D6: Excellence in Project and Total Cost Management
Wednesday - Thursday, June 19 - 20, 2019 (1.5 DAYS)
Instructor: Dr. Nick Lavingia, PE
Nick has over 40 years of Global Project Engineering, Management, Consulting and Training experience in the industry. As a Project Manager, Project Management Consultant/Advisor and trainer at Chevron until 2013, he supported projects worth well over $ 100 billion globally. Since retiring from Chevron, he continues to provide Consultation and Training to Executives and Project Professionals worldwide. His experience includes projects in Oil & Gas Development, Oil Sands, Liquefied Natural Gas, Refining, Petrochemicals and Mining.
Nick has a B.S. and M.S. in Chemical & Petroleum-Refining Engineering and a Ph.D. in Mineral Economics from the Colorado School of Mines. He is a registered Professional Chemical Engineer in the State of California.
As a contributing author on Profitability Analysis for the Engineer’s Cost Handbook, Nick has published and presented many papers at technical organizations. He is a recipient of industry award from Pathfinder for outstanding contribution to the advancement of Project Management Technology and Chevron Chairman’s award for implementing Value Engineering throughout the corporation.
Industry benchmarking has shown a big gap in cost, schedule and operability between best and worst projects with a major impact on the total cost of ownership over the life of the asset. In today’s competitive business environment this can mean a difference between a profitable company and the one that becomes a takeover target.
This seminar has been designed to address management of limited and scarce capital resources for consistent World-Class Project Performance. It begins with a Project Development & Execution Process and describes activities, deliverables and organization required to effectively manage these projects. Emphasis is placed on Front End Loading where a multi-functional team defines and freezes the scope of work prior to full funding.
Project Management Best Practices which help optimize safety, cost, schedule and operability of any project are presented. Decision and Risk Analysis tools help the project team in selecting the right project. Project Execution Planning is a tool for strategic planning: a means to get all parties involved in a project to work as a team in order to plan and make decisions that will determine the project’s degree of success. Practices such as Alignment, Constructability, Safety and others come up with creative alternatives to positively impact project outcome.
Total Cost Management addresses topics such as Economic Analysis, Cost Estimating, Planning/Scheduling, Benchmarking, Contracting/Procurement, Performance Measurement, Cost Control/Forecasting and Progress Reporting.
Practical workshops and interactive discussions are vital elements of the seminar. Participants will be assigned to teams and will work on real life case studies. The overall goal of this seminar is to provide you with all the tools for World-Class Project Performance.
Upon completion of this practical seminar, participants will gain an understanding of:
- Project Management's impact on the bottom line of the company.
- Project Development & Execution Process which enables effective communication between Decision Makers, Multifunctional Project Team and Stakeholders.
- Project Management Best Practices that optimize Safety, Cost, Schedule and Operability of any project.
- Total Cost Management tools to estimate, plan, schedule and identify problem areas and take corrective action for enhancing project performance.
June 19, 2019 (Afternoon)
I. Project Management’s Impact on the Bottom Line
• Improve Return on Capital Employed (ROCE) and Total Shareholder Return (TSR)
II. Project Development & Execution Process
• IDENTIFY & Assess Business Opportunity
• SELECT from Alternatives
• DEVELOP Preferred Alternative for Full Funding
• EXECUTE--Detail Design, Procurement & Construction
• OPERATE & Evaluate
III. Project Management Best Practices
1. Decision & Risk Analysis (D&RA)
• Decision Hierarchy
• Strategy Table
• Influence Diagram
• Tornado Diagram
• Decision Tree
2. Project Execution Planning (PEP)
• Defining the Vision of Success (Business Goals, Project Objectives & Drivers and Scope of Work)
• Defining the Strategy for Success (Management Level Plan, Risk Management Plan, Organization Plan, Contracting Plan, Best Practices Implementation Plan and Team Performance Management Plan)
• Defining the Tools for Success (Time Management Plan, Cost Management Plan, Quality Management Plan, Safety & Environmental Management Plan, Materials Management Plan and Communications Management Plan)
3. Construction Industry Institute (CII) Best Practices
• Lessons Learned
• Zero Accidents Techniques
4. Project Reviews
• Peer Review
• Pre-Funding Assessment
• Post Project Assessment
• Business Evaluation
June 20, 2019 (All Day)
IV. Total Cost Management
1. Economic Analysis
• Net Present Value (NPV)
• Rate of Return (ROR)
2. Cost Estimating
• Estimate Types & Methods
• Allowance, Contingency & Accuracy
• Work Breakdown Structure (WBS)
3. Planning & Scheduling
• Plan Versus Schedule
• Critical Path Schedule
• Resource Planning
5. Contracting & Procurement
• Lump Sum Contracts
• Reimbursable Contracts
• Incentive Contracts
• Partnering / Alliances
6. Performance Measurement
• Earned Value Concept
7. Cost Control & Forecasting
8. Progress Reporting
$1050 member / $1200 non-member
NOTE: Add $100 if you are not staying at the host hotel. Book your room before registering for the seminar to lock-in the rate listed above. Add $100 for on-site registration. Seminar is subject to cancellation if minimum enrollment is not met 30 days prior.