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Scope Change Management - Actual progress calculation in Engineering Projects

Posted Wed, 2016-06-15 08:49 by deep gaglani

Hello Planners,

I am working as a Project Control engineer in one of leading DEC.

I have a query regarding Actual progress calculation while updating progress of an detail engineering project.

We all know during lifecycle of a project many scope changes are raised. And after getting approval from Project Manager and Client, we are incorporating this changes in our Schedule baseline also. But in actual practice, it is not feasible to incorporate this scope change as soon as it is raised. (I mean to say, we are not going to change our baseline 10 times if we are getting small 10 scope changes. But yes, if it is big scope change impacting schedule we will surely change baseline). But we are waiting for proper phase in a project where it is found that actual schedule baseline is not valid now and we need a new baseline and at that point of time we are incorporating those approved changes in new schedule baseline.

So meanwhile once scope change is approved from client and till it is not included in schedule baseline, we are parking those man-hours as a forecast man-hours.

So now my query is that while calculating Actual progress percentage completed during these phase of project, which man-hours we should consider - Original Schedule man-hours  or Forecast man-hours which includes approved scope change hours?

Hope I have made my question clear and hoping for a solution for my query.

Thanking you in advance.

Regards,

D. Gaglani

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Comments

Thanks Vera Lovejoy and Rod

by deep gaglani - 23 Jun 2016 - 13:07

Thanks Vera Lovejoy and Rod Himsley for sharing your expertise.

Now, we take a case study.

Consider a Project in which detail Engineering is to be done for a Refinery unit.

Overall Engineering man-hours for the project is suppose 1, 00,000.

Suppose at the stage where we have reached 15% of actual progress, there is a scope change of say 1,000 man-hours (and not affecting Planned Schedule end date) which also gets approved by Client.

Since new scope is only 1% and not affecting schedule end date, we are not willing to disturb our schedule baseline at this initial stage of project. Also, during a course of time in project such small Scope changes are bound to come and are inevitable but we can’t change our planned baseline at each and every such small scope changes.

Hence we keep adding such approved scope changes in bucket. And these approved man-hours from bucket are added in baseline schedule when we are actually re-baselining or re-scheduling our base curve.

Now my quarry is, while we are keep monitoring and reporting our progress for the project (till we are not doing re-baselining or re-scheduling), Actual % calculation is based on original scope of 1,00,000 hours or new approved scope of 1,01,000 hours?

Waiting for your reply.

 

Thanks again.

Calculating Progress on Work with Scope Canges

by Rod Himsley - 23 Jun 2016 - 02:36

I agree with Vera Lovejoy.

  1. Sgeragate the changes but always align to the contract scope. Bearing in mind Scope can be added to or removed. There are many reasons why scope is removed.
  2. The introduction of fragnetts (Days of P3) is an ideal way to incorporate the changes, letting the Project remain constrained or Not as the case may be.
  3. There should be an original "Project Baseline" that is fully documented by content (CTR) and a definitive scope(s).
  4. Revisions to the Baseline should be a Formal Commercial and Contractural release to both parties Client / Contractor / Sub Contractors.

Although informal sharing of schedules among entities can be helpful, be careful about volunteering information without your employer's approval

I understand the above inclusion, but having worked on the Client Side for many years. There are sensitivities of course, but not to be hidden. Projects are complex especially (Greenfield / Brownfield) and I would suggest that working with the Client  to establish the true depth of your fragnet works is a positive step as it works in two directions - Resources - the requirement for Specialist Resources , for your company and those of the Client.  Secondly Together you will have an Integrated plan that is well considered. 

In my experience, the Client has the right to all Contractor produce information by way of ann Xer file , a monthly transfer. Explain this mandatory commercial requirement your Project Management team So they have NO ilusions as to where the data came from. To often the (Schedule Exrtension) imessage is given by those who are not close to the Coal Facet  or who have an alternative agenda. Communication - but that is a different topic.   

Plan the Work and Work the plan together -  A sucessful Project is where you want to be

Kind Regards

Rod Himsley

Calculating Progress on Work with Scope Changes

by Vera Lovejoy - 15 Jun 2016 - 20:20

I am in favor of segregating the original and revised scopes.  Doing so:

  • allows you to select one or the other when you need detail;
  • supports a request for a time extension;
  • provides conformity between progress claimed on the schedule and in the progress payment; and
  • has the added benefit of informing future estimates.

This is what I recommend:

  1. Leave the original scope in the original schedule activities.
  2. Add the new scope to your schedule, using new activities with new relationships (a fragnet).  The fragnet should include a level-of-effort activity (a hammock) that combines both original and new scopes.
  3. Submit the fragnet as part of your change order request.  This should be the only time client formally receives the schedule with the fragnet until the change order is approved.*
  4. Include the fragnet in your working schedule.  Record progress on the fragnet independent from original scope.
  5. Withhold formal submittal of any schedules including the fragnet until the change order is approved.  Interim submittals of your working schedule (schedule submittals that precede change order approval) should have the fragnet removed.
  6. Once the change order is approved, include the fragnet.  The first of these submittals will become the rebaselined schedule.

* Although informal sharing of schedules among entities can be helpful, be careful about volunteering information without your employer's approval.

Best regards,
Vera Lovejoy

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