Standardizing and

Improving Best Practices in

Estimating and Planning

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Introduction
Estimating and planning lay the
foundation for budgeting, scheduling and
managing shutdowns and capital
projects. Achieving consistent, quality
estimates is critical to business success.

Copyright, 2007 © InterPlan Systems

Estimating and Planning
Studies
• Conducted by Mr. W.G. (Buddy) Jacks,
President, Industrial Planning Consultants
• Spans over 7 years and more than 1,200
planners
• Show great variances in total
duration/manhours and number of tasks
(definition)

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Typical Variance in Planning
the Exact Same Job
• 153 participants across 7 workshops
• Total Duration:
– Min: 4 hours
– Max: 38 hours

• Total # tasks:
– Min: 3 tasks
– Max: 26 tasks

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Copyright, 2007 © InterPlan Systems
Manual Process
• The problem:
– Inconsistent quality (manhour estimates)
– Inconsistent approaches (best practices)
– Inconsistent definition (level of detail)
– Poor mechanism for capturing history
– Poor mechanism for improvement

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The Goal
• Standardization
– Define best practices for job execution
– Define desired level of detail

• Quality
– Develop estimating norms
– Capture and review planned versus actual for
completed shutdowns / projects to update
norms

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Types of Work
• Routine (frequently performed)
– Vessel Cleaning and Inspection
– Servicing instruments, valves, etc.

• Non-Routine (infrequently performed)

– Replacing piping
– Equipment change-outs / modifications
– Non-routine vessel repairs

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Templates (for Routine Work)
• Libraries of schedule fragnets including:
– Tasks
– Durations
– Resource Loadings / Manpower
– Schedule Logic

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Example of a Template

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 Template Libraries
Implementation
Template #1

Template #2
Project Management
Planner Search Copy
Template #3 System (Initial Plan)

Template #4

Customize
Project Management
System (Final Plan)

Execute Project,
Review Planned vs. Actual,
Update norms in *all* applicable templates

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Template Libraries - Pros
• Can define best practices
• Can define the desired level of detail
• Captures estimating norms
• Can be updated to reflect ongoing
company experience

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Template Libraries - Cons
• Not suitable for non-routine work
• Usually require manual customization to
suit the current project
• Prone to copy and paste syndrome
• Can get unwieldy as the library grows to
encompass multiple work scenarios
– Onerous to update norms / best practices
across multiple template scenarios

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“Meta” Templates (Routine
and Non-Routine Work)
• Scalable with estimating tables or
formulas to derive estimates dynamically
based upon planner supplied parameters
• Can encompass multiple work scenarios
keeping the library small and
manageable

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 Example of a “Meta” Template
(Part 1 - Structure)

Variable Scope

Define Best Practices

Scalable Estimates
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Example of a “Meta” Template
(Part 2 - Structure)
Variables allow estimates to be scaled:

Variables could be multiple choice or

unbounded quantities:

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Example of a “Meta” Template
(Part 3 - Structure)

Logic is “super tied” to

accommodate all scenarios

Formulas scale values according to

planner supplied parameters

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Example of a “Meta” Template
(Part 4 - Interface)
Planners just answer multiple choice questions
or input quantities and dimensions

System builds customized

estimate dynamically
(which can be exported to the
Project Management System)

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“Meta” Templates
Implementation
Project Management
Planner Parameters “Meta” Template Customized Plan
System (Final Plan)

Execute Project,
Review Planned vs. Actual,
Update norms in *single* “Meta” template

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“Meta” Templates - Pros
• Can define best practices
• Can define the desired level of detail
• Captures estimating norms in a dynamic,
scalable format
• Can be updated to reflect ongoing company
experience
• Suitable for routine and non-routine work

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“Meta” Templates - Cons
• Updating estimating norms requires
strong math skills

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Big Picture
Estimating Norms (R | N) Best Practices (R | N)

Manual Process
Book

Templates
Book

“Meta” Templates

• Icons indicate where the information lies in the indicated process. When
the information is retained in the tool (hammer icon), it is available to all
planners at the time they need it.
• R | N indicates Routine versus Non-routine work
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Conclusion
• Manual planning / estimating is a poor process for
standardizing best practices across an organization
or systematically improving norms
• Template libraries offers a means for standardizing
best practices and improving norms, but are prone
to error and could be difficult to manage/maintain
long term. Not practical for non-routine work.
• “Meta” templates offers a means for standardizing
best practices and improving norms that is practical
for all types of work and less error prone than other
processes.

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