Steps of a project

Nihar Ranjan Mandal

Batch of 18-21
Roll No- MP18025
Project Stages Framework

Post
Capital scheme inclusion Execution Handover to completion
Study approval of project approval operations review
Concept Project
G1 Study G2 Design G3 Execution G4 Closure, G5
Identification Ramp-up

G1, G2……G5= Project major gates

2
 • Prepare Project Definition
Steps of a project Feasibility
Assessment
• Develop Project Cost Estimate
• Develop Business Case
& Business
Case

• Formulate Engineering Strategy

• Manage Basic Engineering
Manage
• Manage Detailed Engineering
Engineering • Manage Review Engineering

• Formulate Procurement Strategy

• Source and Manage Categories
Manage • Manage Requisition to Payment
Sourcing & • Manage Vendor Relations
Procuremen
t • Review Procurement Performance

• Formulate Construction Strategy

• Manage Site Contractors
Manage • Manage Project Material
Constructio • Review Construction Performance
n

• Manage Pre-commissioning & Commissioning

Manage • Manage Handover to Operations
Commission • Perform Project Closeout
ing & Close-
out

• Define Packaging and Execution Strategy

• Manage Scope
Project
Managemen • Contracts Management
t

• Management of project schedule

• Cost Management
Project
• Manage Risks
Controls • Review of project performance

3
 Feasibility Assessment & Business Case
Prepare Project Definition

The objective of this process is to ensure adequate definition of

project to satisfy stage gate requirements as well as to ensure
Essentiality and Feasibility are sufficiently proven and accepted

1. Prepare Project Concept Note

2. Prepare Project Definition and Project

Charter

4
Develop Project Cost Estimate

1. Establish Framework for Estimation

2. Develop Estimate

5
Develop Business Case

1. Select Evaluating Business Model &

Prepare Business Case

2. Benchmark Execution Parameters

6
 Manage Engineering
Formulate Engineering Strategy

1. Prepare Engineering Scope Definition:

- Scope of engineering is finalized in line with project
lifecycle (feasibility, basic engineering, detail
engineering

2. Evaluate Engg. execution strategy

- Engineering execution strategy is defined upfront for
the project

7
Manage Basic Engineering

1. Firm Up Basic Design Parameters

Develop all data to start design
• Check old records for data
• Develop data not available in old records
2. Establish Plant Design Basis
Release scoping of plant.
• Finalize overall basis and scoping of plant
• Finalize sizing and scope for major equipment

3. Prepare Basic Engineering Design

Package
Finalise BEDP
• Provide basic design specifications of all major
equipment

8
Manage Detailed Engineering
1. Finalize EWP(Engg Work Piece):
Break engineering scope into manageable pieces

2. Prepare Detailed scope matrix

Detail out engineering scope & identify key execution
elements
3. Publish Document Control Index
Implement the DCI tool which shall dwgs progress
against pre-defined milestones
4. Release specs & evaluate Bids
Convert requirement into a tech. specification for
procurement and support evaluation of vendors
5. Conduct Design Review
Conduct a multi-disciplinary review of engg. design at
stated maturity milestones
6. Value Engg
Identify means to improve value based on systematic
evaluation their function

9
Manage Review Engineering

1. Define Engineering Performance Metrics

Identify metrics
• Identify key metrics and monitoring frequency
• Establish overall basis for monitoring
2. Map Schedule Requirements:
Incorporate criticality
• Incorporate criticality weightage in progress
measurement

3. Report Engineering Performance :

Reporting
• Establish process for generation/ review of MIS

10
 Manage Sourcing & Procurement
Formulate Procurement Strategy

1. Long Term Procurement Strategic Plan:

- Collate List of Ongoing/Envisages Projects
- Identify Key Categories for Procurement
- Long Term demand Projection
- Define Category Strategy

2. Project procurement plan and strategy

- Collate Project procurement requirements
- Prepare Project Procurement Plan
- Communicate Project Plan to PM and Other
Stakeholders

3. Annual procurement plan

- Collate all Updated project procurement plans
- Prepare annual procurement plan
- Review and Update Category Strategy

- Capex Optimization and - Pro-active procurement planning

BENEFITS information driven business on the project leading to better
decisions performance 11
Source and Manage Categories
1. Analyze and Manage Categories:
- Perform Spend Analysis
- Conduct Supply Market Analysis

2. Strategic Sourcing
- Float Enquiry to Vendors
- Receive Bids from Vendors
- Perform Technical and Commercial Analysis and
Prepare Negotiation Packs

3. Formulate Procurement Contracts

- Issue LOI if needed
- Sign of agreement
- Prepare PO and release

4. Procurement Risk Management

- Identify Category Risk
- Monitor Procurement risks

- Strategic sourcing of key - Upfront identification of

BENEFITS categories taking a cross-project procurement risks and pro-active
view resolution 12
Manage Requisition to Payment

1. Process Requisition:
- Generate PR
- Process DO against frame agreements
- Process requisition for emergency buying

2. Process Payments
- Process Payments for PO /WO

3. Manage Master Data

- Create material code / Vendor Code
- Update material code / Vendor Code

- PR-PO process to be done in - Identification of requirements for

BENEFITS ERP making the process faster commissioning asset at system
by reducing paperwork level leads to unambiguous 13
Manage Vendor Relations

1. Vendor Identification and Empanelment

- Evaluate Vendors
- Check documentation from Vendors

2. Manage Vendor Performance

- Define Vendor Performance criteria
- Collate user inputs
- Populate Vendor Scorecard
- Evaluate Vendor development needs

3. Address Vendor Queries

- Maintain an issue log
- Track status of issue log
- Escalate when necessary

- Proactive identification of - Detailed Vendor Evaluation at a

BENEFITS Vendors and empanelment Project Level and also at
company level and identification 14
Review Procurement Performance

1. Plan Procurement Review:

- Review and Finalize detailed procurement plan
- Finalize key orders to be tracked
- Finalize reporting structure and responsibilities

2. Monitor Procurement Performance

- Update sourcing and procurement functional MIS
- Analyze key delays

- Monitoring of procurement
BENEFITS performance on the projects and
also development of functional 15
 Manage Construction
Formulate Construction Strategy

1. Prepare Construction Management Plan:

- Prepare first draft of construction management plan
- Refine construction management plan

2. Site Readiness
- Prepare list of facilities required
- Prepare Early Work Schedule
- Prepare list of approvals required and land requirements

3. Planning of Owner’s Manpower & Equipment

- Publish project manpower and equipment plan

4. Constructability Assessment
- Identify constraints in construction planning and execution
- Generate solution themes for constructability

Preparation of construction management plan helps in:

BENEFITS • Identify facilities required at start of construction
• Plan for manpower and hired equipment before start of construction
• Upfront identification of constraints in construction planning & execution and generation of solution
themes 16
Manage Site Contractors
1. Selection of site contractors:
- Provide and finalize inputs for construction
contractors
- Evaluate and assess contractors

2. Planning of Contractors’ Manpower &

Equipment
- Finalize manpower quantity and equipment to be
provided by contractors

3. Contractor Performance Management

- Prepare contractor DPR
- Establish metrics and weightages to monitor
contractor
- Develop scorecard for contractor

4. Small/New Contractor Development

- Identify and list new local contractors
- Conduct risk assessment for identified contractors

- Process for selection and - Contractor performance is

BENEFITS
planning for site contractors are monitored and recorded
standardized objectively through means of a 17
Manage Project Material

1. Project Stores Planning:

- Plan storage capacity required for peak material
- Prepare checklist of equipment and facilities required

2. Receipt
- Standardized process for receipt of material

3. Storage
- Develop guidelines for storage of various materials

4. Issue
- Ensure accurate issuance of materials,
documentation and updation of inventory

5. Return
- Ensure accurate and timely return of materials

6. Disposal
- Ensure proper disposal procedures are followed

BENEFITS - Upfront identification and - Development of guidelines for

planning for storage requirement material storage, issue, return, 18
Review Construction Performance

1. Contractor Mobilization:

- Review and finalize detailed L4 plan submitted by contractor

- Finalize mobilization – demobilization of resources

2. Work Front Management & Construction Monitoring

- Track and monitor construction progress

- Track and monitor construction costs
- Close NCRs by agreed timelines

BENEFITS
- Greater focus on tracking and - Ensures regular construction
monitoring construction cost and planning at the start of the
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progress project and package execution to
 Manage Commissioning & Close-out
Manage Pre-commissioning & Commissioning

1. Commissioning Planning
- Capture commissioning requirements
systematically across various stages of project
execution, including commissioning
- Prepare detailed commissioning schedule

2. Mechanical Completion & Pre-

commissioning
- Implement a structured mechanism to carry out
mechanical completion and pre-commissioning
- Deploy format based commissioning along with
milestone definition based completion criteria

3. Commissioning
- Key steps include reviewing readiness for
commissioning at Turn-over systems level,
liquidation of punch points, review of formats,
rectification of systems,
- Implement reporting mechanism related to
commissioning progress

- Better alignment with - Identification of requirements for

BENEFITS construction as construction commissioning asset at system
schedule is driven by level leads to unambiguous 20
Manage Handover to Operations

1. Establish Acceptance Framework

- Define Acceptance Criteria at overall project
level, individual plant/ equipment level
- Finalize operations philosophy, opening day
requirements (ODR)

2. Onboarding of Operations Team

- Onboard operations teams for handover based
on skill, experience etc.
- Identify training needs of selected operation
team members, and impart trainings

3. Handover to Operations
- Handover asset, spares, and relevant
documentation to operations team in structured
manner
– As Built drawings
– Operations and Maintenance Manual
– Leftover spares

BENEFITS - Smooth handover from project - Reduced duration for handover

team to operations team through by aligning onboarding of
effective definition of acceptance operations team with the 21
Perform Project Closeout

1. Administrative Closeout
- Perform administrative closeout with all required
documentation
- Key activities include collecting project records,
analyzing project success or failure, transferring
the project to operations and archiving project
information for future use

2. Manage Project Closeout

- Conduct post implementation survey with all
project stakeholders, analyze feedback and
evaluate responses to identify corrective
measures for future use
- Conduct workshop to capture lessons learnt on
the project
- Collate project data (baseline and actual data for
scope, schedule and cost, total resources
mobilized, key drawings and specifications, etc.

- Efficient completion of project - Capture of lessons learnt on

BENEFITS
closeout activities through project through dedicated
project closeout checklist lessons capture session and 22
 Project Management
Define Packaging and Execution Strategy

1. Evaluate and Select Packaging

Strategy

- Formally evaluate and finalize the packaging

strategy for the project
- Parameters used for selection of packaging
strategy are standardised and made
comprehensive
- Review of packaging strategy by an expert
committee ensures capture of past learning in
project execution

2. Develop Project Management Plan

- Formally define the project execution strategy
based on packaging strategy defined in form of a
Project Management Plan
- Project Management Plan aligns and represents
inputs from all functions, viz., engineering,
procurement, construction, commissioning,
safety and quality

- Packaging strategy arrived post - Dependency on individual

BENEFITS thorough analysis of functional decision making is reduced
(E,P,C) and operational 23
Manage Scope

- Define & Publish Baseline Scope

- Develop outline of project WBS which is aligned

to exercise control on project schedule and cost
- Load functional quantities onto the finalised
WBS hierarchy

- Change Scope

- Assess impact of change request on baseline

project scope; also evaluate time and cost
impact
- Obtain approval from top management for
change

- Publish revised scope; inform stakeholders

- Alignment of schedule and cost - Clear delineation of work

BENEFITS measurement systems through packages and estimated
same scope split (WBS) ensures volumes ensures easier
effective management of management of accountability of
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packages work and battery limits
Contracts Management

1. Implement Contract
- Hold KOM(Key operating measures) with
suppliers/ contractors
- Prepare Contractual Summary document
2. Manage Contract Exceptions
- Identify and manage change through Change
Order Notification (CON) and Change Order
(CO)
- Develop strong response mechanism to claims
and disputes lodged by vendor/ raise counter-
claims on external parties

3. Closeout Contract

- Apply/ waive off LD(late delivery) at the end of

contract lifecycle
- Conduct post implementation review of contract
execution, and capture learning and identify
process improvements from the review step

- Provide a structured way of - Minimize risks for the project,

BENEFITS managing contracts throughout which may arise due to changes
its lifecycle in contract conditions 25
 Project Controls
Management of project schedule

- Establish Schedule Management Plan

- Prepare milestone level schedule
- Prepare early works schedule
- Prepare schedule management plan

- Establish Baseline Schedule

- Prepare WBS based package level schedule
- Integrate functional and vendor inputs into
single baseline schedule
- Prepare functional progress trackers

- Update Schedule
- Update schedule on the basis of progress
captured in functional progress trackers
- Leverage Schedule Analysis Reports
- Identify and monitor adherence to critical path
- Forecast duration of delayed activities
- Load quantities and resources onto schedule

- Provide the team consistent - Clarify the interfaces between

BENEFITS visibility into what activities need functions- who is responsible for
to be executed across functions what and when- so that friction 26
Cost Management

1. Establish Cost Baseline

- Define Cost Breakdown Structure for project

- Allocate overall budget into CBS elements
- Establish and publish cost baseline

2. Perform Cost Control

- Capture planned and actual expenditure,
commitments and revised estimates against pre-
defined CBS structure
- Forecast package-wise estimate at completion
- Perform root cause analysis for CBS elements
with negative variance
- Assess budget over-runs at project level, and
take corrective action
- Generate detailed cost report

- Clear visibility into break-up of - Robust monitoring of budgeted

BENEFITS project budget to suit cost and actual cost through
monitoring and reporting generation of cash flow curves 27
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Manage Risks

- Identify Risks
- Identify and categorize risks so as to provide a
comprehensive list of risks across all stages of
project
- Document the risks to form a basis for risk
evaluation

- Evaluate and Mitigate Risks

- Identify the impact and likelihood of occurrence
of each risk to ensure that a strong risk
mitigation plan is developed along with
identification of early warning indicators
- Prepare risk mitigation plans

- Monitor and Reassess Risks

- To monitor the risk status and mitigation action
on a continuous basis to ensure mitigation
actions are on track
- Track early warning indicators (EWIs)

- Ensure aggregation of all risks - Create a complete objective risk

BENEFITS on a project view for the project
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Review of project performance

- Define Project Performance Metrics

- Establish basis for progress measurement
- Establish function-wise progress monitoring
milestones

- Define Project Calendar

- Establish Project Review MIS structure
- Define project calendar

- Report Project Performance

- Collate functional inputs for project progress
monitoring and perform variance analysis
- Prepare reports as per established reporting
formats

- Provide clear visibility into the - Provide clarity on the inputs to

BENEFITS progress status of different be provided to project control
project elements (scope, function, and outputs expected
schedule, quality, risk, safety,
etc.) 29
BIBLIOGRAPHY

Tata Steel Project management information

Guidelines from project management institute

https://www.researchgate.net/publication/46445
246_A_software_for_project_management_proc
ess

https://www.villanovau.com/resources/project-
management/5-phases-project-management-lifecycle/

https://www.softwareresearch.net/fileadmin/src/docs/te
aching/SS06/PM/PMBOK3.pdf

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