Front End Planning: Break the Rules, Pay the Price
Front end planning is often considered the single most important and valuable process in the capital project life cycle. Also known by such terms as pre-project planning and front end loading, it represents the critical underpinning to any capital project. It is focused on a strong, early link between the business or mission need, project strategy, scope, cost, and schedule and maintaining that link throughout the project life cycle.
CII formed the Support for Pre-Project Planning Research Team to investigate the importance and the value of the process, the resources required to perform the process effectively, and to outline key process “rules.” The research team compiled 17 case studies from projects worth over $1.5 billion and analyzed project data in excess of $35 billion. Its focus was on the effectiveness of front end planning, including how it relates to alignment as well as to the use of the popular CII tool, the Project Definition Rating Index (PDRI). The PDRI is a checklist scoring system that provides users a numerical score that reflects how well a project’s scope has been defined. A total score of less than 200 is highly desirable.
The research team found that upfront investment is required, but the resulting savings are more than worth the investment. The team also developed the following critical “rules” of front end planning:
- Develop and consistently follow a defined front end planning process.
- Ensure adequate scope definition prior to moving forward with design and construction.
- Use front end planning tools.
- Define existing conditions thoroughly.
- Select the proper contracting strategy early.
- Align the project team, including key stakeholders.
- Build the project team, including owner stakeholders and consultants.
- Include involvement from both owners and contractors.
- Staff critical project scoping and design areas with capable and experienced personnel.
- Identify and understand risks of new project types, technologies, or locations.
- Address labor force skill and availability during planning.
- Provide leadership at all levels for the front end planning process, including executive and project, owner and contractor.
Projects teams and organizations that break these “rules” will pay the price in terms of disappointing results.
Organizations should develop and consistently follow a FEP process that includes team chartering, stakeholder identification and partnering, and technical scope identification.
Ensure adequate scope definition prior to moving forward with design and construction; use front end planning tools. Scope definition tools such as the PDRI are excellent resources for ensuring that scope definition is adequate. (RS213-1, p. 15)
Align the project team, including stakeholders. Project stakeholders must work toward a common goal and shared objectives. CII’s Alignment Thermometer tool is an excellent resource to help with this process.
Include involvement from both owners and contractors. Projects are successful when owners and contractors are actively involved in the planning process and remain involved throughout the project. Few owners now have the capabilities to plan all aspects of a project. Contractors should never assume that the project has been adequately defined.
This research indicates that sample projects with better-aligned teams during FEP performed almost 10% better in terms of cost and over 16% better in terms of schedule. (RS213-1, p. 11)
Staff critical project scoping and design areas with capable and experienced personnel. More experienced teams typically produce more successful projects, particularly in front end planning. The team should include personnel experienced in critical project characteristics such as piping design, equipment design, and construction.
Thoroughly address labor force skill and availability early in planning because this issue can affect project success, including contract clauses and area labor surveys to help minimize the impact of labor issues during project execution. (IR213-1, p. 19)
