1. Building professionalism in project management 6/9/2008Small Project Presentation1 “The man in charge must concern himself with details. If he does not consider them important, neither will his subordinates. Yet “the devil is in the details.” It is hard and monotonous to pay attention to seemingly minor matters. In my work, I probably spend about ninety- nine percent of my time on what others may call petty details. Most managers would rather focus on lofty policy matters. But when the details are ignored, the project fails. No infusion of policy or lofty ideals can then correct the situation.” Admiral Hyman G. Rickover “Father of the Nuclear Navy”

2. Building professionalism in project management 6/9/2008Small Project Presentation2 A Small Project is Still a Big Effort Life in the World of a Small Project Manager June 9, 2008 Disclaimer - The material presented was compiled and developed by Paul Hohne based on decades of project management experiences and does not necessarily represent the views of BPCP, CH2M or PMI.

3. Building professionalism in project management 6/9/2008Small Project Presentation3 Objectives for Session Develop basic understanding of gated project delivery process Scope of a typical Small Project How is a Small Project different Roles and responsibilities of a Project Manager

4. Building professionalism in project management 6/9/2008Small Project Presentation4 Presentation Please ask any question that will help clarify the presentation Reference point for this presentation is a Small Project executed at the BPCP Refinery I will try to minimize technical & company jargon

5. Building professionalism in project management 6/9/2008Small Project Presentation5 Agenda Safety Gated Process Overview Small Project Overview API Lid Replacement Project Project Manager Roles and Responsibilities PMI Overview Session Wrap-up

6. Building professionalism in project management 6/9/2008Small Project Presentation6 Safety Are you ready to Make a Difference this June? The theme of the National Safety Council’s 2008 National Safety Month (NSM) observance in the United States has to do with making a difference in safety where you work—and everywhere you go! Throughout June 2008, National Safety Council activities will address safety issues around unintentional injuries and deaths in the American workplace, on the road, and in the home and community. At CH2M, we will focus on the following topics: Week 1: June 2nd to June 6th—Pedestrian & Bicycle Safety Week 2: June 9th to June 13th—Driving Safety Week 3: June 16th to June 20th—Emergency Preparedness Week 4: June 23rd to June 27th—Re-commit to Target Zero!

7. Building professionalism in project management 6/9/2008Small Project Presentation7 Gated Project Delivery Overview The project management framework for BPCP is called the Capital Value Process (CVP). The CVP is a staged gate process whereby: Projects are divided into stages, each of which corresponds to a key decision point. Each stage has a Gate that must be passed, which forces the Gatekeeper and the Project Team to make appropriate decisions. These decisions and the rationale behind them are captured in a Decision Support Package (DSP). The activities required within each stage are those necessary to develop the information required for the Decision Support Package.

8. Building professionalism in project management 6/9/2008Small Project Presentation8 Typical Schedule of Events IPA Operability Review Operate Peer Review (PPE2)

9. Building professionalism in project management 6/9/2008Small Project Presentation9 Initial Capital Funding Gates for Small Project Expense Funding Final Capital Funding TIC Estimate Range +/- 50% TIC Estimate Range +/- 15% Appraise SelectExecute Choose the Right Project Develop the Right Project Deliver the Right Project Define Gate Operate Gate TIC Estimate Range +/- 30% TIC Estimate Range +/- 10% Gate

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11. Building professionalism in project management 6/9/2008Small Project Presentation11 Project Constraints Cost Time Scope

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13. Building professionalism in project management 6/9/2008Small Project Presentation13 Purpose of Project To replace the existing aluminum lids with permanent, cast-in place concrete lids that essentially eliminate VOC leaks into the environment.

14. Building professionalism in project management 6/9/2008Small Project Presentation14 Key Personnel Owner BP Cherry Point Refinery: Paul Van De Velde – Small Projects Program Manager Designer CH2M HILL: Greg Grimm, Project Manager Constructor MATRIX: John Skinner and Don Widen, Field Coordinators Owner BP Cherry Point Refinery: Paul Van De Velde – Small Projects Program Manager Designer CH2M HILL: Greg Grimm, Project Manager Constructor MATRIX: John Skinner and Don Widen, Field Coordinators

15. Building professionalism in project management 6/9/2008Small Project Presentation15 Budget Performance Total Project for both phases Original Budget: $3.22 M Final Installed Cost: $2.50 M Engineering//BP Hours 2,900 Hours Construction26,000 Hours Total Project for both phases Original Budget: $3.22 M Final Installed Cost: $2.50 M Engineering//BP Hours 2,900 Hours Construction26,000 Hours

16. Building professionalism in project management 6/9/2008Small Project Presentation16 Original Aluminum API Separator Lids Project Photos

17. Building professionalism in project management 6/9/2008Small Project Presentation17 Scaffolding Project Photos

18. Building professionalism in project management 6/9/2008Small Project Presentation18 Rebar Installation Project Photos

19. Building professionalism in project management 6/9/2008Small Project Presentation19 Rebar Wire-tie Gun Project Photos

20. Building professionalism in project management 6/9/2008Small Project Presentation20 The Pour Project Photos

21. Building professionalism in project management 6/9/2008Small Project Presentation21 The Finished Pour Project Photos

22. Building professionalism in project management 6/9/2008Small Project Presentation22 New Concrete API Separator Lids Project Photos

23. Building professionalism in project management 6/9/2008Small Project Presentation23 Aluminum Lid Washing and Recycling Project Photos

24. Building professionalism in project management 6/9/2008Small Project Presentation24 Summary VOC monitoring revealed no releases to the environment Environmental and maintenance goals were achieved Safe: No accidents or near misses 28% under budget Completed ahead of schedule Environmentally responsible EPA Inspector felt that the lids were the “best in the industry for their purpose” Project has already received an Environmental Award from BP Stands as a reminder that innovative and fresh ideas are alive and well in our industry! VOC monitoring revealed no releases to the environment Environmental and maintenance goals were achieved Safe: No accidents or near misses 28% under budget Completed ahead of schedule Environmentally responsible EPA Inspector felt that the lids were the “best in the industry for their purpose” Project has already received an Environmental Award from BP Stands as a reminder that innovative and fresh ideas are alive and well in our industry!

25. Building professionalism in project management 6/9/2008Small Project Presentation25 Why was this small project a success?

26. Building professionalism in project management 6/9/2008Small Project Presentation26 Characteristics of a Small Project LargeSmallMicro Cost> $2M<$500k capitalmixedexpense Duration18 to 24 monthsLess than 12 months Duration long enough for learning curve Fast track, no time for tem development Team>10,000 hours>2,000 hours Full time dedicatedEntirely part time Functional specialists ApproachUpper management attention Little attention until problem Complete engineeringFit in field Complex equipmentSimple, less equipment Standard proceduresmixedSeat of the pants

27. Building professionalism in project management 6/9/2008Small Project Presentation27 OVERALL Manages and coordinates all engineering, procurement and construction activities for the project, including scope, cost and schedule Facilitates alignment on all project activities and identifies resources needed for the project Assumes lead role, develops team assignments Develops status reports, with cost & schedule updates, and forecats for completion Coordinates all aspects of the project to make sure that all project team members and project stakeholders are engaged and project deliverables are satisfied while maintaining cost and schedule The risk manager Roles & Responsibilities Project Manager Responsibilities

28. Building professionalism in project management 6/9/2008Small Project Presentation28 Project Manager Responsibilities –HSSE Ideally need members from each department on the project team – health, safety and environmental groups activities to assist in managing the risks –P&ID reviews –HAZOP/LOPA/What If reviews –PHSSER reviews –JSA –The challenge is to schedule the meetings and insure attendance by the key players

29. Building professionalism in project management 6/9/2008Small Project Presentation29 Project Manager Responsibilities –technical assurance design the system to be compatible with the process evaluate options with ultimate goal of unit operation design of the system needs to be reliable and maintainable design the system to be constructible

30. Building professionalism in project management 6/9/2008Small Project Presentation30 Project Manager Responsibilities –cost TIC Cost estimate –different types of estimate are appropriate depending on the engineering development –establish basis of the estimate (assumptions) –estimates to establish project budgets Project controls & reports –periodically review the status of the project and forecast the remainder of the project –BP relies on cash flow to optimize the value of it’s businesses

31. Building professionalism in project management 6/9/2008Small Project Presentation31 Project Manager Responsibilities –schedule stage of project determines level of schedule development –milestone (lowest level of detail) –critical path method helps to determine what constrains the project –resource loaded critical path will allow you to progress the project

32. Building professionalism in project management 6/9/2008Small Project Presentation32 Project Manager Responsibilities –communication – one of (if not the most) important pieces of the project manager internal –project team communications on all aspect of the project is critical –setting expectations and being able to use the skills of the project team members to be successful (schedule, scope and cost) –documenting key project activities (VIPs, Peer Reviews, Peer Assists, Risk Mitigations, HAZOP/LOPA Recommendations, etc.) external –project stakeholder communications on project status is beneficial –capturing lessons learned to share –being able to make use of external resources to bring value to the project

33. Building professionalism in project management 6/9/2008Small Project Presentation33 Project Execution Plan (PEP) What Why When How Who PEP is the process of defining the approach to be followed in executing a project. The PEP addresses the project controls, contract strategy, WBS etc. that will be utilized to execute and control the project. It is used to define and influence the most efficient execution strategy for the project at an early stage in order to lever maximum value. It ensures that the project is controlled and monitored. It is produced and approved during FEL as soon as the project scope is known. The PEP is updated at the end of each stage. The responsibility of producing the PEP is with the Project Manager and is published as a formal project document, which is subjected to review & is ultimately approved by the Owner. Project Manager with input from the following: Estimator, Planner, Contracts Engineer, Procurement, Project Lead, Discipline Engineers etc

34. Building professionalism in project management 6/9/2008Small Project Presentation34 Constructability This practice provides a systematic method that enables a project team to optimize the use of construction knowledge and experience in planning, engineering, design, procurement, fabrication and installation to achieve overall project and safety objectives.

35. Building professionalism in project management 6/9/2008Small Project Presentation35 Project management drives projects. So, it’s important that a project’s tasks and deliverables be properly identified, budgeted and monitored to ensure that productivity and completion will not adversely affect procurement and construction goals. Deliverables are the building blocks for a successful project. Closing Statement

36. Building professionalism in project management 6/9/2008Small Project Presentation36 Words from the Past “We can’t solve problems by using the same kind of thinking we used when we created them. Doing more of the same actions is unlikely to lead to breakthrough results.” By Albert Einstein “It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” By Charles Darwin “The greatest problem in communications is the illusion that it has been accomplished.” By George Bernard Shaw

37. Building professionalism in project management 6/9/2008Small Project Presentation37 If you assume that in our project effort, all team members are serious, dedicated, and capable of completing project tasks, then failure of a project must be the result of poor communications and a lack of relevant and important information. A Thought to Ponder