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Pre-Project Planning. Lessons from the Construction Industry Institute Michael Davis, P. Eng, PMP Ontario Power Generation. Objectives. Demonstrate the importance of pre-project planning Describe a pre-project planning process Review some CII planning tools.

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pre project planning

Pre-Project Planning

Lessons from the

Construction Industry Institute

Michael Davis, P. Eng, PMP

Ontario Power Generation

objectives
Objectives
  • Demonstrate the importance of pre-project planning
  • Describe a pre-project planning process
  • Review some CII planning tools
the construction industry institute
The Construction Industry Institute
  • Unique organizational model
    • 90 to 100 corporate members
    • Owners and contractors
  • Conducts research into best practices for construction projects
    • Research done by academics under guidance of member project teams
  • Assists in moving the research into practice with implementation tools
  • All information is available in the public domain:

www.construction-institute.org

what is a best practice
What is a Best Practice?
  • A process or method that, when executed effectively, leads to superior project performance
cii validated best practices
Pre-Project Planning

Alignment

Constructability

Design Effectiveness

Materials Management

Team Building

Partnering

Planning for Startup

Quality Management

Change Management

Disputes Resolution

Zero Accidents Techniques

CII Validated Best Practices
value of best practices project cost performance

Project Budget Factor vs.

Practices Use Index

Cost Category: Greater than $5MM

N=73

N=74

N=71

N=75

By Practices Use Index

Value of Best Practices:Project Cost Performance
value of best practices project schedule performance

Project Schedule Growth vs.

Practices Use Index

Cost Category: Greater than $5MM

N=60

N=55

N=65

N=57

By Practices Use Index

Value of best practices:Project Schedule Performance
best best practices
“Best” Best Practices
  • Pre-project planning
  • Change control
  • Planning for startup
pre project planning2
Pre-Project Planning
  • That part of the project planning process that takes place before the project is authorized to proceed
  • Sometimes called “front-end loading”
  • An Owner responsibility
  • Expect to spend 10-25% of engineering cost (up to 8% of total project cost)
  • Assign project manager and best staff
  • Have key stakeholders represented
opportunity for influence

Influence

Expenditures

Opportunity for Influence

Low

Influence

Major

Influence

Rapidly Decreasing

Influence

Level of Influence

Project Expenditures

Scope

Definition

Conceptual

Analysis

and R&D

Pre-Project

Planning

Basic

Data and

Scoping

Project

Authorization

Production

Engineering

and

Procurement

Construction

Engineering

Complete

Turnover

and

Start-up

Project Life Cycle

pre project planning3
Pre-Project Planning

Provides a basis for:

  • Informed business decisions – “doing the right project”
  • Efficient project delivery – “doing the project right”
cii pre project planning process

Business

Case

CII Pre-Project Planning Process

Analyze

Project

Risks

Analyze

Technology

Document

Project Scope

and Design

Evaluate

Define Project

Site(s)

Select

Execution

Team

Approach

Prepare

Conceptual

Draft

Establish

Scopes and

Charter

Project Control

Estimates

Guidelines

Prepare

Evaluate

Make

Pre-Project

Compile

Project

Alternatives

Planning

Definition

Decision

Package

Plan

ORGANIZE

DECIDE

DEVELOP A

SELECT

PROJECT

WHETHER TO

FOR

PROJECT

DEFINITION

PROCEED

PRE-PROJECT

ALTERNATIVE(S)

PACKAGE

WITH PROJECT

PLANNING

key elements
Key Elements
  • Organize for pre-project planning
    • Create a team
    • Draft the charter for the planning phase
    • Plan the planning: tasks, deliverables, responsibilities, etc.
  • Select the alternative
    • Alternatives definition
    • Technology
    • Site/location
    • Conceptual scopes, estimates (-30 to +50%)
    • Evaluate the alternatives
      • Financial
      • High level risk analysis
key elements1
Key Elements
  • Create project definition package
    • Project objectives and priorities
    • Scope and preliminary design
    • Risk analysis
    • Project delivery strategies
    • Project Execution Plan
  • Prepare the business case
  • Submit package to approval authority
  • Decide whether to proceed or not
project objectives
Project Objectives
  • Establish project success criteria - define the target
  • Sets priorities consistent with business drivers
  • Basis for decision making
  • Refined as project progresses
scope definition estimating accuracy
Scope Definition - Estimating Accuracy

Pre-Fund Authorization

Post Fund Authorization

Conceive

Develop

Execute

+100%

+5%

+15%

Expected Percent Variance

Excluding Contingency

Most Probable Cost

-2.5%

-10%

-50%

Order of

Magnitude

Definitive

(Detailed)

Release

elements of a project execution plan
Objectives & priorities

Scope and deliverables

Execution and delivery strategies

Organization and responsibilities

Cost estimate & budget

Schedule & milestones

Permitting

Safety, quality, environment

Procurement

Communications

Project controls

Risk assessment and management

Commissioning and start-up

Closeout

Elements of a Project Execution Plan
sponsor s role
Sponsor’s Role
  • Verify correctness of objectives, priorities and scope
  • Review and concur with execution strategy
  • Verify assignment of roles & responsibilities
  • Concur with estimate and contingency
  • Concur with schedule milestones and completion date
  • Verify acceptability of project controls and change management process
  • Review and concur with risk management plan
  • Approve significant changes to the PEP
planning outcomes
Planning Outcomes
  • Understanding of objectives & priorities
  • Optimum solution identified
  • Project scope defined - what’s in/out
  • Alignment of participants and stakeholders
  • Knowledge of risks
  • Credible estimate and schedule
  • Sound business case
  • Effective, achievable project plan
slide24
PDRI
  • Project Definition Rating Index
  • Planning assessment tool developed by CII through extensive research
  • Evaluates how well the scope definition and pre-project planning has been carried out
  • Provides an early indication of the probability of project success
  • Validated - tested against actual project results
  • Proven effective on both small and large projects
slide25
PDRI
  • 70 elements are grouped into 3 categories:
    • Basis of decision/scope (50%)
    • Front-end definition/preliminary design (42%)
    • Execution approach (8%)
  • Each element is given a weighted score
  • The more completely an element has been addressed, the lower its score. (Similar to golf: lower is better)
  • Maximum score of 1000
  • Score of <200 correlates with more successful projects
project alignment
Project Alignment
  • Common, clearly understood set of project objectives is in place
  • All project team members working toward the same set of objectives
alignment tool
Alignment Tool
  • Developed from workshops, surveys, interviews
  • Involved more than 100 experienced individuals at all levels
  • 66 alignment issues analyzed for correlation with project success over 20 projects  10 key factors identified
factors affecting alignment
Factors Affecting Alignment
  • Stakeholders are appropriately represented on the project team
  • Project leadership is defined, effective, and accountable
  • The priority between cost, schedule, and required project features is clear
  • Communication within the team and with stakeholders is open and effective
  • Team meetings are timely and productive
factors affecting alignment1
Factors Affecting Alignment
  • The team culture fosters trust, honesty, and shared values
  • The pre-project planning process includes sufficient funding, schedule, and scope to meet objectives
  • The reward and recognition system promotes meeting project objectives
  • Teamwork and team building programs are effective
  • Planning tools (e.g., checklists, simulations, and work flow diagrams) are effectively used
other cii resources
Other CII Resources
  • Team Building
  • Partnering
  • Change Management
  • Project Delivery and Contracting Strategies
  • Zero Accident Techniques
benefits of pre project planning
Benefits of Pre-Project Planning
  • Fewer scope changes
  • Increased predictability of cost & schedule
  • Better definition of risks
  • Reduced probability of project failures
  • Improved operational performance
  • Better achievement of business goals
slide36

By the time a project is released, the conditions for its success or failure are essentially established.