Doc.

No: WI-SAI-PCON-003-E
WORK INSTRUCTION
Rev. 03 Date: 19/OCT/09
ENGINEERING PLANNING,
PROGRESS MONITORING, AND REPORTING
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Revision Summary

Date Revision Description of Revision Prepared By Checked By Approved By

QHSE QHSE PCON MGMT

29/JAN/09 01 Approved for Use SHLittmann LHLehmann AAdeyemi GMolinaro
Combined with WI-SAI- ENG QHSE PCON MGMT
21/AUG/09 02 ENG-002-E JFCaron LHLehmann AAdeyemi GMolinaro
QHSE QHSE PCON MGMT
19/OCT/09 03 Added WBS 4.3 and Forms SHLittmann LHLehmann AAdeyemi GMolinaro
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WORK INSTRUCTION
Rev. 03 Date: 19/OCT/09
ENGINEERING PLANNING,
PROGRESS MONITORING, AND REPORTING
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Table of Contents
1. PURPOSE/SCOPE.................................................................................................................................... 4
2. REFERENCES .......................................................................................................................................... 4
3. DEFINITIONS ............................................................................................................................................ 4
4. ACTIVITIES/DESCRIPTION ..................................................................................................................... 5
4.1. GENERAL ............................................................................................................................................. 5
4.2. RESPONSIBILITIES ............................................................................................................................. 5
4.3. DOCUMENT PROGRESS REGISTER PREPARATION AND WORK BREAKDOWN STRUCTURE
DEFINITION..................................................................................................................................................... 7
4.4. ENGINEERING ACTIVITIES PLANNING ............................................................................................. 7
4.5. ENGINEERING PROGRESS MONITORING ....................................................................................... 7
4.6. ENGINEERING PROGRESS REPORTING ......................................................................................... 8
5. FORMS .................................................................................................................................................... 10
5.1. COST BREAKDOWN STRUCTURE (FORM-SAI-PCON-003-E) ....................................................... 10
5.2. PROGRESS S-CURVES (ENGINEERING OVERALL) (FORM-SAI-PCON-005-E) .......................... 10
5.3. ENGINEERING PERFORMANCE (FORM-SAI-PCON-007-E) .......................................................... 10
5.4. ENGINEERING PROGRESS BY PHASES (FORM-SAI-PCON-009-E) ............................................ 10
5.5. ENGINEERING MANHOURS FORECAST OR STATUS (FORM-SAI-PCON-010-E)....................... 10
5.6. MASTER DOCUMENT REGISTER (FORM-SAI-ENG-006-E) ........................................................... 10
5.7. DOCUMENT PROGRESS REGISTER (FORM-SAI-ENG-030-E) ...................................................... 10
5.8. MEETING ATTENDEES (FORM-SAI-ADM-011-E) ............................................................................ 10
5.9. MINUTES OF MEETING (FORM-SAI-ADM-015-E)............................................................................ 10
6. EXHIBITS/FLOWCHARTS...................................................................................................................... 10
6.1. EXHIBIT 1 – ENGINEERING PLANNING, PROGRESS MONITORING, AND REPORTING
FLOWCHART ................................................................................................................................................ 10
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WORK INSTRUCTION
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PROGRESS MONITORING, AND REPORTING
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1. PURPOSE/SCOPE
The purpose of this document is to define the planning of engineering activities, their progress
monitoring, and reporting.

This document shall be applicable for all projects with engineering activities performed by Saipem
America.

2. REFERENCES
2.1. PROJECT CONTROL (GL-COR-PCON-001-E)

2.2. PROJECT CONTROL STANDARDS AND REPORTS (STD-COR-PCON-001-E)

2.3. PROGRESS MEASUREMENT (WI-SAI-PCON-001-E)

2.4. PROJECT COST CONTROL (WI-SAI-PCON-002-E)

2.5. IDENTIFICATION AND NUMBERING OF COMPANY DOCUMENTS (WI-SAI-DSSM-002-E)

2.6. REVISION CONTROL (WI-SAI-DSSM-003-E)

2.7. ENGINEERING ACTIVITIES (GP-SAI-ENG-002-E)

2.8. SOFTWARE/HARDWARE POLICY (POL-SAI-ICT-004-E)

2.9. PROJECT MANAGER, PROJECT LEVEL, AND JOB NUMBER ASSIGNMENT (WI-SAI-
PROJ-003-E)

2.10. PREPARATION OF THE INITIAL PROJECT COORDINATION PLAN AND ORIGINAL

CONTROL BUDGET (WI-SAI-PROJ-005-E)

3. DEFINITIONS
3.1. Company: In the context of this document, Company shall be interpreted as Saipem America
Inc.

3.2. AHWP: Actual Hours Work Performed (spent manhours).

3.3. BHWP: Budget Hours Work Performed or Earned Value (EV).

3.4. BHWS: Budget Hours Work Scheduled (budgeted manhours).

3.5. DPR: Document Progress Register.

3.6. EM: Engineering Manager.

3.7. MDR: Master Document Register.

3.8. PCM: Project Control Manager.

3.9. PI: Productivity Index.

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3.10. PP: Physical Progress.

3.11. PLE: Planning Engineer.

3.12. PM: Project Manager.

3.13. PSL: Project Specialist Leader.

3.14. WBS: Work Breakdown Structure which organizes project scope of work.

3.15. Weight Values: Values used to evaluate deliverables hierarchy within WBS.

4. ACTIVITIES/DESCRIPTION
4.1. GENERAL

Engineering activities are defined per General Procedure Engineering Activities (GP-SAI-
ENG-002-E).

All Engineering documents must be produced in accordance with Work Instructions

Identification and Numbering of Company Documents (WI-SAI-DSSM-002-E) and Revision
Control (WI-SAI-DSSM-003-E).

Project Control activities are defined per the following documents:

• Project Control (GL-COR-PCON-001-E).
• Project Control Standards and Reports (STD-COR-PCON-001-E).
• Progress Measurement (WI-SAI-PCON-001-E).
• Project Cost Control (WI-SAI-PCON-002-E).

The main steps of Project Control for Engineering activities are:

• To prepare the DPR and define the WBS.
• To plan engineering activities and define a baseline.
• To monitor project progress and update project schedule.
• To report project progress internally by PCM and externally to the Client by the PM.

4.2. RESPONSIBILITIES

It is the ultimate responsibility of the Project Control Manager to plan engineering activities
and to monitor and report their progress but this process involves the whole Project Team.
Every Project Team member’s role and responsibilities are described below. Some of the
described roles may be grouped or eliminated according to the project complexity as defined
in Work Instruction Project Manager, Project Level, and Job Number Assignment (WI-SAI-
PROJ-003-E).

4.2.1. Project Control Manager (PCM)

The Project Control Manager shall:

• Define the guidelines to plan the project; and
• Collect and analyze all information to develop the WBS and reporting system,
with the support of the Project Control Department and all project team members.
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4.2.2. Planning Engineer (PLE)

The Planning Engineer shall:

• Suggest the best way to plan the project to the Project Manager, taking into
account the Company and Contract requirements;
• Cooperate with project team members to implement the schedule and update
obtained data;
• Contribute in spreading the culture and the methodologies of project planning;
and
• Be under the Project Control Manager’s authority.

4.2.3. Project Cost Controller (PCC)

The Project Cost Controller shall:

• Be responsible for developing project cost control procedures, taking into
account both the contractual specifications and Company procedures;
• Participate in analyzing the trend of variations to costs and issue a report to the
PM and EM so that the EM shall undertake appropriate corrective actions; and
• Determine all the data to define the cash-flow (forecast and actual) in the
planning processes and record any contractual variation.

4.2.4. Project Manager (PM)

The Project Manager shall:

• Apply this document, customizing it according to project specifications and
contractual requirements issued by the Client;
• Approve the WBS, the baseline and the progress monitoring; and
• Issue the project progress report that shall be periodically sent to the Client, if
required.

4.2.5. Project Specialist Leader (PSL)

Each Project Specialist Leader involved in the project shall:

• Take part in the planning preparation giving his experience contribution in order
to define the required data in both quality and qualification. In particular, he shall
define the list of documents and shall evaluate the manhours required to issue
each document;
• Define and update the Document Progress Register; and
• Be responsible for planning the project at their level, as well as, ensuring that
activity scheduling is consistent with what is stated by the contract.

4.2.6. Engineering Manager (EM)

The Engineering Manager shall:

• Periodically review the project engineering progress and intervene if required.
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4.3. DOCUMENT PROGRESS REGISTER PREPARATION AND WORK BREAKDOWN

STRUCTURE DEFINITION

The preparation of the Document Progress Register and definition of the Work Breakdown
Structure must be performed per Work Instruction Preparation of the Initial Project
Coordination Plan and Original Control Budget (WI-SAI-PROJ-005-E) in accordance with the
following documents:
• Project Control (GL-COR-PCON-001-E).
• Project Control Standards And Reports (STD-COR-PCON-001-E).
• Project Cost Control (WI-SAI-PCON-002-E).
• Work Breakdown Structure (FORM-SAI-PCON-013-E).
• Cost Breakdown Structure (FORM-SAI-PCON-003-E).
• Master Document Register (FORM-SAI-ENG-006-E).
• Document Progress Register (FORM-SAI-ENG-030-E).

4.4. ENGINEERING ACTIVITIES PLANNING

4.4.1. Baseline Definition

In order to have a homogeneous basis to estimate the actual progress status of the
works, the PM with the support of Project Team, must establish relative weight
allotted to each document produced by Engineering. The weight of each
drawing/document shall be based on the estimated quantity of manhours required for
preparation.

The Document Progress Register forecast dates of each document shall be used to
plan the project initial schedule (baseline) by the Project Manager, the Planning
Engineer, or the Project Control Manager depending on project complexity and
organization.

4.4.2. Scheduling Software

The following scheduling software shall be used to plan the project progress:
• Primavera;
• Microsoft Project; or
• Other software can also be used if approved per Policy Software/Hardware
Policy (POL-SAI-ICT-004-E).

4.5. ENGINEERING PROGRESS MONITORING

4.5.1. General

Engineering Progress Monitoring must be performed according to Work Instructions

Preparation of the Initial Project Plan (WI-SAI-PROJ-005-E) and Progress
Measurement (WI-SAI-PCON-001-E).

To ensure that the project Engineering activities are progressing as planned, the
current progress status and trend shall be periodically reviewed (monthly as a
general rule) in comparison with the schedule and the following forms:
• Master Document Register (FORM-SAI-ENG-006-E).
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• Document Progress Register (FORM-SAI-ENG-030-E).

The Document Progress Register is a key tool in obtaining confirmation about the
engineering progress status and it is indispensable for assessing the work progress
trend. The progress status and an issue forecast shall be reported in the Document
Progress Register that shall be constantly kept up-to-date, in consideration of the
design development.

In order to correctly monitor the engineering progress, the following data needs to be
collected regularly and calculated by the Project Manager, the Planning Engineer, or
the Project Control Manager depending on project complexity and organization.

4.5.2. Budget Hours Work Scheduled (BHWS)

Budget Hours Work Scheduled are the total budgeted manhours split by WBS,
according to Work Instruction Preparation of the Initial Project Plan (WI-SAI-PROJ-
005-E).

4.5.3. Actual Hours Work Performed (AHWP)

Actual Hours Work Performed are the total amount of spent manhours, split by WBS.

Spent manhours can be collected from Company software “Enterprise e-TIME”.

4.5.4. Physical Progress (PP)

Physical Progress is related to Budget Hours Work Performed (BHWP) - also called
Earned Value (EV) - as per the following formula:

PP = BHWP / BHWS (budgeted manhours scheduled)

4.5.5. Productivity Index (PI)

The Productivity Index is calculated between the spent manhours, the foreseen ones,
and the physical progress as per the following formula:

PI = BHWP (budgeted manhours performed) / AHWP (spent manhours)

PI = (BHWS (budgeted manhours scheduled) x PP) / AHWP (spent manhours)

When PI is inferior to 1, it means that engineering is spending more manhours than

scheduled.

When PI is superior to 1, it means that engineering is spending less manhours than

scheduled.

4.6. ENGINEERING PROGRESS REPORTING

4.6.1. Project Progress Internal Reporting

The normal project reporting cut-off date is every end of month. The Project
Manager, the Planning Engineer, or the Project Control Manager, depending on
project complexity and organization, shall then collect all the information and issue
the monthly engineering progress report which gives a clear situation regarding the
achieved progress and the trend maintained.
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The main data to be reported at cut-off dates are the following:

• Internal Spent Manhours: Collected as described in Section 4.5.3, the manhours
are then reported per:
− Engineering Manhours Forecast or Status (FORM-SAI-PCON-010-E).

• The Estimation to Complete Manhours: Total manhours foreseen to complete

the activity or discipline estimated by the Engineering Manager. The estimated
data is reported as per:
− Engineering Performance (FORM-SAI-PCON-007-E).
− Engineering Progress By Phases (FORM-SAI-PCON-009-E).
• Physical Progress: Physical Progress split by WBS shall be approved by the
Engineering Manager and reported as per:
− Progress S-Curves (Engineering Overall) (FORM-SAI-PCON-005-E).

The monthly engineering progress data shall be used to activate corrective actions
when needed or as lessons learned for future projects.

4.6.2. Project Progress External Reporting to Client

The periodicity for the project engineering activities reporting is usually agreed with
the Client and included with contract documentation.

The Project Manager, the Planning Engineer, or the Project Control Manager,
depending on project complexity and organization, supported by project team
members if required, shall review and report the following information:
• General summary: The overall work progress status is briefly analyzed;
• Remarks: The major events of the months, such as: meetings, shifting of dates,
etc.;
• Criticalities: The conditions, affecting or likely to affect the regular work progress
and the fulfillment of the final objectives, are indicated;
• Corrective actions: The main corrective actions undertaken, or to be undertaken
in order to solve current or potential criticalities, are highlighted;
• Summary of work progress status: The comparison among the new scheduled
dates and those initially forecasted in the baseline shall be reviewed;
• Status of activities: A list of completed activities shall be reviewed, as well as, a
forecast of all activities still to be completed;
• Document Progress Register, “S-curves” and histograms; and
• Conclusion: Any discrepancy between the current situation and the scheduled
one shall be reported and explained, with reference to Area and Discipline.

The project monthly report is usually presented by the PM as per contract

requirements during a meeting documented using the following forms:
• Meeting Attendees (FORM-SAI-ADM-011-E).
• Minutes of Meeting (FORM-SAI-ADM-015-E).
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5. FORMS
5.1. WORK BREAKDOWN STRUCTURE (FORM-SAI-PCON-013-E)

5.2. COST BREAKDOWN STRUCTURE (FORM-SAI-PCON-003-E)

5.3. PROGRESS S-CURVES (ENGINEERING OVERALL) (FORM-SAI-PCON-005-E)

5.4. ENGINEERING PERFORMANCE (FORM-SAI-PCON-007-E)

5.5. ENGINEERING PROGRESS BY PHASES (FORM-SAI-PCON-009-E)

5.6. ENGINEERING MANHOURS FORECAST OR STATUS (FORM-SAI-PCON-010-E)

5.7. MASTER DOCUMENT REGISTER (FORM-SAI-ENG-006-E)

5.8. DOCUMENT PROGRESS REGISTER (FORM-SAI-ENG-030-E)

5.9. MEETING ATTENDEES (FORM-SAI-ADM-011-E)

5.10. MINUTES OF MEETING (FORM-SAI-ADM-015-E)

6. EXHIBITS/FLOWCHARTS
6.1. EXHIBIT 1 – ENGINEERING PLANNING, PROGRESS MONITORING, AND REPORTING
FLOWCHART
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EXHIBIT 1
ENGINEERING PLANNING, PROGRESS MONITORING, AND REPORTING
FLOWCHART

FORM-SAI-PCON-003-E
START
Cost Breakdown
Structure
GP-SAI-ENG-002-E
GL-COR-PCON-001-E
Engineering
Revision Control
Activities
FORM-SAI-ENG-006-E
Master Document
Register

WI-SAI-PROJ-005-E PM/PLE/PCM
STD-COR-PCON-001-E
Preparation of the Prepare DPR FORM-SAI-ENG-030-E
Revision Control
Initial Project & define WBS Document Progress
Register

WI-SAI-DSSM-002-E PM/PLE/PCM
Identification and Project
Plan WI-SAI-PCON-001-E
Numbering of Schedule
Engineering Progress Measurement
Company (baseline)
activities
Documents

PM/PLE/PCM
WI-SAI-DSSM-003-E Monitor WI-SAI-PCON-002-E
Revision Control Engineering Project Cost Control
activities
progress

MONTHLY
FORM-SAI-PCON-003-E
POL-SAI-ICT-004-E PM/PLE/PCM Cost Breakdown
Software/Hardware Report Structure
Policy Engineering FORM-SAI-PCON-009-E
activities Engineering Progress By
progress Phases
FORM-SAI-PCON-005-E
Progress S-Curves
WI-SAI-PROJ-003-E
Project Manager and FORM-SAI-PCON-010-E
Job Number Engineering Man-Hours
Assignment Forecast or Status
FORM-SAI-PCON-007-E
Engineering
Performance

PROJECT MONTHLY
REPORT

FORM-SAI-ADM-015-E
Minutes of Meeting
FORM-SAI-ADM-011-E
END Meeting Attendees