PLANNING & SCHEDULING BY AL-LATIFIA

1. PLANNING & SCHEDULING BYAL-LATIFIA CEM – 510 TERM PROJECT Mazhar Anwaar Saleh Al-Garni January 23, 2010

2. OUTLINE • Project Objectives • Research Methodology • Contractor Introduction • Project Management System • Planning & Scheduling Techniques • CPM Technique • Monitoring & Control Techniques • Effectiveness of Management Techniques • Conclusions • Q & A • Wrap Up

3. PROJECT OBJECTIVES • How contractor is doing Planning & Scheduling? • Is he following industry accepted methods and procedures? • How dynamic P&S for various project phases? • How variance is identified against plans? • How effectively plans are used to monitor and control the variance?

4. RESEARCH METHODOLOGY Brief Interviews Questionnaire Development, Distribution and Collection Detailed Interviews

5. CONTRACTOR INTRODUCTION • Al-Latifia Trading and Contracting • Founded: 1987 • Headquarter: Riyadh • Operations: Throughout the KSA • Size: Over 7000 Employees The growth is mainly attributed to its broad project experience and skilled technical resources.

6. STRENGTHS & DIVERSITY • Kingdom-wide Mobilization • Highly Qualified Professionals • Physical Resources • Fabrication Capability • Project Diversity

7. Al-Latifia Corporate Structure ORGANIZATIONAL BREAKDOWN STUCTURE General Manager Tendering and Estimation Internal Audit Construction / Operations Planning and Project Control Commercial Finance HR and Administration Project Management Strategy and Performance Mgmt. HR Planning Procurement and Contracts Engineering Purchasing and Logistics Cost Control Corporate Finance Legal Council Quality Control and HSE Accounting and Control Communications and PR IT Treasury

8. Typical Project Organizational Structure ORGANIZATIONAL BREAKDOWN STUCTURE Project Manager IT Support Secretarial Support Construction Manager Planning Manager Procurement Manager Quality Manager HSE Manager Electrical Lead Quality Supervisors HSE Supervisors Planning Engineers Procurement Engineers Mechanical Lead Contract Administrator Cost Control Engineers Quality Engineers HSE Engineers Civil Lead Sub -Contractors Engineering Manager Structural Lead Discipline Engineers

9. MAJOR PROJECTS • GOSI Granada • SR. 1.54 billion contract – 42 Months Duration • A business and residential complex for the General Organization for Social Insurance (GOSI), in Riyadh. • The project includes: • Six high-rise towers • Large underground parking facility • A business center other buildings and amenities. • Saudi Aramco Corporate Data Center • SR. 714 Million Contract – 27 Months Duration • A strategic project for Saudi Aramco and for the Kingdom of Saudi Arabia. • The biggest data center for any producing company • Construction of apx. 6000 square metes raised floor divided into four data halls. • Complex mechanical & electrical systems.

10. SOME RECENT PROJECTS SABB Regional Offices Sofitel Hotel Al-Khobar Dar Al-Yam Printing Facility El-Khereiji Office and Commercial Complex:

11. PROJECT MANAGEMENT SYSTEM As per the PMBOK Project Management (PM) is application of knowledge, skills, tools, and techniques to project activities to achieve required objectives. • Al-Latifia project managers and their teams are responsible: • For the development of Project Plans as per the client requirements. • The project plan covers all the aspects of project management including scope, time, cost, resources, quality, HSE, communication and procurement planning. • Al-Latifia planning is divided into two phases: • Bid Planning: Done for the bidding of the projects through corporate office • Project Planning: Done after the award of the project by the project manager & his team

12. PLANNING AND SCHEDULING TECHNIQUES • Every project plan is to answer the basic questions: • What to be done? Scope Management • When it needs to be done? Time Management • What it cost to do? Cost Management • Who & How will do? Resources Management Our project focus was to study time, cost and resources planning features of Al-Latifia. Al-Latifia planning and scheduling techniques are more focused around Critical Path Method (CPM) and its requirements.

13. WHAT IS CITICAL PATH METHOD? A PM methodology designed to effectively plan and control a project. It Offers a structured approach to project planning and control features. A network analysis technique used to predict project duration by analyzing which sequence of activities (which path) has the least amount of scheduling flexibility.

14. CPM TECHNIQUE Al-Latifia is applying CPM, while utilizing various tools and techniques: • Work Breakdown Structure • Network Modeling • Durations & Resources Estimation • Schedule Development & Analysis • Budgeting and Costing

15. WORK BREAKDOWN STRUCTURE Breaking the project down into smaller elements. A greater probability that every major and minor activity is accounted for. Use of typical WBS templates form historical data of previous projects . Significance • Responsibility matrix • Costing • Risk analysis • Organizational structure • Control (including contract administration)

16. WORK BREAKDOWN STRUCTURE

17. WORK BREAKDOWN STRUCTURE

18. NETWORK MODELING, ESTIMATION OF TIME AND RESOUCRES • Primavera (P3) with PDM network are used for scheduling. • Historical information used for the estimation of activities durations and resources. • Historical productivity records are used to assess the time and resources requirements. • Resource leveling is done for the optimization of manpower and equipments (Contradiction)

19. SCHEDULE DECVELOPMENT & ANALYSIS • Identification of CP and near CPs • Verification of Milestones and Project Completion Dates • Baseline schedule submission for approval (Control Sch.) • No specific method used for schedule analysis • Significance: • Benchmark the project actual progress against the plan. • Impact of late starts and early starts • Trade-offs between resources and time • Evaluation of performance

20. BUDGETING & COSTING • Once a project is awarded to Al-Latifia: • Budget assigned from higher management. • Project Manger responsible for Managing and controlling the cost. • Assigned Budget = Direct + Indirect + POHs • Assigned Budget formulate the basis of control. • Significance : • What is included and what is not included • Cash flow plan, with progress payments & overdraft

21. MONITORING & CONTROL TECHNIQUES • Generally to achieve Control: • Cost, schedule, and technical objectives are clearly documented, realistically derived, and deliberately managed. • Type of Controls: • Schedule Control • Cost Control

22. MONITORING & CONTROL TECHNIQUES • Schedule Control • Weekly update of schedules • Variance Analysis. • Weekly meetings to: • Monitor the progress • Reasons for variance • Corrective actions • Recovery plan implementation

23. MONITORING & CONTROL TECHNIQUES • Cost Control • Project Budget as Basis of Cost Control • Weekly update as per actual Cost • Variance Analysis • Identification of Variation Causes • Corrective actions to Eliminate the variance • Recovery plan implementation

24. EFFECTIVENESS OF MANAGEMENT TECHNIQUES • Planning & Scheduling - CPM technique utilizing P3 PP • Structured PM techniques - Enhanced control through WBS • Segmenting projects into logical control points • Variance tracking - Earned value method • For each project - Variance thresholds • Recovery plan in case it happens. • Utilization of enough time and resources on planning.

25. CONCLUSION Al-Latifia is growing at fastest pace and also improving its systems and procedures. System Development Under progress - Implementation of ERP, and ISO Certification. More focused in optimization of project time line and budgets. Careful planning, vigilant monitoring & controls with simple tools and techniques. (WBS, Schedules, S-Curves, Manpower HG, Procurement Plan etc.)

26. Q & A Any Question Please!!

27. Thank You