Standardization A Roadmap

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Standardization A Roadmap Valerie
Behrendt www.kildrummy.com
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Agenda

• The Perfect Storm
• Why Standardize?
• Benefits of Standardization
• Approaching Standardization
• Kildrummy and Standardization

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Perfect Storm The First Depression
Recent Increase in Capital Spending Increase in
Oil Prices - More capital becomes available -
Marginal developments are more attractive - Cost
Control becomes more important Increased Spending
More Projects More Projects Require More People
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The Second Depression
Staff Reductions inside the Industry -
Engineering Outsourcing Workforce - Not Getting
Any Younger Lack of Experienced Personnel
Median Population Age Range 48 to 52
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Third Depression Inconsistent Processes

• Processes inconsistent and not comprehensive
• At Project Level all similar, all different
• Lessons Learned are not shared
• Project Data are not consistent from project to
  project
• Where are the project data??

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Versatility
Allows Artistic Creativity
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• Results of Spreadsheets
• Large, Multi-Sheet Files Amplifies Frequency of
  Errors
• Minimal Standardization -- Rembrandt Effect
• Inconsistent Procedures, Formats, and Outputs
• Inconsistent Terminology
• WIP, VOWD, VOWIP, ETC, BCWP
• Difficult on Management

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Why Standardize?

• Cost Reduction
• Consistency and Familiarity
• Optimize Resources
• Benchmarking
• Getting Better and Smarter
• IPA Independent Project Analysis
• Research indicates that costs are cut by 10-15
  across the program or division simply by
  standardizing.

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Consistency

• Reporting
• Consistent Reports, Formats, Timing
• Methods Processes
• Consistent ways of doing the work
• Learn best way for your company
• Consistency creates Comfort
• Most Consistent Companies McDonalds / Model T

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Familiarity

• Definitions
• Speak the same language
• Transparency
• Everyone knows and can see where we are
• Staffing Flexibility
• Moving from Project A to Project B is not a big
  deal
• Less Training and Configuration Time, lower IT
  cost

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Optimize Resources

• Avoid Wheel Reinvention
• Do not have to start from scratch each time
• Minimize the Rembrandt Effect
• New Staff Induction
• New resources up to speed more easily
• Knowledge Sharing projects using same methods
  and processes
• Knowledge Transfer
• From experienced staff to less experienced

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Smarter and Better

• Smart Start
• Project setup time is reduced
• Spend time producing, not re-creating
• Quality Improvements
• Standardization leads to higher quality
• Communication
• With consistency, communication becomes easier
  within and across projects

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Approaching Standardization Steps

• Self Assessment Versus Desired Results
• Establish Delivery Team Fund Initiative
• Path Forward
• Configuration
• Implementation
• Continuous Improvement

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Self Assessment

• Where Are We?
• Analyze Current Situation
• Understand Processes and Methods
• Understand Area Requirements
• Map Current Processes
• Understand Various Reporting Methods
• Understand internal client needs
• What is working? What is not?

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Delivery team

• Charter a subject matter expert to lead the team
• Vendor is critical team member
• Supply resources
• Establish schedule
• Fund initiative
• Proceed to develop specifications

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Path Forward

• Specification
• Document the system requirements
• Market Assessment
• Find best fit or grow your own
• Test Drive
• Be prepared to Crash

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Configuration

• Establish an oversight function
• Map the work process and use as a roadmap through
  configuration
• Document
• Test
• Develop reference and training materials
• Identify and promote super-hero

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Implementation

• Choose an implementation model
• Phased ...new projects only
• Retro-fit ...to all existing and new projects
• Special Start-up Support
• Jump start projects with initial set-up
• Super hero ready to provide hands on assistance
• Establish center for higher learning
  
• Training
• Support / Administration
• Lessons Learned / best practices

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Continuous Improvement

• Focus on Tool growth potential
  
• Benchmarks
• Historical Repository
• Enterprise wide analysis
• Portfolio performance
• Early Warning
• Future Upgrades to improve usability, performance

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Why Kildrummy?

• Kildrummy and Standardization
• Kildrummy brings
• World class software for project cost management
• Experience with Tier One Clients
• Knowledge Sharing Forums
• Industry Events
• User Community

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Kildrummy CostMANAGER

• Analyze Costs Across Many Projects
• All Projects on Single Database
• Consistent Standard Reports for All Projects
• Interface with Other Systems
• Best Practices
• Lessons Learned Project History
• KCM is a system that provides a common
  framework, promoting uniform
• work practices, producing standard reports, via
  consistent methodology,
• with one set of nomenclature.

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Thank you. www.kildrummy.com