Baseline Management & Control

1. Baseline Management & Control Presented by: Kreg McCall

2. Baseline Management & Control Define Baseline Baseline Types How to Generate a Baseline Baseline Setup for Success Baseline Scenarios Questions

3. Presenter Overview • Presenter: Kreg McCall kreg.mccall@tepco.us • Managing Partner / Trainer / Consultant at Tepco LLC • I’ve scheduled on many different platforms • Upstream – Midstream – Downstream in the Petrochemical Industry • Turnarounds • Daily Maintenance • Small Capital Projects • Large Capital Projects – up to 7.5 billion across 4 countries in a single Enterprise environment • With over 18 years experience and the opportunity to see many different philosophies and processes in the scheduling arena – I continue to share the knowledge I’ve gathered through all my experiences. • I’ve been training for 7 years and thrive on the collaboration and learning's from every class I teach. On average I train 30 weeks out of the year and see so many tips, tricks and common threads in the Project Controls world.

4. Define Baseline Baseline: (Also referred to as “Target” or “Plan”) A baseline is a measurement tool that can either be time based or data based with capabilities to compare and control status or performance against. Each measurement is time phased when comparing information. Time Based: Data Based: Current: 2-10-11 2-1-11 Current: 2-10-11 (150 hrs) 2-1-11 (100 hrs) Baseline: 2-1-11 Baseline: 2-1-11 (100 hrs) (50 hr Variance) (0 Variance) (-9 Variance) (0 Variance)

5. Baseline Types • There are many different baseline types, here are a few: • Milestone Baselines • Sign Off Baselines • Check Estimate or Mid Project Baselines • Execution Baselines • “What – if “Baselines • No matter what baseline type you are using – understand it, analyze it, and use it to make good business decisions. • In order to do this you must develop your company baseline process: • Set your baseline • Management against your baseline • “Work” the baseline • Trust your baseline

6. High Level Look at Baseline Types Legend - Current Milestone - Current Task - Baseline Milestone - Baseline Task - Current Task

7. How to Generate A Baseline The “Execution Baseline” is most difficult to manage, and one we will focus on first: • Some Common Terms & Must Do’s: • Freeze Scope – Very lightly used term, hardly ever set, and tend to slip! • Logic - must be viewed, reviewed and agreed upon by everyone that “This is the way we will execute!” • Change – Build a baseline process susceptible to change, “It’s going to happen!” • Document & Follow – don’t deviate during execution The use of a baseline, and how we track against it ….. • A snapshot or picture in time • Generally “S” Curves are produced to track or follow as visual references • Generally monitored by % Planned vs. Current %

8. Dollars - $2,500,0000 5200 = 25% 20800 7500 = 36% 20800 9530 = 46% 20800 10200 = 49% 20800 12850 = 62% 20800 14100 = 68% 20800 15750 = 76% 20800 17010 = 82% 20800 18500 = 89% 20800 19750 = 95% 20800 2500 = 100% 20800 2500 = 12% 20800 Manhours - 20,800 $45,000 $125,000 $275,000 $510,000 $750,000 $1,500,000 $1,650,000 $1,850,000 $1,975,000 $2,100,000 $2,450,000 $2,500,000 2500 5200 7500 9530 10,200 12,850 14,100 15,750 17,010 18,500 19,750 20,800 100% 89% 95% 82% 76% 68% Legend 62% 49% - Current Task 46% 36% 25% 12% Jun Apr May Sep Aug Feb Mar Oct Jul Nov Jan Dec

9. Original Baseline Legend - Current Milestone - Current Task Do Not Touch! - Org Baseline MS - Org Baseline Task Current Data Date Original Data Date Jun Apr May Sep Aug Feb Mar Oct Jul Nov Jan Dec

10. Legend Working Baseline - Current Milestone - Current Task - Org Baseline MS - Org Baseline Task - Wrkng Baseline MS - Wrkng Baseline Task Current Data Date Original Data Date Working Data Date Jun Apr May Sep Aug Feb Mar Oct Jul Nov Jan Dec

11. Three Objects to Control, Work, & Report Against Current Project – Update every day, week or month Original Baseline – Never updated, changed, nor adjusted Working Baseline – Updated as “Approved” changes occur The major contributor of accuracy when reporting variance ….. • The Data Date – Defined as the starting point (date / time) for calculating • Generally referred to as - Anything behind the data date is complete • Generally referred to as - Anything in front of the data date is in progress • Current project – data date is moved daily, weekly or monthly • Original Baseline – data date is never moved (remains the same when baseline is set) • Working Baseline - data date is “never moved” (remains the same when baseline is set, but time analyzed or recalculated)

12. Baseline Scenarios • Re-baseline – Understanding the term • Using a working baseline: • Behind Schedule and Adding Work • Ahead of Schedule and Adding Work • On Schedule and Adding Work • Removing Work • Change Order Process and How it Affects the Schedule

13. Re-Baseline Legend - Current Milestone - Current Task - Wrking Baseline MS - Wrking Baseline Tsk - Wrking BL Progress - Earn Task 36% - Earn Progress - Forecast 24% 24% Jun Apr May Sep Aug Feb Mar Oct Jul Nov Jan Dec

14. Our Focus will be remaining work

15. Behind Schedule Milestone Variance (- 10d) RETAIN ORIGINAL BASELINE DATA DATE Working Baseline Doesn’t make logical sense (- 10 d original) (- 5d working) Logic Tied & Calculated Legend - Current Milestone - Current Task - Org Baseline MS - Org Baseline Task - Wrkng Baseline MS - Wrkng Baseline Task - Added Work

16. Ahead Schedule Milestone Variance (- 1d) (+5d working) (- 1d original) Legend - Current Milestone - Current Task - Org Baseline MS - Org Baseline Task - Wrkng Baseline MS - Wrkng Baseline Task - Earn Task Current Data Date - Added Work Working Data Date

17. Milestone Variance (- 10d) On Schedule (- 10d original) (0d working) Legend - Current Milestone - Current Task - Org Baseline MS - Org Baseline Task - Wrkng Baseline MS - Wrkng Baseline Task - Added Work

18. Milestone Variance (1d) Removing Work (1d original) (0d working) Legend - Current Milestone - Current Task - Org Baseline MS - Org Baseline Task - Wrkng Baseline MS - Wrkng Baseline Task

19. Change Orders & Baselines • In order to complete any of these processes, it “MUST” be an approved change order • Key terms on most change order forms • Is the change a schedule impact? • If so, what in the proposed schedule completion date? • Time analyze or Calculate the working baseline only when working with critical path activities • Change not only affects the schedule, but cost as well

20. Key Points for Review • Set (2) approved “execution” baselines • Original • Working • Have a well defined baseline update process • Know the Change Order Process and when to add or remove work from the baseline • Understand what baselines you're tracking against, and what the term “variance” really means to your team.

21. Questions Thank You from Tepco LLC Kreg McCall – kreg.mccall@tepco.us Contact us at: 281-428-3726 Visit us at: www.tepco.us