SHELL RESTRICTED

Project Management Discipline Guide

Capital Project Scheduling &

Schedule Management

Project Standard 064

Document History

Date Issue Reason for change Author/ Reviewer Approved

Contributor
06 May 09 A Issued for Use P. Bowman N. Wright H. Mes

21 Dec 09 B Update for cross- C. West N. Wright H. Mes

business use G. Willner

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The signed copy of this document is held in iPMS by the PTE Project Services organisation.
All paper copies are uncontrolled

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Table of Contents
1. Introduction 3
1.1 Objectives 3
1.2 Terminology 4
1.3 Scope and Deviation Process 4
2. Application 5
3. Schedule Organisation and Plan 6
3.1 Introduction 6
3.2 Schedule Management Organisation 6
3.3 Project Cost & Schedule Management Plan 8
3.4 Schedule Management Tools 8
4. Scheduling and Schedule Control Activities 9
4.1 Preparation of a Network and Schedule 9
4.1.1 Hierarchy and Structure 10
4.1.2 Breakdown Structures 13
4.1.3 Components of a Project Schedule 14
4.1.4 Building the Network 16
4.1.5 Resource loading the schedule 16
4.1.6 Project Schedule Risk Assessment 17
4.1.7 Baselining the Plan 18
4.2 Scheduling Control 19
4.2.1 Scheduling System 19
4.2.2 Detailed Engineering 20
4.2.3 Procurement 21
4.2.4 Construction 22
4.2.5 Commissioning and start-up 23
4.3 Project Schedule Benchmarking 24
4.4 Project progress reporting 25
4.4.1 General 25
4.4.2 Schedule progress reports 25
4.5 Scheduling Roles & Responsibilities 25
4.5.1 Customer 25
4.5.2 Project Manager 25
4.5.3 Project Engineer Leads 26
4.5.4 Construction Focal Point 26
4.5.5 Engineering Focal Points 26
4.5.6 Project Scheduling Representative 26
4.5.7 Construction Contractor 26
4.6 Project Schedule Maintenance 26
4.7 Schedule Reviews 27
4.7.1 Peer Reviews 27
4.7.2 Estimate and Schedule Assurance Reviews (ESAR’s) 27
4.8 Schedule Definitions 28
4.9 Schedule Management of Contractors 29
Appendix 1: References 30
Project Standards and Guides: 30
Project Cost & Schedule Management Procedures 30

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1. Introduction
1.1 Objectives
Project Guide 04 Capital Project Scheduling is one of a series of guidance documents that
form part of the Opportunity Realisation Process (ORP). Application of the ORP is mandatory
and provides for a standardised Governance, Assurance and Delivery process for capital
projects undertaken by Shell Group Companies, Affiliates and Joint Ventures where Shell
takes the lead project management role. The project Standards (PS), project Guides (PG)
and Value Improvement Practices (VIP) are an integral part of the project assurance and
delivery processes.
It supports mandatory Project Standard 04 in providing detailed guidance on the application
of the Project Scheduling processes.
This PG also acts as a handbook for Project Management Services and the Project Teams
on how and when to execute the relevant activities, and also specifies the contents and level
of detail for the deliverables. It should be used through appropriate phases of the project
development to provide guidance, procedures and/or checklists for relevant subjects. In
addition, it will assist in creating an awareness of relevant aspects of the project development
and implementation process and in transferring knowledge on the subject to other parties,
such as project sponsors, stakeholders, contractors, etc.
It should also be seen as the beginning of understanding the scheduling process but is not
intended as a full scheduling manual.
For effective management of a Project the relationship between Schedule, WBS, Cost and
Scope is fundamental to good control.
Project Scheduling and Schedule Management is a key element of Project Management,
with the primary objectives of:
 Producing quality schedules, by ensuring that the data and methods applied by the
Shell project support department are clear and that a consistent language and
methodology is used when discussing schedules and their format. This guideline
should also assist users in assembling the required input data for the various
schedules, project benchmarking and data feedback.
 Ensuring that the project development and execution activities are executed in a
controlled and assured way to a quality that is consistent with the delivery of the
project objectives in terms of meeting HSSE, schedule, cost, quality and other targets
(“Doing the Project Right”);
 Ensuring that Value Improving Processes, Project Standards, Best Practices and
Lessons Learned are being applied consistently and appropriately,
 Enabling business targets to be met, with specific emphasis on Delivering Top
Quartile Projects.
 Helping to ensure compliance with Group policy and external requirements including
country specific and customer requirements,
 Providing a road-map for project managers, engineers, HSE professionals, Project
Assurance engineers and the Business Opportunity Manager (BOM).

The purpose of this PG on Project Scheduling is to define the methods and data in
scheduling projects and as a guideline for their building, reading and analysis. Whilst this
guide addresses project development and implementation, it is also intended to show the
scheduling requirements in each phase of a project.

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The process described in this Project Guide is complementary to the quality management
system of the executing organisation and to the governance processes of the asset owner
(e.g. Upstream, Downstream, JV’s, Third Parties, etc), such as Value Assurance Reviews
(VAR’s), ESAR’s, Multi-Disciplinary Challenge Teams, Investment Committees and Decision
Review Boards (DRB’s).

1.2 Terminology
The distinction between planning and scheduling is described below:

 PLANNING: The laying out of a course of action, milestones and activities required in
order to achieve the desired objective.
 SCHEDULING: The incorporation of time and resources into the plan to form a fully
scheduled and time analysed network from which the desired control mechanisms
can be derived. The deterministic durations used in scheduling represent the most
likely duration for an activity. The validity of the deterministic durations can only be
substantiated by a schedule risk analysis exercise. To avoid the schedule becoming
simply an enormous number of activities with unclear correlation between them, it has
to be based on the application of modern scheduling techniques It is essential that the
basis upon which a particular schedule is made and the purpose for which it is being
prepared is clearly defined and recorded.
 SCHEDULING CONTROL: encompasses the various methods to manage, monitor,
progress, revise and report against the schedule to be able to make strategic
decisions regarding the Progress of the Project and identify corrective actions if
necessary.

1.3 Scope and Deviation Process

This Project Guide (PG) sets out the steps to be taken and provides guidelines for preparing,
reviewing and monitoring schedules.
Application and use of this PG can ensure a measure of uniformity of approach and an
increased degree of co-operation between all concerned in the provision and use of project
schedules. By interchange and comparison of data the continuous improvement cycle should
be facilitated with resultant savings in time and effort and improvements in the quality of the
schedules prepared.
Any deviations from Project Standard 04 will need approval by the relevant authority level, as
defined in the Quality Management Systems of the relevant businesses.

Experience has shown that poor planning by owner companies leads to either late delivery of
the project or to additional costs to accelerate a project, or both, resulting in significant
reduction in the value realisation of the project. The development and implementation of
projects, whether new construction (“Green field”) or revamp projects (“Brown field”) are
usually not executed by the owner of the assets, but are contracted out to specialised
companies, commonly referred to as “Contractors”. However, to plan and control a project, a
substantial effort is also required from the owner, since the contractor(s) will have a different
perspective and value drivers than the owner, which may depend on the type of contract. In
addition the owner undertakes specific activities, such as front-end development and study
work, surveys, organisational, commercial and other management activities. Furthermore,
after completion of the project, the facility has to be prepared and handed over for
commissioning and start up. Even if a managing contractor is selected, a full project overview
is not always obtainable outside the owner organisation.

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2. Application
The principles and methodology presented in this guide are applicable to both large, complex
projects and – appropriately scaled – to smaller projects. It covers Greenfield, Brownfield,
Revamp, On-shore and Off-shore projects. The application of the Project Guide needs to be
adapted to suit the risk profile of the project, as determined by its size, complexity, location
and business environment.
The means of achieving fit-for-purpose application is through an open discussion with the
Project Services Team and Engineers on the project. At this point, the risks and sensitivities
of the project are reviewed and appropriate consideration of the schedule impact and
resource requirements agreed. The outcome of this discussion is documented in the Project
Execution Plan (PEP). The project team prepares the draft, fit-for-purpose PEP, which is
reviewed and updated in open discussion and approved by the relevant authority level.
Issues and factors taken into account in this discussion include:
 Degree of complexity and novelty of the project
 Maturity of the location project delivery processes
 Experience, competence and availability of resources
 Level of stability and supportive social and political context
 Any high risk issue (e.g. hazardous process, new technology, social unrest or
environmentally sensitive location)
 Specific scope issues (e.g. Brownfield/Greenfield, onshore/offshore)
 Joint venture projects with different assurance requirements
 Projects where project stages are combined.
 Schedule-driven projects
 Level of Turnaround Integration
 Size of project
 Project Implementation Model
 Business Environment
 Commercial and Economic Environment
 Lessons Learned from previous projects

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3. Schedule Organisation and Plan
3.1 Introduction
Capital projects usually involve large outlays of money over a significant period of time.
Funds are limited, so due consideration has to be given to the direction of all investments.
Choices most frequently will be based upon profitability criteria of which the project schedule
is a fundamental element. Therefore, before the project can be supported and considered
sound, every effort should be made to ensure that project schedules are a realistic forecast
of actual durations. Also, decision makers should be made fully aware of any limitations or
risks inherent in such plans.
The organisation of the Planning/Scheduling section in a project team will depend on the
contracting strategy and the size/complexity of the project. Often, for larger projects, this
section, which is responsible for the preparation and maintenance of plans and schedule,
forms part of the larger control department, which is accountable for the management of
costs, schedule, administration, procurement, quality, insurance and law/contract matters in
the project. The project services manager reports to the Project manager. For smaller
projects, the project scheduling engineer may report directly to the Project Manager, either as
a direct member of the project team or as a part-time member, utilised from a matrix
organisation of another project.
During the various phases of the project, a comparison of the schedule compared to the
original plan is vital to enable the project to be effectively controlled and deviations from the
plan to be identified early, thus enabling corrective action to be taken. It is, therefore,
important to construct the plan from the outset so that the planner can monitor, control and
forecast the execution of the project with respect to time, resources (e.g. work-hours,
material availability, critical equipment, etc) and cost.

The Project Execution Plan document must contain an integrated schedule reflecting the
agreed project breakdown and indicating the key dates and durations for all project activities.
The schedule must reflect ALL pertinent project activities at the appropriate level required to
define the project. The plan must include all significant multi-discipline interfaces, studies,
surveys, reviews, approvals, inter-departmental interfaces, milestones, and decision points.
Throughout the various phases of the project a description of how the project will be
managed should be included in the relevant sections of the Project Execution Plan and
associated Project Cost & Schedule Management Plan. Amongst others the strategy with
regard to cost and schedule management, the financial authority levels, the project
management of change procedure and the philosophy of use of allowances and
contingencies should be established.
The Project Cost and Schedule Management Plan (see Section 3.3) should be subject to
review by all relevant parties, which could include a peer review in order to identify the
strengths, weaknesses, opportunities and risks in the systems and procedures of cost and
schedule management.

3.2 Schedule Management Organisation

The basic tasks of the Project Schedule Management group within the project team are to
establish, assure, analyse, report and communicate progress against realistic targets and to
provide the project team with the tools to assist in meeting these targets, i.e. amongst others
the required (risk) analyses of both status and trends. A pro-active approach needs to be
followed and demonstrated, in which timely solutions of potential problems are offered.

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A list of the accountabilities and responsibilities of the Schedule management section within
the project team are given below and these should be reflected in the appropriate job
descriptions and sufficient personnel to meet these obligations included in the Project
Staffing plan:
 Assist setting up, implementing and keeping up to date of the Project Cost &
Schedule Management Plan
 Assist setting up the controls requirements in the contracts
 Setting up, monitoring and reporting of the required schedule management systems:
physical progress and input to cost progress (VOWD)
 Ensuring that the Contractor operates in compliance with these systems
 Initiating, coordinating and administrating of internal audits of Contractor’s scheduling
performance on a regular basis and where necessary liasing with financial and
commercial team members and external auditors
 Reporting on a regular basis to project management and liasing where required in this
context with the other disciplines in the project team and in Company’s organisation
 Carrying out time and cost risk analyses if and when required
 Review the schedule baselines (benchmarks) on an ongoing basis
 Defining and administrating the detailed planning for all Owners activities
 Contributing to Verification of Contractor’s invoices, especially re Progress payments
etc.
 Participating in reviewing scope changes, extra work authorisations, change orders
and the like; carrying out schedule impact analysis in this context if and when
required
 Updating the schedule at monthly intervals during the project and generating revised
completion dates.
 Identify corrective action to retain schedule as necessary.
 Providing the project team timely with adequate schedule information and assist
technical project team staff on matters related to field planning and schedule issues
 Coordinating all manpower planning activities and productivity for the project team
and for the organisation of the Contractor, from a timing and a scheduling point of
view
 Provide input to the focal point for preparing and issuing the monthly progress report
 Participating in the regular progress and steering committee meetings
 Maintaining such records as will be required for the compilation of the final project
close out report
 Focal point for providing project feedback into the project schedule databases
This list is not exhaustive and should be taken as a guide only. For example, depending on
the size of the Project, and therefore the Project team, the scheduler role is sometimes
combined with the cost management role.

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The job descriptions of both project cost & schedule management manager and project
schedule and cost engineers should be compiled in line with the above. For smaller projects,
some of the above activities will not be required and the job description should be tailored to
suit.

3.3 Project Cost & Schedule Management Plan

In order to achieve uniformity across projects, the contents of every Project Cost & Schedule
Management Plan should be standardised to the maximum possible extent. At the same time
sufficient room and flexibility should be given in compiling the plan, as every project and
project setting is unique.
The Project Cost & Schedule Management Plan should make reference to, and be fully
aligned with, the Contractor’s cost and schedule control systems and procedures, as
appropriate for the contracting strategy.
For details of the Project Cost & Schedule Management Plan refer to the relevant Project
Management Procedure (see appendix 1).
For smaller projects the Project Cost & Schedule Management Plan can form an integral part
of the Project Execution Plan.

3.4 Schedule Management Tools

The approved planning and scheduling software tools, as mandated by Shell are:

 The primary planning software for new integrated execution projects is

Oracle’s Primavera (enterprise version).
 For pre-execution and/or high level schedules Microsoft Project can be used
 For schedule risk analyses Primavera Risk Analysis should be used (formerly
known as Pertmaster Risk Expert)

Schedule Activities per Phase

New section, to be considered/developed during 2010.

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4. Scheduling and Schedule Control Activities
4.1 Preparation of a Network and Schedule
The Project Schedule shall be based on a precedence network (See section 5.1.3) and shall
be used as the basis for all progress measurement plans and reports. It will be used to
determine:
 Project schedule and milestones
 Start and finish dates for the phasing of expenditure
 Start date for the phasing of commitments
 Material delivery dates
 The integrity of the schedule supporting all project department commitments i.e.,
technical, commercial, legal, marketing.

Planning and reporting will be hierarchical and concentrate on:

 The achievement of planned activities and associated deliverables (progress);
 Resource usage (costs, hours, manpower etc) at the appropriate level within the
project.

As a Project develops, there will be different levels of detail required for various phases of the
Project; this is explained further in section 5.1.1

A key principle is that the owner’s project planning team does not duplicate detailed level
planning support provided by external contractors. They are however intended to provide
summary reporting and integration of contractor’s information into the Integrated Master
Schedule (IMS), including the provision of advice and assistance to the project team
overseeing or involved with external contractors.

It is essential that the basis upon which a particular schedule is made and the purpose for
which it is being prepared is clearly defined and recorded. Schedules must always be
considered together with the qualifications attached to them.
The quality of a schedule is largely determined by:
 Whether the associated risks and opportunities with the project have been recognised
and reflected in the schedule (see PG 20: Risk Management). These should include all
aspects including Technical, Economic, Commercial, Organisational and Political
(TECOP) and must recognise the impact of external stakeholders over which the project
has less control (e.g. Government approvals).
 The degree of detail and integrity of the technical information as well as the completeness
and correctness of the general project scope definition or development scenario being
considered.
 Having a well-considered and sufficiently detailed Project Execution Strategy / Plan
(PES/PEP), which should reflect the optimum approach for a specific project in a given
economic / market situation. In particular how the various contracts will be handled, e.g.;
lump sum, reimbursable with incentives etc and the assumptions made in relation to
productivity, availability of skilled personnel etc.
 Last, but not least, the historical data base with 'as built' information from previous
projects built in accordance with the Shell design & engineering, procurement and
construction standards, practices and procedures.
The reliability of a schedule will improve during the development of a project when additional
and more detailed information becomes available.

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4.1.1 Hierarchy and Structure
The Schedule Structure should be based on the Work Breakdown Structure (WBS) which is
consistent with the cost estimate (see PG03) and the control activities (see 5.1.2 and PG06).
The project should be broken-down into identifiable activities, which are in line with the
budget appropriation in order to allow progress, quality, schedule, and cost to be measured
on both a unit and a discipline basis (e.g. engineering, procurement, construction,
commissioning and project management).
The WBS should be consistently applied in all planning documents, time schedules, progress
/cost control and reporting documents.
Schedules are divided into a number of levels, (minimum of 3 for simple projects and up to 5
for more complex projects) all of which are aggregated from the lower level networks (levels
2 and 3) developed by the project:
The definition of the aforesaid levels is as follows:
 Project Management Schedule Level 1
 Overall Project Schedule (Integrated Master Schedule) Level 2
 Engineering and Procurement Schedule Level 3
 Construction and System Testing Schedule Level 3
 Commissioning Schedule Level 3
 Contractor Schedules (Work lists and detailed schedules) Levels 4 & 5

Diagram below shows how the schedule hierarchy aligns between the Project Integrated
Master Schedule and the Sub-Project Schedules. Activity number ranges are relative to the
example only.

Project Schedule Sub-Project Schedule

Hierarchy Hierarchy

Project Management Schedule

Approx 25-50 Activities
L1
Project Integrated
Sub-Project Integrated Master Schedule
Master Schedule Level 2 L2 Approx. 25-50 Activites
Approx. 150-250 Activites

Project Detailed Sub-Project Control Schedules

Integrated Schedule Level 3 Level 3 Approx. 150-250 Activities
Approx. 1000 Activities
Detailed Control Schedules
Level 4 Approx 250-500 Activities

Refer also to the Project Planning Procedure “Integrated Project Planning” see Appendix 1
for references.

4.1.1.1 Project Management Schedule (Level 1)

The Project Management Schedule (Level I) shall show the logical sequence, all major
milestones and the total duration of the execution of the work. The activities are typically
limited to one bar per phase, like Select/Early Define/Define, in the development phase and

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engineering, procurement, construction and cold/hot commissioning/start up in the Execute
phase. No critical path will be used for this level of scheduling. All other schedules roll-up to
this summary. Compliance with this schedule must be regularly checked and reported.

4.1.1.2 Integrated Master Schedule (Level 2)

The Integrated Master Schedule is a network driven schedule, which breaks the project down
by phase and elements and identifies the Contractor interfaces. The critical path shall be
made visible and major milestones shall be identified. Furthermore this schedule sets the
framework for detailed schedules and resource scheduling. Agreement between Owners’
team and Contractor on format and extent of details shall be reached prior to project approval
(final investment decision, FID).

4.1.1.3 Engineering & Procurement Schedule (Level 3)

The engineering and procurement schedule shall include all activities from front-end work up
to the delivery of complete document packages, which should include vendor data receipt, all
procurement activities up to Materials delivery to Site and all activities necessary for the
placement of Erection Contracts.
The milestones that define the engineering, procurement and construction interface shall be
highlighted and monitored on a monthly basis. The schedule shall show the first issue dates
of planning, progress and cost control documents.
The engineering, procurement and the overall project schedule shall every month formally be
reviewed with the Owner’s Company.

4.1.1.4 Construction and System Testing Schedule (Level 3)

A construction and system-testing schedule shall be prepared to show:
 The interrelation of the availability of engineering documents, Materials arrival dates,
award of Erection Contracts, construction activities, system testing activities,
commissioning activities and RFSU date.
 The basis for detailed manpower loading and progress measuring. Progress
measurement of systems testing and commissioning activities shall be included.
 The framework to establish the timing of Vendors and Erection Contractors’ activities
for this phase.
 The status of the execution of the Work and the proposed plan of action for
outstanding work.
 Integration with the commissioning schedule.
 Adequate interrelations and references to the IMS (level II).

4.1.1.5 Commissioning, Start-up and Performance Testing Schedule (Level 3)

A commissioning start-up and performance-testing schedule shall be prepared to show:
 The interrelation of handover from construction to commissioning and from
commissioning to Company operations
 Separately the tasks to be performed by Contractor and Company and integration
of these
 The basis of detailed manpower loading and progress measurement of all
integrated Contractor/Company activities till completion of performance testing.
 The framework to establish the timing of Vendor and Erection Contractor activities
for this phase.

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  The status of the execution of Contractor’s and Company’s commissioning and
start-up work including punch listing, permit requirements, and documentation
handover to Company and the turnover to Company of completed systems.
 Adequate interrelations and references to the overall schedule (level 3)

Detailed backup documentation shall be developed progressively through the

engineering, procurement, construction and commissioning phases.
The schedule shall be issued on a monthly basis prior to start of commissioning and on
a weekly basis during the commissioning phase.

4.1.1.6 Work Lists, Detailed Schedules (Level 4 & Lower)

The Contractor schedules are the field schedules developed by the EPC Contractor and his
subcontractors, which have a sufficient level of detail for accurate progress tracking and
forecasting.
In order to allow subsequent schedule control at management level, it shall identify sufficient
milestones within the various phases of the Work.
The assessment of the actual status inclusive schedule exceptions and proposed remedial
actions shall be carried out monthly and this shall be summarized to the Project Management
Schedule. Intermediate assessment may be required for critical activities.

4.1.1.7 Permitry/Job Pack (Authority Engineering)

An inventory of all the permitting activities associated with the work to be undertaken by the
managing EPC contractor and the owner should be prepared, together with a supporting
schedule. Furthermore a proposal should be made which defines the permits requiring the
employment of local professional consultants, including names, schedule of presence and
estimated/actual costs. In the same schedule of activities any future regulations, that may
impact on the project together with proposed mitigating measures, should be included.
Refer also to Project Control Procedures: Job Pack Management (see Appendix 1).

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4.1.2 Breakdown Structures
The Breakdown structures provide the framework of common reference for all project
elements, for specific tasks within the project. They divide the project into manageable units
i.e. WBS’s and CTR’s and reduce the possibility of omission of key project elements. The
degree of the detail must be in line with the degree of control the project leadership require
and size of the project. It should be at a level of detail that will also allow the desired metrics
upon completion of the project for estimating, cost recovery and benchmarking. To obtain a
breakdown into manageable units, the structures shall be a combined exercise between each
site, and the central project team. The Cost, Time and Resource (CTR) sheet is the
mechanism for ensuring the structures are defined and aligned.
The following four structures can be imposed on the activities in order to break them down
into control items:
 The Work Breakdown Structure (WBS), which subdivides the asset into
manageable portions upon which a function (design, procure, construct, etc) is
applied. This creates an element of work that can be sensibly managed.
 The Organisation Breakdown Structure (OBS), which should be created to cover
the organisational aspects of all activities or parts thereof, including contractors
working on the project.
 The Cost Breakdown Structure (CBS), which is a fixed structure for grouping the
myriad of account codes costs for an asset into a cost unit/norm useful to the
estimators.
 The Geographical Breakdown Structure (GBS), which should be based on the
logistical aspects of the projects, e.g. the geographical location of the work and
construction areas
Every CTR or control item should be identified by each of a WBS, OBS, CBS and GBS
reference. This is shown schematically below :

W B S - W o r k B r e a k d o w n S tr u c tu r e : W h a t?
O B S - O r g a n iz a tio n B r e a k d o w n S tr u c tu r e : W h o ?
G B S - G e o g r a p h ic a l B r e a k d o w n S tr u c tu r e : W h e r e ?

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In order to identify these items in a consistent manner, a standard coding structure should be
used. Breakdown structures should be fixed at the start of the project and not change,
although subdivisions can occur as the project definition matures.
The EPCM contractor (where one exists) should be requested to submit his bid for the
implementation of the project as per the breakdown structures, including the activities of the
subcontractor(s).

4.1.3 Components of a Project Schedule

The scheduling system should be based on logic networking, using computerised critical path
analysis method of which the lowest level rolls up into higher levels.
Scheduling documents should consist of network drawings and bar charts.
Activities should be self-explanatory and abbreviations should be shown in a legend.

4.1.3.1 Network design

All activities within the schedule must be logically linked in a precedence network. Fixed start
and end dates, also known as Constraint or Imposed Dates, should only be used by
exception. This is to avoid the impact of these dates on the full time analysis, causing
unintended results on schedule dates. At levels 1, 2 and 3 all project phases must be
represented.

Key attributes of a network design are:

 The identification of all important parties involved

 Derivation of activity dates and most likely (deterministic) durations based on
network calculation
 Avoid the use of Constraint Dates. Constraints can result in logic errors or
misleading schedule results, and are a source of problems as the schedule is
updated with actual progress and when risk analyses are performed (see section
5.1.6).
 Specify multiple work calendars to model planned workweek and amount of
overtime and shift work, or split between on and offshore activity.

4.1.3.2 Critical path

A Critical path is a network of activities that have the least amount of float, typically zero float.
Together these activities make up one or more continuous chains of activities extending from
the first activity to the final activity in the schedule. The Critical Path determines the shortest
period of time to complete the Project.

Critical path is determined using “forward pass” and “backward pass” through the schedule
networks. The “forward pass” through the networks calculates the early start and finish dates
for each activity, whereas the “backward pass” calculates the late start and finish dates of
each activity. The early dates are the earliest possible times an activity can be performed if
all activities that precede it are also completed by their early dates. Correspondingly, the late
dates indicate when an activity must be completed so that the project finish dated will not
slip.

Activity float is used to identify the critical and near-critical path. Float permits activities to
start later than their early dates. Total float is the number of days an activity can be delayed

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without a possible affect on the finish of the project. An activity with zero float has no
flexibility. It must start and finish as planned (or earlier if the schedule progress allows) or it
will delay the project completion. Negative float indicates activities occur after their late dates
and will delay the project.

Early Start + Duration = Early Finish

Float

Forward Pass Duration

Late Start + Duration = Late Finish

Backward Pass Duration

Excessive float indicates, open ends, logical errors and lack of analyses to ensure activity
dates match plans, whereas negative floats result from target completion dates set earlier
than the early schedule will allow.

Critical path analysis should be done at lower levels of schedule – level 3 is the most suitable
for a good overview, but it must also be consistent with the IMS.

4.1.3.3 Milestones
Milestones are a method of identifying key stages in a Project Schedule to establish
deliverables and provide a baseline against which Progress can be identified.

They are significant events in the development and implementation phase of a project, which
focus on reaching agreements or completing tasks.
Progress should be established on a regular basis, by comparing the actual achievements
against the agreed milestones that are detailed enough to give transparency of the progress.
In progress reporting milestones should be reported in a checklist format. Milestones should
be flagged in the project schedules and where applicable used in payment conditions.

Milestones should be:

 Identified on basis of contractual agreements
 Identified for major steps / phases
 Identified for links from one unit to another
 Evenly distributed over the complete duration
 Measurable and specific stages of the Project

Examples of interim Project milestones are:

 Critical Drawing delivery
 Award of Critical Contracts
 Critical Equipment delivery
 Critical Fabrication
 Erection or installation events
 First Production.

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These interim milestones should be selected and established prior to FID and then monitored
throughout the project execution phase.

4.1.4 Building the Network

During the Identify and Assess phase Level 1 schedules are prepared for the various
scenarios being considered. There could be several Level 1 plans for the different
options.These may be logically linked and scheduled but are often simple bar chart
diagrams.
Select Phase is the starting point of building the network schedule for the Project at Level 2.
It is very important to include all phases (up to and incl. Start-up) into a network, even if
detailed information for some phases is not available at that moment. In this case a single
activity should be added and linked in the schedule. When more information becomes
available these acitivies can be detailed out.
Each phase should be detailed enough to show specific activities and transitions.
The level of detail will increase as the project definition matures but the planning should
include the following:
 Project Management Team for the life of the Project
 Project definition activities and system requirements
 Specific engineering design activities and milestones
 Activities regarding major equipment purchase
 Design packages issued to construction
 Construction activities, milestones, and interfaces
 Turnover of specific systems, commissioning, and start-up activities

4.1.5 Resource loading the schedule

At different stages of the Project lifecycle critical resources are loaded into the schedule
using appropriate units of measure. This is a requirement in order to achieve suitable FEL
index from external benchmarking at FID and also indicates sufficient project definition work
has been carried out.

Resource loading helps to validate approach and:

 Helps ensure the feasibility of schedule
 Ensures alignment between cost estimate and schedule
 Enables evaluation of peak labour
 Provides model for resource levelling
 Focuses team on the critical resources

One of the key issues to agree and document in the PEP are what are the critical resources
at the various stages of the Project and who is responsible for managing them. At the end of
Select phase, the Define phase should be Resource scheduled, but the Execute phase
resources may not yet be available in a sufficient level of detail.

Examples of Critical resources are:

 Project Management team
 Design resources (esp. in-house)
 Critical Equipment such as Rigs, Cranes, Materials
 Construction Teams e.g. for Construction and Commissioning


17
At the Select phase of the Project, the Resources could be managed in the schedule or
possibly using a worksheet. As the Project completes Select phase, the scheduling tool
should be used to manage the resources relevant for that phase. The key issue is to be able
to demonstrate that Resource Management has been considered and the impact and
dependencies reflected on the Project schedule.

For example:
 If Design is done in-House a Discipline Resourced plan should be prepared
 If Design is done by a third party the resourced plan should be prepared by the
contractor and reviewed/approved by the Project
 If Construction is managed as a Lump Sum contract, resourcing should be the
responsibility of the Contractor, with Project review and approval.
 An exception would be on site with critical tie-ins, hot work, restricted access etc
where an overall resource managed plan must be prepared.
 If dealing with a multi Contract environment, a summary resource scheduled plan
should be maintained by the Project to manage conflicts for access, permitry,
transport etc.

The schedule breakdown should be linkable to the appropriation budget estimate (see
Project Standard Guide 06, Project Control) of a project. This link needs not necessarily be
on the most detailed level (4) of the network but might very well be on level 3. By use of such
a link it becomes possible to relate changes in schedule directly to the changes in the cost of
the project.

4.1.6 Project Schedule Risk Assessment

4.1.6.1 Deterministic Schedule Risk Assessment

In Section 5.1.3, the components of a deterministic schedule are described, which reflect the
most likely durations of each activity.

A probabilistic analysis at a very early stage of project development is not recommended due
to the lack of definition of the project concept and scope. It is also very easy to concentrate
on engineering uncertainty and fail to model other uncertainties (e.g. commercial,
organisational, political, subsurface, drilling etc.), which may have a bigger influence.
The alternative to a full probabilistic analysis at this early stage is to use a TECOP model for
schedule Risk evaluation. This process can quickly give an indication of the level of
confidence in the Deterministic schedule and derive a schedule Risk duration which should
be added to the Project end date to have an overall “risked” schedule end date. Links to
project cost uncertainties should also be included.

As the level of detail increases and more information becomes available, then a full
Probabilistic Risk schedule can be performed.

4.1.6.2 Probabilistic Schedule Risk Assessment

Because the uncertainty of durations tend to have more of an upside than downside (i.e. are
“right-skewed”), a probabilistic analysis should be performed, using a Monte Carlo simulation
technique, to directly define the probability distribution of the project duration and, hence
determine the 50/50 schedule (the schedule that has a 50% chance of being achieved).
Probabilistic analysis can be a powerful tool and one major benefit is to focus the team’s

18
attention on the potential upside and downside of the activities and their durations and what
might cause these to change. The model can indicate where the major uncertainties in a
project are, what their cumulative impact is, and where mitigation should be concentrated.
The risk analysis should be an iterative process, and activities could be added to the risked
plan to look at what-if options to address critical areas of the schedule. The risk analysis also
highlights secondary and tertiary paths that may become critical under various scenarios.

A simple exercise that replaces deterministic norms in a schedule with a range of potential
values will not necessarily add significant value over a standard deterministic approach. The
real value in probabilistic analysis is in understanding a project’s risks and uncertainties and
then building a model that will allow their impact to be evaluated so that mitigation solutions
can be assessed and then finally to propose an optimum schedule estimate for the project.
The exercise focuses attention on key areas requiring additional definition work for future
stages.
In such an analysis, the individual durations are represented by probability distributions,
which reflect the range and uncertainty of each. However, it is important that the preparation
of the analysis follows the following process in order to maximize its value.

Probabilistic analysis, when used appropriately, is a powerful tool that can be of great value
when assessing project uncertainties.

As well as a schedule risk analysis, a cost risk analysis should also be performed (see
Project Guide 03 – Capital Project Cost Estimating). It is important that the two are consistent
and it is strongly recommended that the schedule risk analysis is performed first and duration
outcomes used as input into the cost risk analysis.

For a comprehensive guide to the Schedule and Cost Risk process including the basic steps
to organise a Risk workshop and analyse the results see the Project Cost & Planning Risk
Procedure: Cost & Schedule Risk Analysis (see Appendix 1).

4.1.7 Baselining the Plan

Once the plan has been Scheduled, Milestones identified, Resources incorporated as
appropriate and the plan has been approved it should be Baselined. The Baseline Plan must
be established prior to the Final Investment Decision (FID) and must reflect the schedule
delivery promise in the Group Investment Proposal. If a risk analysis is performed, it should
be done pre FID, before the first baseline is agreed.
The purpose of the Baseline is to set a reference point to show the original approved plan
and identify the progress and deviation from that plan. Note for Major Projects there may be
several baselines set during the life of the Project, e.g for a change of scope. It is important
to retain the first Baseline as a reference for the final schedule.
The Baseline is a key milestone in the preparation and approval of the Schedule and is the
transition point between preparing the plan and progressing the plan. The Integrated Master
Schedule and subordinate schedules must be progressable, see section 5.2.
The Baseline must be approved by the Project Manager, and must reflect the approved CTR
scope definition, deliverables and Material delivery dates (especially for long lead items). The
Baseline must also be in line with the agreed cost phasing and the two must be able to be
reconciled against each other.
Refer also to Project Control Procedures: Progress Management and Integrated Project
Planning (see Appendix 1).

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4.2 Scheduling Control

As identified in section 5.1, scheduling is the incorporation of time and resources into a plan
in order to form a fully scheduled and time analysed network from which the control
mechanisms, which are desired for a project, can be derived.
Scheduling control during any phase of the project comprises the setting up of the project
schedules at the various levels of detail (as described above), agreeing the plan, setting a
baseline and then monitoring actual progress made and then reporting against these
schedules on a regular basis. This is required in order to manage the project to ensure that it
is completed within the agreed overall project schedule, making use of the available
resources.
A project should never be made time driven prior to the final investment decision, as this will
lead to insufficient attention to the development of the project in the Select and Define
phases. Complete and proper front-end development is essential for the success of any
project. Once approved for implementation, a project will become time driven automatically.
Overall it is crucial to agree a realistic project schedule between the various responsible
stakeholders.
Bar charts and 'S' curves should be the basis for monitoring actual achievements versus
scheduled targets. The actual progress and Time Line should be shown by means of a status
line.

4.2.1 Scheduling System

4.2.1.1 Integrated Master Schedule (Level 2)

The Integrated Master Schedule (IMS) should be issued for the interface activities between
the project and other activities, which may have an impact on the execution of the project,
such as other local community projects, plant changes or projects in the existing plant and
shutdown activities.
The IMS should clearly indicate all the important milestones and the responsible
stakeholders. Regular reporting and discussion on the status of the various activities
between the project’s Owner’s team and the other stakeholders is recommended.
When shutdown work is required (e.g. the implementation of the tie-ins for the project),
together with the statutory maintenance/inspection activities and new construction activities,
a detailed integrated schedule should be compiled, both for the shutdown itself and for pre-
and post shutdown activities. For the shutdown proper, often a daily or, even, an hourly
scheduling programme may be required.

4.2.1.2 Productivity calculations

In order to demonstrate the performance of a project, appropriate records for productivity
should be developed and monitored.
In general productivity is defined as the ratio between the earned work hours (= physical
progress x budget work hours) and actual direct work hours to perform a predefined task.
Alternatively, units of work could be used in place of hours. It is important to agree the
definitions of productivity calculations with the project’s EPC Contractor prior to contract
award. The Contractor should keep up-to-date records of his productivity.
Productivity factors can be produced for the total project as well as per discipline and per
contract. Productivity factors will also be used to indicate in what areas re-estimate of
manpower requirement for outstanding work has to be made. Manpower for rework should
be reported separately and the impact on productivity calculations should be highlighted.

20
Refer also to Project Control Procedures: Progress Management (see Appendix 1).

4.2.1.3 Schedule Performance Indicator (SPI)

SPI, also known as Earned Value Methodology, is the method of monitoring planned
progress from the Baseline v actual progress achieved. It is important that the method for
calculating progress is agreed with the Contractor prior to award of contract.
Refer also to Project Control Procedures: Earned Value Management (see Appendix 1).

4.2.2 Detailed Engineering

4.2.2.1 Schedule
The schedule for detailed engineering should include all activities per discipline for the
delivery of complete document and drawing packages, which are required for the placement
of purchase orders and erection subcontracts. Mobilisation of the Design Contractor should
be included.
Sufficient provision should be made for the time required for commenting on
drawings/documents. Change of responsibilities indicated by released for comment,
approved status and 3D model reviews must be clearly identified and controlled. Leading key
documents, like Process Engineering Flow Schemes, should be clearly identified. The
schedule should be driven by the early construction schedule and indicate, as a minimum,
the following milestones:
Released for Design
Released for Procurement
Released for Construction
As Built

4.2.2.2 Physical progress

Engineering progress should be determined on a physical basis, using earned value
principles1
The basis should be well defined to allow progress measuring of individual items, such as
document preparation work by agreed interim milestones. The individual items should be
weighted against the agreed scope of work in order to enable calculation of the overall
progress of engineering work.
Comparison of actual progress against scheduled progress should be presented as progress
'S' curves drawn to a percentage scale and split as required in accordance to the Work
Breakdown Structure.
The scheduled progress curve can be a double curve based on earliest and latest finish.

4.2.2.3 Quantity tracking

During detailed engineering, records of quantities of certain selected items should be
prepared, issued and kept up to date.
These records should show budget, actual and scheduled (forecasted) quantities, such as
number of documents, isometrics, tons of steelwork or meters of pipe, electrical bulk
materials etc.

1
% physical progress = quantity of work done divided by current estimate of total quantity of
work times 100

21
4.2.2.4 Resource planning and monitoring
Actual versus scheduled engineering work hours should be reported in tables, histograms
and curves to a man-hour scale, split in accordance with the requirement of the Work
Breakdown Structure and per discipline as follows:
 Project management, i.e. project engineering, project coordination, planning/ cost
engineering
 Process design, including utility design and system design
 Civil engineering, incl. architectural, steel structures, storage tanks, insulation,
painting, etc.
 Mechanical engineering
 Piping engineering
 Instrument engineering
 Electrical engineering
 Quality assurance, including vendor inspection
 Procurement and expediting
 Home office construction preparation
 Commissioning and start-up work.
 Other work, i.e. non-technical support as defined upfront
Regular re-estimates of man-hours for outstanding work should be made to assess the trend
of over- or under-run compared with the budgeted man-hours. Engineering man-hours
should exclude sickness, leave and other absence.
Projected manpower loadings must be in line with the required timing on the Engineering and
Procurement schedule.

4.2.3 Procurement

4.2.3.1 Schedule
The detailed procurement schedule should be made per project by means of a procurement
monitoring and control system. This system will produce equipment and materials inquiry and
status control charts, vendor document control charts, expediting and inspection control
charts on a regular basis.

4.2.3.2 Physical progress

The milestones of catalogue material procurement are order placement and delivery at site.
The physical basis for equipment and material procurement should be the weighted value
based on the original estimated cost. Progress measurement of individual items by interim
milestones, such as Requests for Quotation, FOB, Design approved, Vendor data receipt,
testing complete and Delivery at Site should be agreed upon in advance.
Material commitment and delivery 'S' curves should be prepared to project quantities split in
groups as scheduled, ordered and delivered.
Tracking and reporting of the status of equipment and materials should be at the
item/commodity level.

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4.2.4 Construction

4.2.4.1 Schedule
At least two months before commencing the first site activities a level III construction
schedule should be prepared.
The schedule should include the:
 Interrelation of the availability of engineering drawings/packages, equipment and
material arrival dates, award of subcontracts, construction activities, system testing
activities, commissioning activities and ready for start up date
 Basis for detailed manpower loadings and progress measuring; progress
measurement of cold and hot commissioning activities should be included
 Framework to fix the timing of vendor and subcontractor activities.
 Project status and the proposed plan of action for the outstanding work
 Integration with the cold and hot commissioning schedule
 Interrelations with and references to the IMS
The contractor should issue to the subcontractors the milestones for his scope of work and
request the preparation of the detailed level 4and 5 field schedules, which are suitable for
effective control in line with the construction organisation and the Work Breakdown Structure.
The detailed Construction Schedules should be suitable to be used in the field by direct line
supervision and foremen.
Whereas the detailed construction schedule in the beginning of the implementation phase will
be based on to be installed quantities and geographical completion, timely preparation of the
schedules based on operational systems completion should also be prepared. The basis of
the operational systems should be the start up planning of the facilities, which should be
prepared in the Select phase of the project and upon which all design, engineering and
procurement activities should be based. Reference is also made to Section 5.6.1 of this
project guide.
Specific skill-areas requiring detailed construction schedules to be prepared should include
but not be limited to:
 Mobilisation, including subcontractors
 Surveys, Site preparation and temporary facilities (incl. camp facilities)
 Piling
 Concrete structures
 Roads, paving and fencing
 Steel structures
 Buildings and control rooms
 Pipeline laying
 Piping prefabrication per named isometric
 Piping erection per named isometric
 Equipment erection
 Cable trenching and laying (instrument and electrical)
 Instrumentation work

23
  Electrical work
 Painting
 Insulation
The Detailed Construction Schedules should be updated on a regular basis. The frequency
of updating will depend on individual circumstances for each schedule and should be subject
to separate agreement between Contractor and Owner.
The subcontractor should provide level 5 forecast schedules, which indicate the detailed field
activities for the next reporting period. This document is used to control the subcontractor’s
daily activities and to coordinate all subcontractors.

4.2.4.2 Physical progress

Physical progress of construction should be measured via controllable items, such as
contracts, technical discipline, units and systems. The physical basis depends on the type of
contract, such as job hours in case of a reimbursable contract and units in case of a unit rate
contract. In all cases the basis needs to be stipulated in the contract.
Appropriate weighting factors should be applied to calculate the overall physical progress,
which are based on the budgeted direct hours for the construction work or alternatively the
monetary value of the work.

4.2.4.3 Construction manpower records

Contractors should keep a continuous record of daily manpower levels employed at the
construction site (including subcontractors), broken down per reporting project portion and
per discipline. The Contractor should report actual versus scheduled construction work
hours in tables, histograms and in curves.
Work hour reporting should be split in accordance with the Work Breakdown Structure and by
disciplines, taking into account that the manpower records and the "Records of Quantities"
should enable calculation of productivity figures.
Direct work hours should be reported per subcontractor per technical discipline. Furthermore
indirect labour, quality assurance, supervision, inspection and staff should be reported. Lost
time on the construction site due to inclement weather, waiting time, accidents and industrial
relations delays. Lost time outside the construction gate for sickness, holidays, industrial
relations etc. should also be recorded.
For LS or unit rate contracts, the job hour and productivity reporting by Contractor will be
resisted by the contractor as it removes one extra cost claim path. The Invitation to tender
and the bid evaluation team have to be clear and unwavering in maintaining the reporting
requirement

4.2.5 Commissioning and start-up

4.2.5.1 Schedule
Commissioning should be divided into two stages; the cold commissioning, which comprises
the system testing and the hot commissioning, in which nitrogen purging and steam blowing
takes place.
The planning of the commissioning/start up phase of a project already starts at the Select
phase and is continuously updated throughout the development phase and the early
construction of the project.
The commissioning and start up schedule (incorporating the requirements of “Flawless Start
Up”) at the end of Define should be at operational system activity level (Level 3) and the
critical path and milestone dates should be clearly indicated. Typically, at around 65%

24
progress of overall construction, the construction effort will be directed towards final
completion of the project by concentrating on operating systems (see Section 5.5.1). The
emphasis of jobsite scheduling is shifted from the completion of geographic work areas to the
operation systems, but without restricting the overall progress of construction.
Separate commissioning schedules will be established for each system, whilst compatible
with the overall construction schedule and the overall commissioning logic diagram or
network. This requires detailed backup documentation, which Contractor should develop
progressively through the design, engineering, procurement and construction phases.

4.2.5.2 Punch Lists

A work-instruction for joint punching and clearance of exception items should be issued
together with the commissioning schedule. Punch list items according to the categories must
be reported and reviewed since it is an indication for upcoming changes and delays in
schedule. The punchlist should include outstanding job queries and site instructions.

4.2.5.3 Progress Measurement

Within the framework of the IMS, the construction schedule aligns with the breakdown
structures the commissioning schedule should allow progress control for individual activities.
The progress should be measured by completion rate of operational systems, by using
representative physical yardsticks and in accordance with the operational system schedule.
Appropriate factors should be applied to calculate the overall physical progress.
The handover of operational systems between EPC Contractor, Owner’s project team and
Owner’s permanent organisation is covered in Project Guide 08 – Key Front End
Engineering deliverables.

4.3 Project Schedule Benchmarking

One of the key issues when doing a benchmarking exercise is to be sure that the comparison
will be done on an ‘apples-apples’ basis. This issue is important for an internal benchmarking
and is of the utmost importance when conducting an external Benchmarking.
External Benchmarks are carried out by an independent third party (typically by IPA) and are
based on their extensive database of capital projects.
The project schedule is usually benchmarked during FEL index scoring prior to authorization
(FID), and subsequently when reviewing performance benchmarks after project completion.
During FEL index scoring, a “best in class” score is achieved by developing and utilizing a
definitive project schedule.
A definitive project schedule is:
 Comprehensive
 Based on sound scheduling techniques
 Resource loaded with critical resources
 Used as a tool for project controls and historical record
 Applied to all project types and contracting formats
 Focused on transitions from FEL to execution and turnover, from execution to
commissioning and start up

25
4.4 Project progress reporting

4.4.1 General

The project team should issue a progress report on a monthly basis. The team should ensure
that the progress information issued by Contractors is sufficient and in the correct format for
the input into the progress report.

In addition, during the construction or commissioning phase a weekly report showing

progress, productivity and estimate to complete durations/resources should be produced.

A typical index and explanation of the content for each section of a progress report is given in
PG06.

4.4.2 Schedule progress reports

The elements of schedule control described in the foregoing sections can now be drawn
together into the procedures necessary for reporting progress and monitoring against the
schedule. This process, carried out regularly, critically and analytically, is the essence of
schedule control. Plans, and estimates, must be regularly reviewed and corrected,
measurements of actual progress compared with these plans and estimates, deviations -
both actual and potential - identified and actions taken to resolve them.
The results of this process are recorded in the Engineering Progress section of the Project
progress report, which serves to inform the Company of the progress to date, forecast of final
project completion, and expected over/under runs. The schedule review should comprise the
current status of the project milestones, the physical progress and the schedule status
against the progress reporting date.
The schedule control report must include:
 The summary schedule (milestone chart)
 The physical progress curve for overall project (“Baseline” planned vs actuals +
Forecast end date)
 The physical progress curves of major and critical activities
 Resource performance for manpower intensive activities
 A tabular version of the progress information

4.5 Scheduling Roles & Responsibilities

For a full list of Rolls and Responsibilities refer to the Project Controls procedures. There is
also a RACI (Responsible, Accountable, Contributes, Informs) chart for these rolls.

4.5.1 Customer
Provide the Project Director and his team with the, project premise e.g. proposed project
timing, limitations and constraints.

4.5.2 Project Manager

Provide the project scheduler with outputs from prior planning efforts. Facilitate the creation,
update and maintenance of the project schedule and define required outputs of the project

26
schedule. The Project Manager signs off the Approved Baseline Plan and any subsequent
changes to the Baseline.

4.5.3 Project Engineer Leads

Provide the project scheduler with a list of known deliverables to be incorporated into the
overall project schedule. Ensure throughout the project that these deliverables are kept
evergreen and updated per the reporting cycle established by the Project Manager.

4.5.4 Construction Focal Point

Review the scope of work to ensure it is clear and understandable. Facilitate the creation of
the schedule by assembling contractor representatives, inspectors, engineering, and the
project scheduler for the development of the detailed construction schedule. The detailed
construction schedule will include the creation of work packages, including both definition
and preliminary sequence. Perform a Constructability review to validate schedule logic and
time constraints. Ensure that the Project Engineer and Project Scheduler receive accurate
and timely progress updates for schedule reporting.

4.5.5 Engineering Focal Points

Responsible for providing information to the Project Engineer, Project Scheduler and
Construction Focal Point with the engineering design and drafting plan included. They are
also required to identify hold points and engineering constraints that will impact fabrication,
construction, or the procurement of Engineered Equipment. The Engineering Focal Points
are required to participate in the Work Package Management Process. As the project
progresses, the Engineering Focal Points are required to provide the Project Engineer and
Project Scheduler with accurate and timely progress updates for the engineering scope of
work.

4.5.6 Project Scheduling Representative

Responsible for creating and maintaining an integrated project schedule based on input from
the project team. Responsible for ensuring the accuracy of the execution plan, collecting and
incorporating status into the plan, and analyzing project data to identify opportunities. Based
on the analysis, recommends action plan for mitigation, if any is required. Supports the
Project Engineer by providing schedule and risk analysis, change control, and forecasting
milestone dates based on project performance.

4.5.7 Construction Contractor

Is responsible for providing a support role in the creation of the project schedule by assisting
in the identification of work packages, workflow, and methodologies.
Is responsible for developing and maintaining level 4/5 plans in support of the overall Project
Schedule.
The inspector and/or superintendent will provide accurate and timely work package progress
reporting.

4.6 Project Schedule Maintenance

Proper progress control is an essential element of project management if projects are to be
realised within agreed time frames and according to the approved execution and
implementation plans.

There must only ever be one approved Project Schedule, against which all progress
measurement and reporting is measured.

As referenced in section 5.1.7 “Baselining”, at times a new Baseline can be established to

reflect scope changes or significant schedule changes.

27
The Scheduler must ensure that the whole Project team (and Contractors) know which is the
current schedule. They also need to keep a documented storage and retrieval method for
comparison of Original Baselined plan v current Approved Baseline

4.7 Schedule Reviews

4.7.1 Peer Reviews

Each schedule prepared should receive a peer review to ensure accuracy and completeness.
A team of knowledgeable engineering, construction and project controls individuals should be
assembled to review the estimates.
The planner/scheduler should furnish the review team with the basis of the schedule and
relevant documentation on which the schedule is based.
The schedule should be reviewed to ensure that the following items have been addressed
properly:
 Inclusion of all items of work identified in the scope of work and design basis
document
 Operational impacts and constraints are considered in the schedule
 Availability of Long Lead Equipment/Shell furnished equipment
 Schedule performance from previously completed projects
 The activities on the critical path
 The composition of the work packages
 Work flow logic
 Resource assumptions
 Industrial activities -what is the capacity of the local yards; strikes common, labour
unions, etc.
 Country/regional dynamics

4.7.2 Estimate and Schedule Assurance Reviews (ESAR’s)

If required by Business governance an ESAR should be performed prior to each of VAR’s 3

and 4 which includes a review of the project schedule incorporating all the requirements of
Project Standard 04. Refer to Project Guide 02c for guidance on how to prepare for and
execute ESAR’s.

28
4.8 Schedule Definitions
Activity – task that consumes time, resources and has a definable start and finish, are
assignable and are measured
Backward Pass - calculations begin at the end of the network and proceed to the first
activity; they determine late start and late finish
Concurrent Activities – logically independent of another and can be performed at the same
time
Constraint Dates – an imposed start or finish date on an activity
Critical Path – a continuous chain of activities with the longest duration; it determines the
project duration
Finish to Finish (FF) – the successor activity can finish at the same time as the predecessor
or later
Finish to Start (FS) – the predecessor activity must finish before the successor activity can
start
Forward Pass – calculations start at the beginning of the network and proceed to the end;
they determine early start, early finish, and project duration. All predecessor activities must
be complete before an activity can start
Early Start – the earliest possible time that an activity can start according to
predecessor/successor relationships
Early Finish – the earliest possible time that an activity can finish according to
predecessor/successor relationships
Float – the time difference between the calculated duration of the activity chain and the
critical path
Free Float – the amount of time the start of an activity may be delayed without delaying the
start of a successor activity
Predecessor Activity – one that must be completed before a given activity can be started
Successor Activity – one that cannot start until a given activity is completed
Start to Finish (SF) – the predecessor activity must start before the successor activity can
finish
Start to Start (SS) – the successor activity can start at the same time as the predecessor
activity or later
Total Float – the amount of time that a critical path activity can be delayed without affecting
the project end date

29
4.9 Schedule Management of Contractors

The Contractor is usually responsible for producing and managing the working Level 4/5
plans. The Contract Administration Instructions (Section V) describe what the contractor shall
produce. The Project Scheduler must work with the Contracts and Procurement Engineers to
ensure that the Administration Instructions reflect the specific requirements for the scope of
work.

The Contractors schedule must:

 Reflect the Shell (Client) WBS and CTR structure
 Be in sufficient detail to identify the scope is adequately covered
 Where applicable, the schedule must be resource loaded
 Agree and clearly identify Milestones
 Have agreed methods for Progress Measurement
 Agree cut off dates, and reporting periods
 The contractor must allow original copies of the plan to be available for analysis by
Shell (not just .pdf pictures)

The above list is not exhaustive, see also the Project Procedures for more information
(Appendix 1).

As the Project progresses, changes will be identified by raising Variations. These must be
reflected in the schedule and any impact identified, including impact on cost and phasing.

30
Appendix 1: References
Project Standards and Guides:
 Project Guide 02c – Capital Project Estimate & Schedule Assurance Review (ESAR)
 Project Standard & Guide 03 – Capital Project Cost Estimating
 Project Standard 04 – Capital Project Scheduling
 Project Standard & Guide 05 – Capital Project Contracting & Procurement
 Project Standard 06 – Capital Project Cost & Schedule Management
 Project Guide 06 – Capital Project Cost Management & Management Of Change
 Project Standard & Guides 08 – Capital Project Technical Scope Definition
 Project Standard & Guide 10 – Capital Project Execution & Management Planning

Project Cost & Schedule Management Procedures

During 2008 and 2009 Cross-business global generic project control procedures were
developed and approved under the Project Management Standardisation programme. These
generic global procedures are applicable to all Shell projects. They are intended for
modification by each project so they are configured to the organisation of that project. The
section 2 of the procedure lists the mandatory control activities on any Shell project over $US
100 million. The procedures listed below are available on the Cost and Planning Toolkit web
site under the matured standards column in both word document format for configuring to the
specific project and in pdf format for the approved procedure
URL = https://sww-knowledge-epe.shell.com/teamsiep/livelink.exe/Open/37165431

Procedure Title Procedure Document Number

Monthly Project Management Report PSM-I-U-001182-FA-6180-0001
Management of Change PSM-I-U-001182-FA-6180-0002
Project Cost & Schedule Management Plan PSM-I-U-001182-FA-6180-0003
Glossary of Terms PSM-I-U-001182-FA-6180-0004
Project Services & Finance Handover PSM-I-U-001182-FA-6180-0005
Project Authorisations Framework PSM-I-U-001182-FA-6180-0006
Project Calendar PSM-I-U-001182-FA-6180-0007
Integrated Project Planning PSM-I-U-001182-FA-6180-0010
Progress Management PSM-I-U-001182-FA-6180-0011
Job Pack Management PSM-I-U-001182-FA-6180-0012
Project Cost Reporting PSM-I-U-001182-FA-6180-0020
Cost Contingency PSM-I-U-001182-FA-6180-0021
Value of Work Done PSM-I-U-001182-FA-6180-0022
Commitments (Assigned Budget) PSM-I-U-001182-FA-6180-0023
Work Breakdown Structures (WBS) PSM-I-U-001182-FA-6180-0024
Earned Value Management PSM-I-U-001182-FA-6180-0025
Cost & Cash Forecasting PSM-I-U-001182-FA-6180-0026
Cost Time Resources (CTR) Catalogue PSM-I-U-001182-FA-6180-0027
Cost Management of Contracts PSM-I-U-001182-FA-6180-0028
Cost Breakdown Structures (CBS PSM-I-U-001182-FA-6180-0029
Cost Recovery PSM-I-U-001182-FA-6180-0040
Budget Management PSM-I-U-001182-FA-6180-0041
Management of Invoices PSM-I-U-001182-FA-6180-0044
Project Cost Allocation PSM-I-U-001182-FA-6180-0045
Exchange Rate Application PSM-I-U-001182-FA-6180-0046
(Cost Estimating) Data Collection PSM-I-U-001182-FA-6180-0060
Cost & Schedule Risk Analysis PSM-I-U-001182-FA-6180-0090

Please note that the following are now obsolete

DEP 01.00.09.10-Gen – Asset Breakdown for onshore facilities
DEP 40.10.01.11-Gen – Capital Project Coding System

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