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Practicum 410

The document provides a project controls plan for a project to extend conditioning slurry pipelines at Shell Canada Energy's Jackpine Mine site to improve bitumen recovery. The plan outlines the project controls organization, scheduling, progress measurement, change management, risk management, reporting, and closeout. It aims to establish baseline control and ensure successful delivery of the project objectives.

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RajeshSekar
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0% found this document useful (0 votes)
270 views37 pages

Practicum 410

The document provides a project controls plan for a project to extend conditioning slurry pipelines at Shell Canada Energy's Jackpine Mine site to improve bitumen recovery. The plan outlines the project controls organization, scheduling, progress measurement, change management, risk management, reporting, and closeout. It aims to establish baseline control and ensure successful delivery of the project objectives.

Uploaded by

RajeshSekar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 37

Practicum, PRAC 410

Technical Report

PRACTICUM 410

TECHNICAL REPORT

PROJECT CONTROL PLAN WITH SHELL


CANADA ENERGY IN JACKPINE MINE SITE
-TAILINGS AND INFRASTRUCTURE
PROJECT.

TO:

MACPHAIL SCHOOL OF ENERGY

FROM:

RAJESH KALYAN SEKAR

STUDENT ID NO: 000583238

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Technical Report

Introduction
Jackpine Mine (JPM) is located about 70km north of Ft. McMurray, Alberta, and about
500km northeast of Edmonton. Shell Albian Sands (Shell) operates the mine on behalf of
the Athabasca Oil Sands Project (AOSP), a joint venture partnership between Shell
Canada Energy, Chevron Canada and Marathon Oil Sands L.P. The nearest community is
Fort McKay, located about 5km to the west. Ore Preparation and Primary Extraction
commissioning activities were completed at JPM in Q2-2010 with ore production starting
in Q3-2010. Bitumen production started on August 26th, 2010. Annual average single
train bitumen production of 100,000 Bbls/day versus an approved capacity of 200,000
Bbls/day;
Currently, bitumen recovery from the JPM Extraction facility is consistently below that
which was estimated in the original design basis. As such, overall plant bitumen
recoveries are consistently lower than Energy Resources Conservation Board (ERCB)
guidelines. In an effort to improve overall JPM bitumen recovery, Shell is currently
investigating a number of options and projects intended to increase the bitumen
recoveries over a wide range of ore blends in the Extraction unit. Extending the
conditioning slurry pipelines increases the likelihood that oilsand lumps will have
adequate time to ablate, and increases the potential that bitumen will ultimately coalesce
and aerate in a manner favorable to maximum flotation within the PSC (Primary
Separation Cell). Slurry conditioning is a critical step in oilsand processing. If the ore is
not sufficiently conditioned prior to entering the extraction process, that bitumen will not
be recovered.
The Projects intent is to replicate the existing system as much as possible with respect to
piping materials, pump selection, valves, etc., to allow for consistency in operations and
maintenance. The Project will apply the Oil Sands Catalogue Design for Modular Pump
Houses as part of Shells replication strategy for Tailings and Infrastructure pumping
applications, which is consistent with Shells overall contracting strategy.

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TABLE OF CONTENTS
1.0

OVERVIEW....................................................................................................................... 6

2.0

APPLICABLE JACOBS PROCEDURES ..................................................................... 7

3.0

PROJECT CONTROLS ORGANIZATION AND RESPONSIBILITIES .................. 8


3.1
PROJECT CONTROLS ORGANIZATION...................................................... 8
3.2
ROLES AND RESPONSIBILITIES ................................................................... 9

4.0

GENERAL........................................................................................................................ 14
4.1
DEFINITIONS AND KEY TERMS.................................................................. 14
4.2
PROJECT CONTROLS SYSTEMS ................................................................. 16
4.3
WORK BREAKDOWN STRUCTURE (WBS) ............................................... 16
4.4
PROJECT AND STAGE NUMBERING CONVENTION ............................. 17
4.5
WORK FLOW PROCESS DIAGRAMS.......................................................... 18

5.0

PLANNING AND SCHEDULING................................................................................. 18


5.1
INTERACTIVE PLANNING (IAP).................................................................. 19
5.2
SCHEDULE LEVELS ........................................................................................ 19
5.3
Module Program Schedule ................................................................................. 20
5.4
BASELINE MASTER SCHEDULE.................................................................. 20
5.5
MANAGEMENT LEVEL SCHEDULE ........................................................... 20
5.6
PROJECT LEVEL SCHEDULE....................................................................... 20
5.7
CONTROL LEVEL SCHEDULE ..................................................................... 21
5.8
LOOK-AHEAD SCHEDULES.......................................................................... 21
5.9
SCHEDULE CODING AND INTEGRATION................................................ 21
5.10 SCHEDULE UPDATES AND REPORTING .................................................. 21
5.11 CONSTRUCTION PLANNING/SCHEDULING............................................ 22
5.12 ADDITIONAL INPUT TO PLANNING/SCHEDULING .............................. 22
5.13 SCHEDULE BASIS ............................................................................................ 23
5.14 SCHEDULE CONTINGENCY (RISK) ANALYSIS....................................... 23

6.0

PROGRESS AND PERFORMANCE MEASUREMENT........................................... 24


6.1
PHYSICAL PROGRESS.................................................................................... 24
6.2
PRODUCTIVITY................................................................................................ 25
6.3
PROFESSIONAL SERVICES PROGRESS MEASUREMENT ................... 25
6.4
PROGRESS MEASUREMENT PROCUREMENT PHASE ...................... 26
6.5
PROGRESS MEASUREMENT CONSTRUCTION PHASE ..................... 26

7.0

CHANGE MANAGEMENT (VARIANCES) ............................................................... 26


7.1
IDENTIFYING POTENTIAL CHANGES ...................................................... 27
7.2
TIMING OF CHANGES .................................................................................... 27

8.0

RISK MANAGEMENT................................................................................................... 28

9.0

PROJECT CONTROLS REPORTING ........................................................................ 29


9.1
REPORTING PROCESS, INFORMATION FLOW ...................................... 29
9.2
DELIVERABLES................................................................................................ 29
9.3
REPORT FORMATS ......................................................................................... 30
9.4
WEEKLY WORKHOUR REPORT (WWR)................................................... 30

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9.5
MONTHLY REPORTS...................................................................................... 30
9.6
PROJECT REPORTING CALENDAR ........................................................... 30
9.7
REPORTING
LEADING
INDICATORS
AND
KEY
PERFORMANCE INDICES ......................................................................................... 30
9.8
REPORT REVIEW MEETING SCHEDULE ................................................. 30
10.0

STRUCTURING DATA FILES AND DATA LOCATION ........................................ 31

11.0

PROJECT CONTROLS CLOSE OUT ......................................................................... 31

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APPENDICES
Appendix 1

Project Controls Organization Chart

Appendix 2

Work Breakdown Structure (WBS)

Appendix 3

Reporting General

Appendix 4

Sample Schedules

Appendix 5

Project Controls Information Flow Diagram

Appendix 6

Sample Reports Home Office

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1.0

Technical Report

OVERVIEW

An effective Project Controls Plan (PCP) is the cornerstone of sound baseline control and
an essential element for successful achievement of the established goals and objectives of
the Shell Canada Energy (Shell) Tailing and Infrastructure (T&I) Program.
Proper integration of a Baseline Plan and all project controls reporting data is essential
considering the multi-project execution aspect of the Shell T&I Program. As such, this
PCP pertains to all Engineering, Procurement, and Construction (EPC) scopes of services
for all work to be undertaken on the Shell T&I Program.
The Baseline Plan includes the following key elements:

Prime Contract The version of the contract signed by Jacobs and Shell,
including any amendments or change orders.
Project Scope The written scope of work for each project. It includes both
the Scope of Facilities (SOF) and the Scope of Services (SOS).
Project Execution Plan (PEP) The overall execution plan for each project
that defines execution strategies and methods.
Project Estimate The estimate of the overall cost to execute each project. It
also includes the basis of the estimate and any other supporting documents.
Management Level Schedule The high-level schedule that defines major
activities and interfaces, summarizes the various phases of each project (e.g.,
Engineering, Procurement, and Construction), and identifies all major
milestones. This is also sometimes referred to as the summary level schedule
or the milestone schedule.
Risk Assessment The results of the Shell/Jacobs risk assessment process in
the form of a register and mitigation action plans.
Commercial Basis The commercial aspects of a project.

Project Controls supports project management to achieve the following key objectives:

Establish and align all members of the Program organization on the


importance of maintaining the Baseline Plan.
Implement appropriate and effective work processes and procedures.
Measure against the Baseline Plan and analyze performance.
Ensure a rigorous change management process.
Identify and mitigate cost/schedule impacts to the baseline before they occur.
Deliver the Program baseline.

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2.0

Technical Report

APPLICABLE JACOBS PROCEDURES

The following documents should be referenced in relation to the application of this plan:

Table 2.0-1 Applicable Jacobs Procedures

Applicable
Procedures/Documents

Jacobs

Corporate

CWI-130-005, Code of Accounts


GSOP-110, Risk Identification and Management
GSOP-130, Project Controls Standard Operating Procedures
PISOP-111, Project Risk Identification and Management
PISOP- and CWI-130, Project Controls Plan and Work Breakdown
Structure
PISOP- and CWI-131, Planning & Scheduling
PISOP-132, Estimating
PISOP- and CWI-134, Change Management
PISOP- and CWI-135, Performance Measurement

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3.0

PROJECT CONTROLS ORGANIZATION AND RESPONSIBILITIES

3.1

PROJECT CONTROLS ORGANIZATION

The T&I Program Project Controls organization consists of all Jacobs Project Controls
personnel located in the Jacobs Calgary Home Office (HO), fabrication shop, field
locations, and workshare offices. The EPC Project Controls Manager has full
responsibility across the Program. Standardization is critical, and Project Controls
practices, procedures, and methodologies must be applied consistently across all projects
and project phases of the T&I Program.

Figure 3.1-1: Project Controls Functional Org Chart

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ROLES AND RESPONSIBILITIES

3.2

The main roles and responsibilities of personnel on the Project Controls team are as
follows:
Home Office EPC Project Controls Organization

3.2.1

3.2.1.1.

EPC Project Controls Manager

3.2.1.2.

Reports to the T&I Program Manager (PgM).


Provides leadership and has ownership of the project controls effort for the
overall Shell T&I Program.
Ensures that proper cost and scheduling tools and processes are consistently
applied across the Program and projects, in accordance with Shell and Jacobs
corporate standards and T&I Program specifics.
Provides project controls support to the EPC Project Controls leads in terms of
practices/procedures, resources, and systems.
EPC Project Controls Lead

3.2.1.3.

Reports to the EPC PM and functionally to the EPC Project Controls


Manager.
Has ownership of the project controls effort for an individual project.
Implements project controls procedures in accordance with Shell and Jacobs
standards and Program specifics.
Ensures that the baseline cost breakdown structure is in line with the schedule
breakdown work structure, and that these two documents are in line with the
Engineering Work Packages (EWP).
Provides leadership, guidance, and applications support for Project Controls
personnel on the project team.
EPC Chief Cost Controller

Reports to the EPC Project Controls Manager.


Provides functional direction and support to the project EPC and Site Cost
Controllers.
Ensures that proper cost control tools and processes are consistently applied
across the Program and all projects, in accordance with Jacobs corporate
standards, contract requirements, and Shells standards and expectations.
Monitors and forecasts Program costs.
Ensures that each part of the Program budget has an owner to monitor and
forecast costs.
Ensures required documentation and approvals are received and recorded
prior to payments/commitments being made.
Manages the interfaces between Jacobs and Shell cost systems at the Program-

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3.2.1.4.

Technical Report

level and any required corrections of actual hours and cost to project and task
coding.
Establishes and maintains the mapping of Shell and Jacobs Cost Code of
Accounts (COA) to enable accurate cost reporting to Shell.
Assists with the timely identification and development of potential change
notices and cost change orders (CO).
Analyzes budget, commitment, expended, and forecast information for all
projects in the Program.
Provides cash flow reporting for the Program.
EPC Chief Scheduler

Reports to the EPC Project Controls Manager.


Provides functional direction and support to each project EPC and site
schedulers.
Ensures that proper planning and scheduling tools and processes are
consistently applied across the Program and projects, in accordance with
Jacobs corporate standards, contract requirements, and Shells expectations.
Prepares and maintains the Shell Program Master Schedule in Primavera P6
Enterprise, by logically linking and integrating subordinate project schedules.
Analyzes, revises, and updates the Program Master Schedule to reflect
ongoing changes and developments on individual projects.
Maintains the Master Schedule and coordinates planning.
Together with the Jacobs Engineering Design Systems (EDS) group,
maintains the security and integrity of all Primavera P6 Enterprise files for the
Program.
Ensures consistent application of scheduling standards, Work Breakdown
Structure (WBS), and scheduling methodology across the Program and all
projects.
Manages implementation and maintenance of the Primavera P6 Enterprise
scheduling system.
Coordinates with all project teams and third parties, to establish and maintain
the baseline schedule for the Program, and liaises with Shell for overall
schedule coordination.
Recommends any needed changes to the timing of project activities in order to
maintain resource levelling across the Program, taking into account the critical
paths of the projects and key/major milestones.
Prepares regular status updates and reports associated with the Program
Master Schedule.
Assesses and reports on the schedule impact of changes identified through the
Change Management System, and provides Time Impact Analyses (TIA) and
other supporting documentation as needed.
Provides ongoing critical path analysis and milestone status for the Program.
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3.2.1.5.

Technical Report

Provides quantitative and qualitative schedule risk analysis as required.


Assists with the identification and development of Program schedule
variances.
Oversees the schedule elements of the Program change process.
Estimating Lead and Estimators

3.2.1.6.

Report to the EPC Project Controls Manager and functionally to the


department head estimator.
Have ownership of each estimating effort.
Coordinate with the projects in order to provide estimating support as needed
throughout the life of the Program.
Ensure consistent application of estimating standards, WBS structure, and
methodology across the Program and all projects.
Provide leadership, guidance, and applications support for other Estimating
personnel.
Develop estimate plans as required and ensure implementation.
Provide a Basis of Estimate for estimates.
Provide estimate summaries and ensure proper reviews and approvals.
Assist in recasting project estimates into the budget COA for cost reporting.
EPC Project Scheduler

3.2.1.7.

Reports to the EPC Project Controls Lead and functionally to the Chief
Scheduler.
Leads and manages the scheduling function on the project, including
coordination with the site scheduler, third parties, and Shell.
In consultation with the project team, develops and maintains the overall and
detailed schedules for the project.
Leads Interactive Planning (IAP) sessions and coordinates EPC planning
requirements.
Analyzes and provides proper time phasing of engineering and construction
resources.
Identifies areas of risks and concerns in the schedule, and assists in proposing
workarounds and actions to mitigate schedule impacts to key project
milestones.
Through the Change Management System, assesses and reports on the
schedule of any impacts from identified changes, and provides Time Impact
Analysis (TIA) and other supporting documentation as needed.
EPC Project Cost Control Specialist

Reports to the EPC Project Controls Lead and functionally to the Chief Cost
Controller.
Ensures the Jacobs Project Control System (JPCS) system is correctly
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established and maintained for the project.


Manages the interfaces between Jacobs and Shell cost systems at the projectlevel and any required corrections to actual hours and costs to project and task
coding.
Manages the JPCS progress updating cycle for the project with the area and
discipline engineers.
Prepares JPCS reports and progress curves for the project.
Provides cash flow reporting for the project.
Identifies areas of risk and concern in cost, and assists in proposing
workarounds and actions to mitigate cost impacts to the project.
Assists with timely identification and development of potential change notices
and cost variances.
Prepares the project change log.
Site Project Controls Organization

3.2.2

3.2.2.1.

Site Project Controls Manager

3.2.2.2.

Reports to the Site Manager and functionally to the EPC Project Controls
Manager.
Has ownership of the site project controls effort for the Program.
Ensures that proper cost and scheduling tools and processes are applied across
the Program and projects consistently in accordance with Jacobs corporate
standards and Program specifics.
Provides support to the Site Project Controls leads in terms of practices,
procedures, resources, and systems.
Site Project Controls Lead

3.2.2.3.

Reports to the Site PM and functionally to the Site Project Controls Manager.
Has ownership of the site project controls effort for an individual project.
Implements project controls procedures at the site in accordance with Jacobs
standards and Program specifics.
Provides leadership, guidance, and applications support for project control
personnel on the site project team.
Site Project Scheduler

Reports to the Site Project Controls Lead and functionally to the EPC Chief
Scheduler.
Coordinates and manages the scheduling function on the project site.
In consultation with the project team, develops and maintains the overall and
detailed schedules for the project site.
Leads and manages the site scheduling function on the project, including
coordination with the EPC Scheduler, third parties, and Shell.

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3.2.2.4.

Technical Report

In consultation with the project team, develops and maintains the overall and
detailed site schedules for the project.
Leads IAP sessions and coordinates construction planning requirements.
Works with the EPC Scheduler to analyze and provide proper time phasing of
engineering and construction resources.
Identifies areas of risk and concern in the schedule, and assists in proposing
workarounds and actions to mitigate schedule impacts to the project key
milestones
Assesses and reports on the schedule impact of changes identified through the
Change Management System, and provides TIA and other supporting
documentation as needed.
Co-ordinates with the EPC Project Scheduler on construction planning
requirements.
Develops detailed construction work schedules for the project site.
Manages and co-ordinates the development of detailed pre, post, and
commissioning work schedules.
Identifies areas of risk and concern in the schedule, and assists in proposing
workarounds and actions to mitigate schedule impacts to the project.
Site Project Cost Control Specialist

Reports to the Site Project Controls Lead and functionally to the EPC Chief
Cost Controller.
Works with the EPC Cost Controller to ensure the JPCS system is correctly
established and maintained for the project.
Manages the interfaces between Jacobs and Shell cost systems at the projectlevel and any required corrections of actual hours and cost to project and task
coding.
Manages the JPCS progress updating cycle for the project with the area and
discipline engineers.
Prepares JPCS reports and progress curves for the project.
Provides cash flow reporting for the project.
Identifies areas of risk and concern in cost, and assists in proposing
workarounds and actions to mitigate cost impacts to the project.
Assists in the timely identification of potential change notices and cost
variances.
Works with the EPC Cost Controller to ensure the project change log is
maintained for the project.

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Practicum, PRAC 410

4.0

GENERAL

4.1

DEFINITIONS AND KEY TERMS

Technical Report

Definitions and key terms used in project controls processes include:


Approved Budget: The sum of the original budget plus all approved change orders (or
variations).
Change Order: Results in a change in scope of work or scope of services (including
execution approach). Requires Shell approval and may impact the project budget, project
schedule, or both. Also referred to as scope change or variation as described in the
governing contracts.
Construction Work Package (CWP): A number of project activities or tasks that are
required to address the needs of a construction package. While a task is required to be
single discipline, a package may be made up of a number of tasks containing a mixture of
disciplines.
Cost Breakdown Structure (CBS): An hierarchical classification of project costs by the
type of costs.
Estimated to Complete (ETC): The estimated cost in hours or dollars to complete the
work. ETC hours are calculated or estimated based on productivity experience to date
with judgement of what productivity is likely to be achieved on the remaining hours to be
earned.
Engineering Work Package (EWP): A number of project activities or tasks that are
required to address the engineering needs of a procurement or construction package.
While a task is required to be single discipline, a package may be made up of a number of
tasks containing a mixture of disciplines.
Field Installation Work Package (FIWP): A smaller, manageable piece of work in the
field for an EWP that is broken down, whenever practical, by WorkFace Planners to the
equivalent of one full work shift for a crew of 10 craft (based upon 10 hour shifts and a
10 day rotation).
Forecast: The periodically updated forecast at completion of the anticipated final hours
and costs of the scope pertaining to the budget. Forecast is equal to the actual-to-date
plus the estimate to complete.
Original Budget: The Original Project Estimate as approved and, if necessary, re-cast to
create the project budget in a suitable format of cost accounts consistent with the WBS
for cost control.
Period: Elapsed duration between updates of Project Control reports (cost and schedule),
such as a report period. A report period may be weekly, twice per month, monthly, or
quarterly.

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Productivity/Performance: A relative measure of efficiency, either good or bad, when


compared to an established base or norm. The base to be used in reporting calculations is
the projects current approved or revised budget.
Progress Gates (Milestone Gates): Defined steps used in the measurement of progress for
deliverables, normally a physically identifiable stage in the production of a deliverable or
group of deliverables.
Project Baseline: Includes the prime contract, scope of work, approved budget estimate,
Level 1 Schedule, Risk Management Plan, and Program Execution Plan (PEP).
RFSU (Ready For Start-Up): Plant has been Pre-Commissioned and Commissioned and
is ready for start-up.
Work Breakdown Structure (WBS): A hierarchical breakdown of an overall project scope
into smaller components that can individually be more accurately controlled and reported.
Work-hours: All hours spent by people on a project are called man-hours in this
document, for ease of reference. Hours spent in the projects HO may at times be called
home office hours, hours in the field office may be called field office hours, while work
carried out by the contractor may be called field work-hours.

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Practicum, PRAC 410

4.2

Technical Report

PROJECT CONTROLS SYSTEMS

The main systems to be implemented on the Shell T&I Program include:

Primavera P6 Enterprise: Planning and Scheduling Works (latest version)


JPCS: TIC and EPCM Services Cost Control and Engineering Progress
Measurement
SPORTS/JMMS: Supply Chain Management Status/Graph
ETS: Employee Timesheet System for reporting Professional Services time
FLA: Field Construction and Module Progress Measurement
FTS: Field Timesheet System for reporting field construction hours
Pertmaster: Project Schedule Risk Analysis
Excel: Estimating/Reporting
Risk: Cost Estimate Risk Analysis
Oracle/GFS: Jacobs Finance / Accounting System

Actions will also be undertaken with Shell, as required, to implement system database
integration for PRISM G2 and Primavera.

4.3

WORK BREAKDOWN STRUCTURE (WBS)

The WBS involves breaking Program/project work down into smaller elements to
facilitate effective management and control. The WBS may identify pit stops, contractor,
geographical areas, or functioning systems of the operating plant and their respective
EWPs.
The other aspect of work structuring is the development of an organizational breakdown
structure (OBS), which involves breaking the work effort into the resources required to
perform the activities addressed in the WBS. This establishes responsibility for the work.
The WBS, OBS, and COA establish the overall cost and schedule control structure for the
various phases of the Program/project (i.e., Engineering, Procurement, Construction).
Portions of work execution are then bundled into cost/schedule control elements in
accordance with the WBS, as represented by work packages, purchase orders (PO), and
subcontracts. These elements are then established to meet the project control and
reporting requirements.
Since the work scope of the Shell T&I Program is evolving over time on a project by
project basis, the Program-level WBS remains flexible while each project WBS is unique.
The WBS and COA structuring convention for the T&I Program is included in Appendix
2.

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4.4

Technical Report

PROJECT AND STAGE NUMBERING CONVENTION


Engineering and Procurement (EP)

4.4.1

Shell Program project numbers for EP work under the T&I Program Contract follow the
CE42xxyy coding, where:

CE denotes Calgary Engineering-led projects.


xx denotes individual project numbering, and is sequential. yy denotes
project phase. For example:
10 = Identify and Assess
20 = Select
30 = Select/Define Bridging
31 = Define
40 = Define/Execute (Detailed Engineering and Procurement) Bridging
41 = Execute (Detailed Engineering and Procurement)
50 = Execute (Construction i.e., HO support to construction)
55 = Execute (Construction i.e., JCI site assignments supporting
construction)
60 = Modules (i.e., project-specific interface with the Module Program)
Construction Procurement and Construction Management (CPCM)

4.4.2

Shell Program project numbers for CPCM work under the T&I Program Contract follow
the TP41xxyy or - CC43xxyy or CE42xxyy coding, where:

TP denotes Triton-led projects, CC denotes JISL-led projects, and CE refers


to Calgary Engineering-led projects.
xx denotes individual project numbering, and is sequential.
yy denotes project phase. For example:
10 = Assess
20 = Select
30 = Define
40 = Execute (Detailed Engineering and Procurement)
50 = Execute (Construction)
60 = Modules (i.e., project-specific interface with the Module Program)

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The majority of projects under the CPCM contract will follow the 50 or 60 phase
numbering. Phase numbers 10, 20, 30, and/or 40 will only be required in the event a
CPCM-sanctioned project involves early engagement in the EP contractors design
activities unless craft staff is to be engaged.

4.5

WORK FLOW PROCESS DIAGRAMS

See Appendix 5, Project Controls Information Flow Diagram.

5.0

PLANNING AND SCHEDULING

The major emphasis of planning/scheduling (P/S) is to achieve the defined


Program/project objectives, taking into consideration areas of risk and float to mitigate
potential schedule impacts. Factors considered in P/S include, but are not limited to:

required completion dates

EWP development

permit submittal requirements

resource loading

procurement strategy

area congestion

long lead equipment deliveries

impact of modularization

vendor data requirements

systems turnover

contracting strategy

weather restrictions

The Engineering and Procurement schedules are developed with reference to the detailed
engineering estimates. They are resourced with Engineering and design work-hours per
discipline. These schedules include the achievement of key milestones and the detailed
engineering and design activities logically sequenced to feed into the construction
process. The schedules are resource-levelled to ensure that the schedule is achievable
with the available resources. The engineering schedule is reviewed with each
engineering discipline lead and the Engineering Manager and PM prior to acceptance and
baselining. Data from the baselined Level 3 Engineering and Procurement schedules is
exported to the progress measurement system to establish the planned progress curves for
each discipline.
The procurement of all major material and equipment as reflected in the Procurement
Plan is shown on the schedule. The individual steps and durations involved in the
procurement process (i.e., from material requisition [MR] to delivery on site for each
purchase order [PO]) are reflected in the Procurement Plan and status reports, but are
represented in summary only in the P6 schedule.
During the EP project phase, construction schedules are initially developed to Level 2
details to show the overall sequence of construction activities, establish the key
construction milestone dates, and provide an overall critical path through the project.
The construction methodology and work package definition are progressively developed
to Level 3 during later stages of the EP phase in accordance with the relevant procedure.

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INTERACTIVE PLANNING (IAP)

Interactive planning is required on all projects over 5000 hours and is recommended for
all projects. The IAP is the first step used to establish agreement by all project
stakeholders in development of the overall project schedule. The IAP output defines the
dates for major milestone events, project phases, interrelationships of major activities,
and any dependencies on outside parties.
This process is used by PMs, PC leads, discipline lead engineers, planner/schedulers, and
other project team members.
The detailed objectives of the IAP process are to:

5.2

understand the clients objectives


establish overall schedule goals
identify constraints/risks to meeting goals
develop a list of activities that each discipline/department must accomplish to
meet the goals
establish a sequence of activities and agree on the interrelationship among
departments
establish key milestones
build teamwork among all members of the project team and develop
communication channels
identify action items required

SCHEDULE LEVELS

Schedules are developed and managed at four levels:

Level 1 (Management Level Schedule) is a high level summary of the


Program/project for management/corporate level presentation. The Level 1
schedule is a simple representation of the project execution intent and serves
to keep Jacobs and Shell appraised of the overall project timeline, key events,
and status. This schedule forms the parameters for the subordinate Level 2,
Level 3, and Level 4 schedules and associated staffing plans. The Level 1
schedule also aids in identifying areas of risk and acts as a high-level road
map for alignment of task force members.
Level 2 (Project Level Schedule) is an integrated Critical Path Method (CPM)
schedule that defines the timing of all major project activities and the
relationships among them. The Level 2 schedule forms the basis for the
development of the control level schedules. Properly implemented, the Level
2 schedule allows true what if analysis and identification of schedule-based
changes and impacts. Similarly, if the correct level of detail is included, this
schedule also allows for schedule risk analysis to be performed as needed.
Level 3 (Detailed Level) is a working level detailed schedule that is developed
for the project, comprising detailed schedules for each discipline of
engineering, procurement, contracts, offsite fabrication, construction, and pre-

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commissioning works.
Level 4 schedules are detailed schedules developed by construction
contractors and approved by the EPCM contractor for execution of the work.

MODULE PROGRAM SCHEDULE

At the end of a projects Define Phase, Level 3 Construction and Module Schedules are
developed and approved by the Construction and Module managers. A separate schedule
for the module fabrication program is prepared and maintained based on input from the
individual vendors (e.g., Triton fabrication shop) and other material suppliers. Since the
module fabrication effort is recognized as a Critical Path, it is developed based on a
level of detail required to maintain effective control, with rigorous updates and reviews
conducted on at least a bi-weekly basis. The module schedule update is issued to all
affected projects and analyzed in detail for any potential impact. Any potential impacts
from the module program is handled via the Change Management process by each
representative project and mitigated accordingly.
5.4

BASELINE MASTER SCHEDULE

The overall Shell T&I Program is monitored and controlled via the Master Schedule and
subordinate project schedules in Primavera P6. The Master Schedule integrates all
subordinate project schedules though inter-linking logic and displays major milestones
and key events. The Master Schedule has the capability of providing baseline and current
schedules at the level of detail desired through roll-up and summaries of the project
schedules.
Key activities associated with preparation of the Master Schedule include:

5.5

Reviewing the overall time frame of the Program and relationships between
the individual project phases.
Evaluating the feasibility and optimization of required dates and associated
progress and resource levels.
Preparing the schedule cooperatively with Jacobs and Shell project
management personnel.
Considering project-specific risks or concerns.

MANAGEMENT LEVEL SCHEDULE

This is a one or two page document at the equivalent of a Level 1 schedule outlining the
Program/project objectives and major milestones.
5.6

PROJECT LEVEL SCHEDULE

Features of the Project Level Schedule include:

Key project milestones, gates, and work-hour resources.


Ability to produce critical activity reports based on the schedule as defined for
the Commitment Stage from the IAP session.
Intelligent coding to produce required grouping and sorting of the schedule.

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The scope of work, logically linked, with no open ended activities.


Identifies inter-dependencies between disciplines and third parties.
Activities directly related to deliverables managed in the control level
schedule.
Summarization and roll-up capability at the total project and Program level for
project management reporting.

CONTROL LEVEL SCHEDULE

The Control Level Schedule is prepared, managed, and updated by the functional leads at
a discipline level. It contains the following criteria:

5.8

Derived from and aligns with the project level schedule time frames.
Detailed activities and deliverables list, as well as documents which have the
ability to control day-to-day activities.
Point of analysis for change management.

LOOK-AHEAD SCHEDULES

Level 2, 3, and 4 schedules are the basis of providing look-ahead schedules on an asneeded basis.
5.9

SCHEDULE CODING AND INTEGRATION

Schedule activities are coded so that activities in the schedule are integrated to match
activities in the JPCS Deliverables Status Report (DSR). Schedules may also be coded
with procurement and contract package numbers for easy identification of the work
breakdown elements.
5.10

SCHEDULE UPDATES AND REPORTING

All schedules are fully updated, reviewed, and approved per the Program and Project
Reporting Calendar at least semi-monthly. The current updated schedules are included in
the Project Monthly Report. Schedule updates are prepared by the P/S group in
conjunction with the projects Engineering, Procurement, Contracts, and Construction
Management teams and reflect the current status and forecast of each Engineering,
Procurement, Contract, and Construction activity.
Milestone and Critical Path analysis are documented along with pertinent schedule
remarks in a report to accompany each schedule issue (see Appendix 6).
Project schedulers review the schedule for status updates with each discipline/department
stakeholder. The stakeholders and project management review and approve each update
prior to final issue.

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5.11
5.11.1

Technical Report

CONSTRUCTION PLANNING/SCHEDULING
Construction Schedule Level 3

A detailed construction schedule is prepared during the Execute Phase (Detailed


Engineering) and before field mobilization. The Project Scheduler reviews all major
subcontractor schedules so that they are aligned and consistent with the overall Project
schedule. Once resource loaded, approved, and accepted; the detailed schedule becomes
the target for construction work and establishes the basis for progress and performance
measurement.
5.11.2

Construction Sign-off

During completion of the construction activities and before construction turnover, a series
of curves are developed to monitor and control the progress of facility completion and
sign-off of care, custody, and control to Shell.
5.11.3

System Completion and Turnover Schedule

A detailed system completion and turnover schedule will be prepared as early as possible
in the Construction Phase of a T&I project. This will include work activities required to
support Pre-Commissioning and Commissioning towards achievement of the Ready for
Start up (RFSU).
5.12
5.12.1

ADDITIONAL INPUT TO PLANNING/SCHEDULING


Field Need Dates / Required At Site (RAS) Dates

A comprehensive listing of field need dates for main equipment tags, material
commodities, and subcontracts is developed based on the project schedules and
construction priorities. This listing is communicated to all members of the project and
Shell teams.
5.12.2

Requisitioning and Procurement Event Tracking Plan

This detailed plan is developed and maintained by the Procurement team. Planning and
Scheduling advise field RAS dates and validate the plan against the project schedules,
while taking construction priorities and EWPs into account. Actual and forecast dates are
incorporated into schedule updates based on Procurement reports and transmittals.
5.12.3

Subcontract Event Tracking Plan

This detailed plan is developed and maintained by the Contract team. Planning and
scheduling validates the plan against the project schedules taking construction priorities,
material deliveries, and engineering deliverable production into consideration. Actual
and forecast dates are incorporated into schedule updates based on subcontract reports
and transmittals.

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5.13

Technical Report

SCHEDULE BASIS

When each schedule is initially issued or when a substantial change is made, a Schedule
Basis is included with the schedule. The Schedule Basis outlines the thought process,
logic, rules, constraints, and objectives that the planner has followed in the development
of the schedule.
5.14

SCHEDULE CONTINGENCY (RISK) ANALYSIS


Initial Schedule Risk Analysis

5.14.1

Schedule contingency analysis is of the greatest value when using critical path method
(CPM) scheduling. Once the critical path is identified, activities are evaluated to
determine which pose the greatest schedule risk. Adjustments can then be made (if the
flexibility realistically exists) to the durations of those critical activities to increase their
float and provide contingency. These adjustments must be discussed and approved by the
client and project management. Activities receiving particular scrutiny should include
those that could be effected by:

Resource availability (design and construction)


Delayed vendor information
Weather delay
Labour productivity
Late deliveries
Underestimated quantities

Identifying schedule risk requires establishing a range of duration estimates for project
activities. Applying optimistic, most likely, and pessimistic durations to schedule
activities results in a probabilistic range in the project completion date. Jacobs uses the
analysis tool Pertmaster to perform multiple simulations of randomly drawn probabilities.
The Monte Carlo technique is used to evaluate risk and to run simulations of the project
schedule.
In general, the Pxx number defines the uncertainty of the duration of the schedule. That
is:

P10 means the project duration has 10% probability of under-running and
90% of over-running the finish date.
P50 means the duration of project has equal probability of under-running or
over-running the finish date.
P90 means the project duration has 90% probability of under-running and
10% of over-running the finish date.

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Construction Schedule Risk Analysis

5.14.2

A schedule risk analysis workshop is conducted during the Execute Phase (EPC) prior to
the Construction Readiness Review (CRR) to estimate and agree with Shell on the
schedule contingency in terms of duration and cost. The risk ranges are reviewed and
agreed on for the activities on the critical path (defined as 0-20 days of total float). Some
of the considered event-driven risks are (but not limited to):

Module and major equipment delivery delays


Turnaround tie-in delays
Delays in issuing EWPs/FIWPs
Highway delays
Inclement weather
Major disruptions such as plant evacuation, etc.
Lunchroom space limitation
Camp space limitations
Difficulty in getting craft labour due to increasing work around the site
Availability of competent labour force, etc.

A log is maintained to record the schedule delays due to events mentioned above to
account for the lost work days resulting in schedule slippage. Actions are taken to
mitigate and maintain the ready for start-up (RFSU) date. However schedule
contingency rundown traces back to the occurrence of a risk that couldnt be mitigated
during the course of the project execution.
6.0

PROGRESS AND PERFORMANCE MEASUREMENT

Measurement of a projects physical progress and performance against baseline criteria of


budget and schedule are the essential elements of controlling the project. An accurate
measure of progress serves as the basis for assessing budget and schedule performance,
forecasting costs, and implementing corrective actions. Monitoring the projects actual
data against the control baseline at regular intervals provides immediate feedback to the
PM and team on the health of the project.
Progress and performance measurements are applied to the projects and total Program at
the discipline level for HO Engineering and Procurement services, and at the primary
account level for Construction (i.e., excavation, concrete, steel, piping, etc.). In addition,
progress measurement is provided for the procurement of materials and equipment.
6.1

PHYSICAL PROGRESS

Physical progress is the measure of the completed portions of the work against the total
work. It is not calculated based on percent of expended hours over total budgeted hours.
Physical progress is based on the weighted value of actual work completed. Progress
(percent complete) is measured by using a weighted average method of computing earned
hours or work units. The progress reporting system for engineering, for example, is set
up as soon as a reasonable breakdown of drawings, specifications, and other deliverables

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or activities is available for the various design disciplines to input into JPCS. This occurs
after approval of the initial project cost budget.
Estimated hours or work units are allocated to each work scope line item, thus assigning a
weight relative to the respective discipline or craft control budget. By determining the
percent complete for each deliverable, group of deliverables, or activity at the end of a
reporting period, the earned hours are calculated as follows:
Earned Hours = Percent Complete Performance Budget Hours
The total hours earned from work completed, divided by the total control budget hours,
determines the percent complete (physical progress) for each discipline or craft. Using
this same weighted average method based on earned hours, progress is then summarized
by area/unit, system, project, and overall Program.

6.2

PRODUCTIVITY

Productivity is a measure of efficiency in execution and is calculated using the following


formula:
Earned Hours
Productivity=
Expended Hours
Thus, productivity is a measure of work accomplished versus actual expenditures and is
calculated on both an incremental and cumulative basis at the end of each reporting
period. A calculation greater than 1.00 indicates work is being performed more
efficiently than that defined by the performance target, whereas productivity less than
1.00 is an indication of less efficient work. Significant variations either way are cause for
a potential deviation from the control base.
6.3

PROFESSIONAL SERVICES PROGRESS MEASUREMENT

Performance Budgets for HO and site professional services are entered into the JPCS
Deliverables Status Report (DSR) at a sufficient level of detail to enable complete
progress measurement and forecasts (see Appendix 6).
Actual hours expended are entered in the timesheet system against the codes representing
the tasks carried out on a weekly basis. Earned hours are calculated against deliverables
in accordance with the engineering procedure for progress measurement, following
agreed standard engineering progress profiles. These are used to calculate percentage
complete, which is then applied against the approved target budget to arrive at earned
hours.
Duration based method (level of effort) is applied to the support disciplines and general
tasks that are estimated/budgeted based on distribution of effort hours over the projects
duration. Percent complete is determined based on percent time expended over total
discipline time.

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6.4

Technical Report

PROGRESS MEASUREMENT PROCUREMENT PHASE

The Procurement Phase of equipment and materials consists of two components:

The engineering components of the procurement process, which includes


specifications, datasheets, enquiry requisitions, technical bid evaluations, and
purchase requisitions that are measured and reported as part of the engineering
effort and are therefore included in the previous section.
Manufacture and delivery of the equipment and materials are measured
separately and are shown on a procurement progress curve.

Each requisition is initially weighted according to its budget value from the project
control budget. Progress measurement is the earned value, based on the status of each
PO (by progress stage achieved) at the time of the schedule update.
6.5

PROGRESS MEASUREMENT CONSTRUCTION PHASE

Construction and Commissioning activities are controlled at the task level and are entered
into the Field Labour Analysis (FLA), with weighted milestones for earned value
reporting. Construction progress is monitored at each task level. The actual completion
percentage for each activity is calculated by measurement of installed quantities to
calculate physical percentage complete. The control baseline quantity of work measured
is adjusted accordingly as required based on approved Change Notices.
7.0

CHANGE MANAGEMENT (VARIANCES)

The key to mitigating adverse impacts to the Program/project is early identification,


notification, and evaluation of changes to the project baseline.
The objectives of the change management process include:

Analyze events and variations in scope and project execution cost and
schedule as they occur.
Facilitate prompt identification and notification to Jacobs and Shell
Management in accordance with the governing contracts.
Implement mitigation actions in a timely manner to avoid impacts and
maintain control of the Baseline Plan.
Reflect approved changes in all Program and project reporting tools to
maintain consistency in the baseline documentation.

The Project Controls team administers the Change Management System, making sure that
all project team members understand the process, logging, and maintaining the status of
all identified changes, facilitating change management meetings, expediting the
approval/disposition stage, and incorporating changes in the cost and schedule reports.
Change management is a shared responsibility among all organizations on the project.
All project personnel have the responsibility to notify project management and Project
Controls of any potential change as soon as they are recognized, so that processing of the
changes can be initiated as appropriate.

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Technical Report

IDENTIFYING POTENTIAL CHANGES

Changes are the mechanism by which variations to the project baseline are documented.
Identification and documentation of changes is the responsibility of every member in the
integrated project team. When a team member becomes aware of a condition that may
result in an impact to the project baseline (control budget, estimated quantities, project
schedule, etc.) a potential change notice is initiated.
The project team uses the following strategy to ensure that EPC efforts are appropriately
aligned with the project cost estimate:

Project deliverables and effort-hour estimates are compared with the initial
estimate to identify any significant changes in scope, duty, size, etc. (and
hence in the anticipated cost).
Supplier prices are compared with the prices used in the project estimate to
identify any significant differences.
Quantities of bulk materials are compared with the amounts included in the
project estimate.

During the design of the project, the majority of the changes are identified by the
Engineering team, who are most familiar with changes from the design basis.
In addition, through the normal forecasting process, the Project Controls team performs
comparisons to the control base that include, but are not limited to: take-off quantities
(supplied and updated by the Engineering team), unit prices, effort-hours, changes to
equipment or specifications, and changes in project execution. Any changes identified as
a result of these comparisons are processed through the Change Management System.
The change management process may include weekly meetings to review all new
potential changes and to speed processing and resolution of open items. These meetings
are chaired by the Change Management Coordinator or other approved management
designee and attended by the key project leads.
The responsible project or area manager approves all potential changes before they are
submitted for further processing.

7.2

TIMING OF CHANGES

Pursuant to the Contract, notification and approval of COs, or Variances, must be


requested from Shell within seven days of occurrence. Likewise, fully detailed estimates
with supporting documentation must be subsequently submitted to Shell within seven
days following the request. No CO work will proceed unless prior approved by Shell.

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8.0

Technical Report

RISK MANAGEMENT

Jacobs applies its risk management process to identify, assess, and manage Program and
project risks. Risk management is accomplished through facilitated workshops or
meetings. Specific team members selected by project leadership from Shell and Jacobs
participate in the risk management process. To promote successful and productive
meetings, the selected team members need to become familiar with key project
documents, including:

Scope of Work
Contract(s)
Project Execution Plan
Material Management (Procurement) Plan
Project Budget
Project Schedule
HSSE Plan
Other data that fully define the Program, its objectives, and the baseline.

Each team member is asked to identify their top risks and opportunities in advance of the
workshop.
Shell business issues may be included in the process. These lists are submitted to the risk
management facilitator for initial input to the risk register for further refinement. In the
initial risk management session, participants are given an overview of the process with a
list of terms and definitions. The team establishes a project-specific severity index and
sets the general expectations for the session. As a group, the team members review
standard and specific risk lists and collectively brainstorm additional contractual,
business, technical, local, and execution risks. These additional risks and opportunities
are captured in the Risk and Opportunity Register.
The next phase of the process involves evaluating the severity and likelihood of these
events occurring and establishing mitigated and unmitigated values for each risk item. In
the third and final phase of the process, the team develops mitigation strategies, assigns
team members to be responsible to implement the selected strategies, and sets the
implementation schedule.
Final risks, opportunities, and strategies are recorded and inserted into reports.
Beyond the initial risk assessment, follow-up review/update workshops are convened as
the projects transitions into subsequent phases, or in the event of a significant trigger
event.
In between these formal group updates, risk monitoring is performed on a more frequent
basis by the identified risk representative as required.

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9.0

Technical Report

PROJECT CONTROLS REPORTING

Proper coordination and integration of Project Controls information for multi-project


EPC work being executed in parallel across different geographical areas is essential to
provide Shell and Jacobs management with timely and accurate reports. This section
describes the deliverables, formats, timing, and frequency required to produce the
required reports.

9.1

REPORTING PROCESS, INFORMATION FLOW

The following illustrates the flow of data for the updating and reporting cycle:
Project Manager / Project Engineer

Construction Manager

Progress
Update

Planning
Level 1
Planning
Level 2
Planning
Plan
Level 3

Site
Progress
Measurement

Fcast

Timesheet
Entry
Plan

Fcast

Fcast

Plan

Engineering
Progress

Progress
/ Forecast
Update

Procurement

Figure 11.1-1: Reporting Data Flow


Work flow diagrams are also available in Appendix 5.
9.2

DELIVERABLES

All PC document distribution follows the Document Distribution Matrix (DDM)


established for the program and the individual projects. In addition to internal project
team distribution, all project monthly reports are to be issued to:

Jacobs and Shell Program Managers


Jacobs and Shell Construction Managers
Jacobs Program Senior Projects Manager
Jacobs and Shell Program Project Controls Managers
Jacobs corporate management (as specified by the Jacobs Program Manager)

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9.3

Technical Report

REPORT FORMATS

See the appendices for samples of the different PC reports for the T&I Program.

9.4

WEEKLY WORKHOUR REPORT (WWR)

Each week the project issues WWRs for Shells information. The WWR shows each
person charging for that week with hours spent for that week and the To Date, grouped,
and sub-totalled by discipline and by total project. The Jacobs EPC PC Manager, PM,
and Shells representative sign and date the report (refer to Appendix 6).

9.5

MONTHLY REPORTS

Each month the project prepares summary progress reports for Jacobs and Shell project
management review. These reports summarize and consolidate the costs, progress, and
status of the project, including identification of any major items of concern along with
recommended actions for resolution.
Where required, transfer of data between Jacobs and Shell systems is via data export to
transferrable files (e.g., Primavera XER files, Excel data exports from Oracle, etc). The
exact format and frequency of these file transfers will be determined at a later date.
The content of the reports depends on the current phase of the project.

9.6

PROJECT REPORTING CALENDAR

The Project Reporting Calendar is used to define reporting periods and report issue dates.
This calendar is a mechanism to make sure that all parties involved in the project are
aware of the project due dates and their relationships to the Jacobs fiscal calendar. The
Project Controls Reporting Calendars are included in Appendix 3).

9.7

REPORTING LEADING INDICATORS AND KEY PERFORMANCE


INDICES

Each project documents KPIs and summarizes them into Program KPIs (refer to
Appendix 5)
9.8

REPORT REVIEW MEETING SCHEDULE

Standard meeting schedules are established to review Project Controls reports (see
Appendix 3).

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10.0

Technical Report

STRUCTURING DATA FILES AND DATA LOCATION

Access to the Project Controls folders is authorized by the EPC Project Controls
Manager, Site PC Manager, or PC leads.
File folders are structured consistently between projects at a summary level as shown
below. Additional folders may be created based on the needs of each project:

11.0

Administration
Change Management
Contracts
Cost
Estimating
Procurement

Progress
Scheduling
Reports
Daily
Weekly
Monthly

PROJECT CONTROLS CLOSE OUT

A final copy of key Project Controls deliverables is published for close-out reporting.
REFERENCES
1, ERCB shell tailings and infrastructure project. http://www.ercb.ca/oilsands/tailingsplans/Shell_2009_Jackpine_TailingsPlans.pdf 01-May-2013
2, Project control plan. http://www.scribd.com/doc/19068474/Project-Control-HandbookImplementation-Plan 01-May-2013

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APPENDIX-1

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APPENDIX-2

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APPENDIX-3

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APPENDIX-4

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APPENDIX-5

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APPENDIX-6

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