Olympic Delivery Authority*
EVA 16London 2012 Update15 June 2011
Presented by David Birch
* prepared by CLM Delivery Partner Ltd
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London 2012 UpdateProgramme status in May 2011
Learning LegacyProgramme StrategyFrameworkDelivery PlatformMethodsReportingMaturity Timeline
Benefits and Lessons Learned
Our EV system v ANSI /APM
Q&A and feedback
The Olympic Park nearing completion
Olympic Stadium - Complete 31 March 2011
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Olympic StadiumOlympic Stadium – complete for LOCOG Overlay
Aquatics - forecast completion 19 July 2011
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Aquatics Centre in Games configuration with temporary standsPools full and up to temperature
Velodrome - Complete 12 Jan 2011
BMX – forecast completion 1 July 2011
Basketball Complete - 27 May 2011
Basketball
Basketball Interior at completion
11Athletes Village - First Block complete, progressive completion to November 2011
12 May 2010Landscape & Public Realm – completion forecast February 2012
Landscape & Public Realm – Wetland flood defences complete
Handball – Complete 11 May 2011
Handball - Interior
Multi Storey Car Park – Complete 28 January 2011International Broadcast Centre – Complete 15 April 2011Main Press Centre – forecast completion 25 July 2011
Lea Valley White Water Centre – Complete December 2010
Test Events - on the horizon
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Basketball – 16th to 21st August 2011London Basketball International Invitational
BMX – 19th & 20th August 2011UCI BMX Supercross World Cup
Beach Volleyball - 9th to14th August 2011Visa FIVB Beach Volleyball International
Mountain Bike – 31 July 2011Hadleigh Farm Mountain Bike International
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Progress in numbers…Over 12,500 workers on the (secure) Olympic Park
Accident Frequency Rate is 0.16
Significant Environmental Incident Rate is 0.03
Programme Budget is £9.3bn
Current ODA Budget is £7.3bn
Games time scope of Olympic Capital Programme is on schedule and 87% complete
Schedule Variance = (£16m), SPI = 0.99
Cost Variance = (£8m), CPI = 1.00
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Earned Value – Programme StrategySingle data collection structure implemented through project teams and into Tier 1 contractors
Fully integrated budget-loaded programme
Earned Value (£) as the common means of reporting progress over a diverse programme of projects
Various funding sources and strict budgetary and change governance
Use of NEC3 Contracts on Olympic Park & off-park venues
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Programme Controls - FrameworkStable but flexible delivery-driven WBS created
Original Baseline Budget (OBB) or ‘Yellow Book’ published (November 2007)
Baseline modelled in systems & reconciled to OBBManagement subsystem links established via the WBS and procurement codes
Robust change control process implemented
A ‘control culture’ and trust in reporting accuracy built up
Forecast dataset created in P6
All contracts included Project Controls requirements
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Delivery Platform - Performance Measurement & Commercial Management
CLM Level 1 Schedule
CLM Level 2 Cost Loaded Schedule
P6ProductionDatabase
Tier 1 Contractor Cost Loaded Schedules
Labour (hours and cost)EquipmentMaterialsSuppliesContracted ServicesTransport and TravelOther
P6External
DatabaseN o . A ct ivit y Jan F eb M arch A p ril M ay T arg et Act ual C hang es
10 1 Project M an £10 £10 £10 £10 £10
10 2 Design £12 £40
10 3 Tenders £30
10 4 Substructure £15 £20 £40
10 5 Superstrucutre £50 £70 £80
10 6 Snagging £10
CLM Commercial ManagementTier 1 Contractors Submission Under NEC Contract
Resources & NEC Activity List
Schedule Performance & Cost Performance
Reports etc.
Detailed EVand %
Complete
Reviewed by CLM - Summary
Submitted
Actual Cost(via CLM
Cert)
COBRA
Earned Value
Actual Cost
ODA Finance (Oracle)
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Methods
Anticipated Final Cost (AFC)
(AFC = cost to date + estimate for remaining work)
AFC = Actual Costs + (Budget at Completion – Earned Value) CPI
Variances (favourable is positive, unfavourable is negative)
Cost Variance (CV) = Earned Value – Actual Costs
Schedule Variance (SV) = Earned – Planned Costs
Variance at Completion (VAC) = Budget at Completion (BAC) – Anticipated Final Cost (AFC)
Performance Indices (favourable is >1.0, unfavourable is <1.0)
Cost Performance Index (CPI) = Earned Value / Actual Cost
Schedule Performance Index (SPI) = Earned Value / Planned Value (Baseline)
% Scheduled / Complete / Spent
% scheduled = Baseline Value (planned costs) BAC
% complete = Earned Value BAC
% spent = Actual Costs BAC
X 100
X 100
X 100
Varying Techniques were used, ranging from tracking progress against key quantities (number of piles driven, tonnes of steel erected or metres of cable pulled), through assigning value to milestones, down to Level of Effort (LOE) for Services/ demand led activities.
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ReportingOne week to turn around month-end results
Flash reports to remove data anomalies
Project Cost Performance Reports
Programme Cost Performance Report
Project Status Report
Monthly Programme status report -Dashboards used for communicating key performance trends to senior management
Monthly/Quarterly Project Reviews
Quarterly Funders Report
Mon
th E
nd
Monthly EV Reporting Cycle
2006 2007 2008 2009 2010 2011Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
Controls Building Blocks in Place
Baseline developed & Yellow Book Published
Culture & Trust Established
Systems Maturing
Change Control implemented
Monthly & Quarterly Reviews
Trending Process
AFC process
Monthly Trend Reviews
Monthly Trend & AFC Reviews
Simplify Baseline
Schedule Integration maturing
Support & Training
Assurance, Support & Intervention (where necessary)
Align Reporting
Maturity Timeline
Big Build; CompletionBig Build; StructuresBig Build; FoundationsDesign, Dig, Demolish
Governance Framework
Mature Programme Controls Schematic
Tailored reports to support
Governance decision points
Key Meeting
Key Meeting
Functions (Design, Town Planning, SHQE, etc) and Stakeholder
defined priority themes
Contract Admin (inc Procurement)
Change Control
Risks, Issues and Trends
Schedule &Integration
Cost Engineering
Enterprise Accounting C
ontro
lled
Per
form
ance
M
anag
emen
t Bas
elin
e
WBS
WBS
Approved Changes
Contractor Project Team
Contractor Project Team
Contractor Project Team
Com
mon
pro
cess
es &
tool
s de
fined
in
Con
tract
Wor
ks In
form
atio
n
Per
form
ance
D
ata
Contractor Project Team
Performance
Data
Reporting hub for analysis
Data with
Narrative
Dat
a w
ith
Nar
rativ
e
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BenefitsEV was pivotal in the successful programme controls used for London 2012.
All 32 criteria specified in ANSI / EIA 748 and APM were applied, the most influential being: 1. Define authorised work and resources via WBS3. Ensure management subsystems support each other, the WBS and the OBS8. Maintain Performance Measurement Baseline at Control Account (C/A) level
15. CBB = approved project budgets + contingencies17. Prohibit multiple accounting as direct costs are summarised through the
WBS22. Produce monthly performance measurement data at C/A level27. Develop monthly AFC’s and compare to CBB28. Incorporate all authorised changes in a timely manner
Baseline kept current (via change control) to reflect the developing delivery strategies
Comprehensive Risk process integrated with Controls
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Lessons LearnedSpend the time and resources to get your Baseline right (and minimise heartache down the road)
Keep Baseline high level and ensure Forecast is dynamic and integratedEveryone must work within the WBS structure
Cost collection system fully keyed-in by coding
Contractors keyed in at lower levels
Provide right level of alignment, training and assurance to include:
Customer’s and stakeholder’s organisations
Early engagement with Contractors teams
Run Services and Operations on Level of Effort (with performance measured against milestones and KPI metrics)
Keep checking fitness-for-purpose
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London 2012 EV System v ANSI and APM
1. Implemented and used in checks and balances
2. Implemented and influential when required
3. Implemented, enforced and very influential over the programme
Criteria Ranking Criteria Ranking Criteria Ranking1 3 12 2 23 32 2 13 1 24 13 3 14 1 25 24 1 15 3 26 25 1 16 2 27 36 2 17 3 28 37 2 18 1 29 28 3 19 1 30 29 2 20 2 31 310 2 21 2 32 311 2 22 3
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Final thoughts from London 2012 Team
Be FlexibleAdjust the systems deployed to suit the phase and nature of construction
Keep it SimpleSimplified terms Clear, concise and graphic reportingData analytics but report on the issues
Aim for ‘No Surprises’Comprehensive BaselineSpotting risks and issues early enables early mitigationLeads to effective management of scope, cost & schedule
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Q&A and feedbackQ & A
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