D1: How to Create a World Class Project Management Organization
Thursday, July 2, 2020 (1 FULL DAY)
Instructor: Dr. Nick Lavingia, PE
Nick has over 40 years of global project engineering, management, consulting and training experience in the industry. As a project manager and project management consultant/advisor at Chevron, he supported projects worth well over $ 100 billion globally. Since retiring from Chevron, he continues to provide consultation and training to executives and project professionals worldwide.
Nick has a B.S. and M.S. in chemical & petroleum-refining engineering and a Ph.D. in
mineral economics from the Colorado School of Mines. He is a registered professional chemical engineer in the state of California.
As a contributing author on profitability analysis for the Engineer’s Cost Handbook, Nick has published and presented many papers at technical organizations. He is a recipient of industry award from Pathfinder for outstanding contribution to the advancement of project management technology and Chevron chairman’s award for implementing value engineering throughout the corporation.
This practical seminar is based on how a company created world class project management organization that delivered pacesetter project performance. Industry benchmarking showed that their projects were safer, better, faster and cost less compared to the competition. The formula for success included:
1. Understanding project management's impact on the bottom line of the company by improving return on capital employed and ultimately total shareholder return.
2. Implementing structured project development and execution process which enabled effective communication between decision makers, multi-functional project team and stakeholders.
3. Demanding use of project management best practices to optimize safety, cost, schedule and operability of projects.
4. Insisting on the use of total cost management tools for estimating, planning/scheduling, project controls, etc. to deliver projects on time and within budget.
5. Providing project management training and certification for executives, management and project professionals.
Key Learning Objectives
Upon completion of this practical seminar, participants will gain an understanding of:
• Project management's impact on the bottom line of the company.
• Project development & execution process which enables effective communication between decision makers, multifunctional project team and stakeholders.
• Project management best practices that optimize safety, cost, schedule and operability of any project.
• Total cost management tools to estimate, plan, schedule, monitor and identify problem areas and take corrective action for enhancing project performance.
• Training and certification of executives, managers and project professionals to achieve world class performance.
I. Project Management’s Impact on the Bottom Line
• Improve Return on Capital Employed (ROCE) and Total Shareholder Return (TSR)
II. Project Development & Execution Process
• IDENTIFY & Assess Business Opportunity
• SELECT from Alternatives
• DEVELOP Preferred Alternative for Full Funding
• EXECUTE--Detail Design, Procurement & Construction
• OPERATE & Evaluate
III. Project Management Best Practices
1. Decision & Risk Analysis (D&RA)
• Decision Hierarchy
• Strategy Table
• Influence Diagram
• Tornado Diagram
• Decision Tree
2. Project Execution Planning (PEP)
• Defining the Vision of Success (Business Goals, Project Objectives & Drivers and Scope of Work)
• Defining the Strategy for Success (Management Level Plan, Risk Management Plan, Organization Plan, Contracting Plan, Best Practices Implementation Plan and Team Performance Management Plan)
• Defining the Tools for Success (Time Management Plan, Cost Management Plan, Quality Management Plan, Safety & Environmental Management Plan, Materials Management Plan and Communications Management Plan)
3. Construction Industry Institute (CII) Best Practices
• Zero Accidents Techniques
• Change Management
• Lessons Learned
• Materials Management
• Team Building
4. Project Reviews
• Peer Review
• Pre-Funding Assessment
• Post Project Assessment
• Business Evaluation
IV. Total Cost Management
1. Economic Analysis
• Net Present Value (NPV)
• Rate of Return (ROR)
2. Cost Estimating
• Estimate Types & Methods
• Allowance, Contingency & Accuracy
• Work Breakdown Structure (WBS)
3. Planning & Scheduling
• Plan Versus Schedule
• Critical Path Schedule
• Resource Planning
5. Contracting & Procurement
• Lump Sum Contracts
• Reimbursable Contracts
• Incentive Contracts
• Partnering / Alliances
6. Performance Measurement
• Earned Value Concept
7. Cost Control & Forecasting
8. Progress Reporting
$750 member / $900 non-member
NOTE: Fee includes a hot breakfast, lunch, and morning and afternoon refreshment break. Late (after May 21) and onsite registrations are assessed a $100 penalty. Seminar is subject to cancellation and full refund if minimum enrollment is not met by the early registration deadline.