Managing a Portfolio of Projects –
A Playbook for Success
Research Team 303
Implementation Session
2014 CII Annual Conference
July 21–23 • Indianapolis, Indiana
RT 303 – Team Members
• Baabak Ashuri, Georgia Tech
• John Logan, Irving Oil, Ltd.
• Rob Bailey, Fluor Corporation
• Sandra MacGillivray, Coreworx
• Scott Bergoon, Hargrove Engineers +
Constructors
• Reza Masoumi, Northeastern University
• Fred Delie, Georgia-Pacific, LLC
• Charlie O’Hanlon, Architect of the Capitol
• James Dyer, WorleyParsons
• Marie Robinson, Jacobs
• Mohamed El-Mehalawi, Faithful+Gould
• Mohsen Shahandashti, Georgia Tech
• Roger Haynes, ConocoPhillips
• Shaun Tatum, Southern Company
• Roger Holtzclaw, BP
• Ali Touran, Northeastern University
• Vincent Huang, Parsons
• Davy Wilson, BP
• Rick Ikasalo, SABIC
• Tim Wolf, Anheuser-Busch InBev
• Gary Lanier, URS Corporation
• Edward Minchin, University of Florida
Implementation Session Team
Moderator
Gary Lanier, URS Corporation
Panel
Baabak Ashuri, Georgia Tech
Rick Ikasalo, SABIC
James Dyer, WorleyParsons
Vincent Huang, Parsons
Roger Holtzclaw, BP
Portfolio
management
Playbook
Essential Question
What practices, techniques, processes
and technology are most effective for
managing a portfolio of projects?
What is a Portfolio of Projects?
A group of related or unrelated
projects and/or programs
managed by a single individual -
the portfolio manager
Portfolio Formation Strategies
Owners
• Budget control
• Aid in project selection and prioritization
Contractors
• Align with client requirements
• Align with client processes
What is a Portfolio of Projects?
A group of related or unrelated
projects and/or programs
managed by a single individual -
the portfolio manager
Research
Objectives
• Understand the portfolio management problem, including its main
differences with management of individual projects;
• Identify and analyze techniques, technology, tools, metrics and
processes recommended for portfolio management; and
• Recommend practices to help improve overall portfolio management
through a well-defined process that is repeatable across portfolios.
Research - Methodology
Collect
Data
• Industry Survey
• Interviews
• Case Studies
Analyze
Data
• Identify Business Drivers
• Identify Recommended Practices
Develop
Tool
• Portfolio
Management
Playbook
Research - Survey
Research - Survey
• Breakdown of portfolio sizes
Research - Survey
• Breakdown of portfolio budget ranges
Research - Survey
• Breakdown of portfolio project durations
Research - Survey
• How successful is Portfolio management in firms?
Research - Survey
• Areas where firms need to improve metrics
Research – Interviews and Case Studies
Interviews
• Selection of 15 Interview Organizations
– Interview questionnaires
Case Studies
• Selection of 6 Case Studies
http://todaycut.com/
Playbook Formation
Interviews
Case
Studies
Survey
Playbook
Playbook Validation
Survey
“Overall the product is very
good and beneficial.”
• Industry Experts
• Owners & Contractors
3
Questions
“The guidebook contains a
significant amount of valuable
information.”
• How useful is each section?
• How useful is overall Playbook?
• Suggested areas for further research?
Feedback
• All sections were considered useful by a majority
• Limited “new” info for advanced firms
• Performance & Risk Management, Case Study
Playbook Overview
Formation
Strategies
Portfolio
Manager
Role
Grouping
Portfolio
Performance
Key Results
Areas
Attributes
Portfolio
Practices
Resource
Risk
Financial
KPIs
Lessons Learned
Authority
Change
Prioritizing
Career Path
Dashboard
Appendix
FEP
Case Study:
A System
Example
Role of the Portfolio Manager
Portfolio
Manager
Role
Attributes
Attributes
•
•
•
•
•
Interpersonal skills
Communication
Setting priorities
Lead and manage teams
Understanding business objectives
Training
•
•
•
•
•
Leadership and Management
Project Management
Time Management
Financial Management
Risk Management
Authority
Career Path
Role of the Portfolio Manager
Common Career Path
Project
Engineer
Project
Manager
Portfolio
Manager
Technical – Leadership – Management – Communications
Recommended Process for Portfolio
Performance Management
1. Determine Key
Results Areas
Portfolio
Performance
Key
Results
Areas
KPIs
Dashboard
4. Evaluating the
Portfolio Performance
Management Process
2. Establish Key
Performance
Indicators
3. Collecting Data
and Reporting
Results
Recommended Process for Portfolio
Performance Management
Key Results Areas (KRAs):
• Schedule
• Cost / Cash Flow
• Safety and Environment
• Change Management/ Scope
• Quality
• Resource Allocation
• Risk Management
• Procurement and Supply-Chain
Management
• Client Satisfaction
Recommended Process for Portfolio
Performance Management
Schedule – Key Performance Indicators (KPIs) include:
• Number / Percent of Milestones Completed (or Missed) vs. Planned
• Number / Percent of Projects on (or behind) Schedule
• Total / Average Days ahead of (or behind) Schedule
• Schedule Durations Compared to Benchmarks
• Number / Percent of Projects with Schedule Durations
Longer (or Shorter) than Benchmarks
Recommended Process for Portfolio
Performance Management
Data Collection and Evaluation
• Portfolio Manager will need to establish the data collection process
• Common format for collecting data
– Software solutions (spreadsheets, databases, Enterprise Systems)
• Data interpretation trends and comparison
• Report or dashboard
– Traffic lights
– Scalability
– Audience
Recommended Process for Portfolio
Performance Management
Monitoring and Controlling
• Process periodically evaluated to ensure Stakeholder
requirements are met
– Minor adjustments may be necessary to produce more meaningful
results
– Wholesale changes may be required for major changes such as new
or different business drivers
Portfolio
Practices
Recommended Practices
• Six areas identified,
– Resource Management
– Risk Management
Resource
Portfolio
management
Playbook
– Financial Management
Risk
Financial
Lessons Learned
Change
FEP
– Lessons Learned
– Change Management
– Front End Planning
• Existing practices and techniques at the project but not
portfolio level
Recommended Practice – Resource Management
• “Sharing” – workforce, schedule, budget, procurement
strategy
• Majority of data related to workforce
• Recommendations
– Resource planning and ongoing forecasting process
– Allow portfolio manager appropriate resource allocation authority
– Develop metrics to measure resource management performance
– Consider use of appropriate software
Recommended Practice – Risk Management
• Individual project risks can impact other projects
• Most of the project risk management techniques can be
applied at the portfolio level
• Recommendations
– Consistent portfolio risk practice
– Portfolio level risk breakdown
structure (RBS)
– Identify portfolio risk manager
– Perform risk assessment at portfolio level
Recommended Practice – Risk Management
Recommended Practice – Financial Management
• Roll up budgets and report at the portfolio level
• Activity planning process
• Contingency and cash flow
• Recommendations
– Portfolio budget allocation authority
– Contingency at the portfolio level if possible
– Manage Cash Flow at the portfolio level
– Develop cost performance metrics and dashboards
Recommended Practice – Lessons Learned
• Successful companies use formal lessons learned process
• Lesson learned from projects should be integrated into
portfolio management process
• Recommendations
– Systematic collection of project
lessons learned
– Analysis of lessons learned
– Implementation of lessons learned documentation and communication
– Identify lessons learned champion
Recommended Practice – Change Management
• Common among all companies but lack of consistency
• Project changes can create chain reaction on other projects
• Recommendations
– Consistent procedure and process
– Opportunity to automate the process
– Introduce change metrics for
measurement
– Inter-project impact analysis on
changes
Recommended Practice – Front End Planning
• One of the most widely used CII best practices
– Front end planning toolkit
– PDRI
– Alignment thermometer
• Recommendations
– Rely on front end planning
tools during portfolio formation
– Standardization of the front end planning process
– Benchmark front end planning metrics across the portfolio
Playbook Appendix: Example – Portfolio
Management in Action
• Owner organization
• Multiple portfolios – total
value of several billion
dollars
• Assumes KRAs determined
& KPIs established
• Portfolios formed based on
geographical regions
Playbook Appendix: Example – Portfolio
Management in Action
Key Components Necessary
for Effective Portfolio
Management
Analytics,
Reporting
Data Collection
and Management
Standardized Processes
and Tools
Standards and Guidelines
Playbook Appendix: Example – Portfolio
Management in Action
An effective portfolio performance
management strategy:
• Ensures portfolios align with the
organization’s strategic direction
• Enables benchmarking of performance
• Supports continuous improvement in
project and portfolio delivery
• Allows for development of best practices
for portfolio performance management
Playbook Appendix: Example – Portfolio
Management in Action
Data Collection and Management:
• Single, robust database
• Shared website – portal and single
access point
• Project level – performance trends
• Portfolio level – resource management
and portfolio performance
Playbook Appendix:
Project Dashboard
Executive summary
Project
Dashboard
Individual Project
Portfolio Mgr:
Project Title:
Date:
Project Mgr:
Jake Ackerman
Dominic Parker
Stage 1
BW Gas Separation
End of Sep-2013
Executive Summary
Project Scope
Several existing and new Shippers of high Gas/Oil Ratio (GOR) crude have requested increased firm capacity in the Pipeline system. The project will deliver an additional
1460tpd of Natural Gas Liquid (NGL) capacity at the revised composition.
The business objective is to increase the onshore facility handling capacity to attract new business to the system. The project will generate significant tariff and trading
account receipts in the Onshore Facility and enables production in other assets.
Current options/solutions are to implement a number of modifications and upgrades to enable the increased NGL processing capacity.
Key Updates this Period
Planned 80% Actual 78.1%
25,000 manhours of direct manhours were achieved in September, equivalent
to 1/3 of all remaining direct manhours on the project.
Mechanical Completion has excedded 50% overall with 76 Priority 1
Mechanical Completion Certificates remaining and anticipated to be closed
within the next period.
Planned 85.3% Actual 80.9%
Plant 2 critical tie-in completed and Plant 1 tie-in constructed.
Major Items in the Plan for Next Month
Complete Plant 2 Outage 2013
Complete Cooling Water pipework hydrotest.
Complete Crude Post Weld Heat Treatment and Hydrotest.
Complete Gland / Term of power / instruments cabling.
Last Instrument to be Installed
Complete installation of Crude (Dehydrator) pipework.
Complete installation of Fire & Gas and Flow Transmitter's.
Areas of Concern/Opportunities
Complete Plant 2 Outage 2013
Complete Cooling Water pipework hydrotest.
Complete Crude Post Weld Heat Treatment and Hydrotest.
Complete Gland / Term of power / instruments cabling.
Last Instrument to be Installed
Complete installation of Crude (Dehydrator) pipework.
Complete installation of Fire & Gas and Flow Transmitter's.
Cost Performance
Schedule
(Current Year)
Cost ($K)
$10,000
$9,000
$8,000
$7,000
Jan-13
Feb-13
$6,000
Baseline Forecast ###### $7,077,898
$5,000
###### $5,766,911
Actual/Reforecast
$4,000
Cumulative Baseline Forecast
###### ###########
Cumulative Actual/Reforcast
###### ###########
$3,000
$2,000
Jan-13
Feb-13
$K
$1,000
Actual Forecast ######
$0 $7,078
$80,000
$70,000
$60,000
###### Apr-13 ###### Jun-13
Jul-13
###### ###### ###### ######
$4,802,387 ### ##### $2,774,500 ###### ###### ######
Oct-13
###### ######
$50,000
$40,000
$5,963,629 ### ##### $3,536,030 ###### ###### ######
###### ###### ###### ######
###### ###### ###### ######
$45,706,480 ### ##### ########### ###### ######
###### ###### ###### ######
$50,488,549 ### ##### ########### ###### ######
###### Apr-13 ###### Jun-13
Jul-13
###### ###### ###### ######
Jan-13 ######
Feb-13######
Mar-13
$5,767
###### Apr-13
######
Actual/Reforecast ######
### #####
$30,000
$20,000
$10,000
### ##### #### ###### ######
$4,802 ### ##### #### ###### ######
May-13 $5,964
Jun-13 ### Jul-13
Aug-13
##### ####
######Sep-13
###### Oct-13
Nov-13
Dec-13
$0
Cumulative Baseline Forecast ######
$14,156 ######
######Mar-13
###### ######
Jan-13
Feb-13
Apr-13
$45,706 Jun-13
### ##### Jul-13
#### ######
######
May-13
Aug-13
Baseline
Forecast
Cumulative
Actual/Reforcast
######
$6,557
$50,489 $6,557
### ##### $4,802
#### ######$4,802
######
Sep-13
$4,802
Oct-13
$2,775
Nov-13
$2,775
Dec-13
$2,775
Actual/Reforecast
$7,078
$7,078
$6,557
$15,095 ######
######$7,078
###### ######
$9,328
$5,767
$5,132
$9,168
$6,308
$3,609
$3,536
$2,127
$3,423
Cumulative Baseline Forecast
$7,078
$14,156 $21,234 $27,790 $34,347 $40,904 $45,706 $50,509 $55,311 $58,086 $60,860 $63,635
Cumulative Actual/Reforecast
$9,328
$15,095 $20,227 $29,395 $35,703 $44,525 $50,489 $56,094 $59,703 $63,239 $65,366 $68,789
$8,822
$5,964
$5,606
Original Budget
$224,278,397
Current Budget
$229,690,000
Estimated
Variance
Completion Cost
-2.41%
$224,278,397
Current Month (Sep-2013)
Spend ($)
Planned
$4,802,387
Actual
$3,608,800
-24.85%
Variance
End of Year Spend ($)
Planned
$63,634,753
Forecast
$68,789,168
8.10%
Variance
Schedule Performance
Project Schedule
Project Stage
Cost
Planned vs Actual/Reforecast Cost
Stage 1
Stage 1 (BaseLine)
Stage 2
Stage 2 (BaseLine)
Stage 3
Stage 3 (BaseLine)
Stage 4
Stage 4 (BaseLine)
Detailed Design
Detailed Design (BaseLine)
Procurement
Procurement (BaseLine)
Construction
Construction (BaseLine)
Outage
TAR (BaseLine)
Commissioning
Commissioning (BaseLine)
0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 63 66 69 72 75 78
Time Frame (Months)
Project Stages
Stage
Start
End
1. Appraise Sep-12
Jan-14
2. Select
Jan-14
Apr-15
3. Define
May-15 Jan-16
4. Execute Feb-16 Sep-18
Key Events / Deliverables
Concept Selection
Oct-14
Define Plan Approval Apr-15
Exec Plan Approval
Jan-16
Pre-S/U HSE Review
Jun-18
Commissioning
Aug-18
Schedule Durations (Mths)
Stage
Base Line Forecast
1. Appraise
9
16
2. Select
12
15
3. Define
9
9
FEL
30
40
4. Execute
42
32
Overall
72
72
Schedule Variation
33.26%
FEL
-23.88%
Execution
0.00%
Overall
Complete Cooling Water pipework hydrotest.
Complete Crude Post Weld Heat Treatment and Hydrotest.
Complete Gland / Term of power / instruments cabling.
Last Instrument to be Installed
Complete installation of Crude (Dehydrator) pipework.
Complete installation of Fire & Gas and Flow Transmitter's.
Playbook Appendix: Project Dashboard
Cost Performance
Planned vs Actual/Reforecast Cost
(Current Year)
Cost ($K)
$10,000
$9,000
$8,000
$7,000
Jan-13 Feb-13 ###### Apr-13 ###### Jun-13
$6,000
Baseline Forecast ###### $7,077,898 ###### ###### ###### ######
$5,000
###### $5,766,911 ###### ###### ###### ######
Actual/Reforecast
$4,000
Cumulative Baseline Forecast
###### ########### ###### ###### ###### ######
Cumulative Actual/Reforcast
###### ########### ###### ###### ###### ######
$3,000
$2,000
Jan-13 Feb-13 ###### Apr-13 ###### Jun-13
$K
$1,000
Actual Forecast ######
$0 $7,078 ###### ###### ###### ######
Actual/Reforecast ######
Cumulative Baseline Forecast ######
Baseline
Forecast
Cumulative
Actual/Reforcast
######
Actual/Reforecast
$80,000
$70,000
$60,000
Jul-13
### #####
Oct-13
###### ######
$40,000
$5,963,629 ### ##### $3,536,030 ###### ###### ######
$30,000
$45,706,480 ### ##### ########### ###### ######
$50,488,549 ### ##### ########### ###### ######
Jul-13
$20,000
$10,000
### ##### #### ###### ######
$4,802 ### ##### #### ###### ######
Jan-13 ######
Feb-13######
Mar-13
Jun-13 ### Jul-13
Aug-13
$5,767
###### Apr-13
###### May-13 $5,964
##### ####
######Sep-13
###### Oct-13
$14,156 ######
######Mar-13
###### ######
Jan-13
Feb-13
Apr-13
$7,078
$7,078
$6,557
$15,095 ######
######$7,078
###### ######
$9,328 $5,767 $5,132 $9,168
$50,000
$4,802,387 ### ##### $2,774,500 ###### ###### ######
Nov-13
Dec-13
$0
$45,706 Jun-13
### ##### Jul-13
#### ######Aug-13
###### Sep-13
May-13
$6,557
$50,489 $6,557
### ##### $4,802
#### ######$4,802
###### $4,802
Oct-13
$2,775
Nov-13
$2,775
Dec-13
$2,775
$6,308
$3,536
$2,127
$3,423
$8,822
$5,964
$5,606
$3,609
Cumulative Baseline Forecast $7,078
$14,156 $21,234 $27,790 $34,347 $40,904 $45,706 $50,509 $55,311 $58,086 $60,860 $63,635
Cumulative Actual/Reforecast $9,328
$15,095 $20,227 $29,395 $35,703 $44,525 $50,489 $56,094 $59,703 $63,239 $65,366 $68,789
Schedule Performance
Original Budget
$224,278,397
Current Budget
$229,690,000
Estimated
Variance
Completion Cost
-2.41%
$224,278,397
Current Month (Sep-2013)
Spend ($)
Planned
$4,802,387
Actual
$3,608,800
-24.85%
Variance
End of Year Spend ($)
Planned
$63,634,753
Forecast
$68,789,168
8.10%
Variance
Actual Forecast ######
$7,078 ###### ###### ###### ######
$0
Cumulative Baseline Forecast ######
Baseline
Forecast
Cumulative
Actual/Reforcast
######
$4,802 ### ##### #### ###### ######
Jan-13 ######
Feb-13######
Mar-13
Jun-13 ### Jul-13
Aug-13
$5,767
###### Apr-13
###### May-13 $5,964
##### ####
######Sep-13
###### Oct-13
Actual/Reforecast ######
$14,156 ######
######Mar-13
###### ######
Jan-13
Feb-13
Apr-13
$7,078
$7,078
$6,557
$15,095 ######
######$7,078
###### ######
$9,328 $5,767 $5,132 $9,168
Nov-13
Dec-13
$0
$45,706 Jun-13
### ##### Jul-13
#### ######Aug-13
###### Sep-13
May-13
$6,557
$50,489 $6,557
### ##### $4,802
#### ######$4,802
###### $4,802
Oct-13
$2,775
Nov-13
$2,775
Dec-13
$2,775
$6,308
$3,536
$2,127
$3,423
Variance
8.10%
Playbook Appendix: Project Dashboard
Actual/Reforecast
$8,822
$5,964
$5,606
$3,609
Cumulative Baseline Forecast $7,078
$14,156 $21,234 $27,790 $34,347 $40,904 $45,706 $50,509 $55,311 $58,086 $60,860 $63,635
Cumulative Actual/Reforecast $9,328
$15,095 $20,227 $29,395 $35,703 $44,525 $50,489 $56,094 $59,703 $63,239 $65,366 $68,789
Schedule Performance
Project Stage
Project Schedule
Stage 1
Stage 1 (BaseLine)
Stage 2
Stage 2 (BaseLine)
Stage 3
Stage 3 (BaseLine)
Stage 4
Stage 4 (BaseLine)
Detailed Design
Detailed Design (BaseLine)
Procurement
Procurement (BaseLine)
Construction
Construction (BaseLine)
Outage
TAR (BaseLine)
Commissioning
Commissioning (BaseLine)
0 3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 63 66 69 72 75 78
Time Frame (Months)
Project Stages
Stage
Start
End
1. Appraise Sep-12 Jan-14
2. Select
Jan-14 Apr-15
3. Define May-15 Jan-16
4. Execute Feb-16 Sep-18
Key Events / Deliverables
Concept Selection
Oct-14
Define Plan Approval Apr-15
Exec Plan Approval
Jan-16
Pre-S/U HSE Review
Jun-18
Commissioning
Aug-18
Schedule Durations (Mths)
Stage
Base Line Forecast
1. Appraise
9
16
2. Select
12
15
3. Define
9
9
FEL
30
40
4. Execute
42
32
Overall
72
72
Schedule Variation
33.26%
FEL
-23.88%
Execution
0.00%
Overall
0
Cost Performance
Timber Gas Lift
Beachfield Flare
GH Platform Removal
Marine Vapour Management
NE Decommissioning
Sun Decommissioning
Prep for wells (BD50)
BW Gas Separation
GS Fire & Gas Project
XP900 Accommodations
Quad 205 Polymer Project
DRAMP
NH500 QD Project
0
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Feb-13
$ 14.6 m
$ 13.4 m
$ 29.2 m
$ 29.0 m
M ar-13
$ 14.6 m
$ 12.1 m
$ 43.8 m
$ 41.1 m
Apr-13
$ 15.1 m
$ 16.5 m
$ 58.9 m
$ 57.5 m
M ay-13
$ 15.1 m
$ 15.3 m
$ 74.0 m
$ 72.9 m
Actual
$141.0
Variance
-4.47%
Forecast
$217.7
Variance
2.98%
Sep-14
Aug-14
Jul-14
Jun-14
$m
May-14
$5 m
Jan-13
Actual Base Forecast
BaseLine Forecast
$ 14.6 m
Actual Re-Forecast
Actual/Re-Forecast
$ 15.6 m
Cumulative Base Forecast
Cumulative
Base Forecast
$ 14.6 m
Cumulative
Base Re-Forecast
Cumulative Actual/Re-Forecast $ 15.6 m
Jun-13
Jul-13
$ 15.1 m $ 19.5 m
$ 19.4 m $ 15.9 m
$ 89.2 m $ 108.6 m
$ 92.2 m $ 108.2 m
Aug-13
$ 19.5 m
$ 16.6 m
$ 128.1 m
$ 124.8 m
Sep-13
$ 19.5 m
$ 16.2 m
$ 147.6 m
$ 141.0 m
Oct-13
$ 21.3 m
$ 24.0 m
$ 168.9 m
$ 165.0 m
Nov-13
$ 21.3 m
$ 25.1 m
$ 190.1 m
$ 190.1 m
Dec-13
$ 21.3 m
$ 27.6 m
$ 211.4 m
$ 217.7 m
2
3
1
2
1
1
1
1
2
3
1
2
2
1
1
1
2
3
2
2
2
2
1
1
2
3
3
4
2
3
2
2
4
2
2
2
2
1
1
2
4
2
2
2
2
1
1
2
3
3
4
2
3
2
2
3
3
2
3
3
2
3
3
2
3
3
3
3
3
3
4
3
Project Stage
Stage 1
9
11
16%
Stage 2
11
13
17%
Schedule
Index
2
2
3
4
2
3
2
Variation
4
2
3
1
2
1
1
1
1
2
2
3
4
2
3
2
Planned
No of
Months
Actual / Reforecast
No of
4
2
2
1
1
1
1
1
1
1
2
3
4
2
3
2
Aug-14
1
2
2
4
2
2
2
Jul-14
1
2
2
4
2
2
2
Jun-14
1
2
2
4
2
2
2
May-14
1
2
2
3
2
2
2
1
4
2
2
1
1
1
1
1
1
Apr-14
Project Listing
Enhanced Power Upgrade
HCFC Replacement
Tiger Decommissioning
Baku Cond Lines
Timber Gas Lift
Beachfield Flare
GH Platform Removal
Marine Vapour Management
NE Decommissioning
Sun Decommissioning
Prep for wells (BD50)
BW Gas Separation
GS Fire & Gas Project
XP900 Accommodations
Quad 205 Polymer Project
DRAMP
NH500 QD Project
Mar-14
Schedule Performance
Stage 3
7
7
Front End Loading (Stage 2 & Stage 3)
19
20
8%
1.15
Stage 4
26
21
-20%
0.80
Overall Cycle Time (Stage 2 to Stage 4)
46
41
-11%
0.87
Overall Cycle Time (Stage 1 to end Stage 4)
51
54
5%
2
4
2
2
2
2
1
1
2
4
2
3
2
2
1
2
2
4
2
3
2
2
1
2
2
4
2
3
3
2
2
2
Risk
Status
Project
Stage
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
D
D
D
D
D
D
C
D
D
D
D
C
D
D
C
D
4
4
3
3
4
4
3
3
3
4
2
2
4
4
3
4
Stage 4
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 1
Legend
Stage 3
Stage 2
10%
Stage 4
Risk Management
Potential High Consequence Risks (D+) (Held by Projects)
ID
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Project Title
Baku Cond Lines
Prep for wells (BD50)
Prep for wells (BD50)
HCFC Replacement
HCFC Replacement
HCFC Replacement
Beachfield Flare
Beachfield Flare
Beachfield Flare
Timber Gas Lift
GH Platform Removal
GH Platform Removal
GH Platform Removal
Prep for wells (BD50)
Sun Decommissioning
Sun Decommissioning
Risk Title
Incident occurring during Hot Work
Collision: Vessel Operations
West crane removal: Dropped objects
PAU Collision with live plant
Loss of control over live plant
Incident occurring during Hot Work
HLV proximity to platform
Dropped module/collision - HLV lifting operations
Insecure HLV anchoring
Primary barrier against gas-lift pressure failure: Casing Bursts
Dredging: Platform stability compromised
HLV Loss of Stability: HLV Capsize
Failure of Personnel Transfer System
E-W Crane move: DroppedObjects
HLV Loss of Stability: HLV Capsize
Failure of Personnel Transfer System
Severity
Baku Cond Lines
Planned
$147.6
Planned
$211.4
Freq'y
Tiger Decommissioning
Variance
-16.92%
$10 m
Severity
HCFC Replacement
Scope defined & concluded with high probability existing plant inventory will not last until new plant is in place. Further
contingency measures required if derogation not successful. Plant location evaluation on-going. Identified potential dependency
with control room relocation project that may require increased priority. Issues require escalation. On track towards Stage 3
approval in Dec 13. R200 final Statement of Requirements submitted for review and approval. R200 safety and environmental
studies on-going. Management of Change for Project Manager change-out progressing.
Project work progressing on schedule. There is currently a risk that Wells PA activity will be delayed impacting the eventual
facilities removal date.
Project slippage of 2 months expected (Sep14 new deterministic date.) Slippage caused by late identification and management of
Hazards associated with construction of permanent access road. Recovery plan developed. Temporary road will be used to start
critical path work. This will require permit consent and temporary Management of Change approval (2 wks.) Hot Work Go-No-Go
review conducted & work approved to commence. Waivers raised against planning gate criteria to allow mobilisation of
contractors & start of critical path work (support given by Sr Mgmt.) First batch of pipe spools fabricated & associated work packs
completed.
Progressing work to demonstrate technical viability of production well retrofit to artificial gas lift and approval by GWO EA via
decision paper (expected to obtain sign off by Dec 13.)
Approval granted to proceed with approach to fabrication market and preliminary meetings held with Senior Management.
Fabrication contract targeted for issue Jan 2014 for a mobilisation window of June-August 2015. Approval received for
Contracting Strategy utilising Fuji SOLUTIONS to complete EPC (including new tower fabrication). Fatigue/NDT survey of existing
substructure nearing completion ensuring continued integrity, no issues identified to date. Final Statement of Requirements to be
issued for sign off by end of Nov. Project Execution Plan issued for review. On track for Stage 3 Approval in Dec. Cost estimate &
schedule being developed including Monte Carlo analysis.)
Meeting held with Partner, Confidentiality agreement being put in place and outline interface schedule defined. Team working to
develop comparative assessment of the two options to make recommendation on the way forward by year end.
Best Available Technique (BAT) report completed. Project to be closed-out. Odour Mgmt. Strategy to be handed over to
Operations.
Closing out and finishing handover to Operations.
Progressing in Current Organization until end of Stage 2. Deployment of Procurement & Supply Chain Management resource
critical to the success of this project.
Schedule Driven, transition to Stage 3 due in October. Approval of Stage 3 Financial Approval to meet project schedule will be a
challenge.
Plant 1 equipment & 4th out of 4 Waste Heat Recovery Unit's (2014 scope acceleration) released. Plant 1/2 module hydrotest and
flushing completed (to enable Mechanical Completion next week.) Twox20" cooling water piping rework on Plant 3 Module ongoing (to be completed by end of Nov.) On track towards agreed capacity release milestone in Dec 13. Project down manning in
progress.
Info Note approved by Senior Management to close existing project and approve forward plan. Preparing Concept Definition
Memorandum. Reviewing organization chart. Independent review of remaining work scope to align with business imperatives.
Contractor progressing Stage 1 activity set to plan. Contractor offshore survey completed in November. Structural viability work
nearing completion with early results indicating compliant topsides members for the Reference Case. Decision Paper issued to
document transition into Stage 2. Risk workshops completed and all major projects risks identified, assessed and risk owners
assigned. Targeting Stage 1 to Stage 2 Project Review Meeting in Jan 2014.
Started to work the key issues
1) low shear pressure control for wells.
2) inverter mixer feasibility Trials required to demonstrate TRL. Financial Paper drafted in preparation for Stage 1 entry in
December. Partner workshop 21st Nov.
Project Review Meeting scheduled 18 Dec. Preparing documentation required for entry to Stage 1 gate. In parallel, coordinating
ongoing effort to define and evaluate short-term operational measures and mid-term turret mods. Timely implementation of
short-term & mid-term measures ahead of potential measures may be critical to protecting production.
Project will be recycled into Stage 2 and will be led by the Stage 1 team to demonstrate viability and business needs.
$211
$15 m
Jan-14
Project handed back to Operations (Will be removed from Portfolio at next Monthly Performance Review).
Actual
$16.2
Cost Performance (Current Month - Cumulative)
Cost ($m)
Cost Performance (Year End - Cumulative)
Cost ($m)
Feb-14
Portfolio Manager Comments
Enhanced Power Upgrade
###
###
###
###
Apr-14
1,967,959,015
###
###
###
###
Dec-13
217,716,116 $
###
###
###
###
Mar-14
$
Totals
Project Listing
###
###
###
###
Nov-13
330,800,000
227,000,000
12,600,000
122,822,018
47,600,000
48,300,000
94,296,000
85,000,000
59,000,000
36,100,000
52,032,600
224,278,397
126,130,000
56,000,000
45,000,000
181,000,000
220,000,000
###
###
###
###
Feb-14
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
###
###
###
###
Oct-13
7,231,563
11,194,945
1,470,100
42,246,454
5,700,000
10,442,168
3,448,900
3,473,241
3,683,500
15,600,400
24,110,582
68,789,168
18,399,186
120,000
210,050
985,335
610,525
###
###
###
###
$218
Next 12 Months
Total Installed Cost
(TIC) of Project ($)
2013 Spend ($)
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
###
###
###
###
Jan-14
Mary Lloyd
Cary Klein
Alberto Graham
Roy Ross
Blanche Edwards
Victor Alvarez
Pete Carr
Timmy Hicks
Gerard Hamilton
Ricky Griffin
Bobby Smith
Dominic Parker
Louis Marshall
Morris Vega
Darrel Long
Matt Gardner
Ramon Vaughn
###
###
###
###
Dec-13
Project Manager
Growth
Risk Reduction
Regulatory Compliance
Growth
Growth
Risk Reduction
Regulatory Compliance
Risk Reduction
Regulatory Compliance
Regulatory Compliance
Regulatory Compliance
Growth
Risk Reduction
Growth
Growth
Growth
Risk Reduction
####
####
####
####
Sep-13
Business Driver
Stage 1
Stage 2
Stage 2
Stage 3
Stage 2
Stage 2
Stage 3
Stage 1
Stage 4
Stage 2
Stage 2
Stage 1
Stage 2
Stage 1
Stage 1
Stage 1
Stage 1
####
####
####
####
Oct-13
Current
Project Stage
Risk Table
A
B
C
12
7
15
D
11
4
8
9
3
1 2 10
5 6 13
14
16
E
F
G
H
Freq'y
1
2
3
4
5
6
Leading Indicators
Project Definition Rating Index (PDRI)
800
700
600
Score
Project Listing
####
####
####
####
Nov-13
Portfolio Dashboard (End of Sep 2013)
Mar-13
BaseLine
$25 mForecast
Actual Re-Forecast
Cumulative Base Forecast
$20Re-Forecast
m
Cumulative Base
Feb-13
CURRENT YEAR
Planned
$19.5
(Current Year)
Jan-13
$30 m
Portfolio Project Listing
Enhanced Power Upgrade
HCFC Replacement
Tiger Decommissioning
Baku Cond Lines
Timber Gas Lift
Beachfield Flare
GH Platform Removal
Marine Vapour Management
NE Decommissioning
Sun Decommissioning
Prep for wells (BD50)
BW Gas Separation
GS Fire & Gas Project
XP900 Accommodations
Quad 205 Polymer Project
DRAMP
NH500 QD Project
Cost Performance (Current Month)
Cost ($m)
Planned vs Actual / Reforecast
Cost ($m) Gross
Playbook Appendix:
Portfolio Dashboard
500
400
Leading Indicators
PDRI PDRI 1PDRI 2PDRI 2iPDRI 3
300
200
100
0
Actual
Target
Target
550
450
300 150
700700
Actual
625
330 180
PDRI 1
550
PDRI 2
625
450
PDRI 2i
330
300
PDRI 3
180
150
7
8
Playbook Appendix: Portfolio Dashboard
0
Cost Performance
Cost Performance (Current Month)
Cost ($m)
Planned vs Actual / Reforecast
CURRENT YEAR
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
BaseLine
$25 mForecast
Actual Re-Forecast
Cumulative Base Forecast
$20Re-Forecast
m
Cumulative Base
####
####
####
####
####
####
####
####
####
####
####
####
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
###
$218
$211
$15 m
Jan-13 Feb-13
Actual Base Forecast
BaseLine ForecastActual Re-Forecast
$ 14.6 m $ 14.6 m
Actual/Re-Forecast
$ 15.6 m $ 13.4 m
Cumulative Base Forecast
Cumulative
Base Forecast
$ 14.6 m $ 29.2 m
Cumulative
Base Re-Forecast
Mar-13
$ 14.6 m
$ 12.1 m
$ 43.8 m
Cumulative Actual/Re-Forecast $ 15.6 m $ 29.0 m $ 41.1 m
Schedule Performance
Apr-13
$ 15.1 m
$ 16.5 m
$ 58.9 m
$ 57.5 m
May-13
$ 15.1 m
$ 15.3 m
$ 74.0 m
$ 72.9 m
Jun-13
$ 15.1 m
$ 19.4 m
$ 89.2 m
$ 92.2 m
Sep-14
Aug-14
Jul-14
Jun-14
May-14
Apr-14
Mar-14
Feb-14
Jan-14
Dec-13
Nov-13
$10 m
$m
Variance
-16.92%
Cost Performance (Current Month - Cumulative)
Cost ($m)
Planned
$147.6
Planned
$211.4
Next 12 Months
$5 m
Actual
$16.2
Actual
$141.0
Variance
-4.47%
Cost Performance (Year End - Cumulative)
Cost ($m)
Oct-13
Cost ($m) Gross
$30 m
Planned
$19.5
(Current Year)
Jul-13
$ 19.5 m
$ 15.9 m
$ 108.6 m
$ 108.2 m
Aug-13
$ 19.5 m
$ 16.6 m
$ 128.1 m
$ 124.8 m
Sep-13
$ 19.5 m
$ 16.2 m
$ 147.6 m
$ 141.0 m
Oct-13
$ 21.3 m
$ 24.0 m
$ 168.9 m
$ 165.0 m
Nov-13
$ 21.3 m
$ 25.1 m
$ 190.1 m
$ 190.1 m
Dec-13
$ 21.3 m
$ 27.6 m
$ 211.4 m
$ 217.7 m
Forecast
$217.7
Variance
2.98%
Playbook Appendix: Portfolio Dashboard
May-14
Jun-14
Jul-14
Aug-14
1
2
2
4
2
2
2
1
2
3
4
2
3
2
2
2
3
4
2
3
2
2
2
3
4
2
3
2
2
3
3
4
2
3
2
2
3
3
4
2
3
2
2
3
3
2
3
3
2
3
3
2
3
3
3
3
3
3
4
3
4
2
2
1
1
1
1
1
1
4
2
3
1
2
1
1
1
1
2
3
1
2
1
1
1
1
2
3
1
2
2
1
1
1
2
3
2
2
2
2
1
1
2
4
2
2
2
2
1
1
2
4
2
2
2
2
1
1
2
4
2
2
2
2
1
1
2
4
2
3
2
2
1
2
2
4
2
3
2
2
1
2
2
4
2
3
3
2
2
2
Schedule
Index
Mar-14
1
2
2
4
2
2
2
Project Stage
Variation
Jan-14
Feb-14
1
2
2
4
2
2
2
Planned
No of
Months
Actual / Reforecast
No of
Dec-13
1
2
2
3
2
2
2
1
4
2
2
1
1
1
1
1
1
Apr-14
Nov-13
Enhanced Power Upgrade
HCFC Replacement
Tiger Decommissioning
Baku Cond Lines
Timber Gas Lift
Beachfield Flare
GH Platform Removal
Marine Vapour Management
NE Decommissioning
Sun Decommissioning
Prep for wells (BD50)
BW Gas Separation
GS Fire & Gas Project
XP900 Accommodations
Quad 205 Polymer Project
DRAMP
NH500 QD Project
Oct-13
Project Listing
Sep-13
Schedule Performance
Stage 1
9
11
16%
Stage 2
11
13
17%
Stage 3
7
7
10%
Front End Loading (Stage 2 & Stage 3)
19
20
8%
1.15
Stage 4
26
21
-20%
0.80
Overall Cycle Time (Stage 2 to Stage 4)
46
41
-11%
0.87
Overall Cycle Time (Stage 1 to end Stage 4)
51
54
5%
Stage 1
Legend
Stage 2
Stage 3
Stage 4
4
2
2
2
2
1
1
4
2
3
2
2
1
2
4
2
3
2
2
1
2
4
2
3
3
2
2
2
Risk Title
Risk
Status
Severity
Freq'y
Prep for wells (BD50)
BW Gas Separation
GS Fire & Gas Project
XP900 Accommodations
Quad 205 Polymer Project
DRAMP
NH500 QD Project
2
1
1
1
1
1
1
2
1
1
1
1
1
1
3
1
2
1
1
1
1
3
1
2
1
1
1
1
3
1
2
2
1
1
1
3
2
2
2
2
1
1
4
2
2
2
2
1
1
4
2
2
2
2
1
1
Project
Stage
Incident occurring during Hot Work
Collision: Vessel Operations
West crane removal: Dropped objects
PAU Collision with live plant
Loss of control over live plant
Incident occurring during Hot Work
HLV proximity to platform
Dropped module/collision - HLV lifting operations
Insecure HLV anchoring
Primary barrier against gas-lift pressure failure: Casing Bursts
Dredging: Platform stability compromised
HLV Loss of Stability: HLV Capsize
Failure of Personnel Transfer System
E-W Crane move: DroppedObjects
HLV Loss of Stability: HLV Capsize
Failure of Personnel Transfer System
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
D
D
D
D
D
D
C
D
D
D
D
C
D
D
C
D
4
4
3
3
4
4
3
3
3
4
2
2
4
4
3
4
Stage 4
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Stage 2
Overall Cycle Time (Stage 2 to Stage 4)
46
41
-11%
Overall Cycle Time (Stage 1 to end Stage 4)
51
54
5%
0.87
Playbook Appendix: Portfolio Dashboard
Legend
Stage 1
Stage 2
Stage 3
Stage 4
Potential High Consequence Risks (D+) (Held by Projects)
ID
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Project Title
Baku Cond Lines
Prep for wells (BD50)
Prep for wells (BD50)
HCFC Replacement
HCFC Replacement
HCFC Replacement
Beachfield Flare
Beachfield Flare
Beachfield Flare
Timber Gas Lift
GH Platform Removal
GH Platform Removal
GH Platform Removal
Prep for wells (BD50)
Sun Decommissioning
Sun Decommissioning
Severity
Risk Management
A
B
C
12
7 15
D
11
4 9
8 3
1 2 10
5 6 13
16 14
2
3
4
E
F
G
H
Freq'y
Leading Indicators
Risk Table
1
5
6
7
8
13
14
15
16
GH Platform Removal
Prep for wells (BD50)
Sun Decommissioning
Failure of Personnel Transfer System
E-W Crane move: DroppedObjects
HLV Loss of Stability: HLV Capsize
Failure of Personnel Transfer System
Active
Active
Active
Active
D
D
C
D
4
4
3
4
Stage 2
Stage 2
Stage 2
Stage 2
G
H
Playbook Appendix: Portfolio
Dashboard
Sun Decommissioning
Freq'y
1
2
3
4
5
6
Leading Indicators
Project Definition Rating Index (PDRI)
800
700
Score
600
500
400
Leading Indicators
PDRI PDRI 1PDRI 2PDRI 2iPDRI 3
300
200
100
0
Actual
Target
Target 550 450 300 150
PDRI 1
Actual700700
550
625 330 180
PDRI 2
625
450
PDRI 2i
330
300
PDRI 3
180
150
7
8
Playbook Appendix:
Next Steps—Data Visualization
Managing a Portfolio of Projects –
A Playbook for Success
Questions/Comments?
Portfolio
management
Playbook