Project management framework
ABB project management framework
Contents
Foreword
1 Vision and road map
3
4
2
5
Project success criteria
3
Foundation
3.1 Project Complexity Calculator
3.2 ABB Project Management Competencies
6
6
7
4
Processes
4.1 Key deliverables
4.2 Project initiation and start-up
4.3 Project planning
4.4 Project execution
4.5 Project monitoring and control
4.6 Project closeout
4.7 Change handling during project execution
4.8 Risk handling during project execution
4.9 Project reviews and reporting
4.10 Independent project peer reviews
4.11 ABB Quality policy
4.12 Health and safety
8
8
8
8
9
9
9
9
11
12
13
14
15
5
5.1
5.2
5.3
5.4
Organization
Project organization
Roles and responsibilities, RACI Chart
Execution of Cross – BU / Country Contracts
Project manager development
16
17
18
23
24
6
6.1
6.2
6.3
6.4
6.5
6.6
Project Management Tools
ABB collaboration program
Document Management System (Documentum)
ProSales
Risk review
ProMIS
ServIS
26
26
26
26
26
26
26
7
7.1
7.2
7.3
Project Management Communities
Project Management Council
PM Champions and Project Managers
PM Council and Network – Links to division and country
26
27
27
27
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Foreword
High performance project execution is the key to our business
success. It allows us to consistently meet our customer’s
expectations, while improving our profitability.
We have a long track record in executing a wide variety of
projects in many different industries - ranging from small,
fast track projects to large or complex projects. This gives
us enormous resource base of experience, knowledge and
expertise - a significant competitive advantage.
knowledge and collaboration. This ABB Project Management
Framework provides the basis for our work in project
management. We trust that everyone involved with project
execution within our organization will familiarize themselves
with this framework. Utilizing the best practices defined in
this framework has the potential to yield significant returns,
quickly, in terms of on-time, on-cost and on-quality project
deliveries for higher profitability and even more satisfied
customers.
Successful project execution depends on solid project
management principles, bringing together the best of people,
Foundation
Communities
Tools
Processes
Organization
These five building blocks aim to integrate the work of ABB PM Council with an aim to build Project Management as a core
competency to achieve the Project success criteria during the execution of individual projects.
Project Management Framework | Brochure 3
1 Vision and road map
To strengthen the ABB Project Management competencies,
and make it as one of the core competencies, the ABB Project
Management Council was officially launched on 5th November
2009. This Council will provide functional leadership to the global
community of ABB project managers with the primary goal of
improving the ABB project management performance for the
benefit of both our customers and our shareholders.
The objectives of the ABB Project Management Council
(ABB PMC) include:
The following five work streams were formed among the
PM Council members as part of meeting the objectives:
– Identifying, promoting and spreading existing ABB best
practices
– Project planning and execution tracking: processes, tools
and behaviors
– Driving implementation of project management training and
certification processes
– Project risk and change management during project
execution phase
– Identifying common gaps in project management
processes, tools and setting priorities for action
– Clarity of and support for the ‘Project Management
Organisation’ (PMO)
– Providing coaching and mentoring support to less
experienced PMs
– Internal ABB delivery performance, on-time and on-quality
– Skills and competencies of Project Managers and related
key project roles
– Promoting project management as a key career option in
ABB
Following is the initial road map integrating the different actions:
2010
P Mgr
Competency
assessments
conducted in
2011
2012
2013
Project Management to
Senior Project Mgrs &
Project Directors recognized
as key leaders and role models
become a core
competency in ABB with
100% on-time, on profit,
on quality project
key countries
execution
PM Skills and
>90% of large complex &
Competencies
group Accounts Projects
LBU P Mgt Maturity
led by Senior Managers
>80% P Mgrs
assessed and
certified
P Mgt processes
and guidelines
Certification
PMgr Network
(e.g. PMI OPM3)
actively
Project review and
spreading best
execution ( & review) tools
practices
roadmap
developed
LBU Pmgt
ABB PMgr Network social
Certification piloted
networking processes
developed e.g. peer to peer
formalized in P Mgmt
framework
ABB PMgr
Network defined
PM Processes
and Tools
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problem solving and online
coaching support
Local Engagement
2 Project success criteria
S.No.
KPI
KPI description
1
On-time delivery
–
Meet the project milestones or contractual key dates
2
Degree of customer satisfaction
–
Deliver project / product on-time according to scope of work.
–
Create additional value to customer
–
Customer confidence and additional orders
3
Budget compliance
–
Original sales price vs. final sales price
4
Project safety
–
Zero incidents (fatal and serious)
5
Project quality
–
Traceability of project / product phases (engineering, procurement, construction)
–
Respect project / product specification, execute test verifying project/product performance, produce certifications demonstrating the total quality process
6
Manage changes in project / product required during the project / product Scope and change management effectiveness
–
development while maintaining the project on-time and increasing margins (if possible)
7
Risk management result %
–
(Risk provisions remaining + provisions turned to profit ) / Original risk provision
8
Risk management effectiveness
–
(Total number of risks - risks not identified at the risk review - risks not mitigated or
mitigated effectively ) / Total number of risks
Where total number of risks includes all risks from time to time including occurrence of
new risks.
–
9
Competence growth
–
(Total number of risks shared with the customer up front - risks not identified at the
start-up - risks not mitigated or mitigated effectively) / Total number of risks
Permit to people working in the project to improve competency and experience obtaining an organic and objective growth of the organisation
10
Standardize as far as possible the process and procedures in to order to establish an
Standardization
–
efficient and reliable way to proceed
Project Management Framework | Brochure 5
3 Foundation
3.1 Project complexity calculator
3.1.3 Contractual and commercial complexity
Project complexity calculator is a simple model to determine
the complexity of the project management challenge based
on three dimensions. The complexity points determined by the
complexity calculator can help the decision making:
Contractual and commercial complexity identifies:
– degree of complexity resulting from commercial conditions
– degree of complexity resulting from project size and value.
– degree of risk our customers want to transfer as a
mitigation action to de-risk their projects. As a result, we
will be increasingly forced to accept commercial conditions
that we may have rejected in the past.
– degree to which the contractual complexity can provoke
blockages in decision making that can significantly delay
the projects, as we try to pass these down back-to-back
with our suppliers
– degree of complexity due to customer size, maturity and
importance
– consortium-related complexity
–
to select the right project organisation
–
to determine the composition of project review committee
and review frequency
3.1.1 Technical complexity
Technical complexity identifies:
– degree to which the products, by design, use new
technologies or materials that are novel or unproven in
service;
– degree to which the integration of the products into plants
or systems, even previously proven products, brings
complexity in combination;
– degree to which the systems engineering required to
ensure our products function in combination, and the
robustness and maturity of the customers systems, into
which our systems and products will be integrated;
– need for project managers who deeply understand the
customer’s technology;
– time constraints if any
3.1.2 Geographical complexity
Geographical complexity identifies:
– complexity due to transport, logistics and communications
difficulties introduced from the geographical spread
– complexity of different national regulations applicable,
particularly on systems where physical elements of our
system (e.g. cables) cross national borders.
– complexity due to dealing across differing business
cultures, e.g., a Japanese customer will expect a behavior
from their suppliers that will not be the norm for a western
company
– supply chain complexity that is greatly influenced by
geography
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3.2 ABB Project management competencies
3.2.1 Project oriented
Project Planning
& Scheduling
Customer
Satisfaction
Management in
Projects
Project Financial
& Cost
Management
Legal & Contract
Management for
Projects
Project Execution
Tracking and
Reporting
Scope & Change
Management in
Projects
Project Risk and
Opportunity
Management
Procurement
Management for
Projects
Results
Orientation
Strategic
Orientation
Teamwork &
Collaboration
People
Development
Personal
Leadership
Change
Leadership
Intercultural
Sensitivity &
Effectiveness
Customer &
Market Orientation
3.2.2 Leadership 0riented
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4 Processes
4.1 Key deliverables
S. No.
Deliverable name
Objectives
Related project
management phases
1
Project charter
Describes the high level strategy for executing the project Project initiation and start-up
2
Project document
distribution matrix
Identify which stakeholders needs to be involved in
3
document distribution Project initiation and start-up
Project coordination
procedure /
communication plan
Defines client / project team interfaces and way
4
for communication Project initiation and start-up
Project management plan
(Also called project execution
plan or project plan)
Details the high level strategy outlined in the project
charter for executing the project - how the project is
executed, monitored, controlled and closed. It may be a
summary or detailed, and may be composed of subsidiary
planning documents Project planning
5
Change & Variation log Project execution
6
Risk register
(Risk Management Plan) Project execution
7
Project review report
States the current key data of the project.
Also includes risks and opportunities. Project monitoring and control
8
Final version of the review report, plus lessons learnt,
Project closure report
customer feedback and similar results Project close-out
4.2 Project initiation and start-up
Project Monitoring & Control
Change & Claim Management
Project
Initiation &
Start-up
Project Planning
Project Execution
Risk & Opportunity Management
Reviews & Reporting
Independent Project Peer Reviews
Quality, Health & Safety
Scalability & Process Tailoring
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Project
Closure
Gathering data relevant to the project; identifying the
need for the project; developing statement of work/scope;
establishing project goals and objectives; determining
project feasibility, risk level, strategy; identifying project
stakeholders and possible project team members; developing
a project resource list and listing various implementation/
resourcing alternatives; obtaining approval for the project; and
developing a project charter, endorsement of project budget.
4.3 Project planning
Appointing various project team members and defining
their project assignments; developing the project WBS;
establishing the scope baseline; assessing the risks in
the project and defining alternative mitigation strategies;
establishing a project baseline including schedule, budget,
list of deliverables, quality standards and monitoring/reporting
indices; and conducting a project kickoff/celebration/
ceremony.
4.4 Project execution
4.6 Project closeout
Assigning work to each project team member with
clear communications of their deliverables, roles and
responsibilities; selecting suppliers / subcontractors and
establishing appropriate/necessary work contracts with each
supplier / subcontractor with clear definition of the scope of
their deliverables, prices, delivery schedule and performance
measurement indices, along with all legal / contractual terms
and conditions governing their relationship to the project
and the PMs’ company; establishing systems / indices for
evaluating the implementation of the project, and regularly
monitoring / controlling the implementation of the project
by each team member with reference to the established
indices; and establishing procedures for issues reporting and
resolution, and change management.
Obtaining all necessary review / sign-offs / acceptance
certifications; ensuring that all costs have been recognized
and invoices have been paid, and financial closure has been
applied; ensuring that all contracts have been closed-off;
documenting the results of the project and lessons learned;
conducting project handover to the downstream recipient
organization; releasing the project resources; having a project
closeout celebration; and releasing the project team members.
4.7 Change handling during project execution
4.5 Project monitoring and control
Happens throughout during the above phases:
– Establish a method of earned value measurement
(progress) based on objective deliverables, monitoring
periodically the project status.
– Measure and check schedule (in particular critical path) and
cost.
– Identify corrective actions for leading the project according
to the base line
A clear scope definition and understanding of who is
undertaking what responsibility is crucial for a reliable
determination of cost, time and resource requirement, as well
as the risks associated with scope of delivery. This must be
established during the tender preparation process, and during
contract negotiations with the customer.
The Change Management process is the means by which
technical issues, or issues with financial or schedule impact,
are raised, and managed.
Change Management
Query Management
Query/Change Request
Change/Claim Management
Close Query/
Change Note
External
Change
Immediate
action required
YES
Initiate
Claim
Negotiate
Claim
NO
Reply to and/or
Engineering
resolve Query
Installation &
Commissioning
Project Management
Others
Query (Fault/
Action Item,
Change Request/
Claim, Non
Conformance)
from:
- Customer
- Third Parties
- Vendors
- Other Stages
and Functions
Log Query
Review
& Evaluate
Query/Change
Request
Quote
Change
Customer
Approval
YES
Specify
Change
Internal
Change
ABB
Approval
Produce
Change Note
and/or
Change
Order
Change Note
and/or
Change
Order
NO
Project Management Framework | Brochure 9
Query with no cost, scope, or schedule impact may be
immediately answered / re-solved and closed. Queries
with cost and/or schedule impact, or that requires a more
comprehensive review, are directed to the appropriate
function for further action. Query may initiate a project
change and / or claim. Customer dissatisfaction issue is
addressed also through the Customer Complaint Resolution
Process (CCRP).
Following options are usually available for Project Manager
and CCB to deal with changes:
– Reject the change
– Implement the change
– Delay the change
– Send for approval to senior managements
Receive change
request
Requests for changes to the project scope of supply,
schedule and financial issues, whether generated externally
or internally, must be managed so that any potential impact
can be properly assessed. Change note is generated to order
and document every change.
PM reviews initial
impact
Claim is the result of a change asked for or required but not
yet confirmed in a change order to the contract. Changes
which are expected to be paid for by others, i.e. customer
or other party, should only exceptionally be proceeded with,
without first reaching an agreement. When a change that
should be paid by someone else is necessary to proceed
with, but an agreement confirming this is not yet obtained
it becomes a claim. A claim can be made to the customer,
to a vendor or to any contractor or third party involved. The
project manager acts to avoid/minimize claims towards ABB.
Is change worth?
NO
NO
CCB Review
needed
CCB Review
Is change
worth?
NO
Yes
Roles and responsibilities while handling changes during
project execution
The PM is accountable for change management and may
delegate responsibility to others, e.g. Lead Engineer, Site
Manager.
Everyone involved with projects is responsible to log queries,
as they arise. Changes are efficiently managed in accordance
with established procedure.
No changes are made without appropriate approval.
Change Control Board (CCB) is formally constituted team
responsible for reviewing, evaluating, and appropriately
dealing with changes to project. The CCB members are
identified as part of the project charter, and usually will have:
Project Manager
Project Engineering Manager
Procurement Manager
Site / Construction Manager
Contracts & Claim Manager
Commercial Manager / Proposal Manager
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Is cost
within limits?
NO
Yes
Reject
Seek sponsor’s
approval
*
Document and
implement change
NO
Change accepted
after
implementation
Yes
Close change
request
*Seek appropriate management approval based on the Table
of Authority (ToA), if the sponsor is not appointed for the
project.
4.8 Risk handling during project execution
The purpose of risk management is to identify potential
obstacles and hazards to the successful execution for
the project. These risks maybe technical, commercial,
legal understanding and relationship with different project
stakeholders. It is of utmost importance that these risks are
handled in an open and transparent manner to ensure that
appropriate resources are allocated from all stakeholders
as early as possible to mitigate obstacles for the successful
execution of the project. This process should involve ABB,
the customer, the suppliers and any other partner such as
consultants or consortium partner.
4.8.1 Framework
Along the business process, project risk management is
continuously applied:
During the sales and marketing process, to ensure that
tenders will:
– have defined deliverables based on proven technology,
fulfilling customer’s demand
– have adequate commercial and contractual conditions
– be compliant with international business ethics, social,
environment and tax requirements
– be aligned with the company’s portfolio strategy and
financial targets
During the Project execution process, to ensure that:
– the project is managed by the required qualified resources
– the project activities are systematically planned, monitored
and adapted to ensure timely delivery
– all measures are taken to ensure that the project
economics are safeguarded to guarantee, at the minimum,
the achievement of financial targets
4.8.2 Risk handling process during project execution
4.8.2.1 Risk assessment
4.8.2.1.1 Risk identification The risk management database has identified possible risks
as a checklist for each of the tabs.
4.8.2.1.2 Risk analysis and evaluation
Classify risks in addition to checking complexity factors:
– unimportant risks
– medium risks
– important risks
– heavy risks
– project endangering risks
Almost Certain
Risk
management
context
Yes
Avoidance
Mitigation
Transference
Probability
Impact
Acceptance
Moderate
No
Unlikely
Need
risk treatment ?
Rare
Quantitative risk
analysis and
evaluation
Likelihood
Quanlitative risk
analysis and
evaluation
Likely
Risk
identification
Review residual
risks
No
Tolerable ?
Impact
Unimportant
Less important
medium
Important
Urgent/heavy
Critical/
project
endangering
Yes
Risk monitoring
and review
Project Management Framework | Brochure 11
4.8.2.2 Risk treatment
The project manager will open and maintain the risk register
with appropriate risk response strategies.
4.8.2.3 Risk monitoring and review
All team members and Project Review Committee (PRC)
are made aware of top 5 risks and opportunities and risk
treatment strategy and implementation plan.
4.8.2.4 Communication and consultation
Reviews are overseen and coordinated by project manager
and project controller.
4.8.2.5 Effectiveness of the risk management process
The project manager shall document the lessons learnt during
execution at regular intervals and during project closure.
4.9 Project reviews and reporting
Periodic reviews and reporting of projects under execution
is the key for the successful project execution, for ensuring
timely delivery, customer satisfaction and achievement of
approved project performance targets. Timely and accurate
reports are required to keep the stakeholders updated with
the status of the project.
Main objectives of project reviews are to:
– support the project manager in executing the project to
enhance ABB profit opportunities and risk mitigation, in
compliance with USGAAP and SOX (Sarbanes-Oxley Act)
requirements
– ensure customer’s satisfaction in line with ABB contractual
obligations
– evaluate the latest project’s estimates at completion
presented by the project manager
– approve the project estimates to completion, and the
changes proposed by the project manager, prior to their
release as report in ERP systems and in ProMIS.
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Following are the guidelines for the project manager while
creating agenda for project reviews or preparing project
reports:
– Provide an objective rather than subjective status
evaluation of the project status
– Match level of the detail to the needs of the stakeholders
who are participating in reviews or reading the project
report
– Report information consistently across time.
– Provide the relevant information to stakeholders on timely
basis
– Use appropriate graphics and figures to condense and
streamline the project information
– Be proactive and positive. (Present solutions, not just
problems)
– Critically evaluate actual or potential deviations to scope,
plan and budget
– A ‘tough and challenging’ inquiry focused on risks and
potential risks to project’s success
– Actions to resolve current issues & risks and potential
issues & risks
– Questions should not be viewed as challenging a person’s
capability or performance rather, questions are focused on
business processes
Typical project review / or report content includes:
– Project scope
– Project status and progress
– Financial status and project calculation ( cost and cost to
complete, cashflow)
– Monthly earned value freezing
– Risks and opportunities
– Claims
– Project planning, scheduling and resources
– Engineering & Quality
– Procurement & Deliveries
– Customer and internal changes (Change management)
– Project health and safety
– Site and logistics management
– Project warranty and close out
– Action Plan
4.10 Independent project peer reviews
4.10.1 Overview of independent project peer reviews
Main objectives of project reviews are to:
– provide an assessment of project maturity for continuation
to next phase/milestone;
– improve project management behaviors and performance
with in ABB;
– achieve improved business results and Net Promoter Score
(NPS)
– provide an opportunity to transfer knowledge and
experience from senior project managers across the Group
– determine the current real status of the project and the
changes (if any) that need to be made in people, solutions
or processes
1. Preparation
(2-4 weeks before PR)
2. Pre-Review
(1.2 weeks before PR)
3. Review Meeting
(Phase review, during
existing planned project
review)
Intial assessment
telecon with
PM
Review of key
project
documents
Finalize agenda and
interview
schedule
Conduct telephone
interviews
Pre-review
synthesis of initial
observations
Phase review (PR)
4. Report
(<1week after PR)
Finalize reports and
recommended
actions
4.10.2 Typical mandatory independence during peer reviews
Typical milestone name
Peer review objectives
Project start-up and requirements review
–
Confirm resource availability and project planning
–
Evaluate the project risks and opportunities.
–
Accept the detailed requirements, specifications and the preliminary design.
–
Secure route to achieve top level project objectives and requirements.
System design review
–
Determine prior to full-scale development and integration, whether the design is acceptable in terms of customer requirements and specifications, quality, manufacturing ability, regulations and standards
–
Start of manufacturing and integration.
Site start-up review
–
Confirm site readiness, resource availability, and project planning
–
Evaluate the risks and opportunities during site works, installation and commissioning.
Page
Independent project peer reviews are recommended for all large / complex projects, based on project complexity points. The
independent assessor will provide an external view on the project, constructively challenging the view project progress and
content from an objective point of view.
4.10.3 Independent peer review - Report overview
On track
Project on the right track with only minor or ‘normal’ issues to be resolved
– All expected deliverables are complete, phase review objectives and criteria are largely met
– Expected project maturity is achieved and no more major / significant actions are identified
Significant issues
Project under threat due to significant or ‘abnormal’ issues to be resolved
– Expected maturity is achieved with some exceptions, no major risks and / or show stoppers identified
– A plan for remedial actions must be implemented within an agreed time scale
– Assessor will meet again with project team to ensure recommended actions are taken and effective
Blocking issues
Project in real trouble, immediate senior management support needed
– Major risks and / or show stoppers have been identified, recorded and need immediate mitigation
– Expected project maturity is not achieved and specific actions have to be launched for recovery actions
– Project team to provide weekly status review of recommended actions
– Assessor will meet again with project team, together with relevant senior management, to ensure recommended actions are taken and effective
Project Management Framework | Brochure 13
4.11 ABB Quality policy
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4.12 Health and safety
4.12.2 Safety audits
A sustainable safe working environment depends on three
basic conditions as follows;
1. Safe facilities and equipment
2. Safe operating procedures
3. A safety culture based on good safety behavior and
practices
So, how do we ensure that these three legs are always in
place? We do so by a series of inspections and audits.
Health and safety audits are done to verify how the
requirements of the OHS management system: procedures,
instructions, objectives, plans, schedules, etc. are being
implemented. There are external audits (performed by third
party) and internal audits.
4.12.1 Safety inspections
Workplace inspections are performed regularly to ensure a
safe working environment is maintained. The inspections
aim to identify any potential and occurring hazards in the
workplace, and to determine the causes of the hazards. The
inspections examine unsafe or unhealthy physical conditions.
The typical inspection focuses on hazards related to buildings,
storage facilities, first aid facilities, walkways, production
equipment, fire and protection equipment, hazardous
materials, PPE, tools, etc.
4.12.3 Safety observation tours (SOTs)
These tours must be focused on the behavior of individuals
and teams and are much more than inspections. In an SOT,
the team members should identify and record both good
and bad practices and be prepared to discuss these with
the individuals concerned; praising and encouraging them
for good behavior and coaching them where the behavior is
not in accordance with requirements. It involves open and
unemotional discussion on a one to one basis so that the
reasons for and the potential impact of negative behavior are
explored and there is influence, coaching and agreement (a
contract) on how the behavior should change.
Safety inspections are normally carried out by a team
which include representatives from management, safety,
operations and other departmental representatives. These
inspections are carried out at regular intervals. Deviations and
corresponding corrective actions are recorded and followed up.
Project Management Framework | Brochure 15
5 Organization
5.1 Project organization
The following is the high-level functional view of a project organization.
Sponsor
Project Manager
PM Tasks
Contract & Claims
Manager
Project Controller
Interface Manager
Commercial Manager
Project Safety Manager
Project HR & Compliance
Manager
Project Quality Manager
Supply Chain Manager
Site Manager
Project Logistics Manager
Construction Manager
Lead Engineer /
Project Engineering
Manager
Commissioning Engineer
/Manager
Project Planner
Project Cost Controller
Design Engineer,
Discipline Engineer,
Documentation Engineer /
Manager
Page No 19
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5.1.1 Scalability of project organization
Characteristic
< 200 Project
200-450 Project
450-750 Project
> 750 Project
Complexity Points
Complexity Points
Complexity Points
Complexity Points
Project
ABB Certified Associate PM
ABB Certified Project Manager
ABB Certified Senior PM
ABB Certified Project Director
Organization
PM does all with support from Identify named people
May be part-time
Dedicated people for each block.
respective line functions.
Identify named people for
Identified named people for
each block. Some dedicated
each of PM’s tasks may be part time
and some part-time.
Manager level
for each block.
5.2 Roles and responsibilities, RACI Chart
Responsible (R)
The person involved in performing the committed task who has to make something happen.
The degree of responsibility is defined by the accountable person.
Responsibility can be shared amongst different persons.
Accountable (A)
The person who has the power of veto and is in charge of the fact that the task will be performed:
Important: for
- in the right way
each task there is
- with the right outcomes
one and only “A”.
- in the assigned time
- with the involvement of right resources
Consulted (C)
The person that is in charge of providing needed information or advice before the task is executed or decision is taken.
It can range from a simple information input to a genuine veto power, but whatever the case the person must always be consulted.
Informed (I)
The individuals that must always be informed after a decision/ action is taken or a task is executed
The RACI chart for a typical project is shown as part of this
section in next few pages. The Project Manager has flexibility
to adapt this based on project organization defined for the
project as part of Project Management Plan.
Project Management Framework | Brochure 17
Documentation Manager
R
Commissioning Manager
R
Project Engineers
Construction Manager
Project Safety Manager
R
Site Manager
R
Project Quality Manager
A
Interface Manager
R
Project Planner & Cost Controller
R
Logistics Manager
R
Commercial Manager
A
Supply Chain Manager
R
Project Engineering Manager
R
Contracts & Claim Manager
Project HR & Compliance Manager
Define the project team and relevant kick off
Organize project handover from sales
A
Review the contract and summarize
deliverables
Review and endorse the budget from sales
Purchase Order/ Contract is acknowledged
A
A
meeting schedule
to customer
Project Manager
Nominate Project Manager
Project Controller
Activity
Project Review Committee (PRC) / Sponsor
5.2.1 Project initiation and start-up
A
R
R
R
Open project in the business system (ERP)
A
R
Open repository in Documentum
A
R
Open ProMIS document
A
R
Arrange parent company guarantees /
bonds, issue invoice and collect advanced
C A
R
C A
R
payments
Update currency risk, hedging
Perform the stakeholder analysis for the
project
A
R
R
R
A
R
R
R
R
Re-evaluate the complexity calculator results
and use this data while preparing Project
R
Management Plan
Approve Project Charter
A
Page No 21
18 Project Management Framework | Brochure
Contracts & Claim Manager
Commercial Manager
Supply Chain Manager
Logistics Manager
Interface Manager
Project Planner & Cost Controller
Project Quality Manager
Project Safety Manager
Site Manager
Construction Manager
Commissioning Manager
R
R
R
R
R
R
R
R
R
R
R R R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
A
R
R
Analyze resource planning
A
R
R
Define/refine WBS
A
R
R
A
R
Review the contract
Define/organize the project team and roles
and responsibilities
Review the costing of the project including
Insurance and taxes
Create/refine Project Schedule Network
Create/refine Project Risk Management Plan
A
Create Communication Plan
A
Create/refine Quality Plan
A
Create/refine H&S Plan
A
Conduct risk analysis and open Risk Register
A
Create/refine Project Procurement Plan
A
Create/refine Project Schedule
A
Create/refine cash-flow/budget
A
Compile and get approval for Project
Management Plan
A
Conduct kick-off meetings with internal team,
Review the project planning & start-up
A
R
R
R
R
R
R
R
R
R
R
R
A
consortium (if applicable) and client
R R
R
A
Diagram
Documentation Manager
Project Engineering Manager
R
A
Activity
Project Engineers
Project HR & Compliance Manager
R
Project Controller
R
Project Manager
Project Review Committee (PRC)
5.2.2 Project planning
R
R
R
R
Page No 22
Project Management Framework | Brochure 19
Project Manager
Project HR & Compliance Manager
Project Engineering Manager
Contracts & Claim Manager
Commercial Manager
Supply Chain Manager
Logistics Manager
Interface Manager
Project Planner & Cost Controller
Project Quality Manager
Project Safety Manager
Site Manager
Construction Manager
Commissioning Manager
Project Engineers
Documentation Manager
Execute the Project Management Plan
A
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
Complete the work packages
A
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
Perform the quality assurance activities
A
Conduct Safety Observation Tours
A
Activity
Perform Supplier Qualification Assurance
(SQA)
Project Review Committee (PRC)
Project Controller
5.2.3 Project execution
R
R
A
R
Conduct procurements
A
Update ERP System & ProMIS
A
R
Organize relevant review meetings
A
R
Manage stakeholder needs and expectations
A
R
R
Ramp-up and ramp-down project team
A
R
Develop project team
A
R
Resolve CCRP issues
A
Take preventive actions to mitigate risks,
R
R
R
R
R
R
R
R
R
A
R
R
A
R
R
Look for changes and claims
A
R
R
Manage audits
A
R
A
R
A
R
R
R
R
R
R
R
A
R
R
R
R
R
R
R
purse/enhance opportunities
Look for and respond to new risks and
opportunities
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
Perform contractual and commercial related
activities required for the contract including
Permanent Establishment (PE) and consortium
R R
related activities if applicable
Manage exceptions to the Project
Management Plan
Organize lessons learned work-shop and
provide feedback
20 Project Management Framework | Brochure
Page No 20
R
Documentation Manager
R
Project Engineers
R
Construction Manager
R
Commissioning Manager
R
Site Manager
Project Quality Manager
Project Safety Manager
R
R
R
Project Planner & Cost Controller
R
R
R
Logistics Manager
R
Interface Manager
R
R
Commercial Manager
Contracts & Claim Manager
R
A
Supply Chain Manager
Project HR & Compliance Manager
Project Engineering Manager
Management Plan
Project Controller
Ensuring compliance to the Project
Project Manager
Activity
Project Review Committee (PRC)
5.2.4 Project monitoring & control
R
R
R
R
R
Monitoring the project activities against the
Project Management Plan and the performance
A
baseline for the project
Monitor and control resource utilization
A
Monitor and control scope
A
Monitor and control schedule
A
Monitor and control risks and opportunities
A
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
Monitor and control safety
A
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
Monitor and control quality
A
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
Monitor and control contract and commercial
activities
Monitor and control Permanent Establishment
activities (if applicable)
Monitor and control consortium related
activities (if applicable)
Monitor punch list resolution
Monitor compliance and initiate appropriate
R
A
R
R
R
A
R
R
R
R
R
A
R
R
A
A
R
A
R
Administer the project procurements
A
R
Verify scope
A
Report project claim status
A
R
A
R
actions
Monitor the issues associated with Cost of
Poor Quality (COPQ)
Report project performance to relevant
stakeholders
Update the Project Management Plan
A
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
R
Page No 24
Project Management Framework | Brochure 21
Documentation Manager
Commissioning Manager
R
Close project related consortium agreements
C A
R
Close procurements
A
R
Archive key contractual documents
A
Update as built documents
C
A
R
R
C
A
R
R
R
R
Archive project related technical
documentation
Publish final project performance report/
ProMIS
Organize handover to service
Organize lessons learned workshop and
A
R
R
R
R
R
R
R
A
A
R
Close the project in Business System (SAP)
A
R
Formally close the project
A
R
provide feedback
Construction Manager
R
C A
Project Safety Manager
C A
Close PE activities including tax matters
Site Manager
R
Project Quality Manager
C A
Close parent company guarantee
Interface Manager
Close Bonds and Bank Guarantees
Supply Chain Manager
R
A
Logistics Manager
R
over by customer
Commercial Manager
A
Organize Final Acceptance (FAC) and take
Project Manager
Issue final invoice and collect money
Activity
Project Controller
Project Engineers
Project Planner & Cost Controller
Project Engineering Manager
Contracts & Claim Manager
Project HR & Compliance Manager
Project Review Committee (PRC)
5.2.5 Project closure
R R R
R
R
R
R
R
R
R
R
R
R
R
Page No 25
22 Project Management Framework | Brochure
5.3 Execution of Cross – BU / Country Contracts
The Term “Collaboration Projects” refers to:
– projects that are executed by more than one legal entity
within the same BU / System Group as equal partners
(even if one unit has the formal project lead); typically two
entities are involved,
– which often have some degree of commonly shared risks
beyond Joint & Several liabilities, and
– with a division of work that typically is vertical (WBS) and
horizontal (activities1) creating a broad interface between
the parties
Due to above, the interactions between the participating units
require a quality and depth that is beyond typical consortia thus the term “Collaboration project”. Cross BU Contracts fall
under three categories:
– ABB Unit participating as sub-supplier to main ABB Unit
– Internal Consortium (closed/silent). Applicable to ABB and
third party companies
– External Consortium (open), between ABB and / or third
party companies
Cross-BU / Country Collaboration projects are a very
strong vehicle to leverage and share the available in BU
global- (technology, processes, adv.engineering, global
SCM, contract/project management etc.) and local expertise
(demand and supply market, cost advantages), and thus
properly execute projects (i.e. on schedule, on budget and
with required quality) with optimized cost base and secure a
profitable growth in selected markets.
While the responsibility for the scope of Collaboration projects
is split between the parties, successful project execution
requires the participating units to act as one entity executing
one project. This fact has wide ranging effect on the project
setup and procedures, and the required mindset of the project
team members.
1. e.g. base design, detailed design, project management, procurement,
logistics, on- and offshore project management, site management, installation &
commissioning, etc.
External consortium
Customer
External consortium
External consortium
External consortium
Customer
Customer
Customer
Customer
External
Consortium
External
Consortium
Contract
Contract
Consortium
Partner 1
ABB LE 1
LE: Legal Entity
Consortium
Consortium
Partner
2
Partner
1
ABB
ABB LE
1 LE 2
External
Consortium
Internal consortium
Internal consortium
Internal consortium
Consortium
Partner 1
ABB LE 1
Consortium
Partner 2
ABB LE 2
LE: Legal Entity
LE: Legal Entity
LE: Legal Entity
Consortium
Consortium
Partner 2 Leader
ABB LE 2ABB LE 1
Consortium
Internal
Leader
Consortium
ABB LE 1
Consortium
Internal
Partner
Consortium
ABB LE 2
Consortium
Partner
ABB LE 2
LE: Legal Entity
Page No
26No 26
Page
Project Management Framework | Brochure 23
5.3.1 Key aspects of collaboration projects
5.3.1.1 Division of works (DOW)
A clear DOW is the single most important pre-requisite to
successful execution of any project with multiple project
participants.
Each party shall then take full responsibility for the execution
of its own portion of the DOW, in the mutually agreed time
and sequence, and shall manage any associated risks (even
if shared), under the leadership of the Overall PM and in line
with the overall project execution schedule.
5.3.1.2 Transparency across units
Fast and unhindered access to key project data is a
pre-requisite for successful execution of any project. In
Collaboration projects, transparency is also a key to building
and maintaining mutual trust between the parties.
5.3.1.3 Project organization
As the project team is representing multiple units with
individual targets, management cultures, and working habits,
the forming of a strong project team, with individuals intent
on delivering the best result for ABB is a key for successful
execution of collaboration projects. The Overall PM is
specifically critical to the success of Collaboration projects
and shall be given the mandate and resources to act and
speak for the project and not for one unit only. The Project
Manager from Lead Unit (Lead PM) has ultimate authority on
contract execution.
– A detailed RACI chart shall be issued to all participating
units as part of Project Management Plan.
– The Lead PM has the authority to appoint the following
project roles to coordinate with different units on defining
an integrated technical solution to the customer as per the
contract:
o Lead Project Engineering Manager
o Lead Commissioning Manager
o Lead Site Manager
24 Project Management Framework | Brochure
5.3.1.4
Project reporting and reviews
Project STECO shall be formed consisting of the Heads of the
respective units, and representatives of the BU/SG in order
to make sure the project is executed in the best interest of all
involved parties, to monitor the progress of the execution and
project financial performance, and take measures if last prove
unsatisfactory.
The responsibility to run the project and for the resulting
bottom line remains with Overall PM and the participating
units. Required decisions shall be taken by the project team
or the management of the participating units in mutual
agreement and without STECO involvement, as long as Risk
review provision are respected and project risk profile is not
negatively affected.
5.4 Project manager development
Project Team
Member
Sales person
graduate /
New hire
I
II
III
IV
Associate
Project Manager
Project Manager
Senior
Project Manager
Project Director
The project team member, sales person etc. may start the project management career at Associate PM level or PM level
depending on the age, experience, skills, etc.,
Page No 28
5.4.3 Project management recertification requirements
5.4.1 Overview of project management training
Senior Pms
and Project
Directors
ABB
Mentoring
and
Coaching
ABB
Advanced
Project Risk
Management
Independent
Peer
Reviews Assessment
and
Reporting
ESI Rapid
Assessment
and Recovery
of Troubled
Projects
ABB
Negotiations
ABB
Change & Claim
Management
ABB 4Q
for Project
Managers
Project
Leadership,
Management and
Communication
ABB
Leadership
Competencies
ABB Project
Risk
Management
Tools 2:
Planning &
Execution
Tracking
ProMIS
ESI Project
Management
Applications
Project
Managers
Recertification is needed in following cases:
– The candidate wants to upgrade to next level during or
expiry of 3 years.
– The candidate wants to extend the certificate for another
period of 3 years at the same level after the expiry of the
certification period.
5.4.4 Functional competency assessment for project
managers
Functional competency assessments are:
– Mandatory for PMs applying for senior PM or Project Director certification
–
Recommended
for already certified PMs applying for
Associate
ESI Project
Tools 1:
ABB Project
ABB Health
Project
Planning,
Business
recertification
Management
and Safety
Managers
Analysis and
System / ERP
Framework
Control
The competency assessment process has three parts:
1. The first part of the process is a self-assessment by the
candidate.
5.4.2 Project management certification requirements
2. The second part is a 90 minute PM functional competency
assessment interview which will be conducted by Local
PM Functional
No. of years
No. of Projects with
Certification
Division Assessors.
Competency
of PM
Project
Level
Assessment
Experience
Complexity
3. The third part focuses on training and development.
The candidate will be invited for a feedback interview to
2 projects; > 650 project
Project
Mandatory
10
complexity points per project
Director
receive a Personal Competence Development Plan. This
Senior
Plan includes feedback on candidate’s PM functional
2 projects; > 350 project
Project
Mandatory
6
complexity points per project
competency assessment results and any necessary
Manager
Project
3 projects; > 200 project
development actions to close gaps and enhance
3
Recommended
Manager
complexity points per project
Page No 28competencies to achieve the targeted level. The actions to
2 projects; > 100 project
Associate
close any identified gaps will be agreed upon by candidate
Optional
1
complexity points per project
PM
and local division assessors. Gaps are then closed through
targeted activities such as mentoring, coaching, and
training etc.
Project Management Framework | Brochure 25
6 Project management tools
SharePoint 2010 Collaboration
Document Management System (Documentum)
Project Planning and Execution Tracking
ProSales
Risk Review
ProMIS
ServIS
Lessons Learned Knowledge Base
ERP System
6.1 ABB Collaboration Program
The ABB Collaboration Program will make an extensive set of
online collaboration tools and services which aim to increase
personal and business productivity.
6.4 Risk Review
The Risk Review application and process is designed to
support and minimize the number of risk review meetings
while ensuring consistency and compliance with GD/LC-24.
6.2 Document Management System (Documentum)
6.5 ProMIS
The primary mission of Enterprise Content Management
(ECM) service is to:
–Facilitate Global Collaboration in projects and between
engineering centers
– Ensure Security and Compliance
– Reduce Infrastructure Footprint
Web ProMIS is a Group tool that is used as a framework for
holding Project Execution Risk Review meetings.
6.3 ProSales
ABB ProSales is a business initiative to facilitate effective
project sales collaboration across ABB from lead identification
to project award.
26 Project Management Framework | Brochure
6.6 ServIS
Page No 30
ServIS is a common global tool to track and help manage
ABB installed base of products and systems.
7 Project management communities
7.1 Project management council
7.2 PM champions and project managers
Collectively;
– decide which improvement actions should be prioritized for
implementation group-wide and which should be promoted
as best practices for optional Division/Local adoption
– approve and implement an “ABB Project Management
Framework” to formalize agreed rules & guidelines for
Project Management in ABB
PM Champions & Project Managers
– Actively spread best practices and lessons learned in
project management across ABB
– Provide mutual support and problem solving on critical
project challenges
– Support independent phase/project reviews within and
across Units & Countries
– Support the PM Council by providing constructive
feedback from a practitioners viewpoint
– Prepare and propose content for the ‘ABB Project
Management Framework’ for PM Council approval
Individually;
– members take responsibility for ensuring their respective
Division/ Country remains aligned and positively engaged
– represent the PM’s of their home country by acting as Key
Country PM Champions
7.3 PM Council and Network – Links to division and country
PM Council
Local HR Talent
Management
- Manage local
PM Competency
Assessment
Process
- Ensure
alignment with
local strategy &
priorities
Division PM
Champion
Country
Management
Ensure alignment with locl strategy & priorities
Support & Promote the PM Council and Network
Region / Local Division
PM Champion
- Promote ABB PM Processes
& Tools locally
- Lead Project Reviews &
OPM3 Assessments
- Conduct local PM
Competency Assessments
Local Division
Management
- Support the local PM Champion
- Promote ABB PM Processes & Tools
locally
- Ensure local PM Competency Assessment
reporting is done periodically
.
Project Managers
Project Management Framework | Brochure 27
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