RELIABLE AFEs KEY DRIVERS on MEGA PROJECTS

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RELIABLE AFEsKEY DRIVERS on MEGA PROJECTS

• Jose C. Herrero, VP Project Director Fluor

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RELIABLE AFE MEGA PROJECTS

• RECENT EXPERIENCES
• EFFORT/TIME for a RELIABLE AFE
• KEY DRIVERS
• CONCLUSION

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RELIABLE AFE MEGA PROJECTS

• RECENT EXPERIENCES
• Quality
• Safety
• Schedule
• Cost
• DO WE HAVE ANY HOPE ?

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EFFORT/TIME TO DEVELOPRELIABLE AFE MEGA PROJECTS

• Gating Process
• Terminology
• Engineering Effort
• Duration
• Accuracy and Confidence Level

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KEY DRIVERS forRELIABLE AFE MEGA PROJECTS

• 6 Basic Elements
• Scope of Work (Facilities and Services)
• Cost Estimate
• Schedule
• Execution Plan and Change Management
• Risk Management
• Prime Contract
• Consistency

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KEY DRIVERS forRELIABLE AFE MEGA PROJECTS

• SCOPE OF WORK
• SOS and SOF
• Methodologies
• Suitable for the Purpose
• Support AFE Estimate
• Consistent with AFE Schedule
• Written endorsement by stakeholders

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KEY DRIVERS forRELIABLE AFE MEGA PROJECTS

• COST ESTIMATE
• Translate the Base Line into cost and
  contingencies
• Identifies anticipated cost of Project Execution
• Input by all stakeholders
• Upper Management reviews
• Escalation
• Contingency assessment
• Event Driven Risks
• Stated level of probability
• Consider an intermediate estimate

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KEY DRIVERS forRELIABLE AFE MEGA PROJECTS

• SCHEDULE
• Start with the end in mind
• Articulate and visualize the Path of Construction
• Precedence diagram
• Benchmarking
• Modularization
• Resource loaded and leveled
• Stated level of probability
• Risk assessment

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Schedule Considerations I
1
0.9
Engineering
0.8
0.7
0.6
Construction
1/3
T
Complete
0.5
0.4
0.3
0.2
0.1
0
Time
T
10
Schedule Considerations II
Percent of Total Contract Time
10
0
9
0
8
0
7
0
E
N
GI
N
EE
R
I
N
G
e
t
e
l
6
0
omp
Percent Complete
5
0
C
t
n
4
0
ce
r
CONSTRUCTION
Pe
3
0
CH
E
CK
O
U
T/
2
0
S
T
A
R
T
U
P
1
0
0
1
0
2
0
3
0
4
0
5
0
6
0
7
0
8
0
9
0
10
0
0
11
Schedule Considerations II
Percent of Total Contract Time
10
0
9
0
8
0
7
0
E
N
GI
N
EE
R
I
N
G
e
t
MODULES ONLY
e
l
6
0
omp
Percent Complete
5
0
C
t
n
4
0
ce
r
CONSTRUCTION
Pe
3
0
CH
E
CK
O
U
T/
2
0
S
T
A
R
T
U
P
1
0
0
1
0
2
0
3
0
4
0
5
0
6
0
7
0
8
0
9
0
10
0
0
Modularized Project Life Cycle
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Schedule Considerations III
Construction Progress versus Duration
100
90
15 T
80
70
60
Progress
50
25 T
40
30
20
10
0
T
10
20
30
40
50
60
70
80
90
Site Prep,
100
Piling, etc.
Construction Duration
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KEY DRIVERS forRELIABLE AFE MEGA PROJECTS

• PROJECT EXECUTION PLAN
• Strategy to meet contractual requirements
• Execution Flow Chart
• Project Management structure
• Basis for the AFE Estimate/Schedule
• Addresses the Total Project
• Written endorsement of all stakeholders
• Includes the Change Management Plan

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KEY DRIVERS forRELIABLE AFE MEGA PROJECTS

• CHANGE MANAGEMENT PLAN
• Definition and Alignment
• Different responses
• Change Management Process
• Deal with all changes promptly
• Change Management log
• Direct Impact and Disruption

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Where do you stand as a PM?
The only thing thats missing is a
conversation. As Manager, I am responsible for
the way it is.
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KEY DRIVERS forRELIABLE AFE MEGA PROJECTS

• RISK MANAGEMENT
• Guided and facilitated
• Formal and systematic
• Assess, mitigate, manage execution risks
• Integrated and positive approach
• Proactive and forward looking
• Updates
• Other benefits

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KEY DRIVERS forRELIABLE AFE MEGA PROJECTS

• PRIME CONTRACT
• Legal relationship
• Reimbursement, liabilities, notifications
• Documents commitments
• Notification matrix
• Cant cover all eventualities
• Behaviors

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CONCLUSIONYES, THERE IS HOPE!

• No replacement for experience
• Alignment
• Mega Projects are RISK projects
• Decision making process
• Different execution models
• Solid organization, populated with
  competent/experienced people and proven work
  processes