Scheduling and deployment of an evm system integrated with risk management in a gas distribution project. CoP EOGP of PMI
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This document discusses an presentation about integrating earned value management (EVM) and risk management. It provides an overview of EVM and risk management standards like ANSI 748-B and ISO 31000. It then discusses how EVM and risk management can be integrated, including using EVM to monitor risk mitigation plans. The presentation describes deploying an integrated EVM and risk management system on a gas distribution project, including planning with multiple baselines and joint monitoring of schedule and risk. It also discusses how planning rules had to change to integrate EVM and risk management for a liquefied natural gas carrier repair schedule.
Scheduling and deployment of an evm system integrated with risk management in a gas distribution project. CoP EOGP of PMI
- 1. http://ogp.vc.pmi.org Scheduling and Deployment of an EVM System Integrated with Risk Management in a Gas Distribution Project by José Moro Melón - Industrial Engineer and PMP® Introduction By: Nain Aquado Quintero, P.E., PMP Community Member, EOGP March 18, 2013
- 2. Welcome Everyone! • PMI Energy, Oil, Gas and Petrochemical CoP Event: Virtual Community Global Webinar; • Hello to Worldwide Webinar Recipients; • Brief Overview of EOGP CoP; • Introduction of Guest Speaker: José Moro Melón (Industrial Engineer and PMP®) Founder of GEDPRO --project management experts -- a global company consulting of Project Management providing consultancy services, technology, training and outsourcing -- 2
- 3. What is a Virtual Community at PMI? Within PMI, a VC is also known as a Community of Practice: An interactive place for you to meet online, discuss ideas and build the profession’s body of knowledge through blogs, wikis, and discussion groups . 3
- 4. Sample Discussion Threads We want your input on these and other topics: • 1. UPSTREAM OIL & GAS – OFFSHORE & ONSHORE • 2. MIDSTREAM OIL & GAS – OFFSHORE & ONSHORE • 3. DOWNSTREAM OIL & GAS • 4. CHEMICALS • 5. UNCONVENTIONAL ENERGY • 6. RESEARCH & DEVELOPMENT in EOGP SECTORS More Details at PMI EOGP CoP homepage: http://ogp.vc.pmi.org 4
- 5. Your EOGP CoP Council Service Delivery Lead Knowledge Management Lead: (Open) Ben Voivedich, PMP Gary Kennedy, P. Eng., PMP Asia Pacific Region EMEA Region Vincent Perrin, PMP (Open) USA Region Marketing Coordinator A.J. Collier, B.Arch.(Eng) Community Involvement Lead: Community Manager Bob Templeton, P.E., MBA, ECCE, Charles Waligura, P.E., (Open) PMP PMP South America Region 5
- 6. Visit Our Website http://ogp.vc.pmi.org Access to Practitioners with shared PM interest in: Energy; Oil; Gas; Petrochemical; and related Process Industries. 6
- 7. Today’s PMI EOGP CoP Presentation Scheduling and Deployment of an EVM System Integrated with Risk Management in a Gas Distribution Project José Moro Melón (Industrial Engineer and PMP®) José has experience in several projects of different areas (ICT, Aeronautical, Information Society and Industrial) in large companies like Accenture, Ineco, etc leading projects around Europe. Since 2002 is member of PMI and during 2008 belongs to the PMI Madrid Chapter Board of Directors. He founded GEDPRO --project management experts -- a global company consulting of Project Management providing consultancy services, technology, training and outsourcing. Jose helps a lot of organizations to get results implementing project management methodologies and EPM and PPM solutions. 7
- 8. Today’s PMI EOGP CoP Presentation Scheduling and Deployment of an EVM System Integrated with Risk Management in a Gas Distribution Project • Introduction to integrated project management systems • EVM and ANSI 748-B • Risk Management • EVM and Risk Management integration • Deployment of an EVM and Risk Management system in a gas distribution project. • Analysis of the schedule of the repair of LNG carrier 8
- 9. Today’s PMI EOGP CoP Presentation Introduction to integrated project management systems • How many management systems coexist in a company? 9
- 10. Today’s PMI EOGP CoP Presentation Introduction to integrated project management systems • The Enterprise Management System have to cover: • Scope • Time • Cost • Quality • Human Resources • Communications • Risks • Procurement • Safety • Environmental • …. 10
- 11. Today’s PMI EOGP CoP Presentation Introduction to integrated project management systems s on ati er Op 11 11
- 12. Today’s PMI EOGP CoP Presentation Introduction to integrated project management systems • How is implemented the Integrated Project Management System? • Tools: • ERP • CRM • EPM or PPM 12
- 13. Today’s PMI EOGP CoP Presentation EVM and ANSI 748-B s ion at er Op 13
- 14. Today’s PMI EOGP CoP Presentation EVM and ANSI 748-B • The EVM involves : • Planned Value (BCWS) • Actual Cost (ACWP) • Earned Value (BCWP) 14
- 15. Today’s PMI EOGP CoP Presentation EVM and ANSI 748-B • What have we achieved (Earned Value) with the money we've spent (ACTUAL COSTS) compared to what we had planned (PLANNED VALUE) 15
- 16. Today’s PMI EOGP CoP Presentation EVM and ANSI 748-B • ANSI 748-B • 32 guidelines • 10 processes 16
- 17. Today’s PMI EOGP CoP Presentation EVM and ANSI 748-B • ANSI 748-B • 32 guidelines • Organization (5 guidelines): • Planning, Scheduling and Budgeting (10 guidelines) • Accounting Considerations (6 guidelines) • Analysis and Management Reports(6 guidelines) • Revisions and Data Maintenance(5 guidelines) 17
- 18. Today’s PMI EOGP CoP Presentation EVM and ANSI 748-B • ANSI 748-B • 32 guidelines 18
- 19. Today’s PMI EOGP CoP Presentation EVM and ANSI 748-B • ANSI 748-B • 10 processes: • SOW • WBS • Program Organization • Program Schedule • Budget Allocation and Resource Planning • Accounting Considerations • Earned Value Methodology • Performance Measurement • Estimates at Completion • Revisions and Data Maintenance 19
- 20. Today’s PMI EOGP CoP Presentation Risk Management • Risks • Threats • Opportunity 20
- 21. Today’s PMI EOGP CoP Presentation Risk Management • ISO 31000 • Principles • Framework • Process Principles Framework Process 21
- 22. Today’s PMI EOGP CoP Presentation Risk Management • ISO 31000 22
- 23. Today’s PMI EOGP CoP Presentation Risk Management • ISO 31000 and PMBOK 23
- 24. Today’s PMI EOGP CoP Presentation EVM and Risk Management integration • Management of EVM and Risks s ion at er Op 24
- 25. Today’s PMI EOGP CoP Presentation EVM and Risk Management integration Earned Value Use EV to Integration Use Risks to Incorporate Monitor establish Risk Mitigation Performance of suitable MR to Risk Mitigation Incorporate Plans into ensure MR Plans Risk impacts Project suffcient to into EAC Schedules & Id Newly handle high Budgets Developing probability risk Risks Risk Management 25
- 26. Today’s PMI EOGP CoP Presentation EVM and Risk Management integration • Reserves Contingency 26
- 27. Today’s PMI EOGP CoP Presentation EVM and Risk Management integration • Multiple Baselines 27
- 28. Today’s PMI EOGP CoP Presentation EVM and Risk Management integration • Relationship between CPI, SPI and Risk Management SPI 2 Review Baseline Investing in seeking Exploit the options to minimize costs opportunity 1 2 0 CPI Invest in planning and risk management. Use Reduce threats contingencies to save time 0 28
- 29. Today’s PMI EOGP CoP Presentation EVM and Risk Management integration • Relationship between EVM indexes and Risk Management process effectiveness Risk process effectiveness Alto Problems with baseline (CPI or SPI Very high) Risks well controlled 0 0,5 1 1,5 2 CPI ó SPI Risks uncontrolled Problems with baseline or scope (CPI or SPI Very Low) Bajo 29
- 30. Today’s PMI EOGP CoP Presentation Deployment of an EVM and Risk Management system in a gas distribution project • Project: "Analysis and optimization of the gas distribution system" • Initial study of the gas distribution system (routes, fleet tankers, etc…) • Study of current system costs gas distribution • Define of actions to optimize the gas distribution system • Route optimization • Fleet Strategy • Fleet Modernization • Project Duration: 8 months 30
- 31. Today’s PMI EOGP CoP Presentation Deployment of an EVM and Risk Management system in a gas distribution project • Project: "Analysis and optimization of the gas distribution system" • Departments involved: • Financial • Operations • Quality • Engineering • Projects • Distribution • General management 31
- 32. Today’s PMI EOGP CoP Presentation Deployment of an EVM and Risk Management system in a gas distribution project • Project: "Analysis and optimization of the gas distribution system" • Project goal: • Optimize the distribution • Operating cost savings • Define roadmap for actions (projects) • Restrictions: • Urgent project 32
- 33. Today’s PMI EOGP CoP Presentation Deployment of an EVM and Risk Management system in a gas distribution project • Project: "Analysis and optimization of the gas distribution system" • Risks: • Project with many risks as it involves different departments in different locations • Keys in the project: • Good planning and coordination • Good risk management 33
- 34. Today’s PMI EOGP CoP Presentation Deployment of an EVM and Risk Management system in a gas distribution project • Project: "Analysis and optimization of the gas distribution system" • Project Management: • Integration of Earned Value and Risk Management How was it done? 34
- 35. Today’s PMI EOGP CoP Presentation Deployment of an EVM and Risk Management system in a gas distribution project • Project: "Analysis and optimization of the gas distribution system" • How was it done? • Planning • Dynamic schedule • Good planning practices • Risk identificaction • Budget allocated over time 35
- 36. Today’s PMI EOGP CoP Presentation Deployment of an EVM and Risk Management system in a gas distribution project • Project: "Analysis and optimization of the gas distribution system" • How was it done? • Planning 36
- 37. Today’s PMI EOGP CoP Presentation Deployment of an EVM and Risk Management system in a gas distribution project • Proyecto “Análisis y optimización del sistema de distribución de gas” • How was it done? • Planning In Ms Project we created 3 baselines • Regardless risks • Incorporating risk response • Incorporating response and contingency plans 37
- 38. Today’s PMI EOGP CoP Presentation Deployment of an EVM and Risk Management system in a gas distribution project • Project: "Analysis and optimization of the gas distribution system" • How was it done? • Planning – Integration of risk, costs and deadlines We used Risky Project 38
- 39. Today’s PMI EOGP CoP Presentation Deployment of an EVM and Risk Management system in a gas distribution project • Project: "Analysis and optimization of the gas distribution system" • How was it done? • Planning – Integration of risk, costs and deadlines. Montecarlo Analysis We used Risky Project 39
- 40. Today’s PMI EOGP CoP Presentation Deployment of an EVM and Risk Management system in a gas distribution project • Project: "Analysis and optimization of the gas distribution system" • How was it done? • Monitoring and Controlling – Joint analysis of CPI, SPI and Risks • The tracking of most activities was with EVT 0-100. It was possible because activities were decomposed in less than 80 hours • The monitoring was with Ms Project Server 2010. We used tracking of real work and Physical % Complete 40
- 41. Today’s PMI EOGP CoP Presentation Deployment of an EVM and Risk Management system in a gas distribution project • Project: "Analysis and optimization of the gas distribution system" • How was it done? • Monitoring and Controlling – Joint analysis of CPI, SPI and Risks • In follow-up meetings was reviewed project status and risks. Fortnightly meetings. With the three baselines CPI and SPI indicators were a range, not a single value • Monte Carlo analysis was performed monthly 41
- 42. Today’s PMI EOGP CoP Presentation Deployment of an EVM and Risk Management system in a gas distribution project • Project: "Analysis and optimization of the gas distribution system" • How was it done? • Conclusions • Earned Value Indicators helped identify the effectiveness of risk management • EAC were more realistic than other projects that do not integrate Earned Value and Risk • We had to change the way of planning (create schedules) 42
- 43. Today’s PMI EOGP CoP Presentation Analysis of the schedule of the repair of LNGC • Planning • To integrate EVM and Risk had to change planning rules • Schedules contractors were not dynamic 43
- 44. Today’s PMI EOGP CoP Presentation Analysis of the schedule of the repair of LNCG • Planning • To integrate EVM and Risk had to change planning rules • Schedules were adapted • Planning rules: • In the WBS we created a specific control account for materials • LoE activities were limited • We planned in terms of 30/60/90 days 44
- 45. Today’s PMI EOGP CoP Presentation Analysis of the schedule of the repair of LNCG • Planning • To integrate EVM and Risk had to change planning rules • Schedules were adapted • Planning rules : • The activities should remain mostly the EVT 0-100 for monitoring. At least in the planning within the next 30 days • The schedule in each month must have at least one start milestone and one end milestone for each work package 45
- 46. Today’s PMI EOGP CoP Presentation Analysis of the schedule of the repair of LNCG • Planning • To integrate EVM and Risk had to change planning rules • Schedules were adapted • Planning rules : • All activities should have at least one predecessor and successor • Most relationships should be Finish – Start • We limited lags to less of 5 days 46
- 47. Today’s PMI EOGP CoP Presentation Analysis of the schedule of the repair of LNCG • Planning • To integrate EVM and Risk had to change planning rules • Schedules were adapted • Planning rules : • We limited floats to less of 44 labour days • We limited the restrictions of activities • We incorporated risks to schedule 47
- 48. Today’s PMI EOGP CoP Presentation Analysis of the schedule of the repair of LNCG • Planning • To integrate EVM and Risk had to change planning rules • Schedules were adapted • Planning rules : • In monitoring the EVT used was 0-100 • In Ms Project we used the physical % complete method to track the EV 48
- 49. Today’s PMI EOGP CoP Presentation Analysis of the schedule of the repair of LNCG • Planning • To integrate EVM and Risk we had to change planning rules 49
- 50. Today’s PMI EOGP CoP Presentation Analysis of the schedule of the repair of LNCG • Monitoring and controlling 50
- 51. Today’s PMI EOGP CoP Presentation Scheduling and Deployment of an EVM System Integrated with Risk Management in a Gas Distribution Project JOSE MORO MELON, PMP® Jose.moro@gedpro.com http://linkedin.com/in/josemoro http://twitter.com/gedpro 51
- 52. Scheduling and Deployment of an EVM System Integrated with Risk Management in a Gas Distribution Project Presentation By: José Moro Melón - Industrial Engineer and PMP® Founder GEDPRO -- Project Management Experts --