HE Primavera P6 Training for EPC Projects

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Reporting Cycle

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Work Breakdown Structure
(WBS)

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Work Breakdown Structure (WBS)

Projects require to define the SOW in a simple matter.
Project

Initiating Planning Controlling Executing Closing
and

monitoring

A WBS has two well defined sections:
The highest levels are known as the Project Summary.
This level defines how the roll up information will flow for controlling purposes.

The lower levels are known as standards and define the project in
Cost accounts,
Work packages,

Organisational levels,
Budget estimation, etc.

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Work Breakdown Structure (WBS)

A WBS has a configuration of an inverse tree or an inverse waterfall

A Program represents a group of Projects which are collectively
managed in order to obtain synergistic benefits.

An Activity represents a group
of Tasks which result in a
deliverable.

The number of levels of a WBS is governed by the size, magnitude and complexity
of the project

HEMP ENGINEERING Pty Ltd • Get to know the SOW
• Identify the basic breakdown and disciplines involved
EPCM Project Management using Primavera • Level of organisation required
Your Planning & Project Controls Solution • Specific responsibilities assignments
• Management coordination
Work Breakdown Structure (WBS) • Milestones
• Work packages breakdown
Project • Phases of the project and subproject
• Subcontracting strategy

Design Procurement Construction
ment

Civil Civil Civil

Mechanical Mechanical Mechanical

Piping Piping Piping

E&I E&I E&I

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Work Breakdown Structure (WBS)

All items are measurable activities

A WBS can have as many levels and perspectives required
The lowest level of a WBS for controlling purposes are related to
Labor (direct and indirect)
Equipment
Materials
Administration

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Work Breakdown Structure (WBS)

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Work Breakdown Structure (WBS)

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Roles and Responsibilities

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Roles and Responsibilities

• Assigning Roles and responsibilities in a project is a key
element of success

• It defines specifically the expected work to be performed, the
limits of authority and the involvement

• The method to assign roles and responsibilities is the
integration of the WBS and the Organisation Breakdown
Structure (OBS) to form a Responsibility Matrix

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Types of Execution

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Types of Execution

Type Mode Characteristics
Traditional
• Longest Execution duration
Overlap
Fast Track Procurement is partially bought and • Mínimum Design-Construction
interference risk
Construction is executed once engineering
Low laven coordination between
is 100% • Design and Construction

Procurement is partially bought and • Lesser execution duration with respect
Construction starts as the design is to the traditional type

completed • Higher risks

• Moderate execution control

• Higher level of coordination during
execution

• Fastest execution duration
Higher execution risks
Design, Procurement and Construction are • Requires a higher EPC coordination
delivered as the disciplines are completed • Higher Change Management risks

•

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Payment Schemes

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Payment Schemes

Considerations:
• Non Scheme is superior in any cases
• The implementation of the scheme depends on the owner objectives, SOW, tender

informaron and marketing conditions
• Mixed payments schemes are quite common
• Incentives and escalation formulas can be included in the payment schemes
• When selecting a payment scheme, this must be done at the tender and the

measurement methodology must be clearly defined.
• The service cost are generally more difficult to determine than the corresponding

goods

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Payment Schemes

The owner not always has the freedom to choose the scheme of payment.

There are external factors that affects the selection, such as:
SOW definition and the quality of the information during the tender process
Economic conditions
Magnitude and duration of the work
Subcontractors, fabricators and suppliers availability
Unique conditions of the work

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Payment Schemes

TYPES OF CONTRACTS TYPES OF CONTRACTS

▪ Design and Engineering ▪ Lump Sum
▪ Procurement ▪ Reimbursable costs
▪ Fabrication ▪ Turn Key
▪ Construction ▪ Unit Prices
▪ Technical Assistance ▪ Cost Plus
▪ Project Management ▪ Time and cost plus overhead
▪ Construction Management ▪ Mixed of the above
▪ Mixed of the above

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Execution Strategy

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Execution Strategy
There are three basic elements that defines an execution strategy:

• Organisational scheme
• Execution type
• Payment Scheme

Once the Execution Strategy has been established
Planning and Scheduling must be aligned to it

Planning is inherent to this selection process

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Execution Strategy

Organisational Scheme depends on:
• How much involvement the owner or client is required or needed
• Payment Scheme
• Acceptable risks
• Capacity to manage the contractors and subcontractors in terms of

Project Management. i.e., Planning, Project Controls, Change
Management, Quality, and Contract Administration

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Execution Strategy

The most common Organisational schemes are:

• Design and build
• General Contractor
• Project Management team with few contractors
• Project Management team with many contractors
• Own force
• Mixed

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Planning & Project Controls

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Background / History

There are two origins of the modern method of Critical
Path:

The PERT method (Program Evaluation and Review
Technique) developed in the 50’s, when President J.F
Kennedy announced the US determination to launch a man
on the moon. This method was designed by the US Navy
and used to control the execution time of the diverse space
program, primarily due to the self imposed time frame.

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Background / History

The CPM (Critical Path Method), the second origin was also
developed in US, at Dupont y Remington Rand Research
and Develpoment center, searching to optimize the Cost
Control of the operations when planning projects.

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Project Controls World

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Project Controls World

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What is planning / scheduling?

An unique effort, with restrictions of time, quality and costs
within a timeframe, specific Scope of works, Specifications and
budget.

Planning is the process of WHAT is to be done and HOW things will be done

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What is planning / scheduling?

Planning is the process of breaking down a scope of work into
activities and arranging them in an orderly sequence, for time and
resource analysis, to execute the scope of work in an efficient
and controlled manner.

Planning is the process of WHAT is to be done and HOW things will be done

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What is planning / scheduling?
A Plan is a contract between the Executive Sponsor, the Project

Manager and the Project Team associated with and/or affected by
the project.

It is an unit of effort that can be planned, control and measured.

Planning is the process of WHAT is to be done and HOW things will be done

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What is planning / scheduling?

Of HOW things will be done depends on

Project Objective Execution types
Scope of Work (SOW) Type of contracts (Method of payment)
Work Breakdown Structure (WBS) Strategy of execution
Roles and Responsibilities Schedule
Risk Analysis

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What is planning / scheduling?

Project Planning is not easy.
The larger the project, the more difficult it is
Project Planning is iterative
(a repetitive improvement process)

Unless commitment is made, there are only promises and hopes... but no plans.
Plans are only good intentions unless they immediately degenerate into hard work

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What is planning / scheduling?

The ultimate purpose of planning is to build a model that
allows you to predict which activities and resources are
critical to the timely completion of the project,

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What is planning / scheduling?

Strategies may then be implemented to ensure that
these activities and resources are managed properly,
thus ensuring that the project will be delivered both On
Time and Within Budget.

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Planning Cycle

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Data Collection SOW WBS
OBS ESTIMATION

Logic Sequence Estimation PEP Update &
of Work Requirements Considerations Reporting
Process
Master Plan Resource Experience
Detailed Plan Calculations

Durations

Review data Yes Project Control System
Implementation
No
Simulation / What if analysis
Logic network / schedule FREEZE Logic network / schedule

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Levels of Planning LEVEL I and II

EXECUTIVE ▪ This level shows a summary of the project. One single page with
SUMMARY Milestones and the overall duration of the project structured by
phases or disciplines.

LEVEL III or MASTER PLAN

ROLL UP PROCESS PROJECT(S) ▪ This level describes the Contractual Work Package structured by
management. Depending of the phases (Engineering, Procurement
Risks, Costs, Time, Quality and Construction), the plan shows the major or most important
milestones that need to be achieved as well as the general scope of
PROJECT PHASES work to be executed.

EPCM LEVEL IV or DETAIL PLAN

REPORTING MATRIX ▪ IV Plan describes in further detail the activities indicated in the Mater
Plan.
WBS, Activity Codes, Work Packs, Disciplines, Work Fronts
▪ The most important element in the LEVEL IV Schedule is that it must
be prepared by contractors in accordance with the instructions of
UPDATING LEVEL management based on the WBS (Work Breakdown Structure), the
contractual timeframe and the milestones defined.
Activities at P6
Actual dates, % Progress, Forecast dates

MEASUREMENT SYSTEM (%) LEVEL V or OPERATIONAL PLAN

Activity Steps, Price Schedule, Earned Value ▪ LEVEL V Plan describes in detail the logistic required to execute the
job.
ESTIMATION
▪ This kind of plan is generally prepared for Shutdown, Hookup brown
Labor, Material, Equipments, BOQ and green fields work as well as recovery plans.

▪ It is considered operational because it helps to guide in a daily basis
the work to be done.

MEASUREMENT SYSTEM
▪ The project control system is the lowest level of details that allow the

executers to calculate the progress achieved.

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Rules of thumb on building a schedule

□ All schedule must be supported by a Basis of Schedule document
□ All schedules must reflect the full scope of work for the project
□ All schedules must be able to roll up into the integrated master schedules where relevant and be able to integrate

with other sub schedules that may form components of the respective schedule.

□ All schedules must show all Key Deliverables as Milestones
□ All schedules must be based on the project work breakdown structure (WBS)
□ Schedules must be developed to an appropriate level of detail commensurate with the scope, complexity and

scale of the project

□ Schedules must contain “balance”, where each element of the schedule is developed to the same level of detail,
(i.e. no skewing of schedule development with one or more areas developed in significantly more detail than
others)

□ All schedules must be baselined with an original approved baseline with appropriate stakeholder sign off
□ All schedules must have a corresponding and up to date assumptions list, this must be revision controlled
□ Schedules must be fully logic linked with no “open ends”
□ Activity durations should be scaled appropriately to suit the timeline of the project and frequency of reporting
□ Activities must be measurable using a method of physical percentage complete

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Rules of thumb on building a schedule

□ Activity Durations shall be modelled as most likely dates or PERT three point estimates
□ Schedule Contingency (weather, work stoppage, contingency etc.) shall be modelled as specific individual activities for

each stage within the schedule

□ Negative lag relationship shall not be used
□ Relationship Types should generally be Finish to Start (FS) ( target >=90% of all relationships)
□ Hard Constraints should be minimally used: Must Start or Must Finish and Not Later Than
□ High Float should be avoided: Total Float > 2 months (target <= 5% of total activities)
□ Negative Float must be avoided: Float < 0 days (0)
□ The longest activity duration should be 2 weeks. Sound reasoning must be in place to exceed this.
□ High Duration Activities > 2 months should be avoided
□ Lags should be expressed as discrete activities wherever possible. The lack of Lag visibility can distort the Critical Path

Calculations as well as the risk associated with lags applied to activities where different calendars are used.

□ All schedules should be resource loaded using time or currency (or both) were specified in Project Management Plan
□ Schedules must be updated monthly as a minimum in line with monthly reporting requirements or more frequently as

specified in Time Management Plan

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The Importance and Benefits of
Having Primavera P6 to Execute Project

HEMP ENGINEERING Pty Ltd

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The importance and benefits of having Primavera P6 to execute projects

Primavera P6 is an Enterprise Project Management software package that
allows many projects to be managed in one database

These projects may be
summarized under a
hierarchical structure
titled the Enterprise
Project Structure (EPS),

This function is similar to summarizing activities of a project under a Work
Breakdown Structure (WBS).

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The importance and benefits of having Primavera P6 to execute projects

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The importance and benefits of having Primavera P6 to execute projects

Primavera P6 allows: Primavera P6 allows:

Record the WBS- the deliverables Optimize the project plan
Set Baselines to compare progress
Break the deliverables into
activities Approve work
Record the actual progress
Assign durations, constraints,
predecessors & successors to Compare progress against the
activities original plan

Calculate the start and finish Amend the plan for scope changes
dates etc, and
Produce management reports.
Assign resources and/or costs to
activities

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Summary

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COMPONENT PLANNING MEASUREMENT SOURCE FOR MANAGEMENT OF REPORTING
LEVEL SYSTEM UPDATE & CHANGE
Master Plan FORECAST
Design
Procurement Level 4 Weight Factor Roll up from lower Changes included in Weekly update
Construction Distribution based on $ levels forecasts until officially Agreed KPIs

Commissioning approved 4WLA
Monthly Update

Level 5 MH Factor based on $ Project Controls, Changes included in Weekly update
Work packs and Design team and forecasts until officially Agreed KPIs
Progress of deliverables
Deliverables phases based on Milestones Project Management approved 4WLA
Gates approval Monthly Update

Level 5 MH Factor based on $ Project Controls, Changes included in Weekly update
Agreed KPIs
P.O and deliverables Procurement team and forecasts until officially
4WLA
phases Progress of deliverables / Project management approved Monthly Update

P.O based on Milestones approval

Gates

Level 5 MH Factor based on $, MH Project Controls, Changes included in Weekly update
forecasts until officially Agreed KPIs
Activities, grouped by or BOQ (TBA) Construction team and
approved 4WLA
WBS and/or Project Management Monthly Update

Activities Codes: Progress of Activities approval

Disciplines, Systems, based on Milestones

etc. Gates

Level 5 MH Factor based on $ Project Controls, Changes included in Weekly update
Commissioning team forecasts until officially Agreed KPIs
Activities, grouped by
and Project approved 4WLA
WBS and/or Progress of Activities Management approval Monthly Update

Activities Codes: based on Milestones

Systems, and Gates

Subsystems

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Project Example for Schedule Preparation

Beach House Slab Project

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Beach House Slab Project

Scope of Work
Design and Build a Slab which includes
Water Services
Power Services
Gas
Optic Fiber

Dimensions Project Duration Payment Scheme
Length: 20 mts To calculate Lump Sum
Width: 10 mts
Thickness: 0.15 mts

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Creating a Project
Opening a Project: New and existing

HEMP ENGINEERING Pty Ltd From the Menu
Select File, from the drop menu:
EPCM Project Management using Primavera
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Creating a Project Select Project for a existing project

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Creating a Project

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Creating a Project