London 2012 Learning Legacy Programme Monitoring and Control; Change and Baseline Management, Integrated Planning

David Birch Head of Programme Controls CLM

Programme Management Strategy

Integrated Approach to Manage commercial and Delivery Performance

Trusted information to the right people, at the right time which facilitated effective decision making

Active Risk Management to mitigate or control programme strategic or project specific risks

Image

Processes

Integrated Programme

Controls

The Plan & Physical Progress Design, Procurement

and Construction

Commercial Position

Budget, Commitments & Outturn Costs

Financial Position Invoiced and Accrued

Liabilities

Systems A single source of the truth for all programme information

Schedule – Oracle Primavera P6

Cost Management – Deltek Cobra

Actual Cost – Oracle Financials

Accruals – bespoke Programme Cost Management System (PCMS)

Reporting – Data warehouse and presentation/BI tools inc Crystal Reports

PCMS

Oracle Financials

Primavera P6

Data warehouse & presentation tools

Cobra

2012 Programme

Control

Strong Governance Rigorous change control • Approval of individual ‘business cases’ • Monthly Change Board - 6,100 changes

to date • Strict levels of delegated authority • Three lines of defence for contingency

management

Monthly Trend Reviews • Assess maturing risks / contingency burn • AFC glide path to achieve affordability targets

Monthly Performance Reviews • Status and progress (time, cost, quality, priority themes, risks and issues) • Independent assurance using robust, consistent performance information –

focused on the issues • Underpinned by back-to-back contractor reviews

Programme Baseline Established in June 2007, published in November 2007

Initially a ‘top down’ approach

Original Baseline Budget (OBB) agreed November 2007

OBB includes distributed project budget, contingency, and VAT

All projects within the baseline were defined by four elements:

Scope

Schedule

Cost/Budget

Risk

The Programme BASELINE was the basis for performance measurement during execution

The Programme Baseline was formally approved and published

Once approved, was the basis for CHANGE

Base Project Contingency

Programme Contingency (P80)

Funders Contingency (P95)

Total Big Build Completion

OBB £5.15bn £0.98bn £0.97bn £1.0bn £8.1bn 27 Jul 11

Work Breakdown Structure

London 2012 Work Breakdown Structure 69 Reporting Projects 1,000+ WBS Elements Common language across Programme

Programme Change Board - Monthly

Good governance structure that required authorisation for changes

Trends process to show potential changes looming, which gave sufficient time to stop

Control of Change and Contingency

Three contingency pots Project – held within project budgets

available with Change Board approval Programme held by the ODA

accessible with approval to Funders Funders – Held by the Funding bodies

only available by application to Funders

Level 1 Milestones

Programme Critical Paths

P6 Production

Database

Tier 1 Contractor Schedules

Contractor Critical Paths

Labour (hours and cost) Equipment Materials Contracted Services Other

P6 External

Database Resources & NEC Activity List

Schedule Performance & Cost Performance

Reports etc.

Detailed EV % complete

Reviewed by CLM - Summary

Submitted

Actual Cost (via CLM

Cert)

COBRA

Earned Value

Actual Cost

ODA Finance (Oracle)

Integrated Schedule & Performance Management

CLM Integrated Level 2 Schedule

Budget, Forecasting and AFC Risk, Trends & Contingency Management

Cost Planning Phase Delivery Phase (erosion of contingency)

Contingency

Risks

Design and

Construction Costs

ODA Costs CLM Fees

Contingency

Risks

Acknowledged Trends

Unsubstantiated Trends

Mitigated

PM’s Assessment of Unsubstantiated Trends

and Risks

Original Contract Values

Acknowledged Trends

Compensation Events

Potential AFC

QRA (P80) informs level of contingency

allowance

Savings Headroom

Dynamics of Cost and Schedule Data

Baseline • Fixed • Controlled through Change

Management • Reflected current delivery strategies • Aligned with contract s • High Level – Project Milestones and

summarised Cost Loaded activities

Forecast • Dynamic • Reflects contractor current status &

progress • Includes mitigation strategies and

trends • Takes account of integration impacts • Forecasts outturn

Change Control Fed from Trending process

Trending Process Fed from forecast data and enabler for Risk mitigation

Compare Inform

Change

Drive

Monthly Reporting Cycle

Gather data and upload to host systems

Assurance, analysis ,challenge and Project Reports

Executive Management Reviews & Programme Report

Executive Management Board and Change Board

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F G I J K L M N O P Q R S T

P ID ACTIVITY ID ACTIVITY DESCRIPTION FORECAST MAY11

BASELINE MAY11

FORECAST JUN11

BASELINE JUN11

FORECAST JUL11

BASELINE JUL11

∆ FORECAST JUL11 - JUN11

∆ BASELINE

JUL11 - JUN11

∆ JUL11 FORECAS

T - BASELINE

REASON FOR VARIANCE (FC LAST MONTH - FC THIS MONTH)

EW EWSW7500 COMPLETION STOCKPILE MANAGEMENT OPERATION 04-Jul-11 04-Jul-11 27-Jun-11 04-Jul-11 27-Jun-11 04-Jul-11EW LKAV1050T HANDOVER TO AV - REMAINING MOL 6C AREA 25-Jul-11 25-Jul-11 25-Jul-11 25-Jul-11 25-Jul-11 25-Jul-11

EW LKEW2686T HANDOVER OF ATHLETE'S VILLAGE TRANSPORT MALL (ZONE 6A) FROM EW TO SBH (PROV. 2010) 04-Jul-11 28-Sep-10 04-Jul-11 28-Sep-10 01-Aug-11 28-Sep-10 -28 0 -307 Forecast for handover to SBH on

1st August.

EW EW1000 COMPLETION OF ALL ENABLING WORKS SCOPE 31-Aug-11 - 31-Aug-11 - 31-Aug-11 - 0 #VALUE!

NORTHPARK

LP LKLPR1000T HANDOVER OF HOCKEY PITCH 1 (EXC. EAST STAND) AND HOCKEY PITCH 2 FROM CLM TO LOCOG 15-Jun-11 01-Jul-11 01-Jul-11 01-Jul-11 15-Jun-11 01-Jul-11

LP LKLVZ6.6D1T Z6.6 HANDOVER DUCTS & ELEC EQPT + DT - F03 EAST - NLR (CH.400) - LPR TO UTILITIES 31-May-11 18-Mar-11 28-Jun-11 18-Mar-11 28-Jun-11 18-Mar-11

LP LKLPSEZ6.6T Z6.6 - HANDOVER BASES, DUCTS, PITS & POSTS FOR CCTV - - - - 28-Jun-11 05-Aug-11

LP CLMLPR28301 COMPLETION OF BACK OF HOUSE 4 - PHASE 1 HANDOVER to LOCOG for TEST EVENTS - - 01-Jul-11 - 04-Jul-11 -

LP CLMLPR28302 COMPLETION OF BACK OF HOUSE 4 - PHASE 2 HANDOVER TO LOCOG FOR TEST EVENTS - - 15-Jul-11 - 11-Jul-11 -

LP LKLVZ5.4D1T Z5.4 HANDOVER DUCTS & ELEC EQPT + DT - F02 WEST-L03A - LPR TO UTILITIES 06-Jun-11 31-Mar-11 07-Jul-11 31-Mar-11 13-Jul-11 31-Mar-11

LP LKLVZ6.4D1T Z6.4 HANDOVER DUCTS & ELEC EQPT + DT - F02-B/BALL WEST - LPR TO UTILITIES 31-May-11 14-Jun-11 04-Jul-11 14-Jun-11 13-Jul-11 14-Jun-11

LP LKLVZ6.3D1T Z6.3 HANDOVER DUCTS & ELEC EQPT + DT - VELO WEST & STH / BMX STH - LPR TO UTILITIES 07-Jul-11 21-Jul-11 14-Jul-11 21-Jul-11 29-Jul-11 21-Jul-11

LP CLMLPR2300 COMPLETION OF SOFT LANDSCAPING 7 21-Jul-11 21-Jan-11 27-Jun-11 21-Jan-11 01-Aug-11 21-Jan-11 -35 0 -192All works in SL7 are now complete. Works were previously in delay to revised phasing strategy.

LP CLMLPR2190 COMMENCE BACK OF HOUSE 1 (HOCKEY) 01-Jul-11 15-Jul-10 01-Jul-11 15-Jul-10 01-Aug-11 15-Jul-10 -31 0 -382

Works proceeding in line with accepted programme. Works commenced in all areas of BH1 where handovers have occurred. Due to revised handover strategy some areas of BH1 have not yet started.

LP CLMLPR2260 COMPLETION OF SOFT LANDSCAPING 3 01-Jul-11 01-Mar-11 01-Jul-11 01-Mar-11 05-Aug-11 01-Mar-11 -35 0 -157

All works in SL3 are complete. Only item of remaining works is the final connection of the irrigation booster station to permanent power. This will be completed in August.

LP CLMLPR24001 COMPLETION OF HL9 FOH BASKETBALL FOR TEST EVENT - - 05-Aug-11 - 05-Aug-11 - 0 #VALUE!

Works proceeding in line with accepted programme. Completion dates agreed in line with handover strategy to LOCOG.

LP CLMLPR2310 COMPLETION OF SOFT LANDSCAPING 10 27-Jul-11 14-Feb-11 08-Aug-11 14-Feb-11 05-Aug-11 14-Feb-11 3 0 -172Works progressing in line with accepted programme. Due for completion early August 2011.

LP LKLPSEZ6.4T Z6.4 - HANDOVER BASES, DUCTS, PITS & POSTS FOR CCTV - - - - 12-Aug-11 05-Aug-11 #VALUE! -7

Works being mitigated to achieve handover, but completion of amp base likely to be 19 Aug partially due to late instruction.

LP LKLPSEZ6.3T Z6.3 - HANDOVER BASES, DUCTS, PITS & POSTS FOR CCTV & PA - - - - 12-Aug-11 12-Aug-11 #VALUE! 0

Works proceeding in line with accepted programme. Completion dates agreed in line with handover strategy to ODA/BT.

LP LKLVZ5.2D1T Z5.2 HANDOVER DUCTS & ELEC EQPT + DT - H01 WEST-F02 WEST - LPR TO UTILITIES 29-Jul-11 14-Aug-11 02-Aug-11 14-Aug-11 15-Aug-11 14-Aug-11 -13 0 -1

Works proceeding in line with accepted programme. Completion dates agreed in line with handover strategy to UKPN.

ENABLING WORKS

LANDSCAPE & PUBLIC REALM

Schedule Reporting All Milestone Report ≈700 key milestones in change-controlled Baseline, AMR includes commentary and RAG status

Project Status Report Simple view of project Baseline

Critical Items Report Status/action on issues escalated in schedule integration process

Critical Paths The path or paths that drive project completion

Strategic Plan High-level view of key interfaces and handovers for LOCOG Test Events and security lockdown of Olympic Park

Project Cost Performance Reports At EVM Control Account level

Project Status Report Adds Project Manager’s narrative and variance analysis to raw data

Programme Cost Performance Report Summarises performance data in funding slices

Project and Programme Cost Reports Risk, Trends and Contingency / AFC modelling

Monthly Progress Report Short, simple distillation of status and key issues. Dashboards to communicate key performance trends to Executive

Progress, Performance & Cost Reporting

Key Components of the Project Status Report

Health and Safety

Project Summary and critical issues

Quality Assurance

Design issues and decisions

Performance data (EVM) and cost / EV forecasts

...supported by quantities

Priority themes

Key risks and issues

Baseline milestones and forecasts

Project Cost Report – AFC model

Governance Framework

Mature Programme Controls Schematic

Tailored reports to support

Governance decision points

Key Meeting

Key Meeting

Functions (Design, Town Planning, SHQE, etc) and Stakeholder defined

priority themes

Contract Admin

(inc Procurement)

Change Control

Risks, Issues and Trends

Schedule & Integration

Cost Engineering

Enterprise Accounting Co

ntro

lled

Perf

orm

ance

M

anag

emen

t Bas

elin

e WBS

WBS

Approved Changes

Contractor Project Team

Contractor Project Team

Contractor Project Team

Com

mon

pro

cess

es &

tool

s de

fined

in

Cont

ract

Wor

ks In

form

atio

n

Perf

orm

ance

D

ata

Contractor Project Team

Performance

Data

Reporting hub for analysis

Data with

Narrative

Data

with

Nar

rativ

e

2006 2007 2008 2009 2010 2011 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Controls Building Blocks in Place

Baseline developed & Yellow Book Published

Culture & Trust Established

Systems Maturing

Change Control implemented

Monthly & Quarterly Reviews

Trending Process

AFC process

Monthly Trend Reviews

Monthly Trend & AFC Reviews

Simplify Baseline

Schedule Integration maturing

Support & Training

Assurance, Support & Intervention (where necessary)

Align Reporting

Maturity Timeline

Big Build; Completion Big Build; Structures Big Build; Foundations Design, Dig, Demolish

Controls mature and

fully functional

Lessons Learned Agree on a ‘single source of the truth’ to fuel the Governance process

Align the reporting / governance calendar across the Programme team

Agree the detailed content of reports early and evolve to suit phase

Keep it short and simple – avoid jargon, concise and graphic exception reporting, invest time in analysis

Use data analytics but discuss only the issues and what to do about them

Keep Baseline high-level and ensure Forecast is dynamic and integrated

When fully functional an ‘Earned Value System’ is the key to success

If Projects fail to Perform, the Plan needed to change

Executive Management must accept the need to keep the plan current and approve any major plan ‘corrections’ before bringing Changes forward

Differentiators

Flexibility

Systems adjusted to suit the phase

and nature of construction

Simplicity Clear, concise and graphic reporting

Data analytics but report on the issues

‘No Surprises’ Culture Comprehensive Baseline

Spot and mitigate risks and issues early Leading to effective management of scope,

cost & schedule

Results

21

21

Olympic Stadium - Completed 2 months early

22

Aquatic Centre - Completed 7 days early

23

23

Velodrome – handed over 57 days early

Athletes Village – handover on 27 Jan 2012, right on time

Infrastructure – delivered on time

Controlling Delivery

£800m returned to Funders:

• £50m efficiency savings early site works

• £120m of value engineering savings

• £150m of procurement gains

...and the balance in risks successfully mitigated and contingencies released

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