1. Rapid Deployment Project Management Business Perspective
Market and Product Trends
Product Plan – Capacity Planning
R&D Projects
Capital Project Planning
R&D Process Development
Design Engineering - Facilities
Project Definition Funding Approvals
Design Engineering Long Lead
Launch Project
Startup-Operations-Closeout
Design Engineering Process
Procurement and Contracting
Construction
Jan 8, 2014
Prepared by Greg Scott PMP

2. Rapid Deployment Project Management Overview
Characterized by need to get new product to Market.
Very Capital Intensive Business, Typical Projects $10MM -$100MM, with months duration.
Parallel Activities R&D, Engineering, Manufacturing Facility.
Critical Decision Points Throughout
Process and Product development up to start-up
Jan 8, 2014
Prepared by Greg Scott PMP

3. Major Players in Program
Rapid Deployment Project Management
Major Players in Program
Marketing: Identifies Product and Market Parameters.
Management: Determines Cost/Benefit and alignment to Corp Strategy. Funding.
R&D: Determines feasibility, Initiates Development, Builds and operates prototype
Corp Engineering: Develops project plan, initiates engineering efforts, Construction Plans, Procurement, Etc.
Mfg Facility: Integrated throughout for impacts, logistics, operator training. QC
Jan 8, 2014
Prepared by Greg Scott PMP

4. Rapid Deployment Project Management
Success
First to Market, Superior product, Gain Market Share
Establish foothold for new family of products.
Major Cost improvements on existing products
Jan 8, 2014
Prepared by Greg Scott PMP

5. Rapid Deployment Project Management
Risks
Shorter than expected product life cycle. Insufficient ROI
Unforeseen Market Conditions, changes scope during execution.
Must assume parameters at many stages to size utilities, long lead equipment, facility
High cost, schedule and process risk as prototype facility is scaled up to full production configuration
May enter into operation without optimized process conditions established
Jan 8, 2014
Prepared by Greg Scott PMP

6. Rapid Deployment Project Management
Project Appropriation Package
Defines high level requirements
Business case, assumptions, ROI
Schedule, In House Staffing
Roles & Responsibilities- Stakeholders
Cost Estimates for
Design Engineering
Specialty Item Procurement
Construction
Start-up, training, operating spares
Risks, High Contingency Factors
Jan 8, 2014
Prepared by Greg Scott PMP

7. Rapid Deployment Project Management
Design Phase
Contract Design Engineering Resource
Establish major design criteria for:
Facility Footprint
Capacities (Power, water, process materials)
Modularize Design
Process Equipment
Logistics for product
Utilities, support facilities
Identify critical long lead items and or specialty process equipment
Identify factors not finalized dependent on R&D efforts.
Jan 8, 2014
Prepared by Greg Scott PMP

8. Rapid Deployment Project Management
Procurement and Construction Phase
Generally have a Prime Contractor established
Usually a cost+ contract
Contractor participates at times in design phase
Identify project items suited for:
Design-Build Contract
Design-Bid: Fixed Price, Guaranteed Max price, Other
Procurement:
Items specified and procured by Company
Items specified by Company, procured by Prime
Process unique components, 1st article validation
Drawing and Specifications release schedule
Interim estimating milestones
Jan 8, 2014
Prepared by Greg Scott PMP

9. Rapid Deployment Project Management
Project Controls
Define Go-No Go Gateway control points:
What must be completed (all stakeholders)
What decisions needed (all stakeholders)
Cost Check-Points
Cost Control – do not rely on expenditures only
Closely Track value of Commitments:
Purchase Orders and Contracts
Design phase releases with estimates
Design and Construction % complete with costs:
Validate actual payments with previous estimates
Consume Contingency
Consume as needed for defined risk items
Early recognition for total actual estimate vs.. Approved
Cash Flow Requirements for funding
Jan 8, 2014
Prepared by Greg Scott PMP

10. Rapid Deployment Project Management
Comments
Suitable if completion timing is critical
Has many characteristics as in Agile
Organizational Impact
Requires a culture of action, commitment
Qualified Staffing needed to minimize risk
Organization needs to commit to contingency funding
Requires qualified team of Designers, Builders
Partnership to achieve results, communication
leverage experience to maximize value
Jan 8, 2014
Prepared by Greg Scott PMP

11. $100M New Site Process Facility
Project Example #1
$100M New Site Process Facility
Jan 8, 2014
Prepared by Greg Scott PMP

12. $100M New Site Process Facility Project Structure
Project Example #1
$100M New Site Process Facility
Project Structure
Corp Engineering
R & D
Plant Operations
Project Engineering
Construction Manager
Prime Contractor
(Daniel Const)
Design Engineers
(Catalytic Engineering)
Procurement (in House)
Direct Contracts
(AdminBld: design-build)
(Storage Siles: design Build)
Jan 8, 2014
Prepared by Greg Scott PMP

13. $100M New Site Process Facility
Project Example #1
$100M New Site Process Facility
Project Challenges:
15 Month Ground break to start-up
Green Field site environmental challenges
Historic archeological site clearance
All utilities, logistical support included
Unique Project Contract
Cost Plus with Incentive Fee
Prime paid % of monthly earned fee
Performance criteria rated monthly
Project Outcome:
Project cancelled 9 months after ground break
Market demand disappeared
Jan 8, 2014
Prepared by Greg Scott PMP

14. Prepared by Greg Scott PMP
Project Example #1
Site Today
Jan 8, 2014
Prepared by Greg Scott PMP

15. Prepared by Greg Scott PMP
Project Example #2
$7M Worship Facility
Jan 8, 2014
Prepared by Greg Scott PMP

16. $7M New Worship Facility Project Structure
Project Example #2
$7M New Worship Facility
Project Structure
Building Committee
Architect
Project Manager
General Contractor
Sub Contractors
Soils Engineer
Hazardous Mat’l Inspection Hazardous Mat’l Remediation
AV Contract
Pews, Phone/Data, Other misc
Jan 8, 2014
Prepared by Greg Scott PMP

17. $7M New Worship Facility
Project Example #2
$7M New Worship Facility
Project Execution More Traditional:
Scope, Budget, Quality more important
Traditional Architect design phases
Funding and Design
Preliminary Budget Approved
Architect Selected – Competitive Evaluation
Contractor participation -
Selected based on GMP Bid, reputation, referals
Included pre-construction design participation
Jan 8, 2014
Prepared by Greg Scott PMP

18. Project Example #2 $7M New Worship Facility – Outcome
Design Development through permitting
Benchmark estimates at stages by GC
Value Engineering to improve costs
After best efforts, preliminary budget inadequate
Funding re-approved from $6M to $7M
Construction inflation over two years
Scope Changes from original assumptions
GMP Value set prior to construction start
Results
Opened on Schedule
Overcame several permitting challenges
Realized a 3% favorable change order impact
Facility met and/or exceed expectations
Operational Quality, durability realized over time
Jan 8, 2014
Prepared by Greg Scott PMP

19. Comments on Major Contract Types
Fixed Price Bid
Requires high % complete design
Caution on selecting qualified contractors
Best when overall schedule (Concept to Completion) not most critical constraint
Design-Build (Single Prime or Design plus Prime)
Most be suitable for fast paced requirements
Owners tend to have limited in house skills
Cost control by owners more difficult
Design- Guaranteed max Price
Common in Architect- General Contractor type projects
Best with GC assisting in design phase constructability
GMP built from first construction permit set.
Pricing basis details must be visible to owner
ALL – Stay on top of change orders
Jan 8, 2014
Prepared by Greg Scott PMP

20. References Major Contract Types
American Institute of Architects (AIA)
American Society of Civil Engineers (ASCE)
International Federation of Consulting Engineers (FIDIC)
Many other specialty disciplines in addition to government agencies will have their specific versions of contracts
Jan 8, 2014
Prepared by Greg Scott PMP