Dear Planning Planet Members,
Welcome to the newsletter; did you know that this newsletter goes to the largest community of project controllers on planet Earth?
We’re excited to share that we’ve transitioned to a new, faster, and more modern web portal that’s already benefiting our users. We chose to make the switch quickly rather than spend weeks testing, so we truly appreciate your ongoing feedback in identifying the bugs or issues we need to fix.
SCHEDULE ANALYSIS METRICS: Crash Cost Per Unit Time
Crash Cost per Unit Time is a schedule compression metric to evaluate the cost efficiency of accelerating a project activity.
The metric helps planners:
- Determine which activities are most cost-effective to crash.
- Prioritise crashing activities on the critical path.
- Optimise project duration vs. cost trade-offs.
- Reduce project duration with minimum extra cost.
Learn more about the Crash Cost per Unit Time metric...
Source: Alexander Lyaschenko
COST ENGINEERING - THE ROLE OF STAKEHOLDER COMMUNICATION IN MANAGING PROJECT BUDGETS | BLOG ARTICLE
Many budget overruns come from poor communication, not bad data.
When stakeholders receive the right information, at the right time, and at the right level of detail, projects move faster and decisions get smarter. Teams that align early, share transparent cost data, and engage stakeholders continuously are far better positioned to prevent surprises and keep budgets under control.
Want to dive deeper?
Explore Cleopatra Enterprise’s blog for insights on how effective stakeholder communication can help manage project budgets: read more...
MINIMISING DELAYS IN CONSTRUCTION PROJECTS
Minimizing delays in construction projects necessitates a comprehensive strategy focused on transparent communication, proficient leadership, competent workers, and advanced tools.
Regular progress meetings, minimized bureaucracy, strong sponsor involvement, and thorough planning are effective tactics that markedly improve project delivery performance.
When project teams proactively implement these principles, they enhance their capacity to deliver projects punctually, within financial constraints, and at the anticipated quality level.
Read more...
Source: Mohammad Talafha
CONTRUENT: PROJECT COST MANAGEMENT PRACTICES AND PROCESSES
What is Cost Management in Project Management?
Cost management is the process of managing capital construction project costs through planning, estimating and controlling a project’s budget. While project cost management begins before a project starts, it continues on throughout the entire project lifecycle to completion. Upon completion, the data provides a view of the project’s planned predicted costs versus its actual costs, which can be used for benchmarking future projects and portfolios.
Project cost control is a critical part of project management and project controls, as major construction projects are on average delivered one year behind schedule and 30% over budget, according to McKinsey & Company.
Effective cost management throughout a project significantly helps project organizations and enterprises avoid cost overruns. According to PMBoK, the project cost management process includes:
- Forming a cost management plan, including resource planning
- Estimating project costs
- Determining the project budget
- Controlling project costs
The first three processes of project cost management occur prior to the project during planning, while the last process occurs throughout the project’s execution.
Read more...
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THE ROLE OF STAKEHOLDER COMMUNICATION IN MANAGING PROJECT BUDGETS| BLOG ARTICLE
Are project surprises slowing you down? In large capital projects, delays and cost overruns often appear when the damage is already done.
Cleopatra Enterprise’s blog covers how real-time project monitoring gives teams the live insights they need to stay in control. Learn what it is, why it’s essential, and which tools and best practices can help you move from reactive reporting to proactive decision-making.
See how integrated systems, automated KPIs, and intuitive dashboards can transform the way you manage project performance. Read the full blog...
IAMTECH KNOWLEDGE
IAMTech Knowledge: In our latest article, James Holt IAMTech’s Commercial Director, explores how to close the scope, planning, safety, and execution gaps that derail shutdown, turnaround & outage (STO) events — and how AI-assisted turnaround management software is helping teams build plans that deliver in the real world.
To read the full article, click here.
IPLAN News
IAMTech News: UPM Biochemicals Expands Use of IAMTech Technology at Leuna Facility - Click here to read the full news article.
PLANNERS NIGHTMARE - NO PROGRESS THIS MONTH ON CRITICAL WORK
Fed up with adverts from software companies and consultancies that are going to change the world of Planning and solve all your project problems?
This series of occasional articles promises nothing but thought provoking questions on how well we understand the basics of our profession from the perspective of a retired planner with 50 years’ experience in the industry whose worked in a variety of UK EPC roles for Clients and Contractors with no axe to grind.
We are going to look at PEOPLE, PROCESSES, and PROCEDURES (the old 3P’s – not 4P’s, 5P’s, 6P’s or 7 P’s) that we all have been educated and trained to use in our everyday work (5W’s + 1H) and POKE THEM IN THE EYE / LOOK UNDER THE STONE (the Inverse Universe) and get into trouble with the planning profession because for loads of reasons were not doing so well. If you want to contribute to this soul searching drop me a line with either POSITIVE or NEGATIVE comments (yes, we are PLANNERS that can hold both views at the same time!).
So here goes for No 1
SUMMARY – Planners nightmare – No progress this month on critical work!
So, you’ve gone through the schedule updates from the Design Discipline Leads, Work Package Managers, Procurement Manager and Construction Manager, done the walk round, talked to the team on the front line and know the critical work. You go and talk to the main players to understand their problems and to develop some actions before the round of formal reports and progress meetings start. You give the Project Manager a heads up that this month’s progress numbers will be bad.
Here is the here the "excuses file", or put another way, a few examples of how the discipline can be working hard but can achieve no programme progress
Tender and Contract Negotiations
- Contract Price included all those vague promises made by Directors / Work Winning / Sales & Marketing – e.g. liaise with other contracts, provision for future expansion, RUI will be OK, join in overall management of site complex, no problem with tender documents not seen, no problem with tender variation notices not received, contract conditions discussion will be finalised etc
- Reduction in selling price (manhours, selling rates, WPM budgets, contingency, risk) by Board not filtered back to PD/PM/WPM
Doing Unprogrammed Work
- Working on unapproved changes, providing estimates for new potential changes, reworking changes that now have out of date estimates because things have changed before they are authorised
Doing Approved Changes
- Approved so late that caveats and budgets no longer apply, additional budget not received, information not received yet
Problems with last month’s update
- Not quite finished, issued to meet milestone payment with holds and revision needed, further RFI/TQ’s received from site, documents not issued formally
Out-of-sequence working
- Keep people working (waiting for vendor information) by starting some activities early so we might prevent a problem arising
- Rework after new information provided
Activities not started
- Information not received despite promises, vendor information incomplete, no comments received yet after design review meeting
Business Process changes
- All disciplines have to now sign off all vendor data received at review stationAll disciplines have to attend P&ID / HAZOP meeting
- Introduction of new document system
- Reduction in budgets being negotiated with PD/PM
- That new 35-hour week is causing problems
New meetings added (over and above budget so reduce productive hours)
- Early bird meetings each day
- Mental Health awareness day
- Stand Down H&S meeting
- Design Authority preparation & meeting
- Town Hall meeting
- Attend P&ID / HAZOP Meeting
- Even more review meetings (external & internal)
- Additional Constructability meetings with Client
- Asked to do new IT Software assessment
- Site Complex liaison meeting
- Meet with Unions on site
- Additional Vendor meetings
Resource Changes
- End of holiday year
- New training / CPD calendar issued showing additional requirements
- Those additional young graduates need more supervision
- Jack and Bill both retired and were still waiting for HR to appoint new leads
Procurement
- Awaiting tech specs
- Bids still awaiting client approval
- Field I&E contract and HO telephone expediting still not approved
- T&C’s not approved by client
- Client exercising contract right to approve more vendors and choose 2nd on list, so have to go around the circle again
- Lost manufacturing slot because of late order placement
- Vendor data not returned in time
- Vendor HAZOP meeting cancelled – chairman not available
- Having to babysit Clients Technical Staff at Vendor’s Factors
- Have to attend all FAT’s
Sub-Contracts
- Need to re-bid, price too high
- Client will not approve recommendation without further work
- Let contract taking long time to mobilise
- Subcontractor gone into administration – need to re-bid
- Allocated resources now gone elsewhere so starting later than promised
Construction
- Rework
- Correct defects
- Awaiting subcontract start
- No access from client
- No permit from authorising body
- PLC’s still awaited
- Safety stand down day
- Town Hall meeting
- Site closed for ½ day due to gas alarms from Client Ops Building
- Bad weather / high winds
- VIP visit
Question to you all – What are the common excuses for lack of progress on critical work from your team and what actions did (they) you propose?
Source: Peter Holroyd
SUPERIOR ALTERNATIVE TO THE "MOST POPULAR" SOFTWARE FOR US AS PLANNERS?
A superior alternative to the "most popular" software for us as planners?
Spider Project
Spider Project Team is a group of project management consulting and training companies. With headquarters in Moscow, Russia, we have branches, partners and representatives in other Russian cities, Australia, Brazil, Colombia, Kazakhstan, Romania, USA.
We develop professional PM software Spider Project that is the most powerful and functional tool for project, program, and portfolio management.
We develop advanced approaches and methods of project management that are widely used by our customers in 37 countries. We provide training on project management and Spider Project software for our customers around the world.
We manage projects for our customers and implement corporate project management systems in companies of different industries. We believe that good project management can improve our world and are happy to provide the best services and tools to our customers.
We are proud of our achievements.
The current version is used in 37 countries. Spider Project offers numerous unique functional features and is the only PM software that optimizes resource, cost, and material constrained schedules and budgets for projects and portfolios.
Spider Project offers numerous unique functional features and is the only PM software that optimizes resource, cost, and material constrained schedules and budgets for projects and portfolios.
Check it out here... Ask questions here...
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THANK YOU FOR READING OUR MESSAGES
If you’d like to lend a hand to the small but enthusiastic team behind this newsletter, feel free to reach out to us at [email protected]. We know there’s still a lot of work ahead to make this an informative and eagerly anticipated bi-weekly read, so get in touch and be part of the journey.
Regards...
The Planning Planet Team