Duration
1 day
Participants are encouraged to bring their notebook PCs, preferably installed with MS Excel 2007 and MS Project 2007
Workshop Overview
The workshop intended for anyone in technical and non-technical work areas, and who need to acquire a high competency in contractor management in areas of risk management and performance management.
The workshop is carefully designed to provide the best mix of experience, theory and practice in an adult-learning environment. Formal presentations will be brief and used mainly to introduce key concepts and significant elements of contractor management in risk and contractor performance measurement. Emphasis is on practical applications through “hands-on” action learning in groups. Maximum opportunities will be given to participants to inject their own examples and issues into the workshope and continually relate the learning to their own context and industry.
Participants are encouraged to bring their contractor problems to the session and work in small groups for consultative discussions and possible solutions. The use of mainstream project management software, spreadsheet, and templates will be used to help participants better understand and visualize key concepts. Workshop templates, forms and checklists can be downloaded and the participant may freely use or modify them for use in his/her organization.
Objectives
- To use a set of prepared template for “Threat Risk Identification, Assessment and Response” to aid participants visualize and rank contractor management risks.
- Participants anticipate and identify potential contractor and contractor-related project problems and issues, rank the risks, brainstorm for possible risk responses, study impact of risks to schedule/cost/quality/scope including evaluating risk response feasibilities, and track/control risk response implementations.
- Participants will understand the macro and micro effects of increasing threat risks through systems thinking.
- Participants will strategize any one or a combination of risk response strategies that is/are appropriate risk response(s) to counter threat risks.
- To conduct controls using advanced tools like Earned Value Analysis, in addition to the Gantt Chart.
- Participants will appreciate and enforce management reporting using Earned Value Measurement (EVM) as an analytical and reporting system that can regulate schedule and cost performance variances and reduce deviations.
- The EVM can also be used to indicate the contractor’s performance of implemented change(s) and executed risk response(s) to be in line with expectations.
At the end of the course, participants will be able to:
- Have an advanced set of contractor risk and performance management tools and techniques.
- Have a ready set of working templates, and visualization tools.
Requirements & Items:
Post-It notes
Flipchart paper
Flipchart easels
Whiteboard
Computer projector (up to XGA resolution)
Writing paper
Whiteboard markers
Paper tape
Pencils
Course material in hard-copy
Logistics:
Round table seating 5-6 participants.
Detailed Course Outline
Morning/Session 1: Contractor Risk Management
- Review of the Work Breakdown Structure.
- Principles of project uncertainties.
- Definition and characteristics of “risk”.
- Variation of risk within the project management lifecycle.
- Elements and factors of risk.
- Types of risk – external, cost, schedule, technology, operation risks, etc.
- Components of risk management.
- Risk identification by work/activity
- Activity: Participants may present their contractor project or use a prescribed case
- Participants in groups work by decomposing the project using Work Breakdown Structure, brainstorm to identify threat risks, and using Ishikawa Diagramming technique to uncover possible causes to threat risks.
- Risk classification into types of risk.
- Risk assessment (using probability of risk occurrence, and impact consequences).
- Risk expected value analyses.
- Risk trigger (determining when the risk occurs).
- Risk impact studies (determining how the risk will impact on schedule, cost, quality and scope of the project).
- Prioritizing risks.
- Monitoring high profile risks – risk watch list.
- Risk response strategies – risk avoidance, mitigation, transfer/deflection, and acceptance.
- Activity: Establish the expected risk reserve (contingency funds) to set aside
- Activity: Creating a Project Risk Register (using a pre-formatted template).
- Activity: Provide risk response(s) for each threat risk
- Risk response control.
- Executing risk strategies.
Afternoon/Session 2: Contractor Performance Measurement
- Earned Value Measurement (EVM) and variance in contractor schedule and cost performanceError! Bookmark not defined.
- What Is Earned Value Measurement?Error! Bookmark not defined.
- Activity: EVM Game: Oil/Gas Pipeline Construction
- The three essential performance indicators:
- Planned Value (PV)
- Earned Value (EV)
- Actual Cost (AC)
- Activity: Analyzing and interpreting EVM spreadsheet statistics and chart curves to determine contractor’s performance in schedule and cost expenditure
- Forecasting indicators (derived from PV, EV and AC indicators):
- Project Schedule At Completion (SAC)
- Project Estimate At Completion Cost (EAC)
- Project Estimate To Complete Cost (ETC)
- Activity: Forecasting contractor’s work completion date and expected costs
- Activity: Forecasting the contractor’s adequacy of remaining time and/or budget to finish the work on time
- Putting it all together
- Demonstration: Getting MS Project 2007 to capture EVM indicators and presenting them into MS Excel 2007 as an EVM Chart
- Activity: Participants may present their contractor project or use a prescribed case. Participants in groups work by constructing an EVM Chart for reporting contractor performance
- Completing the understanding how EVM can track contractor schedule delays and ahead-of-schedule, over-spending and under-spending; and their effects to the work performance
- Implementing EVM in your organization
- Understanding the need for real-time schedule and cost data
- Discussion: How to align your organization’s information databases for EVM
Programme scope, delivery arrangements and suitability are confirmed during enquiry.