Framing & Alignment Meeting PROJECT NAME: Date: 28 October 2006.
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Transcript of Framing & Alignment Meeting PROJECT NAME: Date: 28 October 2006.
Framing & Alignment Meeting
PROJECT NAME:
Date: 28 October 2006
Pr 29:18 Where there is no vision (revelation), the people perish.
Pr 19:2 It is no good to have zeal without knowledge, nor to be hasty and miss the way.
To achieve alignment between all the stakeholders on the business, project and project execution objectives.
When?At the start – at kick off of the projectAt the start of each phase of the projectDuration of about one day
Who?The major project stakeholders :Business owner & sponsorMarketingOperations & maintenanceTechnical/engineeringEnvironmental
Why an alignment meeting?
Why Are We Here?
As management members of relevant departments and/or of the project, you are here to provide expert input.
A viable business opportunity has been identified and is being pursued further.
To improve efficiency and coordination on the planning of this project.
You are asked to set aside any issues, power plays, politics and to focus on the interests of the project.
You are invited to co-operate as a part of a flexible and dynamic discussion group that will outline and define the ultimate success of this project.
One conversation at a time – speak clearly.
All participate and contribute.
Listen to the contribution of others.
Getting ideas out, not judging them.
No rank in the room (except for the Facilitator!).
No political games.
No “us” and “them”
Cell phones off.
Have Fun!
Meeting Ground Rules
List of participants and introductionWhere are you from?What role do you play in the project? What are your expectations from the meeting?
Participants & Roles
Project RoleFromName
Framing MeetingObjective and DeliverablesThe objective:
1. Achieve alignment on project objectives, risk issues, scope of work, roles and responsibilities and next actions
The deliverables :1. A List of :(i) Business Objectives (ii) Project Objectives (iii) Project Execution Objectives2. A List of :(i) Business Risks (ii) Project Risks(iii) Project Execution Risks 3. A Block Diagram showing the scope of the project 4. Roles and Responsibilities5. Governance Structure and Communication6. Safety Health and Environment7. Contracting Strategy8. Project Ground Rules9. A Project Milestone Roadmap, with deliverables and dates10. A List of Next Steps
Project Framing Agenda
Define business objectives Define project objectives Define project execution objectives Business risks Project risks Project execution risk A Block Diagram showing the scope of the project Roles and Responsibilities Governance Structure and Communication Safety Health and Environment Contracting Strategy Project Ground Rules A Project Milestone Roadmap, with deliverables
and dates A List of Next Steps
Framing Meeting Block Diagram
ProjectExecution Planning
(Execution Objectives)
ProjectExecution Planning
(Execution Objectives)
Business Planning&
Objectives(WHY)
Business Planning&
Objectives(WHY)
Project Execution Plan
(Scope of services internal& external) (HOW & WHO)
Project Execution Plan
(Scope of services internal& external) (HOW & WHO)
Metrics to measuresuccess
Metrics to measuresuccess
Market needs& Requirements
Market needs& Requirements
Project(Facility) Planning
(Project Objectives)
Project(Facility) Planning
(Project Objectives)
The Right Project(Scope of Facilities)
(WHAT)
The Right Project(Scope of Facilities)
(WHAT)
Business ObjectivesDefine the Business Objectives: Understand the business opportunity and why
resources are committed to the project. What are the reasons for the project? How does it fit Corporate strategy? What is the economic justification?
IRR % NPV
What are the economic sensitivities ? Feed cost Sales volumes Capital cost Sale prices
What are the business drivers? New markets & opportunities Expansion Environmental/regulatory requirements
What other projects are impacted - or may be impacted?
Objective Matrix Results
Business ObjectivesResults to Achieve: (Business
Objectives)
Results to Prevent
Resources to be used
Restrictions preventing achieving
objectives
Framing Meeting Block Diagram
Project Execution Planning
(Execution Objectives)
Project Execution Planning
(Execution Objectives)
Business Planning&
Objectives(WHY)
Business Planning&
Objectives(WHY)
Project Execution Plan
(Scope of services internal& external) (HOW & WHO)
Project Execution Plan
(Scope of services internal& external) (HOW & WHO)
Metrics to measuresuccess
Metrics to measuresuccess
Market needs& Requirements
Market needs& Requirements
Project(Facility) Planning
(Project Objectives)
Project(Facility) Planning
(Project Objectives)
The Right Project(Scope of Facilities)
(WHAT)
The Right Project(Scope of Facilities)
(WHAT)
Project Objectives Define the Project Objectives: The project objectives support and underlay all the business objectives. Production facility performance objectives – volumes, purity, yields, etc? What are the project sensitivities – cost, schedule, (plant) performance (quality)? What are the milestone dates that must be met? (Window of opportunity – Schedule?) The technology to be used – new, proven? Environmental/effluent objectives? Site and location of the facility? Project specifications to be used?
Objective Matrix Results
Project ObjectivesResults to Achieve: (Project Objectives)
Results to Prevent
Resources to be used
Restrictions preventing achieving
objectives
Framing Meeting Block Diagram
ProjectExecution Planning
(Execution Objectives)
ProjectExecution Planning
(Execution Objectives)
Business Planning&
Objectives(WHY)
Business Planning&
Objectives(WHY)
Project Execution Plan
(Scope of services internal& external) (HOW & WHO)
Project Execution Plan
(Scope of services internal& external) (HOW & WHO)
Metrics to measuresuccess
Metrics to measuresuccess
Market needs& Requirements
Market needs& Requirements
Project(Facility) Planning
(Project Objectives)
Project(Facility) Planning
(Project Objectives)
The Right Project(Scope of Facilities)
(WHAT)
The Right Project(Scope of Facilities)
(WHAT)
Project Execution Objectives Define the Project Execution
Objectives: The project execution objectives must support and underlay business AND project objectives. Execution objectives with regards to:
Local content, country, site specific issuesEngineering / specificationsProcurementConstruction
Safety, health and environmental objectives Strategic milestone dates that must be met Understand Project Objectives and impact on
CostSchedule, Performance/quality
Financier requirements e.g. World Bank
Objective Matrix ResultsProject Execution
ObjectivesResults to Achieve: (Project Execution
Objectives)
Results to Prevent
Resources to be used
Restrictions preventing achieving objectivesSite location, remoteness
Site conditions, green field, revamp.
Logistic supplies
Infrastructure available
Local content
Business Risks
Identify the business RisksRisks arising from the business venture itself, effecting viability (good or bad) of the business model,usually external, unpredictable and not insurable
Market risk: Price changes, demand changes, substitute products, barriers to market entry, competition, etc.SHE risk: Changes in environmental requirements and legislation, green issues, CO2 emissionsFinancial risk: Currency fluctuations, inflation rates, interest ratesSocio-political and economical risks: AIDSGeo-political risks: regional wars, social instability
Project Risks
Identify Risk that will directly result from the project (facilities) itself:
Technology risksTechnical complexityFirst of a kind
Scope risk – potential for significant scope changes
Quality risk Cost risk SHE risks Any other risk inherent to the project
Project Execution Risks
Risk that will impact implementation and delivery of the project (EPC):
Availability of resources Skills availability Material and equipment supply & delivery. Site issues – congestion, remoteness, etc. Weather/climate Country, area, site specific issues Project Management risk Scope definition – scope creep Logistical, transport risks Infrastructure, equipment availability
Scope of Work
Define Scope of Work (Develop WBS)
Create a block diagramWhat is in the scope?
What is outside the scope?
Define the Battery Limits?
Other opportunities?
Project Organigram(Governance
structure)Develop project organigram
Indicate:Organisational structure – function, matrix or projectIndicate functions and reporting linesSteering Committee and key role players
Project Governance and Communication
How will the project be governed?MeetingsTechnical Meetings – attendees, frequencyProject Progress Meetings – attendees, frequencySteering Committee - members
CommunicationReportsFormat and FrequencyCommunicationMedia, format, referencing, lines of communicationApprovalsWhat approval levels will be applicable
Roles and Responsibilities
Develop RASCI chart for the project with all the project team members together
R – for Responsible
A – for Accountable
S – for Support
C – for Comment
I – for Information
Contracting Strategy & Plan
Types of Contracts proposed for:
Feasibility Phase:
Basic Engineering Phase:
Execution Phase:
Construction:
Project Road Map
Agree the Current Starting Gate and Key Deliverables for Future Gates or Milestones
Define starting gate or milestone:Define Next Gate or Milestone Deliverables and Dates for:
Business deliverables
Technical deliverables
Projects deliverables
Project Ground Rules
Technical Ground Rules
Project specifications
Life span of the project
Cost, schedule or quality driven
Plant safety
Human Aspects
How are we going to work together ?
What are the “rules of engagement” for the team
People health and safety issues
Team member availability
Decision making process
Next Steps
Decide on and write down the next steps during and after the Framing and Alignment Meeting with completion dates and responsible persons
Conclusion
The results from the Framing and Alignment session serves the following purposes: To achieve alignment on the WHY, the WHAT, and the HOW of a projectEnsuring that project objectives arealigned with company objectives.Forms the basis of the Project CharterForms the basis of the Project Execution Plan
Sasol Business Development & Implementation ModelBusiness Development Project Execution Operational Business
Front End Loading Implementation
Business/ Operations
Business Case Business Plan Final Business Plan The Business Running Entity Post Audit Report
Engineering/ Technical
Preliminary Eng. Proposals Conceptual Eng. Proposal Basic Eng. Package Technical Integrity Start-up Assistance Performance Certified
Project Management
Project Execution Assessment
Project Execution Philosophy Project Execution PlanProject as per Execution
PlanProject Close-out & Review
PlanProject Close-out Report
Sponsor Feasibility Charter Basic Development Charter Project Charter Governance Governance Governance
Probability of Business Development proceeding
Ph
ase
ob
ject
ives
Tra
ck D
eliv
erab
les
Ga
te C
rite
ria
30%
• Opportunity scanning• Brain storming• R&D Stage Gate Model• Business enquiries
Idea Packaging
Business Planning• Identify & assess opportunity• Assess business alternatives, uncertainties & risks• Company Strategy Alignment• Accuracy + 50%
Facility Planning• Develop & select best alternatives• Select Technology• Execution & Design philosophies• Develop Business opportunity• Accuracy + 30%
Project Planning• Optimised & fully defined scope• Authority Engineering• Execution Plan• Accuracy (+ 10% to + 20%) Depending on contracting strategy
Provide assets according to Business Plan• Implement with minimum changes• Facility & business systems ready for start-up• Owner quality assurance
Safe start-up of the assets and business systems• End-of job documentation• Steady operation• In specification product• SBU acceptance
Evaluation to ensure project met objectives• Performance test• Start business support• Post project audit
Focus
Idea GenerationPre-
feasibilityFeasibility Basic
DevelopmentExecution Start-up 7654321
50% 70% 95% 100% 100% 100%
• strategy fit• continue / abort• accept next phase plan
• right opportunity?• continue/abort/ rework• accept next phase plan
• right business solution?• continue/ rework/ abort• principle approval• accept next phase plan
• project authorisation• optimum project definition• continue/ rework/ abort• accept next phase plan
• ready for operation• approve start-up
• beneficial operation• stable operating plant• quality product
• all objectives met• acceptance of post audit & close-out reports
Evaluation/Operation
Copyright: © Sasol Technology (Pty) Ltd 2002, revision 4, 28 February 2003