Infrastructure Projects in Russia

1. Infrastructure Projects in Russia Vladimir Liberzon, PMP Spider Project Team

2. Introduction • In this presentation we will discuss proven tools and techniques that are applied to management of large-scale infrastructure projects and programs in Russia • The questions during the presentation are welcomed!

3. Part 1 Large-scale Infrastructure Programs in Russia Overview

4. Infrastructure Programs in Russia • Russia launched many large-scale state infrastructure projects last years. • They include • Development of Sochi region as Recreation Area and preparation of Winter Olympic Games 2014, • Construction of trans-Syberian highways, • Construction of Dams and Power Plants around Russia, • Development of Russian Pacific Area and preparation of Asia-Pacific Summit in 2012, • Nuclear Power Plants Construction Program, etc.

5. Infrastructure Programs in Russia • These programs have multi-billion budgets, involve many organizations and include many inter-related projects. • Our company is involved in management of almost all of them. We participate as consultants, coaches and members of program management teams. • Management of such programs is very complex and we will discuss its organization and management approaches that proved their efficiency.

6. Sochi 2014

7. Winter Olympic Games 2014 • Preparation of Winter Olympic Games 2014 Program includes 213 construction projects. • They include • Construction of Olympic objects like stadiums, arenas, tramplines, ski areas, etc. • Transportation infrastructure including roads, rail roads, airport • Utility infrastructure, • Energy infrastructure including Power Plants, electric lines, gas pipelines • Hospitality infrastructure including Olympic villages, hotels, parks and recreation areas,

8. Winter Olympic Games 2014 • Sochi Olympic Games will be held at two major areas: • one of them is on-shore cluster with Stadiums for ice hockey, figure skating, curling, and similar sports, • Mountain cluster will be host for slalom, downhill, biathlon • These clusters will be connected by auto and rail roads through mountains. Construction of this roads includes six tunnels and eight bridges

9. Winter Olympic Games 2014 • Development of Sochi area will also include • gas pipeline construction, • creating of area transport infrastructure (widening of existing rail road, • construction of roads on the shore and in the mountains)

10. Trans-Syberian Highways

11. Trans-Syberian Highways • Only the railway connects Russian Pacific Area with the rest of Russia. • The program launched now will connect all parts of Russia by modern highways. • Road construction projects are simultaneously launched in Russian Pacific Area and in Siberia.

12. Trans-Syberian Highways • In the Pacific Area the program includes following highway construction projects:

13. Trans-Syberian Highways • There are several dozens construction companies that build these roads. • The program is managed by specially created state owned management company.

14. Boguchansk Dam

15. Boguchansk Dam • Boguchansk Dam in the middle of Siberia on Angara river is one of the largest. • Planned capacity is 3000 Mv • Length exceeds 2.5 km, • Artificial lake will cover 2,326 km2

16. Development of Russian Pacific Area • Russian Pacific Area Development Program has top priority. • Russian Government invests huge money to develop this area that was always remote and unpopulated. • This program will create a new face for Vladivostok, Russian Pacific Capital. • Two huge bridges over the ocean will be built.

17. Development of Russian Pacific Area • Bridge to Russkiy Island: • Total Length - 3100 m • Central Part - 1104 m • Width of the road - 23,8 m • Pylon Height - 320 m • Height over sea - 70 m

18. Other Programs • Russia plans to invest more $60bln in the construction of new Nuclear Power Plants • Russia plans to construct high speed railway between Moscow and St. Peterbourg • Russia invests in the development of modern technologies (Nano technologies in particular) • Economic crisis somewhat slowed the development but major programs did not stopped.

19. Program Management • All large-scale programs are managed by specially created management companies: • Olimpstroy for Sochi 2014 • Far East Directorate for Pacific Development Program, • Far East Road Construction Directorate, • Atomenergoprom for Nuclear Power Plants Program, • Etc. • Management of Russian large-scale programs is based on similar approaches that we will discuss in this presentation.

20. Part 2 Program, Portfolio Management System Organization

21. Program and Portfolio Management Requirements • To make Programs and Portfolios manageable there are certain requirements to all Program/Portfolio participants and projects that include: • Common methodology shall be used for scheduling, budgeting, reporting and analyzing project data, • The same or compatible PM software shall be used, • The same WBS templates shall be applied to all projects in the program/portfolio, • The same resource, cost, material dictionaries shall be used in all schedule models and reports, • The same production norms and unit costs shall be used for contracting and estimating project performance

22. Program Management Office • PMO is an organizational unit to centralize and coordinate the management of projects under its domain. This unit was created in every Program management organization. • Main departments of PMO (by functions): • Methodology • Analysis • Correspondence and Archives • Program/Portfolio Management

23. PMO – Methodology Department • Main functions of Methodology department: • Development and actualization of the Project Management Guidelines and other Program management standards and requirements, • Organization of Project staff training, • Consulting, coaching, auditing Program participants • Development and actualization of the organization knowledge base.

24. PMO – Analysis Department • PMO Analysis department: • Develops and implements Program dictionaries and reference-books for costs, resources, materials • Develops project WBS and other templates • Helps project planners with creating project computer model, project scheduling and budgeting, performance monitoring and reporting organization, • Develops and applies standards for group work with the Program files and data.

25. PMO – Analysis Department • PMO Analysis department: • Develops and works with the Program computer model, • Regularly collects and analyzes actual data, • Manages Program computer models archives, • Supplies project stakeholders with the performance reports and other necessary information, • Maintains PMIS and data safety.

26. PMO – Archive Department • PMO Communication and Archive department: • Manages communications with program stakeholders, • Manages program archives, • Creates and maintains the library of past projects archives.

27. PMO – Program Management Department • PMO Program Management department functions: • Program Scheduling and Management, • Management of project priorities, • Management of Program Risks, • Dealing with conflicting and competing project requirements, • Analysis of change requests and Integrated Change Control

28. PM Information System • Most large-scale programs in Russia are managed using Spider Project software that is considered as most functional, powerful and flexible system. • Spider Project usage is required from all programs participants. It makes data consolidation and management easier and more reliable.

29. PM Information System • One of the reasons for selecting Spider Project as the program management tool is based on its ability to work with physical quantities (volumes) of work to be done on project activities. • It helps to implement corporate norms like unit (physical) costs, unit material requirements, resource productivities (units per hour), etc. • Spider Project permits to create program (corporate) templates, dictionaries, and databases (reference-books) that are necessary for proper program management.

30. Part 3 Program/Project Data

31. Data requirements • The requirements to the data that are used for program planning and control may be divided into two main groups: • High level requirements based on program/portfolio management needs, • Low level requirements that shall be applied to creating project computer models. • High level requirements consider data organization, • Low level requirements cover details and instructions on creating project computer models.

32. Organizing data • The same Project, Phase, Activity, Resource, Material, and Department coding structures are used in all projects, • Resources that are used in all projects belong to the program (corporate) resource pool, • Resources of the same type share the same characteristics (like cost, production rates, material consumption per work hour),

33. Organizing data • Program management systems have specific requirements that are vital for successful implementation. • It is necessary to be sure that: • WBS structures that are used in different projects of the program are compatible, • Project costs have the same structure in all projects (same cost components are used), • Cost accounts are the same in all projects,

34. Organizing data • Activities of the same type have the same characteristics in all projects (like unit cost, material requirements per work volume unit, etc.), • Typical resource assignments have the same characteristics in all projects (like productivity, cost and material requirements), • Typical (repeating) processes are modeled in the same way in all projects, • Project archives are kept and stored as required.

35. Organizing data • These requirements are set on the Program level and are mandatory for all program participants. • Templates, reference-books, coding systems etc. are developed in the Program Management Office.

36. Program Databases (Reference-Books) • Activities, resources and resource assignments belong to the same type if they share the same characteristics like unit costs, material consumptions per work volume unit, productivity, etc. • Program Management office creates Databases or Reference-books that contain those parameters that shall be used for planning of all projects of the Program.

37. Program Databases (Reference-Books) • Program Reference-books include at least: • Activity cost and material requirements per volume unit for all activity types, • Resource assignment cost and material requirements per volume unit for all assignment types, • Resource assignment productivities for all assignment types, • Resource assignment work loads for all assignment types.

38. Typical Fragment Library • Project fragments usually describe typical processes and technologies that are used more than once as small projects. • Creating project computer models using the library of typical fragments helps to avoid inconsistencies and assures that the project model follows Program standards. • A library of typical fragments is very important tool for the development of common culture and management standards.

39. Program Templates • Program management has to be based on the program standards. These standards include not only estimates of the typical activity and assignment parameters process and but also project templates. • Besides Program Management Guideline developed in the Program Management Office describes Program management routine (when and what reports shall be presented, performance review meetings schedule, etc.) and change management processes.

40. Organizing data • This slide shows WBS template for construction projects required by Program Management Office of Olimpstroy.

41. Project Data Structure • The main elements of any project computer model include: • project activities, • activity dependencies, • resources and their assignments, • calendars, • Costs, • Project, Work, Resource and Cost Breakdown Structures.

42. Project Data Structure • Now we will discuss special requirements to project data that are necessary for most infrastructure projects. • Some of these requirements are used in the process of project schedules assessment.

43. Activity Data • Usually project activities are characterized by their duration or effort. But in most cases and especially in construction projects it is necessary to set activity’s physical volume (or quantity) of work. • Activity volume can be measured in meters, tons, etc., planned work hours, percents or any other units. • Unlike activity duration, activity volume does not depend on assigned resources. • Project performance reports always include actual volumes that were done on project activities.

44. Activity Data • By introducing activity volumes, we will be able to use Program/corporate databases that define: • cost and material requirementsper activity volume unit for different activity types. • Resource assignment productivity or production rate for different assignment types. • Activity duration is calculated basing on activity volume and assigned resource productivities. PMBOK Guide call this method as Parametric Estimating of Activity Duration.

45. Dependency Data • Many infrastructure projects include linear construction (roads, railroads, pipelines, etc.). In such projects many types of work can be done in parallel but on some distance between them. Such logical dependency may be described as Start to Start link with Volume Lag. • But Start to Start link shall be supported by Finish to Finish link to prevent preceding activity “catching” succeeding activity. So it is necessary to set more than one link between activities and to check if Start to Start links are supported by Finish to Finish links.

46. Resource Data • Resources are divided into two classes: • renewable(human resources and mechanisms) and • consumable (materials). • It makes possible to assign materials to resources defining their consumption per resource work hour or work volume unit. • Example: a car consumes gas.

47. Resource Data • Besides the individual resources there is a need to set resource crews (we call them multi-resources) and resource skills (roles). • Multi-resourcesare the settled groups of resources working together. • Multi-resources can be assigned on activity execution. • Assigning multi-resource project planner assigns all resources that belong to this multi-resource.

48. Resource Data • If resources can do the same work then they belong to the same Skill set or Resource Assignment Pools. • Resources with the same skillsare interchangeable though they may have different productivities performing the same activities. • One resource can belong to many Skill sets. • Example: excavators of different types that may be used on earth moving works.

49. Assignment Data • Resource Assignments have their own characteristics including: • Resource productivity on assignment, • Assignment cost (may be fixed, per unit of work volume, or per hour), • Assignment material consumption (fixed, per unit of volume, or per hour), • Resource workload (% or resource work time that is required on concrete assignment)

50. Assignment Data • Assigning resources to activities implies the notion of ateam - a group of resources working on an activity together. The team can include individual resources, multi-resources and skills. • If resources belong to different teams then they can work independently of each other at different time. This is the way to simulate working in different shifts on the same activities.