Young Professionals Committee
(YPC)
Texas State University
Ingram School of Engineering
April 18th, 2012
Safety Moment – Sun Exposure
• Topic
– With Spring just around the
corner, everyone’s anxious to get
outside and enjoy the weather!
– Employers and workers need to
remember that field workers are
at a high risk of sun exposure
• Issue
– Overexposure can cause skin
damage and cancer. Other side
effects include:
• Heat stroke, exhaustion, cramps, and
rashes
• Increased risk of injury as a result of
sweaty palms, fogged up safety
glasses, dehydration, etc.
Safety Moment
• Precautions/Preventions
– Wear a hat to shade your head
from the sun
• Should protect neck, face, and ears
– Wear a light-colored, long sleeve,
breathable clothing
• Avoid synthetics
– Carry water with you at all times
and drink at least every 15 minutes
• Avoid alcohol, caffeine, and sugar
– Take frequent breaks in shady/cool
environment
– Adjust gradually to working in
hotter environment
– Schedule most arduous work to
cool parts of the day
– Wear sunscreen!
Agenda
•
•
•
•
•
•
Speaker Introductions
Introduction to AACE & YPC
Project Controls Career Paths
Industrial Engineering & Project Controls
Scheduling Fundamentals and Applications
Conclusion
SPEAKER INTRODUCTIONS
Speaker Introductions
• Josh Rowan
– 8 Years Project Management / Controls Experience
• Commercial Risk Management
• Capital Cost Estimating & Control
• CPM Scheduling
– Prior Work Experience
• PricewaterhouseCoopers
• Chicago Bridge & Iron
• SNC-Lavalin Engineers & Constructors
Speaker Introductions
• Josh Rowan (cont.)
– BS in Agricultural Development, Economics from
Texas A&M University (May 2002)
– MBA in Finance (est completion December 2012)
– US Army Officer (2004-2008)
Speaker Introductions
• Tanner Courrier
– 4 Years Forensic Claims Experience
• Consulting in Complex Litigations
• Construction and Government Contracts
• Settlement Negotiations and Presentations
– AACE
• Speaking in various industry forums
• University Outreach
• Event Planning
Speaker Introductions
• Tanner Courrier (cont.)
– BS In Construction Management
– MBA In Process at UT Dallas
– NAHB Student Competition Team
– Certified Cost Technician, Certified Fraud Examiner,
LEED Green Associate
INTRODUCTION TO AACE & YPC
Overview of AACE
• 7000 Members Around The World
– 84 Countries
• Top Contractors And Owners
– Bechtel, Flour, KBR, Jacobs, CB&I, Exxon, BP, Chevron,
Duke Energy, NRG Energy
• Cooperative Agreements
– American Society Of Civil Engineers
• Multiple Industries
– Oil And Gas, Utilities, Civil Construction, Defense
Contracting
Benefits of Membership
• Discounted Membership For Students
• Cost Engineering Journal (Digital Copy)
• Education and technical skills at
Seminars and Annual Meeting
• Preparation for Certification
Benefits of Membership
• Scholarship Program For College / University
Students - More Than $40,000 Awarded Annually
• Virtual Library – Wealth Of Research Literatures
• Mentoring Program
• Networking And Contacts – Expand Your
Opportunities With Expansive AACE Members
And Network
• Where to Sign Up
http://www.aacei.org/mbr/student.shtml
Average Salary 1-5 yrs. Experience
$70,000.00
$60,000.00
$50,000.00
$40,000.00
$30,000.00
$20,000.00
$10,000.00
$-
2009 Base Salary
2010 Base Salary
2010 Average Industry Base Salary
$140,000.00
$120,000.00
$100,000.00
$80,000.00
$60,000.00
$40,000.00
AACE Certified
$20,000.00
Not AACE Certified
$-
AACE International Certification
• Entry-Level / Junior Certification
– CCT (Certified Cost Technician)
– Requirement: 4 Years Of Experience OR 4 Years Of
College-Level Academic.
• Professional Level Certification
– CCE/CCC (Certified Cost Engineer / Consultant)
– CEP (Certified Estimating Professional)
– CFCC (Certified Forensic Claims Consultant)
– EVP (Earned Value Professional)
– PSP (Planning & Scheduling Professional)
Certifications Explained
Certified Cost Consultant (CCC)
/ Certified Cost Engineer (CCE)
E
V
P
P
S
P
C
E
P
C
F
C
C
AACE Certification
• http://www.aacei.org/educ/cert/CCT/
What is the YPC
• The Young Professionals Committee Is A Group
Within AACE That Interfaces With The Board of
Directors To Create Value And Offerings For
Young Professionals
• YPC Gives You A Vehicle To Become A Leader In
AACE And In Your Career
YPC Value Proposition
• Why YPC?
– Growth In Capital Projects
– Aging Workforce
– Training
– Networking
– Development Opportunities
YPC Events
• Annual Meeting Networking Event
– 2012 Annual Meeting in San Antonio
– July 8-11, Marriott Rivercenter Hotel
– 8 day passes for Texas State
•
•
•
•
•
•
Website And LinkedIn Subgroup
Cost Engineering Profile Articles
Leadership Conferences
University Outreach
Mentoring Program
Impromptu Dinners and Social Events
PROJECT CONTROLS CAREER PATHS
Project Controls 101
• Project Controls Is That Element Of A Project That
Keeps It On-Track, On-Time And Within Budget
• Cost, Risk, Quality, Communication, Time, Change,
Procurement, And Human Resources
• Project Controls Can Be Responsible For Projects,
Programs, Or Portfolios That Contribute To The
Company’s Bottom-Line
Useful Analogy
Cost
Estimating
Risk
Direction
Schedule
Change
Career Paths
•
•
•
•
•
•
Cost Engineer
Cost Estimator
Planner Scheduler
Claims Analyst
Project Risk Analyst
Project Controls Manager
INDUSTRIAL ENGINEERING AND
PROJECT CONTROLS
Why Projects Fail
• Projects fail for any number of reasons, including
but not limited to:
– Ambiguous business case
– Lack of upfront planning
– Inadequate or untrained resources
– Failure to properly integrate deliverables or data
– Unrealistic schedules or estimates
– Poor communication
– Inability to meet contractual requirements
Industrial Engineering & PC
• Industrial Engineering (IE) can address the root
causes of project failure
• IE involves the study of how to manage/deploy
people, materials, equipment, etc. to most
effectively/efficiently produce a product or
deliver a service
– How to coordinate equipment, materials, people to
achieve project objectives (i.e. project controls)
Industrial Engineering & PC
• Critical Path Method (CPM) Scheduling
– Pre-requisite is up-front planning to identify work
activities and sequencing
– Must understand which activities are critical and
how much float is available for each
– Process improvement leads to lean project delivery
• Linear Scheduling
– A scheduling methodology that can be applied to
repetitive work:
• pipe laying, tunneling, road construction, high rise building
construction
Industrial Engineering & PC
• Cost Management and Earned Value
– Initially estimates inform project management on
number of resources required
– Forecasts and trending can highlight when additional
resources may need to be applied
– Cost variances can be identified and addressed
• Risk Analysis and Simulation
– IE routinely creates models of how large processes
should work and performs simulations
– Project business cases and contractual requirements
should undergo sensitivity analysis
SCHEDULING FUNDAMENTALS AND
APPLICATIONS
Scheduling Fundamentals
• Schedule Planning and Development: Process
for planning the work over time in consideration
of costs, time, resources, and risks.
– Planning
• Define roles and responsibilities
• Planning of time, costs, resources, tools, and methods
required for performance of each phase.
– Identify Activities
• Translate work package scope into identifiable,
manageable activities
Scheduling Fundamentals
– Develop Activity Logic
• Identify dependencies/relationships between activities
– Estimate Durations
• Determine start and finish dates of activities, and resource
quantity, availability, and performance
– Establish Schedule Requirements
• Establish project/contract time limitations, date
constraints, and other “milestones”
– Allocate Resources
• “Load” resources within resource consumption limitations
– Optimize, Review, Validate, Document,
Communicate, Submit, and Maintain
Scheduling Fundamentals
• Source: AACE Total Cost Management Framework
Scheduling Application #1
• Forensic Schedule Analysis
• The Investigation Of The Durations And Causes
Of Project Delays
Why Schedule Analysis?
• Time Is Money
• Recovery Of Delay Damages Is Dependent On
Proof Of Delay
Delay-Related Damages
Contractor
• Extended Field Overhead
• Extended Home Office
Overhead
• Price Escalation
• Extended Financing Costs
• Acceleration Costs
Owner
• Lost Profit/Rent
• Extended Financing Costs
• Extended Management
Costs
• Liquidated Damages
Typical Work Flow
Quantify Actual Project Delays
Identify Actions, Inactions, Or Events
Which Caused Delays
Determine Liability
Identify Impact On Costs/Damages
Quantify Actual Project Delays
As-Planned Duration = 13 Days
Plumbing
Start
Finish
5 Days
Rough In Walls
Drywall
4 Days
4 Days
Electrical
3 Days
Quantify Actual Project Delays
Critical Path: Path With the Longest Duration
Of All Paths Through the Project
Plumbing
Start
Finish
5 Days
Rough In Walls
Drywall
4 Days
4 Days
Electrical
3 Days
Float
2 Days
Quantify Actual Project Delays
Start
Plumbing
2 Day
Delay
Finish
5 Days
Drywall
Rough In Walls
4 Days
4 Days
Electrical
3 Days
Float
3 Days
Planned Duration : 13 days
Actual Duration:
15 days
Delay:
2 days
Identify Causes Of Delay
• Contractor Caused Delay: Located an email from
the Plumbing Foreman to the Project Manager
“Gary, we don’t have the right size pipe for this last
run. The purchasing department ordered PVC and
we need copper. We are stuck until the correct pipe
gets delivered. Please get this ordered right away.”
Identify Causes Of Delay
• Owner Caused Delay: Located an RFI from the
Contractor to the Owner
“There is a conflict in the west wall between
Column Lines 3 and 4. We cannot fit our piping in
the open space due to an HVAC plenum that has
been previously installed. Please send a revised
detail for this section.”
Determine Liability
• We located a receiving report that showed that
the correct pipe showed up on site that same
afternoon.
• We located a Field Change Directive from the
Owner to the Contractor providing clarification
on the drawing conflict. It was issued two days
after the RFI and the contract stipulates a one
day turnaround on RFIs.
Calculate Damages
• What will be the most likely classification for the
damages incurred by our contractor?
Delay-Related Damages
Contractor
• Extended Field Overhead
• Extended Home Office
Overhead
• Price Escalation
• Extended Financing Costs
• Acceleration Costs
Owner
• Lost Profit/Rent
• Extended Financing Costs
• Extended Management
Costs
• Liquidated Damages
Calculate Damages
• Extended Field Overhead
Overhead Component
Daily Rate
Crane Rental
$200.00
Portable Toilets
$50.00
Cell Phones
$10.00
Supervision
$450.00
Total $710.00
Damages Calculation:
2 Days x $710 = $1,420
Azure Slides
• Placeholder for actual claims example if time
permits
Scheduling Application #2
• Using an integrated portfolio schedule to
monitor and improve cycle time
• “As-Was” State
– Consisted of a number of separate planning tools
which were not integrated
– No overall integrated schedule, so changes (e.g.
permitting delay) not automatically cascaded to
remaining elements
– Resourcing (crews, rigs, materials) done thorough
separate planning (Excel) tools
– Logistics planning not optimized due to everchanging well development
Scheduling Application #2
Scheduling Application #2
• Project controls meet with stakeholders to
identify /document key activities and milestones
– 7 categories: subsurface, land, HES, regulatory,
procurement, construction, well closeout
• Interdependencies identified and a one well
schedule template was created; Portfolio
schedule constructed around rig concept
• Specialized codes allow for tracking of key
components by group
– Procurement vendor, county name, land man, etc
Scheduling Application #2
• Value Achieved
– Complex interdependencies modeled to find
optimum development and spending pace that
maintains lease acreage holding while efficiently
allocating capital and field resources
– KPIs and metrics leveraged for improved operational
and financial planning
– KPI and metric reporting at all levels of the value
chain
– Thoroughly documented process flow
– Evaluation of “what-if” scenarios
CONCLUSION
Conclusion
• “A bad system will defeat a good person every
time.”
– W. Edwards Deming
• IIE Student Organization
– April 18th, 5-6pm
– Topics Discussed:
• Resume Writing
• On-Line Presence
• Internships/Jobs
• Interviewing Techniques