Young Professionals

Committee
(YPC)

Texas State University

Ingram School of Engineering
April 18th, 2012

Safety Moment Sun

Exposure
Topic
With Spring just around the
corner, everyones anxious to
get outside and enjoy the
weather!
Employers and workers need
to remember that field
workers are at a high risk of
sun exposure

Issue
Overexposure can cause skin
damage and cancer. Other
side effects include:
Heat stroke, exhaustion, cramps,
and rashes
Increased risk of injury as a
result of sweaty palms, fogged
up safety glasses, dehydration,
etc.

Safety Moment
Precautions/Preventions
Wear a hat to shade your head
from the sun
Should protect neck, face, and
ears

Wear a light-colored, long

sleeve, breathable clothing
Avoid synthetics

Carry water with you at all

times and drink at least every
15 minutes
Avoid alcohol, caffeine, and
sugar

Take frequent breaks in

shady/cool environment
Adjust gradually to working in
hotter environment
Schedule most arduous work
to cool parts of the day
Wear sunscreen!

Agenda
Speaker Introductions
Introduction to AACE & YPC
Project Controls Career Paths
Industrial Engineering & Project
Controls
Scheduling Fundamentals and
Applications
Conclusion

SPEAKER INTRODUCTIONS

Speaker Introductions
Josh Rowan
8 Years Project Management / Controls
Experience
Commercial Risk Management
Capital Cost Estimating & Control
CPM Scheduling

Prior Work Experience

PricewaterhouseCoopers
Chicago Bridge & Iron
SNC-Lavalin Engineers & Constructors

Speaker Introductions
Josh Rowan (cont.)
BS in Agricultural Development,
Economics from Texas A&M University
(May 2002)
MBA in Finance (est completion
December 2012)
US Army Officer (2004-2008)

Speaker Introductions
Tanner Courrier
4 Years Forensic Claims Experience
Consulting in Complex Litigations
Construction and Government Contracts
Settlement Negotiations and
Presentations

AACE
Speaking in various industry forums
University Outreach
Event Planning

Speaker Introductions
Tanner Courrier (cont.)
BS In Construction Management
MBA In Process at UT Dallas
NAHB Student Competition Team
Certified Cost Technician, Certified
Fraud Examiner, LEED Green Associate

INTRODUCTION TO AACE
& YPC

Overview of AACE
7000 Members Around The World
84 Countries
Top Contractors And Owners
Bechtel, Flour, KBR, Jacobs, CB&I, Exxon,
BP, Chevron, Duke Energy, NRG Energy
Cooperative Agreements
American Society Of Civil Engineers
Multiple Industries
Oil And Gas, Utilities, Civil Construction,
Defense Contracting

Benefits of Membership
Discounted Membership For Students
Cost Engineering Journal (Digital Copy)
Education and technical skills at Seminars
and Annual Meeting
Preparation for Certification

Benefits of Membership
Scholarship Program For College /
University Students - More Than
$40,000 Awarded Annually

Virtual Library Wealth Of

Research Literatures
Mentoring Program
Networking And Contacts Expand
Your Opportunities With Expansive
AACE Members And Network
Where to Sign Up

Average Salary 1-5 yrs.

Experience

2010 Average Industry

Base Salary

AACE International
Certification
Entry-Level / Junior Certification
CCT (Certified Cost Technician)
Requirement: 4 Years Of Experience OR 4
Years Of College-Level Academic.

Professional Level Certification

CCE/CCC (Certified Cost Engineer /
Consultant)
CEP (Certified Estimating Professional)
CFCC (Certified Forensic Claims Consultant)
EVP (Earned Value Professional)
PSP (Planning & Scheduling Professional)

Certifications
Explained

Leve
l
Exam of Detailed
Cont
ent

Certified Cost Consultant (CCC)

/ Certified Cost Engineer (CCE)

E
V
P

P
S
P

C
E
P

C
F
C
C

AACE Certification
http://www.aacei.org/educ/cert/CCT
/

What is the YPC

The Young Professionals
Committee Is A Group Within AACE
That Interfaces With The Board of
Directors To Create Value And
Offerings For Young Professionals
YPC Gives You A Vehicle To Become
A Leader In AACE And In Your
Career

YPC Value Proposition

Why YPC?
Growth In Capital Projects
Aging Workforce
Training
Networking
Development Opportunities

YPC Events
Annual Meeting Networking Event
2012 Annual Meeting in San Antonio
July 8-11, Marriott Rivercenter Hotel
8 day passes for Texas State

Website And LinkedIn Subgroup

Cost Engineering Profile Articles
Leadership Conferences
University Outreach
Mentoring Program
Impromptu Dinners and Social
Events

PROJECT CONTROLS
CAREER PATHS

Project Controls 101

Project Controls Is That Element Of A
Project That Keeps It On-Track, On-Time
And Within Budget
Cost, Risk, Quality, Communication,
Time, Change, Procurement, And Human
Resources
Project Controls Can Be Responsible For
Projects, Programs, Or Portfolios That
Contribute To The Companys BottomLine

Useful Analogy
Cost

Estimating

Risk

Direction

Schedule

Change

Career Paths
Cost Engineer
Cost Estimator
Planner Scheduler
Claims Analyst
Project Risk Analyst
Project Controls Manager

INDUSTRIAL ENGINEERING
AND PROJECT CONTROLS

Why Projects Fail

Projects fail for any number of
reasons, including but not limited
to:
Ambiguous business case
Lack of upfront planning
Inadequate or untrained resources
Failure to properly integrate
deliverables or data
Unrealistic schedules or estimates
Poor communication
Inability to meet contractual
requirements

Industrial Engineering &

PC

Industrial Engineering (IE) can

address the root causes of project
failure
IE involves the study of how to
manage/deploy people, materials,
equipment, etc. to most
effectively/efficiently produce a
product or deliver a service
How to coordinate equipment,
materials, people to achieve project
objectives (i.e. project controls)

Industrial Engineering &

PC

Critical Path Method (CPM) Scheduling

Pre-requisite is up-front planning to
identify work activities and sequencing
Must understand which activities are
critical and how much float is available for
each
Process improvement leads to lean
project delivery

Linear Scheduling
A scheduling methodology that can be
applied to repetitive work:
pipe laying, tunneling, road construction, high
rise building construction

Industrial Engineering &

PC

Cost Management and Earned Value

Initially estimates inform project management
on number of resources required
Forecasts and trending can highlight when
additional resources may need to be applied
Cost variances can be identified and
addressed

Risk Analysis and Simulation

IE routinely creates models of how large
processes should work and performs
simulations
Project business cases and contractual
requirements should undergo sensitivity
analysis

SCHEDULING
FUNDAMENTALS AND
APPLICATIONS

Scheduling
Fundamentals
Schedule Planning and
Development: Process for planning
the work over time in consideration
of costs, time, resources, and risks.
Planning
Define roles and responsibilities
Planning of time, costs, resources, tools,
and methods required for performance of
each phase.

Identify Activities
Translate work package scope into
identifiable, manageable activities

Scheduling
Fundamentals
Develop Activity Logic
Identify dependencies/relationships between
activities

Estimate Durations
Determine start and finish dates of activities, and
resource quantity, availability, and performance

Establish Schedule Requirements

Establish project/contract time limitations, date
constraints, and other milestones

Allocate Resources
Load resources within resource consumption
limitations

Optimize, Review, Validate, Document,

Communicate, Submit, and Maintain

Scheduling
Fundamentals
Source: AACE Total Cost Management
Framework

Scheduling Application
#1
Forensic Schedule Analysis
The Investigation Of The Durations
And Causes Of Project Delays

Why Schedule
Analysis?

Time Is Money

Recovery Of Delay Damages Is

Dependent On Proof Of Delay

Delay-Related
Damages

Contractor
Extended Field
Overhead
Extended Home
Office Overhead
Price Escalation
Extended
Financing Costs
Acceleration Costs

Owner
Lost Profit/Rent
Extended
Financing Costs
Extended
Management Costs
Liquidated
Damages

Typical Work Flow

Quantify Actual Project Delays
Identify Actions, Inactions, Or Events
Which Caused Delays
Determine Liability
Identify Impact On Costs/Damages

Quantify Actual
Project Delays
As-Planned Duration = 13 Days
Plumbing

Start

Finish

5 Days

Rough In Walls

Drywall

4 Days

4 Days
Electrical
3 Days

Quantify Actual
Project Delays
Critical Path: Path With the Longest Duration
Of All Paths Through the Project
Plumbing

Start

Finish

5 Days

Rough In Walls

Drywall

4 Days

4 Days
Electrical
3 Days

Float
2 Days

Quantify Actual
Project Delays
Start

Plumbing

2 Day
Delay

Finish

5 Days
Drywall

Rough In Walls
4 Days

4 Days
Electrical
3 Days

Float
3 Days
Planned Duration : 13 days
Actual Duration:
15 days
Delay:
2 days

Identify Causes Of
Delay

Contractor Caused Delay: Located

an email from the Plumbing
Foreman to the Project Manager
Gary, we dont have the right size pipe
for this last run. The purchasing
department ordered PVC and we need
copper. We are stuck until the correct
pipe gets delivered. Please get this
ordered right away.

Identify Causes Of
Delay

Owner Caused Delay: Located an

RFI from the Contractor to the
Owner
There is a conflict in the west wall
between Column Lines 3 and 4. We
cannot fit our piping in the open space
due to an HVAC plenum that has been
previously installed. Please send a
revised detail for this section.

Determine Liability
We located a receiving report that
showed that the correct pipe showed
up on site that same afternoon.
We located a Field Change Directive
from the Owner to the Contractor
providing clarification on the drawing
conflict. It was issued two days after
the RFI and the contract stipulates a
one day turnaround on RFIs.

Calculate Damages
What will be the most likely
classification for the damages
incurred by our contractor?

Delay-Related
Damages

Contractor
Extended Field
Overhead
Extended Home
Office Overhead
Price Escalation
Extended
Financing Costs
Acceleration Costs

Owner
Lost Profit/Rent
Extended
Financing Costs
Extended
Management Costs
Liquidated
Damages

Calculate Damages
Extended Field Overhead
Overhead Component

Daily Rate

Crane Rental

$200.00

Portable Toilets

$50.00

Cell Phones

$10.00

Supervision

$450.00
Total $710.00

Damages Calculation:
2 Days x $710 = $1,420

Azure Slides
Placeholder for actual claims
example if time permits

Scheduling Application
#2
Using an integrated portfolio schedule
to monitor and improve cycle time
As-Was State
Consisted of a number of separate
planning tools which were not integrated
No overall integrated schedule, so changes
(e.g. permitting delay) not automatically
cascaded to remaining elements
Resourcing (crews, rigs, materials) done
thorough separate planning (Excel) tools
Logistics planning not optimized due to
ever-changing well development

Scheduling Application
#2

Scheduling Application
#2

Project controls meet with stakeholders to

identify /document key activities and
milestones
7 categories: subsurface, land, HES, regulatory,
procurement, construction, well closeout

Interdependencies identified and a one well

schedule template was created; Portfolio
schedule constructed around rig concept
Specialized codes allow for tracking of key
components by group
Procurement vendor, county name, land man,
etc

Scheduling Application
#2

Value Achieved

Complex interdependencies modeled to

find optimum development and spending
pace that maintains lease acreage
holding while efficiently allocating capital
and field resources
KPIs and metrics leveraged for improved
operational and financial planning
KPI and metric reporting at all levels of
the value chain
Thoroughly documented process flow
Evaluation of what-if scenarios

CONCLUSION

Conclusion
A bad system will defeat a good
person every time.
W. Edwards Deming

IIE Student Organization

April 18th, 5-6pm
Topics Discussed:
Resume Writing
On-Line Presence
Internships/Jobs
Interviewing Techniques