Controlling Project Schedules with PEPs

Engineering Encyclopedia
Saudi Aramco DeskTop Standards
Controlling The Project Schedule
Note: The source of the technical material in this volume is the Professional
Engineering Development Program (PEDP) of Engineering Services.
Warning: The material contained in this document was developed for Saudi
Aramco and is intended for the exclusive use of Saudi Aramco’s employees.
Any material contained in this document which is not already in the public
domain may not be copied, reproduced, sold, given, or disclosed to third
parties, or otherwise used in whole, or in part, without the written permission
of the Vice President, Engineering Services, Saudi Aramco.
Chapter : Project Management For additional information on this subject, contact

File Reference: PMT30103
Engineering Encyclopedia Project Management
Content Page
PURPOSE OF PROJECT PLANNING AND SCHEDULING.............................................. 1

Effective Management Control Through Planning..................................................... 2
Evaluate Performance Against Project Baseline............................................. 3
Establish Trends ............................................................................................ 4
Actions to Enhance Planning Performance..................................................... 4
Schedule Control During Engineering and Procurement............................................ 5
Project Milestone Schedule............................................................................ 5
Drawing Control............................................................................................ 6
Purchase Requisition / Purchase Order Control.............................................. 6
Schedule Control During Construction...................................................................... 6
Project Milestone Schedule............................................................................ 6
Detailed Logic Network Diagrams................................................................. 7
Summary Level Network Diagram ................................................................ 7
The Master Contracting Plan..................................................................................... 7
CONTROLLING THE PROJECT SCHEDULE USING THE.............................................. 8
PROJECT EXECUTION PLAN........................................................................................... 8

Description of Project Execution Plan Contents ........................................................ 9
Approval Sheet.............................................................................................. 9
Project Summary ........................................................................................... 9
Contracting Plan ............................................................................................ 9
Material Procurement Plan ...........................................................................10
Project Cost and Funding..............................................................................10
Project Execution Sequence..........................................................................11
Project Milestone Schedule...........................................................................11
Project Organization and Interfaces ..............................................................11
Areas of Concern..........................................................................................11
Others...........................................................................................................11
Applying the Project Execution Plan as a Control Tool ............................................12
TRACKING SCHEDULE PERFORMANCE USING THE PROJECT ...............................13

COMPLETION SCHEDULE ..............................................................................................13

Introduction to the Project Completion Schedule Report ..........................................13
Projects to be Reported ............................................................................................13
Frequency & Report Period......................................................................................13
Approvals and Responsibilities ................................................................................14
Project Completion Schedule Information ................................................................14
Detailed Engineering ....................................................................................14
DC Material Procurement.............................................................................15
Construction Progress...................................................................................16
Major Project Milestones..............................................................................16
WORK AID: GUIDELINES FOR PREPARING A PROJECT MILESTONE
SCHEDULE........................................................................................................................18
GLOSSARY........................................................................................................................19
ADDENDUM......................................................................................................................21

PURPOSE OF PROJECT PLANNING AND SCHEDULING
Project scheduling, and project planning in general, is an integral part of project management and
controls. The planning process entails:
• Establishing a plan that is specific to the project goals and objectives

• Executing the plan to achieve the objectives
• Monitoring progress against the plan
• Taking corrective action when necessary
The essentials of planning and schedule control are outlined in the following paragraphs:
• The principal element of the project planning function is the Project Execution
Plan (PEP), which is based on the intended project execution sequence. The
PEP, which is prepared at the beginning of the project, provides the guidelines
that are used in the development and implementation of other detailed plans.
• The second level of planning and scheduling control is the production of
detailed CPM networks, project milestone schedules, materials arrival
schedules, etc. These items give recognition to the PEP and the
interrelationships among project activities by the contractors, equipment
manufacturers, material suppliers, subcontractors, the proponent, and others.
By relating all the activities in a logical sequence, the work is scheduled so that
the best overall completion plan is obtained. This schedule is the single most
important tool that Saudi Aramco has for providing visibility and exercising
control. The schedule should be:
– Detailed to provide a clear understanding of the critical and subcritical
paths covering all project elements
– A detailed step-by-step prediction of how the project will be executed
consistent with the abilities to track all functions and to measure
performance
– Consistent with the project budget, reflecting productivity forecasts,
manpower requirements, and realistic durations
Fundamentally, there are two categories of planning and scheduling:
1. Requirements that establish the content of the schedules based on job

specifications, division of responsibility, administration, procurement, tracking,
cost control, and monitoring.
Saudi Aramco DeskTop Standards 1

2. Techniques that include the instruments that are used to provide scheduling
outputs such as CPM networks, time-scaled summary level networks, computer
or manual analysis reports, manpower loading charts, and planned progress
curves.
Ultimately, the Saudi Aramco Project Manager (PM) has the responsibility to make sure that
planning and schedule control is fully implemented on large complex projects. The SAPMT
usually includes a Planning/Scheduling Engineer (PSE) devoted full time to schedule control and
appraisal. For projects that have no PSE, these duties should be assigned to one of the Project
Engineers. In either case, the Project Support Services Division can provide qualified personnel
for consultation on schedule related matters through periodic visits to the contractor's
engineering and/or field offices.
Effective Management Control Through Planning
Although the words “planning” and “scheduling” have been used interchangeably, they have
different meanings in project management applications. Planning is the process of breaking a
project down into specific work elements and of defining the sequence in which these work
elements should be performed for optimum cost and time performance. Scheduling is the
process of defining the time frames in which each work element should be performed, thus
determining the start and completion dates of a project.
Effective planning and scheduling, along with cost control and progress reporting are four major
elements that are used to ensure optimum performance in the execution of a project. The
planning and scheduling functions are disciplined approaches to project management. Without
planning and scheduling implementation, there can be no effective controls. The proper
implementation involves establishing a PEP and detailed schedules with specific objectives,
working the plans to achieve them, and taking corrective actions if deviations from the plan
jeopardize the schedule.
The application of planning and scheduling techniques on a project ensures that the project work
is properly scoped, that the sequence of activities is established, and that the required resources
are assigned. The application of planning and scheduling techniques would make the project
proceed in an orderly fashion without experimentation and constant changes in the work
sequence.
There are four basic requirements that are necessary in implementing an effective planning
function:
1. An experienced organization with appropriate support services

2. A well-defined planning and control system

3. The implementation of integrated cost and schedule functions

4. Management support and "buy-in" from all participants
During the conceptual phase of a project, approximate project duration and completion dates are
developed by the Operations Proponent, Facilities Planning Department, and the Project
Management Departments. At Project Proposal completion, a reliable and definitive PEP should
be available. The Project Manager should satisfy himself that all of the milestone dates and
predicted completion dates are realistic, achievable, and consistent with the cost/schedule criteria
that were established for the project.
Due to the implementation of detailed logic networks, resource loading, and the calculation of
start and finish dates, the planning function helps to validate project completion dates. The
scheduling function helps to identify any unrealistic durations or dates for individual activities,
major milestones, and/or project completion dates.
Evaluate Performance Against Project Baseline
Once the detailed plans are developed, the evaluation of actual performance against the project
baseline can be initiated. This process includes the following tasks:
• Tracking actual performance against the baseline

• Identifying actual and potential problems
• Evaluating the impacts of the problems
• Recommending and implementing corrective solutions
• Identifying opportunities to enhance performance
The project's planning staff is generally regarded as an information-gathering and dissemination

service. They are responsible for collecting and analyzing actual performance data in order to
identify any actual or potential deviations from the project baselines. The Project Engineer
should continually use planning documents and the actual status to assess the impacts on project
performance and to make timely decisions that keep the project on track.
There are a variety of ways to show the actual project status, the culmination of which is the
development of project status reports from which project control strategies can be implemented
by the management. The actual project performance is constantly compared with the project
baselines. The exceptions are identified and analyzed. Corrective actions are implemented to
ensure project objectives are achieved.

Establish Trends
The implementation of an effective planning function on a capital project helps to establish

performance trends during the execution phase. By instituting systems that accurately assess the
project status and monitor the schedule performance, the Project Engineer can identify the
project trends. When the actual project data is compared with the project baselines, any
deviations will become evident. By analyzing these deviations and identifying their causes, the
Project Engineer can determine the underlying trends. Once the trends are identified, the Project
Engineer can implement corrective actions to keep the project on track. The trends on a typical
project can be:
• Poor productivity
• Delays in receipt of vendor drawings
• Shortages of qualified personnel
• Rework and misfit problems
• Schedule delays and missed milestones
• Schedule conflicts among contractors
• Excessive work scope changes
A good planning function should be able to identify these trends early enough so that the
SAPMT can institute necessary actions prior to any major impact on the project's overall
performance.
Actions to Enhance Planning Performance
The SAPMT, working with the contractors, should strive to improve the planning performance
on a Saudi Aramco project. The improvement of the planning performance has two major
benefits:
1. Improved planning and control information

2. Improved forecasting of performance
As the project progresses from the Project Preliminary Engineering Phase to more definitive
execution phases, the need for an effective planning function increases. By improving the
planning function, project management is assured of accurate project data for prudent decision
making.

To achieve enhanced planning performance, it is essential that the contractors have strong
planning capabilities which are supported by an effective planning and control system. The
contractor's project control staff should be experienced and knowledgeable in modern planning
and scheduling techniques. The SAPMT and the contractors should take the following actions in
order to enhance the planning performance on Saudi Aramco projects:
• Early and complete definition of the project scope

• Compliance with the PEP
• Development of a Work Breakdown Structure
• Implementation of resource loading and leveling techniques
• Close monitoring of critical and near-critical path activities
• The receipt of "buy-ins" from all project participants
• The establishment of accurate progress reporting techniques
• Making the planning system responsive to changes
• Constantly seeking areas to enhance project performance
Schedule Control During Engineering and Procurement
During engineering—whether it is detailed or preliminary/project proposal development — the

steps necessary to control the project schedule are the same.
Project Milestone Schedule
The Project Milestone Schedule is used for the entire duration of a project. The Project
Milestone Schedule includes milestones for each phase of the project; therefore, it is one of the
schedule control documents that are used during the engineering phase. The Project Completion
Schedule is the control schedule and it is discussed later.
The Project Milestone Schedule identifies each major activity within the overall project time
frame. The format for preparing the Project Milestone Schedule (Addendum 1) is that of a bar
chart. The project activities that are shown on the Project Milestone Schedule include project
development and design milestones, major equipment procurement, and the construction phase.
It is normally developed by Saudi Aramco's Project Scheduling Engineer.

Drawing Control
The Drawing Control is the primary document that is used during the engineering phase to
understand schedule and engineering progress. The Drawing Control (Addendum 2) must define
every drawing and specification that needs to be produced to complete the scope of work. Many
contractor’s Drawing Controls may also define the other deliverables, which gives the Project
Engineer a complete understanding of the deliverables within one document.
As a result, the Drawing Control is a powerful control tool that should be studied by the Project
Engineer. The Project Engineer should insist that the contractor accurately and consciously
update the Drawing Control on a regular basis.
It is important for the Project Engineer to insist that the contractor identifies the man-hours that
are required to complete each of the deliverables when the updates are completed. With this
information, the Project Engineer can assess the man-hours that are required to complete the
work. He can compare the required man-hours with the remaining service order man-hours.
Obviously, this is a great control tool.
Purchase Requisition / Purchase Order Control
During detailed engineering, the Project Engineer has the added responsibility of ordering
materials. In order to control the schedule of materials during detailed engineering, the
contractor prepares a purchase requisition control log. He also prepares a purchase order control
log. Refer to Module 5 for more details on these control tools. The purpose of these control
tools is to assure that every activity during the procurement process is scheduled for a specific
date . The actual date is tracked and compared to the plan. This comparison is extremely
important because the delivery of the materials at the site will be determined by the Project
Engineer’s actions at the early stages of the project. If the project team and contractor
consistently miss the planned dates, the Project Engineer should take a closer look at the plan
and he should take the appropriate action. It may be absolutely essential that the dates as
planned must be kept and personnel adjustments may be necessary.
It is not necessary to prepare a detailed logic network for engineering. Engineering does not lend
itself to this type of control document. The two documents discussed above are completely
adequate for the proper control of engineering activates .
Schedule Control During Construction
The Project Milestone Schedule also identifies project milestones for the construction phase;
therefore, it is a control tool for the construction phase.

Detailed Logic Network Diagrams
In order to properly control schedule for the construction phase, the Project Engineer should
insist that a Detailed Logic Network Diagram is prepared by the Construction Contractor. The
Detailed Logic Network Diagram should be a Critical Path Method (CPM) diagram. The level
of detail that is needed for the CPM depends on the complexity of the project. The Project
Engineer should prevent the contractor from preparing a CPM that is too complex to be analyzed
or understood. A CPM that is too complex is useless and it is a waste of money to prepare. The
CPM can always be expanded later when additional details become available. Another useful
technique is to expand certain activities outside the CPM if additional details would be helpful to
understand a particular set of activities. This technique allows better control the schedule.
Detailed Logic Network Diagrams are constructed to show the order in which the contractor
proposes to carry out the work and to indicate the restrictions of access and availability of work
areas, and the availability and use of manpower, material and scheduling, coordinating and
performing the work under contract (including all activities of subcontractors, equipment
vendors and suppliers).
Summary Level Network Diagram
The Detailed Logic Network Diagram is summarized in a Summary Level Network Diagram.
Usually, the Summary Level Network Diagram is prepared first; however, it usually requires
some adjustments after the Detailed diagram is prepared. The Summary Level Network Diagram
is in the form of a time-scaled summary CPM. The network consists of the major project
development, engineering, procurement and construction activities to be performed (usually 50 -
200 activities), including durations, major constraints, and inter-dependencies. The Summary
Level Network Diagram establishes the control points that are reflected in the Project Milestone
Schedule. The Summary Level Network Diagram also provides overall schedule visibility with
regard to the Detailed Logic Network Diagram.
The Master Contracting Plan
The Master Contracting Plan defines all of the contracts that are required to accomplish a
particular project or ER. The Master Contracting Plan is approved by the Services Review
Committee (SRC). As each contract in the Master Contracting Plan is ready to be awarded, the
SRC is advised of the recommended successful bidder and it is asked to approve the
recommendation in reference to the approved Master Contracting Plan. In this manner, the SRC
has the ability to oversee the consistency of the company contracting strategy and policy.
The Master Contracting Plan preparation should be coordinated with the Contracting
Representative during the development of the PEP.

CONTROLLING THE PROJECT SCHEDULE USING THE

PROJECT EXECUTION PLAN
The Project Execution Plan defines the SAPMT’s plans to execute the project. A PEP on a Saudi
Aramco Project must have the following contents as described in SAEP-12 (Addendum 3):
1. Project Summary
2. Contracting Plan
3. Material Procurement Plan
4. Project Cost and Funding
5. Project Execution Sequence
6. Project Milestone Schedule
7. Project Responsibility Matrix
8. Project Interface/SAPMT Personnel
9. Areas of Concern
10. Exhibits
In addition to the above contents, the PEP must have two additional sheets in the front, namely:
1. Approval Sheet
2. Revision Control
Depending upon the size, complexity, and execution strategy, additional sections can be added to
a PEP. If the Project Manager adds other sections to a PEP, he must demonstrate that the
additional sections are unique and that they are as important as the other sections. The Project
Managers may consider any of the following additional sections depending upon the unique
characteristics of the project:
• Environmental Plan
• Quality Plan
• Safety Plan
• Technology and Process Licenser Information
• Project Construction Execution Strategy
• Project Controls Plan

Description of Project Execution Plan Contents
Approval Sheet
Each PEP must have an approval sheet with signatures from the Project Manager to the final
approval of the Vice President, Project Management. This document is intended to get
commitment and approval from various management levels of the Saudi Aramco Project
Management Organization and the project Proponent.
Project Summary
The Project Summary provides a brief synopsis and the objectives of the Project. The following
items are incorporated into the Project Summary:
Project Overview - It summarizes the purpose of the work and explains why it is being done
(e.g., to increase production capacity of a plant by 100,000 barrels/day).
Design Basis - It provides a synopsis of how the work is to be accomplished by summarizing the
project's basis of design as described in the current scoping paper (e.g., to increase production by
expanding existing facilities or by constructing a new plant).
Project Scope - It briefly describes what is to be accomplished by the project and the physical
facilities that are being built, demolished, revamped, etc. This information summarizes the work
as described in the current Design Basis Scoping Paper and/or in the Project Proposal scope of
work.
Contracting Plan
A contracting plan is a set of interrelated contracts or amendments that are prepared for each
proposed contractor. The contracting plan is the result of an analysis and evaluation of the
various contracting alternatives for the work or the interrelated work to be contracted. The
contracting plan is tailored to the specific work needs of each contract or amendment. The
contracting plan takes into account the economics of various contracting alternatives and it
assesses scheduling, operating costs, influences of location, type of work, and size of the work in
order to develop a recommended course of action. Alternative contracting routes, which could be
used if market conditions or other factors preclude using the preferred route, should also be
considered.
The basic contracting plan should accomplish the following:
• Provide a concise description of work to be contracted.

• Provide an analysis of each contract request for each interrelated series of
contract requests, including alternatives.

• Provide the justification for the proposed method of contract procurement,

including an explanation of the method of contractor screening to develop a
slate of bidders.
• Present a contract procurement schedule, which sets forth all contracting
activities through award.
• Appropriate contracting milestones in procuring services of various contractors:
- Expenditure Request Approval (ERA)
- Preparation and Issuance of Bid Packages
- Contract Award
- Mechanical Completion
- On-Stream
• Determine the type of contract to be used and whether the contractor will be
permitted to subcontract portions of the work.
• Provide written documentation that supports all of the above. If applicable, an
overall economic analysis in support of the proposed contract type, schedule,
and cost estimate should be included.
The actual amount of data that is obtained, analyzed, and evaluated for each contracting plan
depends on the size, schedule, and complexity of the work to be contracted. For large contracts,
the amount of detailed information required is usually extensive.
Material Procurement Plan
The Material Procurement Plan discusses major considerations concerning project materials and
their procurement and movement. It should state the proposed procurement and traffic
responsibilities of Saudi Aramco and the contractor. Details of the items are included in Module
5.
The materials plan should prepare a listing of materials identified as "long lead items" and what
actions will be taken to ensure that their field-need dates will be met.
Project Cost and Funding
The PEP describes preliminary cost estimates and how they will be monitored and updated until
the time of Expenditure Request Approval (ERA). In addition, the PEP defines what procedures
will be implemented to ensure proper reporting and control of the Project Budget throughout the
life of the project.

The PEP provides an estimated timing and the amount of Preliminary Engineering Funds (TC-
68) that are required for items such as studies, specifications, soil investigations, and the Project
Proposal.
Project Execution Sequence
The Project Execution Sequence will be in the form of a time-scaled logic diagram depicting the
major activities and milestones required to successfully complete a project. Emphasis shall be
placed on the front-end engineering, materials, and Contracting Development Activities.
The Project Milestone Schedule will be in the form of a bar chart summarizing the major project
activities and project milestones including Contracting Development Activities.
Project Organization and Interfaces
This section addresses the responsibilities of SAPMT personnel and their interaction with others
involved in the project.
Areas of Concern
This section identifies project concerns where corresponding plans of action or solutions have
not been completely defined. Any unusual efforts or procedures that are required for successful
project completion should be included in this section. Also, any anticipated problems that may
affect operability, cost or schedule should be highlighted in this section.
Engineering Design - This section focuses on factors that can influence the project design (e.g.,
operations manning philosophy, operating reliability, capital versus operating costs, material
sourcing premiums, labor premiums, location constraints, etc.). Engineering Design also
provides action plans that address these concerns.
Construction - This section is used to promote factors that can influence the project construction
(e.g., site location, security, other projects, etc.). It provides action plans that address these
concerns.
Company Interface - This section summarizes other Saudi Aramco activities that will be
affected by the project (e.g., maintaining minimum production rates at existing facilities).
Others
This section addresses any other known factors that may impact efficient execution of the project
and provide plans that address the concerns (e.g., SAPMT staffing restraints).

Applying the Project Execution Plan as a Control Tool
The PEP is the primary planning document that is prepared by the SAPMT to execute the
project. As such, it represents the best thinking of the SAPMT about the project. The Project
Engineer should use the PEP to define the control tools that are needed to effectively control the
project schedule.
The PEP reflects the SAPMT's schedule plan to execute the project. The PEP becomes the
guideline document for all of the other detailed planning by the SAPMT. The SAPMT can apply
the project milestone schedule dates as control points when it measures the project performance.
As the project progresses, the project's actual performance is compared with the information that
is included in the PEP. Any significant deviations that may effect any of the major milestones or
the project on-stream dates are quickly identified and reported BY the SAPMT. Based on the
magnitude of any deviation, the SAPMT may initiate necessary corrective actions to correct the
problems and get the project back on schedule.
The PEP identifies the issues that are important to the project so that the Project Engineer can
define the quality of control required for each phase of the project.

TRACKING SCHEDULE PERFORMANCE USING THE PROJECT

COMPLETION SCHEDULE
Introduction to the Project Completion Schedule Report
A Project Completion Schedule (PCS) is the monthly progress plan for detail engineering,
material procurement, and construction. The PCS is prepared on Saudi Aramco Form 6974
(Addendum 4). The PCS is prepared immediately after approval of Prior Approval Expenditure
Request (PAER) funds or full ERA because the milestone dates are required for Monthly
Progress Update (MPU) and Budget Item Summary Report (BISR) reporting.
Projects to be Reported
The SAPMT prepares a PCS for all projects that are under the control of Engineering & Project
Management that have approved PAER or full ER funding. The Job Orders (JOs) within a BI
that fall under a single Project Manager normally constitute the scope of work, which is covered
by one PCS.
When the JO is assigned to another department or Project Manager, a separate PCS is prepared
and updated by the assigned Project Manager. These PCSs are submitted to the Project Manager
who is responsible for the BI and they are to be incorporated into the total project PCS. The
overall progress plan for total BI scope is reflected on one PCS and it is approved by the
responsible Manager.
Frequency & Report Period
The initial PCS (revision 0) should be submitted with the first MPU. If the original PCS
completion dates for detail engineering, material procurement, or construction experience a slip
but do not change the BI on-stream date, a revised PCS may be prepared at the discretion of the
Project Manager who is responsible for the BI.
A revised PCS must be prepared and submitted as soon as it becomes apparent that the BI on-
stream date will be impacted by one month or more. The revised PCS should be prepared in
support of the Project Change Request (PCR). Upon approval of the PCR by Project
Management and the Proponent, the responsible Project Manager should submit the revised PCS
along with the approved PCR to his Department Manager for approval.

Approvals and Responsibilities
All PCSs that are submitted should be approved at the appropriate level. Approvals are required
as follows:
• The Executive Director must approve the original PCS and revisions to the PCS
that affect the BI on-stream date of dependent BI/JO on-stream dates by one
month.
• The Department Manager must approve any revisions to the PCS that does not
affect a BI on-stream date or dependent BI/JO on-stream dates.
Project Completion Schedule Information
After the approval of ER funds, the PCS report is developed by the SAPMT to establish project
milestone dates. It is imperative that the information that is contained in the PCS is accurate
and realistic because the PCS establishes the project schedule baseline. The project status
reports, such as MPU reports, compare the actual performance to the information that was
established in the original PCS (unless it has been revised). The PCS revisions have to be
approved by the Project Management Executive Director and the Vice President.
The PCS contains projected percent completions in the following three major work categories of
a project:
• Detailed Engineering
• Direct Charge (DC) Material Procurement
• Construction
Detailed Engineering
The PCS report is a useful document for establishing the project's schedule baseline. Based on
the SAPMT approved engineering schedule, the planned detail engineering progress percent
completion's are shown on the PCS and the MPU. Every month, the actual progress is tracked
against the established progress baselines.
After the award of the engineering contract, the contractor is expected to develop detailed
engineering schedules. Based on the SAPMT-approved engineering schedules and the
associated progress curves, information that is related to detailed engineering planned percent
completion's can be listed in the PCS. To complete the detailed engineering plan section of the
PCS, the Project Engineer should enter the planned cumulative monthly progress for detail
engineering, i.e., all engineering accomplished under TC-60 funds. Both original and current
progress percentages must be shown on a revised PCS.

Detailed Engineering Progress - Engineering that is accomplished with TC-68 funds will not
be included as part of the detailed engineering in the PCS. The PCS starting point for progress
measurement of detailed engineering will be zero and it will begin the month following ER
approval. Detailed engineering includes all design office activities to be accomplished with TC-
60 funds that are required to achieve mechanical completion. Detailed engineering progress of
95% should be achieved no later than mechanical completion and will include completion of all
drawings, bid packages, requisitions, start-up and operating manuals, purchase orders, Saudi
Aramco Material System Specification (SAMSS) allocations, and other miscellaneous
engineering and related activities. The final 5% progress consists of design office activities that
are not easily measured and that do not impact mechanical completion, e.g., technical support to
construction and commissioning, preparation of as-built drawings (if done in the design office),
and the final design and procurement close-out activities, including demobilization of the
contractor engineering office. The activities that are performed during the last 5% of detailed
engineering are expected to not require more than 5% of the total engineering man-hour budget.
DC Material Procurement
The contractor's detailed engineering schedule is also used to identify information that is related
to procurement percent completions for DC materials. The cumulative monthly progress for DC
material procurement is indicated in terms of cumulative percentage complete.
For an initial PCS, the planned cumulative monthly progress percentages are entered in the
Original line in the appropriate month. Revised cumulative progress percentages are entered in
the Current line when updating the PCS.
Both original and current cumulative progress percentages are shown on the revised PCS. When
a revised PCS is issued, actual cumulative percentages complete are shown with an "(A)"
notation. In both the Original and Current Lines, the planned cumulative monthly progress
percentages are entered as calculated amounts. Those amounts are calculated as:
[(The percent of purchase requisitions that are released to purchasing) X 20%] +

[(The percent of purchase orders that are placed) X 40%] + [(The percent of Materials
"at site" in US dollars) X 40%]
The term "at site" means the material and equipment has arrived at the site in Saudi Arabia. The
formula shows that weighting is 20% for the purchase requisitions released, 40% for the number
of purchase orders placed, and 40% for the materials that are at the site.
DC material procurement activity begins with the SAMPT’s technical approval of the purchase
requisition and procurement is complete when the material is received at the site. Note that
technical bid evaluation and vendor drawing review/approval are engineering functions;
therefore, man-hours that are associated with these tasks are considered an engineering function
rather than a DC material-procurement function.

DC material procurement activities that are performed in an engineering office and are
considered as DC material functions include buying, expediting, and inspection. Traffic, which is
responsible for the transportation of material from a vendor/shop/harbor to the In-Kingdom port,
is also included if it is performed by the contractor.
The SAPMT tracks the actual schedule performance against the plan and identifies any
deviations so that it can implement actions to correct any delays.
Construction Progress
During the initial stages of the project, the construction schedule information is relatively scarce.
Although the major construction milestones have been established, the Project Engineer
completes the construction section of the PCS by using the Overall Project Schedule to develop
construction percent completions. The monthly progress for construction activity is indicated in
terms of cumulative percentage complete. In a PCS, all percentages are stated in whole numbers
and all dates are stated in numeric month and year.
For the initial PCS, the cumulative monthly progress percentages are entered in the Original line
in the appropriate month. When the PCS is updated, revised cumulative monthly progress
percentages are entered in the Current line. Both original and current cumulative progress
percentages are shown in the revised PCS. When a revised PCS is issued, actual cumulative
percentages complete are shown with an "(A)" notation.
The construction percent complete is a weighted physical measurement of construction progress.

The method of measuring progress varies depending on the type of project and the construction
discipline. Nevertheless, the percent complete must be accurate and quantified, i.e., based on the
quantify of equipment and/or material that is actually installed at the construction jobsite.
Major Project Milestones
The SAPMT must identify major project milestones to track the project schedule performance.
The major project milestones, which are listed below, are common to most capital projects.
Some projects may differ in the order that these milestones occur. The acronyms that are
shown are used to facilitate input into the PCS report. If additional milestones are added on the
PCS form, the SAPMT should assign an acronym to them.

ERA Expenditure Request Approval

DE-CA Design Engineering-Contract Award
LSTK-BPC Lump Sum Turnkey-Bid Package Complete
PB-BPC Procure Build-Bid Package Complete
PB-CA Procure Build-Contract Award
LSTK-CA Lump Sum Turnkey-Contract Award
CONST-BPC Construction Bid Package Complete
CONST-CA Construction Contract Award
CS Construction Start
MC Mechanical Completion
OS On-stream Date
Once these milestones dates are established, the SAPMT can track the actual schedule
performance. Any slippages from these milestones should be carefully monitored, and their
impact on the on-stream date must be analyzed and reported to the Project Engineer.

WORK AID: GUIDELINES FOR PREPARING A PROJECT MILESTONE

SCHEDULE
The Work Aid provides guidelines in preparing a PMS.
Guidelines:
1. Review the PMS for reasonableness of duration's for each project phase.
2. Review the PMS to assure that the critical milestones are identified.
3. Examine the materials lead times to assure that they support the contracting plan.
4. Examine the materials delivery times to assure that they support the construction
schedule.
5. Identify any critical path activities which require out of policy procedures to be used.
6. Examine the overall schedule to assure that it supports the project funding requirements.

GLOSSARY
AFE, Form 6035-A Authorization for Expenditure. An AFE provides approval to a

SAPMT to commit and expend TC-60 funds for funded projects.
BI Budget item. It is applicable to projects prior to TC-60 funding.
CONST-BPC Construction Bid Package Complete

CONST-CA Construction Contract Award
CS Construction Start
DE-CA Design Engineering-Contract Award
Drawing Control The primary document that is used during the engineering phase
to understand schedule and engineering progress.
ERA Expenditure Request Approval. It is used in connection with the
month and year in which approval is given by EXCOM or the
board of directors. An approved ER and AFE are the authority to
commit and expend Company resources for the purchase and/or
construction of a facility.
ERA Expenditure Request Approval

Form 56D An expenditure request form (Saudi Aramco Form 56D) that
details the capital costs by cost element and job order/phase.
JO Job Order. A specific part of a budget item.
LSTK-BPC Lump Sum Turnkey-Bid Package Complete

LSTK-CA Lump Sum Turnkey-Contract Award
MC Mechanical Completion
OS On-stream Date
PAER Prior Approval Expenditure Request.
PB-BPC Procure Build-Bid Package Complete

PB-CA Procure Build-Contract Award
PCR A Project Change Request is a document that is issued to reflect
changes to scope, cost, and/or schedule.
PEP Project Execution Plan

PSE Planning/Scheduling Engineer
Project Proposal It provides the final design basis from which an ER is developed
and from which all approved scope changes are measured.
TC-60 An account code that is used in connection with PAER or fully-

funded ER capital projects.
TC-68 An account code that is used in connection with project proposal

activities prior to partial or full funding.

ADDENDUM
1. Project Milestone Schedule

2. Drawing Control
3. SAEP-12
4. Project Completion Schedule

ADDENDUM 1: Project Milestone Schedule

ADDENDUM 2: Drawing Control

ADDENDUM 3: SAEP-12

ADDENDUM 3: SAEP-12

ADDENDUM 3: SAEP-12

ADDENDUM 3: SAEP-12

ADDENDUM 3: SAEP-12

ADDENDUM 3: SAEP-12

ADDENDUM 3: SAEP-12

ADDENDUM 3: SAEP-12

ADDENDUM 3: SAEP-12

ADDENDUM 3: SAEP-12

ADDENDUM 3: SAEP-12

ADDENDUM 3: SAEP-12

ADDENDUM 3: SAEP-12

ADDENDUM 3: SAEP-12

ADDENDUM 4: Project completion schedule

Controlling Project Schedules with PEPs

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Engineering Encyclopedia

Saudi Aramco DeskTop Standards

Controlling The Project Schedule

Chapter : Project Management For additional information on this subject, contact

PURPOSE OF PROJECT PLANNING AND SCHEDULING.............................................. 1

PROJECT EXECUTION PLAN........................................................................................... 8

Saudi Aramco DeskTop Standards

COMPLETION SCHEDULE ..............................................................................................13

Saudi Aramco DeskTop Standards

PURPOSE OF PROJECT PLANNING AND SCHEDULING

• Establishing a plan that is specific to the project goals and objectives

1. Requirements that establish the content of the schedules based on job

Saudi Aramco DeskTop Standards 1

Effective Management Control Through Planning

1. An experienced organization with appropriate support services

Saudi Aramco DeskTop Standards 2

3. The implementation of integrated cost and schedule functions

Evaluate Performance Against Project Baseline

• Tracking actual performance against the baseline

The project's planning staff is generally regarded as an information-gathering and dissemination

Saudi Aramco DeskTop Standards 3

The implementation of an effective planning function on a capital project helps to establish

Actions to Enhance Planning Performance

1. Improved planning and control information

Saudi Aramco DeskTop Standards 4

• Early and complete definition of the project scope

Schedule Control During Engineering and Procurement

During engineering—whether it is detailed or preliminary/project proposal development — the

Project Milestone Schedule

Saudi Aramco DeskTop Standards 5

Purchase Requisition / Purchase Order Control

Schedule Control During Construction

Project Milestone Schedule

Saudi Aramco DeskTop Standards 6

Detailed Logic Network Diagrams

Summary Level Network Diagram

The Master Contracting Plan

Saudi Aramco DeskTop Standards 7

CONTROLLING THE PROJECT SCHEDULE USING THE

Saudi Aramco DeskTop Standards 8

Description of Project Execution Plan Contents

The basic contracting plan should accomplish the following:

• Provide a concise description of work to be contracted.

Saudi Aramco DeskTop Standards 9

• Provide the justification for the proposed method of contract procurement,

Material Procurement Plan

Project Cost and Funding

Saudi Aramco DeskTop Standards 10

Project Execution Sequence

Project Milestone Schedule

Project Organization and Interfaces

Saudi Aramco DeskTop Standards 11

Applying the Project Execution Plan as a Control Tool

Saudi Aramco DeskTop Standards 12

TRACKING SCHEDULE PERFORMANCE USING THE PROJECT

Introduction to the Project Completion Schedule Report

Frequency & Report Period

Saudi Aramco DeskTop Standards 13

Approvals and Responsibilities

Project Completion Schedule Information

Saudi Aramco DeskTop Standards 14

[(The percent of purchase requisitions that are released to purchasing) X 20%] +