Olympic Delivery Authority*

EVA 16London 2012 Update15 June 2011

Presented by David Birch

* prepared by CLM Delivery Partner Ltd

2

London 2012 UpdateProgramme status in May 2011

Learning LegacyProgramme StrategyFrameworkDelivery PlatformMethodsReportingMaturity Timeline

Benefits and Lessons Learned

Our EV system v ANSI /APM

Q&A and feedback

The Olympic Park nearing completion

Olympic Stadium - Complete 31 March 2011

5

Olympic StadiumOlympic Stadium – complete for LOCOG Overlay

Aquatics - forecast completion 19 July 2011

7

Aquatics Centre in Games configuration with temporary standsPools full and up to temperature

Velodrome - Complete 12 Jan 2011

BMX – forecast completion 1 July 2011

Basketball Complete - 27 May 2011

Basketball

Basketball Interior at completion

11Athletes Village - First Block complete, progressive completion to November 2011

12 May 2010Landscape & Public Realm – completion forecast February 2012

Landscape & Public Realm – Wetland flood defences complete

Handball – Complete 11 May 2011

Handball - Interior

Multi Storey Car Park – Complete 28 January 2011International Broadcast Centre – Complete 15 April 2011Main Press Centre – forecast completion 25 July 2011

Lea Valley White Water Centre – Complete December 2010

Test Events - on the horizon

18

Basketball – 16th to 21st August 2011London Basketball International Invitational

BMX – 19th & 20th August 2011UCI BMX Supercross World Cup

Beach Volleyball - 9th to14th August 2011Visa FIVB Beach Volleyball International

Mountain Bike – 31 July 2011Hadleigh Farm Mountain Bike International

19

Progress in numbers…Over 12,500 workers on the (secure) Olympic Park

Accident Frequency Rate is 0.16

Significant Environmental Incident Rate is 0.03

Programme Budget is £9.3bn

Current ODA Budget is £7.3bn

Games time scope of Olympic Capital Programme is on schedule and 87% complete

Schedule Variance = (£16m), SPI = 0.99

Cost Variance = (£8m), CPI = 1.00

20

Earned Value – Programme StrategySingle data collection structure implemented through project teams and into Tier 1 contractors

Fully integrated budget-loaded programme

Earned Value (£) as the common means of reporting progress over a diverse programme of projects

Various funding sources and strict budgetary and change governance

Use of NEC3 Contracts on Olympic Park & off-park venues

21

Programme Controls - FrameworkStable but flexible delivery-driven WBS created

Original Baseline Budget (OBB) or ‘Yellow Book’ published (November 2007)

Baseline modelled in systems & reconciled to OBBManagement subsystem links established via the WBS and procurement codes

Robust change control process implemented

A ‘control culture’ and trust in reporting accuracy built up

Forecast dataset created in P6

All contracts included Project Controls requirements

22

Delivery Platform - Performance Measurement & Commercial Management

CLM Level 1 Schedule

CLM Level 2 Cost Loaded Schedule

P6ProductionDatabase

Tier 1 Contractor Cost Loaded Schedules

Labour (hours and cost)EquipmentMaterialsSuppliesContracted ServicesTransport and TravelOther

P6External

DatabaseN o . A ct ivit y Jan F eb M arch A p ril M ay T arg et Act ual C hang es

10 1 Project M an £10 £10 £10 £10 £10

10 2 Design £12 £40

10 3 Tenders £30

10 4 Substructure £15 £20 £40

10 5 Superstrucutre £50 £70 £80

10 6 Snagging £10

CLM Commercial ManagementTier 1 Contractors Submission Under NEC Contract

Resources & NEC Activity List

Schedule Performance & Cost Performance

Reports etc.

Detailed EVand %

Complete

Reviewed by CLM - Summary

Submitted

Actual Cost(via CLM

Cert)

COBRA

Earned Value

Actual Cost

ODA Finance (Oracle)

23

Methods

Anticipated Final Cost (AFC)

(AFC = cost to date + estimate for remaining work)

AFC = Actual Costs + (Budget at Completion – Earned Value) CPI

Variances (favourable is positive, unfavourable is negative)

Cost Variance (CV) = Earned Value – Actual Costs

Schedule Variance (SV) = Earned – Planned Costs

Variance at Completion (VAC) = Budget at Completion (BAC) – Anticipated Final Cost (AFC)

Performance Indices (favourable is >1.0, unfavourable is <1.0)

Cost Performance Index (CPI) = Earned Value / Actual Cost

Schedule Performance Index (SPI) = Earned Value / Planned Value (Baseline)

% Scheduled / Complete / Spent

% scheduled = Baseline Value (planned costs) BAC

% complete = Earned Value BAC

% spent = Actual Costs BAC

X 100

X 100

X 100

Varying Techniques were used, ranging from tracking progress against key quantities (number of piles driven, tonnes of steel erected or metres of cable pulled), through assigning value to milestones, down to Level of Effort (LOE) for Services/ demand led activities.

24

ReportingOne week to turn around month-end results

Flash reports to remove data anomalies

Project Cost Performance Reports

Programme Cost Performance Report

Project Status Report

Monthly Programme status report -Dashboards used for communicating key performance trends to senior management

Monthly/Quarterly Project Reviews

Quarterly Funders Report

Mon

th E

nd

Monthly EV Reporting Cycle

2006 2007 2008 2009 2010 2011Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Controls Building Blocks in Place

Baseline developed & Yellow Book Published

Culture & Trust Established

Systems Maturing

Change Control implemented

Monthly & Quarterly Reviews

Trending Process

AFC process

Monthly Trend Reviews

Monthly Trend & AFC Reviews

Simplify Baseline

Schedule Integration maturing

Support & Training

Assurance, Support & Intervention (where necessary)

Align Reporting

Maturity Timeline

Big Build; CompletionBig Build; StructuresBig Build; FoundationsDesign, Dig, Demolish

Governance Framework

Mature Programme Controls Schematic

Tailored reports to support

Governance decision points

Key Meeting

Key Meeting

Functions (Design, Town Planning, SHQE, etc) and Stakeholder

defined priority themes

Contract Admin (inc Procurement)

Change Control

Risks, Issues and Trends

Schedule &Integration

Cost Engineering

Enterprise Accounting C

ontro

lled

Per

form

ance

M

anag

emen

t Bas

elin

e

WBS

WBS

Approved Changes

Contractor Project Team

Contractor Project Team

Contractor Project Team

Com

mon

pro

cess

es &

tool

s de

fined

in

Con

tract

Wor

ks In

form

atio

n

Per

form

ance

D

ata

Contractor Project Team

Performance

Data

Reporting hub for analysis

Data with

Narrative

Dat

a w

ith

Nar

rativ

e

28

BenefitsEV was pivotal in the successful programme controls used for London 2012.

All 32 criteria specified in ANSI / EIA 748 and APM were applied, the most influential being: 1. Define authorised work and resources via WBS3. Ensure management subsystems support each other, the WBS and the OBS8. Maintain Performance Measurement Baseline at Control Account (C/A) level

15. CBB = approved project budgets + contingencies17. Prohibit multiple accounting as direct costs are summarised through the

WBS22. Produce monthly performance measurement data at C/A level27. Develop monthly AFC’s and compare to CBB28. Incorporate all authorised changes in a timely manner

Baseline kept current (via change control) to reflect the developing delivery strategies

Comprehensive Risk process integrated with Controls

29

Lessons LearnedSpend the time and resources to get your Baseline right (and minimise heartache down the road)

Keep Baseline high level and ensure Forecast is dynamic and integratedEveryone must work within the WBS structure

Cost collection system fully keyed-in by coding

Contractors keyed in at lower levels

Provide right level of alignment, training and assurance to include:

Customer’s and stakeholder’s organisations

Early engagement with Contractors teams

Run Services and Operations on Level of Effort (with performance measured against milestones and KPI metrics)

Keep checking fitness-for-purpose

30

London 2012 EV System v ANSI and APM

1. Implemented and used in checks and balances

2. Implemented and influential when required

3. Implemented, enforced and very influential over the programme

Criteria Ranking Criteria Ranking Criteria Ranking1 3 12 2 23 32 2 13 1 24 13 3 14 1 25 24 1 15 3 26 25 1 16 2 27 36 2 17 3 28 37 2 18 1 29 28 3 19 1 30 29 2 20 2 31 310 2 21 2 32 311 2 22 3

31

Final thoughts from London 2012 Team

Be FlexibleAdjust the systems deployed to suit the phase and nature of construction

Keep it SimpleSimplified terms Clear, concise and graphic reportingData analytics but report on the issues

Aim for ‘No Surprises’Comprehensive BaselineSpotting risks and issues early enables early mitigationLeads to effective management of scope, cost & schedule

32

Q&A and feedbackQ & A

33The official Emblem of the London Organising Committee of the Olympic Games and Paralympic Games Ltd is protected by copyright. © London Organising Committee of the Olympic Games and Paralympic Games Ltd 2007. All rights reserved.

Thank youThank you