PETROLEUM PROJECT

MANAGEMENT

Dr. Waleed Khadrawy

 What is Project Management?

Project : A group of milestones or phases,

activities or tasks that support an effort to
accomplish something

Management : is the process of Planning,

Organizing, Controlling and Measuring
 Project...
• A collection of linked activities, carried out
in an organized manner, with a clearly
defined START POINT and END POINT to
achieve some specific results desired to
satisfy the needs of the organization at the
current time
 Project Management
• A dynamic process that utilizes the
appropriate resources of the organization
in a controlled and structured manner, to
achieve some clearly defined objectives
identified as needs.
• It is always conducted within a defined set
of constraints
 What does Project Management Entail?

• Planning: is the most critical and gets the least amount of our
time
Beginning with the End in mind-Stephen Covey
• Organizing.
• Controlling: is critical if we are to use our limited resources
wisely
• Measuring: To determine if we accomplished the goal or met
the target?
 Measuring…….

• Are we efficient?
• Are we productive?
• Are we doing a good job?
• What is the outcome?
• Is it what we wanted to be?
If you can’t plan it, You can’t do it
If you can’t measure it, you can’t manage it
 Who uses Project Management?
 Nearly Everyone to some degree
People plan their Days, their Weeks, their Vacations
and their Budgets and keep a simple project
management form known as ‘’To Do’’ list
 Any Process or Means used to track tasks or efforts
towards accomplishing a goal could be considered
Project Management
 Why is Project Management used?

• It is necessary to Track or Measure the progress we have

achieved towards a Goal we wish to accomplish
• We use Project Management to Aid us in Maximizing and
Optimizing our resources to accomplish our goals
 How much time does Project Management
take?
• Not much. Probably more time is wasted as a consequence of
lack of Project Management tool than is spent to Plan
adequately, Organize, Control effectively and Measure
appropriately
• How long: As long as there are things to do
 Why is Project Management Important?

• Enables us to map out a course of action or work plan

• Helps us to think systematically and thoroughly
• Unique Task
• Specific Objective
• Variety of Resources
• Time bound
 Advantages

• In built Monitoring/ Sequencing

• Easy and Early identification of Bottlenecks
• Activity based costing
• Identification and Addition of missing and new activities
• Preempting unnecessary activity/expenditure
• Timely Completion
• Assigning tasks
• Reporting
 Road to Better Project Management

• Find a Project plan that fits your style of project

management needs
• It may be as simple as creating templates, forms and
spreadsheets to track tasks
• Formation of a Project Management committee
• Listing out all the tasks and sub-tasks to accomplish a goal
• Jot down the time period and person responsible against
each task/sub-task
 Road to Better Project Management

• Identify a Project Manager

• Identify Task Managers
• Sequence the activities in relation to time period
• Present to the PMC
• Finalize by reaching an agreement and start work…...
 Implementation

• Regular Monitoring
• Resource Support
• Critical issues discussed and solution
• Meeting with the team on completion of each major
milestone
• Track the progress against the plan
• System to add/delete tasks in the PMT
 Consequences of not using PMT

 DELAY
 COST
 WASTE OF RESOURCES
 QUALITY
 DISSATISFACTION
 REPUTATION
Project Management….

Work Smart Not Hard !!!

 INTRODUCTION
WHAT IS PROJECT?

 A Project is a complex , non-routine, onetime effort

limited by time , budget, resources , and performance
specifications designed to meet customer need

 Its a temporary endeavour designed to produce a

unique product ,service or result with defined
beginning and end, undertaken to meet unique goals
and objectives
 CONTD….
WHAT IS PROJECT MANAGEMENT?

 It is the process and activity of planning, organizing,

motivation, and controlling resources, procedures and
protocols to achieve specific goals .
 CONTD…
The project management processes fall into five groups:-

 Initiating
 Planning
 Executing
 Monitoring and controlling
 Closing
 CONCEPTS OF PROJECT
MANAGEMENT

• The main concepts of project management are as

follows:-

» It must get completed

» It must be completed within budget
» It must get completed with allocated time
» It must perform to satisfaction
 Why Project Management?
• Project management techniques are used by
organisations because they ensure that
organisational objectives (Basic, Strategic and
Operational) and system objectives are being met
in a timely, accurate, relevant and complete
manner.
• Project Management techniques provide a way of
controlling people, resources and procedures,
and clearly identify the tasks that must be
completed and the desired completion time.
VARIOUS STAGES
OF
PROJECT

PAVE A PATH
FOR
SUCCESSFUL COMPLETION

STATUS UPDATING THROUGH

NETWORK AND
GIVING EARLY WARNINGS

DATA COLLECTION

PLANNING & SCHEDULING

THINKING
Project :
Converting a vision, a dream or a need to reality.

 A job that has a beginning and an end (Time)

 A specified outcome(Scope)
 At a stated level of Performance (Quality)
 At a budget(Costs).

Project Characteristics :

 Temporary : Has definite Start and Finish

 Unique : Product/Service is different in some
distinguishing way
Management :
Management is the technique of understanding the
problems, needs and controlling the use of Resources, Cost,
Time, Scope and Quality.

Project Management :
Application of knowledge, skills , tools & techniques to
project activities in order to meet stakeholder needs &
expectations from a project.

Needs : stated part of the project

Expectations : unstated part of the project

“Completion of Project on time within Budget without

comprising Quality”
 Why do companies use PM?
• To handle projects effectively in an organization.
• To define the project and agree with the customer
• To plan and assess resource needs for the project
• To estimate project cost and make proposals
• To plan & schedule activities in a project.
• To allocate the right resource at the right time.
• To assess risk and failure points and make
backup plans.
• To lead a project team effectively and communicate
well
among team members.
 Why do people learn PM?
• To explore the latest concepts and techniques of
project management.
• To increase value/contribution to the organization. To
prove yourself skillful in managing projects.
• To learn a new thought process that helps organized
thinking and structured approach.
• To acquire a professional degree/ recognition and
increase job prospects.
• Endless possibilities and benefits……..
Project Management Plan :

“Tells How work will be done”

The key to a successful project is on the

planning. All the detailed planning work for different
aspects of the project is integrated into one single plan
known as the Project Management Plan.

Input:
Output :
Project
Goal
Team
Money Deliverables
Time
Equipment
The PM Plan establishes the projects:

• ‘Why’ is from the business case

Why

• ‘Why’ & ‘What’ are management statement of the success criteria and
Why & should be agreed with the project sponsor
What

• ‘Who’ will do the work and stakeholder awareness of the project

Who

• ‘When’ deals with schedules and phasing for the project

When

• ‘How’ which is the project manager vision to implement project from

How beginning to end

How • ‘How Much’ covers the costs and budgets of the project.
much
Project Management Overview
Project Management Process
Project Management Process Groups
 PLANNING Most important phase of the project
management.
SCHEDULING
Planning is an art and science of
converting a set of objectives to
CONTROLLING realization through a series of steps
executed in an organized and
predicted way so that there will be
CLOSING
less requirement of changes in the
plan later on.
The old saying “Plan the work, Work
the plan”
 PLANNING Scheduling Phase is the process
of formalizing the planned activities,
SCHEDULING assigning the durations, resources
and sequence of occurrence in
consultation with the team
CONTROLLING
members.

CLOSING Planning and Scheduling phases are

under taken before the actual
project starts.
 PLANNING Controlling phase is undertaken during the
actual project implementation.
SCHEDULING Project controlling is a mechanism established
to determine deviations from the project
base schedule, to re-plan & reschedule
CONTROLLING during implementation to compensate the
deviations on the basis of commissioning
minima, flow of resources like
CLOSING
finance, manpower, equipment &
application techniques.
 PLANNING Closing phase is the last phase of the
project which brings close out of the
complete project. Whatever the project
SCHEDULING requirements are pre-defined, during this
phase the total delivery is made and it is
accepted by the customer.
CONTROLLING
Maximum conflicts can arise in the project
during this phase between those who have
CLOSING worked to deliver the outcome (contractor)
and those who are accepting the results of
the work (customer).
 PM Knowledge Areas
1

Change Integration
2
Document
Scope

Procure
PM Knowledge Time 3
9 ment
Areas

Risk Cost
4
8

Communi
Quality
Cation Human
7 Resource 5

6
 Project Integration Management

 Project Integration Management supports various

elements of project management which are
identified, defined, combined and coordinated.

 Develop Project Charter

Develop Project Management Plan
Direct and Manage Project execution
Monitor and Control Project Work
Perform Integrate Change Control
Close Project or Close
 Project Integration Management
Project Charter :
 DOCUMENT that formally authorizes a project.
 Provide information about internal and external parties involved
in and affected by the project.
 Documenting initial requirements that satisfy the stake holders’
needs and expectations.
 ISSUED by a project initiator or sponsor, external to project
organization, at a level appropriate to project funding.
 EMPOWERS the project manager to apply resources to project.
 Summary level Milestone schedule and Summary level Budget.
 Project Scope Management
 Project scope management includes the processes
required to ensure that the project includes all the
work required, and only the work required to
complete the project successfully

 Collect requirements
Define Scope
Create WBS
Verify Scope
 Project Scope Management
WBS – Work Breakdown Structure :
A deliverable-oriented hierarchical decomposition of work to be
executed by the project team to:
•create required deliverables
• accomplish project objectives
 WBS organizes and defines the total scope and represents
specified in the current approved Scope Statement!
 Process of subdividing project deliverables and project work into
more manageable components.
 Lowest level of WBS is work package can be scheduled, cost
estimated, monitored, and controlled.
 TYPICAL WBS OF A PROJECT
OVERALL PROJECT

ENGINEERING PROCUREMENT CONSTRUCTION

SITE MOBILISATION
PLACEMENT OF
BASIC ENGINEERING
ORDER ON VENDORS
CIVIL WORK

DETAILED
ENGINEERING MANUFACTURING &
Civil work for Civil work for
DELIVERY Piling work
Main equipment Aux. Facilities
PROJECT
ENGINERING STRUCTURAL STEEL WORK

EQUIPMENT INSTALLATION

PIPING INSTALLATION

ELEC. INSTALLATION
EQUIPMENT
RECEIVED AT SITE INSTRUMEN. INSTALLATION
( …%)
INSULATION & PAINTING

• KPL - WBS COLD COMMISSIONING

HOT COMMISSIONING
 Project Time Management
 Project Time Management ensures the timely
completion of the project.

 Plan Schedule Management

 Define Activities
 Sequence Activities
 Estimate Activity Resources
 Estimate Activity Durations
 Develop Schedule
 Control Schedule
Project Time Management
 Project Time Management
 Schedule once finalized is set as a baseline
 Progress of work are tracked against the baseline
 Current progress is arrived from various (Engineering,
Proc, Manufacturing and Construction) Trackers
developed for the purpose. These schedules are called
current schedules
 Analysis and forecasting is done in progress reports.

Schedule using MS Project

Schedule using Primavera (P6)
Engineering Tracker
Manufacturing & Supply Tracker
construction tracker
 Project Cost Management
 Project cost Management includes the processes
involved in estimating, budgeting, and controlling
costs so that the project can be completed within
the approved budget.

 Estimate cost
Convert it into budget
Load the cost into schedule
Perform earned value (EV) analysis
Perform estimate at complete (EAC)
Administer changes
Control cost
 Project Quality Management
 Project Quality Management ensures the project
will satisfy NEEDS for which it was undertaken.

 Plan Quality
Perform Quality Assurance
Perform Quality control

What is Quality?

 Conformance to specifications
 Fitness for use
 Project Quality Management
Perform Quality
Plan Quality Perform Quality
Assurance
Techniques Control Techniques
Techniques

• Cost benefit • Quality • Statistical sampling

analysis management and • Inspection
• Cost of quality control tools • Seven quality tools
• Benchmarking • Quality audits and techniques
• Design of • Process analysis
√ Cause and effect
experiments diagram
• Seven quality √ Flowcharts
tools √ Check sheets
• Statistical √ Pareto diagrams
sampling
√ Histogram
√ Control charts
√ Scatter diagram
Project Human Resource Management
 Project human resource management includes the
processes that organize, manage, and lead the
project team and to make most effective use of
people involved in the project.

 Develop Human Resource Plan

(Role & Responsibility, Organization chart,
Staffing Management Plan)
 Acquire project team
 Develop project team
 Manage project team

Organization Chart
Project Human Resource Management
Project Communications Management
 Project communication management include
processes required to ensure timely and appropriate
generation, collection, distribution, storage, retrieval,
and ultimate disposal of project information.

 Identify Stakeholders
 Plan Communication
 Distribute Information
 Manage Stakeholders expectations
 Report Performance

RACI
Project Communications Management
Project Stakeholders :
 Customers/users
 Sponsor
 Portfolio managers/portfolio review board
 Program managers
 Project management office
 Project managers
 Project team
 Functional managers
 Operations management
 Sellers/business partners
Project Communications Management
 Project Risk Management
 Project Risk Management is concerned with identifying,
analyzing and responding to project risks.
 Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk responses
Monitor and Control Risks

Risk Register

Risk Risk Risk Risk

Assessment Control Ranking Mitigation
 Project Procurement Management
 Project Procurement Management is needed to
acquire material, goods and services outside
performing organization to meet project scope.

 Plan Procurements
 Conduct Procurement
 Administer Contracts
 Close Procurement
 Project Change Management

 Projects generally don’t go 100% as planned

resulting into variations from plans in scope, time,
cost, quality

 Change control boards (CCBs)

 Project Document Management
Document management is very important (but largely
ignored) aspect of project management

 This can be a sophisticated software or simple excel

sheets depending on the organization strategy

 Once adopted its use should be fully exploited viz.

100% documents should pass through it and
document reviews should be done as per the matrix
defined
 MIS of document status be generated at the end of
period
 Project Document Management
 Proper DMS ensures right information to all
stakeholders at all times
 Avoid using obsolete drawings and designs for
execution
 Serves a very good engine for future use of project
data
 Example of a simple document management system

Document control log

 S-Curve in Monthly Progress Report
Progress reporting is done through different formats and curves.

31
What is “S Curve”

S- Curve is the graphic display of cumulative progress

plotted against time.

Ideal S - Curve is a sinusoidal curve based on the

following formulae:
Y = [1 - sin(x/xn*180 + 90 ) *50]

Y – Percent progress
x – Period at which s-curve value required
xn – Total period

The name is derived from the 'S' like nature of the curve.
S-Curve
 Progress distribution curve

Peak Period

Cumulative progress Curve

Plotted in a different scale
Progress

Starting Period Finishing Period

Time
It is an ideal distribution curve. Depending upon the various
guiding factors it may vary.
“S Curve” or Project Life Cycle