Pre-Project Planning

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Pre-Project Planning

• Lessons from the
• Construction Industry Institute
• Michael Davis, P. Eng, PMP
• Ontario Power Generation

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Objectives

• Demonstrate the importance of pre-project
  planning
• Describe a pre-project planning process
• Review some CII planning tools

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Construction Industry Institute

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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

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What is a Best Practice?

• A process or method that, when executed
  effectively, leads to superior project performance

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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

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Value of Best PracticesProject Cost Performance
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Value of best practicesProject Schedule
Performance
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Best Best Practices

• Pre-project planning
• Change control
• Planning for startup

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Impact of Best Practices
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Pre-Project Planning

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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

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Opportunity for Influence
Low Influence
Major Influence
Rapidly Decreasing Influence
Level of Influence
Project Expenditures
Scope Definition
Conceptual Analysis and RD
Pre-Project Planning
Basic Data and Scoping
Project Authorization
Production Engineering and Procurement
Construction
Engineering Complete
Turnover and Start-up
Project Life Cycle
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Pre-Project Planning

• Provides a basis for
• Informed business decisions doing the right
  project
• Efficient project delivery doing the project
  right

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CII Pre-Project Planning Process
Analyze
Project
Risks
Analyze
Technology
Document
Project Scope
and Design
Evaluate
Site(s)
Define Project
Select
Execution
Team
Approach
Prepare
Conceptual
Draft
Establish
Scopes and
Charter
Project Control
Estimates
Guidelines
Prepare
Evaluate
Make
Pre-Project
Compile
Project
Alternatives
Definition
Planning
Decision
Package
Plan
ORGANIZE
DECIDE
DEVELOP A
SELECT
PROJECT
WHETHER TO
FOR
PROJECT
DEFINITION
PRE-PROJECT
PROCEED
ALTERNATIVE(S)
PACKAGE
WITH PROJECT
PLANNING
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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

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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

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Project Objectives

• Establish project success criteria - define the
  target
• Sets priorities consistent with business drivers
• Basis for decision making
• Refined as project progresses

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Scope Definition - Estimating Accuracy
Pre-Fund Authorization
Post Fund Authorization
Conceive
Develop
Execute
100
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5
Expected Percent Variance Excluding
Contingency
Most Probable Cost
-2.5
-10
-50
Order of Magnitude
Definitive (Detailed)
Release

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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

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Sponsors 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

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Planning Outcomes

• Understanding of objectives priorities
• Optimum solution identified
• Project scope defined - whats in/out
• Alignment of participants and stakeholders
• Knowledge of risks
• Credible estimate and schedule
• Sound business case
• Effective, achievable project plan

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Pre-Project Planning Tools

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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

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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 lt200 correlates with more successful
  projects

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PDRI Score sheet
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Project Alignment

• Common, clearly understood set of project
  objectives is in place
• All project team members working toward the same
  set of objectives

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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

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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

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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

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Alignment Thermometer
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Questionnaire
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Alignment Thermometer
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Other CII Resources

• Team Building
• Partnering
• Change Management
• Project Delivery and Contracting Strategies
• Zero Accident Techniques

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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

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