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Managing Fast Track Projects

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					Managing Fast Track
Projects: A Guide and
     Checklists


       Dr. George Jergeas PEng
         University of Calgary
  Project Management Specialization

                                      1
Reference

  This presentation is based on the European
  Construction Institute (ECI) - UK


  ECI Manual
  The Fast Track Manual
  A guide to Schedule Reduction for Client and
  Contractors on Engineering and Construction
  Projects

                                                 2
Agenda
z Introduction
z Different Project Stages
  y   Concept Stage *
  y   Development Stage
  y   Definition Stage *
  y   Design Stage *
  y   Procurement Stage
  y   Construction Stage *
  y   Commissioning
  y   Operation Stage
z Key Issues
                             3
Introduction
z Takes place more quickly than normal

z A difficult and often stressful route to follow

z There is no boundary between a normal project
  and a fast track project

z Projects ranged from 4 - 36 months
   y Schedule reduction 10 - 29%
   y Cost increase 10 - 20%                         4
Reasons for Fast Track

z Urgent requirements by client
  y To maximize profit or limit loss


z Imposed deadline
  y Start of academic year
  y End of current lease
  y New legislation


z Minimize disruption of services
                                       5
Objectives

z To assist who are considering a fast track to
  make the right decisions


z To help implement fast track strategy
  successfully




                                                  6
Key Success factors
z The calibre of individuals and their working
  relationships

z The adequacy of the definition of the project

z Strategy adopted and systems for
  implementation

z The passion to succeed on the part of key
  participants
                                                  7
Definitions
z “A managerial approach to the achievement of early
  project delivery, involving the application of innovations
  in the management of construction procurement and
  recent advances in the process that, bringing into play;

   y The integration of construction and design phases
   y The involvement of the contractor in both the design and
     construction phases
   y Overlapping of work packages to enable construction of sections
     of the project to proceed while the design for other sections is
     being progressed
   y The employment of the expertise of suppliers in design and
     construction
                                                       Kwakye, 1991

                                                                      8
Definitions

z “Design and construction are overlapped and different
  sections of the plant are designed and built in parallel
  with significant additional risk due to the links
  between the design of different parts of the plant”
                                                 Turner, 1996



z The reduction of the the schedule to the minimum
  practicable is the principal driving force for one or more
  stages of the project



                                                                9
     Fast Track Project   Normal Project   Project Stages




10
General Principles

z Work Package Overlap
  y Work packages are progressed in parallel
  y Overlap the stages for each work package


z Early Decisions
  y Experienced judgement and empowerment
  y Commence design before scope has been defined
  y Must accept wrong decisions


                                                    11
General Principles
z Integrated Project Team
  y Main parties are combined into a single organization
    and participate to the limit of their capability in
    achieving the project objectives
  y Partnering
  y Benefits
     x   Availability of additional expertise
     x   Avoiding learning curve errors
     x   Reduction in the overall workload
     x   Commitment to the project definition and schedule
     x   Design and construction developed together

                                                             12
General Principles
z Additional Staff
  y More labour will be needed at peak period as a
    consequence of scheduling activities in parallel
  y More management resource will be needed to deal
    with interface and progress issues arising from inter-
    dependencies between disciplines and between
    design, procurement and construction


z Schedule Reduction Techniques
  y Project must be managed in an efficient manner
    making full use of project management and schedule
    reduction techniques                              13
General Principles

z Additional Risks
  y Decisions based on limited information,
    cannot always be right first time

  y A structured and thorough risk management
    process needed



                                                14
Advantages vs. Disadvantages

z Advantages
  y   Time to market
  y   Commercial benefits
  y   Short schedule (at least 10%)
  y   Reduce time period for risk exposure


z Disadvantages
  y Additional risk factors, very limited alternatives
  y Increased amount of PM, control, etc.
  y Cost increase (at least 10 – 20%)
                                                         15
Characteristics that Support
Strategy
z Ownership
  y Client support
     x Project sponsor or champion
  y Stakeholder support and commitment
z Organization
  y Project team needs to be simple, clear and devoid of
    rigid hierarchy
  y If parent organization has a functional matrix
    structure, the functional line must be subordinate to
    the project management (task) line for the duration of
    the project team
                                                        16
Characteristics that Support
Strategy
z Desirable Team Characteristics
  y Honesty - Openness - Trust
  y Anticipation and avoidance of issues rather than
    waiting for them to turn into problems
  y Mutual support - issue resolution, coaching
  y No blame culture
  y Access to all parties, no communication barriers
  y Lean organization, which aids communications and
    speeds decision taking
  y Full time members
  y Authorized and empowered team members
  y Decision making on the spot without referring      17
Characteristics that Support
Strategy
z People and Relationships
  y   Technical competence
  y   Decisiveness - self starter - can do - flexibility
  y   Ability to forecast outcome and act accordingly
  y   See the big picture
  y   Willing to collaborate
  y   Enthusiasm
  y   Strong leadership
  y   Managerial competence
  y   Openness                                        18
Characteristics that Support
Strategy
z Motivation
  y Create a team culture that avoid de-motivation of
    individuals who are keen to succeed, but are prevented
    by the organization, procedures,…..
  y Working part of a team, working equally hard and
    supporting each other
  y Appoint key positions to individuals known to be good
    motivators
  y Early identification and removal of under-performing
    individuals
  y Team building and partnering sessions
  y Incentive/penalty clauses
                                                       19
Characteristics that Support
Strategy

z Contractual arrangements
  y   Achieve win-win situation
  y   Pre-selected, preferred contractor
  y   Reimbursable basis, with incentives
  y   Lump-sum can also be used
  y   Partnering
  y   Up front agreement for payment for changes
      and extras

                                                   20
Characteristics that Support
Strategy
z Communications
  y More informal communication - face-to-face
  y Barriers should be removed - information flows
    directly between the parties regardless of
    parent organization and level of hierarchy
  y Responsibility for communication lies with the
    individual who has made a decision
  y Frequency and progress meetings
  y Frequent and concise reporting
                                                21
Concept Stage
z Introduction
       • Time to establish the concept is NOT
         recoverable
       • The opportunity to influence the
         outcome falls off rapidly
z People
       • Stakeholders (ALL Should be identified)
       • Integrated Team (Sponsor, Project
         Manager & Senior Managers from
         different key players)
       • Qualified personnel and motivated
                                                   22
Concept Stage
z Scope
       • Identify the real Goal and Objectives of
         the client
       • Identify Critical Success Factors (CSFs)
z Strategy
       • Fast tracking should be avoided unless
         the client business benefits from early
         completion significantly and outweigh
         risks
       • Contract strategy addressed and
         outlined
                                                    23
Concept Stage
z Business and PM Systems
  y Business Planning
     x process for weeding out poor projects
     x A smooth transition from business process to PM process
     x Stage gates process
  y Communications
     x Rapid transmission of information
     x IT systems
     x Publicity needs to be controlled
  y Risk Management
z Cost and Risk
     x Determination of cost is difficult
     x Limited industry information on fast track projects
     x As accurate as possible estimate to help in the decision to
       adopt a fast track strategy                                   24
Concept Stage
z Logistics
z Consideration to location of new asset in relation to:
   y   Location of customers
   y   Source and availability of feedstocks, component parts
   y   Supply routes
   y   Transport security and cost of supply and products
   y   Existing assets
   y   Workforce skills and availability
z Also should consider:
   y Locations of parties involved
        x Client site - design office - contractor - contractors
          and sub-contractor - suppliers
   y Sources of construction equipment - material - supply routes and
     methods - Site access and controls
                                                                   25
Definition Stage
z Introduction
     x Lack of adequate definition has arguably been
       responsible for more project failures
     x Expenditure of 25% of the total design effort
     x Design will need to be progressed on those
       elements of the definition that are sufficiently
       secure in order to feed information to construction
       at the earliest practicable time…
     x Quality of project definition is very often a casualty,
       with the potential for overruns of cost & time

                                                            26
Definition Stage
z People
     x Clarity of objectives
        • A clear focus on the objectives as agreed with stakeholders at
          the concept stage must be maintained in order to aid in the
          decision making process
     x Stakeholders
        • The significant stakeholders early identified should continue to
          be involved, consulted and advised
        • Any other identified stakeholders should be involved ASAP
     x Integrated Team
        • If the project has not so far been led by the project manager
          who will be responsible for seeing it through to beneficial use,
          that individual should be appointed at the beginning of the
          definition stage
                                                                             27
Definition Stage
z People
  y Suitably qualified and experienced personnel
     x The team should not be selected only on their
       technical and managerial competencies… but also
       on their ability to:
        •   Overcome the obstacles and succeed in achieving the project CSFs
        •   Work with high level of uncertainty
        •   Work flexibly outside the normal work boundaries
        •   Co-operate with others for the benefit of the project

z Project Scope
  y It is essential that the project team have a clear
    understanding of what has been agreed by
    stakeholders to be in the scope and what is outside the
    scope                                                28
Definition Stage
z Scope
   y For technical definition consider:
     x Fit for purpose (which may not be ideal sometimes)
     x Fastest to manufacture/construct rather than
       cheaper
     x Reuse of design from existing assets
     x Modular design
     x Pre-fabrication of components
     x Minimization of project scope – lean construction
       approach
     x Reduction in the number of processing steps in a
       manufacturing plant
                                                       29
Definition Stage (Cont.)
z Scope
    x Reduction in the size of the asset
    x Elimination of non-essential elements of the design
    x Standardization of layout or repeated units
    x Standard / off-the-shelf components
    x Simplification of design dependencies
    x Simplification of the build/construct/assemble
      process
    x Avoidance of innovation/new/untried elements in
      general
    x Early identification and ordering of long delivery
      items
    x Constructability / Operability                     30
Definition Stage (Cont.)

z   For the Overall Scope also consider:

     x   Achievement of the overall project objectives,
         both what is to be done and how it is to be
         achieved
     x   Whether phased completion would be acceptable
     x   Arrangements for handover and commissioning
     x   Proving and warranty test to be carried out
     x   Definition of beneficial operation / use as the end
         point of the project
     x   Project specific critical success factors
                                                          31
Definition Stage
z Project Strategy
  y It should take into account the same aspects which
    were considered in the concept and development
    stages that include:
        • Work Breakdown Structure and the ability to spilt the project into
          relatively independent parts
        • Willingness to take early decisions and accept competent solutions
        • Ability to keep options open until the last responsible moment
        • Elimination of hold points for the approval of design
        • Agreement that the project will accept the best decision in light of the
          information available at the time
        • Acceptance of risk taking, and the impact of each risk
        • Delegation and empowerment of the team to promote decisions
        • Early applications of authorization and approvals
        • Availability of benefits / incentives for all project parties
        • Opportunities to allocate risk and share rewards                        32
Definition Stage
z Project Management Procedures
  y Planning
        • It is essential that, as the definition evolves, work is scheduled on the
          basis of achieving the earliest beneficial use of the finished asset
        • It is also essential that interactive planning process advocated as a team
          building activity

  y Project Process
        • Based on the project organization, the project procedures may be those of
          the client, the contractor or one of the other parties
        • Standard processes need to be modified to accommodate the degree of
          overlap between various stages
        • Authority to approve modifications should be assigned ASAP
        • A project risk management system must be set up as part of the project
          procedures
        • A good system for project documentation is essential

                                                                                 33
Definition Stage
z Project Management Procedures
  y Project control
     x Care is needed to ensure that previously rejected ideas are not
       reintroduced at the definition stage
     x The use of Value Engineering / Constructability is essential to
       enhance the decision making process
  y Project Communications
     x A good communications system need to be established and
       maintained
     x This could include: intranet, Extranet, Internet, Chat rooms,
       Bulletin Boards, Event Calendars, Data Base, etc.
     x The greater the level of integration in the sharing and re-use of
       information the more that the communication system will
       support the project and enhance success                      34
Definition Stage
z Project Management Procedures
  y Cost and risk
  y Cost
     x Approval of cost will have to be given on a lower level of
       definition and with a wider tolerance on the estimate if the
       project is to proceed unhindered by the supply of funds
     x A cost estimate to within plus or minus 10% will not be
       obtained until the end of the design stage
     x It is recommended that a control estimate should be produced
       once all the necessary details are known
     x During this stage it will be necessary to address the potential
       cause of increased cost which may rise

                                                                   35
Workshop 1: Risks

 List risks associated with the increased level of
 overlap between definition and design stages of
 a project.




                                                     36
Solution: Workshop 1
z   Design and construction rework arising from lack of
    firm definition
z   Additional management effort at peak to control the
    project
z   Use of additional resources arising from repeat work
    and parallel working requiring more than optimal
    number of people
z   Essential additional items to achieve the CSFs which
    creep into the scope through lack of firm definition
z   Procurement against best/guaranteed delivery rather
    than lowest price
z   Additions to equipment orders as details evolve
z   Additional expediting                                  37
Solution: Workshop 1
8.    Air freighting to speed delivery
9.    Incorrect initial material quantities which may give rise
      to surpluses, or shortages which will need to be
      topped up at premium costs
10.   Additional contingencies being included in quotations
      to cover unknown elements where there is no scope
11.   High allowances in tender prices to cover penalties for
      defaults
12.   Overtime and shift working resulting in higher cost
      and loss of productivity
13.   Over design vs. waiting for detailed information

                                                              38
Design Stage
z Introduction
  y The main purpose of this stage is to finalize the design
    requirements for the project
  y This stage requires a good understanding of the options
    for compressing the schedule
  y It requires the use of the most up-to-date proven
    computer aided design
z People
  y Clarity of objectives
     x The most elegant design is useless unless it is capable of being
       built safely and to time and budget, this has to be fully
       understood by the project team and senior management
                                                                   39
Design Stage
z People
  y Stakeholders
            – The interests of all stakeholders should be kept under review as the
              design progress so that interested parties can be kept up to date and
              involved at the earliest appropriate stage

  y Alliances
            – Establishment of a long-term relationship between the companies and
              team involved helps to ensure a rapid start-up of the team involved
              on the project at each stage

  y Integrated Team
            – This stage requires the use of single design team incorporating the
              expertise of all discipline and involving those responsible for
              subsequent stages of the project
            – The design should be able to be “right first time” to minimize the
              number and duration of design reviews
                                                                              40
Design Stage
  y Integrated Team
     x The team need to be supported with appropriate collaboration
       and communication systems
     x Team members should have clearly identified roles and
       objectives to eliminate duplication and inefficiencies
     x The team members need proper empowerment to promote
       rapid and effective decision making
     x Team members should be very competent and experienced in
       order to enhance the efficiency of the design
z Project Scope
  y Clarity of definition
     x The problem with some fast track projects is that detailed
       design has to proceed without total clarity of definition
     x It is a a matter of judgment as to which areas are sufficiently
                                                                     41
       well defined to proceed without incurring too great risk
Design Stage

Project Scope
  y Extent of design
     x The extent of design details need to be defined from the
       beginning. Some elements of design has always been left to
       contractors on site to complete
     x There will be no benefit if the easy 95% of the project is fully
       detailed and the contractor is left to struggle with the difficult
       5%
     x Design can only be based on the best option at the time given
       information available
     x Early involvement of contractors and suppliers is essential



                                                                       42
Design Stage

  Over-design
     x In the absence of hard information it is necessary to make
       more generous allowances than would normally be the
       case
     x The level of the over-design will depend on the extent of
       the un-known, the significance and perhaps the cost of the
       time
     x The design can be based on the maximum expected values
       e.g., weight of structure, pressure in system together with
       an appropriate safety factor rather than waiting until
       precise values can be calculated.
     x Example: There maybe little cost difference for the project
       as a whole if piling is 30% over-designed or 50% over-
       designed, but may allow site work to proceed well ahead
       before the accurate details of the superstructure can be
                                                                   43
       determined.
 Design Stage
Design process
  y The design sequence must be planned to ensure that the
    schedule needs of construction drive the design process
    for the production at the right time of:
     x   Design information
     x   Drawings
     x   Documents
     x   Materials
     x   Equipment


  y Long lead item data sheets and specifications will need to
    be produced out of sequence with the rest of the design.
                                                          44
 Design Stage
Design process
  y Visual appearance and structural design may need to be
    compromised to achieve the fastest completion
  y Design option selection may be based on fastest to
    manufacture or build rather than lowest cost
  y Design will overlap with procurement and construction
  y Design of work packages will be in parallel
  y By-pass design areas with insufficient information and
    work to assumptions – put experienced team members to
    work resolving the issues within the black box area
  y Incorporate constructability to ensure the optimum
    construction productivity
  y Design holds must be minimized as possible
                                                           45
  y Design reviews must be carried out very thoroughly
Design Stage

Design process
z Design freeze
  y The overlap between definition, design and
    construction means that the number of
    unknowns remains higher than in a normal
    project while work is proceeding on the
    following stage
    x Only freeze part of the design which then have to
      be accepted as constraints on the rest of the
      design

                                                          46
 Design Stage
z Strategy
  y Simplicity and repetition
     x Reduction in the number of processing steps in a manufacturing
       plant
     x Reduction in the size of the asset
     x Elimination of non-essential elements of the design (de-scoping)
     x Standardization of layout or repeated units
     x Simplification of the build / construct / assemble process
  y Standard / Reusable / Off-the-shelf-design
     x Consideration should be given to re-use design of an existing
       asset
     x An existing asset can be used to train both the constructors and
       users of the new asset
     x Base the design of the long delivery items on those that already
       exist so that material procurement and fabrication can be started
       at the earliest possible time.                                47
  Design Stage
z Strategy
   y Modularization
     x If the overall design can be structured as a series of units or
       modules then there is the potential to introduce a number of
       schedule reduction approaches
     x Progress separate modules in parallel using separate design teams,
       suppliers, construction contractors …
     x Care to identify all the interdependencies between the separate
       modules and to ensure that these are taken into account as the
       design progresses.
     x If a number of the modules can be of similar design then should be
       possible to utilize the experience gained on early modules to
       improve the efficiency and time
     x In a process plant design as a number of parallel streams, rather
       than a single large stream – Smaller and off-the-shelf items
     x Consider the concept of sub-modules mounted within plant p may  48
       be interchangeable
Design Stage
z Strategy
   y Prefabrication / Pre-assembly
     x Manufacture modules off the site and under factory
       controlled conditions
     x Cladding panels complete with windows, external
       fittings, internal finishes
     x Fully finished air handling units
     x Skid mounted plant
     x Fully finished bathrooms
     x Standardized internal partitioning
     x Completed, tested, validated pilot/ process plant
  y Design tools
        • The low technology approach will often be found (on many projects) to be
                                                                               49
          the quickest to produce results
Design Stage
z Project Management Systems and Procedures
  y Planning
     x Planning of the design must be driven by the requirements of
       later stages, mostly the construction stage.
     x Interactive planning which involves all members of the project
       team in problem solving and plan optimization.
     x Critical Chain project planning methodology has been credited
       with a significant reduction in project duration. The
       methodology results in the schedule contingency, which is
       normally hidden in the planned duration of each activity, being
       removed from the critical chain of activities and being replaced
       by a number of buffers of project contingencies that are
       provided to protect blocks of activities and are visible to the
       project team
                                                                    50
Design Stage
z Project Management Procedures
  y Project Control
     x Effective project control is one of the keys to a successful fast
       track
     x It must be a dynamic process with a very short cycle time so
       that deviations are recognized and corrected
     x Design progress measurements should be at the simplest level
     x Frequent up-dates of measurements / information
     x Progress information / reports are simple, concise and easily
       available to relevant people
     x Monitoring of key trends – flogging adverse trends and forecast
       out-turns that are not in accordance with the schedule –
       including schedule float.
     x Exception reporting of items not completed to schedule
     x Progress against deliverables, milestones, CSFs and forecast out
       -turns                                                         51
Design Stage
z Project Management Procedures
  y Design Approval
     x To ensure that the client fully understands the detail of the
       assets being created and does not come up with additional or
       alternative requirements during procurement, construction or
       commissioning phases, it is necessary to have good design
       approval system which includes sign-off by the client.
     x Approval of the design sub-units that are the responsibilities of
       specialist vendors may need to take place on their premises to
       avoid delays
  y Design verification
     x Verification should commence as soon as possible to limit the
       amount of re-work

                                                                     52
Design Stage
z Project Management Procedures
     x Change Control
        • Effective change control system is essential, but is difficult to enforce due
          to the increased risk of rework arising from the overlap of design and
          construction.
        • Rapid rejection and approval will help to limit rework and minimize the
          impact of change
     x Communications
        • Good verbal communications need to be established between the parties
          so decisions are known quickly and design can progress rapidly.
        • Meetings should be kept to a minimum and focused on decision taking
          rather than communication of matters purely for interest.
        • Communications within the team should take place as needed and not be
          restricted to a meetings timetable
        • Communications with other parties outside the design team need to be
          kept up to speed with design details as they evolve
        • Full use of IT systems for storage and communication of information 53
Design Stage
z Project Management Procedures
   y Constructability Reviews
     x The integrated team is best placed to address the
       issues which arise from Constructability
       considerations as the structure and detailed design
       are evolving.




                                                        54
Design Stage
Cost and Risk Considerations
  y The main risks in this stage are of increased cost and
    delay due to sub-optimum design or incorrect design
    resulting in rework
  y The root cause can be either commencing detailed
    design before a comprehensive and firm definition has
    been agreed or from the early decision approach where
    there are interdependencies between the elements on
    which parallel working is taking place.




                                                       55
Workshop 2: Risks at the
Design Stage
z List the risks associated with increased overlap
  between design and construction stages

z List the risks associated with increased overlap
  between design and procurement stages




                                                     56
Workshop 2: Solution
z List the risks associated with increased overlap
  between design and construction stages
  y Product which is to be manufactured on the plant fails its trials
  y Failure of innovative designs as a result of putting them into
    practice without sufficient development
  y Failures of innovative methodologies as a result of hasty and
    insufficiently considered application
  y Increased level of rework as a result of:
      x Lack of firm definition
      x Omissions as a consequence of out-of-sequence design
      x Changes to design of fabricated items after delivery to site
  y Increased whole of life cost due to sub-optimum design
  y Conflict
                                                                        57
Workshop 2: Solution
z List the risks associated with increased overlap
  between design and construction stages
  y Increased capital cost arising from:
     x Modularization e.g., extra structural steel, extra
       joint/connections, greater precision
     x Over-design due to judgments based on limited information
     x Sub-optimum design through the use of standard designs or
       reuse of existing design
  y Problem at design and construction discipline interfaces




                                                               58
Workshop 2: Solution
 List the risks associated with increased overlap
 between design and procurement stages
 y Lack of understanding of scope
 y Design changes requiring revised contract and purchase orders
   leading to delays or cost increases
 y Errors or omissions in purchase of materials or equipment
 y Reduced certainty of outcome for all project parameters: cost,
   time, quality, safety
 y Interdisciplinary design conflicts arising from out of sequence
   working
 y Problems with systems integration
 y Inappropriate form of contract for those contracts which are let on
   the basis of inadequate or incorrect design information
 y Selection of inappropriate contractors
                                                                   59
 y Inappropriate allocation of risk
Design Stage
z Logistics
   y Design team location
      x The design team is the center of the project team activities
      x If the whole project team cannot be located together,
        consideration should be given to locate them all together
        through the design stage
   y Access
      x Arrangements should be made for design team to gain access
        to project site as early as possible




                                                                       60
Construction Stage
z Introduction
     x   Manage the additional risks
     x   Achieve high productivity from construction work force
     x   Good understanding of options for compressing the schedule
     x   Good risk management and communication system
     x   Coordination among all contractors and suppliers
z People
  y Clarity of objectives
     x The CSFs and what is expected of site staff in achieving these
       CSFs should be communicated to all construction staff
     x The key performance indicator against which construction
       performance is to be measured should be explained
     x The interests of the site workforce should be identified (working
       arrangements, working periods, flexibility and critical path 61
       activities)
Construction Stage
z People
  y Integrated team
     x Single integrated team with one culture should be carried
       through to the construction site (it may be difficult with many
       suppliers)
     x Contracts between the parties involved need to be set up to
       promote integration and co-operation and to enable all parties
       to be available as and when demanded by the schedule.
     x The following elements have been noted as being helpful:
         • Effective management of the overall team effort
         • Contractual obligations for all parties to work co-operatively
           regardless of direct contractual relationship
         • Design staff to be based on the construction site
         • Rapid response from engineering staff not site based
                                                                     62
Construction Stage
 y Integrated team
       • Vendors available to assist in the erection, site testing and
         pre-commissioning
       • Dedicated staff to co-ordinate and expedite permits,
         clearness, etc.
       • Commissioning staff used as construction inspectors
       • Client and commissioning staff involved in punch listing of
         defects
       • Project facilitators to deal with hold ups, interface problems
       • Joint construction and commissioning punch listing team
       • Punch list rectification squad which is separate from the
         normal construction squad to hit critical items while
         avoiding disruption to construction progress
       • Testing as part of the installation process, not subsequent
         activity
                                                                   63
Construction Stage
z People
  y Delegation and empowerment
    Authorize and empower members of the project team to
    promote rapid and effective decision taking at the
    lowest competent level
     x Necessary numbers and skills must be made available to meet
       the demands of the schedule
     x Supervision ratios may need to be increased
     x Skilled and experienced staff are employed
     x Construction team motivation is essential to enhance success
        • Remove disincentives and provide incentives
            – Schedule is challenging but realistic
            – Demonstrate management dedication and commitment
            – Remove underperforming staff from team
            – Simplify work methods
            – Avoid non-essential overtime
                                                                              64
            – Supply design information, materials, equipment, support services
Construction Stage
z Scope
     x A clear definition of scope in form of drawings and
       specifications, codes, standards and best practices.
     x Need to now what is required and how to deliver he scope
z Strategy
  y Construction plan
          •   Satisfy conditions for plant commissioning and handover
          •   Provision of agreed documentation to following stages
          •   Pull through of design, materials, equipment, resources
          •   Inclusion of output from Constructability reviews
          •   Utilization of latest proven methods and technical improvements
          •   Detailed planning / control for critical path and special operations
          •   Modularization and off-site fabrication
          •   Locations of site facilities, workshops, etc.
          •   Complete weld preps prior to installation of steelwork/pipes           65
Construction Stage
 y Site contracts
    x Number and arrangement of contractors should be optimized for speed
      of construction
 y Management and resources
    x Number and skills supplied to meet demands of plan
    x Competence in required project management and discipline skills
    x Workforce clocking / accommodation / messing facilities close to work
      faces
 y Materials and equipment
    x Materials and consumables supplied to ensure no delay through
      shortage
    x Materials management system to supply materials and equipment
      safely and efficiently to the work face
    x Generous supply of construction equipment, personal protective
    x Construction, commissioning and operational spares ordered with   66
      equipment
Construction Stage
 y Quality assurance
    x Build quality in. Do the job right the first time (inspection does
      not improve quality)
    x Systems designed to minimize rework
    x Ensure that the latest revision is n use and previous issues have
      been withdrawn
 y Access
    x Good, safe site access
    x Generous lay-down, storage and work areas for pre-fabrication,
      assembly and inspection/testing
    x Safe and unobstructed access to the work face e.g. scaffolding
    x Maximum use of mobile access devices such as “Cherry Pickers”
      and scissor lifts
 y Safety, Health and Environment                                  67
Construction Stage
Project Management Procedures
z Planning
z Construction requirements in terms of design, planning approvals,
  contracts, materials, equipment services and documentation should be
  built into the project plan from the earliest practicable time.
z Only in this way will it be possible for the preceding stages
  (Development, design, procurement) to organize their work so as to
  produce constructable design packages and constructable procurement
  packages
z Construction plan should be based on the requirements for pre-
  commissioning and commissioning
z Keep plan under review throughout the construction period.


                                                                  68
  Construction Stage
Planning
           •   Only the minimum number of essential activities on the critical path
           •   Maximize benefits from prefabricated elements
           •   Plan construction of repetitive units as a manufacturing process
           •   Package work to allow multiple work fronts in parallel
           •   Plan construction sequence so as to meet pre-commissioning and
               commissioning needs
           •   Base the schedule on shorter time intervals i.e. days or hours for critical tasks
           •   Site access arrangement
           •   Establishment of site infrastructure
           •   Work permit provision
           •   Resource demands of the schedule – recruitment, induction, training
           •   Move from area based to process system
           •   Commence construction based on early design information
           •   Key long lead and critical activities
           •   Contingency planning for critical activities
           •   Constructable work packages
                                                                                             69
           •   Deferment of non-essential items until late in the program
Construction Stage
z Project Management Procedures
     x Project Control
       Control must be a dynamic process with very short cycle time
       and include the following:
        •   Frequent monitoring of all trends in work progress
        •   Frequent monitoring of changes
        •   The use of simple progress indicator graphs (S-curve) on a daily basis
        •   Simple progress reports and easily available to relevant people
        •   Exception reporting of items not completed to scheduled
        •   Progress against deliverables, milestones, etc.
        •   Earned Value measurement
     x Change Control
        • Design changes are to be avoided
        • If design change is essential, implement through change control system
        • Resist verbal request at all costs
                                                                                 70
Construction Stage
z Project Management Procedures
  y Communications
     Communications should be:
     x Simple – limited to what is necessary
     x Pertinent
     x Timely
     x Using best available mechanism; face-to-face
  y Use of IT and 3D design tools to have a clear
    understanding of the product
  y Enable all parties to work together with an improved
    understanding of the design intent to avoid delays
    arising from misunderstandings and interdisciplinary 71
Construction Stage
z Cost and Risk
  y Mechanism for controlling costs through efficient use of
    labour and materials and the avoidance of rework
    including rectification of defective work
  y Strategies to achieve high productivity
  y Multiple shift or night shift will add to cost
  y It may be necessary for the client to provide advance
    payment to enable contractors to commit materials and
    resources ASAP.
  y Balance between risk and reward

                                                         72
Construction Stage
Logistics
   y Design support for construction should be located on site
   y If not possible then effective IT system should be used to improve
     communications and enable marked up drawings to be rapidly
     transmitted
   y Maintain the momentum of the construction site and avoid the
     need to move site labour on to less urgent work due to hold ups on
     the critical activities
   y Procurement support should be provided and include:
            •   Documentation – covering both purchasing transaction and documentation
            •   Good receipt procedures
            •   Inspections requirements
            •   Quarantine of incorrect or defective goods
            •   Storage and conservation
            •   Handling and delivery to the work face
            •   Surpluses                                                        73
            •   Returns of incorrect, defective materials and equipment
Key Issues
z With Fast Track
  y Control is redefined from “monitoring results” to
    “making things happen”
  y Performance is maximizing value and minimizing waste
    at the project level
  y Value to the client is defined, created and delivered
    throughout the life of the project
  y Coordinating action through pulling and continuous flow
    as opposed to traditional schedule driven push with its
    over-reliance on central authority and project schedule
    to manage resources and coordinate work
  y Decentralizing decision making through transparency
    and empowerment (effective communication)             74
Key Issues

y Key organizational features include leadership, teamwork
  and trust
y The construction requirement is the basis for planning the
  supply of design, documentation, materials, equipment and
  resources
y Providing the wrong goods or service the right way is waste
  “do the right project before you do the project right”
y Project control is “controlling the project”, not just
  retrospective monitoring
y Good communication are needed to support decision
  making
y Eliminate ineffective time on site activities
                                                           75
y Significant attention to project with new technology
Managing Fast Track
Projects: A Guide and
     Checklists



             Thank You

                         76

				
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About Knowledge of women