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Project Management Discipline Standard

Capital Project Scheduling

Project Standard 04

Document History
Issue Author/ Verifier
Date Reason for change Approver
Contributor
02 Jul 08 Rev A Approved for use N. Wright R. Hutchinson R.
Hutchinson
27 Nov 08 Rev B Issued for use in GS N. Wright R. Hutchinson R.
Hutchinson
06 May 09 Rev C Update for cross- J. Yeo N. Wright H. Mes
business use
21 Dec 09 Rev D Update for cross- C. West N. Wright H. Mes
business use G. Willner
Mar 2011 Rev E Replaced PAP T. Castellanos M. Ravenscroft R. Brouwer
terminology by OAP

The signed copy of this document is held in iPMS by the PTE Project Services organisation.
All paper copies are uncontrolled.
Project Standard 04 – Capital Project Scheduling

SCOPE
This Project Management Discipline Standard, hereafter referred to as Project Standard, lists
the Mandatory ‘Scheduling’ activities and deliverables per project phase. It also refers to
underlying Project Guides, Value Improving Practices, procedures and/or other satellite
documents.

APPLICABILITY
This Project Standard shall be applied across all Shell Businesses and Functions to all Shell
controlled Capital projects with a 100% headline size equivalent exceeding US$ 100 million
or involving unusual risk 1 . Appropriately scaled, this Standard and associated ways of
working is recommended for Capital projects with a smaller headline size.
With respect to non-controlled Joint Venture projects, Shell should use its influence to ensure
that the intent of the Standard is followed, taking a risk-based approach.

This Project Standard must be read in conjunction with other relevant Group and Project
Standards – see overview in Attachment 1.

OBJECTIVE
The objective of Project Standard 04 is to define at summary level the mandatory activities
and deliverables to ensure that:
• The planning & scheduling methodologies and activities employed by project teams
are defined and applied across all businesses
Compliance with the Project Standards is essential to ensure that the project achieves
internal Shell approvals and will also assist in obtaining external regulatory approvals.

SCALING THE ASSURANCE

Projects vary in risk profile dependent upon scope, location, complexity, level of equipment
standardisation/repeatability and many other aspects. The scope of the Opportunity
Assurance Plan and scale of the associated activities shall be risk dependent and fit for
purpose. Identified non-standard risks will require additional assurance activities and
deliverables. The suitability of the Opportunity Assurance Plan will be reviewed, agreed and
formally documented between the Opportunity/Project Management and Assurance staff,
supported by the appropriate competent discipline expert(s). For the Businesses the
Assurance Plan sign off is by the Decision Executive.
RELATED DOCUMENTS
• Group Opportunity Realisation Manual (ORM)
• Additional Business specific Opportunity Realisation Requirements (e.g. EP ORR)
• Group Opportunity Realisation Guide (ORG)
• Cross-business DCAF – Discipline Control & Assurance Framework
• Project Standard 03 – Capital Project Cost Estimating
• Project Standard 06 – Capital Project Cost & Schedule Management
• Project Guide 02c – Capital Project Estimate & Schedule Assurance Review (ESAR)
• Project Guide 04 – Capital Project Scheduling & Schedule Management
• Relevant cross-business Project Cost & Schedule Management procedures:
• Project Calendar (PSM-I-U-001182-FA-6180-0007)
• Integrated Project Planning (PSM-I-U-001182-FA-6180-0010)
• Progress Management (PSM-I-U-001182-FA-6180-0011)
• Job Pack Management (PSM-I-U-001182-FA-6180-0012)
• Cost & Schedule Risk Analysis (PSM-I-U-001182-FA-6180-0090)

1
Some of the mandatory requirements listed in the Project Standards may not be applicable/ appropriate for individual
projects, in which case deviation must be authorised by the appropriate Technical Authority as per the Opportunity
Assurance Plan.

1
 Project Standard 04 – Capital Project Scheduling

Mandatory Activities / Deliverables

Identify Assess Select Define Execute Operate

BDP BDEP
Mandatory For feasible concepts under For short listed concepts: For the selected concept: * Discuss and clarify project * Update Level 3 * Provide input into
Activities 2 consideration: * Discuss and clarify scopes, * Discuss and clarify scope, execution/CP Integrated Project Project Close-out
* Discuss and clarify scopes, execution/CP strategies and scope, execution/CP strategies and identified risks Schedule – incl and Lessons
execution/CP strategies and identified risks with Project strategies and identified with Project Team. Engineering, Procurement, Learned reports.
identified risks with Project Team. risks with Project Team. * Prepare and approve level Construction, (Pre-)
Team. * To enable concept * Prepare level 2 Project 3 overall Integrated Project Commissioning & Start-up
* On basis of Opportunity selection, update level 1 Schedule, incl Schedule Schedule, incl resource – and Maintain in line with
Roadmap, to enable concept Project Schedule(s), incl Risk Analyses, requirements & constraints, Level 4 & Lower
short listing, prepare level 1 Schedule Risk Analyses, benchmarked durations, probabilistic Schedule Risk Contractor Schedules
Project Schedule(s) with benchmarked durations, schedule contingency. Analyses, benchmarked * For Schedule/ progress
milestone activities. schedule contingency. durations, schedule management, refer to
* Execute preliminary contingency. Project standard 06
identification & deterministic * Include Scheduling (Project Cost & Schedule
(TECOP) analysis of Project instructions in ITT for Management)
Schedule Risks. Execute contract(s)

Prepare detailed schedule for Prepare detailed schedule for Prepare detailed schedule
next phase next phase for next phase
Mandatory * Level 1 overall Project * Level 2 overall Project * Updated Level 2 overall * Level 3 overall Integrated * Level 3 overall Integrated * Historical
Deliverables Schedule(s) covering feasible Schedule(s) covering short Project Schedule for Project Schedule – incl Project Schedule Schedule
concepts under consideration. listed concepts. selected concept – with Commissioning & Start-up, * Level 4 and lower information from
* Level 3 Schedule for Select * Level 3 Schedule for Define Target schedule, P50 Resource loaded, Schedules by Execute Execute phase
phase – with Resource phase – with Resource schedule and deterministic Critical path network, Contractor(s)
assessment and Critical path assessment and Critical path range of outcomes Target schedule, P50 * Level 4 Schedule for
network network, Target schedule, * Updated Level 3 schedule and range of Commissioning & Start-up
* Basis for Project Schedule – P50 schedule and Schedule for BDEP phase outcomes with probabilities (CSU)
incl Assumptions, deterministic range of * Basis for Project * Basis for Project Schedule
Exclusions and Risk treatment outcomes Schedule
Tools * Basis for Project Schedule

2
Key: BDP – Basis Design Package; BDEP – Basic Design & Engineering Package; WBS – Work Breakdown Structure, CTR – Cost, Time & Resources; ITT – Invitation To
Tender

2
Project Standard 04 – Capital Project Scheduling

Attachment 1 – Shell Capital Project Management Standards & Manuals

Opportunity/Project Management Mandatory Group or Cross-business Standards Mandatory Project Mgt Discipline 1st January Discretionary Project Mgt 1st January
Themes: & Manuals: Standards & Manuals: 2010 Discipline Guides: 2010

Governance Structure, including Opportunity Realisation Investment Decision

Mandate Manual (ORM) Manual (IDM)
Decision driven stage-gate ORP + any Business Specific Use of Capital Project Standards PS00 rev D
process additional Opportunity
Competent Resources Realisation People Standards Capital Project Organisation PS11 rev D Capital Project Organisation PG11 rev B
Requirements
Opportunity Framing, resulting in: (e.g. EP ORR)

• Scope of Work Capital Project Technical Scope PS08 rev D Technical Scope Definition part 1 PG08a rev B
Definition Technical Scope Definition part 2 PG08b rev B
Design Class VIP PG08c rev B
Value Engineering VIP PG08d rev B
Availaibility/Reliability VIP PG08e rev B
Target Costing VIP PG08f rev A
• Opportunity Roadmap

• Stakeholder Engagement plan Reputation Standard - Capital Project Stakeholder PG09 rev A
Stakeholder Engagement Engagement
• TECOP Risk Management plan Risk Mgt Manual (RMM) Capital Project Risk Management PG20 rev B

• Assurance Plan Discipline Control & Capital Project Assurance PS02 rev D Capital Project Assurance PG02a rev B
(OAP for whole Opportunity) Assurance Framework Project Execution Review PG02b rev B
(DCAF) Estimate & Schedule Assurance PG02c rev B
Review
Health, Safety, Security, Environment HSSE & SP Standards & Manuals - notably: Capital Project HSSE & SP PS01 rev D Capital Project HSSE & SP PG01 rev B
& Social Performance (HSSE & SP) - Project HSSE & SP Management Manual Management Management
- Environment Management Manual
- Asset Integrity/Process Safety Mgt Manual
- Design & Engineering Manuals DEM1 & 2
- HSSE & SP Management Of Change Manual

Project Execution Strategy & Plan, Capital Project Execution & PS10 rev D Capital Project Execution & PG10 rev B
including Interface Management Management Planning Management Planning

TQ Performance, including TQ for Capital Projects PS16 rev D TQ for Capital Projects PG16 rev B
Benchmarking

Costs Financial Control Manual Capital Project Cost Estimating PS03 rev D Capital Project Cost Estimating PG03 rev B
Manual of Authorities
Time Capital Project Scheduling PS04 rev D Capital Project Scheduling & PG04 rev B
Schedule Management

Cost & Schedule Management, Capital Project Cost & Schedule PS06 rev D Capital Project Cost Management & PG06 rev B
including Management Of Change Management Management Of Change

Contracting & Procurement Capital Project Contracting & PS05 rev D Capital Project Contracting & PG05 rev B
Procurement Procurement
Technical Quality Capital Project Quality Management PS13 rev D Capital Project Quality Management PG13 rev B

Knowledge Capital Project Lessons Learned PS12 rev D Lessons Learned process PG12a rev B
Project Close-out report PG12b rev B
Lessons Learned VIP PG12c rev B
Information Information Management Standards Capital Project Information PS15 rev D Capital Project Information PG15 rev B
Management Management
Capital Project Information PG21 rev B
Technology
Logistics Logistics Discipline Standards Capital Project Logistics PG19 rev B

Construction & Pre-commissioning Capital Project Constructability & PS17 rev D Capital Project Constructability VIP PG17a rev B
Construction Management Onshore Module Constructability PG17b rev A
Construction Management PG17c rev B

Operations Readiness, including Capital Project Operations Readiness PS14 rev D Capital Project Operations Readiness PG14 rev B
Commissioning & Start-up

Operations Operations Excellence Standards