Turnaround Scope Management - Simple?

In order to achieve reliable performance objectives, focus on Turnaround Management Methodologies is essential. Within the Turnaround Management framework sits Scope Management which is a significant driver influencing performance in all key areas of any Turnaround. The single best payoff in terms of success comes from having a defined scope early. Then establishing a clearly defined scope baseline is the next essential step to realizing and controlling Turnaround performance metrics and achieving success. Once the baseline has been reconciled with the Schedule and Budget Baselines all added work must be follow the integrated change order process. By endorsing proactive Scope Management strategies risks that impact Safety, Budget, Schedule and Quality performance can be qualified and quantified to enable objective resolution to priority management.

Although it may seem redundant, just like planning for execution it is important to establish a mandate and Planning methodology to ensure all objectives of the configuration are achieved. Treating the development and planning stages as a legitimate project will pay significant dividends throughout the Turnaround lifecycle.

Project Controls..the weatherman of the EPC world

As my role changes and evolves; diverting from focus on mechanical and technical aspects of the Turnaround and Operations environment to the challenges of Capital Projects I have recognized some crossover and disconnects of terminology. Case in point regarding Earned Value the expression of "budget" and "forecast" have two distinct meanings. Often budget and forecast used interchangeably, which can be challenging if there has been no discernible no distinction between the two.
Understanding the budget is derived from the planned estimate of the anticipated cost to complete the scope defined within each work package which is then rolled up to a WBS/CBS component. The planned estimate is an estimate; however, it is an essential component to provide a forecast. The budget plan becomes the performance measurement baseline.  The budget (Cost Baseline) is therefore a rigid plan of spending that is established prior to the start of work.  The forecast is a separate mechanism for predicting the final outcome once the work starts or it becomes clear that things aren’t going exactly according to plan.
Think of it in these simple terms: we forecast the weather, but we cannot plan it.   The weather, in this case, is the unexpected thing that happens to our projects once work gets under way.  Cost overruns, delays and rate changes are common examples of the weather we encounter.
If there is a delay that starts to require more hours than planned, the Project Manager can use forecasting tools within the Earned Value Management system to manage the risk of delay, ignore, mitigate or accept the problem and then show the effect of the risk management plan. In short, forecasting is used to protect the Estimate At Completion (EAC) figure and manage the project to keep this figure within thresholds.  What the manager cannot do is change anything that affects the budget without following a formal process.  If the budget was changed every time there was a problem and without a formal audit trail of the change, then the performance measurement baseline would be compromised along with the integrity of the earned value data.

Summarizing Physical % Complete in P6

Probably most common method reporting percent complete in Primavera is Physical Percent CompleteFor those of us who utilize Primavera Scheduler P6 and beyond there has been some idiosyncrasies that are more of a pest than anything. One of these consistent issues is that Physical % complete does not automatically roll up or summarize to it's assigned WBS level. This occurs as far as I can figure out because there is no link between Physical Percent Complete and Remaining Duration. This promotes logic of estimating Remaining Duration from a software perspective as well as mitigating the effects of the 80/20 rule. With all of this said Physical Percent Complete provides qualitative or personal judgment measurement.

How ever like many of these characteristics there is a workaround even though it is somewhat dirty.

Navigate to the WBS window then in the bottom layout  "Earned Value" tab (WBS Details folder) choose "Activity % complete" as the technique for Performance % complete. Then add  "Performance % complete" column to your layout.
Now, you can see the summarized Performance % complete in your WBS band in this layout.

How much are your Skills Worth?

Link: 2010 Salary Matrix and Survey

 "This is the most in-depth one-of-a-kind survey of Professional Engineers and Geoscientists undertaken in Alberta. The survey resulted in information being received from 151 employers from 15 industry sectors with over 11,938 individual salary data points from Alberta’s engineers, geologists and geophysicists; this represents slightly more than 20% of registered APEGGA members.Value of Professional Services is to provide guidelines for both Alberta employers and individual members of the three professions (Engineering, Geology, and Geophysics) in determining salary and other payroll and benefit rates and programs. APEGGA believes individual members are responsible for establishing with their employer the level of remuneration to be received in return for professional services provided. Using the information in the Value of Professional Services plus any other information accessible to you, you can judge if you are adequately paid given your industry sector and the economic activity within that sector, working conditions, responsibility, performance, and situation."

 

Planning for Productivity

The number of hours per work day a resource (Craftsman) spends directly working on execution of the scheduled planned Turnaround, Project or Maintenance activities is directly tied to performance.
With this said, one of the most challenging areas that continues to allude our attention is establishing true understanding of realistic,transparent productivity factors that are endorsed by senior management, benchmarked and applied.
Too often resources burdened with the bias associated with unsatisfactory production and ability. Unfortunately the reality in most cases begins when the logistics associated with indirect activities such as permitting, safety, tools, equipment, materials, labor & non-labor support are coupled with insufficient instructions to execute scope are not satisfactorily expressed and quantified. The output of the isolation between planned work and indirect factors constitutes the Chaos Theory of Turnaround Management. This theory is often artfully expressed at the grassroots level as quoted "Chaos is Cash", which seems to be the underlying motto for many Turnarounds. Although statements such as the  "Chaos is Cash" motto may suggest and endorse the lack of confidence with craft disciplines skillset and work ethic the opposite is true. Without an established Turnaround Management Plan reinforced by best practices, tailored processes, policies and procedures and a mature team of subject matter experts, craft resources will continue to carry the responsibility of unsatisfactory productivity and competency.
By establishing a clearly defined and engineered plan coupled with a high level of accountability for schedule compliance the risks associated with  productivity can be defined, articulated and managed. Variance analysis tools can be effectively utilized exposing legitimate claims that validate real risks. The risks then can be documented to improve current and future dilemmas prior to becoming realized consequences.
In time the understanding of expectations, limitations and constraints will better define productivity and redefine the Turnaround environment.

Managing Variances

As the Turnaround environment evolves many Managers and Sponsors are becoming more aware of the value of Planning, Scheduling and especially project controls. This is leading to a renovation of the expectations of how Turnarounds are monitored, controlled and effectively managed. The Turnaround Manuals of the past are becoming much more explicit Turnaround Management Frameworks. New climate conditions produce a backdrop to better understand risks and opportunities in an dispassionate light.
This leads to the title and the main inspiration of this post.

Those whom are intricately involved in the process of reporting earned value and variances understand the variables and inherent stresses of delivering value added reports that support the plan. However, variances are often misunderstood management tools that have adopted an association with failure. It is somewhat peculiar that little or no variance is often an underlying expectation during Turnarounds. On the contrary, it should be expected and understood that variances are an inevitable certainty. Through this evolution of emotional intelligence and maturity, risks and opportunities can be forecasted, mitigated or dissolved early enough to minimize negative impacts. With environmental development of, truly understanding the performance measurement baseline is measured on the plan and that planning is the best evaluation of the effort and scope of work during the Planning Phase better management practices can be employed. Essentially, management isn't about being perfect and being right, it is more about recognizing and repairing what goes off track. This is where the management part of the Earn Value Methodology is often misunderstood and mismanaged.

Mitigation is therefore a significant factor in the managing the potential ill effects recognized from reporting. Most often variances are a result of insufficient planning, logistics, resource skillsets and training core team personnel and finally not adhering to the baseline schedule all key stakeholders authorized.

The resultant factors of poor planning coupled with insufficient management maturity create a recipe for disaster in the Turnaround environment undermining the effort of the professional people with passion for what they have attempted to accomplish.