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Junaid Mahoon

March 18th , 2015

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Safety Moment

Opening

Factors Impacting Project Success

Development Stages

Role of Project Controls – Owners View!

Questions?

Agenda

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OSSA’s industry partners have developed a common set of Regional Safety Rules enforced in 2015 across all approved OSSA member work sites. The common rules will ensure consistency and avoid confusion between companies. The rules will be applied within the Regional Municipality of Wood Buffalo in Northern Alberta.

The new Life Saving Rules are linked to those activities within the industry that have the highest historic potential for life threatening incidents. Suncor believes this is key to preventing Serious Injuries and Fatalities.

The rules align with OGP – Oil and Gas Producers standards, an internationally recognized set of rules that is the same all over the world.

There are 12 Supporting Safety Rules that can be selected and used for site specific purposes

OSSA – New Regional 7 Life Saving Rules

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OSSA – New Regional 7 Life Saving Rules

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Mining specific rule (non‐OGP)

Obtain authorization 

before entering a 

confined space

Protect yourself against a fall when 

working from heights

Work with a valid permit when required

Verify isolation before work 

begins and use the specific life protecting equipment

No alcohol or drugs while working or driving

Do not put yourself in an unsafe position with 

relation to Mine mobile heavy equipment

Obtain authorization 

before overriding or disabling safety 

critical equipment

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OSSA – 12 Extended Life Saving Rules12 Supporting Safety Rules (to be used to support Life Saving Rules above where applicable) 

Working or walking immediately under a suspended load is 

unsafe as the load can fall on you.

A seat belt protects you from injury in the event of an incident while 

driving and keeps you safe.

Speeding or using your phone while 

driving increases the risk of losing control 

of your vehicle.

A journey management plan is a plan for you as a driver that will help you to travel and arrive 

safely.

There is a significant risk of dropped objects when using tools and portable equipment at height. Preventing objects from falling keeps you and people working below you 

safe.

Working “in the line of fire” of moving equipment and energized equipment is unsafe as this can impact 

you.

Obtain authorization before starting excavation activities. Excavation activities may contain hazards such as electrical cables, confined space, collapse of walls or 

excavated material. 

Air is tested to stop explosions and/or make sure you can breathe the air safely

Personal flotation devices should always be worn when there is a danger of falling into 

water. 

Working with equipment immediately under or near overhead lines is unsafe as an electrical current or 

flashover can kill you. Maintain adequate distance to keep you 

safe.

Smoking or use of matches or cigarette lighters could set on fire flammable materials. Designated smoking areas will keep you safe from 

causing fire and explosion.

A lift plan describes how to lift and hoist safely. For 

routine lifts, there needs to be a general lift plan. For non‐

routine lifts, including complex and heavy lifts, the 

plan is specific.

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Gaps in scope definition Cost estimates inaccuracy Over zealous plans, Push to move projects faster Lack of good Front-End Planning Design / Engineering Quality Constructability factor Material sourcing and overlooked logistics Lack of skilled labour and Productivity hits Re-work in Engineering, Fabrication and Field In-effective Project Management High supply costs, low return projects Low corporate returns compared to competitors, The list goes on……

Factors Impacting Project Success

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Project Stage Gates

Options Evaluation

Selection

Design Basis

FEED and Detailed Engineering

ConstructionStart-up

Execution and Start-upBasic DesignIdea and Concept Selection

Start CompletionProject Time Line

Hig

h C

ost O

ptim

izat

ion

Low

Cos

t Opt

imiz

atio

n

Project Expenditure

Options Scoping

Options Selection

Design Basis

Detailed Engineering & Procurement

ConstructionStart-up &

Investment Review

FEED

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Scope

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This is the 1st step, understand The Scope being developed

What plan has been defined

Are business objectives and strategy understood

Is the team integrated and aligned

As we progress through stages Are we consistently meeting business objectives

Understand Risks

Scope Finalization

Understanding Scope and Execution

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Preliminary to Final key plan development Project Execution Plan

Contracts and Procurement Plans

Construction Execution Plan

The Project Organization

Consistent, high quality, well documented evaluations are fundamental to achieving high quality business decisions, especially with respect to capital investments

Which leads to selecting high return, low risk options

Further leads to selecting low cost structure with high resiliency to declining economic environment

Understanding Scope and Execution

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Estimates

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EstimatingStarting with understanding items from Scope and Execution, based on stage we can develop an effective estimate preparation plan and contribute more An Estimate is a representation of final cost of project at any given

Stage of project development i.e. say Gate-2 Development and Option Selection

Do comparative Estimates for options

Use Cost / Capacity or Equipment Factored approach and / or Similar Projects data from in-house

Utilize tools like ACCE and other such tools if appropriate

Check to see if any value improvement can be considered

Use estimate range vs. a number

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Estimating Continued… For Design, FEED or Execution

Start utilizing engineering material take-off’s, focus on key quantities

Market data and detailed benchmark modeling

Detail out all known items in project scope i.e. labour, equipment, bulk material, freight, etc. using median cost

Develop bottoms-up detailed estimate for construction Indirects

Involve Project Management / Construction and if possible Contractors in development of the sanction estimates

Establish duration based staffing plan estimates

Risk analysis of estimates for appropriate contingency

Peer and Leadership reviews

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Required vs. Current Accuracy+90%

+ 80%+ 70%+ 60%+ 50%+ 40%+ 30%+ 20%+10%

0%- 10%- 20%- 30%- 40%- 50%-60%

- 70%- 80%

Project DefinitionVariance from

 Previou

s Gate

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Schedule

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Alongside estimate, planning is a key step to develop completion schedules for each stage of project

Development / Selection Identify Key Milestones schedule based on job size, start and end

dates for the options

As schedule matures add more detailed information for key engineering deliverables, long lead materials, stage-phase dates

Design, FEED, EPC Stages Integrated Level 2 plus schedule at Stage / Gate-II

Progressively develop the construction schedule per execution and have an Integrated EPC Schedule at sanction i.e. our project schedule baseline

Schedule Baseline (Plan)

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Field Execution On Award of Construction Contracts, contractor’s Level-4 schedules to

be checked against the Gate-III baseline.

If the schedules are aligned, they are to be used to establish execution baseline for measurement of Progress & Performance

Bulk to Systems schedule conversion leading to Mechanical Completion / Transfer of Care, Custody and Control for Start-up are key to success of project completion

Schedule Baseline (Plan)

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Integrated Schedule – Construction, Systems & C&SU

Contractor 1

Contractor 2

Contractor 3

Contractor 4

BULK CONSTRUCTION

Schedule Integration

Phase

Contractor 1

Contractor 2

Contractor 3

Contractor 4

SYSTEM COMPLETION

BY SYSTEM

BY SYSTEM

BY SYSTEM

BY SYSTEM

TURNOVER

C &SU

SYSTEM TURNOVER

Integrated Schedule

Contractor’s

Project Team

Ops

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Cost Control & Change Management

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Cost Control system is breaking down the estimate into Code of Accounts to manage project cost. Key considerations in setting Control Base:

Cost Planning and Management is for life-cycle of project

Break down and package details to a level suitable for control of project e.g.; Recast by Site locations, Work Fronts, aligned with Contracting,

Procurement, Logistics strategies

Linked to Man-hours and Progress Measurement for Earned Value

Establish Budgets, Commitments, Actual Cost and Trends

Cost Control

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Time phase cost i.e. setup Cost Flow plan

In Execution phase onboard contractors and integrate their cost systems with project

In Change Management Focus on major variances, maintain change logs to document project changes

Focus on early warning to identify significant risks and potential for changes to the project Scope, Cost and Schedule.

Facilitate timely decision making by drawing on Risk based decision process

Up to date project forecast as our target

Cost Control

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Cost Control & Management Structure

ControlBudget & Change Control

Cost Accounts

EstimateBreakdownEWP/CWP

EBS-1.1.1EBS-1.1.2EBS-1.1.3EBS-x.x.x

ContractorCost Reports

Report 1Report 2Report 3

ContractorCost

System

Detailed CostAccounts

& Forecast

Integrated Cost Management System

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Progress and Performance Indicators Progress and Performance is critical for effective Project Controls Information required to keep project predictability up. Proactive approach vs. reactive Performance Indicator Types:

Engineering and Construction performance histogram and s-curve (Hours / Quantities)

Design completion time and quality of construction packages Receipt verification of material at site i.e. support contraction sequence Construction progress and performance report (Quantity & Hours) Key commodity curves (Quantities & Hours) Critical path Analysis and Schedule Look-ahead Cost Flow analysis Earned Value Analysis with recommendation for corrective action

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Progress and Performance Indicators

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Cross Functional Collaboration

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Forecast & Results

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