PLANNING & SCHEDULING BYAL-LATIFIA

Mazhar AnwaarSaleh Al-Garni

January 23, 2010

CEM – 510 TERM PROJECT

OUTLINE

Project Objectives

Research Methodology

Contractor Introduction

Project Management System

Planning & Scheduling Techniques

CPM Technique

Monitoring & Control Techniques

Effectiveness of Management Techniques

Conclusions

Q & A

Wrap Up

PROJECT OBJECTIVES

How contractor is doing Planning & Scheduling? Is he following industry accepted methods and procedures? How dynamic P&S for various project phases? How variance is identified against plans? How effectively plans are used to monitor and control the variance?

RESEARCH METHODOLOGY

Brief Interviews

Detailed Interviews

QuestionnaireDevelopment,

Distribution and Collection

CONTRACTOR INTRODUCTION

Al-Latifia Trading and Contracting

Founded: 1987 Headquarter: Riyadh Operations: Throughout the KSA Size: Over 7000 Employees The growth is mainly attributed to its broad project experience and skilled technical resources.

STRENGTHS & DIVERSITY

Kingdom-wide Mobilization

Highly Qualified Professionals

Physical Resources

Fabrication Capability

Project Diversity

Al-Latifia Corporate Structure

Corporate Finance

Accounting and Control

Treasury

Strategy and Performance Mgmt. HR

Legal Council

Communications and PR

Procurement and ContractsPlanning

Cost Control

Project Management

Engineering

Quality Control and HSE

General Manager

Internal Audit

Construction / Operations

Planning and Project Control

FinanceHR and

Administration

IT

Tendering and Estimation

Purchasing and Logistics

Commercial

ORGANIZATIONAL BREAKDOWN STUCTURE

Typical Project Organizational Structure

Quality Supervisors HSE SupervisorsProcurement EngineersPlanning Engineers

Cost Control Engineers

Electrical Lead

Mechanical Lead

Civil Lead

Project Manager

Secretarial Support

Construction Manager

Planning Manager

Quality Manager HSE ManagerProcurement

Manager

Structural Lead

Contract Administrator

IT Support

HSE Engineers

Discipline Engineers

Engineering

Manager

Quality Engineers

Sub -Contractors

ORGANIZATIONAL BREAKDOWN STUCTURE

GOSI Granada SR. 1.54 billion contract – 42 Months Duration A business and residential complex for the General Organization for Social Insurance (GOSI), in Riyadh. The project includes:

• Six high-rise towers• Large underground parking facility• A business center other buildings and amenities.

Saudi Aramco Corporate Data Center SR. 714 Million Contract – 27 Months Duration A strategic project for Saudi Aramco and for the Kingdom of Saudi Arabia. The biggest data center for any producing company Construction of apx. 6000 square metes raised floor divided into four data halls. Complex mechanical & electrical systems.

MAJOR PROJECTS

SOME RECENT PROJECTS

Sofitel Hotel Al-Khobar

Dar Al-Yam Printing Facility

El-Khereiji Office and Commercial Complex:

SABB Regional Offices

PROJECT MANAGEMENT SYSTEM

As per the PMBOK Project Management (PM) is application of knowledge, skills, tools, and techniques to project activities to achieve required objectives.

Al-Latifia planning is divided into two phases: Bid Planning: Done for the bidding of the projects through corporate office Project Planning: Done after the award of the project by the project manager & his team

Al-Latifia project managers and their teams are responsible:

For the development of Project Plans as per the client requirements.

The project plan covers all the aspects of project management including scope, time, cost, resources, quality, HSE, communication and procurement planning.

PLANNING AND SCHEDULING TECHNIQUES Every project plan is to answer the basic questions:

What to be done? Scope Management When it needs to be done? Time ManagementWhat it cost to do? Cost ManagementWho & How will do? Resources Management

Al-Latifia planning and scheduling techniques are more focused around Critical Path Method (CPM) and its requirements.

Our project focus was to study time, cost and resources planning features of Al-Latifia.

WHAT IS CITICAL PATH METHOD?

A PM methodology designed to effectively plan and control a project.

It Offers a structured approach to project planning and control features.

A network analysis technique used to predict project duration by analyzing which sequence of activities (which path) has the least amount of scheduling flexibility.

CPM TECHNIQUE

Al-Latifia is applying CPM, while utilizing various tools and techniques:

Work Breakdown Structure Network Modeling Durations & Resources Estimation Schedule Development & Analysis Budgeting and Costing

WORK BREAKDOWN STRUCTURE

Breaking the project down into smaller elements.A greater probability that every major and minor activity is accounted for.

Significance Responsibility matrix Costing Risk analysis Organizational structure Control (including contract administration)

Use of typical WBS templates form historical data of previous projects .

16Developed by: ITSU Graphics/PPOD/Project Support & Controls Department

WORK BREAKDOWN STRUCTURE

17Developed by: ITSU Graphics/PPOD/Project Support & Controls Department

WORK BREAKDOWN STRUCTURE

NETWORK MODELING, ESTIMATION OF TIME AND RESOUCRES

Primavera (P3) with PDM network are used for scheduling.

Historical information used for the estimation of activities durations and resources.

Historical productivity records are used to assess the time and resources requirements. Resource leveling is done for the optimization of manpower and equipments (Contradiction)

SCHEDULE DECVELOPMENT & ANALYSIS

Identification of CP and near CPs Verification of Milestones and Project Completion

Dates Baseline schedule submission for approval (Control

Sch.) No specific method used for schedule analysisSignificance: Benchmark the project actual progress against the

plan. Impact of late starts and early starts Trade-offs between resources and time Evaluation of performance

BUDGETING & COSTING

Once a project is awarded to Al-Latifia:

Budget assigned from higher management. Project Manger responsible for Managing and controlling the cost. Assigned Budget = Direct + Indirect + POHs Assigned Budget formulate the basis of control.

Significance :

What is included and what is not included Cash flow plan, with progress payments & overdraft

MONITORING & CONTROL TECHNIQUES

Generally to achieve Control: Cost, schedule, and technical objectives are clearly documented, realistically derived, and deliberately managed.

Type of Controls:

Schedule Control Cost Control

MONITORING & CONTROL TECHNIQUES

Schedule Control

Weekly update of schedules Variance Analysis. Weekly meetings to:

o Monitor the progress o Reasons for variance

Corrective actions Recovery plan implementation

MONITORING & CONTROL TECHNIQUES

Cost Control

Project Budget as Basis of Cost Control Weekly update as per actual Cost Variance Analysis Identification of Variation Causes Corrective actions to Eliminate the variance Recovery plan implementation

EFFECTIVENESS OF MANAGEMENT TECHNIQUES

Structured PM techniques - Enhanced control through WBS Segmenting projects into logical control points Variance tracking - Earned value method

For each project - Variance thresholds

Recovery plan in case it happens.

Utilization of enough time and resources on planning.

Planning & Scheduling - CPM technique utilizing P3 PP

CONCLUSION

System Development Under progress - Implementation of ERP, and ISO Certification.

Al-Latifia is growing at fastest pace and also improving its systems and procedures.

More focused in optimization of project time line and budgets.

Careful planning, vigilant monitoring & controls with simple tools and techniques. (WBS, Schedules, S-Curves, Manpower HG, Procurement Plan etc.)

Q & A

Any Question Please!!

Thank You