Professional Documents
Culture Documents
Managing Fast Track Projects: A Guide and Checklists
Managing Fast Track Projects: A Guide and Checklists
1
Reference
ECI Manual
The Fast Track Manual
A guide to Schedule Reduction for Client and
Contractors on Engineering and Construction
Projects
2
Agenda
Introduction
Different Project Stages
Concept Stage *
Development Stage
Definition Stage *
Design Stage *
Procurement Stage
Construction Stage *
Commissioning
Operation Stage
Key Issues
3
Introduction
Takes place more quickly than normal
Imposed deadline
Start of academic year
End of current lease
New legislation
5
Objectives
6
Key Success factors
The calibre of individuals and their working
relationships
7
Definitions
“A managerial approach to the achievement of early
project delivery, involving the application of innovations
in the management of construction procurement and
recent advances in the process that, bringing into play;
8
Definitions
“Design and construction are overlapped and different
sections of the plant are designed and built in parallel
with significant additional risk due to the links
between the design of different parts of the plant”
Turner, 1996
9
Fast Track Project Normal Project Project Stages
10
General Principles
Early Decisions
Experienced judgement and empowerment
Commence design before scope has been defined
Must accept wrong decisions
11
General Principles
Integrated Project Team
Main parties are combined into a single organization
and participate to the limit of their capability in
achieving the project objectives
Partnering
Benefits
Availability of additional expertise
Avoiding learning curve errors
Reduction in the overall workload
Commitment to the project definition and schedule
Design and construction developed together
12
General Principles
Additional Staff
More labour will be needed at peak period as a consequence of
scheduling activities in parallel
More management resource will be needed to deal with
interface and progress issues arising from inter-dependencies
between disciplines and between design, procurement and
construction
13
General Principles
Additional Risks
Decisions based on limited information,
cannot always be right first time
14
Advantages vs. Disadvantages
Advantages
Time to market
Commercial benefits
Short schedule (at least 10%)
Reduce time period for risk exposure
Disadvantages
Additional risk factors, very limited alternatives
Increased amount of PM, control, etc.
Cost increase (at least 10 – 20%)
15
Characteristics that Support
Strategy
Ownership
Client support
Project sponsor or champion
Stakeholder support and commitment
Organization
Project team needs to be simple, clear and devoid of
rigid hierarchy
If parent organization has a functional matrix
structure, the functional line must be subordinate to
the project management (task) line for the duration of
the project team
16
Characteristics that Support
Strategy
Desirable Team Characteristics
Honesty - Openness - Trust
Anticipation and avoidance of issues rather than waiting
for them to turn into problems
Mutual support - issue resolution, coaching
No blame culture
Access to all parties, no communication barriers
Lean organization, which aids communications and
speeds decision taking
Full time members
Authorized and empowered team members
Decision making on the spot without referring 17
Characteristics that Support
Strategy
People and Relationships
Technical competence
Decisiveness - self starter - can do - flexibility
Ability to forecast outcome and act accordingly
See the big picture
Willing to collaborate
Enthusiasm
Strong leadership
Managerial competence
Openness
18
Characteristics that Support
Strategy
Motivation
Create a team culture that avoid de-motivation of individuals who
are keen to succeed, but are prevented by the organization,
procedures,…..
Working part of a team, working equally hard and supporting
each other
Appoint key positions to individuals known to be good motivators
Early identification and removal of under-performing individuals
Team building and partnering sessions
Incentive/penalty clauses
19
Characteristics that Support
Strategy
Contractual arrangements
Achieve win-win situation
Pre-selected, preferred contractor
Reimbursable basis, with incentives
Lump-sum can also be used
Partnering
Up front agreement for payment for changes
and extras
20
Characteristics that Support
Strategy
Communications
More informal communication - face-to-face
Barriers should be removed - information flows
directly between the parties regardless of parent
organization and level of hierarchy
Responsibility for communication lies with the
individual who has made a decision
Frequency and progress meetings
Frequent and concise reporting
21
Concept Stage
Introduction
• Time to establish the concept is NOT
recoverable
• The opportunity to influence the outcome falls
off rapidly
People
• Stakeholders (ALL Should be identified)
• Integrated Team (Sponsor, Project Manager &
Senior Managers from different key players)
• Qualified personnel and motivated
22
Concept Stage
Scope
• Identify the real Goal and Objectives of the
client
• Identify Critical Success Factors (CSFs)
Strategy
• Fast tracking should be avoided unless the
client business benefits from early completion
significantly and outweigh risks
• Contract strategy addressed and outlined
23
Concept Stage
Business and PM Systems
Business Planning
process for weeding out poor projects
A smooth transition from business process to PM process
Stage gates process
Communications
Rapid transmission of information
IT systems
Publicity needs to be controlled
Risk Management
Cost and Risk
Determination of cost is difficult
Limited industry information on fast track projects
As accurate as possible estimate to help in the decision to adopt
a fast track strategy 24
Concept Stage
Logistics
Consideration to location of new asset in relation to:
Location of customers
Source and availability of feedstocks, component parts
Supply routes
Transport security and cost of supply and products
Existing assets
Workforce skills and availability
Also should consider:
Locations of parties involved
Client site - design office - contractor - contractors
and sub-contractor - suppliers
Sources of construction equipment - material - supply routes and
methods - Site access and controls
25
Definition Stage
Introduction
Lack of adequate definition has arguably been
responsible for more project failures
Expenditure of 25% of the total design effort
Design will need to be progressed on those
elements of the definition that are sufficiently
secure in order to feed information to construction
at the earliest practicable time…
Quality of project definition is very often a casualty,
with the potential for overruns of cost & time
26
Definition Stage
People
Clarity of objectives
• A clear focus on the objectives as agreed with stakeholders at
the concept stage must be maintained in order to aid in the
decision making process
Stakeholders
• The significant stakeholders early identified should continue to
be involved, consulted and advised
• Any other identified stakeholders should be involved ASAP
Integrated Team
• If the project has not so far been led by the project manager
who will be responsible for seeing it through to beneficial use,
that individual should be appointed at the beginning of the
definition stage 27
Definition Stage
People
Suitably qualified and experienced personnel
The team should not be selected only on their
technical and managerial competencies… but also
on their ability to:
• Overcome the obstacles and succeed in achieving the project CSFs
• Work with high level of uncertainty
• Work flexibly outside the normal work boundaries
• Co-operate with others for the benefit of the project
Project Scope
It is essential that the project team have a clear
understanding of what has been agreed by
stakeholders to be in the scope and what is outside
the scope
28
Definition Stage
Scope
For technical definition consider:
Fit for purpose (which may not be ideal sometimes)
Fastest to manufacture/construct rather than
cheaper
Reuse of design from existing assets
Modular design
Pre-fabrication of components
Minimization of project scope – lean construction
approach
Reduction in the number of processing steps in a
manufacturing plant
29
Definition Stage (Cont.)
Scope
Reduction in the size of the asset
Elimination of non-essential elements of the design
Standardization of layout or repeated units
Standard / off-the-shelf components
Simplification of design dependencies
Simplification of the build/construct/assemble
process
Avoidance of innovation/new/untried elements in
general
Early identification and ordering of long delivery
items
Constructability / Operability 30
Definition Stage (Cont.)
For the Overall Scope also consider:
33
Definition Stage
Project Management Procedures
Project control
Care is needed to ensure that previously rejected ideas are not
reintroduced at the definition stage
The use of Value Engineering / Constructability is essential to
enhance the decision making process
Project Communications
A good communications system need to be established and
maintained
This could include: intranet, Extranet, Internet, Chat rooms,
Bulletin Boards, Event Calendars, Data Base, etc.
The greater the level of integration in the sharing and re-use of
information the more that the communication system will
support the project and enhance success 34
Definition Stage
Project Management Procedures
Cost and risk
Cost
Approval of cost will have to be given on a lower level of
definition and with a wider tolerance on the estimate if the
project is to proceed unhindered by the supply of funds
A cost estimate to within plus or minus 10% will not be
obtained until the end of the design stage
It is recommended that a control estimate should be produced
once all the necessary details are known
During this stage it will be necessary to address the potential
cause of increased cost which may rise
35
Workshop 1: Risks
36
Solution: Workshop 1
1. Design and construction rework arising from lack of firm
definition
2. Additional management effort at peak to control the project
3. Use of additional resources arising from repeat work and
parallel working requiring more than optimal number of people
4. Essential additional items to achieve the CSFs which creep into
the scope through lack of firm definition
5. Procurement against best/guaranteed delivery rather than
lowest price
6. Additions to equipment orders as details evolve
7. Additional expediting
37
Solution: Workshop 1
8. Air freighting to speed delivery
9. Incorrect initial material quantities which may give rise
to surpluses, or shortages which will need to be
topped up at premium costs
10. Additional contingencies being included in quotations
to cover unknown elements where there is no scope
11. High allowances in tender prices to cover penalties for
defaults
12. Overtime and shift working resulting in higher cost
and loss of productivity
13. Over design vs. waiting for detailed information
38
Design Stage
Introduction
The main purpose of this stage is to finalize the design
requirements for the project
This stage requires a good understanding of the options
for compressing the schedule
It requires the use of the most up-to-date proven
computer aided design
People
Clarity of objectives
The most elegant design is useless unless it is capable of being
built safely and to time and budget, this has to be fully
understood by the project team and senior management
39
Design Stage
People
Stakeholders
– The interests of all stakeholders should be kept under review as the
design progress so that interested parties can be kept up to date and
involved at the earliest appropriate stage
Alliances
– Establishment of a long-term relationship between the companies and
team involved helps to ensure a rapid start-up of the team involved
on the project at each stage
Integrated Team
– This stage requires the use of single design team incorporating the
expertise of all discipline and involving those responsible for
subsequent stages of the project
– The design should be able to be “right first time” to minimize the
number and duration of design reviews
40
Design Stage
Integrated Team
The team need to be supported with appropriate collaboration
and communication systems
Team members should have clearly identified roles and
objectives to eliminate duplication and inefficiencies
The team members need proper empowerment to promote
rapid and effective decision making
Team members should be very competent and experienced in
order to enhance the efficiency of the design
Project Scope
Clarity of definition
The problem with some fast track projects is that detailed
design has to proceed without total clarity of definition
It is a a matter of judgment as to which areas are sufficiently
41
well defined to proceed without incurring too great risk
Design Stage
Project Scope
Extent of design
The extent of design details need to be defined from the
beginning. Some elements of design has always been left to
contractors on site to complete
There will be no benefit if the easy 95% of the project is fully
detailed and the contractor is left to struggle with the difficult
5%
Design can only be based on the best option at the time given
information available
Early involvement of contractors and suppliers is essential
42
Design Stage
Over-design
In the absence of hard information it is necessary to make
more generous allowances than would normally be the
case
The level of the over-design will depend on the extent of
the un-known, the significance and perhaps the cost of the
time
The design can be based on the maximum expected values
e.g., weight of structure, pressure in system together with
an appropriate safety factor rather than waiting until
precise values can be calculated.
Example: There maybe little cost difference for the project
as a whole if piling is 30% over-designed or 50% over-
designed, but may allow site work to proceed well ahead
before the accurate details of the superstructure can be
43
determined.
Design Stage
Design process
The design sequence must be planned to ensure that the
schedule needs of construction drive the design process
for the production at the right time of:
Design information
Drawings
Documents
Materials
Equipment
Design process
Design freeze
The overlap between definition, design and
construction means that the number of
unknowns remains higher than in a normal
project while work is proceeding on the
following stage
Only freeze part of the design which then have to
be accepted as constraints on the rest of the
design
46
Design Stage
Strategy
Simplicity and repetition
Reduction in the number of processing steps in a manufacturing
plant
Reduction in the size of the asset
Elimination of non-essential elements of the design (de-scoping)
Standardization of layout or repeated units
Simplification of the build / construct / assemble process
Standard / Reusable / Off-the-shelf-design
Consideration should be given to re-use design of an existing
asset
An existing asset can be used to train both the constructors and
users of the new asset
Base the design of the long delivery items on those that already
exist so that material procurement and fabrication can be started
at the earliest possible time. 47
Design Stage
Strategy
Modularization
If the overall design can be structured as a series of units or
modules then there is the potential to introduce a number of
schedule reduction approaches
Progress separate modules in parallel using separate design teams,
suppliers, construction contractors …
Care to identify all the interdependencies between the separate
modules and to ensure that these are taken into account as the
design progresses.
If a number of the modules can be of similar design then should be
possible to utilize the experience gained on early modules to
improve the efficiency and time
In a process plant design as a number of parallel streams, rather
than a single large stream – Smaller and off-the-shelf items
Consider the concept of sub-modules mounted within plant p may 48
Design Stage
Strategy
Prefabrication / Pre-assembly
Manufacture modules off the site and under factory
controlled conditions
Cladding panels complete with windows, external
fittings, internal finishes
Fully finished air handling units
Skid mounted plant
Fully finished bathrooms
Standardized internal partitioning
Completed, tested, validated pilot/ process plant
Design tools
• The low technology approach will often be found (on many projects) to be
49
the quickest to produce results
Design Stage
Project Management Systems and Procedures
Planning
Planning of the design must be driven by the requirements of
later stages, mostly the construction stage.
Interactive planning which involves all members of the project
team in problem solving and plan optimization.
Critical Chain project planning methodology has been credited
with a significant reduction in project duration. The
methodology results in the schedule contingency, which is
normally hidden in the planned duration of each activity, being
removed from the critical chain of activities and being replaced
by a number of buffers of project contingencies that are
provided to protect blocks of activities and are visible to the
project team
50
Design Stage
Project Management Procedures
Project Control
Effective project control is one of the keys to a successful fast
track
It must be a dynamic process with a very short cycle time so
that deviations are recognized and corrected
Design progress measurements should be at the simplest level
Frequent up-dates of measurements / information
Progress information / reports are simple, concise and easily
available to relevant people
Monitoring of key trends – flogging adverse trends and forecast
out-turns that are not in accordance with the schedule –
including schedule float.
Exception reporting of items not completed to schedule
Progress against deliverables, milestones, CSFs and forecast
out-turns 51
Design Stage
Project Management Procedures
Design Approval
To ensure that the client fully understands the detail of the
assets being created and does not come up with additional or
alternative requirements during procurement, construction or
commissioning phases, it is necessary to have good design
approval system which includes sign-off by the client.
Approval of the design sub-units that are the responsibilities of
specialist vendors may need to take place on their premises to
avoid delays
Design verification
Verification should commence as soon as possible to limit the
amount of re-work
52
Design Stage
Project Management Procedures
Change Control
• Effective change control system is essential, but is difficult to enforce due
to the increased risk of rework arising from the overlap of design and
construction.
• Rapid rejection and approval will help to limit rework and minimize the
impact of change
Communications
• Good verbal communications need to be established between the parties
so decisions are known quickly and design can progress rapidly.
• Meetings should be kept to a minimum and focused on decision taking
rather than communication of matters purely for interest.
• Communications within the team should take place as needed and not be
restricted to a meetings timetable
• Communications with other parties outside the design team need to be
kept up to speed with design details as they evolve
• Full use of IT systems for storage and communication of information 53
Design Stage
Project Management Procedures
Constructability Reviews
The integrated team is best placed to address the
issues which arise from Constructability
considerations as the structure and detailed design
are evolving.
54
Design Stage
Cost and Risk Considerations
The main risks in this stage are of increased cost and
delay due to sub-optimum design or incorrect design
resulting in rework
The root cause can be either commencing detailed
design before a comprehensive and firm definition has
been agreed or from the early decision approach where
there are interdependencies between the elements on
which parallel working is taking place.
55
Workshop 2: Risks at the
Design Stage
List the risks associated with increased overlap
between design and construction stages
56
Workshop 2: Solution
List the risks associated with increased overlap
between design and construction stages
Product which is to be manufactured on the plant fails its trials
Failure of innovative designs as a result of putting them into
practice without sufficient development
Failures of innovative methodologies as a result of hasty and
insufficiently considered application
Increased level of rework as a result of:
Lack of firm definition
Omissions as a consequence of out-of-sequence design
Changes to design of fabricated items after delivery to site
Increased whole of life cost due to sub-optimum design
Conflict
57
Workshop 2: Solution
List the risks associated with increased overlap
between design and construction stages
Increased capital cost arising from:
Modularization e.g., extra structural steel, extra
joint/connections, greater precision
Over-design due to judgments based on limited information
Sub-optimum design through the use of standard designs or
reuse of existing design
Problem at design and construction discipline interfaces
58
Workshop 2: Solution
List the risks associated with increased overlap
between design and procurement stages
Lack of understanding of scope
Design changes requiring revised contract and purchase orders
leading to delays or cost increases
Errors or omissions in purchase of materials or equipment
Reduced certainty of outcome for all project parameters: cost,
time, quality, safety
Interdisciplinary design conflicts arising from out of sequence
working
Problems with systems integration
Inappropriate form of contract for those contracts which are let on
the basis of inadequate or incorrect design information
Selection of inappropriate contractors
59
Inappropriate allocation of risk
Design Stage
Logistics
Design team location
The design team is the center of the project team activities
If the whole project team cannot be located together,
consideration should be given to locate them all together
through the design stage
Access
Arrangements should be made for design team to gain access
to project site as early as possible
60
Construction Stage
Introduction
Manage the additional risks
Achieve high productivity from construction work force
Good understanding of options for compressing the schedule
Good risk management and communication system
Coordination among all contractors and suppliers
People
Clarity of objectives
The CSFs and what is expected of site staff in achieving these
CSFs should be communicated to all construction staff
The key performance indicator against which construction
performance is to be measured should be explained
The interests of the site workforce should be identified (working
arrangements, working periods, flexibility and critical path 61
activities)
Construction Stage
People
Integrated team
Single integrated team with one culture should be carried
through to the construction site (it may be difficult with many
suppliers)
Contracts between the parties involved need to be set up to
promote integration and co-operation and to enable all parties
to be available as and when demanded by the schedule.
The following elements have been noted as being helpful:
• Effective management of the overall team effort
• Contractual obligations for all parties to work co-operatively
regardless of direct contractual relationship
• Design staff to be based on the construction site
• Rapid response from engineering staff not site based
62
Construction Stage
Integrated team
• Vendors available to assist in the erection, site testing and
pre-commissioning
• Dedicated staff to co-ordinate and expedite permits,
clearness, etc.
• Commissioning staff used as construction inspectors
• Client and commissioning staff involved in punch listing of
defects
• Project facilitators to deal with hold ups, interface problems
• Joint construction and commissioning punch listing team
• Punch list rectification squad which is separate from the
normal construction squad to hit critical items while
avoiding disruption to construction progress
• Testing as part of the installation process, not subsequent
activity
63
Construction Stage
People
Delegation and empowerment
Authorize and empower members of the project team to
promote rapid and effective decision taking at the
lowest competent level
Necessary numbers and skills must be made available to meet
the demands of the schedule
Supervision ratios may need to be increased
Skilled and experienced staff are employed
Construction team motivation is essential to enhance success
• Remove disincentives and provide incentives
– Schedule is challenging but realistic
– Demonstrate management dedication and commitment
– Remove underperforming staff from team
– Simplify work methods
– Avoid non-essential overtime
64
– Supply design information, materials, equipment, support services
Construction Stage
Scope
A clear definition of scope in form of drawings and
specifications, codes, standards and best practices.
Need to now what is required and how to deliver he scope
Strategy
Construction plan
• Satisfy conditions for plant commissioning and handover
• Provision of agreed documentation to following stages
• Pull through of design, materials, equipment, resources
• Inclusion of output from Constructability reviews
• Utilization of latest proven methods and technical improvements
• Detailed planning / control for critical path and special operations
• Modularization and off-site fabrication
• Locations of site facilities, workshops, etc.
• Complete weld preps prior to installation of steelwork/pipes 65
Construction Stage
Site contracts
Number and arrangement of contractors should be optimized for speed
of construction
Management and resources
Number and skills supplied to meet demands of plan
Competence in required project management and discipline skills
Workforce clocking / accommodation / messing facilities close to work
faces
Materials and equipment
Materials and consumables supplied to ensure no delay through
shortage
Materials management system to supply materials and equipment
safely and efficiently to the work face
Generous supply of construction equipment, personal protective
Construction, commissioning and operational spares ordered with 66
Construction Stage
Quality assurance
Build quality in. Do the job right the first time (inspection does
not improve quality)
Systems designed to minimize rework
Ensure that the latest revision is n use and previous issues have
been withdrawn
Access
Good, safe site access
Generous lay-down, storage and work areas for pre-fabrication,
assembly and inspection/testing
Safe and unobstructed access to the work face e.g. scaffolding
Maximum use of mobile access devices such as “Cherry Pickers”
and scissor lifts
Safety, Health and Environment 67
Construction Stage
Project Management Procedures
Planning
Construction requirements in terms of design, planning approvals,
contracts, materials, equipment services and documentation should be
built into the project plan from the earliest practicable time.
Only in this way will it be possible for the preceding stages
(Development, design, procurement) to organize their work so as to
produce constructable design packages and constructable procurement
packages
Construction plan should be based on the requirements for pre-
commissioning and commissioning
Keep plan under review throughout the construction period.
68
Construction Stage
Planning
• Only the minimum number of essential activities on the critical path
• Maximize benefits from prefabricated elements
• Plan construction of repetitive units as a manufacturing process
• Package work to allow multiple work fronts in parallel
• Plan construction sequence so as to meet pre-commissioning and
commissioning needs
• Base the schedule on shorter time intervals i.e. days or hours for critical tasks
• Site access arrangement
• Establishment of site infrastructure
• Work permit provision
• Resource demands of the schedule – recruitment, induction, training
• Move from area based to process system
• Commence construction based on early design information
• Key long lead and critical activities
• Contingency planning for critical activities
• Constructable work packages 69
• Deferment of non-essential items until late in the program
Construction Stage
Project Management Procedures
Project Control
Control must be a dynamic process with very short cycle time
and include the following:
• Frequent monitoring of all trends in work progress
• Frequent monitoring of changes
• The use of simple progress indicator graphs (S-curve) on a daily basis
• Simple progress reports and easily available to relevant people
• Exception reporting of items not completed to scheduled
• Progress against deliverables, milestones, etc.
• Earned Value measurement
Change Control
• Design changes are to be avoided
• If design change is essential, implement through change control system
• Resist verbal request at all costs
70
Construction Stage
Project Management Procedures
Communications
Communications should be:
Simple – limited to what is necessary
Pertinent
Timely
Using best available mechanism; face-to-face
Use of IT and 3D design tools to have a clear
understanding of the product
Enable all parties to work together with an improved
understanding of the design intent to avoid delays
arising from misunderstandings and interdisciplinary 71
Construction Stage
Cost and Risk
Mechanism for controlling costs through efficient use of
labour and materials and the avoidance of rework
including rectification of defective work
Strategies to achieve high productivity
Multiple shift or night shift will add to cost
It may be necessary for the client to provide advance
payment to enable contractors to commit materials and
resources ASAP.
Balance between risk and reward
72
Construction Stage
Logistics
Design support for construction should be located on site
If not possible then effective IT system should be used to improve
communications and enable marked up drawings to be rapidly
transmitted
Maintain the momentum of the construction site and avoid the
need to move site labour on to less urgent work due to hold ups on
the critical activities
Procurement support should be provided and include:
• Documentation – covering both purchasing transaction and documentation
• Good receipt procedures
• Inspections requirements
• Quarantine of incorrect or defective goods
• Storage and conservation
• Handling and delivery to the work face
• Surpluses 73
• Returns of incorrect, defective materials and equipment
Key Issues
With Fast Track
Control is redefined from “monitoring results” to
“making things happen”
Performance is maximizing value and minimizing waste
at the project level
Value to the client is defined, created and delivered
throughout the life of the project
Coordinating action through pulling and continuous flow
as opposed to traditional schedule driven push with its
over-reliance on central authority and project schedule
to manage resources and coordinate work
Decentralizing decision making through transparency
and empowerment (effective communication)
74
Key Issues
Thank You
76