(TCM-2392) Reviving Entrepreneurial Thinking and Behavior in Capital Projects
Author(s): Scott Whitbread; Nathaniel D. Greene
Tuesday, June 13 4:30-5:30/Celebration 2
Abstract: As capital project development has become increasingly structured and formulaic, to enable scalability and consistency, many projects have become devoid of the entrepreneurial thinking and behavior required to minimize costs and maximize returns. Adherence to industry best practices has become a primary measure of success for a project team, and the sense of individual responsibility for the project’s ultimate financial outcome has largely dissipated; each individual can succeed by performing their scripted activities “well”.
This paper identifies five key barriers that must be overcome to revive the entrepreneurial practices in any project, and discusses a case study where overcoming these barriers led to a significant increase in project value. The barriers are:
- Accepting false trade-offs between cost, quality, and schedule,
- Over-relying on benchmarks,
- Failing to determine the value of improvement ideas,
- Dismissing proposed design changes prematurely, and
- Maintaining competing incentives to hide money in the project case.
(TCM-2500) The True Power of Estimate and Schedule Bases Documents
Author(s): Robert Mathias; Paul G. Williams
Monday, June 12 4:45-5:45/Celebration 8
Abstract: It is well understood that a project’s cost estimate and schedule become more refined as the project scope progresses through the early stages of the Owner’s Front End Loading process. What is not as well understood is that simply moving through certain FEL phases does not automatically guarantee the accuracy of the estimate and schedule. This accuracy is supported by the level of scope definition, the data available, the team developing the deliverables, etc. In today’s world, Owners rely more and more on outsourced resources to develop these FEL deliverables, and it is imperative that the above-mentioned estimate/schedule influences are documented and well-understood by all stakeholders receiving the deliverables. It is equally as important to know what was involved/included in the development of the estimate/schedule (and what was not), as it is to get a final estimate and schedule.
This paper will provide the Estimate and Schedule Bases Document content, coverage and application, as well as case studies on how these documents are applied in today’s Lean Owner heavy project delivery Sectors.
(TCM-2503) The Economic Effects of a Revenue Neutral Fee on Fossil Fuels
Author(s): Desmond Orsinelli, PE CCP CEP
Wednesday, June 14 8:00-9:00/Celebration 8
Abstract: Humans rely on a stable climate currently at risk due to human emissions. This paper reviews the cost of proposed legislation that would place a small, but annually increasing fee on fossil fuels (on a $/ton of greenhouse gas emissions basis) and place a similar fee on emission intensive imports. The collected money would be “revenue neutral”, that is, not congressional revenue. Instead it is assumed revenue generated by the fee would be cut into equal monthly checks to each household in the IRS database. An economic model of the first 20 years under such legislation is reviewed, and compared with other studies, and to British Columbia’s real world example. What would happen to an economy weaned off fossil fuels? And, how would it affect the cost of living?
(TCM-2534) Mining and Mineral Processing Uniform Cost Coding Structure
Author(s): Tas Hellis
Monday, June 12 2:00-3:00/Celebration 8
Abstract: The global mining and mineral processing industry lacks a standardized cost coding structure. Without a standardized cost coding structure for mining and mineral asset development projects, it is difficult for owner, contractor, and investor companies to collect and collate project cost data. Such data are vital to efforts to improve capital project cost performance. To fill this industry-wide void in cost coding, a joint industry group was commissioned with reviewing existing codes and standards and proposing a uniform coding structure. This paper describes the drivers behind and the approach followed in developing the Mining and Mineral Processing Uniform Cost Coding Structure (MMP-UCCS) , as proposed by the industry group. Mining and mineral processing industry owner companies and contractors are encouraged to use the proposed UCCS to facilitate reconciling project cost records, streamlining of cost databases and facilitate reliable benchmarking and evaluation of mining and mineral projects with the view of developing the MMP-UCCS into an industry recommended practice.
(TCM-2535) Portfolio Scheduling – How to Achieve Success and What Does Success Look Like?
Author(s): John C. Philbrick, PE CCP; Francisco A. Cruz Moreno, PE
Monday, June 12 3:30-4:30/Celebration 8
Abstract: Initiated, implemented and maintained properly, portfolio scheduling can provide invaluable information to its users. This paper will provide examples of some of the benefits that portfolio scheduling can achieve. The paper will also discuss the implementation of some of the key processes required to ensure success in the development of a portfolio scheduling system. Some of the key components to the development of successful portfolio scheduling systems are establishment of criteria for portfolio governance, engagement of the project stakeholders; uniformity in the project schedules; quality of scheduling; and effective dashboards, tables, and reports that deliver useful data to the end user in an easily discernible manner. Use of a portfolio scheduling system enables the management to strategically prioritize which projects best meet the organization’s goals, plan for contingencies, and calculate risk at the portfolio level. The goal is to provide insightful and actionable information to the executive management responsible for managing a complex and seemingly disparate portfolio of projects. The authors have drawn upon their experience working for a large electric utility and a government agency with a multi-billion dollar per year work program.
(TCM-2600) Data Integration for Enterprise Project Control
Author(s): Ochamuke Ejofodomi
Wednesday, June 14 9:15-10:15/Celebration 8
Abstract: Project control can be classified as the quantitative arm of project management. Organizations, whose businesses are focused on capital intensive projects, rely heavily on data interface between project control and other corporate disciplines such as commercial, accounting, procurement and administration. However, a centralized depository for project data is still a technical and strategic encumbrance at the enterprise level. For most organizations, project control application is dependent on ERP software and manual computations of spreadsheets which hardly convey data interpretation as a single version of the truth. This paper aims to develop a novel methodology for collating and analyzing organizational project data into a web based Enterprise Project Control (EPC) system. The project control system is described with emphasis on its methodology and data flow process. A modular structure is developed providing a robust technical functionality for data integration and analysis.
(TCM-2693) Economic Benefits of Green Buildings
Author(s): Dr. Satish B. Mohan; Benjamin Loeffert
Wednesday, June 14 10:30-11:30/Celebration 8
Abstract: Buildings account for 40% of the nation’s CO2 emissions, 68% of electric consumption, 41% of total energy use and 14% of water consumed in the United States; these trends are unaffordable and must change. Studies have shown that green buildings can save approximately 30% in energy usage and lead to increased worker productivity and occupant’s health benefits. Also, green buildings have the potential of lower insurance premiums, lower waste disposal charges, reduced water and sewer fees, and increased rental rates. However, their initial cost can be 1 to 5% higher than the conventional buildings. These additional initial costs are recouped in energy savings over a few years. This paper gives the design and construction steps of green buildings, and presents the results of a few studies done on the short term and long term costs and savings of green features. Actual data of four green buildings, built in various regions of USA, has also been included. All the sampled green buildings cost an additional 2-3%, and are consuming significantly less energy of up to 33%.