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CM-MA-007 Retention of Consultants

CM-PE-902 Procedure for Progress andPerformance Measurement (/general-procedures/52-cm-pe-902-procedure-for-progress-and-performance-measurement.html)

Table of Contents

1. Purpose (http://www.red-bag.com/jcms/#1)

2. General (http://www.red-bag.com/jcms/#2)

3. Responsibilities (http://www.red-bag.com/jcms/#3)

4. Procedure (http://www.red-bag.com/jcms/#4)

5. Flowchart (http://www.red-bag.com/jcms/#5)

6. References (http://www.red-bag.com/jcms/#6)

1. Purpose

It is company policy that baseline plans are established for each project, which define

the targets against which project progress and performance is measured and judged.

Changes to the baseline must be well controlled. Project progress and performance

against the baselines must be monitored in a consistent manner throughout the life of

the project.

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The purpose of this procedure is to define the principles to be used in progress and

performance measurement. Specific details are covered elsewhere (see references).

2. General

The procedure applies to engineering progress and performance as well as to

construction. Note that for procurement the manhours are tracked in the engineering

system, while procurement progress (e.g. items purchased and delivered) is tracked in

RMMS and is not covered here.

The application of this standard is mandatory for all projects with more than 20,000

H.O. manhours or 50,000 construction manhours, unless company management

waives this requirement.

2.1 Definitions

Performance: A comparison of actual achievements with the baseline.

Baseline: (for this procedure) The project manhour budgets and schedules (including the

planned progress and manhour expenditure curves) against

which project performance is measured.

Schedule baseline Approved project schedule(s). Note that schedule set-up

and performance is covered in the planning procedures

Budget hours Budget hours are extracted from the project estimate and

should include all development allowances and exclude

contingency. Only direct hours are to be included in

progress calculations.

Scenario (weights): Cumulative budgeted percentages established at each

progress milestone, e.g. issued for comment = 30%.

Earned value (manhours): The budgeted value (in manhours) of completed work.

Percent complete: (at summary

levels)

Earned manhours divided by total (current) budget manhours

Efficiency: A comparison of earned and expended manhours. Efficiency

is calculated by dividing earned manhours by expended

manhours. Efficiency is expressed as a percentage (>100%

is good).

Work Breakdown Structure

(WBS)

A standardized breakdown of the project, where all elements

are coded in a hierarchical structure.

Project Execution Control: (PEC) Standard company system that tracks document progress

and calculates summary progress and efficiency.

Construction Performance

Monitoring System (CPMS):

A similar system for construction.

3. Responsibilities

3.1 Individual Responsibilities

A. Project Manager

It is the responsibility of the project manager to ensure that the progress and

performance measurement program is set up and executed in accordance with

this procedure.

It is the responsibility of the project manager to ensure that trends and variances

identified by the progress and performance measurement program are evaluated

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Design and

and that problems are mitigated through corrective action.

B. Project Engineering Manager (Home Office System)

C. Project Control Manager (Home Office System)

D. Construction Manager (Field System)

It is the responsibility of these managers (B, C and D) to:

Oversee and supervise the implementation of the system.

Review the input to the system and ensure that it properly reflects the status.

Ensure that the results / reports are analyzed for trends.

Provide the project manager with timely and accurate performance data and

analysis, especially for items that are important to the overall project.

Provide recovery planning if important variances are identified.

Ensure that accurate records of project data are maintained.

3.2 General Implementation Responsibilities

Responsibility for detail implementation will be specified in other procedures and work

instructions. In general following applies:

home office progress input: discipline leads and project clerk

home office reports (and co-ordination of set-up): H.O. project control staff

field system input: subcontractors, verified by construction personnel

field system reports (and set-up): field office project control staff.

4. Procedure

4.1 Requirements

Progress and performance must be monitored on a uniform basis using the earned

value method with manhours as a basis. This monitoring takes the form of the following

specific methods:

establishment of a WBS

establishment of budgets and scenarios

establishment of baseline plans

assessment of the value of the work done

assessment of manhours expended

production of reports

analysis and corrective action

incorporation of baseline changes

The following text describes the specific requirements associated with each of the

above mentioned methods.

4.1.1 Establishment of a WBS

The WBS shall be in accordance with company and project guidelines and must cover

the full scope. Very large WBS elements should be avoided, because they limit the

clarity of the reporting. See ref.6.3.

4.1.2 Establishment of Budgets and Scenarios

The total manhour budget must be distributed over the WBS elements to the lowest

level required by the systems (PEC or CPMS).

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Scenarios for the steps that a deliverable goes through should be based on the latest

company standard or guide or on specific client requirements. If custom scenarios are

created for a project they should generally be as simple as possible.

4.1.3 Establishment of a Baseline Plan

The project can report against one or more of the following:

Preliminary baseline (in case a plan is needed before sufficient information such as

WBS, schedule, etc. is available).

Baseline plan.

Forecast or revised baseline (see below).

Reports should clearly show which of the above is used.

As early as possible, the baseline plan (in the form of S-curves) must be developed on

the basis of the WBS, the budgets and approved schedules. Integrated baseline

(original) plans must be made for manhours (or staffing) and for progress; the only

difference between the two is the (assumed) efficiency variance over time.

If a new baseline plan for the project is required it shall be called “XXX forecast” where

XXX represents the month / year (e.g. April 2000) that the new forecast was

implemented. Such a revision may for instance be necessary near the end of the

design period, to produce a realistic construction plan based on the real scope.

Another instance could be if major change orders have significantly impacted the

manhours and/or schedule.

4.1.4 Assessment of the Value of Work Done

Work done is to be entered in the progress system at the detail level. This can be as

items or quantity completed or as a progress step in a scenario.

For smaller tasks (low number of manhours) no credit should be taken until a scenario

step is fully completed and the full percentage for the scenario can be applied. This

method generally applies to all subcontracted construction.

Intermediate credit between scenario steps should be applied in case not doing so

would result in significant inaccuracy.

4.1.5 Assessment of Manhours Expended

Only manhours directly associated with the production of the deliverable should be

included. General, indirect and (H.O.) follow-up manhours should be booked to

separate WBS codes and should not be used in progress calculations.

4.1.6 Production of Reports

A proper system (preferably computerized) must be used to collect all data and

perform all calculations. Currently the PEC system is the standard system used for

engineering and CPMS for construction. Reports from these systems should be made

available to all parties involved and to all that need to know.

The reporting should cover the full range from “report by deliverable” to a “one page

summary”. Especially the high level summaries must be easy to understand by people

who do not regularly work with the system, such as clients. It is not required that

summaries and graphs are part of the underlying automated system.

Frequency of reporting will be as defined in other procedures or in the PPEM.

Generally the H.O. will be on a monthly and construction on a weekly update cycle.

Full status reporting for both will be monthly in accordance with the project calendar.

Progress, efficiency and manhours expended must be plotted on graphs against the

baseline plan and/or forecast. The number and format of graphs should follow project or

company guidelines.

If an overall project progress percentage is to be reported, the following weighting will

be used, unless the client requires different weighting:

engineering 35%, construction 65% (preferred) or

engineering 25%, procurement 30%,construction 45% (alternate).

4.1.7 Analysis and Corrective Action

Using (preliminary) reports, the data will be analyzed for:

A. Inaccuracies in progress or manhour input;

If inaccuracies are found this may result in corrections to the input and rerunning the

reports or this may result in a manual correction to the summary reports only. Such

manual corrections shall be recorded in an auditable way (including reason), signed off

by the project (control) manager and filed with the record copy of the reports.

B. Performance trends and problems;

All significant or undesirable trends shall be brought immediately to the attention of the

project manager, who will decide if action needs to be taken. Negative trends in

efficiency at the discipline level should always be subject to a thorough review because

they are often the result of structural problems.

4.1.8 Incorporation of Baseline Changes

All changes to the project manhours that have been fully agreed (e.g. change orders

approved by the client) must be immediately (monthly) incorporated in the overall

(summary) reports. The decision when to incorporate these changes at the lower levels

of the system may be based on practical considerations by the project (control)

manager.

4.2 Procedure for Set-up

During system set-up the following elements must be defined and included in the

monitoring system by the people responsible (mostly project controls):

WBS

manhour budget and detailed distribution over the WBS elements

progress assessment scenarios

schedule

planned progress S-curves

Refer also to section 5 flowchart.

4.3 Procedure for Running the System

Running the system consists of:

Assess the work done (quantity or percent). For engineering the disciplines

themselves provide most of this input and in construction the subcontractors

(verified by field supervisors and/or project controls)

Obtain the expended manhours.

Run the system and produce trial reports.

The trial reports will be reviewed by all responsible parties and corrections will be made

as necessary (see also 4.1.7.A)

The reports will be carefully analyzed for possible trends and problems (by all) and

where appropriate, corrective action will be initiated (project manager’s responsibility).

Refer also to section 5 flowchart.

5. Flowchart

6. References

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Document Number Title Level

6.1 CM-PE-920 Procedure for Project Execution control (PEC) 2

6.2 BN-W-UC002 Work Instruction for Construction Performance

Measurement

4

6.3 CM-PE-921 Procedure for Project Work Breakdown Structure

(WBS)

2

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