A2-1-1 SELECT TYPE OF DOCUMENT

The overall standard COMPANY document type list (per discipline) must contain document types. The Lead Engineer then picks the document types from this list or adds document types, all which are relevant for doing the project.

A2-1-2 MAKE LIST PROJECT SPECIFIC

Based on the list of relevant document types, a document control index is built up for this specific project.

1. In this stage it is identified how many documents of each document type will be needed.
2. Document numbers are assigned to the identified documents according to the project specific numbering logic. Automatic document numbering is not totally possible. Depending on the numbering logic (related to the document class/type), values of some attributes have to be entered, or are already related to this specific document (project number, originating office code). The basis of the document number can be generated automatically in this way. The sequence number should be entered manually, but should be checked whether it is in the correct range of sequence numbers. Also the document identification letter should be entered manually. The total number should be checked whether it has already been used before. Document sheet numbers should also be entered manually. It must be possible to change (swap) sheetnumbers, while documents are still blank (in the first phase of defining the document control index).
3. Specific titles are assigned to the identified documents. For some disciplines (e.g. N09), it is possible to define most titles already in advance. Picklists to be used? Other disciplines (N06) will specify the contents in the document title, therefore it is not possible to define titles in advance (maybe parts of it?), e.g. ‘foundation for ‘ 

A2-2 DOCUMENT CREATION/UPDATE & RELEASE DOCUMENT

Checking a document:
often a document is only checked after the document has already been released. When comments are incorporated after this check, the internal revision number of the document should be increased.

The checking procedure should be defined as a loop in the update/create document lifecycle.

A2-2-5 CONFIRM DOCUMENT MILESTONE STATUS

Physical progress (%) must be entered at document level. It is related to the milestone status of the document, but it must be possible to manually enter a new or other progress percentage any time in between these milestone statuses. The logic for defining the % progress of a document, rolling the value up from several progress values of related document (sheets), must be defined. It must be possible to decrease a percentage complete, and change the milestone status to a former one.

E.g. for an AutoCAD document, the progress is based on the work done on the AutoCAD drawing itself, but also on the progress of the related design and engineering work. The progress of several AutoCAD documents is then rolled up to the activity progress in PACS.

A2-2-3 CONFIRM DOCUMENT ISSUE STATUS

Related to the official issue ’status’ of a document (FA, AFD, AFC etc.) there are some (predefined) substatuses, used within disciplines (e.g. N07 For Screening).

Apart from that, there can be a ‘free’ description of the issued document revision (e.g. ‘revised as noted’).

Solution: Separate (sub)status and free description (different fields). Print free description field on drawing title/revision box (if there is no free description, print (sub)status description information on drawing title/revision box).

(there is still another description: Transmittal description)

A2-2-4 RELEASE DOCUMENT

On the screen a choice must be presented:
1. Internal Review
2. External Review
3. For immediate use (internal or external)

from which the user can choose.

A2-3-1 PREPARE DRR

Internal review:

The user (Lead Engineer) should be able to see the standard distribution for this document on the screen, which he can adapt to his wishes (skip or add persons). The total handling of the DRR, and the related copies happens under the responsibility of the Lead Engineer (preparation DRR, printing copies and routing the DRR).

A2-6-1 PREPARE TRANSMITTAL

External review/issue:

Before a document can be issued externally, the document must be signed off internally (within the discipline), and by project engineering (project management).

The lead Engineer prepares the transmittal, but the further handling (including the signoff of the transmittal) and actual sending is done by Project Management (together with Document Control).

The signoff of the document is part of the ‘confirm issue status’ process (A2-2-3).

Internal issue:

Lead engineer adapts standard distribution, and handles further action on transmittal (currently the internal transmittal is pre-printed with all names and functions in the project organization, and the lead Engineer indicates manually to whom the transmittal must be sent.

A2-6-2 PRINT COPIES

Documents for immediate use (external or internal).

Filling in the print request:

This could be done by a document controller, instead of by the Lead Engineer.

This is not obvious, because transmittal packages are built up during the cause of several weeks. The printroom capacity is not big enough, to handle these large packages at once. It is questionable whether a document controller could oversee everything, when he must control all packages from all Lead engineers together. It strongly depends on the profile and capacity of such a document controller. It is suggested that such a person will work under the responsibility of a project engineer.

In one print request parts of different transmittals could be combined.

A2-3-2 ROUTE DOCUMENTS INTERNAL

The DRR is routed electronically, for all documents. The related documents are distributed physically, with a hardcopy of the DRR attached to it.

The DRR is signed off electronically, as well as physically on the hardcopy DRR.

A2-4-1 EXTERNAL REVIEW

The acknowledgement of the receipt of the transmittal (sent by the external party) will be handled (registered) by a central document control unit.

Also the externally reviewed documents with comments, coming back from an external party, will be registered by this central document control unit. It must also be registered with which transmittal (number) the external party has sent this document.

A2-5 FILING AND RETRIEVAL

Filing of reviewed, remarked documents should in fact be done according to the filing index of the document itself. Remarked documents should be filed together with the original document.

How should such a document be registered??
It is an attachment to the original document, it is only the comments and therefore should be registered as a separate document, attached to the original document revision.

A2-5-1 CHECK IN DOCUMENT

There is no need for a discipline vault over several projects.

Question users:
Is it possible to, when a document has been filed ‘in progress’ by a person, to indicate on which document this person was working, when the user starts up the system again??

Three different filing related mechanisms were identified:
1. saving a document
2. formal filing of a document (after a release)
3. put a document in a Metaphase-vault

Ad 1: a document is normally saved many times during creating/updating: ‘in progress’ filing is in fact not filing, but saving a document with the status ‘in progress’.

Ad 2: filing of a document (in the project ‘file’) is only done after each release of a document.

Ad 3: a document is intentionally put into a vault, in order for some people to take the document out to use, but not to put another revision of a document back in. Putting back in the document is only allowed by person who took it out.

Documents are created in the personal workspace of a user. At the end of the day, the document will stay in this workspace, unless the user will put the document on purpose in a (discipline) vault from which other disciplines may only VIEW the document in progress, and the discipline members may take the document for checking or approval purposes.

When a document is released, it is actually filed in the project vault, and it is accessible for other disciplines to use. In this vault only the latest revision of the document is available.

. strategic business planning (profit planning)
. tactical business planning & control
. business norm setting

- acquisitioning

. marketing
. contracting
. project financing
. client management

- project management

. project setting
.. project organization
.. project execution quality assurance

. operational project control

.. deliverable control
.. scope control
.. activity & progress control
.. cost control
.. risk control
.. resource control
.. cashflow control

. integral project management

.. project steering
.. external communication
.. performance & forecasting analysis
.. change control

- project logistics

. purchasing
. expediting
. inspection
. home office sub-contracting

- design & engineering

. process design
. process engineering
. plant design
. material cataloguing

- constructing

. field installation
. sub-contract supervision
. site work order management
. material control
. commissioning & startup

- supporting

. finance
.. general accounting
.. creditor & debtor control
.. payroll
.. cash management
.. project accounting

. human resource management

.. personnel administration
.. organization assessment
.. human resources assessment

. office services & facilities management

.. supplies administration
.. reproduction
.. post office
.. security
.. office space management

. information & automation services

.. general information management
.. hardware & software services
.. communications
.. design & development
.. library & archiving

- quality management
- project management

. operational project control
.. deliverable control
.. scope control
.. activity & progress control
.. cost control
.. risk control
.. resource control
.. cashflow control

. integral project management

.. project steering
.. external communication
.. performance & forecasting analysis
.. change control

- project logistics

. work planning & issuing
. purchasing
. expediting
. inspection
. home office sub-contracting

- design & engineering

. process design
. process engineering
. plant design
. material cataloguing

- constructing

. field installation
. sub-contract supervision
. site work order management
. material control
. commissioning & startup

- support

. finance
.. general accounting
.. creditor & debtor control
.. payroll
.. cash management
.. project accounting

- quality management

. quality standards
. quality monitoring

Overall areas of responsibility include :

- Advanced technology
- Commissioning
- Environmental engineering
- Heat transfer
- Library
- Process engineering
- Process control

Process Engineering areas of responsibility include :

. basic control features input
. client actions
. control optimization
. definitions of critical & non essential services (equipment)
. design criteria –> Civil group
. data control value noise –> control systems group
. drained fluid flows –> Civil group
. fire fighting water –> Civil group
. pump capacity –> Mechanical group
. review
.. construction materials
.. cost/feasibility/alternatives
.. critical vessel & lines
.. design safety
.. dish check (equipment)
.. line table
.. model check
.. p&id’s
.. process checks
.. relief
.. static electricity
.. vendor bids (technical evaluation)
… airfin coolers
… filters
… packaged equipment
… rotating equipment
… trays
… steam turbines (consumption)
. volatile organic compounds monitoring requirements

Process Engineering information supply includes :

. analyzer specifications – review
. authority requirements
. basis for design pressures & temperatures
. battery limit conditions
. capital estimate – review
. check piping layout <-- Piping Department
. client documents & standards <-- Client
. control valve capacities <-- Control Systems Group
. critical equipment list
. critical process items --> other departments
. design basis, including administration of changes and Client approval
. drawings (p&id’s, efd’s, ufd’s) – review
. equipment calculations
. evaluation of contracts, requisitions, bids <-- Vendor
. heat & material balances
. info on relocation of equipment <-- Engineering
. info on control valves <-- Engineering
. instrument data sheets - review
. instrument process data sheets --> Control Systems Group
. line tables – review
. manhour estimate & schedule
. manhour requirement vv budget
. progress measurement –>Project Management & Control
. requisitions – review
. safety standards
. vendor documents – review

Systems Engineering information supply includes :

. budget
. c1 & c2 specifications
. drainage & blowdown philosophies
. efd’s up-to-date <-- Process Eng, Instrum, Piping
. hazop
. insulation requirements
. linetable - ptp design data & pressure testing & nde testing
. linetable - reissue with efd issue
. list of efd changes
. maintenance requirements
. manhour estimate & schedule
. manhour requirement vv budget
. milestones - p&id/efd reviews
. pfd's - status <-- Process Engineering
. process data sheets <-- Process Engineering
. progress measurement <--> Planning, Cost Control, Engineering
. requisitions EPC COMPANY designed equipment
. requisitions – tech spec for vendor efd’s
. safeguarding info
. schedule – level-4 for efd’s, ufd’s, linetable, ptp’s
. tracing requirements
. vendor drawings – status of checks against engineering documents
. vendor efd’s

Systems in use are :

- EQDMS
- LLIST
- PEC
- PDS

5.2 Engineering

Overall areas of responsibility include :

- Civil/architectural/structural/underground piping/painting/insulation
- Control systems
. instrumentation
. process control
. vessel instrument orientation (to pipe design)
- Electrical
. cathodic protection
. earthing
. lighting
. telecommunications
. power
- Mechanical
. boilers
. fire fighting
. heaters
. noise abatement (from vendor supplied noise data sheets)
. package units (from structural)
. rotating equipment
. solids handling equipment
. stacks
. ventilation/airconditioning
- Pipe design
. interferences with pipe support
. isometrics
. plotplans
- Pipe engineering
. critical isometrics (to process engineering)
. pipe stress
. pipe support (pipe loads & location –> structural)
- Pipe modelling
. from equipment data sheets
. from line tables
. from plot plans
. from pipe specs
. from pipe studies
- Vessels
. heat exchangers
. reactors
. towers
. vessels
.. loading data to civil/structural
.. vessel design
.. vessel support design

Engineering information supply includes :

. analyzer layouts
. bid tabs –> Process – review
. budget vv final expected manhours
. c1 & c2 specifications – issue no, date, status
. cable list
. cathodic protection
. change orders – status
. clip information –> structural steel & pipe support
. control room layouts
. design codes, norms, rules, standards <-- PPEM
. efd symbols <-- Client or EPC COMPANY
. efd list of changes - for detail design
. electric power requirements
. electrical data sheets
. electrical area classification
. electrical tracing
. electronic/electric loop wiring
. equipment list vs process data sheets - consistency
. evaluation - technical
. flare system study <-- Process
. foundation loading information
. in-line instruments - for bids
. instrument process data sheets
. insulation/refractory information
. linetables - reissue with efd's
. load studies
. logic diagrams
. manhour estimate & actuals
. manpower curve
. mechanical equipment --> Licensor – approval
. milestones
. motor data sheets <-- other disciplines
. noise data sheets <-- other disciplines
. nozzle forces/moments/orientation --> Piping
. package units (equipment list)
. painting requirements
. pfd’s <-- Process
. p&id's <-- Process
. piping studies <-- Piping
. plotplans
. pressure & nde testing --> linetable
. pressure/temperature profile
. process data sheets – status
. progress
. pfd – status
. planning – for bids, for purchase – actual vs schedule
. pressure/temperature profile
. process data sheets <-- Process
. progress percentages & milestones --> Proj Mgmt & Ctrls, Cost Ctrl, Eng
. ptp design data
. release schedule – isos
. relief valve requirements
. requisitions –> for purchase & for bids
. tie-in points – vendor packages
. safeguarding documents
. safety equipment <-- Process
. schedule - level-IV --> PEC
. structural drawings <-- Structural
. substation layouts --> Civil
. transformer foundation –> Civil
. vendor drawings – check against engineering documents – approval
. vessel nozzle location & sizes

Systems in use are :

- CS
- HTRI
- IDS
- INTEGRAL-OMEGA
- ISOGEN
- ISOS
- L-ISO
- OMNI-PIPE
- PEC
- PDS

Civil areas of responsibility include :

. concrete structure calculations
. drainage
. fire water piping
. foundations loading (from structural)
. grout
. noise (piling)
. pipe rack sleepers
. sewer
. stores compounds
. soil
. tank settlements

Civil information supply includes :

. compressor foundations
. design specs – civil
. equipment data sheets
. equipment list
. equipment loading tables <-- Vendor
. equipment structures
. fencing
. fire-proofing requirements
. manhours spent vs planned
. material quantities
. package units
. pipe racks
. pipe specs <-- Piping
. progress percentages & milestones --> Proj Mgmt & Ctrls, Cost Ctrl, Eng
. overall foundation location plan
. requisitions
. roads
. site preparation
. soil report
. tank settlements

Systems in use are :

- PEC

Structural areas of responsibility include :

. hoisting beams
. package units
. steel structure calculations
. structural shop drawings
. welding procedures

Structural information supply includes :

. equipment list – items, components, specs, calculations, dimensions
. general design spec DS-1
. loading tables
. manhours – spent vs planned
. material quantities – trend, forecast, estimate
. milestones
. package units
. piperack frames
. pipesupport forces
. plot plans <-- Engineering
. progress
. requisitions - planning list
. schedule - for bids, for purchase
. space requirements <-- Vendors, disciplines
. steel structures
. vendor documents, list - status

Systems in use are :

- PEC

Architectural areas of responsibility include :

. control building layout versus instruments
. compressor building layout
. ergonomic requirements
. structural components
. type of buildings

Architectural information responsibility includes :

. authority requirements <-- Authorities
. building construction specs
. building bid package - status
. civil & structural data <-- Civil/Structural
. control system design data <-- Process Controls
. electrical design data <-- Electrical
. elevations
. hvac design data <-- Engineering
. instruction drawings
. manhours - forecast vs budget
. manpower curve
. materials (architectural/building) - status (approval)
. planning - subcontracts
. plot plans <-- Engineering
. progress
. schedule - level-IV
. schedule - materials, master key
. soil report <-- Civil
. vendor documents, drawings <-- Vendor

Systems in use are :

- PEC

Painting & Insulation areas of responsibility include :

. requisitions
. surfaces
. temperatures

Painting information supply includes :

. budget
. fireproofing specs
. inspection requirements
. insulation specs, incl. package units & vendor equipment
. manhours - estimate/planning/curve, final required vs assigned budget
. manpower - performance
. milestones
. paint materials
. paint system spec - ocean transport
. painting specs, incl. package units & vendor equipment
. quantification sheets - status vs purchase orders <--> Vendor
. refractory specs, incl. package units & vendor equipment
. schedule – level-IV
. scope <-- equipment & package unit vendors
. vendor list

Systems in use are :

- PEC

5.3 Procurement

Overall areas of responsibility include :

- Assistance to other departments
. local purchasing conditions
. manpower estimating
. market survey
. recommendations vendor
. write-ups proposals
- Expediting/traffic/vendor print control
. commercial control over purchase orders & subcontracts
. material status reporting
. shipping
- Inspection
. material & equipment standards
- Purchasing
. commercial evaluation/commercial bid tabs for technical evaluation by Engineering
. inquiries for equipment/materials/subcontracts
. negotiation vendor
. non-project items
. subcontracts (commercial)
. vendor list
- Subcontracting
. calibration
. interface client--project
. planning
. qualifications (inspectors, contractors)
. stamps
. survey reports

Procurement information supply includes :

. air freight & consolidation
. airport facilities - limitations
. authority requirements <-- Authorities
. budget
. cancellation charges <-- Client approval
. certificates
. change orders - status
. charter requirements
. claims - loss & damage
. client numbers
. contracts
. control budget <-- Cost Engineering
. cranage facilities - on board
. customs clearing agents
. destination port facilities
. document distribution schedule --> Client, 3rd party Inspection, Authority
. equipment list – issue & status
. equipment identification – heavy, bulk, dimensions
. expediting (internally) engineering design specs & requisitions
. forecast of bulk –> Management
. forwarders
. freight cost data
. freight charges
. freight forwarders
. inland transport – from port to site
. inspection categories
. inspection assignments & plan
. inspection reports
. insurances – shipping
. interface conditions Client <--> Legal department
. licensor packages & requirements
. list long delivery (critical) items
. loading/unloading points – inspection
. manhours – spent vs planned
. manpower requirements & planning & curve
. manufacturing data books
. marshalling yard requirements
. material status
. milestones
. obstructions – transport
. outstanding problems
. payments
. performance history – vendors
. pipeshop location
. planning – requisitions
. progress – manhours – actual vs planned
. progress – shop
. project reports – engineering, subcontractor, vendor overdue, client review
. protection – shipping
. purchase orders
. quality plan requirements
. quantity discounts
. regulations – hazard
. release notes
. requests for quotations
. requisition account codes
. requisitions – availability status
. road conditions – from port to site
. routing services – sea, road, rail, air
. safety plan requirements
. schedule – level-IV –> PEC
. shipping agents
. shipping instructions
. shop surveys
. spare parts
. storage time <-- Vendor
. subcontracts - standards, requirements, scope
. subcontractors
. suppliers - location
. tariffs
. test reports
. tonnage estimates
. tracking report - rfq, bid tab evaluation, p.o.
. transportation limits
. unit prices
. vendor documents - approval <-- Engineering
. vendor list for equipment, bulk material, sub-contracting
. vendor list - approved by Client, BBV inspection, QA Department
. vendor status - invoices (payment by Proj Accounting / Cost Eng)
. yard & warehouse cost

Systems in use are :

- PCS
- PEC
- VPC

5.4 Construction

Overall areas of responsibility include :

- Administration
- Home office engineering
. constructability
. evaluation subcontractors
.. technical
.. commercial
. lifting calculations
- Liaison monitoring
. accounting
. cost
. materials
. progress
. site engineering controls
. site purchasing
- Management
. proposal input (standards) to project management
. review invitation to bid
- Site control
. engineering
. subcontractors
- Specialists

Construction information supply includes :

. alignment tolerances - agree by Client
. bid tabs
. budget
. certificates - material, concrete, etc.
. concrete - compressive strength
. construction reports
. contracts - local services
. design queries report - status
. environmental controls (e.g. air, water, soil, noise, bio)
. expediting reports
. extra work orders
. health & welfare requirements (e.g. lighting, sanitary, etc.)
. inspection reports - e.g. blow count, field (pipe supports), etc.
. isometrics <-- Piping
. lifting calculations & studies
. load-moment tabulations
. manhours - spent vs planned, estimate, curve - incl. subcontractors
. manpower - performance, changes
. material receipt inspection - responsibilities (who)
. medical facilities
. milestones
. mobilization plan
. ndt - audits, structural steel, responsibility
. over, short & damage
. picking lists
. pickling requirements
. pipe testing system drawings - approval by Client
. precommissioning plan
. preservation
. planning - progress
. progress - field labour force, cost - actual vs planned
. qualifications - builders, engineers, welders, operators
. release notes/waivers
. repair/rejection percentage
. requisitions
. rework percentage - actual
. safety requirements, plan, induction program
. schedule - manning
. scrap disposal
. security requirements
. site surveys
. spare parts
. surplus materials
. subcontractors - cost, ,manhours
. tie-ins
. vendor documents, prints
. welders register
. winterizing - civil works, mechanical equipment, warehousing
. work permits
. XYZ accounts cost

Systems in use are :

- PEC

Site areas of responsibility include :

- Calibration
- Document control
. drawings
. instruments
. vendor prints
- Field engineering
- Field supervision
. changes
. material lists
. rework
- Non destructive testing
- Pipe safety
- Reporting
. manpower
. material certificates
. planning & scheduling/progress
- Subcontractor
. procedures
. work instructions
- Welding

Site information supply includes :

. calibration instructions
. certificates - materials
. drawings <-- EPC COMPANY
. inspection plan - subcontractor
. international codes/norms/standards
. job instructions <-- EPC COMPANY
. manhours - estimate vs final expected
. manpower
. non-conformances
. non-destructive test results/stamping
. organization chart subcontractor --> EPC COMPANY (approval)
. performance
. planning
. practices & procedures – Client/EPC COMPANY/Subcontractor
. progress – physical
. protective equipment/clothing/etc. – issuing responsibilities
. purchase order acknowledgements –> EPC COMPANY
. quality assurance manual – subcontractor
. safety plan – subcontractor <-- EPC COMPANY
. safety reports (incidents/accidents) --> EPC COMPANY
. scope of services – subcontractor
. site emergency evacuation procedure
. specifications <-- EPC COMPANY
. stress relief photos
. subcontractor schedule --> EPC COMPANY (approval)
. welder qualifications
. x-ray films –> review by Subcontractor/EPC COMPANY/Authority/Client

Systems in use are :

- PEC

5.5 Project Execution Control

For the moment, this paragraph has not yet been further detailed.

Overall areas of responsibility include :

Project Management areas of responsibility include :

Project Management information supply includes :

Systems in use are :

- PEC

Project Controls areas of responsibility include :

- Information coordination/monitoring progress & flow of work
. coordination preparation of reports (executive summaries)
. cost engineering
. estimating
. material control coordination
. planning & scheduling/progress
.. expediting reports
.. erection contracts
.. home office manhour progress
.. home office physical progress
.. home office subcontract progress
.. iso release
.. manhours
.. purchase orders
.. requisitions for bids
.. piping monitoring
. project accounting
. project administration

Project Controls information supply includes :

Systems in use are :

- PEC

Project Engineering areas of responsibility include :

- Coordination of work (overall engineering & design activities)
. design engineering
.. assist in site check-out & start-up
.. develop detail drawings for fabrication & erection
.. fabrication quality requirements
.. preparation of requisitions
.. process requirements –> detail specifications for materials & equipment
.. project specifications & standards
.. review bids for technical acceptance
.. specify tests (consult inspection)
. process engineering
.. hazop
.. process design documents & datasheets
.. operating manuals
.. process schemes based on commercial & technical evaluation
.. relief loads
.. review vendor documents
.. thermal rating
.. utility flow requirements & material balance –> ufd & line tables
. project engineering
.. battery limit interfaces
.. guide preparation of plotplan
.. mechanical catalogues/spare parts list/lubrication schedule/safety datasheets
.. prepare requisitions for equipment and services
.. subcontractor documents
.. technical reviews and vendor selection

Project Engineering information supply includes :

. budget
. checklist – mechanical completion <--> Client
. bid-tabs approvals
. document lists – all disciplines
. equipment list – consistency with process equipment data sheets
. issuing (milestones, status) – documents, drawings, data sheets, requisitions
. licensor packages
. manhours – spent vs planned
. manpower curve
. milestones
. outstanding information – list
. planning – engineering subcontracts
. plant maintenance equipment requirements
. site meteorological data
. update synchronization across disciplines
. vendor prints –> Engineering

Systems in use are :

- PEC

5.6 Material Management

Overall areas of responsibility include :

- for Engineering
. establish and maintain material take-off
. issue bill of material to site
. issue engineering requisition to Procurement

- for Procurement
. evaluate vendor bid information
. prepare requests for quotes
. tabulate vendor quotes

. issue purchase order to vendor
. expedite to insure on-time delivery of materials at the construction site
. track materials from the vendor to site and all points between
. transmit purchase order information to site
. update purchase order revisions from the site

- for Construction
. identify purchase orders for expediting
. notify Procurement of received material, including over, short & damage
. receive, inspect, warehouse and issue (allocate) materials, including quarantine
. schedule and forecast for material availability
. transmit bill of material revisions to Engineering
. transmit field purchase orders and purchase order revisions to
Procurement

Material Management information responsibility includes :

Systems in use are :

- MRN
- PEC

Material Control areas of responsibility include :

. allocating materials
. design monitoring
. electricals
. fabrication philosophy
. instruments
. long term items versus schedule
. material market conditions
. material receiving status
. pipe bulk
. pipe material take-off execution plan
. price protection duration
. purchase order release work sheet (open requisitions)
. pipe requisition philosophy
. quantity of materials & cost trending/prediction
. requisition contingency
. structural steel & civil bto
. surplus material philosophy
. transfer site information to home office
. underground piping
. valve take-offs & requisitions

Material Control information supply includes :

. budget
. dates – ros,
. expediting status <-- Expediting
. isometric availability <-- Field
. manhours - spent vs planned/assigned & forecast
. material allocation
. material descriptions
. material receipt status (including os&d) <-- Procurement, Field
. material quantity
. material trend
. picking lists (simulation)
. piping material <-- Piping
. progress
. purchase order release work sheets
. purchase order status <-- Procurement, Expediting
. requisitions
. weight reports <-- Field

Systems in use are :

- FM
- PE
- PEC
- PMD
- PMS
(insulation & painting)
(piping subcontract cost calculation)
(simulation capability)
(trend reporting)

5.7 Finance

For the moment, this paragraph has not yet been further detailed.

Overall areas of responsibility include :

Project Accounting areas of responsibility include :

. acceptance of vendor furnished documents
. amount of penalty --> vendor /request credit note
. backcharge vendors
. commitment/expenditure
. expedite status of disapproved invoices
. invoicing
. intercompany charge numbers
.. scope of work
.. requesting office
.. manhour estimates
. payments
. transmittal advices

Project Accounting information supply includes :

Systems in use are :

- PEC

General Accounting areas of responsibility include :

General accounting information supply includes :

. advances
. approval expense reports
. approvals from construction management
. backcharges vendor
. bank reports
. banks
. capitalization reports
. charge numbers
. charges to vendor for XYZ overhead cost accounting
. contract numbers (used for document id’s, e.g. requisitions, drawings, executive summaries)
. cost from proposals
. credit & payment invoices
. credit field purchase orders
. currencies & exchange
. expenditures (reimbursable & non-reimbursable)
.. back charges – field ordered materials
.. back charges – home office ordered materials
.. back charges – XYZ project costs
.. cost on behalf of affiliates
.. cost other jobs
.. field ordered materials
.. home office ordered materials
.. payroll expenses
.. personal accounts
.. salary advances
.. sold scrap materials
.. sold surplus materials
.. XYZ project costs
. field requisitions & purchase orders
. forecasts of funds
. guarantees
. income tax (personnel & corporation)
. liquidation damages
. labour cost to sales
. logistics – inventory <-- Office Manager
. material receival notice <-- Site
. over, short & damage <-- Site
. overhead budgets
. overhead charge numbers
. payments
. petty cash
. proposal numbering
. purchase orders - freight/import duties/customs clearance
. purchase requests <-- disciplines
. requesting funds
. subcontract invoices
. travel expenses
. time registration
. travel expenses

Systems in use are :

- JD-EDWARDS

Estimating areas of responsibility include :

Estimating information supply includes :

. bid coverage
. cash flow (expenditure versus income)
. check lists
. currencies
. escalation calculation
. financing costs
. home office engineering manhours procedure & responsibility
. kick-off meeting results
. qualification
. quantification (surplus)
. risk analysis (accuracy)
. scope definition
. security aspects

Systems in use are :

- PEC

Cost Engineering areas of responsibility include :

. blanket purchase orders
. budget status
. change notices/change orders
. changes pipe quantities --> unit price versus estimates
. commitment
. computer charges
. contracts affiliate companies
. cost analysis
. cost codes cross reference
. cost
.. erection
.. pre-commissioning
.. start-up
. costs of affiliated companies & branch offices
. escalation evaluation
. field purchase orders
. impact of unit rates * revised quantities
. impact on XYZ manhours (schedule extensions)
. missing purchase orders
. module fabrication
. monitoring status main equipment –> compare with budget
. process chemicals/catalysts/packings
. project cost reporting
.. backup of purchase orders
.. amendments
.. estimated finals
.. approved change orders
. scope control
.. manhour estimating
. status bulk materials (trends)
. special requirements (catalogues, microfilms, etc.)
. subcontractor reports
. winterizing cost

Cost Engineering information supply includes :

. bidders – completeness of bids
. budget releases – purchase orders, subcontracts
. budget transfers – joint ventures, partners
. commercial bid evaluations <-- Procurement
. commitments vs anticipated finals - status
. control budget status <--> Project Management, Client
. cost reports – status, trends, field p.o.’s, extra work orders, joint ventures
. curve – forecast, planning, manpower
. escalation – adjustments <– forecast
. evaluations – technical, commercial – alternatives
. extra work orders <–
. field purchase orders <– Field
. impact on XYZ – current, forecast
. isometric release schedule <– Piping
. manhours – planned, spent, forecast vs budget, approved deviations
. material quantity forecast <– Engineering
. material received notice <– Material Management, Procurement
. payment curves – actual, forecast
. procurement status report <– Procurement
. progress – subcontracts
. treasury – financing cost & interest
. unit prices of bulk – actual vs estimated

Systems in use are :

- PEC

5.8 Sales

For the moment, this paragraph has not yet been further detailed.

5.9 Human Resources

For the moment, this paragraph has not yet been further detailed.

W O R K F L O W

6 BUSINESS PROCESS INFORMATION FLOW SUPPORT

In this report, with BUSINESS PROCESS is meant a structured outline of the engineering-procurement-construction cycle, from beginning to end. This overview is needed to understand the way the various disciplines are working (on a project) and to determine which parts of the whole process are supported by what systems.

It is not intended to outline the BUSINESS PROCESS in all possible details, just to have a general overview at a level of detail sufficient to map the INFORMATION FLOW SUPPORT (= systems) against.

The BUSINESS PROCESS INFORMATION FLOW SUPPORT is input for the CORE SYSTEMS in that the CORE SYSTEMS are related with the BUSINESS PROCESS (RESPONSIBILITIES). In this way we can see how the BUSINESS PROCESS (RESPONSIBILITIES) is supported by information systems.

Normally in an organization & information analysis, the entire BUSINESS PROCESS should be formalized. Since this is very time consuming, a shortcut can be done by simply looking at how the RESPONSIBILITIES are supported by automated & manual systems.

The INFORMATION FLOW SUPPORT is the combination of automated systems and manual systems with the aim to exchange information within and outside a discipline, hence INFORMATION FLOW SUPPORT. So a global system overview will show the most important information flows.

In general, the context is as follows :

3

## details to follow ######

6.1 PROCESS INDUSTRY STEP WORKFLOW

Business goal number 8 emphasizes standardization of work flow. Therefore this paragraph shows a typical PISTEP (Process Industry STEP) compliant workflow :

Conceptual process design
TO Detailed process design :
process definition
control philosophy
cost, benefits, timings
safety/regulatory requirements
TO Conceptual engineering design :
process stream data
process flow diagrams
cost, benefits, timings
- define overall requirement
. define end requirements
. identify start conditions
- identify candidate process
- design process
. define unit operations
. produce energy/mass balance
. produce composition of process streams
. define control philosophy
. produce process flow diagrams
- provide input to feasibility/financial case
- identify safety/regulatory requirements

Conceptual engineering design
FROM Conceptual process design :
process stream data
process flow diagrams
cost, benefits, timings
TO Detailed engineering design :
preliminary engineering design
engineering philosophies
availability requirements
cost & time estimates
safety/regulatory requirements
codes & standards
- determine engineering approach
. review process design
. determine status of existing plant
. define engineering design strategy
. obtain codes & standards
- produce conceptual mechanical engineering design
. identify materials of construction
. produce major equipment design philosophy
. produce preliminary equipment & line lists
. produce preliminary equipment specs
. produce cost & time estimates
. produce preliminary weight & volume estimates
. define commissioning philosophy
- produce conceptual electrical engineering design
. identify materials of construction
. produce major equipment design philosophy
. produce preliminary equipment specs
. produce cost & time estimates
. produce preliminary weight & volume estimates
. define commissioning philosophy
- produce conceptual control & instrumentation engineering design
. identify materials of construction
. produce major equipment design philosophy
. produce preliminary equipment specs
. produce control systems architecture
. produce cost & time estimates
. produce preliminary weight & volume estimates
. define commissioning philosophy
- produce conceptual safety engineering design
. define safety philosophies
. identify regulatory requirements
. define containment philosophy
. produce technical risk assessment
- define preliminary plant layouts
. review site alternatives & conditions
. produce preliminary layout drawings
. produce studies for cranage & handling
- produce conceptual civil/structural engineering design
. produce site survey/soil investigation
. define civil.structural philosophies
. identify materials of construction
. produce preliminary building or module layout drawings
. produce preliminary weight & volume estimates
. define construction philosophy
. define building/structural commissioning philosophy

Detailed process design
FROM conceptual process design :
process definition
control philosophy
cost, benefits, timings
safety/regulatory requirements
TO Detailed engineering design :
detailed process design
availability requirements
safety systems specs
operating procedures
codes & standards
TO Commission process & handover plant :
performance requirements
operating procedure
operating conditions
alarm/trip settings
safety & environment case
- produce piping & instrumentation diagram
- produce functional specification for equipment
- produce control requirements specification
. identify control requirements
. identify trip requirements
. produce control requirements specs
- satisfy safety requirements
. define relief & blowdown philosophy
. define protective system philosophy
. define hazardous areas
. produce safety & environment case
- produce plant operating procedures

Detailed engineering design
FROM Conceptual engineering design :
preliminary engineering design
engineering philosophies
availability requirements
cost & time estimates
safety/regulatory requirements
codes & standards
FROM Detailed process design :
detailed process design
availability requirements
safety systems specs
operating procedures
codes & standards
FROM Procure & control equipment, materials & services
delivery dates
vendor drawings
certification
equipment procedures
equipment & materials
catalogues
TO Procure & control equipment, materials & services
materials and equipment requirements & specs
required on site dates
TO Construct & precommission plant
detailed engineering design
equipment procedures
vendor drawings
spares lists
- produce detailed mechanical engineering design
. produce mechanical & piping equipment design
. produce equipment handling system design
. produce detailed mechanical equipment specs
. define mechanical equipment spares requirement
. produce maintenance procedures
- produce detailed electrical engineering design
. review & detail plant/building electrical requirements
. produce earthing requirements
. produce communication system design
. produce electrical equipment specifications
. produce electrical cable runs design
. produce power distribution systems design
. produce electrical environment control requirements
. define electrical equipment spares requirement
. produce maintenance procedures
- produce detailed control & instrumentation engineering design
. review & detail instrumentation plant/building requirements
. produce clean earthing requirements
. produce measurement instrumentation specification
. produce actuator specs
. produce control systems specs
. define signal transmission pathways
. produce environmental control requirements for instrumentation
. define instrumentation equipment spares requirement
. produce maintenance procedures
- produce detailed layout & construction design
. produce site payout drawing
. produce 3D model
. coordinate interfaces between design areas
. produce site construction & installation methodology
. define test & precommissioning requirements
- produce building & plant services design
. produce domestic sewerage and storm water design
. produce environmental control systems design
. produce lighting and small power design
. produce fire protection systems design
- produce detailed civil/structural engineering design
. produce site survey/soil investigation
. produce room/module specs
. produce civil/construction drawings
. design containment systems
. design process effluent drainage systems
. design foundation structures
. produce painting & surface finish specs
. produce weight schedules
. produce bill of quantities
- produce detailed safety engineering assessment

Procure & control equipment, materials & services
FROM Detailed engineering design :
materials and equipment requirements & specs
required on site dates
FROM Suppliers :
equipment procedures
delivery dates
vendor drawings
certification
equipment & materials catalogues
invoices
FROM Maintain equipment :
materials and equipment requirements & specs
required on site dates
TO Detailed engineering design :
delivery dates
vendor drawings
certification
equipment procedures
equipment & materials
catalogues
TO Construct & precommission plant :
delivery dates
vendor drawings
certification
equipment procedures
equipment & materials catalogues
inspection results
shipping details
TO Maintain equipment :
delivery dates
vendor drawings
certification
equipment procedures
equipment & materials catalogues
inspection results
shipping details
TO Suppliers & fabricators
materials & equipment requirements & specs
required on site dates
inspection results
shipping details
payment details
- maintain suppliers list
. maintain list of preferred suppliers
. maintain relationship with supplier
- issue inquiries
. compile bidders list
. produce inquiry documents
. compile conditions of contract
- evaluate bids
. condition bids
. select supplier
- commit purchases
. produce purchase orders
. compile final conditions of contract
- expedite manufacture
. expedite progress
. authorize stage payments
. respond to technical queries
- inspect
. inspect equipment
. respond to concession requests
- release for shipment from supplier
. issue release note
. close out purchase order
. authorize final payments
- ship goods from supplier
. pack goods
. make shipping arrangements
- control & issue equipment & materials
. produce material stock strategy
. unload goods
. store goods
. control & monitor stock
. issue goods and transport to required location

Construct & precommission plant
FROM detailed engineering design :
detailed engineering design
equipment procedures
vendor drawings
spares lists
FROM Procure & control equipment, materials & services :
delivery dates
vendor drawings
certification
equipment procedures
equipment & materials catalogues
inspection results
shipping details
TO Commission process & handover plant :
as built drawings
equipment commissioning procedures
equipment operating procedures
inspection & testing records
handover certificates
TO Maintain equipment :
as built drawings
as built equipment specifications
spares lists
installation procedures
maintenance procedures
inspection results
unfinished work details
- produce construction plans
. produce contract plan
. produce construction plan
- establish construction services
- erect plant
. civil/structural construction
. erect major plant items
. construct piping
. install electrical & instrumentation systems
. complete special finishes, linings, insulation & painting
- produce as-built surveys
. perform conformance checks
. produce as built specs & drawings
. identify unfinished work
- pre-commission
. clean plant for testing & commissioning
. prepare equipment for commissioning
. perform precommissioning tests
. perform baseline inspection
- handover to process commissioning

Commission process & handover plant
FROM Construct & Precommission plant :
as built drawings
equipment commissioning procedures
equipment operating procedures
inspection & testing records
handover certification
FROM Detailed process design :
performance requirements
operating procedures
operating conditions
alarm/trip settings
safety & environment case
TO Operate plant :
as built drawings
operating procedures
acceptance test results
handover certificate
- produce commissioning plan
- train commissioning personnel
- commission plant
. perform trip tests
. perform hot commissioning
. tune control systems
- perform acceptance testing
. identify plant performance envelope
. compare performance to specification
. identify corrective actions & responsibility
- handover plant for operation
. update operating procedures
. finalize agreement with regulatory bodies
. perform plant handover

Operate plant
FROM Commission process & handover plant :
as built drawings
operating procedures
acceptance test results
handover certificate
FROM Maintain equipment :
inspection requirements
work permit requests
notification of work
completion
TO Maintain equipment :
engineering work requests
working conditions requirements
engineering work permits
acceptance of engineering work
TO decommission plant :
plant status
ground drains status
safety case
as built & as modified drawings
- ensure safe plant operations
. obtain operating procedures
. obtain operating schematics
. define safety & security procedures
. obtain certificate to operate
. maintain safety case
. train operating personnel
- plan & schedule plant operations
. define operating modes
. plan plant operations
. schedule plant operations
- operation of plant
. configure plant
. startup plant
. monitor plant performance
. optimize plant operations
. account for plant performance
. shut-down & clean out plant
. dispose of inventory
- request & approve work on plant
. identify requirement
. request engineering data
. approve work permits
. ensure safe working conditions
. accept engineering work

Maintain equipment
FROM Construct & precommission plant :
as built drawings
as built equipment specifications
spares lists
installation procedures
maintenance procedures
inspection results
unfinished work details
FROM Operate plant :
engineering work requests
working conditions requirements
engineering work permits
acceptance of engineering work
FROM Procure & control equipment, materials & services :
delivery dates
vendor drawings
certification
equipment procedures
equipment & materials catalogues
inspection results
shipping details
TO Operate plant
inspection requirements
work permit requests
notification of work
completion
TO Procure & control equipment, materials & services :
materials & equipment
requirements & specifications
required on site dates
TO demolish plant & restore site :
state of equipment
value of equipment
equipment records
- define maintenance approach
. obtain plant availability requirements
. equipment records
. obtain plant & equipment drawings
. obtain & develop maintenance procedures
. define preventative, breakdown, shutdown maintenance strategy
. obtain & develop spares strategy
. obtain hazardous materials data
. train maintenance & inspection staff
- plan actual maintenance or inspection
. respond to maintenance request
. identify routine maintenance requirement
. identify inspection requirements
. obtain equipment records
. obtain plant & equipment drawings
. obtain maintenance procedures
. obtain plant availability requirements
. identify resource requirements
. schedule maintenance & inspection
- prepare for maintenance or inspection
. obtain equipment records
. obtain plant & equipment drawings
. obtain maintenance procedures
. obtain resources
. obtain work permit
. obtain inspection report
- maintain or inspect equipment
. prepare site for work
. perform maintenance or inspection
. record resources consumed
. update equipment records

Decommission plant
FROM Operate plant :
plant status
ground drains status
safety case
as built & as modified drawings
TO Demolish plant & restore site :
plant status
plant records
inspection requirements
regulatory approvals
- define decommissioning requirements
. identify current status
. define final status
- produce decommissioning & restoration plan
- perform preparatory works
. isolate services
. provide temporary services
. provide decommissioning equipment
- clean & preserve plant
. clean plant
. preserve plant
. archive records
. determine inspection requirements
. finalize regulatory approvals

Demolish plant & restore site
FROM Decommission plant :
plant status
plant records
inspection requirements
regulatory approvals
FROM Maintain equipment :
state of equipment
value of equipment
equipment records
TO Archive :
disposal records
restoration records
handover records
final regulatory approvals
- define demolition & restoration requirement
. define demolition requirements
. define restoration requirements
. perform safety & environment study
- plan demolition & restoration
. produce demolition procedures
. produce resource estimates
. produce demolition & restoration plan
- prepare for plant demolition
. obtain equipment records
. obtain plant & equipment drawings
. obtain maintenance procedures
. obtain resources
. obtain work permit
. obtain inspection reports
- demolish & secure plant
. prepare site
. remove plant
. dispose of plant items & materials
. box-up and secure plant to remain
- restore site
. survey site contamination
. remove/treat contaminated material
. dispose of contaminated material
. restore environment
- dispose of site
. archive records
. finalize regulatory approval

Suppliers & fabricators
FROM Procure & control equipment, materials & services :
materials & equipment requirements & specs
required on site dates
inspection results
shipping results
payment results
TO Procure & control equipment, materials & services :
equipment procedures
delivery dates
vendor drawings
certification
equipment & materials catalogues
invoices

6.2 EPC COMPANY WORKFLOW

The EPC COMPANY workflow is different from the PISTEP workflow. For reasons of analysis, emphasis is put on the information flow. The flow is follows :

Process engineering

- produces the following information :

. centrifugal pump head calculations
. heat & material balances
. non-safety calculations
. operating manuals
. process data sheets
. process specifications
. process design basis
. process flow diagrams
. safety calculations

- information flow :

TO Architectural
TO Civil
TO Control systems
TO Construction
TO Electrical
TO Mechanical
TO Project engineering
TO Piping
TO Structural
TO Subcontractor
TO Vessels

FROM Architectural
FROM Civil
underground piping/sewer/drainage drawings
FROM Control systems
control room/control panels layout drawings
instrument vessel sketches drawings
pressure relief valves/devices requisitions
trip/shutdown logic diagrams
FROM Construction
FROM Electrical
FROM Mechanical
agitators/mixers requisitions
blend systems requisitions
blowers & fans requisitions
boilers requisitions
centrifuges requisitions
compressor/gas steam turbines requisitions
cooling towers requisitions
crystallizer (pau/pump/mot/ctrl/pip) requisitions
dryers (adsorption, fired, other) requisitions
dust collectors (cyclones, other) requisitions
field fabricated heaters requisitions
filters requisitions
flare systems requisitions
gas generators requisitions
g/h specifications
grinders & granulators requisitions
hvac/fireprotection requisitions
incinerators requisitions
noise abatement equipment requisitions
package units requisitions
packaging & pelletizing requisitions
pumps/ejectors/eductors requisitions
refrigerator requisitions
shop fabricated heaters requisitions
solids handling systems requisitions
stacks requisitions
vacuum equipment requisitions
waste heat boilers requisitions
waste water treatment requisitions
water treatment systems requisitions
FROM Project engineering
basic design data
equipment list
fireproof identification schedule
line designation tables
miscellaneous equipment requisitions
miscellaneous equipment specifications
p&id’s
p&id standards
utility engineering diagrams
utility distribution diagrams
FROM Piping
pipe class & support design specifications

auxiliary piping at pumps drawings
design standards
design specifications
general arrangement drawings
piping isometrics
piping steam tracing drawings
site & plotplans layouts
FROM Structural
FROM Subcontractor
FROM Vessels
heat exchangers drawings
reactors drawings
requisitions for filters
requisitions for gas separators
technical bid comparisons for airfins
technical bid comparisons for double pipe heat exchangers
towers/drums/tanks drawings

Project engineering

- produces the following information :

. basic design data
. equipment list
. fireproof identification schedule
. line designation tables
. miscellaneous equipment data sheets
. miscellaneous equipment requisitions
. miscellaneous equipment specifications
. p&id’s
. p&id standards
. utility engineering diagrams
. utility distribution diagrams

- information flow :

TO Architectural
TO Civil
fireproof identification schedule
line designation tables
TO Control systems
p&id’s
p&id standards
utility engineering diagrams
TO Construction
TO Electrical
TO Mechanical
p&id’s
utility engineering diagrams
TO Process
basic design data
equipment list
fireproof identification schedule
line designation tables
miscellaneous equipment requisitions
miscellaneous equipment specifications
p&id’s
p&id standards
utility engineering diagrams
utility distribution diagrams
TO Piping
line designation tables
p&id’s
utility distribution diagrams
utility engineering diagrams
TO Structural
TO Subcontractor
miscellaneous equipment requisitions
TO Vessels

FROM Architectural
FROM Civil
underground piping/sewer/drainage drawings
FROM Control systems
FROM Construction
FROM Electrical
FROM Mechanical
agitators/mixers requisitions
blend systems requisitions
blowers & fans requisitions
boilers requisitions
centrifuges requisitions
compressor/gas steam turbines requisitions
cooling towers requisitions
crystallizer (pau/pump/mot/ctrl/pip) requisitions
dryers (adsorption, fired, other) requisitions
dust collectors (cyclones, other) requisitions
field fabricated heaters requisitions
filters requisitions
gas generators requisitions
g/h specifications
grinders & granulators requisitions
hvac/fireprotection requisitions
incinerators requisitions
loading arms requisitions
miscellaneous major items requisitions
mobile equipment (forklifts, tractors) requisitions
noise abatement equipment requisitions
package units requisitions
packaging & pelletizing requisitions
pumps/ejectors/eductors requisitions
shop fabricated heaters requisitions
solids handling systems requisitions
stacks requisitions
test equipment & shop tools requisitions
vacuum equipment requisitions
waste heat boilers requisitions
waste water treatment requisitions
water treatment systems requisitions
weigher requisitions
FROM Process
FROM Piping
pipe class & support design specifications

site & plotplans layouts
FROM Structural
FROM Subcontractor
FROM Vessels

Vessel engineering

- produces the following information :

. design standards
. design specifications
. equipment data sheets
. heat exchangers drawings
. non-safety calculations
. reactors drawings
. requisition related specifications
. requisitions for filters
. requisitions for gas separators
. requisitions for other
. safety calculations
. subcontracts
. towers/drums/tanks drawings
. vessel lifting devices or instructions

- receives the following information :

. technical bid comparisons

- information flow :

TO Architectural
TO Civil
technical bid comparisons for storage tanks/spheres
TO Control systems
TO Construction
TO Electrical
technical bid comparisons for airfins
TO Mechanical
TO Process
heat exchangers drawings
reactors drawings
requisitions for filters
requisitions for gas separators
technical bid comparisons for airfins
technical bid comparisons for double pipe heat exchangers
towers/drums/tanks drawings
TO Project engineering
TO Piping
technical bid comparisons for airfins
TO Structural
technical bid comparisons for airfins
TO Subcontractor
technical bid comparisons for storage tanks/spheres

FROM Architectural
FROM Civil
FROM Control systems
instrument vessel sketches drawings
safety equipment/special flame arrest requisitions
weigher requisitions
FROM Construction
FROM Electrical
FROM Mechanical
boilers requisitions
centrifuges requisitions
compressor/gas steam turbines requisitions
dust collectors requisitions
field fabricated heaters requisitions
flare systems requisitions
g/h specifications
incinerators requisitions
miscellaneous major items requisitions
noise abatement equipment requisitions
package units requisitions
refrigerating systems requisitions
shop fabricated heaters requisitions
solids handling systems requisitions
special equipment requisitions
vacuum equipment requisitions
waste heat boilers requisitions
waste water treatment requisitions
water treatment systems requisitions
FROM Process
FROM Project engineering
FROM Piping
FROM Structural
FROM Subcontractor

Piping engineering

- produces the following information :

. bill of materials pipe support
. design standards
. pipe class & support design specifications
. requisitions for bulk
. requisitions for specials
. safety calculations
. subcontract input

- information flow :

TO Architectural
TO Civil
TO Control systems
TO Construction
TO Electrical
TO Mechanical
TO Process
pipe class & support design specifications
TO Project engineering
pipe class & support design specifications
TO Structural
TO Subcontractor
subcontract input
TO Vessels

FROM Architectural
conceptual drawings
other drawings
FROM Civil
layout drawings
other drawings
reinforced concrete structures drawings
underground piping/sewer/drainage drawings
FROM Control systems
analog loop/sampling system layout drawings
instrument piping valves and materials requisitions
FROM Construction
FROM Electrical
non-electrical equipment requisitions
FROM Mechanical
agitators/mixers requisitions
blend systems requisitions
blowers & fans requisitions
boilers requisitions
cooling towers requisitions
crystallizer (pau/pump/mot/ctrl/pip) requisitions
field fabricated heaters requisitions
flare systems requisitions
gas generators requisitions
g/h specifications
grinders & granulators requisitions
hvac/fireprotection requisitions
incinerators requisitions
loading arms requisitions
package units requisitions
packaging & pelletizing requisitions
pumps/ejectors/eductors requisitions
refrigerator requisitions
shop fabricated heaters requisitions
solids handling systems requisitions
stacks requisitions
waste heat boilers requisitions
waste water treatment requisitions
water treatment systems requisitions
FROM Process
FROM Project engineering
line designation tables
p&id’s
utility distribution diagrams
utility engineering diagrams
FROM Structural
platforms drawings
FROM Subcontractor
FROM Vessels
technical bid comparisons for airfins

Piping design

- produces the following information :

. auxiliary piping at pumps drawings
. design standards
. design specifications
. general arrangement drawings
. piping isometrics
. piping steam tracing drawings
. site & plotplans layouts

- information flow :

TO Architectural
site & plotplans layouts
TO Civil
site & plotplans layouts
TO Control systems
site & plotplans layouts
TO Construction
site & plotplans layouts
TO Electrical
site & plotplans layouts
TO Mechanical
auxiliary piping at pumps drawings
site & plotplans layouts
TO Process
auxiliary piping at pumps drawings
design standards
design specifications
general arrangement drawings
piping isometrics
piping steam tracing drawings
site & plotplans layouts
TO Project engineering
site & plotplans layouts
TO Piping
TO Structural
site & plotplans layouts
TO Subcontractor
TO Vessels

FROM Architectural
conceptual drawings
other drawings
FROM Civil
layout drawings
other drawings
reinforced concrete structures drawings
underground piping/sewer/drainage drawings
FROM Control systems
FROM Construction
FROM Electrical
cathodic protection drawings
electrical tracing drawings
grounding layout drawings
installation details drawings
lighting layout drawings
sub station cable layout drawings
sub station layout drawings
FROM Mechanical
FROM Process
FROM Project engineering
FROM Piping
FROM Structural
platforms drawings
FROM Subcontractor
FROM Vessels

Civil engineering

- produces the following information :

. building drawings
. design specifications
. design standards
. engineering & design subcontract requisitions
. layout drawings
. non-safety calculations
. other drawings
. other requisitions
. reinforced concrete structures drawings
. safety calculations
. specifications
. subcontract requisitions
. underground piping/sewer/drainage drawings

- receives the following information :

. technical bid comparisons

- information flow :

TO Architectural
building drawings
TO Control systems
TO Construction
TO Electrical
other drawings
reinforced concrete structures drawings
underground piping/sewer/drainage drawings
TO Mechanical
TO Process
underground piping/sewer/drainage drawings
TO Project engineering
underground piping/sewer/drainage drawings
TO Piping
layout drawings
other drawings
reinforced concrete structures drawings
underground piping/sewer/drainage drawings
TO Structural
TO Subcontractor
design specifications
design standards
engineering & design subcontract requisitions
other requisitions
subcontract documents
TO Vessels

FROM Architectural
FROM Control systems
FROM Construction
FROM Electrical
non-electrical equipment requisitions
FROM Mechanical
cooling towers requisitions
crystallizer (pau/pump/mot/ctrl/pip) requisitions
blend systems requisitions
boilers requisitions
dryers (adsorption, fired, other) requisitions
field fabricated heaters requisitions
filters requisitions
g/h specifications
hvac/fireprotection requisitions
incinerators requisitions
loading arms requisitions
package units requisitions
shop fabricated heaters requisitions
special equipment requisitions
stacks requisitions
waste heat boilers requisitions
waste water treatment requisitions
weigher requisitions
FROM Process
FROM Project engineering
fireproof identification schedule
line designation tables
FROM Piping
site & plotplans layouts
FROM Structural
FROM Subcontractor
FROM Vessels
technical bid comparisons for storage tanks/spheres

Structural steel engineering

- produces the following information :

. design specifications
. design standards
. fireproofing drawings for structural steel & equipment
. non-safety calculations
. platforms drawings
. requisitions for other
. requisitions for structural steel
. safety calculations
. specifications for modules
. specifications for other
. structural steel drawings
. subcontracts

- receives the following information :

. technical bid comparisons

- information flow :

TO Architectural
TO Civil
TO Control systems
TO Construction
specifications for modules
TO Electrical
TO Mechanical
TO Process
TO Project engineering
TO Piping
platforms drawings
TO Subcontractor
TO Vessels

FROM Architectural
FROM Civil
FROM Control systems
FROM Construction
FROM Electrical
FROM Mechanical
blend systems requisitions
boilers requisitions
centrifuges requisitions
crystallizer (pau/pump/mot/ctrl/pip) requisitions
dryers (adsorption, fired, other) requisitions
dust collectors (cyclones, other) requisitions
filters requisitions
flare systems requisitions
gas generators requisitions
g/h specifications
hvac/fireprotection requisitions
loading arms requisitions
miscellaneous major items requisitions
package units requisitions
refrigerator requisitions
solids handling systems requisitions
special equipment requisitions
stacks requisitions
vacuum equipment requisitions
FROM Process
FROM Project engineering
FROM Piping
site & plotplans layouts
FROM Subcontractor
subcontracts
FROM Vessels
technical bid comparisons for airfins

Architectural

- produces the following information :

. conceptual drawings
. design specifications
. design standards
. engineering & design subcontract requisitions
. other drawings
. other requisitions
. permits applications documents
. specifications
. subcontracts

- receives the following information :

. technical bid evaluation

- information flow :

TO Architectural
TO Civil
TO Control systems
conceptual drawings
TO Construction
TO Electrical
conceptual drawings
TO Mechanical
TO Process
TO Project engineering
TO Piping
conceptual drawings
other drawings
TO Structural
TO Subcontractor
design specifications
design standards
engineering & design subcontract requisitions
other requisitions
subcontracts
TO Vessels

FROM Architectural
site & plotplans layouts
FROM Civil
building drawings
FROM Control systems
control room/control panels layout drawings
FROM Construction
FROM Electrical
FROM Mechanical
dust collectors (cyclones, other) requisitions
g/h specifications
hvac/fireprotection requisitions
packaging & pelletizing requisitions
special equipment requisitions
FROM Process
FROM Project engineering
FROM Piping
FROM Structural
FROM Subcontractor
FROM Vessels

Electrical engineering

- produces the following information :

. design specifications
. main equipment requisitions
. main equipment specifications
. motor data sheets
. non-electrical equipment requisitions
. non-safety calculations/studies
. other requisitions
. other specifications
. safety calculations/studies
. subcontract input
. technical bid evaluation main equipment
. technical bid evaluation other

- information flow :

TO Architectural
TO Civil
non-electrical equipment requisitions
TO Control systems
non-electrical equipment requisitions
TO Construction
TO Mechanical
non-electrical equipment requisitions
TO Process
TO Project engineering
TO Piping
non-electrical equipment requisitions
TO Structural
TO Subcontractor
main equipment requisitions
non-electrical equipment requisitions
other requisitions
subcontract input
TO Vessels

FROM Architectural
conceptual drawings
FROM Civil
other drawings
reinforced concrete structures drawings
underground piping/sewer/drainage drawings
FROM Control systems
FROM Construction
FROM Mechanical
agitators/mixers requisitions
blend systems requisitions
blowers & fans requisitions
boilers requisitions
centrifuges requisitions
compressor/gas steam turbines requisitions
cooling towers requisitions
crystallizer (pau/pump/mot/ctrl/pip) requisitions
dryers (adsorption, fired, other) requisitions
dust collectors requisitions
filters requisitions
field fabricated heaters requisitions
flare systems requisitions
gas generators requisitions
g/h specifications
hvac/fireprotection requisitions
incinerators requisitions
loading arms requisitions
miscellaneous major items requisitions
mobile equipment (forklifts, tractors) requisitions
package units requisitions
packaging & pelletizing requisitions
pump ejectors/eductors requisitions
refrigerating systems requisitions
shop fabricated heaters requisitions
solids handling systems requisitions
special equipment requisitions
stacks requisitions
vacuum equipment requisitions
waste heat boilers requisitions
waste water treatment requisitions
water treatment systems requisitions
FROM Process
FROM Project engineering
FROM Piping
FROM Structural
FROM Subcontractor
FROM Vessels
technical bid comparisons for airfins

Electrical design

- produces the following information :

. cable list/take off drawings
. cathodic protection drawings
. communication layout drawings
. control wiring/interconnection drawings
. data list/load summary drawings
. electrical area classification
. electrical tracing drawings
. grounding layout drawings
. installation details drawings
. lighting layout drawings
. power layout drawings
. sub station cable layout drawings
. sub station layout drawings
. trench layout drawings

- information flow :

TO Architectural
TO Civil
TO Control systems
TO Construction
TO Mechanical
TO Process
TO Project engineering
TO Piping
cathodic protection drawings
electrical tracing drawings
grounding layout drawings
installation details drawings
lighting layout drawings
sub station cable layout drawings
sub station layout drawings
TO Structural
TO Subcontractor
TO Vessels

FROM Architectural
FROM Civil
FROM Control systems
FROM Construction
FROM Mechanical
FROM Process
FROM Project engineering
FROM Piping
site & plotplans layouts
FROM Structural
FROM Subcontractor
FROM Vessels

Control systems engineering

- produces the following information :

. analog loop/sampling system layout drawings
. computer system drawings
. control room/control panels layout drawings
. control systems/shutdown systems/analog devices requisitions
. design specifications
. design standards
. earthing system philosophy drawings
. electric power distribution drawings
. field layout drawings
. in-line instruments requisitions
. installation/mounting drawings
. instrument cables
. instrument data sheets
. instrument equipment layout drawings
. instrument piping valves and materials requisitions
. instrument schedules
. instrument vessel sketches drawings
. int conn diagrams drawings
. junction box drawings
. kp/kt/kl/kf/min anl/lab eq requisitions
. miscellaneous bulk materials
. non-safety calculations
. panel piping & wiring drawings
. pressure relief valves/devices requisitions
. process/air hook-ups drawings
. safety calculations
. safety equipment/special flame arrest requisitions
. special equipment requisitions
. specifications
. subcontracts
. technical bid comparisons
. test equipment requisitions
. trip/shutdown logic diagrams
. weigher requisitions

- information flow :

TO Architectural
control room/control panels layout drawings
TO Civil
TO Construction
TO Electrical
TO Mechanical
TO Process
control room/control panels layout drawings
instrument vessel sketches drawings
pressure relief valves/devices requisitions
trip/shutdown logic diagrams
TO Project engineering
TO Piping
analog loop/sampling system layout drawings
instrument piping valves and materials requisitions
site & plotplans layouts
TO Structural
TO Subcontractor
subcontracts
TO Vessels
instrument vessel sketches drawings
safety equipment/special flame arrest requisitions
weigher requisitions

FROM Architectural
conceptual drawings
FROM Civil
FROM Construction
FROM Electrical
non-electrical equipment requisitions
FROM Mechanical
blend systems requisitions
boilers requisitions
centrifuges requisitions
compressor/gas steam turbines requisitions
cooling towers requisitions
crystallizer (pau/pump/mot/ctrl/pip) requisitions
dryers (adsorption, fired, other) requisitions
field fabricated heaters requisitions
flare systems requisitions
gas generators requisitions
g/h specifications
hvac/fireprotection requisitions
incinerators requisitions
loading arms requisitions
miscellaneous major items requisitions
package units requisitions
packaging & pelletizing requisitions
refrigerating systems requisitions
shop fabricated heaters requisitions
solids handling systems requisitions
special equipment requisitions
stacks requisitions
test equipment/shop tools requisitions
vacuum equipment requisitions
waste heat boilers requisitions
waste water treatment requisitions
water treatment systems requisitions
weigher requisitions
FROM Process
FROM Project engineering
p&id’s
p&id standards
utility engineering diagrams
FROM Piping
FROM Structural
FROM Subcontractor
FROM Vessels

Mechanical engineering

- produces the following information :

. agitators/mixers requisitions
. blend systems requisitions
. blowers & fans requisitions
. boilers requisitions
. centrifuges requisitions
. compressor/gas steam turbines requisitions
. cooling towers requisitions
. crystallizer (pau/pump/mot/ctrl/pip) requisitions
. dryers (adsorption, fired, other) requisitions
. dust collectors (cyclones, other) requisitions
. equipment data sheets
. field fabricated heaters requisitions
. filters requisitions
. fire protection specifications
. flare systems requisitions
. gas generators requisitions
. gas separators (silencers) requisitions
. g/h specifications
. grinders & granulators requisitions
. hvac/fireprotection requisitions
. hvac specifications
. incinerators requisitions
. loading arms requisitions
. miscellaneous major items requisitions
. mobile equipment (forklifts, tractors) requisitions
. noise abatement equipment requisitions
. noise data sheets
. non-safety calculations
. other specifications
. package units requisitions
. packaging & pelletizing requisitions
. pumps/ejectors/eductors requisitions
. refrigerator requisitions
. safety calculations
. shop fabricated heaters requisitions
. sketches drawings
. solids handling systems requisitions
. special equipment requisitions
. stacks requisitions
. test equipment & shop tools requisitions
. vacuum equipment requisitions
. waste heat boilers requisitions
. waste water treatment requisitions
. water treatment systems requisitions
. weigher requisitions

- receives the following information :

. technical bid comparisons for heaters
. technical bid comparisons for pumps & compressors
. technical bid comparisons for other

- information flow :

TO Architectural
dust collectors (cyclones, other) requisitions
g/h specifications
hvac/fireprotection requisitions
packaging & pelletizing requisitions
special equipment requisitions
TO Civil
cooling towers requisitions
crystallizer (pau/pump/mot/ctrl/pip) requisitions
blend systems requisitions
boilers requisitions
dryers (adsorption, fired, other) requisitions
field fabricated heaters requisitions
filters requisitions
g/h specifications
hvac/fireprotection requisitions
incinerators requisitions
loading arms requisitions
package units requisitions
shop fabricated heaters requisitions
special equipment requisitions
stacks requisitions
waste heat boilers requisitions
waste water treatment requisitions
weigher requisitions
TO Control systems
blend systems requisitions
boilers requisitions
centrifuges requisitions
compressor/gas steam turbines requisitions
cooling towers requisitions
crystallizer (pau/pump/mot/ctrl/pip) requisitions
dryers (adsorption, fired, other) requisitions
field fabricated heaters requisitions
flare systems requisitions
gas generators requisitions
g/h specifications
hvac/fireprotection requisitions
incinerators requisitions
loading arms requisitions
miscellaneous major items requisitions
package units requisitions
packaging & pelletizing requisitions
refrigerating systems requisitions
shop fabricated heaters requisitions
solids handling systems requisitions
special equipment requisitions
stacks requisitions
test equipment/shop tools requisitions
vacuum equipment requisitions
waste heat boilers requisitions
waste water treatment requisitions
water treatment systems requisitions
weigher requisitions
TO Construction
TO Electrical
agitators/mixers requisitions
blend systems requisitions
blowers & fans requisitions
boilers requisitions
centrifuges requisitions
compressor/gas steam turbines requisitions
cooling towers requisitions
crystallizer (pau/pump/mot/ctrl/pip) requisitions
dryers (adsorption, fired, other) requisitions
dust collectors requisitions
filters requisitions
field fabricated heaters requisitions
flare systems requisitions
gas generators requisitions
g/h specifications
hvac/fireprotection requisitions
incinerators requisitions
loading arms requisitions
miscellaneous major items requisitions
mobile equipment (forklifts, tractors) requisitions
package units requisitions
packaging & pelletizing requisitions
pump ejectors/eductors requisitions
refrigerating systems requisitions
shop fabricated heaters requisitions
solids handling systems requisitions
special equipment requisitions
stacks requisitions
vacuum equipment requisitions
waste heat boilers requisitions
waste water treatment requisitions
water treatment systems requisitions
TO Process
agitators/mixers requisitions
blend systems requisitions
blowers & fans requisitions
boilers requisitions
centrifuges requisitions
compressor/gas steam turbines requisitions
cooling towers requisitions
crystallizer (pau/pump/mot/ctrl/pip) requisitions
dryers (adsorption, fired, other) requisitions
dust collectors (cyclones, other) requisitions
field fabricated heaters requisitions
filters requisitions
flare systems requisitions
gas generators requisitions
g/h specifications
grinders & granulators requisitions
hvac/fireprotection requisitions
incinerators requisitions
noise abatement equipment requisitions
package units requisitions
packaging & pelletizing requisitions
pumps/ejectors/eductors requisitions
refrigerator requisitions
shop fabricated heaters requisitions
solids handling systems requisitions
stacks requisitions
vacuum equipment requisitions
waste heat boilers requisitions
waste water treatment requisitions
water treatment systems requisitions
TO Project engineering
agitators/mixers requisitions
blend systems requisitions
blowers & fans requisitions
boilers requisitions
centrifuges requisitions
compressor/gas steam turbines requisitions
cooling towers requisitions
crystallizer (pau/pump/mot/ctrl/pip) requisitions
dryers (adsorption, fired, other) requisitions
dust collectors (cyclones, other) requisitions
field fabricated heaters requisitions
filters requisitions
gas generators requisitions
g/h specifications
grinders & granulators requisitions
hvac/fireprotection requisitions
incinerators requisitions
loading arms requisitions
miscellaneous major items requisitions
mobile equipment (forklifts, tractors) requisitions
noise abatement equipment requisitions
package units requisitions
packaging & pelletizing requisitions
pumps/ejectors/eductors requisitions
shop fabricated heaters requisitions
solids handling systems requisitions
stacks requisitions
test equipment & shop tools requisitions
vacuum equipment requisitions
waste heat boilers requisitions
waste water treatment requisitions
water treatment systems requisitions
weigher requisitions
TO Piping
agitators/mixers requisitions
blend systems requisitions
blowers & fans requisitions
boilers requisitions
cooling towers requisitions
crystallizer (pau/pump/mot/ctrl/pip) requisitions
field fabricated heaters requisitions
flare systems requisitions
gas generators requisitions
g/h specifications
grinders & granulators requisitions
hvac/fireprotection requisitions
incinerators requisitions
loading arms requisitions
package units requisitions
packaging & pelletizing requisitions
pumps/ejectors/eductors requisitions
refrigerator requisitions
shop fabricated heaters requisitions
solids handling systems requisitions
stacks requisitions
waste heat boilers requisitions
waste water treatment requisitions
water treatment systems requisitions
TO Structural
blend systems requisitions
boilers requisitions
centrifuges requisitions
crystallizer (pau/pump/mot/ctrl/pip) requisitions
dryers (adsorption, fired, other) requisitions
dust collectors (cyclones, other) requisitions
filters requisitions
flare systems requisitions
gas generators requisitions
g/h specifications
hvac/fireprotection requisitions
loading arms requisitions
miscellaneous major items requisitions
package units requisitions
refrigerator requisitions
solids handling systems requisitions
special equipment requisitions
stacks requisitions
vacuum equipment requisitions
TO Subcontractor
boilers requisitions
field fabricated heaters requisitions
gas separators (silencers) requisitions
hvac/fireprotection requisitions
shop fabricated heaters requisitions
solids handling systems requisitions
stacks requisitions
waste heat boilers requisitions
TO Vessels
boilers requisitions
centrifuges requisitions
compressor/gas steam turbines requisitions
dust collectors requisitions
field fabricated heaters requisitions
flare systems requisitions
g/h specifications
incinerators requisitions
miscellaneous major items requisitions
noise abatement equipment requisitions
package units requisitions
refrigerating systems requisitions
shop fabricated heaters requisitions
solids handling systems requisitions
special equipment requisitions
vacuum equipment requisitions
waste heat boilers requisitions
waste water treatment requisitions
water treatment systems requisitions
FROM Architectural
FROM Civil
FROM Control systems
FROM Construction
FROM Electrical
FROM Mechanical
FROM Process
FROM Project engineering
FROM Piping
FROM Structural
FROM Subcontractor
FROM Vessels

At the same time, technology for project cost estimating, cost management, and engineering economics was evolving, with pioneering work by Hans Lang and others. In 1956, the American Association of Cost Engineers (now AACE International; the Association for the Advancement of Cost Engineering) was formed by early practitioners of project management and the associated specialties of planning and scheduling, cost estimating, and cost/schedule control (project control). AACE has continued its pioneering work and in 2006 released the first ever integrated process for portfolio, program and project management (Total Cost Management Framework).

In 1969, the Project Management Institute (PMI) was formed to serve the interests of the project management industry. The premise of PMI is that the tools and techniques of project management are common even among the widespread application of projects from the software industry to the construction industry. In 1981, the PMI Board of Directors authorized the development of what has become A Guide to the Project Management Body of Knowledge (PMBOK Guide), containing the standards and guidelines of practice that are widely used throughout the profession. The International Project Management Association (IPMA), founded in Europe in 1967, has undergone a similar development and instituted the IPMA Competence Baseline (ICB). The focus of the ICB also begins with knowledge as a foundation, and adds considerations about relevant experience, interpersonal skills, and competence. Both organizations are now participating in the development of an ISO project management standard

Definition of Construction Project Management?

Construction Project Management refers to the practice of administration construction projects in place of the title-holder while furthermore serving as the construction project consultant to its design and other aspects surrounded by the construction projects. Typically an boss, construction project managers preside over, coordinate and dream up a large variety of the construction project projects, even the selection and hiring of contractors and finances. Although here are construction project managers with the intention of sort out not frankly control the real organize construction project, approximately others sort out extensive construction project management with the intention of oversees the full construction project.

Construction Project Management furthermore refers to the study of construction project in stipulations of its managerial and technological aspects. That includes but not restricted to construction project science, construction project management, and construction project expose. The study of construction project management can be taken by several formats. The generally ordinary and better recognizable is the school degree which is unfilled on courses frequent, baccalaureate, and graduate degree. Other types of formats are the apprenticeship, on the job trainings and privileged education. Because construction project management degrees include an extensive range of theme topics with the intention of construction project management way must be taken by majors as projected by the American Council pro Construction Education.

The repayment of Construction Project Management?

Construction managers sort out a ration in thinking and planning, making each construction project element methodical. By outlining a construction project schedule, efficiency of calculate is regulated, making each event of delays, changes and disputes nil. Because construction project managers sort out study existing circumstances, optimum aid of hand skills are achieved, distressing a construction project quality.

Project Management is the business process of creating a unique product, service or result. A project is a finite endeavor having specific start and completion dates undertaken to create a quantifiable deliverable. Projects undergo progressive elaboration by developing in steps and predictable increments that are tied to benchmarks, milestones and completion dates.

This finite characteristic of projects stands in sharp contrast to processes, or operations, which are permanent or semi-permanent functional work to repetitively produce the same product or service. In practice, the management of these two systems is often found to be quite different, and as such requires the development of distinct technical skills and the adoption of a separate management philosophy.

The primary challenge of Project Management is to achieve all of the goals of the project charter while adhering to three out of the four classic project constraints sometimes referred to as the “triple constraints.” The four constraints are defined as scope, time, cost and quality.

The more ambitious goal of Project Management Professional is to carry the project through the entire Project Management life cycle. The Project Management lifecycle consists of five phases called Project Management Process Groups: Project Initiation, Project Planning, Project Execution, Project Monitoring and Control and Project Closeout.

Each Project Management Process Group utilizes nine Knowledge Areas which are: integration management, scope management, time management, cost management, quality management, human resource management, communications management, risk management and procurement management.

Project management is composed of several different types of activities such as:

1. Analysis and design of objectives and events
2. Planning the work according to the objectives
3. Assessing and controlling risk (or Risk Management)
4. Estimating resources
5. Allocation of resources
6. Organizing the work
7. Acquiring human and material resources
8. Assigning tasks
9. Directing activities
10. Controlling project execution
11. Tracking and reporting progress (Management information system)
12. Analyzing the results based on the facts achieved
13. Defining the products of the project
14. Forecasting future trends in the project
15. Quality Management
16. Issues management
17. Issue solving
18. Defect prevention
19. Identifying, managing & controlling changes
20. Project closure (and project debrief)
21. Communicating to stakeholders
22. Increasing / decreasing a company’s workers

A construction project manager is a qualified individual with a degree in construction management, civil engineering or construction science. Being in charge of construction projects, he has to ensure that the entire project is completed on time, without exceeding budgetary limits. It is a high pressure job. The manager has complete control and is responsible for everything related to the construction project.

The label Construction Project Manager is loosely used to define any supervisory level managers who direct supervisors in construction projects. He may also be called by other titles such as construction superintendent, general construction manager, executive construction manager, constructor or even contractor or sub-contractor. He could be a salaried employee of a construction company or engaged to manage a particular construction project.

The construction project manager has to be involved in the project from the beginning through to its completion. By employing his knowledge and expertise in terms of the efficient use of required resources, he has to ensure the achievement of predetermined objectives of cost, time, and quality. To make sure of these objectives, he has to decide which construction methods are appropriate for cost effective scheduling. He has to discuss architectural and engineering drawings with design engineers to effectively plan and harmonize every facet of the project. This may include preparation and use of complicated flow charts and bar charts, and various graphs for data representation. Nowadays, project managers use computers to analyze, conceptualize and implement plans and designs.

The construction project manager has to plan a logical, phase wise implementation of the project, assigning predetermined timeframes for the completion of each phase. He has to take all measures to see that the time frame is adhered to.

These days, there is a great demand for people with a good academic foundation in the field of construction management. Employers generally prefer a degree in construction science, with special focus on the management aspect. It is a four-year degree course offered by over 120 colleges in the country.

Coursework for a degree in construction science is very comprehensive. Some of the subjects covered would be engineering and architectural sciences, mathematics, statistics, computer science, project control and development, site planning, building design, construction methods, construction materials, value analysis, cost estimating, contract administration, building codes and standards and inspection procedures.

The American Institute of Constructors (AIC) and the Construction Management Association of America (CMAA) also give certification after written examinations and verification of education. The AIC awards the Associate Constructor (AC) and Certified Professional Constructor (CPC) designations and the CMAA awards the Certified Construction Manager (CMM) designation.

There are better job prospects for candidates with work experience. The preference in the job market is for academically qualified people who have undergone internships and worked in the construction industry. They should be well versed in building technology.

The development of a construction plan is very much analogous to the development of a good facility design. The planner must weigh the costs and reliability of different options while at the same time insuring technical feasibility. Construction planning is more difficult in some ways since the building process is dynamic as the site and the physical facility change over time as construction proceeds. On the other hand, construction operations tend to be fairly standard from one project to another, whereas structural or foundation details might differ considerably from one facility to another.

Forming a good construction plan is an exceptionally challenging problem. There are numerous possible plans available for any given project. While past experience is a good guide to construction planning, each project is likely to have special problems or opportunities that may require considerable ingenuity and creativity to overcome or exploit. Unfortunately, it is quite difficult to provide direct guidance concerning general procedures or strategies to form good plans in all circumstances. There are some recommendations or issues that can be addressed to describe the characteristics of good plans, but this does not necessarily tell a planner how to discover a good plan. However, as in the design process, strategies of decomposition in which planning is divided into subproblems and hierarchical planning in which general activities are repeatably subdivided into more specific tasks can be readily adopted in many cases.

From the standpoint of construction contractors or the construction divisions of large firms, the planning process for construction projects consists of three stages that take place between the moment in which a planner starts the plan for the construction of a facility to the moment in which the evaluation of the final output of the construction process is finished.

The estimate stage involves the development of a cost and duration estimate for the construction of a facility as part of the proposal of a contractor to an owner. It is the stage in which assumptions of resource commitment to the necessary activities to build the facility are made by a planner. A careful and thorough analysis of different conditions imposed by the construction project design and by site characteristics are taken into consideration to determine the best estimate. The success of a contractor depends upon this estimate, not only to obtain a job but also to construct the facility with the highest profit. The planner has to look for the time-cost combination that will allow the contractor to be successful in his commitment. The result of a high estimate would be to lose the job, and the result of a low estimate could be to win the job, but to lose money in the construction process. When changes are done, they should improve the estimate, taking into account not only present effects, but also future outcomes of succeeding activities. It is very seldom the case in which the output of the construction process exactly echoes the estimate offered to the owner.

In the monitoring and control stage of the construction process, the construction manager has to keep constant track of both activities’ durations and ongoing costs. It is misleading to think that if the construction of the facility is on schedule or ahead of schedule, the cost will also be on the estimate or below the estimate, especially if several changes are made. Constant evaluation is necessary until the construction of the facility is complete. When work is finished in the construction process, and information about it is provided to the planner, the third stage of the planning process can begin.

The evaluation stage is the one in which results of the construction process are matched against the estimate. A planner deals with this uncertainty during the estimate stage. Only when the outcome of the construction process is known is he/she able to evaluate the validity of the estimate. It is in this last stage of the planning process that he or she determines if the assumptions were correct. If they were not or if new constraints emerge, he/she should introduce corresponding adjustments in future planning.

Quality control in construction typically involves insuring compliance with minimum standards of material and workmanship in order to insure the performance of the facility according to the design. These minimum standards are contained in the specifications described in the previous section. For the purpose of insuring compliance, random samples and statistical methods are commonly used as the basis for accepting or rejecting work completed and batches of materials. Rejection of a batch is based on non-conformance or violation of the relevant design specifications. Procedures for this quality control practice are described in the following sections.

An implicit assumption in these traditional quality control practices is the notion of an acceptable quality level which is a allowable fraction of defective items. Materials obtained from suppliers or work performed by an organization is inspected and passed as acceptable if the estimated defective percentage is within the acceptable quality level. Problems with materials or goods are corrected after delivery of the product.

In contrast to this traditional approach of quality control is the goal of total quality control. In this system, no defective items are allowed anywhere in the construction process. While the zero defects goal can never be permanently obtained, it provides a goal so that an organization is never satisfied with its quality control program even if defects are reduced by substantial amounts year after year. This concept and approach to quality control was first developed in manufacturing firms in Japan and Europe, but has since spread to many construction companies. The best known formal certification for quality improvement is the International Organization for Standardization’s ISO 9000 standard. ISO 9000 emphasizes good documentation, quality goals and a series of cycles of planning, implementation and review.

Total quality control is a commitment to quality expressed in all parts of an organization and typically involves many elements. Design reviews to insure safe and effective construction procedures are a major element. Other elements include extensive training for personnel, shifting the responsibility for detecting defects from quality control inspectors to workers, and continually maintaining equipment. Worker involvement in improved quality control is often formalized in quality circles in which groups of workers meet regularly to make suggestions for quality improvement. Material suppliers are also required to insure zero defects in delivered goods. Initally, all materials from a supplier are inspected and batches of goods with any defective items are returned. Suppliers with good records can be certified and not subject to complete inspection subsequently.

The traditional microeconomic view of quality control is that there is an “optimum” proportion of defective items. Trying to achieve greater quality than this optimum would substantially increase costs of inspection and reduce worker productivity. However, many companies have found that commitment to total quality control has substantial economic benefits that had been unappreciated in traditional approaches. Expenses associated with inventory, rework, scrap and warranties were reduced. Worker enthusiasm and commitment improved. Customers often appreciated higher quality work and would pay a premium for good quality. As a result, improved quality control became a competitive advantage.

Of course, total quality control is difficult to apply, particular in construction. The unique nature of each facility, the variability in the workforce, the multitude of subcontractors and the cost of making necessary investments in education and procedures make programs of total quality control in construction difficult. Nevertheless, a commitment to improved quality even without endorsing the goal of zero defects can pay real dividends to organizations.

More often than not, an adrenaline powered salesman or account manager comes over the floor and holds a perfect salespitch at 200 miles an hour. His laptop shows brilliant PowerPoint slides, his brochures or flyers are beautiful graphics, he wears an Armani suit and Bolero shoes, his hair is ready for cosmetic commercials and his teeth throw stars into the boardroom.

But yet the prospect remains uninterested and the end result is zero sales. So what goes wrong?

All of us sell things all the time. From a child asking mom for a cookie to the CEO of a major corporation trying to ink a million dollar order, each of us sells. We sell our ideas and beliefs to co-workers, third party, bosses and family. We sell products, services, and concepts.

But selling something is not so much selling that something as selling your self, so to speak. The customer of course is interested in the product, however, equally or more in the trustworthiness of the seller.

Here are three surprisingly simple ways to sell anything. The key factor is to stay HUMAN. Just behave like a human being, not like a salesmachine. You can use them in person, on the telephone, or with email. And you already know all about them!

1: Start a human conversation.

I never realized how effective this super-simple method was until I met Paul. He is able to get an order nearly every time. How does he do it? “Simple. I just talk to people,” he says. It all started early in Paul’s career when he couldn’t seem to sell anything. “I had recently gotten married and just when I really wanted to succeed, no one seemed interested in my sales pitches.”

Sometimes our best ideas come when we’re really discouraged. Paul got so down on his sales techniques, he forgot about it and just started talking with people. Amazingly, they bought. Sales started to trickle, then turned into a flood as Paul became the company’s top sales person for his region.

This is how Paul does it. He starts up a conversation. As soon as you mention something about yourself, he shows a big interest. He talks about whatever you are interested in. He builds up understanding and empathy. I immediately feel like Paul is a friend I’ve known all my life. After twenty to forty minutes, he casually says, “so can we get you set up with an order?” After such a good conversation, 98% of his prospects just say “yes”. Key point is common affinity and communication.

2: Ask genuine questions.

This is a very simple way to sell and it works for both products and services. Most customers don’t know half as much about your product as you do. In fact, most probably they don’t know much at all. Yet it is a rare customer who starts off by saying “I’m a complete idiot on this”.

Ask questions to help customers find the areas where they need more information. They may not even know what areas they want to know more about. Let’s say a customer comes into your computer store and starts looking for a new desktop. Ask questions to find out if the customer is mostly interested in processing speed, reliability, or a popular feature. Ask what frustrates them about their current computer or what they like that they fear losing with a new computer. Find the customer’s main concerns. Then give them as much information about those concerns as they seem interested in having.

This does three things: You eliminate doubts based on lack of information. You show you are an expert ready to help. The customer becomes convinced you are interested in the things that are important to her. Key point here is understanding and reality.

3: Explain in a simple way.

Tell in normal language how your product or service works. Again, most customers don’t really know how the thing they want to buy does what it does. There is so much more you can tell them to enhance the value they get from your product or service. You’re the expert so you know all the applications that the customer hasn’t thought of. You have personal experiences to describe, illustrating unique features and benefits. Once you take time to fully explain how your product or service works, most people are far closer to making a purchase.

At the root of these three methods to sell anything is human contact. These days it is had to get a knowledgeable person on the phone. If you send an email inquiry, you’ll probably get a form letter reply that has little to do with your question. But customers do respond positively when you give them good old-fashioned attention. Start a human conversation, answer questions honestly, and explain clearly. And so you get more customers. You will sell more products and services. Or your ideas, projects and goals!

This concludes a human honest sales technique that anyone can use in daily life at any level. One thing: Be honest! Never tell a lie! And do not sell just hot air! Do not try to sell what you cannot truly deliver. If you are only out for the money at the expense of the customer, sorry, but that is not fair, and in the end it may bounce back to you in one or another way.

Acceptance – Activity Modeling – Analyze Locations, Users, Presentation, Processes and Data – Application Development Projects Guide – Actual Cost of Work Scheduled – Audit Review – Authority to Proceed – Baseline – Budgeted Cost of Work Scheduled – Build Outline Implementation Plan – Build Technology and Database Independent Applications – Business Case – Business Needs – Business Policy and Procedures – Change Management – Choice of Functionality – Class Definitions and Class Specifications – Class Diagrams – Client/Server – Close-out phase – Common User Access – Concept phase – Conducting a User Documentation Inspection – Configuration Management – Consolidation Workshop Protocol – Contingency and Risk – Contract Administration – Contract Management – Contract Guide – Core Team – Corporate Strategy and Product Portfolio – Cost Breakdown Structure – Cost Performance – Current Systems Analysis – Data Flow Diagram – Data Normalization – Defect Tracking – Defining Boundaries – Defining Evaluation Categories – Defining the Content – Defining the Detailed Scope – Definition – Design Infrastructure Architecture – Designing Classes – Designing Data – Designing Inputs and Outputs – Designing Tasks – Detailing the Work Breakdown Structure – Determining Category Weights – Determining Potential Vendors and Products – Develop Infrastructure Specifications – Developing Business Specifications – Developing Initial Vendor Questionnaire Materials – Developing Materials for Detailed Evaluation – Developing Software Modification Analysis – Developing the Package Evaluation Summary – Developing the Task Flow Diagram – Developing the Vendor Solicitation Document – Developing User Documentation Objectives – Developing Vendor Reference Questionnaire Materials – Disaster Plan – Documentation Usability Testing – Earned Value – Economical Value – Encapsulation and Information Hiding – Encapsulation Overview – Entity Modeling – Entity-Relationship Diagram – Error and Fault Management – Establish Background – Establish Implementation Requirements – Estimating Conversion Projects – Estimating Projects – Euro Checklist for Insurance Companies – Evaluating Solutions – Evaluating Package – Evaluating Vendor Bids – Exceptions Management Guide – Fast Track – Financial Management – Fixed Price Contract – Functional Requirements – Fundamental Business Process Modeling – Gantt Chart – Identifying Relationships between Classes – Implementation Approach – Implementation phase – Inspect Infrastructure Specifications – Integration Plan – Intellectual Property Guide – Interview Tips – Interviewing Vendor Reference Users – Inventory Management – Issue Management – IT Impact Analysis – Lessons Learned – Life Cycle – ISO – Logistics Checklist – Matrix Analysis – Messages and Methods – Method Descriptions – Model-View-Controller – Module Decomposition Method – Module Specification – Object Diagrams – Objects and Classes – Operational Test – Organization and People Management – Organization Breakdown Structure – Organizational Impact – Overrun – PERT/CPM – Physical Database Design – Planning and Estimating – Polymorphism – Portfolio Management – Postcontact planning phase – Precendence Diagram Method – Precontact planning phase – Preparing for Definition – Preparing for Designing the Business System – Problem Management – Process Modeling – Process Verification – Program Management – Progress Reviewing – Progress Tracking – Project Completion – Project Control Book – Project Definition – Project Endorsement – Project Identification – Project Office – Project Planning and Scoping – Project Startup – Project Transfer – Proposal Projects – Prototyping – Purchase Orders – Qualifying Vendors – Quality and Conformance – Quality Control and Testing – Quality Management – Questions for Decision Support Systems – Questions for Technical Criteria – Questions for Vendor Criteria – Questions for Workstation Criteria – Reconcile Process Views – Refine Infrastructure Configurations – Resource Management – Responsibility Assignment Matrix – Request for Proposal – Request for Quatation – Return on Investment – Reuse – Reviews – Risk Management – Scheduled Variance – Scoping and Estimating – Safety Plan – Select Infrastructure Components – Sign-Off procedure – Sizing Guideline – Software Plan – Spiral Model – Splitting Fundamental Business Processes – Standard Processes – Startup – State-Transition Diagrams – Statement of Work – Structured Design – Structured Diagrams – Structured Programming – Structuring Phases – Subcontracting Plan – Subdividing Large-Scale Development Projects – Summarizing the Package Evaluations – Supplier Management – System Test – Task Analysis – Task sequence – Team Building – Technical Design – Technical Requirements – Test Case Development – Test plan – Transaction Analysis – Transform Analysis – Transforming Diagrams – Transition Plan – Trends – Triggers – Underrun – Unit Test – Using the Specimen Contract Appendices – Variance – Walk through Major Processes – Work Breakdown Structure – Work Packages – Workflow Business Process Modeling

So, before someone calls himself a Project Manager or a Program Manager, be aware that all of the above should be second nature.

Compensation Reform is an evolving system, and, therefore policies, procedures, practices and processes will emerge throughout the Commonwealth and within the various agencies. As agencies develop their Agency Salary Administration Plans, agency-specific components of Compensation Reform will unfold.

This manual represents the program characteristics of Compensation Reform as they have been developed. DHRM is committed to updating this manual as policies, procedures, laws, federal regulations and trends in compensation management change and to provide consultation and technical assistance to agencies in the administration of this and related publications.

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Equipment quantities
Equipment type—performance and functional specifications:
Throughput
Query and response
Loading
Sequencing
Capacity
Network testing
Transaction-based testing
Load testing
Security requirements
Data integrity requirements
Failure Mode Effect and Criticality Analysis

Software

Functional requirements
Environment
Network and sharing requirements
Specific applications packages
Operating system requirements
Required coding language
Existing software interoperability

Documentation

User manuals
Hardware manuals
Software documentation
Interface control documentation
Configuration control requirements
Life cycle management documentation
Test and Acceptance Plan
Risk Management Plan
Services

Integration:

Cabling
Component matching
Interoperability of system components
Interoperability with existing equipment and network
Continuity checks
Integration testing

Installation:

Site survey requirements
Site preparation
Construction
Security upgrades
Telecommunications access and interface

Training

Required user training
System administrator training
Executive and management training
Training locations
Types of training
Training modes

Technical Requirements

Functional
Usability
Reliability
Installability
Performance
Serviceability
Availability

Schedule Requirements

Other Requirements

Safety
Security
Legal and regulatory
Process (for example, supplier certifications)

STATEMENT OF WORK GUIDELINES

Insert COMPANY’s resources needed for this project, if known, (e.g., MySQL programmers).

Insert Customer’s resources needed for this project, if known, (e.g., Subject Matter Experts).

Define specifically and clearly what is being delivered. This should mirror what is stated in Section 1.0 Project Scope but should provide more details about only the deliverables. If this SOW is for a defined Solution, use the appropriate Solution SOW template to define the Deliverables.

This section must include not only a description of the Deliverables, but milestones for completion, acceptance testing, and payment. Use – and reference – all need to be complete and consistent with one another. If services are to be performed on a time and material basis, state the hourly rates and any other pertinent details.

You must identify any specific items of the Deliverables in which the customer will retain ownership of copyrights as “Custom Deliverables.” Identify these items in detail, indicating module names and version numbers if applicable, and stating whether the ownership extends to source and object code, or to object code only. If the Customer has the right to sublicense or distribute the Deliverables to third parties (which should be the exception, not the rule), state so here. If there are no Custom Deliverables, include the following line: “Custom Deliverables: None.”

Insert the total price. Different payment schedule if appropriate, but be aware of the revenue recognition implications of any changed payment structure. In lieu of stating the amount due, you can attach a Sales and Order record to this Statement of Work and fill in this blank. In any event, it is necessary to have a detailed schedule of when billings will occur – it is acceptable to refer to payment milestones identified.

Note: It will not be possible to recognize revenue for the project until the expiration of this two week period, unless the Customer waives the evaluation period in writing.

STATEMENT OF WORK

Your Name

Project Name

The following constitutes the Statement of Work between COMPANY Corporation (” COMPANY”) and You (”Your name in shortened format”) for contractual services provided to You for the Project Name, and supplements (a) the Master (or “Universal”) Agreement between the parties dated “Master Agreement”), and (b) the Professional Services Addendum between the parties dated (“Addendum”). Neither COMPANY, nor those acting on its behalf, will be liable for any decisions made by You or those acting on your behalf in the development of any systems, products, or software solutions, unless COMPANY accepts such decision in writing.

1.0 PROJECT SCOPE

This document contains details of the plan
.
2.0 TERM

Service delivery will begin on , 20__, (”Start Date”) and is currently estimated to be completed by , 20__, (”End Date”). The Start Date and/or End Date may be delayed due to delays in executing this Statement of Work, availability of required hardware and software, availability of your personnel, or changes to the Project Scope or functional specification. In addition to schedule changes, changes in the Project Scope or functional specification may result in additional charges.

3.0 PERSONNEL

3.1 COMPANY Project Manager – COMPANY will appoint a Project Manager who will be responsible for overall management of COMPANY’s (and COMPANY’s contractors, if any) portion of the project. The Project Manager will work with COMPANY and your personnel to perform project reviews, work with representatives of COMPANY and You to accomplish the tasks outlined in this Statement of Work, manage day-to-day project activities, and serve as COMPANY’s single point of contact with respect to interfacing with You.

3.2 Your Project Manager – You will designate a Project Manager who will be regularly available to meet with You and COMPANY personnel on matters pertaining to this project. This individual will procure, manage and direct your resources as requested by the COMPANY Project Manager and as defined in this Statement of Work. Your Project Manager will serve as your single point of contact when interfacing with COMPANY regarding the project described by this Statement of Work.

3.3 COMPANY Resources – COMPANY will, in its sole discretion, determine the number of personnel, and the appropriate skill sets, necessary to complete this project. COMPANY has identified the following initial resource levels for this project, such levels are subject to change by COMPANY:

3.4 Your Resources – You agrees to appoint the following resources to this Project. You acknowledge that these resources are necessary if the project is to be completed in the time, and for the price, established in this Statement of Work.

4.0 COMPANY’S RESPONSIBILITIES

4.1 COMPANY will perform the services as described in this Statement of Work and its attachments, if any.
4.2 COMPANY will conduct Project Updates with You as defined in Exhibit A, “Project Update/Communications.”
4.3 COMPANY will assign a Project Manager, allocate appropriate resources, and use all commercially reasonable efforts to avoid delay in the schedule.

5.0 YOUR RESPONSIBILITIES

5.1 You will provide COMPANY personnel and third party vendors with safe and reasonable access, working space and facilities, including heat, light, ventilation, electric current and outlets, and local telephone extensions.
5.2 You will provide access to your network(s) and system(s), as necessary, to allow COMPANY to perform the contracted Services.
5.3 You will assign a Project Manager, allocate appropriate resources, and use all commercially reasonable efforts to avoid delay in the schedule.

6.0 DELIVERABLES

The following item(s) will be delivered to You under this Statement of Work:

7.0 PAYMENT SCHEDULE

7.1 The price for products and services to be provided by COMPANY under this Statement of Work will be .
7.2 Unless otherwise agreed in writing, COMPANY will invoice you at the completion of each milestone identified. Charges for services performed on a time and material basis will be invoiced monthly. You will pay all invoices in accordance with the Master Agreement.

8.0 CHANGE CONTROL PROCESS

8.1 The Change Control Process governs changes to the project scope during the life of the project. The purpose of this process is to standardize and optimize the evaluation, testing, and installation of new features and functionality during the project. The process will apply to new components and to enhancements of existing components. The Change Control Process will commence at the start of the project and will continue throughout the project’s duration. Additional procedures and responsibilities may be outlined by the Project Manager, mutually accepted by both the COMPANY and your Project Manager, and included in the baseline project plan.

8.2 A Change Request will be the vehicle for communicating any desired changes to the project. It will describe the change, the reason for the change, and the effect the change may have on the project. The Project Manager of the requesting party will submit a written Change Request to the Project Manager for the other party. The other party will formulate an initial response substantially in the form of Exhibit B-2.

8.3 Both COMPANY and You will review the proposed Change Request and approve it for further study or reject it. The costs for the study, if any, will be agreed upon by both COMPANY and You. If the study is agreed to, both COMPANY and You will sign the Change Request as defined in Exhibit B attached hereto. This approves only the study and its related costs. The results of the study will be used to determine the effect that the implementation of the Change Request will have on the cost and schedule of the project.

8.4 Both COMPANY and You must sign the approval portion of the Change Request to authorize the implementation of any change that affects the Project’s scope, schedule, or price.

9.0 ACCEPTANCE CRITERIA

9.1 Prior to COMPANY delivering services under this Statement of Work, your Project Manager must approve acceptance criteria and testing procedures (“Acceptance Criteria”) which will govern both parties. If payment is to be made as agreed-upon milestones are reached, the Acceptance Criteria will include criteria and procedures applicable to each milestone. If services are being provided on a time and material basis, no Acceptance Criteria shall apply, and the services shall be deemed accepted when performed.

9.2 Deliverables will be considered accepted when each of the objectives in the Acceptance Criteria has been met. Your Project Manager will complete an acceptance form for either interim Milestones or project completion, as appropriate.

9.3 An evaluation period of up to two (2) weeks may be utilized for review and final acceptance of the Deliverables. Deliverables will be considered accepted if You do not reject them prior to the expiration of this period.

10.0 ORDER OF PRECEDENCE

This Statement of Work, together with its exhibits, the Addendum, and the Master Agreement, states all of the rights and responsibilities of, and supersedes all prior oral and written communications, between COMPANY and You regarding this project. In the event of any conflict, the order of precedence shall be (a) exhibits to this Statement of Work; (b) this Statement of Work; (c) the Addendum, and (d) the Master Agreement.
Agreed and Accepted:

You COMPANY Corporation

By: By:

Printed: Printed:

Title: Title:

Date: Date:

EXHIBIT A

PROJECT UPDATE /COMMUNICATIONS
COMPANY and You acknowledge that regular communication among and between the Parties is essential to the Project’s successful completion. The Parties agree that, in addition to normal, day-to-day communication, Project Updates will be held:

twice weekly (insert days of week meetings will be held on
regularly)
weekly, every (insert day of week for regular update)
bi-weekly, every other (insert day of week for regular update)
at: insert start time of regular update
via: on-site meeting held at (insert location)
teleconference, which will be initiated by
.
Expected duration is hours/minutes. Both COMPANY’s and your Project Managers will determine who will participate in regular project updates.

The COMPANY Project Manager will issue minutes of the Project Updates. The minutes will include: attendee list, status of previously opened items, list of new items including person(s) responsible for resolution, and summary of the project’s overall status. Other items will be added as appropriate.

Other meetings, correspondence, etc., will occur as necessary. The regular Project Update is not intended to eliminate or replace any other forms of communication between the Parties.

Use the following outline to prepare a comprehensive Subcontracting Plan.

1.0 OVERVIEW

The Subcontracting Plan explains the overall project approach to using third-party suppliers on the project. Third-party suppliers may provide hardware, perform services, or develop and provide software used in the system. COMPANY responsibility for supplier management is to ensure that all subcontracted elements are fully integrated into the overall system and that they are managed integrally throughout the project.

Explain the project approach to using subcontractors, and generally describe which project elements will be performed by third-party suppliers. Describe generally the process of managing those suppliers.

2.0 PROJECT ELEMENTS TO BE SUBCONTRACTED

Use the WBS to identify which WBS elements will be subcontracted. Describe why those elements will be performed by subcontractors and why COMPANY cannot or should not do the work internally. For each element, discuss the specific requirements for the subcontractor. Provide a schedule showing when subcontracts will be awarded for each element.

3.0 IDENTIFICATION AND SELECTION OF SUBCONTRACTORS

Discuss the process by which subcontractors will be selected. If subcontractors will be competitively selected, identify which COMPANY organizations will be responsible for preparing statements of work and other requirements documentation. Typically, they will be the organizations that have responsibility (shown in the Responsibility Matrix) for the WBS elements being subcontracted.

For each WBS element to be subcontracted, identify the third-party supplier that will perform the work. If that supplier is already known, there is usually no need for a formal procurement procedure.

4.0 SUBCONTRACT MANAGEMENT

4.1 Discuss the overall process for managing the subcontracts. What COMPANY organizations will provide legal and contracting support? Who will be responsible for administering subcontract changes and modifications? Who will review progress and approve payment of supplier invoices?

4.2 As each subcontract is awarded, establish a Subcontract Tracking Summary in a file for that subcontract. Use the summary to record the progress of the subcontract throughout its life.

4.3 Assign a Project Team member or organization the responsibility for managing each subcontract. Identify the responsible parties in this section of the Subcontracting Plan, as well as on each Subcontract Tracking Summary.

5.0 SUPPLIER PARTICIPATION IN PROJECT MANAGEMENT

Discuss the level of supplier participation in the project management process. Some suppliers may be responsible for major portions of the project. If this is the case, there should be a representative from those suppliers on the Project Steering Committee to facilitate project control and communication. Discuss supplier input to the project management information system. Discuss the level of reporting required from suppliers, and ensure that the input and reports are listed as contractual requirements in the subcontracts.

Use the following outline to prepare a comprehensive Customer Relations Plan.

1.0 PROJECT SCOPE

In this section, insert the project Scope Statement, or provide a brief summary of the project, including a description of work to be accomplished, the customer’s goals and objectives for the project, a high-level description of how goals will be met, and other pertinent information.

2.0 CUSTOMER ACTIVITY PHASES

The customer activity phases should build upon each other. Particular attention should be paid to the transition points between phases, when responsibility for primary project contact changes.

2.1 Precontract Phase. Immediately after the decision is made to proceed with a proposal to close on the sales opportunity, the Project Manager and the Solution Sales Specialist (or Services Sales consultant) draft an initial Customer Relations Plan covering precontract planning, postcontract planning, implementation, and life cycle management (LCM).

Identify a member of the Project Team, ideally the Project Manager, to develop and track progress against the building of a sound, mutually beneficial customer/supplier relationship to support the project. This responsibility should be shared by an appropriate member of the Customer Sales Team.

Insert names and contact information for identified Project Team and Customer Sales Team representatives.

2.2 Postcontract Phase. Major contact activities include conducting a customer kickoff meeting and finalizing the baseline Project Plan.
Insert description of responsibilities and procedures for customer contact during this phase. Include frequency of formal meetings, process for calling ad hoc meetings, and guidelines and contacts for casual interactions.
Insert contact information for major customer contacts during this phase.

2.3 Implementation Phase. Insert description of responsibilities and procedures for customer contact during this phase. Major contact activities include managing changes to the project, preparing and installing customer sites, training customer personnel, and performing customer testing and acceptance procedures. Include frequency of formal meetings, process for calling ad hoc meetings, and guidelines and contacts for casual interactions.
Insert contact information for major customer contacts during this phase.

2.4 Close-Out Phase. Insert description of responsibilities and procedures for customer contact during Close-Out. Major contact activities include transitioning, satisfaction review, follow-up, and monitoring of process development

2.5 Life Cycle Management. Insert description of responsibilities and procedures for customer contact during LCM. Every aspect of LCM is centered around customer contact, so this phase presents the greatest opportunity for nurturing customer satisfaction and building long-term relations. Include frequency of formal meetings, process for calling ad hoc meetings, and guidelines and contacts for casual interactions.
Insert contact information for major customer contacts during this phase.

3.0 SCHEDULE

Insert major milestones and target dates for formal customer contact throughout the project.

Description:

Global (or multinational) projects are inherently more complex than single-country engagements. The Project Manager must interface with more stakeholders and manage more complex plans, risks, and logistics than in a typical project.

Project Participants – Roles and Responsibilities:

The PM should ensure these groups are represented on their planning team, and that roles and responsibilities are clearly defined. The following section will outline some additional planning activities supported by these team members.

Global Account Management Consultants (GAM) from the Business Units GAM function

Support discovery of the customer’s global business requirements
Provide global business consultation and account planning support
Analyze projects and recommend appropriate transaction structure
Engage areas resources to support global opportunity
Monitor implementation of global opportunities
Act as an escalation point
Contract Managers (CM) / Law
Assist in developing an appropriate Statement of Work
Source expertise regarding disparate legal systems or contract content from the various participating countries
Review and help negotiate contract terms and conditions in the

Master Agreement and addenda

Corporate Tax
Ensures VAT is properly addressed in the plans
Manage Permanent Establishment (PE) risk
Export Compliance
Validate compliance of proposed import/export transactions
WCS Account Support Manager
Develops the global Account Support Plan and represents WCS

Worldwide Field Operations (WFO) retains responsibility in the following areas. The GAM Consultant will help the PM identify a WFO representative to participate in risk assessment and planning for:

Assigning a Global Customer Identifier
Compensation
Contract Management
Order Processing
Invoicing
Global Selling Fee

Additional Project Management Considerations by TSP Phase:

Account Planning:

The GAM Consultant works with the Account Director to develop a Global Account Plan and get the project properly entered into the Global Account Management processes. The PM may participate, but in any case they should obtain account planning information at the beginning of Opportunity Qualification activities.
The GAM Consultant maintains current knowledge about COMPANY’s process and capabilities, and serves as an SME to the account and project team.

Opportunity Qualification:

All multinational projects are ‘complex’, and therefore require a PM to engage early in this TSP phase.

The PM identifies additional sources of project information, including:
Integrated Account Planning Global Account Addendum
Holden ValuGuide
Customized Global Customer Requirements Questionnaire
Global Virtual Account Team composition plan
Global Opportunity Profile

The PM works with the GAM Consultant to identify appropriate members for a planning team, including sales and PM functions in the home and destination countries. They may include PS Project Managers, WCS PMs, or Implementation Coordinators, depending on project content and complexity.

The PM understands how the GAM Consultant and SSS have classified the opportunity according to an accepted Global Transaction Model. The PM considers the proposed activities, responsibilities and risk for:

Order management
Invoice generation and management
non-standard shipping and logistics
Staging
Import /export
Third parties involved in import or export process

The PM engages the entire team in the Risk Assessment. Refer to the list at the end of this document to help identify common risk events observed in multinational projects, and ensure mitigation strategies exist for each.
Support Global Bid Review as a member of the Bid Team

Project Plan / Proposal Development:

The PM leads the team in developing the WBS and preliminary project plan. This plan includes specific and unique logistics, order and billing activities resulting driven from the Global Transaction Model.

The PM solicits plan input from project management resources in each destination country, including WBS, risk, schedule and budget input.

Contract / Order Management Phase:

The PM must engage a Contract Manager to review the SOW, Master Agreement and Multinational/transactional Addendum. They ensure the contract addresses items such as:

Participating Affiliates – list, performance guarantee
Pricing – price changed, freight, duties, taxes
Orders — location
Invoicing and Payment – frequency, currency, location
Warranty
Dispute Resolution — Arbitration

Delivery / Installation Phase:

The PM ensures WFO-Operations Services has a process for administering all orders. This varies by transaction model, but typically involves the SSS forwarding orders to their counterparts in destination countries for processing. The GAM consultant can help validate the process, and further supports order processing by providing a Global Project and Pricing Notification letter.

The PM ensures their team creates a Global Installation Guide. Preliminary material should be provided throughout planning phases, and the final version distributed prior to implementation. The PM ensures each country has complete instructions for installation.

The PM establishes status tracking, and validates local resources are dispatched for the installation according to the project plan, and maintains the consolidated project implementation status.

If appropriate, the PM communicates with Corporate Tax regarding Permanent Establishment risk if goods are being staged in an intermediate country.

The PM ensures the ASM is appropriately transferring Warranty credits as appropriate.

The PM obtains documented customer acceptance from each country.

The PM notifies WFO-Operations Services to prepare invoices in each destination country. The manage special provisions to aggregate and forward the invoices to a named COMPANY contact if central billing is required by the customer.

Invoicing / Customer Satisfaction Phase:

The PM ensures invoices are issued and forwarded to the appropriate parties.

OPPORTUNITY OVERVIEW

The following indicates the required components of the opportunity overview. Some components may already be provided by another sales opportunity analysis process. The project manager need not duplicate this information but should participate in or at least review the results of any other processes.

Customer Sales Team Information

Customer Information

COMPANY Relative Account Position

Customer Opportunity Information

Key Milestone Dates

Existing Customer Environment

Sales Opportunity

Third-Party Product Requirements

Solution Implementation Rollout Requirements

Opportunity Issues and Risks

CUSTOMER REQUIREMENTS

Customer business requirements

Customer technical requirements

Customer schedule requirements

Customer contractual requirements

Customer specified Third-party requirements

Has a Request For Proposal or Request For Quotation been issued? Made available to the Project Manager/Planning Team?

SCOPE STATEMENT

The Scope Statement should completely but concisely describe the project and, at a minimum, address the following elements:

Customer identification

Description of the customer business need

Overview of the COMPANY approach to meeting the customer business need, including the following:

A description of the hardware to be used in the solution
A synopsis of the software to be used
Identification of any services to be provided as part of the solution

Discussion of how the COMPANY proposed solution meets the customer business need and how that solution fits in with the overall customer business strategy

Identification of the COMPANY organizations that will participate in planning for the project

Identification of the third-party organizations that will participate in planning for this project

Identification of the COMPANY project sponsor or owner

Statement of the time frame in which the project will be implemented

An estimate of total project price or cost

PROJECT QUALIFICATION REPORT

Customer Opportunity Overview
COMPANY Sales Revenue Opportunity Estimate
Risk Identification
Preliminary Project Schedule
Estimated COMPANY Cost to Respond (IDENTIFY PLANNING RESOURCE NEEDS)
Summary and Recommendations

1. Map all available elements of the WBS into the matrix.

2. Analyze each WBS element to determine which roles apply. Identify the role responsible for the element, as well as all those providing support.

3. For each WBS element, identify by name (or by organization if an individual is not assigned) the team members and their roles with respect to the WBS element.

4. After all WBS elements are analyzed, review the matrix for unidentified resources and roles.

5. Repeat Steps 1 through 4 for each level of detail added to the WBS down to the work package level.

6. Review and update the matrix with the Project Team members and the management of all organizations providing project resources.

7. Obtain resource commitments from appropriate functional organizations for the identified resources and roles. Use the Staffing Plan or Document of Understanding to secure agreement on specific deliverables and schedule. Add the resource identification to the matrix, and to your project plan.

There are several tools appropriate for developing the Responsibility Matrix. For example, MS Word or Excel may be used to construct a table, and the tasks and resources can be added manually.

Alternatively, the PM may choose to simply use their cost/schedule control tool (ex. MS Project, Primavera, WSDM, etc.). By entering the WBS and resources by task, the PM can generate ‘who does what, when’ reports which convey the same information as the matrix, and which are tightly coupled with their project WBS and schedule.

The Project Opportunity and Risk Assessment is designed to support the assessment of project viability before committing the resources required to develop a Project Plan and customer proposal. It is to be completed by the sales representative closest to the customer project under evaluation, with the concurrence of the Project Management organization or equivalent.

The model provides a high-level, “first pass” evaluation of the risks associated with a project. It will help the Customer Sales Team and management determine which opportunities to concentrate on and which risks must be managed to ensure project success. It is meant to provide guidance and assistance in making a bid/no bid decision.
Note: If the Customer Sales Team completes this analysis as part of another process, the Project Manager need not duplicate it here. The Project Manager should instead participate in that analysis and ensure all risks are identified for inclusion in the Project Qualification Report (PQR).

The Process

The process for assessing the opportunity and risk using the Project Opportunity and Risk Assessment involves three basic steps:

Evaluating the opportunity. A series of ten questions on Opportunity Analysis are to be answered, with a score for each to be calculated. The questions have been weighted on a scale of 1 (low weight) to 5 (high weight) in terms of their relative importance to each other. This score is calculated by multiplying the raw score (Opportunity Factor (O)) by the pre-established weight value (W). After each question has been scored, a total opportunity score is calculated by adding the individual question scores. The total is then entered in the space provided for the Total Opportunity Analysis Score.10).

Evaluating the risk.

A series of eleven questions on Risk Analysis are to be answered, with a score for each to be calculated. The score is calculated by multiplying the raw score (Risk Factor (R)) by the pre-established weight value (W). The total risk score is then calculated and entered in the space provided for the Total Risk Analysis Score.

Mapping the opportunity and risk scores to the model.

The total scores for opportunity and risk are plotted on the matrix provided within the model. The location of this score on the matrix helps determine the quality of an opportunity and indicates the level of risk to be managed to ensure project success.

Timing

The questions provided in this tool can be applied to a project at any time during the sales cycle before issuing a proposal to the customer. However, the complete process is intended to be used primarily when the project requirements are defined with such detail that the customer could issue a request for proposal (RFP) or similar instrument. The process may be especially helpful when evaluating an unsolicited RFP. The model has been designed to be completed by a Core Team within a few hours.

Interpreting the Results

After the scores have been mapped on the model’s matrix, the Customer Sales Team and the Project Manager or equivalent can determine the next appropriate step. Normally, a meeting with management is held to review the opportunity.

This meeting should include management representation from each organization that would perform a detailed assessment, develop a Project Plan, and provide input to the customer proposal. These same organizations will ultimately be responsible for project execution if the bid is won.

If the project assessment is unfavorable, the Customer Sales Team, in conjunction with the Project Manager or equivalent, may search for ways to improve the opportunity and/or reduce the risk before presenting the opportunity to management. Alternatively, the Customer Sales Team, with concurrence from the Project Manager or equivalent (and management as appropriate), may conclude the opportunity should be declined.

Use the following outline to prepare a comprehensive Risk Management Plan:

1.0 PROJECT SCOPE

Insert the Scope Statement, or provide a brief summary of the project, including a description of the work to be accomplished, a description of the customer’s goals and objectives for the project, a general description of how the project will be accomplished, and other pertinent information that will provide a good overview of the project.

2.0 RISK EVENT DESCRIPTIONS AND EVENTS

Determine the business and financial risks of the project, and, for each element of the WBS, identify any major risks involved in that element. Complete Risk Event Description and Risk Event Results. Reference or include a copy of the WBS in this section. The process is carried out as follows:

2.1 Identify Risks.

Identify business and financial risks associated with the project. For each element of the WBS, identify any major risks associated with that element. For more information on risk identification, refer to the guide Risk Management. Complete a Risk Event Description form for each risk event identified, or use another method of documentation.

2.2 Analyze Risks and Calculate the Weighted Cost Impact.

In analyzing the risks, make the assumption that the risk event identified will occur. Think in terms of the remedial activity that will need to take place to rectify the occurrence of the risk event. Using the same guidelines used in calculating the cost of the WBS elements, calculate the rectification cost (impact) without any form of “padding” or risk adjustment. Analyze the risk event and apply a weighting to the impact on a scale of 1 through 5 as follows:

Weight 1: Has little potential to cause disruption of schedule, costs, or performance (quality). Increase the impact by 5 percent.
Weight 2: May cause minor disruption of schedule, costs, or performance (quality). Increase the impact by 10 percent.
Weight 3: May cause some disruption of schedule, costs, or performance (quality). Increase the impact by 15 percent.
Weight 4: May cause major disruption of schedule, costs, or performance (quality). Increase the impact by 20 percent.
Weight 5: Could cause significant serious disruption of schedule, costs, or performance (quality). Increase impact by 25 percent.

Finally, estimate the probability of the event occurring as a percentage (between 0.01 and 0.99), and calculate the weighted cost impact as follows:

(Cost Impact + Cost Impact Increase) x Probability of Occurrence = Weighted Cost Impact
Example: For a risk event with an estimated cost impact of $2,750, a weight of 4, and probability of occurrence at 85 percent:

($2,750 + $550) x 0.85 = $2,805

2.3 Identify High-Risk Events. If a specific risk event has greater than 75 percent probability and/or the weighted cost impact is greater than 10 percent of the total project cost, the risk event is by definition a high-risk event. For each high-risk event, create a separate and unique WBS element that identifies the work required and the weighted cost impact required to rectify the occurrence of the high-risk event. This WBS element must be flagged as a high-risk event element as distinct from a normal WBS element.

2.4 Develop Mitigation Strategies. Determine potential strategies for mitigating the risk—either avoiding it, controlling it, or transferring it to another party. Assuming the risk consequences is also a potential mitigation strategy, but it is the least desirable. Evaluate the potential cost impact of the mitigation strategy and reflect that impact in the risk budget.

2.5 Establish the Risk Budget. Each high-risk event will become a line item in the risk budget. The other risk events should be accumulated and used to establish the managerial reserve. An amount for contingency, or those events and circumstances not anticipated in any way, should be calculated based on experience. These amounts together become the risk budget portion of the Project Budget. The risk budget should be margined at the same rate as the Project Budget to establish the budget at selling price. This then is presented to the customer in the proposal as the project price.

3.0 RISK REASSESSMENT PLAN

Identify the major reassessment points for this project, and ensure that those reassessment points are identified in the Project Plan. At minimum, high-risk events should be reassessed at the following times:

Whenever major changes occur in the project or its environment
Before major decision milestones
Periodically, according to a predetermined schedule

4.0 RISK MANAGEMENT TIMETABLE

Indicate the timetable for risk management activities. Ensure that the key events are also reflected on the Project Schedule. Major milestones include the following:

Completion of risk identification and analysis
Risk prioritization
Completion of mitigation strategy development
Incorporation into Project Plan and WBS
Key reassessment points
Documentation of risk results

client supplied info. (P&ID’S)

basic design data and description

basic process design
basic process engineering
studies
economic evaluations
process description
equipment lists
design basis
utilities and chemicals summaries
performance guarantees

flow schemes and balances

heat and material balances
material selection flow schemes
pressure temperature profiles
process safeguarding flow schemes
P&IDs
PFDs
UDDs
utility flow diagrams
utility balances
utility networks

data sheets

all equipment
instrument process data
relieve valve process data
laboratory instrument data
process sketches equipment./critical piping

calculations and ratings

pumps/compressors
safety valve capacity
safety valve piping
sizing process lines
tray calculations
thermal rating of S&T exchangers
vessels/towers

approvals from process licensor

operating manuals

approvals from process licensor

operating manuals

The document types & hierarchies are :

client supplied info. (P&ID’S)

basic design data and description

basic process design
basic process engineering
studies
economic evaluations
process description
equipment lists
design basis
utilities and chemicals summaries
performance guarantees

flow schemes and balances

heat and material balances
material selection flow schemes
pressure temperature profiles
process safeguarding flow schemes
P&IDs
PFDs
UDDs
utility flow diagrams
utility balances
utility networks

data sheets

all equipment
instrument process data
relieve valve process data
laboratory instrument data
process sketches equipment./critical piping

calculations and ratings

pumps/compressors
safety valve capacity
safety valve piping
sizing process lines
tray calculations
thermal rating of S&T exchangers
vessels/towers

approvals from process licensor

operating manuals

Overall areas of responsibility include :

- Civil/architectural/structural/underground piping/painting/insulation
- Control systems
. instrumentation
. process control
. vessel instrument orientation (to pipe design)
- Electrical
. cathodic protection
. earthing
. lighting
. telecommunications
. power
- Mechanical
. boilers
. fire fighting
. heaters
. noise abatement (from vendor supplied noise data sheets)
. package units (from structural)
. rotating equipment
. solids handling equipment
. stacks
. ventilation/airconditioning
- Pipe design
. interferences with pipe support
. isometrics
. plotplans
- Pipe engineering
. critical isometrics (to process engineering)
. pipe stress
. pipe support (pipe loads & location –> structural)
- Pipe modelling
. from equipment data sheets
. from line tables
. from plot plans
. from pipe specs
. from pipe studies
- Vessels
. heat exchangers
. reactors
. towers
. vessels
.. loading data to civil/structural
.. vessel design
.. vessel support design

Engineering information supply includes :

. analyzer layouts
. bid tabs –> Process – review
. budget vv final expected manhours
. c1 & c2 specifications – issue no, date, status
. cable list
. cathodic protection
. change orders – status
. clip information –> structural steel & pipe support
. control room layouts
. design codes, norms, rules, standards <-- PPEM
. efd symbols <-- Client or Raytheon
. efd list of changes - for detail design
. electric power requirements
. electrical data sheets
. electrical area classification
. electrical tracing
. electronic/electric loop wiring
. equipment list vs process data sheets - consistency
. evaluation - technical
. flare system study <-- Process
. foundation loading information
. in-line instruments - for bids
. instrument process data sheets
. insulation/refractory information
. linetables - reissue with efd's
. load studies
. logic diagrams
. manhour estimate & actuals
. manpower curve
. mechanical equipment --> Licensor – approval
. milestones
. motor data sheets <-- other disciplines
. noise data sheets <-- other disciplines
. nozzle forces/moments/orientation --> Piping
. package units (equipment list)
. painting requirements
. pfd’s <-- Process
. p&id's <-- Process
. piping studies <-- Piping
. plotplans
. pressure & nde testing --> linetable
. pressure/temperature profile
. process data sheets – status
. progress
. pfd – status
. planning – for bids, for purchase – actual vs schedule
. pressure/temperature profile
. process data sheets <-- Process
. progress percentages & milestones --> Proj Mgmt & Ctrls, Cost Ctrl, Eng
. ptp design data
. release schedule – isos
. relief valve requirements
. requisitions –> for purchase & for bids
. tie-in points – vendor packages
. safeguarding documents
. safety equipment <-- Process
. schedule - level-IV --> PEC
. structural drawings <-- Structural
. substation layouts --> Civil
. transformer foundation –> Civil
. vendor drawings – check against engineering documents – approval
. vessel nozzle location & sizes

Key Field name Data-type Format

P Document number Character x(20)
P Document sheet number Numeric 999
P Document sheet ext. revision number Numeric 99
P Document sheet int. revision number Character x(3)
P Document issue status Character x(5)
P Resource code Character x(6)
Date annotation Date 99/99/9999
Description memo

1.2 Approval12 cycle

Key Field name Data-type Format

P Document type Character x(5)
P Document issue status Character x(5)
P Function code Character x(5)
Note: Function is the approver\reviewer assigned
Approval\review description Character x(25)
Date valid from Date 99/99/9999
Date valid until Date 99/99/9999

1.3 Approver\reviewer13

Key Field name Data-type Format

P Document number Character x(20)
P Document sheet number Character X(4)
P Document sheet ext. revision number Numeric 99
P Document sheet int. revision number Character x(3)
P Document issue status Character x(5)
P Resource code Character x(6)
Date approval\review Date 99/99/9999
Approval\review result memo

1.4 Area14

Key Field name Data-type Format

P Project number Numeric 9(5)
P Plant number Numeric 99
P Area code Character x(2)
Area description Character x(40)

1.5 Author15

Key Field name Data-type Format

P Document number Character x(20)
P Document sheet number Character X(4)
P Document sheet ext. revision number Numeric 99
P Document sheet int. revision number Character x(3)

P Resource code Character x(6)
Date modified Date 99/99/9999
Time modified Numeric 99:99:99
Description memo

1.6 Distribution 16

Key Field name Data-type Format

Project number Numeric 9(5)
P Distribution schedule code Character x(5)
P Document type Character x(5)
P Function code Character x(5)
Number of copies Numeric 999
Number of originals Numeric 999
Purpose Character x
Reviewer Y/N Character x
Reduced size Y/N Character x

1.7 Distribution schedule 17

Key Field name Data-type Format

Project number Numeric 9(5)
P Distribution schedule code Character x(5)
P Date valid from Date 99/99/9999
Date valid until Date 99/99/9999

1.8 Document 18

Key Field name Data-type Format

Project number Numeric 9(5)
Document class code Character x(5)
Document type Character x(5)
P Document number Character x(20)
Group code (owner) Character x(5)
Equipment number Character x(16)
Client document number Character x(20)
Area code Character x(2)
Document title Character x(60)
Document subject Character x(60)
Document confidentiality level Character x

Creation date Date 99/99/9999
Creation time Numeric 99:99:99
Resource code (Originator\created by) Character x(6)
Number of sheets Numeric 9(5)

Time spent Numeric 99:99
Percentage complete (AMW) Numeric 999
Milestone percentage Numeric 999
Document sheet prom. delivery date Date 99/99/9999
Scheduled official issue date Date 99/99/9999

Document external revision number Numeric 999
Document external revision date Date 99/99/9999
Document internal revision number Character x(3)
Document internal revision date Date 99/99/9999
Document issue status Character x(5)
Document issue status date Date 99/99/9999
Document issue status description Character x(25)

—————–DMS attributes —————————–
Document template Character x(15)
Document language Character xx
Document subject 1 Character x(60)
Document subject 2 Character x(60)
Reference addressee Character x(60)
Reference sender Character x(20)
Date document heading Date 99/99/9999

Addressee name Character x(40)
Addressee contact Character x(40)
Address
Address streetname Character x(40)
Address zipcode Character x(10)
Address city Character x(30)
Address country code Character xxx
Phone number Character x(25)
Fax number Character x(25)
Telex number Character x(25)
Various DMS purposes field 1 Character x(15)
Various DMS purposes field 2 Character x(15)
Various DMS purposes field 3 Character x(15)
Various DMS purposes field 4 Character x(15)
Various DMS purposes field 5 Character x(15)
Various DMS purposes field 6 Character x(15)
Distribution Character X(4er x(25), Indefinite list

Note: Additional DMS fields may be required for replacement of DMS.

Note: The document number is defined by the numbering logic as defined in the requirements. This means e.g. for drawings
Drawing number
Document prefix Character xx
Document size Character x
Originating office document Character x
P Job number Numeric 99999
P Area code Numeric x(2)
P Document sequence number Numeric 999
P Document id number Character x

Note: Document template refers to the picklist of predefined templates (macros) used to create the document in the right format.

Note: Country code is related to an picklist containing all Country codes (Character xxx) and the related Country names (Character x(35)

Note: The various DMS purposes fields are ‘general datafields’ which must be filled with specific data depending on the document template that will be used.

1.9 Document class19

Key Field name Data-type Format

Project number Numeric 9(5)
P Document class code Character x(5)
Subclass code Character x(5)
(Document class code (subclass of))
Document numbering logic Numeric 99

1.10 Document numbering logic110

Key Field name Data-type Format

P Document numbering logic Numeric 99
Description numbering system Character x(25)

Note: All attributes should be added here, relevant for the described numbering systems. This means a.o. that
-all components of the document numbers must be identified
-per components the picklist, numbering sequences etc must be identified

1.11 Document relation111

Key Field name Data-type Format

P Document relation code Character xx
P Document number (has relations with) Character x(20)
P Document number (is related to) Character x(20)
Date valid from Date 99/99/9999
Date valid until Date 99/99/9999
1.12 Document relation type112

Key Field name Data-type Format

P Document relation code Character xx
Document relation description Character x(25)

1.13 Document representation113

Key Field name Data-type Format

P Document number Character x(20)
P Document sheet number Character X(4)
P Document sheet ext. revision number Numeric 99
P Document sheet int. revision number Character x(3)
P Document issue status Character x(5)
P Document representation type Character x
P Location Character x(20)
File creation date Date 99/99/9999

Note: One document sheet may be available in multiple representations (eg. DWG-file, TIFF file and paper).

1.14 Document representation type114

Key Field name Data-type Format

P Document representation type Character x
Document representation description Character x(25)

1.15 Document sheet 115

Key Field name Data-type Format

P Document number Character x(20)
P Document sheet number Character X(4)
Client sheet number Character X(20)
Document sheet title Character x(60)
Document sheet subject Character x(60)
Document sheet scale Character xxxxxx
Document sheet size Character x
Document sheet startdate (AMW) Date 99/99/9999

Document sheet prom. delivery date Date 99/99/9999
Scheduled official issue date Date 99/99/9999

1.16 Document sheet revision116

Key Field name Data-type Format

P Document number Character x(20)
P Document sheet number Character X(4)
P Document sheet ext. revision number Numeric 999
Document sheet ext. revision date Date 99/99/9999
P Document sheet int. revision number Character x(3)
Document sheet int. revision date Date 99/99/9999
Document revision description Character x(25)
Note: The document revision description is default filled with the Document status from the latest sheet revision

1.17 Document sheet revision status117

Key Field name Data-type Format

P Document number Character x(20)
P Document sheet number Character X(4)
P Document sheet ext. revision number Numeric 99
P Document sheet int. revision number Character x(3)
P Document issue status Character x(5)
Document issue status date Date 99/99/9999
Document issue status description Character x(25)
Document issue purpose Character x(5)
Milestone percentage Numeric 999
Percentage complete Numeric 999

1.18 Document issue status type118

Key Field name Data-type Format

P Document issue status type Character x(5)
P Document class code Character x(5)
Document status description Character x(25)
Default percentage complete Character x(3)
1.19 Document type119

Key Field name Data-type Format

Project number Numeric 9(5)
P Document class code Character x(5)
P Document type Character x(5)
Document type title Character x(60)
Project filing code Character 99.99.99
Group code Character x(5)
Task category Character x
Document type purpose Indefinite field
Document type contents Indefinite field
Size Character x
Tool to create Character x(10)
Start range doc. sequence nr Character x(4)
Start range doc. sequence nr Character x(4)
Has sheets Y/N Character x
Document retention years Numeric 9(2)

Note: Tool to create describes the tool\software wherein the document is/will be created and may be used to launch the appropriate software.

1.20 Equipment120

Note: The possibility to create a relation between equipment and documents is a future requirement of the EPC
Project.

Key Field name Data-type Format

P Equipment number Character x(16)
Project number Numeric 9(5)
Plant number Numeric 99
Area code Character x(2)
Unit number Numeric x(4)
Equipment description Character x(25)
1.21 Equipment\Document description121

Note: The possibility to create a relation between equipment and documents is a future requirement of the EPC Project.

Key Field name Data-type Format

P Equipment number Character x(16)
P Document number Character x(20)

1.22 Function122

Key Field name Data-type Format

Project number Numeric 99999
Resource code Character x(6)
P Function code Character x(5)
Function description Character x(25)
Valid from date Date 99/99/9999
Valid until date Date 99/99/9999

1.23 Keyword123

Key Field name Data-type Format

P Keyword Character x(25)
1.24 Keyword Document124

Key Field name Data-type Format

P Keyword Character x(25)
P Document number Character x(20)
Resource code Character x(6)
(keyword assigned by)

1.25 Location125

Note: Physical location of a representation of a document (sheet revision status), e.g. vault, directory etc.
Contents\necessity needs to be defined yet.

Key Field name Data-type Format

P Location code Character X(20)
Location description Character x(25)

1.26 Plant126

Key Field name Data-type Format
P Project number Numeric 9(5)
P Plant number Numeric 99
Plant name Character x(15)
Plant description Character x(30)

1.27 Project127

Key Field name Data-type Format

P Project number Numeric 9(5)
Project Name Character x(30)
Project description Character x(100)
Project start date Date 99/99/9999
Project end date Date 99/99/9999

Client name Character x(25)
Project location Character x(15)
Project manager Character x(25)
Project address Character x(40)
Project zipcode Character x(10)
Project city Character x(30)
Project Country Character x(35)
Project phone number Character x(25)
Project fax number Character x(25)
Project telex number Character x(25)

1.28 Project filing index128

Key Field name Data-type Format

P Project filing index
Group code Character x(5)
Project file number Character xx.xx.xx
Project filing description Character x(25)
Retention period (years) Numeric 99

1.29 Resource129

Note: Synonyms of resource are addressee’s entity, owner, authority entity, originator, author

Key Field name Data-type Format

Group code Character X(5)
P Resource code Character x(6)
Resource name Character x(35)
Resource name initials Character x(5)
Resource name inbetween Character x(6)
Function
Address
Address streetname Character x(40)
Address zipcode Character x(10)
Address city Character x(30)
Address country code Character xxx
Phone number Character x(25)
Fax number Character x(25)
Telex number Character x(25)
Location
Roomnumber Character x(5)
Extension number Numeric 9999

Note: Country code is related to an picklist containing all Country codes (Character xxx) and the related Country names (Character x(35)

1.30 Resource group130

Note Synonyms : addressee’s entity
owner
authority entity
department\section

Key Field name Data-type Format

P Group code Character X(5)
(syn: department number, client number, addressee number)
Group name Character x(40)
Group description Character x(40)

1.31 Transmittal131

Key Field name Data-type Format

P Transmittal number Character x(15)

Transmittal type Character x
Note: Transmittal types can be internal, external etc
Resource code (transmitted by) Character x(6)
Transmittal issue date Date 99/99/9999
Response period (in days) Numeric 999
Date transmittal received by client Date 99/99/9999
Date transmittal acknowl. received by lc Date 99/99/9999
Date response received Date 99/99/9999
Internal copy to Character x(40)
——————Specific FDCS data—————————–
Confirmation copy received Y/N Character x
Location stored copy transmittal letter Character x(20)
Reference id previous received letter Character x(32)
——————Specific DRR data——————————
DRR number Character x(15)

1.32 Transmitted to132

Key Field name Data-type Format

P Transmittal number Character x(15)
P Resource code (transmitted to) Character x(6)
P Document number Character x(20)
P Document sheet number Character X(4)
P Document sheet ext. revision number Numeric 99
P Document sheet int. revision number Character x(3)
P Document issue status Character x(5)
Number of originals Numeric 999
Number of copies Numeric 999
Purpose of distribution Character x
Reduced size Y/N Character x
DRR-route number Numeric 99

1.33 Unit133

Key Field name Data-type Format
P Project number Numeric 9(5)
P Plant number Numeric 99
P Area code Character x(2)
P Unit number Character x(4)
Unit description Character x(40)

ACCEPTANCE
[R] An act of acknowledging that an activity or item has been reviewed per established requirements without noting any non­-approved nonconformances. Acceptance does not imply assumption of responsibilities, endorsing or adding positive authorization.

ACCEPTANCE CRITERIA

[R] A limit is placed on the variation permit­ted in the characteristics of an item expressed in definitive engineering terms such as dimensional tolerances, chemical composition limits, density and size of defect, temperature ranges, time limits, operating parameters and other similar characteristics.

ACCOUNT CODE (See also CODE OF ACCOUNTS)
[B] The code of accounts enables estimating, charging, reporting and forecasting items of equipment, materials, subcontract and labor cost. The individual account codes should break costs down into many small pieces, but without creating excessive and confusing detail.
For each category of equipment, material and service, the approved bidders list is set up by code of accounts. Thus for each object (deliverable) of work, it is recorded which suppliers are on the list, regardless for which project.

[A] The code of account identifies the object of the work, i.e. the type of deliverable. The code of account is the link between WBS( Work Breakdown Structure), OBS (Organization Breakdown Structure), CBS (Cost Breakdown Structure), PDS (Plant Data Structure), and enables to control a project on costs.
The code of account, being the universal link, can be used in identifying WBS elements (for example to identify an activity), OBS elements (for example to determine who delivers what), CBS elements (for example to identify the level of cost consolidation) and PDS elements (for example to link materials with cost and budget).

[B] Code of accounts is applied for
- tagging and identification of equipment and material
- numbering of technical documents, specs, data sheets, drawings, requisitions and purchase orders
- procurement commodity codes
- scheduling activities in E, P, C
- estimating equipment, materials and services
- recording manhours on timesheets in the field and in the home office
- recording project scope changes
- project accounting and invoices
- project cost and progress reporting
- project document filing

ACCURACY
[R] Distinguisehd from precision, the degree of conformity of a measured or calculated value to some recognized stan­dard or specified value. This concept involves the systematic error of an opera­tion, which is seldom negligible

ACTIVITY
[W][A] Predefined series of actions, having a start, a duration, an end and predefined deliverables, using human, financial or other necessary means.
[A] Action through time, having a start and an end, normally resulting into a predefined deliverable.
[D] Predefined series of actions, using human, financial or other means.
[S] A certain level in a work breakdown structure.
[P] Task, function or decision that requires work and consumes time.
[A] To an activity is assigned resources. Resources cost money. An activity results into deliverables. Deliverables cost money. The total project budget minus the total money spent (cost) is profit (if greater than zero) or loss (if less than zero)
[A] The owner of an activity is responsible for that activity from beginning till end.
All resources working on a specific activity must book on that activity account, even though the resources may be from different organizational units or disciplines.
[O] An activity should basically be identified by the intersection of WBS, OBS and CBS.

ACTIVITY BREAKDOWN
[B] Structuring of an activity into smaller activities, and possibly again these smaller activities into smaller ones.

ACTIVITY CLASS
[M] Same as ‘task category’. It bundles certain activities with common characteristics (user defined) together in that the activity class or task category specifies the kind of work.

ACTIVITY LEVEL(S)
[A] For example : Project, job, activity class (=task category), activity.

ACTIVITY REMARK
[S] Commentary text related with the activity.

ACTUAL COST OF WORK PERFORMED (= ACWP)
[S] The cost of the completed portion of tasks based on ACTUAL USAGE.
[B] The costs actually incurred and applied or distributed in accomplishing the work performed within a given time period.
[A] The ACWP consists of the direct and indirect costs applicable to the contract.
[M] The cost actually incurred for the work accomplished during a specific timeperiod (current period) or accumulated up to a certain point in time (cumulative to date).

ACTUAL PERCENT SPENT
[M] Percent of total budget actually spent on the task or activity to date.

ACTUAL USAGE
[S] The resource usage expended in completing or partially completing a task (activity).

ADVERSE CONDITION
[R] A condition not conforming to procedures, codes, standards and/or other documents applicable for a project.

ALLOCATED
[M] See also ‘allotted’ and ‘assigned’. To use for a specific purpose, for example to allocate resources to an activity. In earlier PROMISYS documentation, ‘allotted’ and ‘allocated’ are used randomly.

ALLOTTED
[D] Not exactly the same as ‘allocated’ or ‘assigned’. It means to keep or have something for a specific purpose, for example to keep a budget for human resources so that the human resources have the budget.
[P] In earlier PROMISYS documentation, ‘allotted’ and ‘allocated’ are used randomly.

ALLOY
[R] Any material whose P number is three or higher as defined in ASME, Section IX.

ALLOY VERIFICATION
[R] Verification of the presence (qualitative) and if required quantities of specified elements in alloy materials or consumables used in construction of an item using an accepted analyzing method.

ANALYSIS
[B] A separating or breaking up of any whole into parts so as to find out their nature, proportion, function and relationship.
[O] For example : situational analysis – get the picture of the project and zoom into a problem to be solved – what went wrong and why; potential problem spotting – what might happen if.

APPROVAL
[R] Statement that the product, document or service is in accordance with specified requirements.

APPROVED VENDOR LIST
[R] A procurement document prepared by Procure­ment Department, reviewed by Engineering and approved by the Project Manager. This list is the sole basis on which bids are invited.

AREA / UNIT (see also WBS)
[O] Logical part of a plant. For Company, an area may have one or more units.
[A] Company Project Controls tends to consider an area to be the same as a unit because usually area versus unit is one-to-one, hence the use ‘AREA/UNIT’.
[B] There are different kinds of areas :
- Scheduling area, based on geography
- Cost area
A scheduling area can be considered as a project that can be engineered, procured and constructed independently from the next area.
A scheduling area cannot be in more than one cost area. Scheduling areas can be summed up into a cost area. Boundaries for a scheduling area are based on geography and never on systems or accounting codes.
[B] In a WBS the first subdivision of for example a hydrocarbon processing complex may consist of process facilities and offsite facilities.
The second subdivision would be the individual process units and the individual offsite units.
The third subdivision would be a geographical subdivision (area) within each of the units. Thus a unit may have one or more areas.

ASSIGNED
[D] Not exactly the same ‘allotted’ or ‘allocated’. It means either to delegate or to have or to use for a specific purpose.
[S] Project management software packages, such as PMW, use assign in the context of resources and tasks/activities.

AS-BUILT DATA
[R] Documented data that describes the condi­tion actually achieved in a product (ANSI N45.2).

AT COMPLETION VARIANCE (see VARIANCE AT COMPLETION)

AUDIT
[R] A documented activity performed in accor­dance with written procedures or check lists to verify, by examination and evalua­tion of objective evidence, that applicable elements of the quality assurance program have been developed, documented, and effectively implemented in accordance with specified requirements. An audit does not include surveillance or inspection for the purpose of process control or product acceptance (ISO 6215, BS 5882 and ANSI N45.2*) .
Note: The examination and evaluation can cover quality in general, product quality, process quality, as well as quality assur­ance system itself.

AUDITEE
[R] The individual, organization or part of an organization being audited.

AUDITOR
[R] An auditor is any individual who performs any portion of an audit (including lead auditors), who is qualified to perform the audit, who is not necessarily a member of the QA Department (such as technical specialists, and others such as management representatives and auditors in training) and who shall not be directly responsible for the activities being audited.

AUDIT TEAM
[R] One or more auditors, including a Lead Auditor, who are authorized to perform an audit (IAEA-50-SG-QA10).

AUTHORITY
[R] Any recognized body that has legal juris­diction over the design, fabrication, inspection, installation or operation of a facility. The legal jurisdiction may result from either governmental acts or control requirements.

AUTHORIZED
[R] Vested by a person or agency having the power or right to take a decision with said power or right on behalf of Governments, insurance companies with reference to written, legally accepted documents (such as codes, specifications etc.) or whose opinion is accepted or is recognized to be expert on this subject.

AUTHORIZED INSPECTION
[R] Inspection by an authorized inspector to confirm compliance with a legal code.

AUTHORIZED INSPECTION AGENCY
[R] An agency authorized to provide inspection services that confirm compliance with a code. The requirements for this inspection is part of the code as well as the require­ments for authorizing the agency.

AUTHORIZED INSPECTOR
[R] An inspector authorized to confirm compli­ance with a legal code. The authorized inspector must be employed by an authorized inspection agency and qualified as required by the legal code.

BARCHART, HORIZONTAL -
[S] See also ‘Gantt chart’.

BARCHART, VERTICAL -
[O] Same as histogram

BASELINE
[W][B] Snapshot of the original project plan or any subset of it, saved to serve as a reference. It allows comparisons between project progress and earlier estimates. As the project plan proceeds, actuals can be compared against the original plan to determine slippages and variances and to measure performance. The baseline reflects the scope definition, the estimate and the planned schedule.
[S] Project data preserved for later comparison with the current plan.
[O] Only when cost accounts for the entire project are approved, the baseline can be created.

BENCHMARK
[A] Qualitative measurement to see to which extent a goal has been reached.
[D] See also ‘milestone’. Reference point in surveying.

BILLING RATE
[S] The cost of resource usage per unit of measure (hours, days, quantity, etc).

BREAKDOWN
[P] Structure into levels of detail. Breakdowns can be applied to activity, deliverable, resource, cost and possibly budget. Project management software packages, such as PMW, structure a project into phases, activities and tasks.
[W][A] LCV planning & scheduling breakdown levels are :
- PMS project management schedule (level-I)
- POS project overall schedule (level-II)
- PDS project detail schedule (level-III)
- PWS project work schedule (level-IV)
- CWS construction work schedule (also level-IV)

BUDGET (see also PERFORMANCE & FORECASTING)
[A] Budget information for input consists of
- original budget
- approved changes external
- approved changes internal
- pending changes
- estimate to complete (including pending changes)
Budget information output consists of
- revised or current budget
- expected budget
- forecast at completion
- overrun/underrun
- deteriorization/improvement last period (forecast last period minus forecast actual period)
[P] Total number of hours allocated to a project phase called activity.
[P] Is assigned to an organizational unit to execute predefined activities.
[A] Available manhours to be consumed by resources who are working on activities in order to produce deliverables. Budget can also be money available to support deliverables (e.g. services, supplies, etc.), in that for a deliverable to be produced, materials must be purchased which generates cost that must be budgeted.
[P] [for performance = actual performance] MANHOURS FORECAST TO COMPLETE = (ALLOCATED MANHOURS * ACTUAL PERFORMANCE) – ACTUAL MANHOURS.
[P] [for performance = 1:] MANHOURS FORECAST TO COMPLETE = ALLOCATED MANHOURS * ((100 – ACTUAL PHYSICAL PROGRESS) / 100).
[P] [for performance = user defined:] MANHOURS FORECAST TO COMPLETE = (ALLOCATED MANHOURS * USER DEFINED PERFORMANCE) – ACTUAL HOURS.
[P] [for performance = actual performance:] MANHOURS FORECAST AT COMPLETION = ALLOCATED MANHOURS * ACTUAL PERFORMANCE.
[P] [for performance = 1:] MANHOURS FORECAST AT COMPLETION = ALLOCATED MANHOURS * ((100 – ACTUAL PHYSICAL PROGRESS) / 100) + ACTUAL MANHOURS.
[P] [for performance = 1:] MANHOURS FORECAST AT COMPLETION =
ACTUAL MANHOURS + ALLOCATED MANHOURS * (100 – ACTUAL PHYSICAL PROGRESS) / 100.
[P] [for performance = user defined:] MANHOURS FORECAST AT COMPLETION = ALLOCATED MANHOURS * USER DEFINED PERFORMANCE.
[P] REVISED BUDGET = MANHOURS ORIGINAL + MANHOURS CHANGES INTERNAL + MANHOURS CHANGES EXTERNAL.
[A] EXPECTED BUDGET = REVISED BUDGET + MANHOURS CHANGES PENDING.
[A] BUDGET FORECAST AT COMPLETION = MANHOURS ACTUAL + MANHOURS ESTIMATED AT COMPLETION.
[A] BUDGET OVERRUN OR UNDERRUN = FORECAST AT COMPLETION – REVISED (OR CURRENT) BUDGET.
[A] DETERIORATION OR IMPROVEMENT LAST PERIOD = BUDGET FORECAST AT COMPLETION LAST PERIOD – BUDGET FORECAST AT COMPLETION THIS PERIOD.

BUDGET , APPROVED -
[O] Official okay for revised available manhours.
[A] Only based on approved or old budget, prediction should be done, not on unapproved new budget.

BUDGET AT COMPLETION
[S] The total baseline budget of a project.
[A] BUDGET ESTIMATED AT COMPLETION = MANHOURS ACTUAL + MANHOURS ESTIMATED AT COMPLETION.

BUDGET , EXPECTED
[A] EXPECTED BUDGET = REVISED BUDGET + CUMULATIVE PENDING CHANGE ORDER BUDGET.

BUDGET INDEX
[B] BUDGET INDEX = (ACTUAL + FORECAST) / ORIGINAL BUDGET;

BUDGET , ORIGINAL -
[S] Initial estimate (baseline) of available manhours.

BUDGET , REVISED -
[O] New estimate of available manhours. Must be approved prior to be used.
[A] REVISED BUDGET = MANHOURS ORIGINAL + CUMULATED MANHOURS CHANGES INTERNAL + CUMULATED MANHOURS CHANGES EXTERNAL.

BUDGETED COST OF WORK PERFORMED (= BCWP) (see also ACWP)
[S] The cost of the completed portion of tasks/activities based on the baseline usage data. Also called EARNED VALUE.
[B] The value of completed work. It reflects the progress made along the contract plan.
BCWP = BUDGET FOR ALL COMPLETED WORK + COMPLETED PORTIONS OF IN-PROGRESS WORK.
[B] BCWP, when compared with ACWP (actual cost of work performed), indicates whether the progress achieved is worth the money spent.
[A] The BCWP is the earned value, i.e. the planned value of the work accomplished.
[M] Earned value, or the value of work performed during a specific period of time (current period) or accumulated up to a certain time (cumulative to date). BCWP is reported in monetary units

BUDGETED COST OF WORK SCHEDULED (= BCWS)
[S] The baseline value of a defined portion of the project’s BUDGET AT COMPLETION (BAC). This portion is defined as a time period from the PROJECT START DATE up through the PROJECT AS-OF-DATE.
[A] The BCWS is the time-phased budget plan which represents the work plan.
[M]

BULK MATERIALS
[B] For example : civil/foundations, structures, pipes, electrical, instruments, insulation.

BUSINESS OBJECTIVE
[A] The objective that an enterprise wants to realize. Business objectives are supported by one or more business functions.

BUSINESS FUNCTION
[A] The definition of a cluster of work performed by an organization to obtain a certain result or situation, which is defined to entirely or partly accomplish a business objective. The work process in an enterprise can decomposed into independent subprocesses; these are called business functions. Business functions are necessary for realizing the business objectives.
[A] A business function is independent of how the work process in an enterprise is delegated to different organizational units. The decomposition into business functions may or may not be reflected in the organizational units of an enterprise.
[A] Business functions are generally considered more stable than organizational units because the organizational units can be changed at any time. Business functions support, however, business objectives. Therefore, business functions will only change if the business objectives change (e.g. because market demands change).

CALENDAR , GLOBAL -
[S] Record of default holidays and business days applicable to all projects. When creating a new project, the PROJECT CALENDAR starts with the same settings as the GLOBAL CALENDAR, but remains independent from it.

CALENDAR , PROJECT -
[S] Record of default holidays and business days applicable to a specific project. Normally takes the values from the global calendar. Changes can be made, however, independently from the global calendar.

CALENDAR , RESOURCE -
[S] Record of non-standard holidays, other periods of zero-availability, and business days applicable to an individual resource. Normally takes the values from the global calendar.

CALIBRATION
[R] The comparison of two measuring tools or instruments, of which one is a standard with known accuracy and traceable to a higher national or international standard, in order to discover, record and eliminate possible inaccuracy of the measuring tools or instruments which are compared with the standard (NS 5801).

CALIBRATION CERTIFICATE
[R] A document that verifies the accuracy of the instrument or equipment used in testing in accordance with a known standard.

CASH FLOW
[O] Usually cumulated and projected across years. Shows cost (money out) and benefit (money in) during execution of the project.

CBS
[W] Cost breakdown structure, representing the project’s costs of the deliverables, using codes of account

CERTIFICATE OF COMPLIANCE
[R] A written statement, signed by a qualified party, attesting that the items or services are in accordance with specified require­ments and accompanied by additional infor­mation to substantiate the statement (ANSI N45.2).

CERTFICATE OF CONFORMANCE
[R] A written statement, signed by a qualified party, certifying that items or services comply with specific requirements (ANSI N45.2).

CERTFICATION
[R] A written attestation that the applicable specified requirements were met, stating the means of verification (e.g. review, inspection, test, witness), which is signed or stamped and dated by the certifying party. Certifications must identify the purchase order and item(s) covered.

CERTFIFIED
[R] The status of a document for which for construction quali­fied engineers formally attest by signa­ture, that the document fulfills the requirements needed for detailed design, purchase or construction.

CERTIFIED MILL TEST REPORT(CMTR)
[R] A document generated by a vendor specifying the requirements as noted in the Purchase Order documentation or codes and it shall include chemical analysis or mechanical, electrical or dimensional properties. CMTR’s are not acceptable unless conveying the results of testing by an approved independent testing authority. (See also: Verified Certified Mill Test Report).

CERTFIED TEST REPORT
[R] A written and signed document, approved by a qualified party, that contains sufficient data and information to verify the actual properties of items and the actual results of all required tests (ANSI N45.2).

CHANGE NOTICE
[O] Report of deviation from the scope of contract.
[B] Change must be resisted by the project management and only be allowed if it can be proved that the project deliverable will not work without the change and if the change has been fully recorded and authorized by the owner who has accepted the impact upon cost and schedule. A clear distinction between ‘must’ and ‘want’ be made at all times.
Changes have detrimental effect on project performance, such as increasing cost, causing of delay, reducing productivity and worsening of relationships among those involved.

CHANGE ORDER
[O] Deviation, authorized by client and LCV, from the scope of contract.

CHARACTERISTIC
[R] A characteristic is an inherent and measur­able property of an item. Such a property may be electrical, mechanical, thermal, hydraulic, electromagnetic, or nuclear and can be expressed as a value for stated or recognized conditions. A characteristic may also be a set of related values of a property, usually shown in graphical form.

CHART OF ACCOUNTS
[W] representing the overall costs of the company at corporate level
Each country/office should establish a link (relation) between the DETAIL CODE OF ACCOUNT and the CHART OF ACCOUNTS. That is the only practical way to make the EPC contractor worldwide adhere to the headquarters CHART OF ACCOUNTS. This concept is already practiced by most offices. Only, a uniform coding structure cq format should be agreed upon.
Classification, such as for example ‘offshore’ versus ‘onshore’, can be expressed in the value of jobnumber, which eliminates the need for an additional coding element.
The company charts of accounts should reflect the type(s) of business we are in.

CHECK
[R] Verification of conformance to a specified requirement by review or inspection. The checks’ intensity, varying from complete to random sampling, depends on the specified requirements. These requirements will be specified in advance.

CHECKING DESIGN
[R] Is the detailed technical examination of a document to make certain that it is accu­rate and to ensure that all the technical design inputs, design bases and other design criteria have been correctly incor­porated (IAEA-50-SG-QA6).

CHEMICAL ANALYSIS (CA)
[R] A product, check or verification analysis of the semi-finished or finished product, usually for the purpose of determining conformance to the specification require­ments (ASTM-A751).

CLIENT
[O] A legal entity in the market place, to which Company offers full scope EPC Projects or EPC services.
[R] The organization to which the engineering organization has contracted its services to engineer (design and analyze) designated items or systems contract services may also include procurement and construction of the designated items or systems

CODE
[R] A standard which is recommended or imposed by a regulatory body (ISO 6215, BS 5882).
Note: This definition includes “rules” and regulations”.

CODE OF ACCOUNTS
[W] The codes of account structure is usually as follows :

PROJECT xxxxx (not really needed because jobnumbers are unique)
JOB xxxxx
UNIT xx (always 1:1 with area)
MAJOR CODE OF ACCOUNT x
SUB CODE OF ACCOUNT x
DETAIL CODE OF ACCOUNT xx
TYPE OF EXPENSE xxxxx
This is based on the functional layers :
- Project Management using code of accounts (outer layer)
Cost control (inner layer)
versus
Project Accounting (Inner layer)
General Accounting using company chart of accounts (outer layer)
where Cost Control is subpart of Project Management
and Project Accounting is subpart of General Accounting
and where Cost Control and Project Accounting are interrelated as to ‘interface’ Project Management with General Accounting.

The inner layers connect the outer layers, i.e. are interfaces between the outer layers.
Often there are overlaps between the WBS, CBS and OBS, largely caused by the inclusion of organizational elements in the WBS and the CBS; in other words, the structures are not normalized, i.e. not pure.
The things that need to be done first are :
- Normalize/purify the codes of account in a way that there are no dependencies on organization
- Normalize/purify the work breakdown structure in a way that there are no dependencies on organization
Prerequisites are :
- The WBS must reflect purely the work in order to map activities against. The WBS must not have any organizational elements.
- The CBS must reflect purely the cost of deliverables; the CBS should not have any organizational elements.
- The OBS must reflect purely the organization, i.e. organizational resources only.

Once the structures are normalized, i.e. purified, they can be maintained independently from one another and can be related to one another without any overlap.
The new codes of account structure is therefore as follows :
PROJECT xxxxx (not really needed because jobnumbers are unique)
JOB xxxxx
UNIT xx (always 1:1 with area)
MAJOR CODE OF ACCOUNT x
SUB CODE OF ACCOUNT x
DETAIL CODE OF ACCOUNT xx
Company CHART OF ACCOUNTS (format/structure to be determined)

So instead of TYPE OF EXPENSE there will be company CHART OF ACCOUNTS.

The advantages of this structure are :
- there is automatically a relationship between the CBS and the WBS
- because via the RAM the relationship between the OBS and the WBS is established, there is now automatically a relationship between the OBS and the CBS
- because the CBS is related with the company chart fo accounts, there is now automatically a relationship between the OBS and the company CHART OF ACCOUNTS
- and there is automatically a relationship between the WBS and the company CHART OF ACCOUNTS
Thus it has become possible to produce any composite overview, for example
- who (OBS) does what (WBS) against what deliverables costs (CBS)
- how much did the company spend (CHART OF ACCOUNTS) on engineering (OBS)
- how much did the company spend (CHART OF ACCOUNTS) on materials (CBS) for what type of units (WBS)
In order to ensure supporting multi-office projects and corporate finacial consolidation, each country/office should adhere to the same MAJOR CODE OF ACCOUNT and the same SUB CODE OF ACCOUNT, but be free in the way using the DETAIL CODE OF ACCOUNT.
This means that there should be a uniform coding for MAJOR CODE OF ACCOUNT and for SUB CODE OF ACCOUNT world wide.
Each country/office should be responsible for relating the DETAIL CODE OF ACCOUNT with the company CHART OF ACCOUNTS.
As far as it is not the case, the company CHART OF ACCOUNTS should be adapted to reflect EPC business.

COMMISSIONING
[R] The initial testing and start-up process by which a plant is put into operation (ISO 6215*, BS 5882).

COMMODITY
[A] All physical parts of a plant, that are necessary to accomplish and support the operational configuration of all equipment pieces.

COMPETENT PERSON
[R] A competent person is one who would be recognized as competent by those normally engaged in or responsible for similar activities. If the task is one usually entrusted to persons holding qualifications bestowed by, or recognized by, a profes­sional body, he is expected to possess such qualifications, and where experience is normally required in addition to qualifica­tions, he is expected to have had such experience. Similar principles are applica­ble where the individual can be expected to be skilled in a particular trade or other activity.

CONFORMITY
[R] The fulfillment of a specified (see also: Nonconformance) requirement by a quality characteristic of an item or service, the assessment of which does not depend essentially on the passage of time (BS 4778).

CONSTRUCTION PHASE
[R] A period which commences with receipt of items at the construction site and ends when the components and systems are ready for turnover to operations personnel (ANSI N45.2).

CONSTRAINED , TIME -
[S] If an activity or task is time-constrained, it must be finished within a specific amount of time.
3
CONSTRAINED , RESOURCE -
[S] If an activity or task is resource-constrained, it must be finished with the resources that are made available to the task or activity.

CONTINGENCY
[B] A provision for an occurrence dependent on chance, accident or uncertain event.
There are always possibilities of errors due to
- engineering omissions or errors
- cost and rate changes
- construction problems
- schedule slippages
- miscellaneous unforeseens
- estimating inaccuracies
Not all things will go wrong, however, an average contingency could be determined for each account. The total contingency (overall) could be available to the project as a whole.
Problem areas in each account code should be thought of. The average contingency percent decreases at each next stage of the project, for example
- stage 0 initial concept prior to finalization of process design
30 %
- stage 1 bulk materials factored but not priced
20 %
- stage 2 completion of basic engineering, p&ids, plot plans, etc.,and preliminary take-offs with quoted prices
13 %
- stage 3 engineering & design complete with final quantities taken-off and purchase orders placed
8 %
- stage 4 mechanical erection complete
4 %
- stage 5 final completion
0 %

CONTRACT
[R] A document which governs the relationship between client and contractor. Within Badger the following types of contracts are used:
Cost Plus Open Ended
Cost Plus Not to Exceed
Cost Plus Guaranteed Maximum
Cost Plus Fixed Fee
Cost Plus Incentive Fee
Firm Fixed Price
Fixed Price with Reimbursable Expenses
Time and Materials
Time and Materials Open Ended

CONTRACT BUDGET BASE (CBB)
[M] Sum of performance measurement baseline and budgeted management reserve. It is the total dollar amount budgeted for the contract.

CONTRACT DOCUMENTS
[R] All documents incorporated in the contract or subcontract package and/or referred to therein, which forms the whole of the contract or subcontract between Badger and its Contractor.

CONTRACT COST VARIANCE AT COMPLETION
[M] Substraction of the latest revised estimate at completion from the performance measurement baseline.

CONTRACT WORK BREAKDOWN STRUCTURE (CWBS)
[O] The CWBS is critical to effective performance measurement and considerable care needs to be exercised in its preparation.
Integration of the CWBS and OBS at the cost account level may be visualized as a matrix with the functional organizations on one axis and the applicable CWBS elements on the other axis; each organization may then be clearly identified with the work for which it is responsible. Treatment as individual CWBS elements and cost accounts facilitates performance measurement.

CONTRACTOR
[R] Any organization or individual under contract supplying items or services to the client. It may include the terms Supplier, Subcontractor, Fabricator and subtier levels of these where appropriate (ANSI N45.2).

CONTROLLING
[R] The continuous assessment of the most effective use of money, material and resources to maintain a smooth progression towards completion.

CORRECTIVE ACTION
[R] The analysis and implementation of the most effective action to recover or reverseany adverse trend of progress, productivity or cash flow.
[R] Those planned actions taken to ensure that conditions adverse to the achievement of quality requirements are identified and corrected, such as item and equipment malfunctions, deficiencies, deviations, and nonconformances. For significant conditions adverse to quality requirements, the program shall provide that the cause of such conditions be determined and corrective actions taken to prevent repetition (ISO 6215).

COST
[A] Cost can be subdivided into
- cost related to manhours
- cost for materials
- cost for subcontracts
- other cost
Cost predictions are normally channeled to Accounting.

COST ACCOUNT
[B] A project can be broken down into segments to support performance analysis. Such a segment may have one or more work packages. Each cost account is a natural subdivision of the work on a project and should have formally assigned to it the following
- description of the scope of work to be performed
- who is responsible for this work
- the resources required
- a plan, with scheduled starts & finishes
- the work packages that make up (i.e. are below) the cost account
[O] At cost account level, BCWS, BCWP and ACWP are determined.

COST BREAKDOWN STRUCTURE (CBS)
[O] The CBS also includes information about availability and rates of resources.
[O] The cost breakdown structure (cost control structure) is located at the lowest level of the WBS & OBS and its objective is to control the original budget.
The CBS coding structure should be introduced to compare the original budget and the actual costs per work package. The CBS structure depends on the way cost control takes place; for example it can be performed per cost group, cost center or cost element.

COST IN A PROJECT , ELEMENTS OF CAPITAL COST
[B] The following table illustrates typical elements of capital cost proportions in a project :

% of total

LOW
TYPICAL
HIGH
Home office
8
10
12
Equipment
20
30
40
Commodities
25
31
40
Direct labor
15
20
25
Construction indirects
8
9
12

Total

100

COST CENTER
[B] Area of responsibility as it appears in the responsibility matrix.

COST CONTROL
[B] The objective of cost control is to keep the project within budget, which is achieved by early warning on deviations, and the information to take corrective action before costs are out of control.
Cost control refers to costs before, during and after the fact.
The elements of cost control are :
- preliminary estimate must be available at the beginning of design and converted into a preliminary budget
- code of accounts should be prepared so that the cost of each item of equipment, material and labor cost can be estimated, charged and forecasted for the project
- cost trend estimates should include the amount that purchase commitments are over/under budget, and the cost effects of changes in scope, quantities, design criteria and schedule
- definitive estimate should contain the best assessment possible of the effects of inflation; principal uncertainties are construction direct & indirect labor costs and the cost of completing design
- contingency should not be applied as insurance against overrun but rather to cover cost of changes
- management review concerning total definite estimate, contingency and change allowance
- cost forecasting for every account, including those that are under budget
- change orders to be reviewed and approved before implementation; cost effects on each affected code of account should be added to the budget
- schedule monitoring on a monthly basis; activities significant behind schedule will cause increase cost during time.
[B] Cost control is the maintenance of costs within budget by taking corrective actions where necessary, as indicated by the analysis of predicted cost relative to budget.
Cost control is only effective if all personnel involved is cost conscious; for example if a drawing is reviewed, often areas of savings can be found which repeated many times can lead to major savings.
Cost control for Construction seems more evident, because of the physical objects (materials), however, optimization of the design has generally greater impact on the overall project.

COST CONTROL FOR COMMODITIES
[B] Commodity price control can be achieved by :
- Obtain at least 3 competitive quotes; review the market ahead of time to determine which suppliers need work
- Do not issue inquiries until specifications and quantities are firm as to avoid price change after the PO has been placed
- Obtain fixed price quotes or fixed unit prices; do not accept escalation clauses or other price adjustment clauses which cannot be easily monitored
- Do not place orders which are open ended or where the fabricator can invoice to his measurement, in particular for pipe fabrication

COST CONTROL FOR EQUIPMENT
[B] Equipment cost control can be achieved by :
- Do not issue inquiries prematurely; wait until equipment definition is firm so that sellers can bid on definite information
- Obtain competitive bids from at least 3 sellers; search the market ahead of time to determine which vendor shops need work
- Obtain firm price quotations; if escalation clauses are unavoidable, specify an escalation formula which can be monitored and relates to the required delivery
- If attachments may be added or changed, obtain fixed unit prices for these additions prior to placing the PO
- If spares are required, obtain firm price quotations with the bid or before placement of the PO

COST FORECASTING
[B] Final cost can be forecasted for already started individual cost accounts, work breakdown structure items, and organizational cost accounts.
The following elements are used in cost forecasting :
- Performance (index) to date (CPI) = BCWP/ACWP
- Budgeted cost for the remaining work = BAC – BCWP
- Estimate to complete (ETC) = (BAC – BCWP) / CPI
- Forecast cost at completion (EAC) = ACWP + ETC
For the not yet started segments, no forecast can be made, except to take the average overall performance, taking extrapolative forecast as a starting point; for example the CPI for a department involved with a specific cost account can be taken as the initial CPI for that cost account, thus dividing the CPI into the budgeted cost for the remaining work gives the cost forecast for that account.

COST OF WORK PERFORMED (SPI, CPI)
[S] Cumulative actual usage of manhours from the start of the task or activity up to the current project date times billing rate.
[A] MANHOURS COST ESTIMATED AT COMPLETION = {BUDGET} BUDGET FORECAST AT COMPLETION * {RESOURCE} BILLING RATE OF MEMBER ROLE.
[B] COST PERFORMANCE INDEX = BUDGETED COST OF WORK PERFORMED / ACTUAL COST OF WORK PERFORMED;
If CPI (cost performance index) is less than 1, then it can be safely assumed that there is a problem concerning cost.
[M] CPI % = (BCWP / ACWP) * 100; if CPI falls below 100 % then it indicates that less than a dollar’s worth of work was accomplished for every dollar spent.
The CPI is an indicator of spending performance to date and indicates the cost efficiency of a contract or an item as a percentage of the earned value.
[B] SCHEDULED PERFORMANCE INDEX = BUDGETED COST OF WORK PERFORMED / BUDGETED COST OF WORK SCHEDULED;
If SPI (scheduled performance index) is less than 1, then it can be safely assumed that there is a problem concerning budget.
[M] SPI % = (BCWP / BCWS) * 100; if SPI falls below 100 % then it indicates that less work has been accomplished than planned.
[B] If ACWP (actual cost of work performed) is greater than BCWP (budgeted cost of work performed), then CV (cost variance) is less than 0 (zero), thus over cost.
[B] If ACWP (actual cost of work performed) is less than BCWP (budgeted cost of work performed), then CV (cost variance) is greater than 0 (zero), thus under cost.

COST PLUS OPEN ENDED (CPOE)
[R] Cost-plus-open-ended contracts provide for payment of allowable costs plus negotiated burden rates on labour and/or costs, without any funding limitation on expenditures.

COST PLUS NOT TO EXCEED (CPNTE)
[R] Cost-plus-not-to-exceed contracts provide for payment of allowable costs plus negotiated burden rates on labour and/or costs, subject to a limitation on the cumulative expenditures. Contractually, the company is not obliged to incur costs and the customer is not obligated to reimburse the company beyond the estimated funding limit.

COST PLUS GUARANTEED MAXIMUM CPGM)
[R] Cost Plus Guaranteed Maximum price contracts provide for payment of allowable costs plus negotiated burden rates on labour and/or costs up to a ceiling price. The Guaranteed Maximum price differs from a not-to-exceed contract in that completion of the contract is required regardless of cost. Sharing agreements may or may not be part of the contract.

COST PLUS FIXED FEE (CPFF)
[R] Cost-plus-fixed-fee contracts provide for payment of allowable costs plus negotiated burden rates on labour plus a negotiated lump sum fee.

COST PLUS INCENTIVE FEE (CPIF)
[R] Cost-plus-incentive-fee contracts provide for payment of allowable costs plus negotiated burden rates on labour and/or costs plus incentive fee amount based upon specific evaluation criteria.

COST VARIANCE (see also SCHEDULE VARIANCE)
[M] A negative cost variance indicates overspending, i.e. the monetary value of the work accomplished is less than the amount spent.
A positive cost variance indicates cost savings, i.e. less than a dollar was spent to accomplish a dollar’s worth of work.
[A] Cost variance is the difference between the budgeted cost of work performed and the actual cost of work performed. A negative value indicates that costs have exceeded the baseline plan; a positive value indicates cost savings.
[B] A negative cost variance indicates a poor performance.
[B] The cost variance can be graphically shown by S-curves; the cost variance is measured on the Y-axis (cost), the schedule variance on the X-axis (time).
[S] COST VARIANCE = EARNED VALUE – ACTUAL COST;
[B] COST VARIANCE = BUDGETED COST OF WORK PERFORMED – ACTUAL COST OF WORK PERFORMED; i.e. CV = BCWP – ACWP;

COSTS
[B] Costs can be subdivided into :
- Home office costs, such as
. salaries & benefits of personnel (engineering, procurement and supporting services)
. overheads for accommodation, facilities and non-chargeable support staff
. miscellaneous, i.e. reproduction, communications, travel, business expenses, computer time
- Construction costs, such as
. wages & benefits of direct hire construction labor
. salaries & benefits & expenses of construction supervisors
. rental, purchase and maintenance of construction tools & equipment
. provision of temporary construction facilities, buildings, utilities, construction supplies and protection materials
In all major subdivisions, the salaries/wages is the major cost that can be controlled

C/SCSC
[B] Integrated approach to project controls that interrelates the work scope definition, the schedule, the estimate or budget, the physical performance, and the actual expenditure.
Basically it comprises the following steps :
- Define the work, using a WBS
- Define coding and numbering, e.g. WBS levels, organizational units, types of activities, etc.
- Define the organization, using an OBS
- Assign responsibility for execution of the work (WBS)
- Schedule the work
- Prepare estimates/budgets per resource
- Establish performance baselines, i.e. integrate the schedule and the cost elements to create performance baselines for each accountcode in the WBS
- Record actual costs (e.g. by WBS account code, by organizational unit, etc.)
- Measure performance (e.g. manhours, costs, quantities, etc. relative to the estimate or budget)
- Compare planned progress (i.e. budgeted cost of work scheduled [BCWS]), earned value (i.e. physical progress, budgeted cost of work performed [BCWP]), and actual cost (actual cost of work performed [ACWP], obtained from Accounting)
- Monitoring and corrective actions.
[O] Contractors also benefit from management control systems employing the C/SCSC approach for performance measurement. Benefits experienced by contractors are
- improved operational discipline
- integration of budget and schedule plans for performance
- added dimension of earned value
- improved planning
- better communication internally and with the customer
- more detailed and earlier project visibility
- increased cost and schedule awareness at all levels, particularly at the lower management levels
[P] Contractor’s management control should include policies, procedures and methods that are designed to ensure accomplishing the following :
- Organization
. Define all authorized work and related resources to meet the requirements of the contract, using the CWBS framework
. Identify the internal organizational elements and the major subcontractors responsible for accomplishing the authorized work
. provide the CWBS and the OBS to integrate contractor’s planning, scheduling, budgeting, estimating, work authorization and cost accumulation
. Identify managerial positions responsible for controlling overhead (indirect costs)
. Integrate the CWBS with the contractor’s functional OBS in a way that permits cost & schedule performance measurment for contractor WBS & OBS
- Planning & budgeting
. Schedule the work in a way as to describe the sequence of work and to identify the significant task interdependencies required to meet the delivery requirements of the contract
. Identify physical products, milestones, or other indicators that will be used to measure performance
. Establish & maintain a time-phased budget baseline at the cost account level against which performance can be measured; initial budgets established for this purpose will be based on the negotiated target cost; any other amount used for performance measurement purposes must be formally recognized by both the EPC contractor and the client
. Establish budgets for all work with separate identification of cost elements (code of accounts) such as labor, material, etc.
. In case work-packages are applied, establish budgets for this work in terms of dollars, hours or other measurable units
. Provide that the sum of all work-package budgets + planning package budgets within a cost account equals the cost account budget
. Identify relationships of budgets or standards to budgets for work-packages
. Establish overhead budgets for the total costs of each significant organizational component whose expenses will become indirect costs
. Identify management reserves and undistributed budget
. Provide that the contract target cost plus estimated cost of authorized but unpriced work is reconciled with the sum of all internal contract budgets and management reserves
- Accounting
. Record direct costs to be controlled by the general books of account
. Summarize direct costs from cost accounts into the WBS, allocating a single cost account to only one WBS element
. Summarize direct costs from the accounts into the contractor’s functional OBS, allocating a single cost account only to one OBS element
. Record all indirect costs allocated to the contract
. Identify the bases for allocating the cost of apportioned effort
. Identify unit costs, etc, as applicable
. The contractor’s material accounting must provide for
- cost accumulation and assignment of costs to cost accounts in a manner consistent with the budgets
- determination of price variances by comparing planned versus actual commitments
- cost performance measurement at the time most suitable for the category of material involved, but no earlier than the time of actual receipt of material
- determination of cost variances attributable to the over (including excessive usage), short or damage of material
- full accountability for all material purchased for the contract, including the residual inventory
- Analysis
. Identify at cost account level, using data from
- BCWS and BCWP
- BCWP and applied (actual where appropriate) direct costs for the same work
- BAC and EAC
- variances resulting from the above, together with the reasons for significant variances, including technical problems
. Identify budgeted indirect costs, actual indirect costs and variances along with the reasons
. Summarize the above information and associated variances through the OBS and the WBS to the reporting level specified in the contract
. Identify significant differences between planned and actual accomplishments together with the reasons
. Identify managerial actions taken as a result on the above
. Based on performance to date and on estimates of future conditions, develop revised estimates of cost at completion for WBS elements identified in the contract and compare these with the contract budget base and the latest statement of funds requirements reported to the client
- Revisions
. Incorporate contractual changes in a timely manner recording the effects of such changes in budgets and schedules; before negotiations of a change, base such revisions on the amount estimated and budgeted to the functional organizations
. reconcile original budgets for those elements of the WBS identified as priced line items in the contract, and for those elements at the lowest level of the project summary WBS, with current performance measurement budgets in terms of
- changes to the authorized work
- internal replanning in the detail needed by management for effective control

COUNTS (STATISTICS)
[S] TOTAL ACTIVITIES IN PROGRESS SCHEDULED = COUNT ((DATE START SCHEDULED EQUAL OR LESS THAN PERIOD END DATE) AND ((DATE FINISHED SCHEDULED GREATER THAN PERIOD END DATE) OR (DATE FINISHED SCHEDULED EQUAL EMPTY)))

[S] TOTAL ACTIVITIES IN PROGRESS ACTUAL = COUNT ((DATE START ACTUAL EQUAL OR LESS THAN PERIOD END DATE) AND ((DATE FINISHED ACTUAL GREATER THAN PERIOD END DATE) OR (DATE FINISHED ACTUAL EQUAL EMPTY)))

[S] TOTAL ACTIVITIES IN PROGRESS FORECASTED = COUNT ((DATE START FORECASTED EQUAL OR LESS THAN PERIOD END DATE) AND ((DATE FINISHED FORECASTED GREATER THAN PERIOD END DATE) OR (DATE FINISHED FORECASTED EQUAL EMPTY)))

[S] TOTAL ACTIVITIES IN PROGRESS FORECASTED OR SCHEDULED = COUNT (((DATE START FORECASTED OR DATE START SCHEDULED) EQUAL OR LESS THAN PERIOD END DATE) AND ((DATE FINISHED FORECASTED OR DATE FINISHED SCHEDULED) GREATER THAN PERIOD END DATE) OR ((DATE FINISHED FORECASTED OR DATE FINISHED SCHEDULED EQUAL EMPTY)))

[S] TOTAL ACTIVITIES FINISHED SCHEDULED = COUNT (DATE FINISHED SCHEDULED EQUAL OR LESS THAN PERIOD END DATE)

[S] TOTAL ACTIVITIES FINISHED ACTUAL = COUNT (DATE FINISHED ACTUAL EQUAL OR LESS THAN PERIOD END DATE)

[S] TOTAL ACTIVITIES FINISHED FORECASTED = COUNT (DATE FINISHED FORECASTED EQUAL OR LESS THAN PERIOD END DATE)

[S] TOTAL ACTIVITIES FINISHED FORECASTED OR SCHEDULED = COUNT ((DATE FINISHED FORECASTED OR DATE FINISHED SCHEDULED) EQUAL OR LESS THAN PERIOD END DATE)

[S] TOTAL ACTIVITIES ISSUED FOR APPROVAL SCHEDULED = COUNT (DATE FOR APPROVAL SCHEDULED EQUAL OR LESS THAN PERIOD END DATE)

[S] TOTAL ACTIVITIES ISSUED FOR APPROVAL ACTUAL = COUNT (DATE FOR APPROVAL ACTUAL EQUAL OR LESS THAN PERIOD END DATE)

[S] TOTAL ACTIVITIES ISSUED FOR APPROVAL FORECASTED = COUNT (DATE FOR APPROVAL FORECASTED EQUAL OR LESS THAN PERIOD END DATE)

[S] TOTAL ACTIVITIES ISSUED FOR APPROVAL FORECASTED OR SCHEDULED = COUNT ((DATE FOR APPROVAL FORECASTED OR DATE FOR APPROVAL SCHEDULED) EQUAL OR LESS THAN PERIOD END DATE)

[S] TOTAL ACTIVITIES SCHEDULED STARTED BEFORE PERIOD END = COUNT (DATE SCHEDULED EQUAL OR LESS THAN PERIOD END DATE)

[S] TOTAL ACTIVITIES ACTUAL STARTED BEFORE PERIOD END = COUNT (DATE ACTUAL EQUAL OR LESS THAN PERIOD END DATE)

[S] TOTAL ACTIVITIES FORECASTED STARTED BEFORE PERIOD END = COUNT (DATE FORECASTED EQUAL OR LESS THAN PERIOD END DATE)

[S] TOTAL ACTIVITIES FORECASTED OR SCHEDULED STARTED BEFORE PERIOD END = COUNT ((DATE FORECASTED OR DATE SCHEDULED) EQUAL OR LESS THAN PERIOD END DATE))

CPM (CRITICAL PATH METHOD)
[B] CPM PLANNING consists of
- list work activities
- establish sequence and dependence
- create network and test logic
CPM SCHEDULING consists of
- add activity durations and manhours
- check for criticality and float
- allocate manpower
- level uneconomic manpower peaks
- recheck for criticality and float

CTR (COST TIME RESOURCE)
[M] A bundle of tasks or activities with defined deliverables, that has its own budget, schedule and materials.

CRITICAL DEFECT
[R] Defect that judgement and experience indicate is likely to result in hazardous or unsafe conditions for individuals using, maintaining or depending upon the product; or an defect that judgement and experience indicate is likely to prevent performance of the essential functions of a major end item, such as a ship, aircraft, computer, medical equipment or telecommunications satellite (NS 5800, ISO 2859).

CRITICAL PATH
[S] The longest path through the network that defines minimum project time.
[B] The path with the least float, i.e. any delay or expansion of a task or activity on that path lengthens the project duration, regardless the resource constraints.

CRITICAL PATH METHOD (CPM) NETWORK
[B] The methodology or management technique that determines a project’s critical path.

CRITICALLY LATE
[S] When a task/activity has a SCHEDULED END DATE later than the LATE END DATE, the PROJECT END DATE is delayed.

DAC REPORT (from PACS)
[M] Drawing & activity report.

DATA FLOW
[O] A channel through which information goes, for example between processes.

DECOMMISSIONING
[R] The permanent retirement from service of a plant and the work which follows in bring­ing it to a definitive condition (BS 5882*).

DEFECT
[R] The non-fulfillment of intended usage requirements (ISO 8402).

DEFECTIVE MATERIAL
[R] A material or component which has one or more characteristics that do not comply with specified requirements (ANSI N45.2).
Note: “Defective Material” to be read preferably as “Nonconforming Material”.

DELIVERABLE
[A] A measurable result or product of an activity or task. Examples are : drawings, requisitions, subcontract, a trained employee, a schedule, a management summary report, etc.
[B] Predefined, planned output of a project.

DESIGN
[R] The technical and management processes which lead to and include the issuance of design documents such as drawings, specifi­cations and other documents defining technical requirements of structures, systems and equipment.

DESIGN ANALYSIS
[R] Process which uses design inputs and which results in the generation of informa­tion necessary for preparation of design output documents such as drawings, specifi­cations and procedures. Design analyses include calculations (IAEA-50-SG-QA6).

DESIGN BOOK
[R] Provides the design basis of a plant or unit without mechanical details but inclu­sive of operating aspects.

DESIGN CHANGES
[R] Any revision or alteration of the technical requirements defined in, approved and issued, design documents.

DESIGN CRITERIA
[R] The basic data contained in the design documents to which an item shall be de­signed. These data can be requirements of the Client, Badger, authorities, vendors, etc.

DESIGN DOCUMENTS
[R] Drawings, specifications, data sheets, calculations, records, reports, codes, standards and other documents that will be used in design and/or procurement, manufac­ture, fabrication, erection/installation, testing, and examination.

DESIGN INPUT
[R] Those criteria, bases or other design requirements upon which the detailed final design is based.

DESIGN INTERFACE
[R] The boundary between the design related responsibilities and activities of one organization, group, or individual and another organization, group or individual. It includes both the external design interface which is the boundary between different organizations, and the internal design interface, which is the boundary between design units of the same organiza­tion, (IAEA-50-SG-QA6).

DESIGN OUTPUT
[R] Documents such as drawings, specifications and other documents defining technical requirements of materials, parts, compo­nents, equipment, structures and systems.

DESIGN REVIEW
[R] A formal, documented, comprehensive and systematic examination of a design to evaluate the design requirements and the capability of the design to meet these requirements and to identify problems and propose solutions (ISO 8402).

DESIGN SPECIFICATION
[R] A document provided by the Client or Badger, detailing requirements as to the intended operating conditions in such detail as to constitute an adequate basis for selecting materials and designing, fabricating and inspecting the product(s) as required to comply with the applicable Code requirements.

DESIGN VERIFICATION
[R] The process of checking, confirming or substantiating the design to provide assurance that specified requirements have been met. Acceptable methods include design reviews, alternate calculations and test­ing.

DESTRUCTIVE TESTING
[R] Verification of material or component properties by a test which destroys the test piece. Common destructive tests are tensile testing, impact testing, bend testing, compression testing, and proof testing.

DIRECT COST ACCOUNTS
[O] LCV codes of account ‘A’ through ‘P’.
[A] The costs of the deliverables
[M] Direct costs contribute directly to the completion of a specific contract, and are usually identified and charged to one project or contract. Examples are materials, billed labor hours, equipment.
Direct costs can be subdivided into
- direct labor costs
- direct material costs
- direct overhead costs

DEVIATION
[R] A nonconformance or departure of a charac­teristic from specified requirements (ANSI N45.2).

DEVIATION PERMIT
[R] See: Production Permit.

DISCREPANCY
[R] Any condition that does not conform to specified requirements including procedur­al, material, documentation, and construc­tion requirements.
Note: A discrepancy is a difference, an inconsis­tency (Concise Oxford).

DISPOSITION
[R] An action to determine how a departure from specified requirements is to be handled or settled (IAEA-50-SG-QA1).

DOCUMENT
[A] Uniquely identifiable composite information on a data storage medium for the purpose of communica­tion. A menu on a screen, for example, is not a document.
[R] A drawing, specification, sketch, proce­dure, item list, or report form containing pertinent data or information.

DOCUMENT MANAGEMENT
[A] Document management is a subfunction of the business function deliverable control. Deliverable control is itself a subfunction of project management.

DOCUMENTATION
[R] Any recorded or pictorial information describing, defining, specifying, reporting or certifying activities, requirements, procedures or results (ISO 6215, BS 5882 and ANSI N45.2*).

DRAWINGS (DESIGN-)
[R] Plans which show a design complete with sizes, sections, and relative location of all items but generally not showing details of joints and attachments.

DRAWINGS (SHOP-)
[R] Shop drawings give complete information necessary for fabrication of the item including details of joints and attach­ments.

DURATION
[S] The length of business time (hours, days, etc.) that a task or activity requires from start to finish.

DURATION VARIANCE
[B] Difference between baseline and current plan duration for a task or activity. A negative value indicates longer duration than was planned for in the baseline. Formula : Baseline duration minus current duration.

EARLY WORK SCHEDULE (EWS)
[P] Project overall schedule (POS), level II, for the first 6 weeks up to 3 months of a project, issued in anticipation of a project detail schedule (PDS).

EARLY START
[S] The earliest date a task can be started.
[A] The early start of an activity makes only sense if it is certain that there is full productivity throughout that activity and no budget is wasted due to resource idle time.

EARNED VALUE
[M] For certain tasks the percentage of work completed may not equal the percentage earned; for example, when 30 % of the work is complete, the task earns 50 % credit; when it is 75 % complete, it earns 90; etc.
[B] Earned value indicates the accomplishment in terms of budget hours.
[B] Each quantity measurement unit (e.g. tons, cubic yards, number of drawings, etc.) has its particular unit hourly rate. For example, the labor hours for a large concrete pour could be 8 hours per cubic yard. Another example, the hourly rate for a piping isometric might be 5 hours, whereas the rate for a P&ID could be 350 hours. Thus the
EARNED VALUE IN BUDGET HOURS = QUANTITY * BUDGETED HOURLY RATE;
[B] For effective performance measurement, the work must be subdivided into packages in which the measurement units and the hourly rates are the same for all quantities in the package. The measurement units and the unit hourly rates must be the same as those in the budget.
[B] The earned value is the multiple of the quantity completed times the milestone percent times the unit hourly rate.
[B] The earned value is the number of units or quantity that has reached a milestone, times the milestone percent, times the unit hourly rate.
[B] The cost of the completed portion of a task or activity based on the baseline total usage. The usual elements are :
- budgeted cost of work scheduled, i.e. the cost of baseline total usage up to the project as-of date
- actual cost for work performed, i.e. cost of cumulative actual usage
- estimate at completion, i.e. estimated cost of resource usage at the completion of a task or activity (= actual plus estimate to complete).
[P] For LGV, according to the PROMISYS documentation, the earned value curves should contain
- actual man-hours for work performed
- budgeted manhours for work scheduled
- budgeted manhours for work performed
[B] In fact, earned value is another expression for reliable measurement of progress of work done that is percentage complete.
[A] EARNED VALUE = ALLOCATED MANHOURS * PHYSICAL PROGRESS;
[P] EARNED WEIGHT VALUE = ALLOCATED MANHOURS * PHYSICAL PROGRESS;
[P] ACTUAL PHYSICAL PROGRESS OF PDS = (SUM EARNED WEIGHT VALUES PWS) / BUDGET MANHOURS;

EARNED VALUE ANALYSIS (= EVA)
[S] Also called PERFORMANCE MEASUREMENT, which is a calculation of actual work accomplished in relation to what was planned when the BASELINE BUDGET was established.

EIS (= EXECUTIVE INFORMATION SYSTEM) INFOCENTER
[A] For an EPC contractor an executive information system would allow to keep track of the project progress at all levels in a work breakdown structure. Any change at a certain level immediately shows the affected higher levels. From any level, any lower level can be zoomed into for more details.
Technically, an EIS is supported by (fourth generation) software that can transparently (for the user) access and relate any database and aggregate at any predefined level in the work breakdown structure. EIS is the ultimate infocenter front-end to support decision making.
EIS should provide the possibility to relate the WBS and the OBS to zoom into the responsibility assignment matrix, for which it would be advisable to include the accountnumber in activity identification because any OBS element working on a WBS element should book on that WBS element.
[A] An EIS works only as good as the underlying method of project progress control. A good method is :
- Establish a deliverable oriented WBS (Work Breakdown Structure) and an overall schedule derived by adding logic between the elements at a given level. The calculated dates impose constraints on lower levels of the structure.
- Establish an OBS (Organization Breakdown Structure)
- Establish a RAM (responsibility Assignment Matrix) with cost centers on the grid. The RAM shows on one axis which OBS element is responsible for what cost centers, and on the other axis which WBS element (deliverable) is associated with what cost centers.
The cost center is a control point where
. responsibility is assigned
. budgets are assigned
. costs are approved
. schedules are approved
. baselines are maintained
- Establish procedures for management of cost centers
- Break down each cost center into work packages to form the detail schedule
- Setup dependencies between work packages for critical path analysis of the plan
- Spread the resource requirement over the duration of the work package, calculating the quantity and associated cost of each resource, per accounting period, using the project calendar
- Establish a CBS (Cost Breakdown Structure) and detail the resources in the structure. Link the CBS with rate tables. Include resource availability.
- Manage each cost center by
. developing detail breakdown of tasks, including start & end dates and float
. assigning resourtces to the plan to obtain detailed cost estimates and resource plans
. reschedule the plan to obtain optimum usage of resources
. revise the latest estimate where needed
. produce forecasts from actuals and latest estimates
. enter actual manhours and costs expended against the plan
. summarize to cost center level for performance reporting
- Record actuals (cost and quantities) against cost center
- Summarize (roll-up) costs and quantities through each level of the structure
- Using baseline, progress and actuals, calculate the Earned Value (BCWP) to measure the true amount work performed, and how this varies from what was budgeted and what was actually spent.
- Report via the structures that is most appropriate to the various project responsibles, for example
. in numeric form within the WBS, OBS, CBS and RAM
. predefined graphs concerning a cost center or any element of the structures or of the RAM
. highlight any relevant aspect of the project per individual requirements
The important point is that the method must be refelected in a data structure that is congruent with the breakdown structures (WBS, OBS, CBS, RAM)

END , EARLY -
[S] The earliest date that a task or activity can end, based on the critical path.

END, LATE -
[S] The latest date on which a task or activity can be completed without adversely affecting the critical path of a project.

ENDURANCE (LIFE TEST)
[R] A test in which an item is subjected to specified stress(es) over a specified long period of time or large number of opera­tions, or both, in order to determine its durability.

ENGINEERING CONTRACTOR
[R] Any organization or individual under contract supply engineering services to the client.

ENGINEERING DOCUMENTS
[R] Engineering documents are all engineering drawings and specifications which reflect Code or Users Design Specification require­ments such as Material-, Welding-, NDE Specification, etc.

ENGINEERING FLOW DIAGRAM (EFD
[R] This document shows all equipment connect­ing piping, utility piping, complete with control loops and all other instrumenta­tion, all valves and safety measures. It is the main tool for the project engineer to convey information to the piping design office and control systems engineering group to the piping design office and control systems engineering group for the detailed piping and control systems design.

EQUIPMENT
[A] All physical parts of a plant, that deliver a meaningful direct or indirect service to the chemical process of that plant, or that can not be purchased as a standard item.
[B] For example : furnace, exchanger, tower, vessel, rotating, special.

EQUIPMENT DOSSIER
[R] Describes the equipment used in a plant or unit without consideration of its position or function in the plant.

EQUIPMENT CONTROL INDEX
[A] List of pieces of equipment with description, requisition number, tag number, progress data.
There should be a common standard equipment control index, rather than multiple locally developed ones.

ERECTION CONTRACTOR
[R] organization or individual under contract, supplying services for installa­tion of items on the site to the client.

ESTIMATE
[O] A statement that tells what it takes to deliver something. Sometimes called ‘guesstimate’.
[B] Most EPC contractors use standard unit hourly rates (i.e. standard hours, basic hours) for their activities. The standard hours reflect the time it would take to perform an activity under normal conditions. For plants built under different conditions, the standard hourly rates are adjusted by a project productivity factor.
BUDGET HOURS = STANDARD HOURS * PROJECT PRODUCTIVITY FACTOR;
The productivity factor may be different for each work package within a project, or may be a constant for a discipline or for a department/section.
[B] OVERALL PROJECT ESTIMATE MATRIX is composed of PROJECT CODE OF ACCOUNTS (for example : equipment [heaters, vessels, rotating], bulk materials [buildings, piping, instrumentation, etc], services [home office, construction, misc, etc], etc.) and PROJECT SUBDIVISIONS (for example : process plants [crude unit, reforming unit, etc], utilities & services [water facilities, fuel facilities, waste disposal, etc], civil works [fences, roads, dikes, etc]). The matrix is used to support estimating.
[B] At various project stages, particular estimating can be done, for example :
- Conceptual stage : Order of magnitude estimate, derived from curves or return costs from previous similar projects.
- Process design complete : Preliminary control estimate
- Basic engineering complete : Definitive estimate
- Quantities and prices known : Detailed or check estimate
[A] Estimates must be done only by the owner of the area of estimation, noone else.

ESTIMATE AT COMPLETION (= EAC)
[S] The sum of the actual cost and the remaining costs.
[B] ESTIMATE AT COMPLETION = ACTUAL COST OF WORK PERFORMED + ESTIMATED TO COMPLETE;

ESTIMATE TO COMPLETE (ETC)
[M] The money or resource units expected to be spent to accomplish a task.
[S] Estimated resource usage required for a resource to complete a task assignment or activity assignment.
[B] ESTIMATE TO COMPLETE = (BUDGET AT COMPLETION – BUDGETED COST OF WORK PERFORMED) / COST PERFORMANCE INDEX;

EXAMINATION
[R] An element of inspection consisting of investigation of materials, components, supplies, or services to determine confor­mance to those specified requirements which can be determined by such investigation. Examination is usually non-destructive and includes simple physical manipulation, gauging, and measurements (ANSI N45.2).

EXTERNAL AUDIT
[R] An audit of those portions of an organiza­tions quality assurance program which are performed by another organization (IAEA 50-SG-QA10).

FAILURE
[R] The occurrence of a defective item while the item is under test or in service.

FINAL DOCUMENTATION
[R] All documents required to confirm final condition of an item and includes as-built­-data, test reports, and certifications.

FINAL INSPECTION
[R] The final inspection carried out by the contractor to verify that all specified inspection has been carried out and that the delivery satisfies all the specified requirements, including requirements as to documentation (NS 5801).

FINDING
[R] Survey originated objective evidence that a control feature of the approved quality program was not implemented with an accept­able level of reliability (API-Q1).

FIRM FIXED PRICE (FFP)
[R] A firm-fixed-price contract provides for a price that is not subject to any adjustment on the basis of the contractor’s cost experience in performing the contract. This contract type places full responsibility upon the contractor for all costs and resulting profit or loss.

FIXED PRICE WITH REIMBURSABLE (FPw/RE)
[R] A firm fixed price contract which additionally reimburses the contractor for non-labour costs (i.e., travel and repro).

FLOAT
[S] The amount of time a task or activity can slip from the early start date without affecting the project end date. If float is zero, then task or activity is on critical path. Float = late start minus early start.
[S] The difference between EARLY START DATE and LATE START DATE of a task (activity).

FORECAST
[D] A calculation that tells what is going to happen in the future, especially in relation to a particular event.

FORECAST MANHOURS AT COMPLETION
[A] Forecasted manhours to complete added to actual manhours spent.

FORECAST MANHOURS TO COMPLETE
[A] Manhours for a resource to complete a task or activity.

GANTT CHART
[M] Graphical representation of the entire project or a subset of it, usually horizontal barchart, to show baseline data, actuals, and estimates to complete.

GEMS (GENERALIZED ENGINEERING MANAGEMENT SYSTEM)
[B] An approach to project control, based on dividing the project into manageable tasks. It combines
- schedule control
- (project-) document control
- budget control
- labor forecasting
- progress measurement

GRADE
[R] An indicator of category or rank related to features or characteristics that cover different sets of needs for products or services intended for the same functional use (ISO 8402).

GUIDELINES
[R] Particular provisions which are considered good practice but which are not mandatory. The term “should” denotes a guideline; the term “shall” denotes a mandatory require­ment (ANSI N45.2*).

HOLD-POINT
[R] Mandatory point in the manufacturing sequence of which the client’s quality control organization shall be notified and work shall not proceed until required inspections and tests have been witnessed or waived in writing.

INDEX , PERFORMANCE -
[M] Calculation : budgeted cost of work performed divided by actual cost of work performed. An index of 1 represents normal performance; an index of less than 1 represents performance poorer than planned; an index greater than 1 represents a better performance than planned.
Some indices are : schedule performance index, cost performance index, schedule variance index.

INDEX , PERCENT COMPLETE -
[M] Calculation is based on earned value against budget at completion. The elements are shown as % of the baseline budget.
Some indices are : performance % complete, scheduled % complete, actual % spent.

INDIRECT COST (BURDEN RATES)
[M] Costs incurred through operating organizations such as training and business development that supports tyhe direct costs for all projects. Indirect costs are calculated as a percentage of the direct costs; these percentages are called BURDEN RATES.

INQUIRY
[R] A procurement document prepared by the Procurement Department which is sent to vendors shown on the Approved Vendors List requesting a proposal for the item of service described in the Material Requisi­tion.

INSPECTION
[R] Activities such as measuring, examining, testing, gauging one or more characteris­tics of a product or service and comparing these with specified requirements to determine conformity (ISO 8402).

INSPECTION CHECKLIST
[R] An itemized instruction document that defines and prescribes the manner and sequence of performing manufacturing or construction site surveillance.

INSPECTION POINT
[R] Any point during manufacture and installa­tion which comprises inspection activities as stated in the routing plan of quality control program.

INSPECTOR
[R] A qualified inspector employed by the owner, or installer whose duties include the verification of quality related activi­ties or installations or both (ANSI N45.2 *).

INTERCONNECTING FLOW DIAGRAM (IFD)
[R] This document shows the interconnecting lines between various plant units, e.g. tank farms, etc.

INTERFACE
[R] Organizational Interface – A written description of the organizational relation­ship between the design groups of various project contractors, sub contractors and consultants.
[R] Physical Interface – The physical location identified by coordinates and elevation where divisions in engineer­ing responsibil­ity exists.

INTERNAL AUDIT
[R] An audit of those portions of an organiza­tion’s quality assurance program which are performed within its organizational struc­ture (IAEA-50-SG-QA10).

ITEM
[R] A part, equipment, sub-system or system that can be individually considered and separately examined or tested
[R] An actual or conventional object on which a set of observations may be made;
[R] Defined quantity of material on which a set of observations may be made;
[R]. An observed value, either qualitative (attributes), or quantitative (measured) (BS 4778).

JOB INSTRUCTION
[R] Description of a certain work procedure and determined pattern of action in given situations (NS 5801).

LEAD AUDITOR
[R] An individual qualified to organize and direct an audit, report audit findings, and evaluate corrective action (ANSI N 45.2).

LINE DESIGNATON TABLE
[R] Listing of engineering flow diagram pipe­lines. It contains additional information including maximum temperature for thermal stress calculations, operating pressure and temperature, design pressure and tempera­ture, testing pressure and medium, insula­tion code and thickness, paint code and type of heat-tracing.

LOADING PATTERN
[M] The pattern of usage for a resource assigned to a task or activity. The most widely used loading patterns are : Uniform, front, back, contour.

LOSS (I.E. UNNECESSARY COST TO THE PROJECT)
[B] To illustrate the influence of the cost of borrowing, consider the following example :
Suppose for a large project $3 billion would be set aside at the start of the job, and the job will take 5 years, then (taking a uniform spread) half of the money would not be put to productive use. If the borrowing cost were 13 percent and the short-term return is 5 percent, then roughly the net loss to the project owner is approximated to be
0.5 * $3 billion * 0.5 * 5 years * (13%-5%) = 300 million
This is of course a very crude calculation, but it does make clear some potential overall costs.

MAINTENANCE
[R] The combinations of all technical and corresponding administrative actions intended to retain an item in, or restore it to, a state in which it can perform its required function.
Note: The required function may be defined as a stated condi­tion (BS 4778).

MAJOR DEFECT
[R] A major defect is one which reduces the usability of an item for its intended purpose.

MANAGEMENT RESERVE
[M] A monetary amount separate from the project’s performance measurement baseline that is not assigned to any work item in the contract. This amount is set aside for tasks that are within the scope of the project, but not included in the budget.

MANHOUR BUDGET
[A] Manhours available to an activity level.

MANHOURS DISTRIBUTION METHODS
[P] The following matrix shows the manhours distribution methods

MANHOURS DISTRIBUTION

0
%
10 %
20 %
30 %
40 %
50 %
60 %
70 %
80 %
90
%
100 %
linear
0
10
20
30
40
50
60
70
80
90
100
triangular
0
2
8
18
32
50
68
82
92
98
100
triangular increase
0
2
5
11
18
27
38
51
65
82
100
triangular decrease
0
18
35
49
62
73
82
89
95
98
100
back loaded
0
7
14
21
28
35
48
61
74
87
100
front loaded
0
13
26
39
52
65
72
79
86
93
100
trapezoidal
0
2
9
20
35
50
65
80
91
98
100
bell shape
0
1
4
12
27
50
73
88
96
99
100
three step
0
8
16
24
37
50
63
76
84
92
100
user defined

MANHOURS , EFFECTIVE -
[P] Total manhours minus vacation, holidays, sickleave, absence.

MANPOWER (ESTIMATING)
[B] MANPOWER PERFORMANCE INDEX = EARNED VALUE / ACTUAL VALUE;
ESTIMATE TOTAL MANHOURS = PLANNED MANHOURS / MANPOWER PERFORMANCE INDEX;
[A] The required manpower for the remaining period will be based on the manhour estimates to complete given by the Lead Engineers, or calculated based on performance.

MANUFACTURER
[R] One who constructs any class of components, part, or appurtenance to meet prescribed design requirements (ANSI N45.2).

MANUFACTURING
[R] Collective term for purchasing, production, inspection and storing.

MATERIAL
[A] Equipment or Commodities.

MILESTONE
[M] Establishes one or more identifiable elements that contribute to the overall work package. Accomplishing any milestone earns a certain predefined value. Accomplishing all the milestones in the work package means that the work package has been completed satisfactorily.
[A] A predefined end-result on the time axis. Trends in slippage of completion dates for parts of the project can be shown.
[P] A turning point in the execution of an activity. Once a milestone is reached, a certain percentage of completion is assumed.
[D] In general, showing the distance to particular points.
[S] A significant date or event in a project.
[B] Many activities may go through a series of steps before they are completed. For example, in the field a foundation must first be excavated, then formed, concrete added and finally grouted out. Another example, a drawing is first drafted, then reviewed for design, then material taken off and finally issued for construction. These steps are completion points in time. The earned value is the number of units or quantity that has reached a milestone, times the milestone percent, times the unit hourly rate.

MILESTONE DATES , SCHEDULED -
[P] Result of distribution (according to manhours distribution method) of allotted manhours from start date to finish date (including no-work days).

MONITORING
[B] To determine specific problem account areas in a project. The next step is to determine the reasons for the deviations from the plan and to assess what corrective actions on significant variances are needed to get back on course.
[R] The continuous assessment of the work completed in every discipline and every stage until completion.

ORGANIZATIONAL BREAKDOWN STRUCTURE (= OBS)
[O] The OBS is used to generate planning reports required by the departments involved in the project. This is made possible by specifying which parties are supposed to supply information and which parties are supposed to receive information during the execution of the project.
To identify all organizational elements in a project organization, the organizational structure should be presented as a coding structure. When each party involved has a place in this organization structure, it will also be allocated a place in the coding structure. By using this code, all involved parties can be identified throughout the project.
An example of OBS coding :
- Location
- Division
- Department
- Section
[B] Is similar in concept as the WBS, being a hierarchical family tree defining the organizational elements in successively greater levels of detail. A specific OBS for the project depicts those organizational elements responsible for performing the work. For example :
Level-0 The company
Level-1 Division, such as Engineering, Procurement, Construction
Level-3 Department, such as (within Engineering) Process, Civil, Piping, Electrical
Level-4 Section, such as (within Civil) Structural
The integration of the WBS and the OBS forms the responsibility matrix.

[M] According to the PACS procedures, the OBS is as follows
Level-1 Company
Level-2 Divisions
Level-3 Departments
Level-4 Sections
Level-5 Task Categories
Level-6 Activities
[A] Please note that Level-1 to -4 are organizational and level-5 to -6 are work related, i.e. should be part of WBS, not OBS.
[W] OBS, organization breakdown structure, representing the project’s organizational resources

ORGANIZATIONAL UNIT
[A] Departments or sections. Organizational units (OU for short) execute one or more business functions; business functions are delegated to one or more organizational units.

PENDING VARIANCE
[M] Difference between total usage and new total usage.

PERCENT COMPLETE
[B] The percentage completion for an accountcode is the sum of the earned values for the work packages divided by the total budget for the account.
[B] PERCENTAGE COMPLETION FOR AN ACCOUNT = SUM EARNED VALUES FOR THE WORK PACKAGES / TOTAL BUDGET FOR THE ACCOUNT; earned values may be in terms of manhours, quantities or costs, depending on the units used to establish the budget for the account
[S] User defined completion estimate used in EARNED VALUE analysis and used to display the status of activities (tasks) in the Gantt chart view.
[A] A completed portion of an activity.
[B] PERCENT WORK COMPLETED = (ACTUAL / (ACTUAL + FORECAST)) * 100;
[B] NET PERCENT COMPLETED = PERCENT PERFORMANCE * WEIGHTED PERCENT;
[P] PERCENTAGE COMPLETE FORECASTED = 100 * (PERIOD END DATE – DATE START FORECASTED + 1) / (DATE FINISHED FORECASTED – DATE START FORECASTED + 1);
[P] PERCENTAGE COMPLETE SCHEDULED = 100 * (PERIOD END DATE – DATE START SCHEDULED + 1) / (DATE FINISHED SCHEDULED – DATE START SCHEDULED + 1 );
[P] PERCENTAGE COMPLETE ACTUAL = 100 * (PERIOD END DATE – DATE START ACTUAL + 1) / (DATE FINISHED ACTUAL – DATE START ACTUAL + 1);
[P] WEIGHTED PERCENT COMPLETE = (PERCENT COMPLETE / 100) * WEIGHTED PERCENTAGE;
[P] WEIGHT PERCENTAGE COMPLETE SCHEDULED = 100 / (SUM REVISED WEIGHT /
SUM WEIGHT PERFORMED SCHEDULED);
[P] WEIGHT PERCENTAGE COMPLETE ACTUAL = 100 / (SUM REVISED WEIGHT /
SUM WEIGHT PERFORMED ACTUAL);
[P] WEIGHT PERCENTAGE COMPLETE FORECASTED = 100 / (SUM REVISED WEIGHT /
SUM WEIGHT PERFORMED FORECASTED);

PERCENT SCHEDULE USED
[B] PERCENT SCHEDULE USED = (DURATION USED / TOTAL DURATION) * 100;

PERFORMANCE ANALYSIS
[B] To determine, for the money spent, whether or not the progress is achieved as defined; the analysis also includes to determine how much should have been spent for the progress achieved, and how this actually compares with what is actually spent.
[B] To compare planned progress, earned value and actual cost.
[A] Performance analysis means finding out whether we are going to be on schedule and on budget, looking at the trend of progress and cost.
[B] Performance measurement for all E, P, C, SC activities must be by means of physically measurable yardsticks (quantities, milestones). Performance measurement must NOT be measured in terms of calendar time or manhours/costs expended.
[B] The purpose of performance analysis is to find out concerning :
- the schedule
. where there is a variance
. why there is a variance
. what effect does the variance have on the project
- the budget
. where there is a variance
. why there is a variance
. what caused the variance
. who is responsible for the variance
. what can be done about the variance
- the trend
. what is the progress
. what is the cost
- forecasting
. what will be the final cost
. what will be the completion date
- monitoring
. what is the rate of built-up cost
. what is the rate of progress
. how does cost relate with time.
[B] For effective performance measurement, the work must be subdivided into packages in which the measurement units and the hourly rates are the same for all quantities in the package. The measurement units and the unit hourly rates must be the same as those in the budget.
[B] On timecards, hours are recorded per work package code (account code). There should be no manipulation of timesheets to make budgets look good. Only accurate reports can aid good projections to complete.
[B] Performance measurement for combined accounts can only measured in terms of dollars. Therefore, each cost account must be estimated with the same units of measurement as its actuals, and all must be capable of being translated into dollars.
[B] The following table is an example that illustrates performance analysis
[B] Performance analysis objective is to answer questions like
- Are we on schedule, on the project as a whole and the individual parts of it ? In case of a variance, why did it occur and who is responsible for it ? What effect will it have on other parts of the project and what can we do about it ?
- Is the work being completed to the budget estimate. In case of a variance, where did & why & how did it occur, who is responsible for it and what can we do about it ?
- Are we going to be on schedule & budget, i.e. what is the trend of progress and cost?
[O] To help forecast future contract performance, it would be very useful to use current and past contractor cost & schedule data concerning similar work.

BCWS
BCWP
ACWP
Cost variance
Scheduled variance
Analysis
(conclusion)
4
4
4
0
0
on schedule
on cost
4
4
3
1
0
on schedule
under cost
4
4
5
-1
0
on schedule
over cost
3
4
4
0
1
ahead of schedule
on cost
3
4
3
1
1
ahead of schedule
under cost
3
4
5
-1
1
ahead of schedule
over cost
5
4
4
0
-1
behind schedule
on cost
5
4
3
1
-1
behind schedule
under cost
5
4
-5
-1
-1
behind schedule
over cost

PERFORMANCE & FORECASTING
[P] Performance is the ratio between time progress (actual manhours spent) versus physical progress.
[P] [for performance = actual performance:] MANHOURS FORECAST TO COMPLETE = (ALLOCATED MANHOURS * ACTUAL PERFORMANCE) – ACTUAL MANHOURS;
[P] [for performance = 1 (i.e. as planned):] MANHOURS FORECAST TO COMPLETE = ALLOCATED MANHOURS * ((100 – ACTUAL PHYSICAL PROGRESS) / 100);
[P] [for performance = user defined:] MANHOURS FORECAST TO COMPLETE = (ALLOCATED MANHOURS * USER DEFINED PERFORMANCE) – ACTUAL HOURS;
[P] [for performance = actual performance:] MANHOURS FORECAST AT COMPLETION = ALLOCATED MANHOURS * ACTUAL PERFORMANCE;
[P] [for performance = 1:] MANHOURS FORECAST AT COMPLETION = ALLOCATED MANHOURS * ((100 – ACTUAL PHYSICAL PROGRESS) / 100) + ACTUAL MANHOURS;
[P] [for performance = 1:] MANHOURS FORECAST AT COMPLETION = ACTUAL MANHOURS + (ALLOCATED MANHOURS * (100 – ACTUAL PHYSICAL PROGRESS) / 100;
[P] [for performance = user defined:] MANHOURS FORECAST AT COMPLETION = ALLOCATED MANHOURS * USER DEFINED PERFORMANCE;
[B] PERCENT PERFORMANCE = TOTAL ACTUAL / TOTAL ESTIMATED;
[A] Contract performance should normally be measured against a formal, contract related baseline rather than against a contractor’s internal operating plan, which may represent something other than the contractual commitment.

PERFORMANCE PERCENT COMPLETE
[M] Percent of work performed to date against the total budget.
[M] PERFORMANCE PERCENT COMPLETE = (100 * BUDGETED COST OF WORK PERFORMED) / BUDGET AT COMPLETION.

PERFORMANCE , WEIGHT
[P] WEIGHT PERFORMED SCHEDULED = REVISED WEIGHT / (100 / PERCENTAGE COMPLETE SCHEDULED );
[P] WEIGHT PERFORMED ACTUAL = REVISED WEIGHT / (100 / PERCENTAGE COMPLETE ACTUAL );
[P] WEIGHT PERFORMED FORECASTED = REVISED WEIGHT / (100 / PERCENTAGE COMPLETE FORECASTED );

PHYSICAL PERCENT COMPLETE
[B] Probably the most widely used tool for schedule monitoring. The standard way of doing is to compare the forecasted progress (curve) with the actual progress (curve).
[B] PHYSICAL PERCENT COMPLETE = TIME SPENT / (TIME SPENT + TIME TO BE SPENT);
PHYSICAL PERCENT COMPLETE is not : TIME SPENT / TIME ESTIMATED TO BE SPENT;

PHYSICAL PROGRESS
[P] Physical progress is the percentage completion of an activity at a given moment.
[P] The actual physical progress curve of a task category starts at the earliest found actual start date of the PWS activities related to the task category, and finishes at the latest found actual finish date.
[P] The actual physical progress curve of a department/section starts at the earliest found actual start date of the PWS activities related to the department/section, and finishes at the latest found actual finish date.
[P] [per progress date :] ACTUAL PHYSICAL PROGRESS OF A TASK CATEGORY = SUM OF EARNED WEIGHT VALUES / BUDGET MANHOURS;
[P] [per week :] SCHEDULED PHYSICAL PROGRESS OF A TASK CATEGORY = ((CUMULATED SCHEDULED MANHOURS PER WEEK) / (TOTAL ALLOCATED MANHOURS PER TASK CATEGORY)) * 100 % ;
[P] [per department/section :] SCHEDULED PHYSICAL PROGRESS OF A DEPT/SECT = ((CUMULATED SCHEDULED MANHOURS PER WEEK) / (TOTAL ALLOCATED MANHOURS PER DEPT/SECT)) * 100 % ;
[P] SCHEDULED PHYSICAL PROGRESS PER PERIOD FOR TASK CATEGORY = (CUMULATED SCHEDULED MANHOURS PER PERIOD / TOTAL ALLOCATED MANHOURS PER TASK CATEGORY) * 100 % ;
[P] SCHEDULED PHYSICAL PROGRESS PER ORGANIZATIONAL UNIT = (CUMULATED SCHEDULED MANHOURS PER PERIOD / TOTAL MANHOURS PER ORGANIZATIONAL UNIT) * 100 % ;
[P] [per week :] FORECASTED PHYSICAL PROGRESS OF A TASK CATEGORY = ((CUMULATED FORECASTED MANHOURS PER WEEK) / (TOTAL ALLOCATED MANHOURS PER TASK CATEGORY)) * 100 % ;
[P] [per department/section :] FORECASTED PHYSICAL PROGRESS OF A DEPT/SECT = ((CUMULATED FORECASTED MANHOURS PER WEEK) / (TOTAL ALLOCATED MANHOURS PER DEPT/SECT)) * 100 % ;
[P] FORECASTED PHYSICAL PROGRESS PER PERIOD FOR TASK CATEGORY = (CUMULATED FORECASTED MANHOURS PER PERIOD / TOTAL ALLOCATED MANHOURS PER TASK CATEGORY) * 100 % ;
[P] FORECASTED PHYSICAL PROGRESS PER ORGANIZATIONAL UNIT = (CUMULATED FORECASTED MANHOURS PER PERIOD / TOTAL MANHOURS PER ORGANIZATIONAL UNIT) * 100 % ;

PLAN
[S] A specification of the work to be performed for a project.

PLANNING
[D] Decided in detail to do something before actually starting to do.
[B] Planning, as essential part of managing a project, is a means of
- organizing the work of the project
- deciding who does what, when, where, why, how
- determining resources required
- allocating resources on a time phased basis
- allocating and defining responsibility
- integrating the work of all the organizations involved
- communication between all those involved in the project
- coordination of all activities and people involved
- estimating time to completion
- basis for controlling project progress
Planning is also
- a basis for PM authority
- basis for budgeting and financial control
- a means of orientation and looking time consciously ahead.
[R] The formulation of the logic and execution strategy of the work to be done.

PLANNING & SCHEDULING DEPARTMENT
[O] Primary task with the company is monitoring projects as regards scheduling, costs and resources.

PROCESS
[O] Transforms incoming data (flow) into outgoing data (flow)

PRODUCTIVITY
[R] The manhours earned for work done against mainhours expended, i.e. the value of the pay items.

PROGRESS
[R] The measurement value of work done in agreed units of execution against contractually laid down pay items.

PROGRESSIVE INSPECTION
[R] Inspection of an item or component at selected stages of manufacture. Progressive inspection is performed on a periodic basis and as necessary to support witness, hold point and observe point requirements.

PROJECT
[S] Set of interrelated activities undertaken by resources to achieve a specific goal or objective. [A] A unique and complex set of inter-related Work Processes, with the aim to obtain a clearly defined and specified set of Client required results with discrete time, financial and technical performance goals.
[R] A planned series of activities executed by the EPC contractor under the contract.

PROJECT CONTROLS (N23)
[A] Project Controls is primarily focusing on the profitability of a project. Important areas to be examined for determining profitability are
- cost
- time
- contracts
- risks
in an efficient & effective way.
The focusing on costs rather than manhours has become more important because cost is the major issue concerning profitability.
Company is moving towards 3 major areas of business
- EPC (Company), requiring integrated systems
- multi partner (Company + other companies), requiring Company ability to consolidate data from foreign (non-Company) systems
- project management consultant (Company as PMC), requiring the image to be able to act as overall project manager having all the tools available.

PROJECT REPORTS
[B] In general, several project reports support the managing the (progress of the) project. Examples are :
- Narrative report. Usually distributed to the highest levels of client and contractor management
- Construction scheduling area plan. This is a tangible frame of reference of the amount of work contained within each scheduling area.
- Milestone report. High level concise project planning overview for client, contractor and project management.
- Hotline report. Provides detailed explanation of each critical milestone in the milestone report.
- Criticality report. Working level report for first line supervisors to focus attention and resources on the most critical problems.
- Slippage report. To specifically and numerically indicate which parts of the project are under/out of control.
- Manpower distribution (early and late) curves. To show extremes in manpower distribution.
- Manpower S-curves. To establish a resource leveled schedule.
- Manhours totals.
- Workschedules by discipline.
- Workschedules by scheduling area.
- Major equipment overview. To show projected & actual delivery of equipment.
By item number and/or by scheduling area.
- Bulk material by requisition/purchase order. To show projected & actual delivery of bulk material.
-

PROJECT DETAIL SCHEDULE (PDS)
[P] Also referred to as level-3 planning & scheduling.

PROJECT MANAGEMENT
[S] A body of knowledge dealing with the planning and control of projects.
[O] A collection of techniques and principles used in order to make a project succeed by controlling it.
[B] Work, organization and systems must be integrated, which involves
- a WBS, i.e. breakdown of a project into its component parts and all the work involved on these parts defined
- organizations and people involved in working on the lowest level of the WBS must be identified, i.e. responsibility matrix
- cost accounts cq work packages, i.e. intersection of WBS with OBS; each intersection point has identifiable responsibility, scheduled start & finish, budget and methods to monitor progress, cost & changes
- one level of planning must be integrated with the work packages
- budgets be established for each cost account/work package
- information supply based on the cost accounts/work packages in order to channel information on progress, cost & changes
- analysis of progress, cost variances & trends be carried out for the cost account/work package, WBS element and functional subcontract, to monitor performance and relate it to individual responsibilities
- project reports must be based on this structure
- management action should also follow this structure.

PROJECT MANAGEMENT SCHEDULE (PMS)
[P] Also referred to as level-1 planning & scheduling.

PROJECT OVERALL SCHEDULE (POS)
[P] Also referred to as level-2 planning & scheduling.

PROJECT WORK SCHEDULE (PWS)
[P] Also referred to as level-4 planning & scheduling.

PURCHASE ORDER
[R] A procurement document prepared by the procurement group authorizing the supply of items or services described in the material requisition.

PURCHASE ORDER REVIEW MEETING
[R] A meeting with a supplier shortly after purchase order commitment to confirm that supplier has received, reviewed and under­stood all purchase order requirements.

PURCHASER
[R] Any individual or organization who placed an order for items or services (ISO 6215, BS 5882).

QUALIFICATION (Personnel)
[R] The characteristics or abilities gained through training or experience or both that enable an individual to perform a required function (ANSI N45.2).

QUALIFIED PARTY
[R] A person or organization competent and recognized as knowledgeable to perform certain functions (ANSI N45.2)

QUALIFIED PROCEDURE
[R] A procedure which incorporates all applica­ble codes and standards, manufacturer’s parameters, and engineering specification and has been proven adequate for its intended purpose (ANSI N45.2).

QUALITY
[R] The totality of features and characteris­tics of a product or service that bear on its ability to satisfy stated or implied needs (ISO 8402)
Note :
1. (BS 4778) In order to be able to assure, control or improve quality, it is necessary to be able to evaluate it. This definition calls for the identifi­cation of those characteristics and features bearing upon the “fitness for purpose” of a product or service. The “ability to satisfy a defined require­ment” includes economics as well as availability, maintainability, reliabil­ity, design and all other characteris­tics that the need for a product or service involves.
2. The defined requirements for a particu­lar service, product, equipment or unit are as dominated by:
- - Client’s and Contractor’s requirements (Process performance, equipment life, equipment maintenance and safety).
- - Statutory requirements (such as pressure vessel codes, environmental codes, anti-pollution requirements etc.).
- - Any other non-statutory requirements (such as related to insurance, ship­ping, etc.).

QUALITY ASSURANCE (PROGRAM)
[R] A description of the overall management and procedures covering the quality assurance actions for the execution of a specific contract or project (ISO 6215, BS 5882).

[R] All those planned and systematic actions necessary to provide adequate confidence that a product or service will satisfy given requirements for quality (ISO 8402).
Note : The actions have to provide documented confidence that quality control is properly executed.

QUALITY ASSURANCE DEPARTMENT
[R] A specialized group that is independent of project execution responsi­bilities and charged with the responsibili­ty ensuring that adequate Quality Assurance Programs are implemented.

QUALITY ASSURANCE PROCEDURE
[R] A detailed procedure which forms an inte­gral part of the Quality Assurance Program, to give written policies and procedures governing quality related functions and activities for the execution of the proj­ect.

QUALITY AUDIT
[R] A systematic and independent examination to determine whether quality activities and related results comply with planned ar­rangements and whether these arrangements are implemented effectively and are suit­able to achieve objectives (ISO 8402).

QUALITY CONTROL
[R] The operational techniques and activities that are used to fulfil requirements for quality (ISO 8402).
Note : Quality Control is the total of all mea­sures taken within each department to achieve quality.
It comprises:
- Standardization and computerization of design and drafting as much as possible.
- Selection and use of qualified person­nel, vendors and subcontractors.
- Execution and logging of extensive and continuous supervisory checks and inspection of work done in the office, in vendor’s shops and at site, in accordance with an established quality control plan and accepted quality control procedures.

QUALITY CONTROL PROCEDURE
[R] A detailed procedure which provides a means to control and/or measure the characteris­tics of a material, facility or work, to established requirements.

QUALITY CONTROL SURVEILLANCE
[R] The overseeing of a supplier’s quality control organization and methods by the customer, his representative or an indepen­dent organization (BS 4778).

QUALITY LOOP (Spiral)
[R] Conceptual model of interacting activities that influence the quality of a product or service in the various stages ranging from the identification of needs to the assess­ment of whether these needs have been satisfied (ISO 8402).

QUALITY MANAGEMENT
[R] That aspect of the overall management function that determines and implements the quality policy (ISO 8402).

QUALITY MANUAL
[R] A document setting out the general quality policies, procedures, and practices of an organization (BS 4778).

QUALITY PLAN
[R] A document setting out the specific quality practices, resources and sequences of activities relevant to a particular prod­uct, service, contract or project (ISO 8402).

QUALITY POLICY
[R] The overall quality intentions and direc­tion of an organization as regards quality, as formally expressed by top management (ISO 8402).

QUALITY SYSTEM
[R] The organizational structure, responsibili­ties, procedures, processes and resources for implementing quality management (ISO 8402).

QUALITY SYSTEM REVIEW
[R] A formal evaluation by top management of the status and adequacy of the quality system in relation to quality policy and new objectives resulting from changing circumstances (ISO 8402).

QUALITY VERIFICATION
[R] The provision of evidence or proof that requirements for quality have been met (BS 4778).

REQUIISTION
[R] This document contains the full technical description of the material or work, and the quantities required.RESOLUTION
[R] Determining the disposition of a non­-conformance as either use-as-is, repair, rework or replace and the associated instructions.

RAM
[W] responsibility matrix, representing the intersection between OBS and WBS, i.e. who does what; each cell in the RAM may represent a responsibility ‘center’ or a workpackage or an activity

RESOURCE
[B] Whole or part of organization required to complete a project or part of it. Sometimes costs are treated as a resource, as to simplify determination of budget and cash flow requirement analyses.
[S] A human, financial or other means, having the capability to execute or support an activity, partially or wholly.
[O] Any object necessary to perform a task.

RESOURCE LEVEL
[B] To be applied in short term forecasting.
RESOURCE LEVEL = (FORECAST / REMAINING DURATION) * DAYS IN THE PERIOD;

RESPONSIBILITY MATRIX (RAM)
[O] The combination of the WBS (project structure, the work that needs to be done, and when it is scheduled), the OBS (who is going to do the work), and the CBS (to summarize costs and analyze the results), that makes up the relationship of scope of work, organization, cost accounts, budgets, estimates and schedules.
[O] The RAM allocates organizational responsibility for each work element and relates it with the cost account (budget).

[B] The responsibility matrix is the intersection of the WBS and the OBS. Each cell which is formed by the intersection is considered as a unique area in which an element of work scope is assigned to a single organization, thus forming a cost center or a (code of) account.
WBS Level-n : Each descending level provides increasing detailed definitions of the individual tasks, until organizational elements (taken from the organizational breakdown structure OBS) can intersect with the WBS elements. The intersection is the responsibility assignment matrix. Each cell in the matrix is in effect a management control point and can have a cost center number (account code) assigned to. At OBS discipline level, budgets are approved, costs are collected and performance is measured.
[B] For each intersection point of the matrix must be assigned
- description of the work performed
- who is responsible for the work
- time phased budget for the work
- resources required
- schedule start & finish
[A] According to the PACS procedures (re: Integration of OBS and WBS), task categories are in the OBS, but in fact task categories represent work, not organization, thus logically should not be part of the OBS, rather part of the WBS. The responsibility matrix cells, according to the current Company way, are formed by intersecting task categories with work packages; this is not consistent with the definitions of WBS and OBS.
[A] The OBS consists of resources that are doing the work defined in the WBS. The intersection of OBS and WBS forms the responsibility matrix.

REVAMP FLOW DIAGRAM (RFD)
[R] This document shows which equipment, lines, control loops etc. must be demolished, modified, removed or relocated etc. in a revamping project. The existing engineering flow diagrams of a plant or unit to be revamped shall be used. In general, two sets of diagrams are to be prepared:
1. an updated existing EFD’s version for demolishing purposes, RFD’s;
2. new “as-built” EFD’s.

REVIEW
[R] Examination of documentation, i.e. draw­ings, specifications, procedures, and/or records, to obtain confidence of conformance to specified requirements

REVISION OF A DOCUMENT
[A] The result of changes of the contents of a document. The revision number makes a unique identification possible.

REWORK
[R] The process by which a nonconforming item is made to conform to a prior specified requirement by completion, remachining, reassembling, or other corrective means (ANSI N45.2).

RISK
[B] Exposure to mischance, danger, hazard, injury, damage, bad consequence or loss.

ROLL-UP
[A] Consolidation of progress from the lowest level into higher levels of either the WBS, the OBS or the CBS.
See picture below.

ROLL-UP RULES
[S] [output :] ROLL-UP FORECAST START DATES OF PWS ACTIVITIES TO ONE FORECAST DATE OF THE RELATED PDS ACTIVITY (TASK CATEGORY)
[algorithm :] FROM ALL PWS ACTIVITIES RELATED TO THE PDS ACTIVITY, THE EARLIEST FOUND FORECAST START DATE WILL BE ROLLED-UP TO THE PDS

[S] [output :] ROLL-UP FORECAST FINISH DATES OF PWS ACTIVITIES TO ONE FORECAST FINISH DATE OF THE RELATED PDS ACTIVITY (TASK CATEGORY)
[algorithm :] FROM ALL PWS ACTIVITIES RELATED TO THE PDS ACTIVITY, THE LATEST FOUND FORECAST FINISH DATE WILL BE ROLLED-UP TO THE PDS

[S] [output :] ROLL-UP ORIGINAL (ALLOCATED) MANHOURS OF PWS ACTIVITIES TO ORIGINAL MANHOURS OF THE RELATED PDS ACTIVITY (TASK CATEGORY)
[algorithm :] FROM ALL PWS ACTIVITIES RELATED TO THE PDS ACTIVITY, THE ORIGINAL MANHOURS ARE TOTALLED TO BE ROLLED-UP TO THE PDS

[S] [output :] ROLL-UP REVISED (ALLOCATED) MANHOURS OF PWS ACTIVITIES TO REVISED MANHOURS OF THE RELATED PDS ACTIVITY (TASK CATEGORY)
[algorithm :] FROM ALL PWS ACTIVITIES RELATED TO THE PDS ACTIVITY, THE REVISED MANHOURS ARE TOTALLED TO BE ROLLED-UP TO THE PDS

[S] [output :] ROLL-UP ACTUAL MANHOURS ON PWS ACTIVITIES TO ACTUAL MANHOURS ON THE RELATED PDS ACTIVITY (TASK CATEGORY)
[algorithm :] FROM ALL PWS ACTIVITIES RELATED TO THE PDS ACTIVITY, THE ACTUAL MANHOURS ARE TOTALLED TO BE ROLLED-UP TO THE PDS

[S] [output :] ROLL-UP FORECASTED MANHOURS TO COMPLETE ON PWS ACTIVITIES TO FORECASTED MANHOURS TO COMPLETE ON THE RELATED PDS ACTIVITY (TASK CATEGORY)
[algorithm :] FROM ALL PWS ACTIVITIES RELATED TO THE PDS ACTIVITY, THE FORECASTED MANHOURS TO COMPLETE ARE TOTALLED TO BE ROLLED-UP TO THE PDS

[S] [output :] ROLL-UP FORECASTED MANHOURS AT COMPLETION ON PWS ACTIVITIES TO FORECASTED MANHOURS AT COMPLETION ON THE RELATED PDS ACTIVITY (TASK CATEGORY)
[algorithm :] FROM ALL PWS ACTIVITIES RELATED TO THE PDS ACTIVITY, THE FORECASTED MANHOURS AT COMPLETION ARE TOTALLED TO BE ROLLED-UP TO THE PDS

RULES
[R] The Rules are to be understood as being all regulations and requirements decided by the Certification Authorities.

S-CURVE (see also MANPOWER and EARNED VALUE)
[B] S-curves show quantitative progress rather than qualitative because the important thing to know is whether the job is handled volumetrically at a rate appropriate for the given time span, rather than knowing for example which pieces of pipe are erected by a specific date.
S-curves can be applied to show for example
- Material take-off quantities
- Cubic yards of earth excavated
- Feet of cable installed
- Number of requisitions
- Dollar value of purchase orders
- etc.
[B] An S-curve is a graph of the cumulative value of manhours, percentage complete or cost against time. The S-shape is because most projects have a slow start, followed by a longer period of relatively constant activity at a high rate, and finally falling off of this rate to give a slow finish.
In manpower analysis the slope of the curve represents the rate of expenditure of manhours (= velocity) and the rate of build-up or run down of the momentum of work (= acceleration or deceleration of the pace of work).

S-curves should not be smoothened to look good. The purpose is to show deviations from the schedule and act upon, not to simulate a statement of security.SAFETY
[R] Those activities related to securing human life and health, protecting the environment and securing material values.

SAFETY RELATED
[R] Pertaining to those structures, systems and components of installations the satisfacto­ry performance of which is important to the prevention of accidents that could cause undue risk to the health and safety of the public, or to mitigation of the consequenc­es of such accidents (BS 5882*).

SAMPLE
[R] A group of items or individuals, taken from a larger collection or population, that provides information needed for assessing a characteristic (or characteristics) of the population, or which serves as a basis for action on the population or the process that produced it (BS 4778)
Note : The term may also be used to describe a portion of material taken for the same purpose from a larger bulk of material or a sample of observations. Many statistical techniques require that the sample shall be drawn at random.

SCHEDULE
[D] A plan that gives a list of activities, events, etc., together with the timing each activity, event, etc. should happen.

SCHEDULE INDEX
[B] SCHEDULE INDEX = PERCENT SCHEDULE USED / PERCENT WORK COMPLETED;

SCHEDULE PERCENT COMPLETE
[S] Percentage of budget at completion represented by budgeted cost of work scheduled.
[S] SCHEDULE PERCENT COMPLETE = 100 * BUDGETED COST OF WORK SCHEDULED / BUDGET AT COMPLETION.

SCHEDULE PERFORMANCE INDEX (SPI)
[M] An approximate indicator of schedule performnace to date, indicating the schedule status of a contract or an item as a percentage of the earned value.
SPI % = (BCWP / BCWS) * 100;
An SPI of 100 % indicates that all work is completed, but it does not indicate whether the work was compleetd on time.
[S] Index of budgeted cost of work performed and the budgeted cost of work scheduled.
[S] SCHEDULE PERFORMANCE INDEX = COST OF WORK PERFORMED DIVIDED BY BUDGETED COST OF WORK SCHEDULED.

SCHEDULE VARIANCE
[M] Indicates how far behind or ahead of schedule the project is for the current period or for all periods to date.
[S] Difference between the earned value and the planned value. A negative schedule variance means the earned value is less than the plan and the project is behind schedule.
[S] SCHEDULE VARIANCE = EARNED VALUE – PLANNED VALUE; i.e. SV = BCWP – BCWS;
[B] If BCWP (budgeted cost of work performed) is greater than BCWS (budgeted cost of work scheduled), then SV (schedule variance) is greater than 0 (zero), thus ahead of schedule.
[B] If BCWP (budgeted cost of work performed) is less than BCWS (budgeted cost of work scheduled), then SV (schedule variance) is less than 0 (zero), thus behind schedule.
[B] A negative schedule variance indicates that the earned value is less than the plan, and the project is behind schedule.

SCHEDULE VARIANCE INDEX
[S] Index of the variance between budgeted cost of work performed and the budgeted cost of work scheduled.
[S] SCHEDULE VARIANCE INDEX = (BUDGETED COST OF WORK PERFORMED – BUDGETED COST OF WORK SCHEDULED) / BUDGETED COST OF WORK SCHEDULED;
[B] If the schedule performance index is greater than 1 (one), then the earned value is ahead of plan, thus good performance.
If the schedule performance index is less than 1 (one), then the earned value is behind plan, thus poor performance.
[B] SCHEDULE VARIANCE = EARNED VALUE – PLANNED VALUE;
[B] SCHEDULE VARIANCE = BUDGETED COST OF WORK PERFORMED – BUDGETED COST OF WORK SCHEDULED;
[B] Also referred to as the ratio of the earned value to the plan. A value in excess of 1 means that the earned value is ahead of plan, thus good performance.

SCHEDULED AUDIT
[R] An audit applied on a scheduled basis after contract award. This audit evaluates, but is not limited to, the effectiveness of the QA program, pertaining methods, manuals, procedures and instructions.

SCHEDULING
[A] Relating activities with deliverables, deliverables with costs, costs with budget, budget with manhours, manhours with activities.
[R] The proper assignment of resources to complete the work within the contract time scale and in the most efficient manner.

SCRAPPING
[R] Decision to reject a product or a service (NS 5801).

SENSIVITY
[B] The quality of being keenly susceptible and responsible of external forces.
One cost account may have greater impact on the overall project cost than another cost account. The analysis of contingency per cost account indicates the potential areas with high sensivity (for example concerning labor cost versus labor productivity). Additional surveillance for these cost accounts should therefore take place.

SERVICE LIABILITY (See:Product liability

SERVICES
[R] The performance by a supplier of activities such as design, fabrication, inspection, non-destructive, examination, repair or installation (IAEA-50-SG-QA1).

SHOP SURVEY
[R] Same as supplier evaluation. This term is being phased out of Badger procedures.

SITE
[R] The location of both on-plot and off-plot units and facilities which are intended to be constructed

SOFTWARE QUALITY ASSURANCE
[R] Program Requirements: New QA Professional Field covered by requirements in MIL-S­-52779 and ISO 9005 for the development, implementation and maintenance of a Quality Assurance Program for Computer Software.

SPECIFICATION
[R] The document that prescribes the require­ments with which the product or service has to conform (ISO 8402)
Note : The limits of acceptability must be includ­ed in the document referred above.

SPECIMEN
[R] Binding example of a product manufactured by the contractor’s manufacturing equipment (NS 5801).

STANDARD
[R] A document approved by a generally recog­nized body which results from the process of formulating and applying rules for an orderly approach to a specific activity or a physical specimen giving examples of professional performance of work.
Note : This definition includes Badger’s and/or Client’s standards.

START , EARLY -
[S] The earliest date a task or activity can start, based on the critical path.

START , LATE -
[B] The latest date on which a task or activity can start without adversely affecting the critical part of the project.

START VARIANCE
[S] Difference between baseline start and current start. Start variance = baseline start minus current start. A value less than zero indicates slippage from the baseline plan.

STATUS , ACTIVITY -
[M] Indicates whether the activity is hold, started & cancelled, not started & cancelled, etc.

STATUS , DOCUMENT -
[A] Describes the purpose of use of a document (including the authorization of use). Within a certain status, several substatuses can be defined.

90 % SYNDROME
[B] Progress and expenditure reports look favorable until 90 % completion is reached; then the last 10 % shows a considerable overrun in manhours and schedule time. This is mainly caused by :
- unrealistic manhour budgets and unrealistic schedule periods
- no fixed yardsticks to measure progress against
- assuming that meeting a schedule date means no further charge of manhours (for example follow-up, removal of holds, replies to queries, etc. even after AFC)

STORAGE
[R] The act of holding items at the construc­tion site or in an area other than its permanent location in the plant (ANSI 45.2).

SUBCONTRACTOR
[R] Any organization or individual under contract supplying items or services to the contractor.

SUPPLIER (See:Contractor)

SUPPLIER EVALUATION
[R] An appraisal to determine whether or not a supplier is capable of producing a compo­nent, product or service in accordance with a specified requirement, and providing objective evidence thereof (ISO 6215, BS 5882).
Note : Supplier’s QA/QC system to be evaluated as well.

SUPPLIER PERFORMANCE EVALUATION
[R] Assessment of a supplier’s control of quality carried out during and after completion of manufacture.

SURVEILLANCE (Quality)
[R] The continuing monitoring and verification of the status of procedures, methods, conditions, processes, products and servic­es, and analysis of records in relation to stated references to ensure that specified requirements for quality are being met (ISO 8402).

SURVEILLANCE CHECK PLAN
[R] An instruction document that defines and prescribes the manner and sequence of performing manufacturing or construction site surveillance.

SYSTEM
[R] Formalized collection of mutually coordi­nated procedures (NS 5801).

SYSTEM AUDIT
[R] An audit of effectiveness of the quality assurance program and pertaining methods, procedures and instructions.

TASK CATEGORY
[M] See also ‘activity class’. It bundles certain tasks or activities with common characteristics together in that the activity class or task category specifies the kind of work. Task category “A” is administrative and normally limited to 10 % of the budgeted manhours per department or section.
[S] A discrete unit of work that occurs over time. In general, any level a project’s WBS.
[A] Contrary to a code of account, a task category identifies the type of work, indicating what sort of work (activities) is happening, rather than the object (deliverable) of the work.
[A] Synonymous with work-package.

TESTING
[R] The determination or verification of the capability of an item to meet specified requirements by subjecting the item to a set of physical, chemical, environmental or operating conditions (ISO 6215, BS 5882 and ANSI N 45.2).

TIME AND MATERIALS (TM)
[R] A time-and-materials contract that provides for reimbursing the contractor for actual direct labour hours at specified fixed hourly rates that include wages, overhead, general and administrative expenses and profit plus materials at specified rates on cost.

TIME AND MATERIALS OPEN ENDED (T&MOE)
[R] A time-and-materials contract with no funding limitation on expenditures.

TIME CARD
[A] At some contractors, hours are booked on charge number (project- or jobnumber) and task category. In fact, to accurately record how many hours are related with what object of work (i.e. deliverable or type of material), the hours should be booked on corresponding codes of account as well, otherwise it is impossible to know for example how much money is spent on earthwork, cooling towers, crystallizers, etc.

In this sample, the time card conatins WBS work breakdown structure), OBS (organization breakdown structure) and CBS (cost breakdown structure) information.

TRACEABILITY
[R] The ability to trace the history, applica­tion or location of an item or activity, or similar items or activities, by means of recorded identification (ISO 8402).

TRAINING
[R] A continuous program of learning to gain knowledge and improve one’s ability in any subject, art or profession. Developing skills and attitudes through self-teaching, working on-the-job, workshop seminars, or formal classroom instructions.

TRENDING
[B] In addition to the overall project, project trending methods can be applied to specific work areas or activities as well. The most common use is for schedule and cost trending. Typical applications are for example :
- Engineering
. manhour expenditure v. budget
. productivity/performance v. target
. drawing production rate v. plan
. final MTO v. estimate
- Procurement
. Inquiry/po cycle time v. plan
. Purchase commitment rate v. target
. Actual vendor delivery time v. promise
- Construction
. Labor manhour expenditure v. budget
. Labor productivity/performance v. target
. Equipment/material erection rate v. plan
. Material quantities used v. estimated
Results of trends should normally not be used as forecasts, but persistent trend indications should be taken into account when making forecasts.

TYPICAL
[R] When associated with a dimension, means that the dimension applies to all features that appear to be identical in size and configuration. The tolerance stated for a dimension labelled typical also applies to each identical feature.

UNIT
[A] Functional part of a plant.
[O] In practice, the same as AREA, as far as project controls is concerned.

UNIT OF MEASURE
[S] Used to represent usage, such as days, hours, cost or quantity.

USE AS-IS
[R] A disposition which may be imposed for a nonconformance when it can be established that the discrepancy will result in no adverse conditions and that the item under consideration will continue to meet all engineering functional requirements, including performance, maintainability, fit, and safety (ANSI N45.2).

UTILITIES FLOW DIAGRAM (UFD)
[R] This document shows how utilities are generated and distributed from the source or supply point to the various parts of an installation. The diagram shows common control loops, additional equipment that is deemed necessary to supply the utility as required and the safety measures necessary. The diagrams shall be drawn in accordance with the geographical layout of the plant.

VARIANCE
[S] Deviation between actual and planned performance. Some elements are :
- schedule variance, i.e. difference between budgeted cost of work performed and the budgeted cost of work scheduled
- cost variance, i.e. difference between budgeted cost of work performed and the actual cost of work performed
- variance at completion, i.e. difference between latest revised estimate at completion and the baseline budget at completion; if value is less than zero, then costs are projected to be over budget when the work is completed
[B] Cost variance shows whether the work done costs more or less than estimated.
Schedule variance gives a cost measure of how far behind or ahead of schedule the cost account, WBS item or the project is.

VARIANCE AT COMPLETION (= VAC) ; AT COMPLETION VARIANCE (= ACV)
[S] The difference between the latest ESTIMATE AT COMPLETION (EAC) and the baseline BUDGET AT COMPLETION (BAC). A positive value indicates that the task is proceeding as planned; a negative value indicates a cost overrun.
[A] At contract level, total budget is usually equal to the contract value; therefore, the difference between BAC and EAC forecasts a contract overrun/underrun.

Interpretation of AT COMPLETION VARIANCES

B A C
E A C
A C V
DESCRIPTION
1
1
0
forecast on cost
2
1
1
forecast under cost
1
2
(1)
forecast over cost

VARIANCE , END -
[S] The difference in end between the baseline plan and the current plan. A negative value indicates schedule overrun.
[S] END VARIANCE = BASELINE END – CURRENT END.

VARIANCE TRESHOLDS
[M] Variance tresholds are specified as FAVORABLE PERCENT, UNFAVORABLE PERCENT, FAVORABLE COST, UNFAVORABLE COST, FAVORABLE EQUIVALENT WORK MONTHS and UNFAVORABLE EQUIVALENT WORK MONTHS. They are boundaries specified for each level of a structure in a project.

VARIANCE , USAGE -
[M] Difference between baseline total usage and the current plan total usage (actual plus estimate to complete) for a task or activity.

VENDOR
[R] Any organization or individual which offers items or services to a potential client.

VENDOR PRINTS
[R] All of the documents submitted by a vendor to purchaser for either review, approval or record purposes.

VERIFICATION
[R] The act of reviewing, inspecting, testing, checking, auditing, or otherwise verifying and documenting whether items, processes, services, or documents conform to specified requirements (ISO 6215, BS 5882 and ANSI N45.2*).

VERIFIED CERTIFIED MILL TEST REPORT
[R] A CMTR whose authenticity is confirmed by positive proof. Photocopies of CMTR’s are not generally acceptable without further laboratory check testing (to the require­ments of the appropriate product specifica­tion) unless the vendor or supplier veri­fies the photocopy by company stamping and signing in ink on the photocopy that the copy is either an original or stating the actual location where the original is held.

VERSION
[D] Occurrence of something (project, document, etc.) in which details have changed from previous occurrence

WAIVER
[R] Written authorization to use or release a quantity of material, components or stores already produced but which do not conform to the specified requirements (ISO 8402).

WEIGHT
[M] The original amount of hours reserved to do the work for the activity.

WEIGHT PERFORMED
[M] The scheduled, forecasted and actual amount of hours needed to do the work to be performed for the activity.

WELDING PROCEDURE SPECIFICATION (WPS)
[R] The Welding Procedure Specification shall list in detail the various base metal P Numbers to be joined by welding, the filler materials to be used, the range of preheat and post-weld treatment, thickness, and other variables described for each welding process as either essential or non-essential (ASME Section IX).

WITNESS
[R] The operation, test, or examination in which the purchaser’s inspector must be present during the specified activity.

WITNESS POINT
[R] Point of which the QA department shall be notified and work shall not proceed until required inspections and tests have been witnessed.

WORK BREAKDOWN STRUCTURE (= WBS) (see also : EIS)
[O] The WBS is the preferred management tool for identifying and defining the work. The WBS provides a structured framework for planning and controlling the cost, schedule and performance.
Example of a WBS
- Project phase
- Main group
- Function group
- Group activity
- Task

[O] Hierarchical structure that is used to break down a project into identifiable components.
[S] Usually a deliverable oriented hierarchical tree that organizes and defines the project tasks that are necessary to accomplish project objectives.
[B] For each intersection point of the matrix must be assigned
- description of the work performed
- who is responsible for the work
- time phased budget for the work
- resources required
- schedule start & finish
These cost accounts represent sizable amounts of work (-packages); each of them could be broken down into lower level tasks and job assignments.
According to the WBS, roll-up of physical progress and cost progress is applied.
[M] According to the PACS procedures, a WBS has two sections
- higher level
1 . project
2 . job
3 . area (unit)
- lower level
4 . major code of account
5 . subaccount
6 . work package element (which is an aggregate of various forms of documents), mainly used for inquiry and subcontracting; similar to Company task category.
[O] For each WBS element, cumulative values can be monitored, i.e. budget, earned value, actual costs, re-estimate and cost variance.
[B] A large project can be subdivided into its various units, areas and plant elements to facilitate control and reporting. The number of sub-project numbers should be kept to a minimum to give reasonable control. On a major multi-unit project the following breakdown is recommended
- overall project number for summary cost reports and common/bulk requirements
- individual sub-project numbers for each major identifiable process unit within complex
- one or more sub-project numbers for offsite systems, depending on size and scale
- separate sub-project numbers for geographically distinct locations such as marine terminals, rail loading, dispatching stations, etc.
[B] A WBS has various levels :
- Level-1 of a project WBS represents the quantified project objective, i.e. the total facility.
- Level-2 contains the major work segments grouped as subprojects. These work segments may be several process units comprising a process area or aggregation of services.
- Level-3 is subordinate to level-2 and further defines the project in terms of individual plant units as in a process area.
- Level-n : Each descending level provides increasing detailed definitions of the individual tasks, until organizational elements (taken from the organizational breakdown structure OBS) can intersect with the WBS elements. The intersection is the responsibility assignment matrix. Each cell in the matrix is in effect a management control point and can have a cost center number (account code) assigned to. At OBS discipline level, budgets are approved, costs are collected and performance is measured.
[W] WBS, work breakdown structure, representing the project’s deliverables

WORK PACKAGE
[A] A collection of activities, materials, manhours, equipment, etc. that is needed to reach a specific deliverable.
The NAM for example calls work packages ‘cost, time, resource’, which is the same as CTR-code used by Company.
A work-package may have 1 or more codes of accounts.

WORK PROCESS
[A] A specific cluster of work performed by a human resource or machine, in order to obtain a certain result or situation, which is defined to execute one or more business functions.

WORK STANDARD
[R] Document or physical specimen giving example of professional performance of work.