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The Big Problem of Small Projects

SESSION 1. The Big Problem of Small Projects. Practical Solutions for Sustaining / Improving Production with Limited Resources for Capital Projects. ECC Future Leaders Group. Abbey King Process Engineer BE&K. Jeff Dressel Manager of Business Development KBR. Byron Elliott

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The Big Problem of Small Projects

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  1. SESSION 1 The Big Problem of Small Projects Practical Solutions for Sustaining / Improving Production with Limited Resources for Capital Projects ECC Future Leaders Group Abbey King Process Engineer BE&K Jeff Dressel Manager of Business Development KBR Byron Elliott Engineering Manager Shaw Energy & Chemicals Helen Mott Regional Inside Sales Mgr Jacobs Engineering

  2. Contributors • Hayley Brown – Bentley • Ron Feken - DuPont • Julie Lambert - ConocoPhillips • Michelle McNichol – Mustang • Allison Miller Drobniak- Mustang • Jeff Pratt - Flowserve • Mauricio Villegas - Worley Parsons

  3. Outline • What is a Small Project? with Interactive Questions • Survey results • Problems with small projects • Solutions for small projects • Outside the Box Ideas

  4. Audience Response Questions: • Are you from an: • Owner • Contractor • Supplier • Other • What do you consider to be a small project ($TIC)? • <$1 million • $1-9 million • $10-$100 million • $101-$300 million • >$300 million

  5. < $1 million $1-10 million $10-300 million >$300 million What’s a Small Project: • CII definition: $100,000-$2 million ECC FL Survey (May 2008) Daratech Survey (May 2008)

  6. Small Projects Definition • Differs company to company • Relative to the size of the company • Fewer project controls • Shifts based on total industry work-load • Generally, no technical specialists • Schedule may be shorter

  7. Large Project Adherence to standardization Supports specialists Multiple company interface Difficult Communication Dedicated staff Big sticks Potentially large bonuses or penalties Small Project Flexible and fit-to-purpose More diverse skill-sets needed Single source Easier Communication (fewer parties) Part-time staff- High turn-over Little or no sticks Potentially small bonuses (if any) or penalties Large Projects vs. Small Projects

  8. Audience Response Questions: • Do you use employees with less than 5 years experience to manage jobs? • Yes • No • What percentage of these employees manage multiple projects? • 0-20% • 20-40% • 40-60% • 60-80% • 80-100%

  9. Small Project Survey Highlights • 50% of companies use employees < 5 yrs experience to manage • 88% of employees manage multiple projects. 43% of those manage 5 or more at a time. • Does your company have a separate small projects Group: • Owners: Yes – 50% No – 50% • Contractors Yes – 42% No – 58%

  10. Audience Response Question: • What is your Small Project Attitude? • Necessary Evil? • Bread and Butter? • “Foot in the Door” of a client? • Ignored? Overlooked? • Strategic Priority?

  11. The Cost of Not Caring • Small projects typically make up 25%-50% of your budgets / backlog (Higher for Operators - Lower for Contractors) • Training ground for large projects • Poorly executed small project today could mean loss of a large project tomorrow • Risk to Company Reputation • Impact on Company, Culture, and Morale

  12. Problems • Project prioritization and adequate basic data • Limited budgets vs. fast schedules • People: experience and retention issues • Managing multiple projects • Gaining the attention of key stakeholders when required to ensure projects are properly scoped and executed with minimal rework. “Flexibility of engineering and design resources to work multiple projects effectively. If resources are loaded full time on small projects, they become less cost effective and productivity actually declines because more hours are spent against limited budgets.”

  13. Current Small Project Techniques* • Preventing Staff Turnover • Bundling Projects (Leverage knowledge and experience) • Mentoring / Career development • Multi-skilled Staff • Defined roles / responsibilities / dedicated team • Good Communication and Teamwork • Recognition of value vs. cost of right staff • Competitive compensation / bonuses / rewards • Top management visibility and emphasis *taken from CII Small Projects Toolkit

  14. FL Survey Results:What tool / procedure has had the greatest positive impact on small projects in your industry? • “Six Sigma” • “Project Controls (cost, schedule, material control)” • “Integrated Project controls and execution software” • “FEL Process” • “Small project delivery model. This process will allow small projects to gain the discipline and rigor of large project delivery without being too onerous.” • “Globalization of work methods, modern communication tools, cost estimating spreadsheets, archived lessons learned & client feedback”

  15. Out-of-the-Box Ideas • Virtual Office(Simulated work-place) • Flee the cube nation! • Engineering without the overhead • Culture change for next generation • Training opportunities for young leaders • Empower decision-makers at each location(Project Management burn-out) • Small projects to build teams for large projects

  16. Out-of-the-Box Ideas • Small Projects as Innovators • Training ground for new tools, methods and ideas • Ideas moved to large projects with people • Management to encourage and reward new ideas • Other ideas • Get young engineers out in the field early • Provide alternate work location, making project harder to poach • Collaborate with academia to start a small project training ground • Hire students part-time during school year

  17. Future Small Project • Compressor Revamp – Brazil • Late decision for award – TIC $20MM • Tight schedule to meet shutdown date We Won the Bid!

  18. World-Wide Engineering

  19. Staffing Requirements 1 PM 2 PE 12 eng 20 designers Flexible Locations Recruiting Tools Facebook,MySpace, Second Life, Linked In You-tube videos Web Cams Video conferencing World-Wide Recruiting and Staffing How? VIRTUALLY!!! http://www.youtube.com/watch?v=JcXF1YirPrQ Virtual recruiting is anywhere, anytime without relocation.

  20. Here’s our staff… Germany India China PM – USA Virtual Hub JOBSITE Brazil PE –Australia PE – South Africa

  21. How do we Communicate? Common Platforms Common Spaces Flexible Interfaces • Standardized Software Tools • Web Based Tools (i.e. Skype) • Common IT space, VPNs • Web-based Common Spaces • Translator Programs • Messenger / Communicator • Real Time Documentation and Communication

  22. WORLD-WIDE COMMUNICATION • Virtual project team • Shared applications editing documents. • Face-to-face meetings. • Minimal office space. • No travel. Cisco WebEx Meeting Center (Video Presentation – 2 min.) HP Halo Telepresence Solutions (Video Presentation – 1 min.)

  23. 7:00 AM 10:00 AM 4:00 PM A Day in the Life of the Project • Virtual Meeting - USA, Brazil, and Germany • Establish activities and confirm scope

  24. 5:00 PM 7:00 AM A Day in the Life of the Project • Virtual Meeting between USA and China • Document Transfer – USA to China

  25. 5:00 PM 6:00 PM A Day in the Life of the Project Zzzz.. • Problem in China – PM still awake? • Skype PE in Australia • Problem Solved – Proceed with work

  26. Mark-up 2:30 PM 5:00 PM A Day in the Life of the Project • Conference Call between China and India • Transfer Drawings to India

  27. Mark-up 6:00 AM 6:30 PM A Day in the Life of the Project • Transfer Document from India to USA

  28. 11:00 AM A Day in the Life of the Project APPROVED 28 hours between Inception and Issue

  29. Q & A GUIDE – What problems did you have that our great solutions would help.

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