Coaching Overview

ABB PM Council
Coaching Project Managers -

Basic Project Management
Contents
1. Project Governance & Setting-up Project Organization

2. Organizing Project Handover from Sales
3. Establishing the Project Charter
4. Conducting Internal Kickoff Meeting
5. Conducting Customer Kickoff Meeting
6. Establishing the Project Execution Plan
7. Engaging the External Stakeholders
8. Managing Internal Interfaces
9. Project Financial & Cost Management
10. Managing Project Risks & Opportunities
11. Documenting Changes & Claims
12. Reviewing & Reporting Project Progress
13. Project Acceptance & Closure
14. Secrets to Project Success
© ABB Group
November 11, 2011 | Slide 2
ABB PM Council
Project Governance &

Setting-up Project Organization
Life-cycle of a typical Project
Qualified
Qualified Capture
Capture Tender
Tender Risk
Risk Project
Project Provisional
Partial Final
Final
acceptance
acceptance acceptance
acceptance
opportunity
opportunity team
team Screening
Screening review
review Award
Award
certificate
certificate certificate
certificate
(yes/no)
(yes/no) (yes/no)
(yes/no) (bid/no
(bid/nobid)
bid) (go/
(go/no
nogo)
go) (yes/no)
(yes/no)
(PAC)
(PAC) (FAC)
(FAC)
Early
Early Pre
Pre - Tender
Tender Service
Service
Lead
Lead Negotiation
Negotiation Execution
Execution Warranty
Warranty
pursuit
pursuit tender
tender preparation
preparation Close
Closeout
out
Key phases / milestones during Project Complexity Calculator

execution
Project Start-up and Kick-off meeting
Design Freeze
Factory Acceptance Test (typical for
Systems business with ABB products and
systems)
Site Start-up
Provisional Acceptance Certificate (PAC)
Final Acceptance Certificate (FAC)
© ABB Group
ABB Project Manager
The Project Manager:

is the managing director of the project, and responsible for total project.
is accountable for everything pertaining to the project, and makes sure that all necessary
decisions and actions are taken at the proper time;
is responsible for the project’s technical, economical and timely end result;
strives to increase sales and is responsible for the relationship with the customer;
secures favorable, cost-effective procurements;
proactively looks and respond both risks and opportunities, and tries to reduce the total
cost of the project;
ensures positive cash flow in the project;
fulfils all contractual obligations and ensures ABB rights according to the contract;
ensures that all interpretation of all agreements is adequately documented;
takes ownership for quality, health and safety issues.
© ABB Group
Senior Management Responsibility for Projects
Ensuring the adequate project organizational design has been established

Providing the resources and building necessary skills and competencies.
Maintaining oversight over the development and acceptance of a plan of action for
each project.
Ensuring that an adequate Management Information System exists, and
contributes to the planning and execution of projects.
Ensuring a system for monitoring, evaluating, and controlling the use of resources
on projects to include an assessment how well projects are meeting their cost,
schedule, and technical/quality performance goals and objectives.
Maintaining an ongoing consideration of where projects have and will continue to
have, a strategic fit in the organization’s mission.
Reference : Project Manager’s Portable Handbook by David I Cleland / Lewis R. Ireland

Project Governance during Execution Phase
Project Complexity Calculator defines the level of Project Review Committee

(PRC) and the frequency of reviews based on Project Complexity Points.
The role of a PRC is to review projects and identify risks and opportunities as well
as risk mitigation measures during execution. The PRC will focus on identifying
and assessing aspects of the project and liabilities undertaken, as well as
assessing how this may affect the profitability of the project under different
scenarios. The PRC will assist in identifying risk mitigation measures.
© ABB Group
Typical Project Organization
Sponsor
Project Manager
Contract & Claims Project Controller

Manager
Interface Manager Commercial Manager
Project Safety Manager Project HR & Compliance

Manager
Project Quality Manager

Supply Chain Manager
Site Manager Project Logistics Manager
Construction Manager Lead Engineer /

Project Engineering
Manager
Commissioning Engineer
/Manager
Project Planner
Design Engineer, Discipline
Engineer, Documentation
Project Cost Controller Engineer / Manager
© ABB Group
Sponsor
Project Sponsor shall be identified for all projects having 650 or more project
complexity points.
The Project Sponsor is generally a senior executive in the organization with the
authority to assign resources and enforce decisions regarding the project.
The project sponsor should be named in the project charter / project plan.
The project sponsor shall not be involved on the project day today activities but handles
the “political level” escalated issues from PM or from Customer.
Sponsor, removes organizational obstacles and handles escalation with the
organization. The Sponsor is representing all stakeholders (Project benefits takers) and
balancing the Voice of Business with the voice of customer.
Total Project Project Sponsor

Complexity Points
< 650 -
650 - 950 LBU or Local Division Manager or Country Manager
950 and above Respective Region Division Manager or Global BU or Division Manager
© ABB Group
Scalability of Project Organization
Total Project Project Manager Level Project Organization

Complexity
Points
<= 200 ABB Certified Associate PM PM does all with support from
respective line functions.
200 ~ 450 ABB Certified Project Manager Identify named people for each block.
May be part-time.
450 ~ 750 ABB Certified Senior Project Manager Identify named people for each block.
Some dedicated and some part-time.
750 and above ABB Certified Project Director Dedicated people for each block.
Identified named people for each of
PM’s tasks may be part time
Exception for new hired Project Managers from other Companies – they can
execute under the supervision of already certified ABB Certified Senior PM/
Project Director till they are certified as per ABB PM Training & Certification
program.
© ABB Group
Project Complexity Calculator & Project Reviews
Total Project Monthly Quarterly

Complexity Points
<= 200 Project Manager Head of LBU Operations
200 ~ 450 + Head of LBU Operations LBU Manager
450 ~ 650 + LBU PRC Local Division PRC
650 ~ 750 + Local Division PRC Respective Global Product Group
PRC
750 ~ 950 + Respective Global Product Group Global BU PRC
950 and above + Global BU PRC Division PRC
PRC: Project Review Committee
© ABB Group
Definition RACI
Responsible (R) Person involved in performing the committed task; has to make
something happen.
Degree of responsibility is defined by the accountable person.
Responsibility can be shared amongst different persons.
Accountable (A) Person having veto power and in charge that task will be performed:
in the right way
with the right outcomes
in the assigned time
with the involvement of right resources
This person has power to make the final decision.
Important: for each task there is one and only “A”.
Consulted (C) Person in charge of providing needed information or advice before the
task is executed or decision is taken.
It can range from a simple information input to a genuine veto power, but
whatever the case the person must always be consulted.
Informed (I) Individuals who always need to be informed after a decision/ action is
taken or a task is executed
© ABB Group
ABB PM Council
Organizing Project Handover

from Sales
A good handover protocol from Marketing & Sales to
Project Management improves the success of the project.
The appointed PM should be involved at least during the
commercial negotiations before the contract signature for
all projects during the sales stage with a degree of
complexity determined by the Project Complexity
Calculator above 450 points having a good chance to be
become a contract.
© ABB Group
Recommended aspects while taking over the project
from Sales and Marketing
Contractual including scope of work.

Commercial
ABB Proposal
Critical aspects to be considered during project execution that has impact on
scope, time and cost.
Execution plan foreseen during the bid phase.
Stakeholder (Customer, End-user, consultant etc., ) expectation, needs and
relationship issues understood during bid phase.
Detailed description of project site / end user location and special requirements like
safety, visa and permits understood during bid phase.
Critical aspects related to local law, regulation and standards (during engineering
and during construction/commissioning)
Technical Hand over check list
© ABB Group
Determining the Project Scope
Project Deliverables
Any measurable, tangible, verifiable outcome, result or item that
must be produced to complete a project or part of a project.
Project Specific Deliverables
What the project requires.
Examples: GA Drawing, Wiring Diagram, Test Report , User
Documentation etc.
Organization Deliverables
What the organization requires
Examples : Internal Project Progress Report, Project Closure
Report etc.
© ABB Group
ABB PM Council
Establishing the Project Charter

Project Planning
Project Planning involves

Defining the internal high level strategy or the Project Charter
for executing the project.
Detailing the strategy for Customer. Called as Project
Execution Plan (PEP).
The Project Manager shall encourage the participation of whole
project team while developing the Project Charter.
Lot of iterations or progressive detailing of the execution strategy
may be needed while developing this project deliverable as the
project team understands the interdependencies and implications
of different components of the Project Charter.
© ABB Group
Project Charter
A formal, approved document that defines how the project is executed,

monitored, controlled and closed.
The primary uses of the project charter are to document high-level planning
assumptions and decisions, to facilitate communication, among internal
stakeholders, and to document approved scope, cost, and schedule baselines.
It may be a summary or detailed, and may be composed of following subsidiary
high-level planning documents:
Executive Overview of the project.
Project Organization
Financial and Cost Plan including Full Cost Model, FOREX/Hedging, Invoicing schedule
and project cash-flow
Project Risk Management Plan
High-level Project Schedule
© ABB Group
Begin with Project Closure in Mind
Acceptance criteria should be clearly defined, i.e.
The customer knows what we will deliver for the money
We know what we must deliver to satisfy the customer and

receive contractual payment
Any open action item including agreed upon time for

completion should be listed and acted upon.
© ABB Group
ABB PM Council
Conducting Internal Kickoff Meeting

Conducting Internal kick-off meeting
Following stakeholders will attend the internal kick-off meeting at a

minimum
Project Manager (chair)
Sales Responsible
Bid/Quotation Responsible
Lead Engineers
SCM
Following stakeholders may attend the internal kick-off meeting as

additional invitees based on project size/complexity
Legal/Contract Manger
Project Planner
Operations Manager
Engineering Manager
Others based on need.
© ABB Group
Effective Meeting Management
Plan Do Review
Meeting Preparation Conduct Meeting Meeting Follow-Up
• Determine • Carry out the • Debrief

objectives and agenda immediately
agenda • Ensure all • Publish minutes
• Plan content and resources • Follow-up on next
process contribute steps
• Determine • Bring to closure • Incorporate
appropriate with next steps, benefits and
players accountabilities, concerns in next
• Define roles and and benefits and meeting plan
responsibilities concerns
• Pre-position key
contributors
• Arrange logistics
• Send out
invitations
Internal Kick-off Meeting
Introduce the project team

Defining Scope
Build schedule
Define Roles and Responsibilities
Review Risk and Opportunities
© ABB Group
ABB PM Council
Conducting Customer Kickoff Meeting

Conducting Customer kick-off meeting
Following stakeholders will attend the Customer kick-off meeting at a

minimum from ABB
Project Manager
Sales Responsible
Lead Engineers
Following stakeholders are recommended to attend the Customer kick-

off meeting at a minimum from Customer
Project Manager
Lead Engineers
Consultant (if applicable)
© ABB Group
Effective Meeting Management
Plan Do Review
Meeting Preparation Conduct Meeting Meeting Follow-Up
• Determine • Carry out the • Debrief

objectives and agenda immediately
agenda • Ensure all • Publish minutes
• Plan content and resources • Follow-up on next
process contribute steps
• Determine • Bring to closure • Incorporate
appropriate with next steps, benefits and
players accountabilities, concerns in next
• Define roles and and benefits and meeting plan
responsibilities concerns
• Pre-position key
contributors
• Arrange logistics
• Send out
invitations
Customer Kick-off Meeting
Clear documentation of agreements and actions provides documentation history

Establish appropriate customer contacts.
Establish the line(s) of communication, who communicate with whom
Establish who has the authority to change the contract.
Establish the Scope of work
Establish the schedule, including obligations from ABB & Customer
Agree on Commercial terms & acceptance criteria
Present project execution plan.
Identify additional information requirement and establish Action Item List, when required
© ABB Group
Begin with Project Closure in Mind
Acceptance criteria should be clearly defined, i.e.
We know what we must deliver to satisfy the customer and

receive contractual payment
Any open action item including agreed upon time for

completion should be listed and acted upon.
© ABB Group
ABB PM Council
Establishing the
Project Execution Plan
Project Planning
Project Planning involves

Defining the internal high level strategy or the Project Charter
for executing the project.
Detailing the strategy for Customer. Called as Project
Execution Plan (PEP).
The Project Manager shall encourage the participation of whole
project team while developing the Project Execution Plan.
Lot of iterations or progressive detailing of the execution strategy
may be needed while developing this project deliverable as the
project team understands the interdependencies and implications
of different components of the Project Execution Plan.
© ABB Group
A formal, approved document that defines how the project is executed,

monitored, controlled and closed.
The primary uses of the project plan are to document planning assumptions and
decisions, to facilitate communication, among stakeholders, and to document
approved scope, cost, and schedule baselines.
It may be a summary or detailed, and may be composed of following subsidiary
planning documents:
Project team and Roles & Responsibilities
Customers’ obligation/deliverables for project, insurance, taxation and warranty
requirements
Project Risk Management Plan
Project Communication Plan including meetings, reports, and who has authority to make
or approve changes to contract
Procedure for changes/claims during the execution of the project
Project Documentation Plan
Project Quality Plan
Project Health, Safety & Environmental Plan
Project Procurements Plan including logistics
Project Schedule
Invoicing schedule
Customer acceptance criteria
© ABB Group
Planning & Schedule Management
Planning is done to secure project deliverables with efficient

utilization of resources
The schedule meets what we have committed to customer.
Customer obligations are identified
Can contribute to margin improvement, if we focus on Critical Path.
Should build in float to allow for unanticipated 'surprises‘.
Schedule should define key milestones to which payments are tied
to ensure positive cash flow throughout the execution phase.
© ABB Group
The Project Execution Plan will be agreed and signed by both ABB and
Customer.
The Execution Plan is followed.
© ABB Group
ABB PM Council
Engaging the External Stakeholders

How to satisfy our customers?
We can prioritize our Customers Requirements by splitting them into two

categories:
Contractual Obligations: these are critical to the project
Wants
Example: Coffee Contractual

Obligations
• Clean cup
• Hot Coffee
Wants
• Chocolate square
• Smiling staff
© ABB Group
Project Stakeholders
Individuals, customers, organizations that have or believe they

have a stake or claim in the project and its outcome.
PM has to
identify the stakeholders and
manage those stakeholders likely to have an influence on the
project outcome.
Customer Sponsor/ SteCo

Finance /
Controller
Project Manager
Internal Advisers
Project
Team Quality Assurance
Contractors
Suppliers Testing Team
Contractors
Suppliers
© ABB Group
Project Stakeholder Needs and Expectations
Determine the needs and expectations of the stakeholders.
Stakeholder Expectations and Needs Objective Criteria

(if any)
© ABB Group
Customer/Stakeholders Satisfaction Management
The PM should always know what the customers/stakeholders current

perception of ABB and the project status is
Customer complaints are used to facilitate improvements
Customers’ engagement can include:
Periodic project review meetings
Periodic project reports
Respond in a timely manner
Meet the schedule
All communication is conducted in a business correct, dedicated, and
positive professional manner
Typical Interfaces to Project Management (external)
Govt. Other package

Consultants
Agencies contractors/ OEM
Customer Project Manager Suppliers
End-User Consortium Sub-contractors

Partners
ABB PM Council
Managing Internal Interfaces

Project Team Management
The PM is the leader of the project and coach of the project

team
With authority and responsibility to manage the project
team, and to delegate tasks
Resource conflicts are resolved, in cooperation with
functional management, without surprises to the PM
Assess project personnel’s strengths and development
needs as input for line management’s formal
assessment
Tuckman’s team stages
Team Description
Stage
Forming Forming phase in team work is the time when the team members
identify the boundaries within the tasks but also in the relationships
between the team members. It is the time of excitement and
enthusiasm towards the task and new team members
Storming The phase of frustration towards the task and team cohesion.
Everything seams a bit fuzzy, people don’t know their places and the
leadership is unclear
Norming Cohesion with in the team develops, task become more clear, roles
are adapted in the team
Performing The team cohesion starts serving the task fulfillment, roles become
flexible and functional. Group energy is aimed towards the task
Adjourning This is the last phase. This is when the team work is done and the
team breaks up. There is celebration of success as well as sadness.
Some people call it “mourning phase”.
© ABB
Month DD, YYYY | Slide 45
Tuckman’s Team Development Stages
Forming Storming Norming Performing Adjourning
Keys to successful team work

Skills and capabilities • Ensure overlapping tasks are minimum between the team members /
stakeholders
Roles and responsibilities Having in place

WBS,
RACI and
Ground rules
Project Binder
Ownership • Clarifying organizational and project objectives.

• Establishing targets
Motivation • Ensure that contribution by each individual is important for the overall project.
Participation • Ensure active participation.

Typical Interfaces to Project Management (internal)
Business/
Quality,
Leader/Manager Project
Health, Safety & Environment
Controller
Supply Management ,
Marketing Manager Production &
Project Manager
Logistics
Site Mangaer
Service Manager
Engineering
Managing Project Interfaces
Fostering teamwork and synergy may require PM to devote sometime

and energy to facilitate interaction among team members.
One of the PM’s tasks is to create a framework – procedures, attitudes,
principles that will help team members manage themselves effectively
in support of the project and the team.
Equip Project team members to use their time wisely:
Make meetings a priority
Encourage interactions as needed for the success of the project
Set team communication guidelines
© ABB Group
ABB PM Council
Project Financial & Cost Management
© ABB Group
Full Cost Model
© ABB Group
Business Cycle
Flow of goods and services, handling of processes, routines, terms &

conditions and quality in all we do
Cash comes out of our Business Processes
C iv il w o rk s ,
e re c tio n & D e liv e ry
Commissioning su b c o n tra c tin g
Preliminary
Acceptance
Final to m e r p a ym
Cu s en G o o d s in
Acceptance
t
A /R tra n sit
A /P
Invoicing Su Acceptance
ppl
Tender ie r p a y m e n t test?
Assembly
Offer & 21
J a n u a ry P u rc h a s in g &
Contract P ro je c t su b c o n tra ctin g
M anagem ent & Engineering
S c h e d u lin g
© ABB Group
Project Cash-flow
Contract conditions:
Project time: 18 m Sales Price/
Payment IN
Payment conditions:
10% advance
Cash Flow
85% at delivery 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
5% retention
3 deliveries:
month 5, month 10, month 14 Production Cost/
Payment OUT
IN Out
Project Invo icing Invo icing P a yme nt P a yme nts Pro je ct Accumula te d P roje ct Pa yme nts Ca sh Ca lcula te d
duration Actual pe r a ccumula te d of re ve nue s IN costs d e bite d co sts p a id OUT Flow Inte re st
month month month pe r month a ccumula te dde b ite d p roj costs p e r monnth a ccumula te d 7%
1 jan-03 1450 1450 0 -500 -500 -500 -500 -500 -3
2 feb-03 0 1450 1450 1450 -1400 -1900 -700 -1200 250 1
3 mar-03 0 1450 1450 -300 -2200 -800 -2000 -550 -3
4 apr-03 0 1450 1450 -300 -2500 -300 -2300 -850 -5
5 maj-03 1825 3275 1450 -400 -2900 -500 -2800 -1 350 -8
6 jun-03 0 3275 1450 -400 -3300 -300 -3100 -1 650 -10
7 jul-03 0 3275 1825 3275 -500 -3800 -400 -3500 -225 -1
8 aug-03 0 3275 3275 -300 -4100 -400 -3900 -625 -4
9 sep-03 0 3275 3275 -4500 -8600 -400 -4300 -1 025 -6
10 okt-03 8000 11275 3275 -900 -9500 -600 -4900 -1 625 -9
11 nov-03 0 11275 3275 -500 -10000 -3000 -7900 -4 625 -27
12 dec-03 0 11275 8000 11275 -500 -10500 -700 -8600 2 675 16
13 jan-04 0 11275 11275 -1000 -11500 -800 -9400 1 875 11
14 feb-04 2500 13775 11275 -300 -11800 -500 -9900 1 375 8
15 mar-04 0 13775 11275 -400 -12200 -900 -10800 475 3
16 apr-04 0 13775 2500 13775 -500 -12700 -300 -11100 2 675 16
17 maj-04 0 13775 13775 -300 -13000 -400 -11500 2 275 13
18 jun-04 0 13775 13775 -200 -13200 -1000 -12500 1 275 7
19 jul-04 725 14500 13775 -13200 -400 -12900 875 5
© ABB Group 20 aug-04 14500 725 14500 -13200 -300 -13200 1 300 8
Causal Analysis - Accounts Receivable Overdue
Poor follow-up with Customer does not Invoice & supporting

Customer after the have finances documentation not tallying
invoice is raised
Ownership to
collect
receivables
Accounts
Receivable
Changes at Customer’s
premises Design Overdue
Short supply changes
Rush Incomplete/ unclear scope

Poor
Delivery
agreement of
milestones /
Poor Terms & Conditions of contract
stake holder
testing Poor integration expectations
of system
Source for
Poor design Requirements of COPQ
reviews customer not met or
satisfied.
© ABB Group
Ensuring Payment from the Customer
Request incremental approvals

Establish clear schedules with payment milestones
Establish acceptance criteria for each payment milestone and
what supporting documentation is required along with the invoice.
Obtain Customer acceptance signatures through-out the project
(wherever possible). This helps to ensure that all deliverables have
been completed and that all customer’s needs has been satisfied
reasonably.
It is cheaper and faster to identify unresolved issues before the
project is completed.
Send copy of the invoice to Customers’ Project Manager and do
regular follow-up.
© ABB Group
ABB PM Council
Managing
Project Risks & Opportunities
Risk & Opportunity Identification
The risk management database has identified possible risks as a

checklist during the tendering stage.
Project Risk Statement during execution

Identifies the causes or sources of the event. Is written so that almost anyone
can understand it.
Is specific and fully defined.
Describes how the risk would affect the project better or worse.
Guidelines
Be specific and descriptive as possible, about the condition, happening or
circumstance that will affect the project.
To the extent possible, relate the source cause or origin of the risk.
State the estimated probability that the risk will actually come to pass.
Include the nature of consequence from the risk event. What will be affected
(schedule, budget, scope, quality or other); and how will be affected.
© ABB Group
Risk & Opportunity Analysis
The process of determining the size and relative importance of

identified risks.
Risk analysis involves describing or differentiating the probability
of occurrence and magnitude of impact for each identified risk
event.
Risk & Opportunity analysis can be done:
Qualitatively (Subjective)
Quantitatively (Likelihood in %, Impact in kUSD)
Risk & Opportunity Prioritization

Ranking risks following assessment / analysis.
© ABB Group
Risk and Opportunity Identification & Analysis
The purpose of risk analysis is to describe the likelihood of occurrence and magnitude
of impact for each identified risk event. This is done in a risk register.
Risk
Likelihood Impact
Risk Event Description (%) (KUSD)
R1
R2
R3
R4
R5
Opportunities
Likelihood Impact
Opportunity Event Description (%) (KUSD)
O1
O2
O3
© ABB Group
Risk Matrix
Classify risks in categories in addition
to checking complexity factors:
Almost Certain
unimportant risks
They do not jeopardize the project objective
nor the execution process substantially
Likely
medium risks
negative impact on the project can be felt by all
involved
Likelihood
Moderate
important risks
They lead to a substantial cost increase and
delay time schedule, but do not jeopardize the
Unlikely
project objective in general
heavy risks
they lead to strong cost overrun and schedule
Rare
delay and thus have heavy impact on project

objective
Insignificant Minor Moderate Major Dramatic

project endangering risks
Impact They jeopardize with high likelihood the project
Less important Critical / project objective and may lead to complete failure
Unimportant Important Urgent /heavy
medium endangering
© ABB Group
Risk Treatment
Risk treatment strategy Description
Avoidance Changing the project plan to eliminate the risk or protect the
project objectives from its impact.
Mitigation Seeking to reduce probability and /or impact of risk below
acceptable threshold.
Transference Seeking to shift the impact of the risk to a third party together
with a ownership of response. e.g
Taking insurance
Outsourcing.
Making provisions e.g. for warranty.
Acceptance Accepting the risk. The project team has decided not to deal with
the risk.
(Or) the team is unable to identify any other suitable risk
response strategy.
© ABB Group
Develop Risk Treatment Strategy
using all possible options
Risk Risk Treatment Strategy
Avoid Mitigate Transfer
Minimize Probability Minimize Impact
R1
R2
R3
R4
R5
© ABB Group
Opportunity Treatment
Opportunity Description
Treatment Strategy
Ignore The project team has decided to ignore
this opportunity.
Pursue Try this.
Enhance Seeking to improve the probability and/or
impact of opportunity.
© ABB Group
Develop Opportunity Treatment Strategy
using all possible options
Opportunity Opportunity Treatment Strategy
Pursue Enhance Ignore
Maximize Maximize
Probability Impact
O1
O2
O3
© ABB Group
Risk Monitoring & Review
Executing Risk Response Strategies

Execute a contingency plan
Accept consequences of the problem
Mitigate it to soften the impact
Execute a work around
Response to an unforeseen problem that is not identified
earlier during planning stage (Contingency Plan).
© ABB Group
Communication and Consultation
Risks and Opportunities reviews are overseen and

coordinated by Project Manager and Project Controller.
Project Controller determines the risk provisions and
contingencies for the risks identifies with Likelihood as
“Almost certain” and “Likely” as per the latest Accountancy
Rules and Guidelines (AR&G).
The Project Manager will open and maintain a Risk
Register throughout the Project.
All team members and Project Review Committee (PRC)
are made aware of top 5 risks and opportunities and risk
treatment strategy and implementation plan.
© ABB Group
Continue to search for weak signals of risks
Management and customer determine the further priorities

Actions plans need to be developed and implemented
Follow up monthly / frequently by PM and Project
Controller
Substantial deviations must be reviewed under contractual
aspects too
Documentation and reporting to be decided by PM
© ABB Group
ABB PM Council
Documenting Changes & Claims

Change Orders and Claims
Change Orders
Cost
Schedule
Scope
Price
Terms & Conditions
Validity
Claims
A right to demand that another contract party “does” or
“does not” do something
Claims are caused by discrepancies or impediments in
contract performance.
© ABB Group
Change Management
Project Team
Log Changes, as they arise
Categorize impact as positive, negative or neutral to project cost, schedule,
and/or scope in the change order log.
Manage change in accordance with established procedures.
PM/Site Manager to keep track of Change Request Log
No changes are made without appropriate written approval & no work shall
start or stop before approvals are in place.
Confirm authorization on ABB and Customer side
Specify the change with reference to the contract documents
Avoid dispute with the customer
© ABB Group
Change Management
Project Manager Responsibilities

Accountable for Change Management
Know the entire contract, not just the statement of work.
Identify the change or claim
Evaluate the Project Change and/or Claim
Confirm that all contract information is reviewed.
Develop strategy
Get approvals – Internal & External
Incorporate Change
Professionally handle Changes & Claims
© ABB Group
ABB PM Council
Reviewing & Reporting

Project Progress
Focus/Process of Management Reviews (1/2)
“Bad news fast . . . good news later”

Critically evaluate Actual or Potential deviations to Scope, Plan and
Budget
A ‘tough & challenging’ inquiry focused on risks & potential risks to
project’s success
Actions to resolve current issues & risks and potential issues & risks
Questions should not be viewed as challenging a person’s
capability or performance rather, questions are focused on business
processes
© ABB Group
Focus/Process of Management Reviews (2/2)
Illustrative
10% of time 80% of time 10% of time

Project Status Top new issues since last review Improvement Opportunities
- Actions from previous review(s) - Impact on scope - Schedule
- Risk mitigation status vis-à-vis - Impact on costs / schedule - Margin
orig. risk assessment - Actions taken - Follow-on work
- Variances: schedule milestones
- Variances: deliverables • Change management Management support
- Variances: financials vs. budget - Scope, deliverables,
resources, schedule,
cost, other
Risks or potential risks and

actions to mitigate risks
- Technical / design
- Resources, customer,
suppliers, schedule
Actions w/ dates and responsible
© ABB Group
Guidelines for Reviewers
Provide an objective rather than subjective status evaluation of the project status.
Ensure the report information is consistent across time.
Seek the relevant information on timely basis.
Request the use of appropriate graphics and figures to condense and streamline
the project information.
Critically evaluate actual or potential deviations to scope, plan and budget.
A ‘tough & challenging’ inquiry focused on risks & potential risks to project’s
success. Questions should not be viewed as challenging a person’s capability or
performance rather, questions are focused on business processes.
Define actions to resolve current issues & risks and potential issues & risks.
© ABB Group
GG/LC-055 Project Reviews
Periodic project reviews are key for successful project execution

PM will present project status-to-date to the LBU project review committee
Conduct joint project reviews for projects with more than one LBU (SteCo)
& for large and/or critical projects – with BU management
Document Project Review Content
Project H&S, status & progress
Project planning, scheduling & resources
Engineering, quality & procurement status
Change, Site & Logistics management
Project calculation (CTC forecasting)
Risks, Opportunities & Claims
Project warranty, closeout & action plan
Project Review Frequency
Conduct minimum bi-weekly reviews, monthly LBU project reviews,
quarterly joint LBUs‘ project reviews
Link to GG/LC-055
© ABB Group
Project Review Content (1/6)
Project Status and Progress Project Status and Progress

Critical Issues to be reviewed Tools & Sample Reports
Project contractual issues/ Customer relationship & S-Curves
deliverables/Claims
Project summary schedule with identified critical path
Review of contractual milestone deliverables status &
Project cost report & Change order control log
summary project schedule
COPQ & CCRP reports
Overall project cumulative curves and histograms and
break down for engineering, procurement and
construction ( bulk quantities).Incremental per cent
complete ( planned versus actual) for the period for
engineering, procurement. manufacturing &
construction
Root cause analysis for any shortfall in project
accomplishments and planned remedial actions for
acceleration in the next period
Project forecast, major cost variances & Change order
log with current status
COPQ status & CCRP accomplishment for the period
© ABB Group
Project Health & Safety Project Planning, Scheduling & Resources

Critical Issues to be reviewed Critical Issues to be reviewed
Project Safety plan & goals & performance Overall summary project schedule and critical path
Sub-contractor safety program Schedule progress update procedure & status
reporting including vendors and sub-contractors
Safety training status – ABB / Sub-contractor’s
personnel Critical activities –Engineering, Procurement ( Vendor
schedule) , Manufacturing, Construction impacting
Incident / Lost time investigations process
project completion date
Recognition and communication of successful
Critical sub-contractor activities
performance
Resource allocation procedure
Tools & Sample Reports
Monthly Project safety report with incident & loss time
reporting Project summary schedule report with critical path
Remedial action report Target Schedule ( Baseline) versus Actual Schedule
comparison
Safety training status report
Planned resource allocations versus Actual resource
expenditures
© ABB Group
Engineering and Quality Procurement & Deliveries

Finalized engineering scope – Drawing list, Use of a “Procurement Plan” for all materials and sub-
Specification & Procurement list ,work breakdown contracts
structure (WBS) elements with clear scope definition
Good base of approved sources of supply that have
Approved budgets for engineering consistent with WBS been qualified through a supplier qualification process.
Engineering schedule with interdependencies for long
lead delivery of equipment, manufacturing & erection
Freezing of conceptual design & customer buy out prior
to start of detail design Project Procurement Plan
Recalculation / review of performance guarantee criteria Supplier qualification assessment form
internally & with customer
Supplier metrics
Monitoring & approval of sub-contracted engineering
Bid tabulations for major contracts
Typical Engineering WBS with budget allocation
Engineering schedule
Formal notification to customer for freezing of
conceptual design
© ABB Group
Site and Logistics Management Project Warranty and Close Out

Arrangements for temporary facilities / utilities at site Clear definition for the start and finish of warranty
period in the contract
Site warehouse/material storage
Avoidance of “Ever Green” clause during the warranty
Site transportation logistics– highways, railroad & other
period
Site communications/ computer support for transmittal
Basis of calculation of the warranty provision
of correspondence and technical documentation
Project close out protocol and associated customer
Site security/ medical care & food service
acceptance criteria for FAT ( Factory Acceptance
Drawing revision control ( ABB & vendor drawings) for Test) & SAT ( Site Acceptance Test)
“Approved for Construction” drawings
Contractual Document submittal requirement ( As-
Availability of site labor – union / non-union Built drawings & ABB supplied equipment manuals,
vendor drawings/manuals etc)
Site sub-contract award & monitoring of sub-contract
production & productivity Guideline for closing the project in the ERP system
Tools & Sample Reports Tools & Sample Reports

Site mobilization check list Monthly report for warranty management
Drawing revision control log Project cost report for use of the warranty provision on
an ongoing basis
Equipment & Material delivery schedule
Check list for project document submittal
Construction progress reports
© ABB Group Check list for project close out in ERP
Customer & Internal Changes Claims

Process/procedure of maintaining the integrity of project Customer’s claims – basis evaluation with reference
baselines – configuration, scope, cost and schedule. to contract terms & conditions
Review and formal approval of all changes prior to
Sub-contractor’s claims – basis evaluation with
incorporation in the project
reference to contract terms & conditions
Technical / Legal review ( internal ABB) and proposed
Documentation of all design review by customer and claim disposition strategy
supplier coordination meetings for potential change in
scope
A good system of logging all instances and deviations Tools & Sample Reports
from the contractual agreed scope and associated
Overall claim status log– Customer / Sub-contractors
cost/schedule impact on the project
& ABB’s claim with cost & schedule impact analysis
Pro-active scope control in analyzing the contract in
terms of “grey” areas of scope and/or possible areas of
additional scope increases

Change order form and change Order Control log
© ABB Group
Project Calculation Risks and Opportunities

As-Sold budget, Approved Change orders and Revised Scope growth due to poor definitions
Control budget
Technical & performance guarantee related
Accuracy& integrity of the reported Actual Cost
Potential Schedule delay
Basis of Estimate At Completion calculations and cost
Potential cost overrun & other project financial risks
forecast
Contractual T & Cs related risk elements ( warranty,
Use of Risk provision and Contingency
indemnification, liabilities, cancellation, payment
Hedging for any purchase/payment in foreign currency schedule)
Use of proper calculated interest Inappropriate customer demand/involvement
Variance reporting and root cause analysis Material /Labor cost savings
Invoicing, payment & cash flow monitoring Change orders
Contractual Incentive payments
Project cost report with Accompanying cost variance & Tools & Sample Reports
risk/opportunity analysis report
Risk mitigation check list
Opportunity list.
© ABB Group
Signs of a Challenged Project
Lack of clear understanding of the work to be accomplished to complete the project.
Reports that assume a higher productivity rate for the future than is really being
accomplished now.
Overly complex plans that cannot be understood by the entire project team.
Overly simple plans that do not give adequate guidance to meet the project objectives and
delivering benefits of the project.
High Rate of Change Requests with low rate of closure on changes
Excessive rework being performed and little actual progress on planned work.
Surprises with new work that scope is expanding or is not understood.
Project team members are uncertain as to their work to be performed in the future.
Project team members waiting for instructions on what to do next.
Project team members stressed and fatigued from working on excessive number of hours.

Assessing a Challenged Project
Assess the methodology, technique, standards and tools being used.

Determine whether the right resources are assigned to the project
Determine whether the plan is adequate to support the project’s work
Review the status and progress of the project’s work.
Review the project plan for adequacy.
Review the project plan for adequacy
Review the status and progress of the project’s work
Determine whether the plan is adequate to support the project’s work
Determine whether the right resources are assigned to the project
Assess the methodology, technique, standards & tools being used

Project Recovery
Correct the “Process Flaws” to ensure a capability to complete the project.

Revise the Project Plan to reflect what can be done within the constraints.
Replace a project leader who is either incapable of performing the work or
who is stressed through fatigue. Retain the project leader as source of
information if a new one is assigned to the project.
Add resources to the project team only after assessing the need for new
resources.
Resolve issues and limit assumptions in the project plan to simplify the
recovery solution.
Avoid high risk areas where possible and have contingency plans for those
that must be taken.
After the recovery solutions are formulated into a new project plan,
assemble all the project team and brief them on the new guidance.

ABB PM Council
Project Acceptance & Closure

Life-cycle of a typical Project
Qualified
Qualified Capture
Capture Tender
Tender Risk
Risk Project
Project Provisional
Partial Final
Final
acceptance
acceptance acceptance
acceptance
opportunity
opportunity team
team Screening
Screening review
review Award
Award
certificate
certificate certificate
certificate
(yes/no)
(yes/no) (yes/no)
(yes/no) (bid/no
(bid/nobid)
bid) (go/
(go/no
nogo)
go) (yes/no)
(yes/no)
(PAC)
(PAC) (FAC)
(FAC)
Early
Early Pre
Pre - Tender
Tender Service
Service
Lead
Lead Negotiation
Negotiation Execution
Execution Warranty
Warranty
pursuit
pursuit tender
tender preparation
preparation Close
Closeout
out
Key phases / milestones during execution

Project Start-up and Kick-off meeting
Design Freeze
Factory Acceptance Test (typical for Systems business with ABB products and systems)
Site Start-up
Provisional Acceptance Certificate (PAC)
Final Acceptance Certificate (FAC)
© ABB Group
Acceptance / Takeover
Acceptance criteria is clearly defined in the Project Execution Plan, i.e.

We know what we must deliver to satisfy the customer and receive
contractual payment
Any open action item including agreed upon time for completion should
be listed and acted upon.(Exit Plan )
Warranty / Aftercare
Means are taken to ensure the customer knows how to get support with
service and parts
Applicable local organization knows about the deliveries in order to provide
after sales support
Customer shall be notified when:
Warranty has started
Warranty ends
Tasks involved during Closing
1. Organize Final Acceptance (FAC) and take over by customer

2. Issue final invoice and collect money
3. Close Bonds and Bank Guarantees
4. Close parent company guarantee (if applicable)
5. Close Permanent Establishment activities (if applicable) including tax matters.
6. Close project related consortium agreements (if applicable)
7. Close procurements
8. Archive key contractual documents
9. Archive project related technical documentation
10. Publish final project performance report and update ProMIS
11. Organize handover to Service
12. Organize lessons learned workshop and provide feedback.
13. Close the project in Business System (SAP)
14. Formally close the project.
© ABB Group
ABB PM Council
Secrets to Project Success

Secrets to Project Success
Understand scope of work

Conduct Internal Kick of Meeting
Conduct External Kick of Meeting
Get Agreement on Project Execution Plan (PEP)
Follow PEP
Meet Project Schedule
Communicate, Communicate, Communication
Adapt to changing situations
© ABB Group

Coaching Overview

Enviado por

Dados do documento

Direitos autorais

Formatos disponíveis

Compartilhar este documento

Compartilhar ou incorporar documento

Opções de compartilhamento

Você considera este documento útil?

Este conteúdo é inapropriado?

Direitos autorais:

Formatos disponíveis

Coaching Overview

Enviado por

Direitos autorais:

Formatos disponíveis

ABB PM Council

Coaching Project Managers -

1. Project Governance & Setting-up Project Organization

Project Governance &

Key phases / milestones during Project Complexity Calculator

Final Acceptance Certificate (FAC)

The Project Manager:

Ensuring the adequate project organizational design has been established

Reference : Project Manager’s Portable Handbook by David I Cleland / Lewis R. Ireland

Project Complexity Calculator defines the level of Project Review Committee

Contract & Claims Project Controller

Interface Manager Commercial Manager

Project Safety Manager Project HR & Compliance

Project Quality Manager

Site Manager Project Logistics Manager

Construction Manager Lead Engineer /

Total Project Project Sponsor

Total Project Project Manager Level Project Organization

Total Project Monthly Quarterly

Organizing Project Handover

Contractual including scope of work.

Establishing the Project Charter

Project Planning involves

A formal, approved document that defines how the project is executed,

Acceptance criteria should be clearly defined, i.e.

The customer knows what we will deliver for the money

We know what we must deliver to satisfy the customer and

Any open action item including agreed upon time for

Conducting Internal Kickoff Meeting

Following stakeholders will attend the internal kick-off meeting at a

Following stakeholders may attend the internal kick-off meeting as

Meeting Preparation Conduct Meeting Meeting Follow-Up

• Determine • Carry out the • Debrief

Introduce the project team

Conducting Customer Kickoff Meeting

Following stakeholders will attend the Customer kick-off meeting at a

Following stakeholders are recommended to attend the Customer kick-

Meeting Preparation Conduct Meeting Meeting Follow-Up

• Determine • Carry out the • Debrief

Clear documentation of agreements and actions provides documentation history

Acceptance criteria should be clearly defined, i.e.

The customer knows what we will deliver for the money

We know what we must deliver to satisfy the customer and

Any open action item including agreed upon time for

Project Planning involves

A formal, approved document that defines how the project is executed,

Planning is done to secure project deliverables with efficient

The Execution Plan is followed.

Engaging the External Stakeholders

We can prioritize our Customers Requirements by splitting them into two

Example: Coffee Contractual

Individuals, customers, organizations that have or believe they

Customer Sponsor/ SteCo

Determine the needs and expectations of the stakeholders.

Stakeholder Expectations and Needs Objective Criteria

The PM should always know what the customers/stakeholders current

Govt. Other package

Customer Project Manager Suppliers

End-User Consortium Sub-contractors

Managing Internal Interfaces

The PM is the leader of the project and coach of the project

Forming Storming Norming Performing Adjourning

Keys to successful team work

Roles and responsibilities Having in place