CM-PE-304 Procedure for The Launch of Projects

Details: Last Updated: 03 September 2013

1. Purpose

This procedure describes the actions to be taken to launch a project in the immediate post contract period.

2. General

The activities described within this procedure are intended to guide a project manager through the critical first weeks of a project. The exact requirements and the duration of the start up phase will be dependent upon the size and complexity of a project. In addition the project launch may be affected by external influences such as the availability of client funds or personnel. However it is expected that under normal circumstances the activities described herein will be addressed during the first four weeks following notification of an award.

3. Responsibilities

The responsibility for making all interested parties aware that the company has received an order for a project and of the contractual and financial implications of the contract rests with the manager of contracts who will issue the sales order.

The project director/manager, once assigned by the director of projects, is responsible for the launch of a project in accordance with this procedure.

4. Procedure

4.1 Contract Award

At contract award, the manager of contracts shall issue a "sales order" ref.6.10 (see attachment 1 for a typical example). This form is the authority to the organization to proceed with the work, and includes pertinent financial terms and sales information, as well as the contract number which shall be used throughout the life of the project. On receipt of the sales order the accounting department are authorized to include the project in their systems for client billing, job history (internal cost) and time registration etc.

4.2 Project Management

Upon receipt of authority to proceed, the director of projects shall assign a project director/manager who shall be responsible for the execution of the project.

Each assignment will be confirmed by the issue of an assignment letter detailing the prerformance contract for execution of the project.

4.3 Contract Review

The manager of contracts is responsible for ensuring that a formal contract briefing is prepared (ref.6.1) for all projects with a Gross Order Received (GOR) of more than 2 million NLG. The purpose of the contract briefing is to ensure that all project team members are fully conversant with the key areas of the contract.

4.4 Launch Activities

The project director/manager shall initiate a series of actions that will ensure that all interested parties are fully informed of the objectives and requirements of the project and understand their own contribution during the launch phase. The actions required during this critical period are numerous and varied and will depend to a great extent upon the specific needs of individual projects. To assist the project director/manager in this task attachment 3 comprises a schedule of typical project launch activities to act as a guide and "aide memoir" which it is recommended is completed for all new projects.

4.5 Project Execution Plan

The effective dissemination of information to the project team is vital to a coordinated project launch. To facilitate this, the project director/manager should update the project execution plan (PEP) prepared during the proposal phase. This should include any changes made during the pre-award negotiations and be presented in such a way that all project team members can take guidance from it in setting up the project execution procedures. The PEP shall address all topics relevant to the project in a concise manner. The PEP should be the guiding document to enable a comprehensive and consistent Project Procedure and Execution Manual (PPEM) to be prepared. For a typical PEP contents checklist see attachment 2.

4.6 Kick-off Meetings

4.6.1The project launch phase will be punctuated by a series of kick-off meetings. The first of these, the management kick-off, will involve senior and department management.

The objective of this meeting is:

a. to familiarize this management group with the project and its objectives;

b. to make managers aware of the immediate actions required of them to facilitate project launch;

c. to ensure that the project receives management support during this critical period;

d. to either confirm key members of the project task force with start and finish dates and extent of involvement i.e. full time, part time etc.

Attachment 3 gives guidance on the topics to be addressed during this meeting.

4.6.2 The second kick-off, the task force kick-off, will involve all key members of the project task force and have the following objectives:

a. ensure that all members of this group are thoroughly familiar with the contractual basis, scope, schedule and objectives of the project;

b. inform as to the manner in which the project will be executed, the engineering, procurement and construction philosophies to be adopted and the project control systems that will be in operation;

c. ensure that all project task force members understand and are committed to the actions necessary to ensure a successful execution.

Attachment 3 gives guidance on the topics to be addressed during this meeting.

4.6.3 The last kick-off meeting is to take place with the client and will have the following objectives:

a. to introduce members of the project task forced to the responsible client personnel and establish working relationships, lines of communication etc.;

b. to review and agree the PEP.

4.6.4 On request of the director of projects the above 3 activities may take place in a different format with the project manager and project team being requested to present the PEP to company management. This implies that many of the actions in the separate kick-off meetings will have taken place on a continuous basis prior to this. The execution plan presentation is a vehicle to communicate this to all parties and identify potential problem areas both within the task force and for the wider company.

The need for a formal execution plan presentation will be advised to the project manager in the assignment letter.

Execution plan presentations will not wholly substitute the kick-off meetings, however, the nature and emphasis of these will change.

4.7 Nominated Personnel

Following the management kick-off meeting, department managers in consultation with the project director/manager shall confirm, the availability of personnel nominated at the proposal stage. If the nominated person is unavailable or if no nomination was made at the proposal stage, the department manager, in consultation with the project director/manager, shall nominate personnel for the project task force.

4.8 Meeting Records

The minutes from each kick-off meeting shall be issued by the project director/manager and distributed to all key task force personnel and departments heads in addition to those present.

4.9 Sales Administration

After the initial sales order is issued, every change in sales is to be recorded on an update of the sales order which shall be handled by the manager of contracts.

Sales can change due to change orders (positive/negative), additional work scope, changed contract conditions and incentive programs etc. Whilst the manager of contracts is responsible for sales administration after award, the project director/manager is responsible for triggering the updates to sales orders as necessary. The process is defined in attachment 4.

5. Flowchart

6. References

Document Number	Title	Level
CM-CS-204	Contract Briefing Procedure	2
CM-PE-303	Project Procedure and Execution Manual	2
BN-S-UK001/13	Project Quality Plan	5
BN-S-UK001/21	List of Authorized Signatures	5
CM-MA-114	Allocation of Charge Numbers	2
CM-MA-900	Acquisition of Office Supplies, Furniture, Equipment and Services	2
CM-PE-100	Project Specific Procedures	2
CM-PE-313	Control of Project Variations	2
CM-PE-110	Project File Coding and Maintenance	2
REC00003	Sales Order	5f

7. Attachments

Sales Order (typical example)

Project Execution Plan Contents (typical example)

Project Kick-off Check List (typical example)

Sales Administration

Sales Order: The Hague (Europe)(Typical Example)

1: Sales Order No. 21022006		2: Rev. No. 1	3: Date 21-Feb-2006			4: Contract No. 11112/54	13: Period of Performance
6: Job Number		5: Customer					14: Contract Type
2106-10		Statoil Divisjon Mongstad					FP
7: Regions’ Subsidiary Hague		Okonomiavdelingen					15: Scope of Work ENG
8: Product Line Polymers/Chemials		N-5154 Mongstad					16: Secrecy Agreement No
9: Business Development Manager xxxxxx		Norway					17: Payment Terms Net 30 days
10: Contracts Manager		21: Contract Type: PRIME					18: Total Installed Cost
xxxxxxx		22: End User					N.A.
11: Project Manager		Same					19: Contract Currency: euro
xxxxxxxx							20: Exchange Rate Used
12: Performing Location							x 1 euro to 1 euro
Hague							x.53 to 1 $ US
23: Project Description
Pre-Engineering Study					Pre-Engineering Study in connection with Modifications P-614 and PO-1533A.
Mongstad		Norway
24: Reasons For Issue
Receipt of Client’s P.O. no. 1111111 dated 25-Feb-2006 for additional work.

Definitized: Yes Date to Definitize:
	Total Contract Amount Authorised
	25: This Revision			25: Last Revision				25: Difference
26:
27: Totals (Dutch Guilder)	NL			NL				NL
28: Totals (US Dollars $)	$ US			$ US				$ US
29: Company Funded Dollars $ (Company Liability)
30: Company Funded Dollars $ (Company Liability)

Sales Order: The Hague (Europe)

Modification Log for Sales Order:			Job No:
Revision No.	Date	Reason For Issue		$US	NLG
0		Receipt of Client’s P.O. no.

1		Receipt of Client’s P.O. no. dated for additional work

SALES ORDER DISTRIBUTION LIST

Rev:1

Job No: 2198-10 Customer: Statoil Divisjon Mongsta Project: Pre Engineering Study

Addressee	Entire Sales Order (X)	Cover Sheet Only (X)	Other - Explain -
General Manager/Local Product Line
R.J. Madonia			If > 2.5M USD
Product Line -
	X
Business Development
S.G. Singleton
HUW Dolman	X
Director of Projects
F.S.M. Greven	X
Project Manager
J. Broekman	X
Contracts Manager
H.J. van Driel	X
Accounting
R.A. Staassen		X
J.G.A. van’t Hof	X
R.A. Farro	X
J.S. van der Bilt		X
Project Cost Control
C.R.A. Reid	X
H. Osegueda	X
Proposals
M. Jansen
Manager Technical Operations
M.P. Noordzij	X
Procurement
C.A. Roach	X
Quality Assurance & Safety
W.H.M. Bon		X
Construction
G.C.A. van Vliet			Contract only

File - Active Projects	X
File - Sales Order		X

By Pouch:
Contracts, Cambridge
D. Dickman			If > 2.5M USD
Product Line Executive
L.G. Modigliani - P&C			If > 2.5M USD



Accounting Dept., Philadelphia
K. Alladi		X
Marketing, Cambridge
L.M. Accardi		X
Monthly GOR Reporting
Annemarie Glass			If > 100K USD

Issued by Contracts Department European Operations, The Hague, NL

Project Execution Plan Contents		Agenda Guidelines Internal Kick-off Meetings
		Management	Taskforce
1.0	Introduction
2.0	Project Description
	2.1 Project Title, Numbers and Location	*	*
	2.2 General	*	*
	2.3 Scope of Services	*	*
	2.4 Major Project Schedule Milestones	*	*
	2.5 Project Objectives	*	*
	2.6 Contractual Highlights	*	*
	2.7 Quality Assurance	*	*
3.0	Project Management Process
	3.1 Project Management Strategy	*	*
	3.2 Special Contracting Arrangements e.g.: joint ventures, consortia, alliances	*	*
	3.3 Capital Productivity Process	*	*
	3.4 Team Building	*	*
	3.5 Risk Management Plan	*	*
	3.6 Incentive Programs	*	*
	3.7 Improvement Plans/"Stretch" Targets	*	*
	3.8 Close-out and Handover Requirements	*	*
4.0	Organization /Communication/Location
	4.1 Client's Organization and Key Personnel	* (if known)	* (if known)
	4.2 Company Organization and Key Personnel	*	*
	4.3 Language		*
	4.4 Client Reviews and Approval		* (if known)
5.0	Project Controls
	5.1 Project Controls Philosophy and Systems	*	*
	5.2 Planning		*
	5.3 Progress Measurement and Reporting		*
	5.4 Estimating and Cost Trending and Control
	5.5 Material Management
	5.6 Expediting and Inspection Summary Control
	5.7 Change Order Procedure		*
	5.8 Company Invoices
	5.9 Travel Authorization		*
6.0	Engineering and Design
	6.1 Special Design Philosophies
	6.2 Applicable Standards and Procedures		*
	6.3 Starting Basis (e.g. License Package, Black Book, etc.)	*	*
	6.4 Computer/CAD Plan	*	*
	6.5 Authority Permits		*
	6.6 HAZOP Studies		*
	6.7 Document/Drawing Register Control and Reporting		*
	6.8 Requisition Register Control and Reporting		*
7.0	Procurement
	7.1 Procurement Strategy	*	*
	7.2 Vendor List/Purchasing Plan		*
	7.3 Subcontractor List/Subcontract Plan
	7.4 Authorizations	*
	7.5 Expediting		*
	7.6 Inspection		*
	7.7 Traffic		*
	7.8 Vendor Print Control		*
8.0	Construction
	8.1 Site Survey for Construction and Labor/Staff related information
	8.2 Construction strategy and method of Execution (e.g.) Modularization, Package units etc.	*	*
	8.3 Constructability Reviews
	8.4 Construction Schedule		*
	8.5 Construction Management Organization	*	*
	8.6 SHWE Program		*

		Project Name: Project Number:
Project Kick-off Checklist
Item	Description	Ref. Doc.	Action	Dates
			By	Start	End
	Contract briefing	CM-CS-204
	Job number and any sub-job numbers issued (see attachment 5)
	PEP prepared
	Management kick-off meeting held
	Management kick-off meeting minutes issued
	Nominated personnel established
	Project organization chart agreed	CM-MA-301
	Master schedule issued
	Kick-off schedule issued
	Detailed planning initiated
	Project accounting procedure issued
	Manhour budget issued
	Agreed project controls philosophy
	Contract (or extracts) issued to all key personnel
	Proposal (or extracts) issued to all key personnel
	Task force mobilization plan established
	Arrange for the allocation of:	CM-MA-900
	17a office space
	17b office furniture
	17c computer facilities
	17d client offices, telephone, facsimile etc.
	17e secretarial personnel
	Establish and retain a list of checking/approval signatures and initials	BN-S-UK001/4
	Seek client agreement to job award publicity
	Task force kick-off meeting held
	Minutes of task force kick-off meeting issued
	Deliverables schedule established
	Deliverable schedule checked against proposal/ contract
	Establish scope change procedure	CM-PE-313
	Establish discipline needs lists
	Prepare IT plan (including CAE/CADD philosophy)
	Prepare a document distribution schedule
	Establish critical activities e.g. long lead equipment, authority approvals, shutdowns, contractual milestones and licensing agreements etc.
	Establish project filing system	CM-PE-110
	Establish project control budget
	Establish reporting procedure e.g. frequency, formats, responsibility etc.
	Distribute cut-off dates for routine reports
	Routing for approval of:
	manhour reports
	computer usage
	travel
	overtime etc.
	Establish project authorization levels
	Establish basis of design documentation
	Detail scope definition established for
	company
	client
	third parties
	Document/Drawing registration established
	Authority engineering requirements established
	Internal meeting schedule issued
	Procedures and codes available	CM-PE-101
	Subcontract strategy established
	Schedule of purchase orders established
	Vendor list prepared
	Client approvals agreed
	Sealed bid procedure established
	Procedure for invoice checking, approval and payments to vendors and subcontractors established
	Extent of and responsibility for data dossiers, design books, mechanical catalogues established
	Confidentiality agreement signed by project task force.
	Establish project code of accounts
	Client kick-off meeting held
	Minutes of client kick-off meeting issued
	Project Procedure and Execution Manual issued	CM-PE-303
	Material management plan established

Sales Administration