1. Cycle Time Efficiency Model
By: Mike Kenefsky, PM Vitals

2. About PM Vitals
PM Vitals is a “Software as a Service” (SaaS) business made up of project administration experts (accounting, data management, project management, project controls, scheduling, supply chain management and safety management)
PM Vitals provides project specific software solutions for complex EPC/CM capital projects throughout the lifespan of a project

3. Dynamics of a Complex EPC/CM Environment
Heavily regulated by government agencies
High level of quality standards
Multi-tiered suppliers/subcontractors influencing major scopes of work
Technically sophisticated design
High level of oversight/involvement by all parties
…just to name a few

4. Industry Challenges & Pitfalls
Deployment of infrastructure in short window of time
Overwhelmed by project complexity
Limitation of time to perform critical analysis
Pitfalls
Recognizing risks early
Prioritizing work activities
Undertaking opportunities to improve

5. Project Objectives
Determine the cycle time required to support a given process activity accounting for all downstream work activities and risk items
Evaluate how an integrated systems approach may optimize a savings, in time, for a process, project &/or business (prospective client)
Standardize the simulation to be applied for future projects
Because of these challenges and pitfalls, it seems apparent that we can make up some ground here. I chose to analyze work process activities and my objectives were to:

6. Project Activities & Tasks
Identify Direct Process Activity
Determine Objective (minimize time, minimize cost, etc.)
Model Process Workflow
Gather Data for Each Process Activity
Verify Accuracy of Process, Process Work Activity Durations, Likelihood of Occurrence & Risk Items
Perform Simulation Using Monte Carlo Model
Analyze Results and Apply PM Vitals’ Efficiency Influence Factor to Achieve Objectives

7. RFI Initiation and Downstream Process Activities
RFI Assembly & RFI Response
Design Change Issued (tech)
Change Order Issued (vendor contract)
Fab Detail Review/Approval
Fabrication
Shipment
Receiving
Terms & Graphical Legend
Process Work Step (detail work steps not shown in graphic)
Process Duration
Process Model (overall sequence of related processes)
Probability Branch (reflects chance of process path deviation)
Risk Item (reflects likelihood of known unknowns occurring)
Base Parameters
Fabricated item involved

8. RFI Initiation and Downstream Process Activities
RFI Assembly & RFI Response
ex: Is this the right location?
(60%) No Further Action required
ex: Yes, proceed accordingly
(40%) Design Change Required
ex: No, a change is forthcoming
Design Change Issued (tech)
ex: Correct location defined
(40%) No Further Action required
ex: New location impacts dimensions
(60%) Change Order Required
Change Order Issued (vendor contract)
ex: Vendor notified
ex: Vendor submits product data of new panel
Fab Detail Review/Approval
(10%) No Further Action required
ex: Client has panel in stock
(90%) Fabrication Required
ex: Panel fabricated by supplier
Fabrication
Shipment
Receiving
(10%) Misfabricated Items
(20%) Delivery Delay
(10%) Nonconformance Identified
Terms & Graphical Legend
Process Work Step (detail work steps not shown in graphic)
Process Duration
Process Model (overall sequence of related processes)
Probability Branch (reflects chance of process path deviation)
Risk Item (reflects likelihood of known unknowns occurring)
Base Parameters
Fabricated item involved

9. RFI Initiation and Downstream Process Activities
RFI Assembly & RFI Response
Determine “Direct” Utilization of personnel versus “Indirect” Utilization
“Direct” utilization includes personnel physically working to support a process activity
“Indirect” utilization includes time between “Direct” work activities between work queues and between organizations
(60%) No Further Action required
(40%) Design Change Required
Design Change Issued (tech)
(40%) No Further Action required
(60%) Change Order Required
Change Order Issued (vendor contract)
Fab Detail Review/Approval
(10%) No Further Action required
(90%) Fabrication Required
Fabrication
Shipment
Receiving
(10%) Misfabricated Items
Indirect Utilization
Direct Utilization
(20%) Delivery Delay
(10%) Nonconformance Identified
Terms & Graphical Legend
Process Work Step (detail work steps not shown in graphic)
Process Duration
Process Model (overall sequence of related processes)
Probability Branch (reflects chance of process path deviation)
Risk Item (reflects likelihood of known unknowns occurring)
Base Parameters
Safety Significant item involved

10. P
LA Y

11. Confidence Interval of 90%... 175 Days!
Simulation Results
Direct Work Activity
Total Cycle Time
Downstream Work
Indirect Work
Confidence Interval of 90% Days!
Risk Items

12. PM Vitals’ Influence
Efficiency Factor:
40%

13. Conclusions & Recommendations
Interdependencies of process activities must be considered when planning work effectively
Majority of time is spent supporting indirect “non-utilized” process work activities
PM Vitals to use this model to discuss with prospective clients how integrated solutions can improve a complex project schedule
Failure to integrate the project team at all levels of the supply chain exposes project to ineffective planning initiatives, increased schedule delays, and additional costs
Recommendations
PM Vitals to use the simulation model as a continuous improvement initiative for current clients

14. Questions & Answers