Critical Chain Project Management

Critical Chain Project Management Delivering a high performance result in the engineering design phase of a large capital project, using BIM for the first time

Inner Harbour debottlenecking project

Nelson Point

Finucane Island

FEED front end engineering design

Return on Investment What is the goal of your business? Throughput = sales variable costs Operating Expense = labour + overhead Investment = all money trapped in the system

Throughput per day Assumptions Total throughput per day in Port Hedland after the upgrade is $2m The duration between engineering finished to upgrade completed for each shut is fixed BHP Billiton will only arrange three super shuts for IHD1 in current sequence The investment in construction and procurement of materials and equipment is fixed ΔT Daily Throughput at the Port based on IHD1 assumptions $2,000,000 ΔOE Head Counts for BHP 4 ΔI Head Counts for Ensemble 3 Average working hours for Fluor employees per day 9 Head Counts for Fluor 70 Materials and equipment

Statement of fact to go here Results The results from the use of CCPM in IHD1 FEED Productivity factor for IHD1 was reduced from a typical 1.2 to 0.87 indicating a 27.5% increase in productivity A net benefit to of more than $2m A saving of engineering cost for IHD1 estimated at AUD 3.597 million 100% due date performance for the engineering work on all of the routes of the IHD1 project Working as a team with the EPCM and the owner, we have successfully identified $190 million extra Throughput.

The Theory of Constraints (TOC)

The 5-step FOCUS

Implications of TOC Constraints govern the rate at which value is created Any system has one constraint that has most impact A gain for the constraint is a gain for the system as a whole The constraint must do only that which only the constraint can do Non-constraints have capacity relative to the constraint

CMMI-SVC The Goal Processes continually improved efficient and effective agile organisation Quantitative process control smaller performance variation, reachable goals for quality and performance Shared common processes, comparable data predictable costs, steep increase in productivity Better plans, more reasonable commitments, corrective actions deadlines frequently met quality on the up and up Not much discipline, poorly established commitments success cannot be reproduced Time / $ /

Innovation: three critical dimensions

Managing the Critical Chain The Power of Aggregation Shrink task durations to 50% probability of completion (P50) and aggregate the difference between P90 and P50, for each task, as protection in feeding and project buffers.

Statement of fact to go here The executable workplan - 1 https://tools.maestroux.com/users/sign_in

The executable workplan - 2 https://tools.maestroux.com/users/sign_in

Schedule aggregation Statement of fact to go here

Resource aggregation

The Fever Chart: Telling the Story

The Portfolio Fever Chart: Management by Exception

Maestroux

Maestro and Concerto: Resource Load vs. Capacity Report Clear identification of what specific resource types are the bottleneck, who is assigned to that work type, and when they roll on and roll off

23 The life of the task manager Work can be viewed and updated as task lists, Kanban board or in timeline view, filtered for relevance by user

24 Operating discipline Multi-tasking No updates Measuring critical operating discipline drivers encourages simplified, standard ways of working Schedule assignments

25 Project financials Forecast, schedule and actual costs available at the press of a button

Integrating Procurement Vendor data Strategy Red 15 10 15 10 10 10 10 10 10 15 20 20 20 20 20 10 20 10 10 20 20 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 20 Yellow 15 10 15 10 10 10 10 10 10 15 20 20 20 20 20 10 20 10 10 20 20 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 20 Green 15 10 15 10 10 10 10 10 10 15 20 20 20 20 20 10 20 10 10 20 20 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 20 Received INPUT -> 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 0 0 1 0 0 0 0 0 0 Expected Date 1/08/2014 1/08/2014 1/08/2014 1/08/2014 1/08/2014 1/08/2014 1/08/2014 1/08/2014 1/08/2014 1/08/2014 5/08/2014 5/08/2014 5/08/2014 5/08/2014 5/08/2014 5/08/2014 5/08/2014 5/08/2014 1/08/2014 4/08/2014 pending/in design pending/in design pending approval BHP 4 weeks from OK of Prposal to design 2 options by Manufacturer E2 Recevied Vendor Data Stat Drives Siemens 450 kw (3.3 kv SC Siemens 630 kw (11 kv W Siemens 630 kw (3.3 kv W Siemens 630 kw (6.6 kv W Siemens 800 kw (11 kv W Siemens 800 kw (6.6 kv W Siemens 1000 kw (11 kv W Siemens 1000 kw (6.6 kv W Siemens 1250 kw (6.6 kv W Siemens 1500 kw (6.6 kv S Siemens 1750 kw (11 kv W Siemens 1750 kw (6.6 kv S Siemens 1750 kw (6.6 kv W Siemens 2000 kw (6.6 kv S Pulleys 12-11-TBA 18-11-DA 18-13-D2A 18-13-D3 18-13-D4 18-13-TBA 18-14-TBA 22-8.5-D 12-7.5-ND 18-11-NDA 18-8-ND 18-9-D 18-9-ND LS Brakes LS 2 Caliper Oil Coolers Size 8 Size 9 Size 10 Screens LRP2 Special V/Feeders LRP2 Special Shut Off Gates LRP2 Special Other CPS - 99% Stock 4 new ones CST - lots of changes standard equip FI1: P809 + TS809: Vendor Data: Mech: E2 Vendor Data Receiv 1/10/2014 FI1 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 FI4: P800: Vendor Data: Mech: E2 Vendor Data Received 6/08/2014 FI4 0-1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1-1 1 1 1 FI4: P801 + TS801: Vendor Data: Mech: E2 Vendor Data Receiv 6/08/2014 FI4 0-1 1 1 1 1 1-1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 FI4: P802: Vendor Data: Mech: E2 Vendor Data Received 6/08/2014 FI4 0-1 1 1 1 1 1 1 1 1 1 1 1 1-1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1-1 1 1 1-1 1 1 1 FI6: P982 + TS982: Vendor Data: Mech: E2 Vendor Data Receiv 25/09/2014 FI6 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 FI7: P804 - Drive Station: Vendor Data: Mech: E2 Vendor Data 23/09/2014 FI7 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 FI7: P898: Vendor Data: Mech: E2 Vendor Data Received 8/09/2014 FI7 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 LRP2: P807 + TS807: Vendor Data: Mech: E2 Vendor Data Rece 25/08/2014 LRP2 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 LRP2: P815 (Incl. Shuttle): Vendor Data: Mech: E2 Vendor Data Received 26/08/2014 LRP2 0 0 1 1 1 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 1 1 1 1 0 1 1 1 LRP2: P816 Tail: Vendor Data: Mech: E2 Vendor Data Received 16/09/2014 LRP2 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 LRP2: P816-Head + P817-Head + P808 + TS808 : Vendor Data: Mech: E2 15/08/2014 Vendor Data LRP2 Received 0-1 1 1 1 1 1 1 1 1-1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1-1 1 1 1 1-1 -1 1 1 LRP2: P817 Tail: Vendor Data: Mech: E2 Vendor Data Received 12/09/2014 LRP2 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 LRP2: PLANT: Vendor Data: Mech: E2 Vendor Data Received 6/08/2014 LRP2 0-1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1-1 -1-1 1 1 1 NP1: BWR6: Vendor Data: Mech: E2 Vendor Data Received 6/08/2014 NP1 0-1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1-1 1 1-1 NP1: P510: Vendor Data: Mech: E2 Vendor Data Received 14/08/2014 NP1 0-1 1 1 1 1 1 1 1 1 1 1-1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1-1 1 1-1 1 1 1-1 1-1 1 NP1: P511 + TS504: Vendor Data: Mech: E2 Vendor Data Received 11/08/2014 NP1 0-1 1 1 1 1 1 1-1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1-1 1 1 1 1 1 1 1 1 1 NP1: P512 + TS505: Vendor Data: Mech: E2 Vendor Data Received 6/08/2014 NP1 0-1 1 1 1 1-1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 NP1: P513 + TS513: Vendor Data: Mech: E2 Vendor Data Received 14/08/2014 NP1 0-1 1 1 1 1 1 1 1 1 1 1 1 1 1-1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1-1 1 1 1 1-1 1 1 NP1: P560 + TS560: Vendor Data: Mech: E2 Vendor Data Received 6/08/2014 NP1 0-1 1-1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1-1 1 1 NP1: P561: Vendor Data: Mech: E2 Vendor Data Received 7/08/2014 NP1 0-1 1 1 1 1 1 1 1 1 1 1-1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1-1 1 1 1 1 1 1 1 NP2: P501-Head + P503-Tail + TS501: Vendor Data: Mech: E2 Vendor Data 22/08/2014 ReceivedNP2 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 1 1 1 1 1 1 0 1 0 1 NP2: P502-Head + P505-Tail + TS503: Vendor Data: Mech: E2 Vendor Data 26/08/2014 ReceivedNP2 0 0 1 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 1 1 1 1 1 1 0 0 1 1 NP2: P503-Drive Station: Vendor Data: Mech: E2 Vendor Data Received6/08/2014 NP2 0-1 1 1 1 1-1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1-1 1 1 1 NP2: P505-Drive Station: Vendor Data: Mech: E2 Vendor Data Received8/09/2014 NP2 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 NP2: P515 + TS515: Vendor Data: Mech: E2 Vendor Data Received 22/08/2014 NP2 0 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 0 1 1 NP3: P564 + TS560 + Truss Mods: Vendor Data: Mech: E2 Vendor Data 21/08/2014 Received NP3 0-1 1 1 1 1 1 1 1 1 1 1 1 1-1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0 1 1 1 0 0 1 1 NP3: P565: Vendor Data: Mech: E2 Vendor Data Received 8/09/2014 NP3 0 0 1 1 1 1 1 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 NP4: P351 + TS351: Vendor Data: Mech: E2 Vendor Data Received 25/09/2014 NP4 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 NP4: P355 + TS355: Vendor Data: Mech: E2 Vendor Data Received 18/09/2014 NP4 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 FI1: P865: Sketches: Revise Drawings for Checking - Mechanical 22/10/2014 FI1 0 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 Idlers Belt Weighers FL Smidth Samplers Thiess Krupp BWR6 There is no systematic way to link either vendor data or contracts management activity to their criticality with respect to the CCPM priorities

Integrating technologies

Earned value versus work management

Contracting strategies

The Right Stuff: Excellence as a habit Excellence is an art won by training and habituation. We do not act rightly because we have virtue or excellence, but we rather have those because we have acted rightly. We are what we repeatedly do. Excellence, then, is not an act but a habit. Aristotle

The Flight Plan

Bringing people on the journey Innovations in productivity to inspire your people and uplift performance http://www.ensembleconsultinggroup.com/academy/more-than-just-work