l i a b l y Su c c e ssf u l i n

Ex e c u t i n g La r g e , C o m p l e x Pr o j e c t s

Discove r mo re o n

w w w . P r o j e c t V a l u e D e l i v e r y . c o m

Projec t Soft Power

Unleashing Value

from Your

Large, Complex

Projects

Projec t Hea lth Check

Project Coaching

Organiza tiona l maturity

Tea m effec tivenessIntercultural leadership

Advanced projec t trainingProjec t Sta rtup support

Projec t Rec overy

Advanced risk management

Projec t Control and Rep orting

Support systems integ ra tion

Convergenc e p lanning

Remote sites integration

Lea dership deve lop ment

Documents

Project managemet