flawless project delivery
TRANSCRIPT
FLAWLESS PROJECT DELIVERYKen Ede Apr 2016
© 2016 Ken Ede LinkedIn https://au.linkedin.com/in/kenede Web: www.ignite1000.com
FLAWLESS OPPORTUNITYPr
oduc
tion
Time
ExpectationActual
Getting the actual start-up profile to match expectations
FlawlessOpportunity
Pluto
Gorgon
QCLNG
Ichtys
Gladsto
ne
Wheatst
one
0
10
20
30
40
50
60
Publicly Announced Stage
Committed / completed stage
A$bn
+154%
+301%
+121%
+250%
+130%
+39%
Flaw
less
Oppo
rtuni
ty
From IPA, typically:• 1 in 8 offshore projects is a “disaster”• Cost growth/schedule slip > 40% vs sanction• First year operability < 50% vs plan
© 2016 Ken Ede LinkedIn https://au.linkedin.com/in/kenede Web: www.ignite1000.com
FLAWS MATTER
Loss of Containment 50%
Human Error 50%
Fittings incorrectly
installed 31%
Procedures not followed 8%
Equipment/ parts defects 21%
Design specifications
15%
Case
stu
dy o
f inc
iden
ts in
com
miss
ioni
ng a
nd H
UC p
hase
ove
r 30
year
s
Incidents
© 2016 Ken Ede LinkedIn https://au.linkedin.com/in/kenede Web: www.ignite1000.com
Work direction 11%
“ FLAWLESS IT IS ABOUT YOUAND YOUR UNDERSTANDING OF
RISK “
Do you know when you are making risk
decisions?
Do you know the error rate in not only your
decisions but also the error rate in data that
you use to make decisions?
Are you qualified to make the risk decisions you are
making?
Who is your risk decision looking
after?What is motivating your risk decision making?
Are you engaging those that might be impacted in the risk
decision?
Energy
Risk
Atti
tude
Walking dead
WinnersSpectators
Troublemakers
Risk attitude in the right quadrant?
We allow flaws to occur and then establish processes to find and fix them
We work in an industry that accepts flaws as part of normal business
We often fix the symptom and not the flaw
Flaws are often good for business
© 2016 Ken Ede LinkedIn https://au.linkedin.com/in/kenede Web: www.ignite1000.com
In th
is ca
se st
udy
mor
e th
an 2
31 p
rimar
y ca
uses
FLAW
DI
AGNO
SIS
© 2016 Ken Ede LinkedIn https://au.linkedin.com/in/kenede Web: www.ignite1000.com
Data
from
cas
e st
udy
of m
ore
than
300
0 le
sson
s le
arne
d
Data
from
cas
e st
udy
of m
ore
than
300
0 le
sson
s le
arne
d
FLAWS BY PHASE“Delusion”
Data from case study of more than 3000 lessons learned
“Commissioning: when the frisky tom cats of
innovative design, value engineering and
supreme optimism meet the sharpened
scalpel of reality”
Select/Develop(BOD)
Detail Design / Procure / Construct
Commissioning /Start-Up
Develop(FEED)
Valu
e of
eac
h FL
AW
Time
45% 10% 40% 5%
FID
It goes wrong from the get go because:• Overarching strategies to support the projects intent are not set up early enough• Commitments are made which lock the work into business as usual delivery• Accountability to get overarching project arrangements right is not clear and inaction leads to business as usual
delivery• Decisions makers make decisions blind to data that was available• Insufficient ‘winners’ underpin the drive for flawless delivery and are overcome by the business as usual approach• Confused message on drivers by leadership undermines a flawless approach
Ignored what the Company knew
were Best Practices
“Appraisal Optimism” leads to unrealistic estimates
All caught up in
Company politics
Insu
fficie
nt fr
ont
end
load
ing
High
ly sc
hedu
le d
riven
Wholly inappropriate contract strategy
Key problem is lack of accountability,
not lack of technical skills or data
Risk management
techniques insufficient
© 2016 Ken Ede LinkedIn https://au.linkedin.com/in/kenede Web: www.ignite1000.com
TIME FLAWSManufacturing Delivery
Kick Off Meeting IRC
Transport Pick Up ROS
Planned
Manufacturing
FAT
Delivery
Kick Off Meeting IRC ROS
Transport Pick UpTraining
VendorCompetency
Testing
SurveillanceVisit
SurveillanceVisit
FATTypically what is planned is a plan to fail.
Lessons tell us manufacturing is often delayed and FAT late. Commitments on transport and ROS sees punch list items being exported to
site
Flawless builds in allowances for the known risks. Storage at vendor
built in to allow for vendor delay and to fix punchl ist
Investing in and more interactive with the
supplier to set up final inspections to be fault free
and successful
ROS reflects risks of flaws in the entire life cycle
Flawless Plan
Flawless management of time flaws requires very early consideration to avoid locking the work into a business as usual approach. The trade off on the delay is that the outcome is more predictable and overall result better but requires supportive leadership and courage to implement. Often needs demonstrating through scenario planning.
© 2016 Ken Ede LinkedIn https://au.linkedin.com/in/kenede Web: www.ignite1000.com
COMPETENCY FLAWS
Its critical you know what you do NOT knowEl
ectri
cal
Mat
eria
ls
Vessels EEHA
Coat
ings
Structural
MechanicalPiping
Com
mun
icatio
ns
Cont
rols
Logi
cIn
stru
men
tsHumanfactors
Piping
OperationsVa
lves
Fire
Vibration
Stre
ss
Safe
ty
IT
RiggingLifting
The required skill set to execute flawless inspection does not reside in a
single ‘universal solider’
© 2016 Ken Ede LinkedIn https://au.linkedin.com/in/kenede Web: www.ignite1000.com
Governing
Measuring Prio
ritizi
ng
Leadership Repo
rting
Stakeholder management
BudgetingAction tracking
Risk management
AuditingStrategy
MANAGEMENT
Flaw
Planning
Trai
ning
Innov
ation
Technical
Mitigation
Discover
y
Challenge
Accountability
Continuity
MultipleordersMultiple locations
Competing
demands
Sometimes 7layers deep
EngagementCompetency
Over long time
Culture
Challenge
business as
usual
Assume the worstIdentify, debate and conscientiously act on warning signals
Wary of previous successes
Look
for t
he
root
caus
e fix
Team of proactive
winners
Do not get
normalised
Avoid denial
Front End
Effor
t
QA/QC Flawless
Flawless and Quality coexist and complement each other. Flawless is a front end loaded activity.
Back End
Flawless is not about detecting flaws, but promoting and ensuring good practices are in place to stop the occurrence of flaws.Integrity
© 2016 Ken Ede LinkedIn https://au.linkedin.com/in/kenede Web: www.ignite1000.com
• Tightness• Cleanliness• Integrity• Operability• HSE• Prototypes• Complexity• Testing• Experience• Coinciding Events• Integration• Information
RESPONDScore
against each flaw category
Determine the impact that flaws would have on you* These determined by systematic analysis
of lessons learned within your business
Determine total score
Select flaws treatment
weight based on the score
Select the treatment based on the score at each
step
Score 80 – 120: Heavy Exposure
Score 80 – 120: Medium ExposureScore 0 – 39: Light Exposure
Step 1: Secure management commitment to Flaws management & identify project level
performance objectives
• Significant consideration by senior management• Features in the opportunity statement and specific resource
assigned to maximise opportunities at the earliest opportunity• Selection of treatments available determined and recorded by
the assigned Coordinator• Appoint, or secure support from, a specialist SME
EXAM
PLE
• Extent and style of treatment is determined by the Project Manager• Strategy is clearly stated in the opportunity statement• Future resources allocated to address
© 2016 Ken Ede LinkedIn https://au.linkedin.com/in/kenede Web: www.ignite1000.com