The Three Essential Transverse Processes to Keep Large, Complex Projects Under Control

To keep control of a Large, Complex Project a large number of interfaces between functions have to be monitored through the Project Control processes. Three additional processes that are fully transverse to the Project also need to operate perfectly: these are:

• Management of Change,
• External Interface Management,
• and Procurement Post-Award Management.

Our new White Paper 2017-03 ‘The Three Essential Transverse Processes to Keep Large, Complex Projects Under Control’ exposes why these processes are so critical, and what are the associated success factors.

The three transverse processes exposed in our new White Paper 2017-03 ‘The Three Essential Transverse Processes to Keep Large, Complex Projects Under Control’  are absolutely essential for any Project to be successful. Sufficient attention must be devoted to setting up and operating those processes. This will often warrant to allocate a full-time experienced person to be allocated for Management of Change and/or External Interface Management. Experience often can’t be replaced when it comes to gauging quickly the impact of a Change or an Interface Request over the entire Project, including consequential impacts.

Depending on the Project organization, Project Control might not be responsible to establish and maintain these processes. In all cases it must make sure they are functional throughout the entire Project execution, and make good use of the data they provide.

How Psychological Factors Affect Schedule Optimism

Project Scheduling is not just science and rationality. Many psychological factors come into play when designing a Project schedule and then during Project execution that greatly influence events and outcomes. Some of these are compounded by intrinsic weaknesses of the scheduling approaches and methods used. Our new White Paper 2016-08 ‘What the Psychological Factors At Work in Scheduling Are, and How They Affect Schedule Optimism’ detail those issues.

The main psychological factors at work include:

• Parkinson’s law,
• Student’s syndrome,
• Commitment syndrome,
• Planning Fallacy,
• Lack of calibration of estimates.

Psychological factors play a decisive role in actual Project Scheduling and execution. Neglecting them is often disastrous, in particular because the net effect is often an optimistic initial plan, which subsequently progressively slips into delays.

Prevention methods must be implemented at the planning stage, which need to take into account whether familiar tasks or new tasks are being discussed. During Project execution, specific methods such as adequate project buffers, virtual float elimination and float monitoring, will also help minimize the effect of these psychological factors.

Read our new White Paper 2016-08 ‘What the Psychological Factors At Work in Scheduling Are, and How They Affect Schedule Optimism’ to get a grip on these issues.

At the end of the day, always remember that Projects are a Human Adventure!

How to Fight the Fallacy of Virtual Float

Virtual Float is the bane of Project management. It appears when one sequence of activities gets delayed: virtual float, additional time is created in all other activity sequences. Project contributors then tend to use this additional time in their favor. This inevitably results in cost overruns and additional delay risks. It is essential for the Project Manager to make sure that additional float is created in Project sequences only under controlled conditions. In this essential White Paper 2016-07 ‘How to Fight the Fallacy of Virtual Float’ we describe a number of methods to identify and tame virtual float in Projects.

The ‘virtual float’ effect

‘Virtual Float’ is bad. In some cases it would look like everybody is waiting for the first one to declare some delays so as to benefit from additional breathing space.

‘Virtual Float’ cannot be left unchecked and its utilization must remain under the control of the Project Manager. He needs to be able to decide whether it is appropriate to use it or not. The discipline of the Convergence Plan is here of much value, because it sets strict dates for the availability of key deliverables in the Project. Read our new White Paper 2016-07 ‘How to Fight the Fallacy of Virtual Float’ to fight the battle.

How to Ensure that Proper Communication Happens Between Functions to Keep Control of a Project

To keep control of a Large, Complex Project, the relevant internal interfaces need to be established from the beginning between the different functions on the Project, and they need to operate effectively. This includes of course those interfaces between Project Control and other functions, as well as some key transverse interfaces between functions. Our new White Paper 2017-01 ‘How to Ensure that Proper Communication Happens Between Functions to Keep Control of a Project’ covers the issue of communication assurance, with the aim to ensure that there is proper coordination of the effort and its reporting during project execution.

To ensure proper data availability, and regular challenges on its quality, interfaces must be organized between Project Control and:

• Accounting/ finance, to check consistency between cost data and accounting data,
• Engineering, in particular for contractual aspects of documentation delivery and for the control of engineering subcontractors within the project document assurance framework,
• Procurement, which is essential in particular on the following aspects:

o Consistency of the breakdown structure with the supplier strategy and relevant invoicing constraints to capture cost as required,

o Availability of bid tabs for a joint understanding of the procurement cost structure and proper cost control post-award,

o Awareness on potential Change Order and Claims from suppliers and subcontractors

o Proper interface between engineering and procurement regarding deliverables required

• Construction mobilization preparation, to ensure that control requirements are properly setup on site (cost management, schedule reporting and update, contract requirements etc.)
• Construction site management, in particular for the measure of progress and the management of the subcontractors involved in construction activities
• Commissioning management, to anticipate cost and schedule requirements flowing down from procurement and construction, as well as any issue regarding performance trials (the proper setup and management of delivery punch lists and carry over lists is also essential for contractual reasons).

Those interfaces must generally be formalized by the transmittal of relevant periodic reports (at least monthly) and the organization of regular status meetings (also at least monthly) attended by the Project Control team and by the function management team on the Project.

Properly organized, regular effective coordination meetings are a must in Large Complex Project to keep control of the events and of the control data that is associated. Systems cannot replace face-to-face discussions even if they can help focus it on key items. In some instances site visits are even recommended as a reality check.

Read our new White Paper 2017-01 ‘How to Ensure that Proper Communication Happens Between Functions to Keep Control of a Project’ to know more about communications assurance in projects!

How to Use Float Monitoring Techniques

There is an incredible value of using the available scheduling update information to track the evolution of the float to specific key Project delivery points. This simply involves a better utilization of available information without more updating work. It will often open the eyes of the Project manager early on impeding issues and allow timely actions to be taken to avert the pitfall. Thus Project Management can become responsive in anticipation instead of reacting after the event. Our new White Paper 2016-06 ‘How to Use Float Monitoring Techniques’ expands on this useful technique.

There are two ways of monitoring float:

• Monitoring activities’ floats as calculated by the Integrated Project Schedule program,
• Monitoring the available float with respect to a fixed date, e.g. a convergence plan gate or any other meaningful signpost.

The two different float monitoring techniques

We definitely prefer the second method to avoid creating ‘virtual float‘ and releasing pressure on project contributors.

This amazingly simple method is extremely powerful and allows much earlier anticipation of issues in Projects. Float monitoring leads us to quote one of our Project Value Delivery most favorite principles, which unfortunately has to be highlighted to too many Project teams during Project reviews:

“An activity that is delayed by one month every month will never happen!”

How many activities in your schedule re-forecast get simply pushed by another month every month? Read our new White Paper 2016-06 ‘How to Use Float Monitoring Techniques’ to avoid this.

How to Ensure that Project Control Data is Reliable on a Project

When controlling a Project, a first check to make is that what is measured is reliable and can be used as a basis for analysis and decision-making. Then further checks need to be made as the consistency of data and whether there is a proper coordination. Our new White Paper 2016-17 ‘How to Ensure that Project Control Data is Reliable on a Project’ concentrates on this issue of data assurance.

For example in terms of cost, the main issue is to have a timely image of actual cost (including any accruals for external cost, i.e. what is the actual cost spent to-date on the Project). This involves timely timesheets from engineering, proper reporting from suppliers and subcontractors with the least time delay possible, and proper indicators of cost spent on construction activities.

Ensuring accuracy of data is a first essential role of Project Control. If data is not accurate there is no chance to give a proper view of the current and forecast state of the Project, and therefore to take proper decisions.
The Project Control Manager’s position gives him/ her the possibility to check the consistency of information supplied from various sources. He/she needs to rely on the accountability of each ‘Scope Owner’ that need to take ownership of cost and schedule.

Still the Project Control Manager should intervene to rectify situations even if strictly speaking the data in question in not under his responsibility. Being in charge of making sure the Project is effectively under control it is his duty to intervene and sometimes even compensate failing segments of the Project to make sure it remains fully watertight data-wise.

Read our new White Paper 2016-17 ‘How to Ensure that Project Control Data is Reliable on a Project’ for insights on how to ensure data assurance on a Project!

How to Use Earned Schedule for Schedule Forecasting

Earned Schedule is a variant of Earned Value which we believe to be very applicable in schedule forecasting. As a relatively new method it is not yet fully approved by all practitioners and Bodies of Knowledge. However because the approach is simple and sound, as well as easily understandable by team members, we do recommend to use it to challenge schedule forecasts rather than Earned Value. Our new White Paper 2016-05 ‘How to Use Earned Schedule’ expands on the do’s and don’t of Earned Schedule.

Earned Value Illustration for Forecasting

Earned Schedule has been formalized in 2004 by Walter Lipke and further developed in his book ‘Earned Schedule’.

Earned Schedule provides a more tangible and stable schedule productivity measurement compared to Earned Value. It is expressed in time units, which is also a benefit.

Earned Schedule provides a more tangible and stable schedule productivity measurement compared to Earned Value. As such it is a very useful tool to use by the practitioner to measure schedule productivity and challenge completion dates accordingly. Read our Our new White Paper 2016-05 ‘How to Use Earned Schedule’ to understand better the approach.

From 1D to 3D Projects: the Dimensional Factor in Infrastructure Project Complexity

A number of factors determine Project complexity. One of them is often underestimated – it is the effective construction dimensionality of the final infrastructure being built. While quite naturally some industries manage well by keeping it low, it explains the exceptional level of complexity of some project realisations. Full 3D project objects are the most difficult and complex to plan and build. In our new White Paper 2016-20 ‘From 1D to 3D Projects: the Dimensional Factor in Infrastructure Project Complexity’ we investigate the role of this factor in the difficulty and complexity of projects.

ITER, a full 3D project of very high complexity

Project dimensionality is not necessarily only a property of the final object; it is also intrinsically linked to the manner with which the final infrastructure is being built. Projects generally try to minimize the dimensionality as part of their execution plan. We describe typical 1D, 1D+, 2D, 2D+ and 3D projects.

The added complexity of 3D projects can readily be understood taking into account the specific constraints on project execution created by the 3D circumstance. Several levels must be considered when scheduling the built, which impacts the entire chain from Engineering to Procurement. It will also make the execution plan much less flexible and most common productivity measures irrelevant to the performance of the project.

Dimensional complexity is a major factor that influences execution complexity and constraint. It should be minimized as much as possible. If it is not possible to avoid 3D complexity, the project should try to devise an execution plan that regains as much flexibility as possible with several potential work-fronts, while clearly establishing the priority sequencing for engineering and procurement taking into account the third dimension.

Full 3D facilities are amongst the most challenging projects and require the utmost applicable of the complex projects toolbox. 3D project characteristics should not be taken lightly. Discover why in our new White Paper 2016-20 ‘From 1D to 3D Projects: the Dimensional Factor in Infrastructure Project Complexity’

How to Perform Project Re-Baselining and Still Continue to Control the Project

Re-baselining during Project execution is sometimes inevitable when events make reference to the previously established baseline inadequate. This should remain a rare occurrence, inasmuch as any re-baselining exercise requires a lot of time and effort to be performed. A particular issue then arises, which is to continue to control the Project on the basis of the previous baseline while the new baseline is established and reviewed. In our new White Paper 2016-16 ‘How to Perform Project Re-Baselining and Still Continue to Control the Project’ we discuss all those challenges of Project re-baselining.

Implementing a re-baseline exercise at the same time as continuing to run the normal Project reporting and updating cycles on the basis of the previous baseline can be a challenge from the resource point of view, and needs to be carefully planned, as this effort will typically span over several months. Issuance of updated reference registers and schedules need to be coordinated in a clear manner to avoid confusion. Proper communication need to be maintained will all contributors regarding new expectations for planned dates.

During that period it is essential to continue updating the previous reference for actual and forecast data to ensure a continuous Project piloting. However, that reference is now not really applicable to the Project. This will create problems between what is reported and what is really happening and it is a dangerous situation from the perspective of keeping the Project in control.

Re-baselining is an exercise which effort and duration is too often underestimated. At the same time, continuing Project execution when the reference is being changes can always be tricky and commercial discussions do not help keep this transition phase short and easy.

Re-baselining exercises should thus be approached with care and method to be successful. A specific work plan is recommended with clarity to the team as to which version of the various registers and schedules is applicable. Read our new White Paper 2016-16 ‘How to Perform Project Re-Baselining and Still Continue to Control the Project’ for more details in how to implement re-baselining successfully!

3 Steps and 7 Principles for Proper Forecast of Integrated Project Schedules

Proper Integrated Project Schedule update and forecast are essential activities to maintain a schedule that can effectively be used for reference and decision-making. In our new White Paper 2016-04 ‘3 Steps and 7 Principles for Proper Forecast of Integrated Project Schedules’ we cover the schedule forecast of future activities.

The three steps of reforecasting are:

1. Based on the actual progress of the currently ongoing activities, determine their expected re-forecast completion time,
2. Observe how the Project activity network evolves naturally as a consequence of the re-forecasting of the ongoing activities, and whether issues need to be tackled with regard to certain requirements,
3. Reforecast future activities’ duration and effort (activities that are not yet started) based on the new knowledge available.

Seven principles that need to be observed during reforecasting include:

1. A Good Forecast Relies on an Accurate Update
2. Do Not Forecast Bottom-Up
3. Forecasting Is Not a High Level Exercise Either
4. Focus on Critical Path Activities and Critical Resources
5. Work/Budget Owners need to be committed
6. Implement information assurance processes
7. Do Not Forget to Reforecast Non-Started Future Activities

Schedule reforecasting is difficult because it takes a good understanding of the business. Yet Project teams do not spend enough time supporting their planning teams in that task.

Discover more about schedule forecasts in our new White Paper 2016-04 ‘3 Steps and 7 Principles for Proper Forecast of Integrated Project Schedules’