Title Version 1 Arial Bold 40 pt. - doag.org (BSC... · such as KKS or IEC ensure reuse of ... Example: Scope – Cost relationship 1 Project management services ... P&ID final 28.02.17

2016 Engin. Office J. Gnädinger - All rights reserved

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COCO Scope & Cost Management System the proven way to improve your returns

Scope Mgmt 1 (March 2016): Methodology to apply EVM

Scope Mgmt 2 (February 2017): Why and how it works

Early Warning System in the age of digital transformation

Key performance indicators to take corrective actions in advance

10. Oracle Primavera Community Day 15. February 2017 Munich

Presentation: Hännes Gnädinger


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Scope Mgmt 1 (March 2016): Methodology to apply EVM

Primavera P6

Make use of the potential of Scope & Cost Management with P6

Forecast

Scope & Cost Management

The PwC survey

In companies where EVM tools are used, projects meet their scope criteria

82% of the time, quality criteria 84% of the time and benefits targets 80% of

the time.


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COCO - Elevator Speech

The COCO Scope & Cost Management System supports the project

team in order to make the right decisions in time and thereby keep

or even improve the project returns.

The intelligent scope management determines the scope in the

acquisition phase and links it to responsibility, costs, scheduling and

documents. It reduces the complexity through the interface-optimized

cutting of a complex plant into manageable areas and by generating the

purchasing packages for planning and control.

The paradigm shift “plan in tendering to proactively control in

execution" significantly improves the cost and time performance

measurement. The causes of deviations from the baseline are recognized

at an early stage, the time and costs effects are transparent and the

project team is in a position to initiate course corrections in time.


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Different data structures

Different tools

Challenge: Eliminate the breaks

Today Execution Offering Project-Acquisition Negotiation

Tools Tools Tools

Bid decision

Contract

Start

Handover

Acceptance

Acquisition Team Tendering Team Execution Team

Bid out

Go / No Go

How do we eliminate breaks?

Industry 4.0

Collaboration Platform

Common Tools

Execution Offering Negotiation Project-Acquisition Operation

COCO Scope & Cost

Management

Optimized Project Controls


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COCO Methodology: Ensure the flow of information

Knowledge

library

Standardized

proven

solutions

Digital Plant

Collaboration

Platform

Project Controls

Scope & Cost

Structures to

consolidate cost,

plan baselines,

control progress

and manage

changes

The early warning

system

Cost & Time

Performance

Indicators

Visualized performance,

trend and forecast Engineering Portal

Execution Acquisition

Common Tools

Project controls is based on the collaboration platform, which includes the data structures

and the design rules, supported by common tools in the age of digital transformation.


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Project Completeness & Progress

The international coding standards

such as KKS or IEC ensure reuse of

proven solutions and worldwide

interdisciplinary collaboration.

Structuring: Achieve your goals

COCO provides the project structures

to optimize the Division of Work, plan

baseline, control progress, and manage

changes.

Project Performance

Object Goal Time & Cost Goals

Procurement plan (home / local)

Area Fuel

Equipment

Pump Units

Cost Drivers

Scope Items

Area Water

Parts

Work Package

Doc Set

€

Project Controls Collaboration Platform


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Collaboration platform: Rubber bands

Work Package

Purchase Order

12xRing Type CT

3xOutdoor CT

Key Doc target dates

Import baseline

planning

Cost baseline – Follow up Scope – DOW – Time baseline

Document planning & control

Completeness tracking Progress tracking

Bill of quantity

Engineering

Area

Area


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Collaboration: Anybody has access with his view

View: Division of Work

Engineering responsibility

Scope Items

Area responsibility

Scope Items

View: Construction

Areas

Scope Items

Documents

Objects / Parts

Views: Engineering

Function / Product / Location

Scope Items

Cost Drivers

Documents & Target dates

Objects / Parts

Engineer Standards e.g. • KKS Reference designation

• IEC 61355 Document designation

View: Calculation / Procurement

Procurement Plans (home – local)

Work Packages (PSP Elements)

PO-Positions (execution)

Scope Items

Documents & Target dates

Objects / Parts

Knowledge library

Reuse of proven solutions

80%

60%

20%

Reusing factor

Core area


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Project Controls: PC is always based on CP

Execution Acquisition Operation

Development

Proven solutions

Deconstruction

PC PC PC Project Controls

Project

Collaboration Platform

Projects Project

Reuse PC CP Lessons

learned

Customer A

Modularization / Standardization

Project cost & time KPIs,

trend and forecast Engineering

Portal

KPIs (CPI / SPI): Key Performance Indicators (Cost / Schedule); CP: Collaboration Platform; PC: Project Controls


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Efficiency: Plan in tendering to control in execution

PAC: Preliminary Acceptance Certificate; CPI: Cost Performance Indicator: SPI: Schedule Performance Indicator

Scope

Quality

Time Cost

CPI SPI

Progress

Time Cost

Forecast

Work Package Configure to

calculate for ordering

Scope Item

Seamless handover

Doc Package

Customer

request

800 Scope Items ~100 Work Packages

Design concepts

Configure scope

Allocate responsibility

Control the project

Plan & manage changes

Evaluate performance

Calculate quantity & cost

Plan cost, time, documents

Execution Tendering Project-Acquisition

Bid decision Cost / Risk release Contract PAC Periodic reviews Go / No Go

Operation


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Example: Scope – Cost relationship

1 Project management services

2 Engineering services

2.1 Studies & Concepts

2.1.1 Overall Concepts

Fire protection concept A1

2.2 Systems & Layout

2.2.1 Mechanical Systems

Fuel Supply A1

2.3 Equipment Engineering

2.3.1 Mechanical Equipment

Tanks, Pumps, … A1

3 Plant automation

4 Commissioning/Testing/Training

Areas fuel supply

Tank farm

Equipment A2

Bulk Material A2

Civil Works A3

Erection A4

Areas water supply

Fire water supply

…….

Scope configuration

Procurement Plan A1: Services

Mech. engin.: h 10’000 € 300’000

Fire prot. … h 200

Fuel supply h 3000

Tank engin. h 1000

Pump engin. h 2000

…. engin. h …

E&I engin.: h 7’000 € 210’000

…. engin. h ….

Procurement Plan A2: Supplies

Procurement Plan A3: Civil Works

Procurement Plan A4: Erection

Work package consolidation

Scope-Items

Procurement

Plan


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Reporting: Consolidate performance bottom-up

Project

Work Packages

Scope Items

Parts

Current performance, trend, forecast

Budget, Cost & Schedule KPIs

% complete scheduled vs. performed

Completeness of supplies

Procurement Plans

(home / local)

Progress of services

Number (recommended)

1

<10

~ 100

~ 800

Current performance, trend, forecast

Planned Key Doc’s

supplies services

Project Scope

Cost & Schedule Performance

Cost

Scope


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Portal: Navigate down to the causes of deviations I/II

Navigation Multi Projects

Procurement Plan: Region Work Packages

Project: C

Causes of deviations


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Performance Reporting DB

%

scheduled

%

performed

SPI

%

performed

CPI

Actual

committed

Cost SPI CPI

Estimate

to complete

Cost

+ Savings

-Overrun

Project 112 250 000 € 66% 59% 62% 62 000 000 € 0.89 1.13 42 250 000 € 8 000 000 €

510 000 € 66% 57% 65% 290 000 € 0.88 1.15 176 100 € 43 900 €

Engineering ME 300 000 € 100% 64% 55% 63% 160 000 € 0.86 1.18 111 000 € 29 000 €

System 90 000 € 30% 26% 22% 22%

Tank 30 000 € 10% 6% 6% 8%

Pump 60 000 € 20% 12% 12% 18%

…. 120 000 € 40% 20% 15% 15%

Engineering EL 210 000 € 100% 68% 61% 69% 130 000 € 0.90 1.11 65 100 € 14 900 €

Weight

Review 4Budget

at

completion

Services Region

Portal: Navigate down to the causes of deviations II/II

Work Package Mech. Engineering

Work Packages Supplies Work Packages Services


%

scheduled

%

performed

SPI

%

performed

CPI

Actual

committed

Cost SPI CPI

Estimate

to complete

Cost

+ Savings

-Overrun

Project 112 250 000 € 66% 59% 62% 62 000 000 € 0.89 1.13 42 250 000 € 8 000 000 €

Supplies Region 12 200 000 € 59% 50% 54% 6 900 000 € 0.85 0.95 5 612 000 € -312 000 €

BB.1 Tanks 1 300 000 € 100% 92% 61% 69% 980 000 € 0.66 0.92 403 000 € -83 000 €

EG-BB Tanks 1 200 000 € 92% 92% 61% 61%

Volume

SG-BB Tank 100 000 € 8% 0% 8%

Volume

………. … …… …… …….. …… …… …. …. …… ……

Budget at

completion

Weight

Review 4

Weight Scheduled

Performed

SPI

Performed

CPI

PO Date

Scheduled PO PO-Pos. PO Date

BB.1 Tanks 100% 92% 61% 69%

EG-BB Tanks 92% 92% 61% 61%

EG10BB001 Tank 18.10.2016 2016-101 -10 18.10.2016

EG10BB002 Tank 18.10.2016 2016-101 -10 18.10.2016

EG10BB003 Tank 18.10.2016

SG-BB Tank 8% 0% 8%

SGA10BB001 Tank 12.03.2017 2016-101 -20 18.10.2016

% Complete Expediting Data Base

Review 4

Work Package Tanks

Target Received

Date Date Weight Scheduled

Performed

SPI

Performed

CPI

Engineering ME 100% 64% 55% 63%

System 30% 26% 22% 22%

P&ID 1st issue 02.08.16 05.08.16

P&ID 2nd issue 02.11.16

P&ID final 28.02.17

Tank 10% 6% 6% 8%

Enquiry- Spec. 12.09.16 08.09.16

Purchase Order Lot 1 18.10.16 17.10.16

Purchase Order Lot 2 12.03.17 17.10.16

Packing List Lot 1 09.02.17

Packing List Lot 2 06.04.17

Pump 20% 12% 12% 18%

…. 40% 20% 15% 15%

Planning & ControlReview 4

% Complete


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Unit Value

Unit

Cost Rate

%

scheduled

Planned

Value

%

performed

SPI

%

performed

CPI

Earned

Value

SPI

Earned

Value

CPI

Actual

committed

Cost SPI CPI

Estimate

to complete

Cost

+ Savings

-Overrun

Project 112 250 000 € 66% 74 000 000 € 59% 62% 66 000 000 € 70 000 000 € 62 000 000 € 0.89 1.13 42 250 000 € 8 000 000 €

510 000 € 66% 334 800 € 57% 65% 293 100 € 333 900 € 290 000 € 0.88 1.15 176 100 € 43 900 €

Engineering ME h 10 000 30 € 1.00 300 000 € 100% 64% 192 000 € 55% 63% 165 000 € 189 000 € 160 000 € 0.86 1.18 111 000 € 29 000 €

System h 3 000 30 € 1.00 90 000 € 30% 26% 22% 22%

Tank h 1 000 30 € 1.00 30 000 € 10% 6% 6% 8%

Pump h 2 000 30 € 1.00 60 000 € 20% 12% 12% 18%

…. h 4 000 30 € 1.00 120 000 € 40% 20% 15% 15%

Engineering EL h 7 000 30 € 1.00 210 000 € 100% 68% 142 800 € 61% 69% 128 100 € 144 900 € 130 000 € 0.90 1.11 65 100 € 14 900 €

System h 2 000 30 € 1.00 60 000 € 29% 22% 22% 22%

Transformer h 1 000 30 € 1.00 30 000 € 14% 8% 8% 8%

Switchgear h 1 500 30 € 1.00 45 000 € 21% 12% 12% 16%

…. h 2 500 30 € 1.00 75 000 € 36% 26% 20% 20%

Weight

Review 4Review 4Budget

at

completion

Services Region

Example: WP’s Engineering / Construction Services

Work Packages

•ERP (home)

Scope Items % complete

•Primavera P6

Quantity monitoring construction services

•Progress reports

Work Packages

•ERP’s (home/local)


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Unit Value

Unit

Cost Rate

%

scheduled

Planned

Value

%

performed

SPI

%

performed

CPI

Earned

Value

SPI

Earned

Value

CPI

Actual

committed

Cost SPI CPI

Estimate

to complete

Cost

+ Savings

-Overrun

Project 112 250 000 € 66% 74 000 000 € 59% 62% 66 000 000 € 70 000 000 € 62 000 000 € 0.89 1.13 42 250 000 € 8 000 000 €

Supplies Region 12 200 000 € 59% 7 200 000 € 50% 54% 6 100 000 € 6 588 000 € 6 900 000 € 0.85 0.95 5 612 000 € -312 000 €

AA.1 Valves Set 2 25 000 € 1.00 50 000 € 100% 100% 50 000 € 100% 100% 50 000 € 50 000 € 45 000 € 1.00 1.11 0 € 5 000 €

EG-AA Valves Set 1 30 000 € 1.00 30 000 € 60% 60% 60% 60%

SG-AA Valves Set 1 20 000 € 1.00 20 000 € 40% 40% 40% 40%

BB.1 Tanks Pcs 4 325 000 € 1.00 1 300 000 € 100% 92% 1 196 000 € 61% 69% 793 000 € 897 000 € 980 000 € 0.66 0.92 403 000 € -83 000 €

EG-BB Tanks Pcs 3 400 000 € 1.00 1 200 000 € 92% 92% 61% 61%

Volume m3 800

SG-BB Tank Pcs 1 100 000 € 1.00 100 000 € 8% 0% 8%

Volume m3 100

………. Pcs .. … .. … …… …… …….. …….. …… …….. …….. …… …. …. …… ……

….. ….. … …. … … …. …. …. …. …. …. ….

Budget at

completion

Weight

Review 4Review 4

Example: Work Packages Supplies

Scope Items % complete

•Procurement DB

Work Packages

•ERP (home)

Work Packages

•ERP’s (home/local)


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Why COCO gets the buy-in from the stakeholders

Project Management is able to navigate "top-down" to the causes of deviations.

Scheduling is able to plan the baseline and to control changes proactively.

Controlling is able to manage the work packages (PSP elements) in relation to

the physical progress and changes.

Document & Quality Management is able to track progress and ensure data

consistency.

Engineering Management is able to collaborate globally and interdisciplinary

and to consolidate physical progress across the work packages.

Procurement Management is able to optimize sourcing and to track

completeness.

Construction Management will get material and documents in time to the

scheduled site areas.

COCO improves returns sustainably in the age of digital transformation.


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Ingenieurbüro Johannes Gnädinger

Lindenhof 22 CH-5430 Wettingen

[email protected]

Mobile CH: +41 (0)79 252 23 48

Mobile DE: +49 (0)151 40 258 786

Büro- und Managementservice Brigitte Jahn [email protected]

Mobile +49 (0)173 5115427

KPC -Consultants AG Dirk Hanewacker

dirk.hanewacker@kpc-

consultants.com

Mobile + 49 (0) 151 40258781

Partner

mailto:[email protected]







