Flawless Project Delivery

FLAWLESS PROJECT DELIVERYKen Ede Apr 2016

© 2016 Ken Ede LinkedIn https://au.linkedin.com/in/kenede Web: www.ignite1000.com

https://au.linkedin.com/in/kenede

http://www.ignite1000.com/

FLAWLESS OPPORTUNITYPr

oduc

tion

Time

ExpectationActual

Getting the actual start-up profile to match expectations

FlawlessOpportunity

Pluto

Gorgon

QCLNG

Ichtys

Gladsto

ne

Wheatst

one

0

10

20

30

40

50

60

Publicly Announced Stage

Committed / completed stage

A$bn

+154%

+301%

+121%

+250%

+130%

+39%

Flaw

less

Oppo

rtuni

ty

From IPA, typically:• 1 in 8 offshore projects is a “disaster”• Cost growth/schedule slip > 40% vs sanction• First year operability < 50% vs plan




FLAWS MATTER

Loss of Containment 50%

Human Error 50%

Fittings incorrectly

installed 31%

Procedures not followed 8%

Equipment/ parts defects 21%

Design specifications

15%

Case

stu

dy o

f inc

iden

ts in

com

miss

ioni

ng a

nd H

UC p

hase

ove

r 30

year

s

Incidents


Work direction 11%



“ FLAWLESS IT IS ABOUT YOUAND YOUR UNDERSTANDING OF

RISK “

Do you know when you are making risk

decisions?

Do you know the error rate in not only your

decisions but also the error rate in data that

you use to make decisions?

Are you qualified to make the risk decisions you are

making?

Who is your risk decision looking

after?What is motivating your risk decision making?

Are you engaging those that might be impacted in the risk

decision?

Energy

Risk

Atti

tude

Walking dead

WinnersSpectators

Troublemakers

Risk attitude in the right quadrant?

We allow flaws to occur and then establish processes to find and fix them

We work in an industry that accepts flaws as part of normal business

We often fix the symptom and not the flaw

Flaws are often good for business




In th

is ca

se st

udy

mor

e th

an 2

31 p

rimar

y ca

uses

FLAW

DI

AGNO

SIS


Data

from

cas

e st

udy

of m

ore

than

300

0 le

sson

s le

arne

d

Data

from

cas

e st

udy

of m

ore

than

300

0 le

sson

s le

arne

d



FLAWS BY PHASE“Delusion”

Data from case study of more than 3000 lessons learned

“Commissioning: when the frisky tom cats of

innovative design, value engineering and

supreme optimism meet the sharpened

scalpel of reality”

Select/Develop(BOD)

Detail Design / Procure / Construct

Commissioning /Start-Up

Develop(FEED)

Valu

e of

eac

h FL

AW

Time

45% 10% 40% 5%

FID

It goes wrong from the get go because:• Overarching strategies to support the projects intent are not set up early enough• Commitments are made which lock the work into business as usual delivery• Accountability to get overarching project arrangements right is not clear and inaction leads to business as usual

delivery• Decisions makers make decisions blind to data that was available• Insufficient ‘winners’ underpin the drive for flawless delivery and are overcome by the business as usual approach• Confused message on drivers by leadership undermines a flawless approach

Ignored what the Company knew

were Best Practices

“Appraisal Optimism” leads to unrealistic estimates

All caught up in

Company politics

Insu

fficie

nt fr

ont

end

load

ing

High

ly sc

hedu

le d

riven

Wholly inappropriate contract strategy

Key problem is lack of accountability,

not lack of technical skills or data

Risk management

techniques insufficient




TIME FLAWSManufacturing Delivery

Kick Off Meeting IRC

Transport Pick Up ROS

Planned

Manufacturing

FAT

Delivery

Kick Off Meeting IRC ROS

Transport Pick UpTraining

VendorCompetency

Testing

SurveillanceVisit

SurveillanceVisit

FATTypically what is planned is a plan to fail.

Lessons tell us manufacturing is often delayed and FAT late. Commitments on transport and ROS sees punch list items being exported to

site

Flawless builds in allowances for the known risks. Storage at vendor

built in to allow for vendor delay and to fix punchl ist

Investing in and more interactive with the

supplier to set up final inspections to be fault free

and successful

ROS reflects risks of flaws in the entire life cycle

Flawless Plan

Flawless management of time flaws requires very early consideration to avoid locking the work into a business as usual approach. The trade off on the delay is that the outcome is more predictable and overall result better but requires supportive leadership and courage to implement. Often needs demonstrating through scenario planning.




COMPETENCY FLAWS

Its critical you know what you do NOT knowEl

ectri

cal

Mat

eria

ls

Vessels EEHA

Coat

ings

Structural

MechanicalPiping

Com

mun

icatio

ns

Cont

rols

Logi

cIn

stru

men

tsHumanfactors

Piping

OperationsVa

lves

Fire

Vibration

Stre

ss

Safe

ty

IT

RiggingLifting

The required skill set to execute flawless inspection does not reside in a

single ‘universal solider’




Governing

Measuring Prio

ritizi

ng

Leadership Repo

rting

Stakeholder management

BudgetingAction tracking

Risk management

AuditingStrategy

MANAGEMENT

Flaw

Planning

Trai

ning

Innov

ation

Technical

Mitigation

Discover

y

Challenge

Accountability

Continuity

MultipleordersMultiple locations

Competing

demands

Sometimes 7layers deep

EngagementCompetency

Over long time

Culture

Challenge

business as

usual

Assume the worstIdentify, debate and conscientiously act on warning signals

Wary of previous successes

Look

for t

he

root

caus

e fix

Team of proactive

winners

Do not get

normalised

Avoid denial

Front End

Effor

t

QA/QC Flawless

Flawless and Quality coexist and complement each other. Flawless is a front end loaded activity.

Back End

Flawless is not about detecting flaws, but promoting and ensuring good practices are in place to stop the occurrence of flaws.Integrity




• Tightness• Cleanliness• Integrity• Operability• HSE• Prototypes• Complexity• Testing• Experience• Coinciding Events• Integration• Information

RESPONDScore

against each flaw category

Determine the impact that flaws would have on you* These determined by systematic analysis

of lessons learned within your business

Determine total score

Select flaws treatment

weight based on the score

Select the treatment based on the score at each

step

Score 80 – 120: Heavy Exposure

Score 80 – 120: Medium ExposureScore 0 – 39: Light Exposure

Step 1: Secure management commitment to Flaws management & identify project level

performance objectives

• Significant consideration by senior management• Features in the opportunity statement and specific resource

assigned to maximise opportunities at the earliest opportunity• Selection of treatments available determined and recorded by

the assigned Coordinator• Appoint, or secure support from, a specialist SME

EXAM

PLE

• Extent and style of treatment is determined by the Project Manager• Strategy is clearly stated in the opportunity statement• Future resources allocated to address




Leadership & Management

Flawless Project Delivery