Effective Project Control using an Automated Gated Process...
Transcript of Effective Project Control using an Automated Gated Process...
Effective Project Control using an Automated
Gated Process Workflow and Project
Scalability
Dan Cohen
Manager, Project Management Foundational Capability
April 22, 2016
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DTE Energy, a Diversified Energy Company with Utility
and Non-Utility Businesses
DTE Energy Includes Both Electric and Gas
Regulated Utilities with Operations Throughout Michigan
DTE Energy also Includes Multiple Non-Utility Energy-
Related Facilities Throughout the United States
DTE Energy Non-Utility Energy-Related Facilities
Include Gas Storage and Pipelines
MAJOR ENTERPRISE PROJECTS
A Business Unit of DTE Energy Company
DTE Energy
Regulated Utilities
DTE Gas Company
DTE Electric Company
Non-Utility Businesses
Major Enterprise Projects
We are an industry-leading project management
organization specializing in successful implementation and
execution of large, complex projects. We take on tough
challenges and help our customers meet their goals safely,
efficiently, cost-effectively and on or ahead of schedule.
Major Enterprise Projects
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Major Enterprise Projects Structure
Fossil, Environmental,
Facilities
Distribution Technologies &
Renewables
Nuclear Development
& Other
Fermi 2 Nuclear Power Plant
DTE Gas
Quality Management Center of Excellence
Project Management Office Center of Excellence
Major Enterprise Projects Structure
280 Employees
Presentation Title
300 Projects
1.5 Billion USD Budget
3.8% PMO Overhead
applied to projects
Major Enterprise Projects History and Growth
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2006 Small Project Management
Office (PMO) begins to form 2007-
2008
Organization grows and becomes
Major Enterprise Projects focused
on environmental projects 2009
Facilities projects comes to
MEP with added employees
2010 MEP achieves PMMM Level 3
and Smart Grid comes to MEP
with added employees 2011
Fermi 2 nuclear projects come
to MEP with added employees
2012 MEP achieves PMMM Level 4
and APQC Best Practice PMO
Award 2013
2014
Michigan and out of state
natural gas projects come to
MEP with added employees
MEP begins to work outside of the
company. PMO of the Year
finalist. Awarded ISO 9001.
Portfolio exceeded $1 billion. 2015
Information Technology Service
projects come to MEP with
added employees
MAJOR ENTERPRISE PROJECTS
Project Management Office (PMO) Center of Excellence
• Project Controls
– Scheduling
– Estimating
– Contract Administration
• Project Management
• Finance and Budgeting
• Continuous Improvement
• Engineering
– Project Engineering
– Discipline Engineering
• Construction Management
• Information Management
• Document Control
• Communication
• Training
• Safety
• Facilitation and Metrics
• Human Resources
• Administrative Support
• Supply Chain
Gated Process
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MAJOR ENTERPRISE PROJECTS
Best Practice Solutions to Keep Projects on Track
Benchmarking has shown that having a gated project management process is
the best practice for ensuring sustainability and compliance to pre-specified
processes which is the key to project success
The MEP Gated Process Establishes
Clear Pre-Specifications:
• Required Deliverables
• Deliverable Due Dates
• Approval Requirements and Roles
The MEP Gated Process Contains
Embedded Tests:
• Standardized Process for
Submitting a Project for Gate
Approval
• Projects Do Not Move to the Next
Phase without Gate Approval
Gate 0 • Authorization
Gate 1 • Initiation
Gate 2 • Conceptual
Gate 3 • Design
Gate 4 • Implementation
Gate 5 • Commissioning / Start up
Gate 6 • Closeout
MEP Gated Process
Gate 0
Authorization Phase
Deliverables
Gate 1
Initiation Phase
Deliverables
Gate 2
Conceptual Phase
Deliverables
Gate 3
Design Phase Deliverables
Gate 4
Construction / Implementation
Phase Deliverables
Gate 5
Commissioning & Start-Up
Phase Deliverables
Gate 6
Close-Out Phase
Deliverables
All Projects must come
through the Strategic
Planning Process
Project Manager is
Assigned
Work Scope Document is
approved
*Complete Deliverable &
Design Verification Checklist
* Complete Project Work Scope
Checklist
*Design Deliverables
completed per Scope, per
Schedule
Notification by Contractor of
Substantial Completion is
provided per Contract
Notice of Equipment in
Service eform is completed
Project Closeout
Phase-Process
Checklist has been
completed
Project Owner is
established
Project Charter is approved
by Customer and MEP
Leadership
Project Kick-Off meeting is
completed
*Meeting Minutes and
Notes Issued
Construction Criteria & Testing
Criteria are completed
Commission Readiness Approval
is granted by Contractor and
accepted by Start-Up Team per
Contract
*Project Closeout
Checklist-Deliverables has
been completed
*Training and Warranty has
been Accepted by Client
Project Summary
Report has been
finalized per Scalability
Document
Partial Appropriation is
approved
Project Scalability Matrix is
approved
*Initial Baseline Schedule is
completed
*Initial Baseline Budget is
completed
*Staffing Plan is completed
Baseline Schedule is
completed
Initial Punch List is developed per
Contract
Punch (warranty) List is
Accepted by Client
AAR Meeting is
Completed
Financial Analyst notifies
Scheduling Supervisor of
the project
Initiation Meeting is
completed and Meeting
Notes Issues
PDRI is completed if
required through Scalability
Matrix document
* Baseline Budget is completed
(Initial Cost Sheet)
*Full Appropriation is granted
Update Project Summary Report
per Scalability Document
Update Project Summary
Report per Scalability
Document
MEP Roles &
Responsibilities are
Clarified
Preliminary IRP with
template review
Complete Conceptual
Phase Checklist, Initial
Master Document List,
Environmental Change
Checklist
Initial Project Summary Report
per Scalability Document
Construction Configuration
Control as per Document Control
Plan
Key Stakeholders are
identified
Documentation Strategy is
Established
Equipment Checkout and Initial
Operation Plan per Scalability
Document
Project is accepted by the
Directors of the PMO
Office and added to 1 & 5
yr Plans
Completion of the Initiation
checklist
Initial Project Manage Plans
to support design phase:
- Project Management Plan
- Quality Plan
- Scope Management Plan
- Procurement Plan
- Stakeholder Engagement
& Communication Plan
- Risk Register
- Risk Management Plan
- Document and File
Management Plan
Project Management Plans are
Finalized and Approved for the
rest of the Project:
- Safety Plan
- Project Management Plan
- Quality Management Plan
- Scope Management Plan
- Procurement Plan
- Stakeholder Engagement &
Communication Plan
- Risk Register
- Risk Management Plan
- Document and File
Management Plan
Project Management Plans are
Updated if required:
- Safety Plan
- Project Management Plan
- Quality Management Plan
- Scope Management Plan
- Procurement Plan
- Stakeholder Engagement &
Communication Plan
- Risk Register
- Risk Management Plan
- Document and File Management
Plan
Project Management Plans
are Updated if required:
- Safety Plan
- Project Management Plan
- Quality Management Plan
- Scope Management Plan
- Procurement Plan
- Stakeholder Engagement
& Communication Plan
- Risk Register
- Risk Management Plan
- Document and File
Management Plan
Preliminary MEP Director
sponsor ensures Gate 0
actions are completed
Construction Status and Startup
Readiness Plan per Scalability
Document
Communication is notified
by Gate Administrator who
will announce new project
to all MEP
System Startup and Integrated
Testing Plan per Scalability Plan
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2015 MEP PM & PC All Hands:
Gated Process- Gate 0 - Authorization A. Awad
Project Scalability…determining level of rigor
Likelihood
Impacts
Schedule
Cost Less Than 1,000,000$ $ 1,000,000 to $ 10,000,000 Greater Than $ 10,000,000
Quality
Safety
Scope
Reputation
Operations
Revenue
Environment
Legal
Visibility
Expertise
Complexity
Team Size Less Than 20 20 to 1000 Greater Than 1000
Impact level Matrix
Small number of interfaces with
structures/systems/components and/or people
Little or no visibility to company executives
Low
Unlikely
Low High
Almost Certain
High
High visibility to company executives
Large number of interfaces with
structures/systems/components and/or people
Medium
Likely
Medium
Moderate visibility to company executives
Medium number of interfaces with
structures/systems/components and/or people
Little or no impact on the company's ability to
operate if the project is behind schedule
Potential to affect company's ability to operate if the
project is behind schedule
Certain to affect company's ability to operate if the project
is behind schedule
Minor impact to the quality of the company's
operations
Moderate impact to the quality of the company's
operationsMajor impact to the quality of the company's operations
Low risk to personnel of physical injury requiring
first aid.
Moderate risk to personnel of physical injury requiring
medical treatment.
Significant/high risk to personnel of physical injury requiring
hospitalization.
Low chance of scope changes Medium chance of scope changes High chance of scope changes
Potential for minor reputational harm to DTE
EnergyPotential for moderate reputational harm to DTE Energy Potential for serious reputational harm to DTE Energy
Little or no impact on the company's ability to
conduct business operations
Minor impact on the company's ability to conduct
business operations
Major impact on the company's ability to conduct business
operations
No impact to company's ability to collect revenue Minor impact to company's ability to collect revenue Major impact to company's ability to collect revenue
No impact to surrounding environment Potential impact to surrounding environment Certain impact to environment
Little to no legal liability Potential minor legal liability Potential major legal liability
Sufficient expertise to manage project exists Some expertise to manage project exists Insufficient expertise to manage project
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2015 MEP PM & PC All Hands
Gated Process- Gate 1 - Initiation A. Awad
H = High Process Rigor
L = Low Process Rigor
VL = Very Low Process Rigor
R = Required
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2015 MEP PM & PC All Hands
Gated Process- Gate 2 - Conceptual A. Awad
H = High Process Rigor
L = Low Process Rigor
VL = Very Low Process
Rigor
R = Required
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2015 MEP PM & PC All Hands
Gated Process- Gate 3 - Design A. Awad
H = High Process Rigor
L = Low Process Rigor
VL = Very Low Process Rigor
R = Required
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2015 MEP PM & PC All Hands
Gated Process- Gate 4 – Construction/Implementation A. Awad
H = High Process Rigor
L = Low Process Rigor
VL = Very Low Process Rigor
R = Required
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2015 MEP PM & PC All Hands
Gated Process- Gate 5 – Commissioning/Start up A. Awad
H = High Process Rigor
L = Low Process Rigor
VL = Very Low Process Rigor
R = Required
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2015 MEP PM & PC All Hands
Gated Process- Gate 6 - Closeout A. Awad
H = High Process Rigor
L = Low Process Rigor
VL = Very Low Process Rigor
R = Required
N/C = No Changes
MEP Gated Process Key Players
• Process Owner
– Communicates with stakeholders; educates project managers
• Gate Administrator
– Schedules all Gated Process weekly meetings, publishes agenda, and
forwards file folder location of Gated Process Checklist Package to the
Knowledge Area Leads
• Project Manager
– Prepares and submits Gated Process Checklist Package to
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MEP Gated Process Key Players
• Knowledge Area Lead
– Reviews pre-specified attributes that are within his/her knowledge area
to ensure effective implementation of PMMM process
• Gate Committee
– The Gate Committee is comprised of the following directors: Program
Office, Quality Management, Project Management, Engineering and
Construction, and the Project Platform requesting Gate approval
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Gated Process Weekly Timeline
Old Manual Process (1 Week cycle)
• Tuesday - Project Manager submits required documents via email
• Wednesday Noon - Gate Administrator creates different public folders and
inform Knowledge Area leads to start the review of submitted documents
• Friday - Knowledge Area Leads finish their review
• Tuesday Noon - Gated Process Owner and Administrator summarize the
reviews and mitigate issue
• Tuesday Afternoon - Gated Process Steering Committee meet to pass /
reject different projects and sign gate process checklists
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What issues do you see?
New Automated Gated Process (1-2 Day cycle)
Tools
• ePAT (Electronic Project Activity Tracking) - Oracle Primavera Unifier
workflow software
• Primavera - 3 Project Schedule Templates for High, Low, and Very Low
process rigor projects, including required deliverables
• PMMM Document Tracker utilizing Primavera/Access Database Interface
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ePAT
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Electronic Project Activity Tracking (EPAT)
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Business Processes Programs and Projects
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Contact Closure Business Process Workflow
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Issues Business Process Workflow
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Gate Review Business Process
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Gated Process Workflow
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Temple Substation - Distribution Operations Project
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Project Gates
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Email to Approver
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Project Gate Submission for Approval
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Approval List
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Gate Review Business Process Workflow
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Gate Review Trend Charts
OLD Manual Process
Up to 15 days to process
NEW Automated Process
Average 1- 2 days
Knowledge Area Lead
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Project Management Maturity Model
Knowledge Area Leads • The PMMM KAL role is responsible for one or more specific knowledge areas
within the PMMM in supporting the objective to raise the project management
capability across the Enterprise
• The KAL is the subject matter expert for their knowledge area and ensures their
assigned PMMM knowledge area is comprehensive and accurately describes
the actions required to achieve each PMMM assessment level.
• The PMMM KAL participates in the project Gate process by reviewing and
approving knowledge area documents.
• Further, the PMMM KAL provides coaching and mentoring to MEP PMs and
others in regards to their assigned knowledge area to support effective project
management practices and support the attainment of project management
certification.
Project Tracking
Integration of Primavera and ePAT
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2016 MEP PM & PC All Hands
PMMM Document Tracker A. Awad
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2016 MEP PM & PC All Hands
PMMM Document Tracker – Low Rigor A. Awad
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2016 MEP PM & PC All Hands
PMMM Document Tracker – Very Low Rigor A. Awad
References
• DTE Energy
https://www.newlook.dteenergy.com/wps/wcm/connect/dte-web/home
• Oracle Unifier
https://www.oracle.com/applications/primavera/products/unifier.html
• Primavera
https://www.oracle.com/applications/primavera/products/project-management.html
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