Replanning

Replanning in Oil & Gas: Reframing the Remaining Effort

In the dynamic world of oil and gas projects, replanning is a crucial tool for managing unforeseen circumstances and ensuring project success. It involves a deliberate re-evaluation and adjustment of the remaining project effort, often triggered by factors like:

• Changes in Scope: Unexpected requirements, design modifications, or new regulatory mandates can necessitate replanning.
• Cost Overruns: If project costs exceed the initial budget, replanning helps identify areas for cost optimization and ensure project feasibility.
• Schedule Delays: Delays caused by weather, equipment failures, or unforeseen challenges require replanning to realign the schedule and meet deadlines.
• Resource Constraints: Changes in resource availability, such as personnel or equipment, can necessitate replanning to adapt the project plan accordingly.

Key Actions During Replanning:

• Detailed Analysis: The first step is a comprehensive assessment of the current project status, including completed work, remaining tasks, resource allocation, and cost and schedule variances.
• Scope Refinement: Replanning often involves revisiting and potentially adjusting the project scope to reflect current realities and priorities.
• Resource Allocation: The replanning process re-evaluates resource needs for the remaining tasks and ensures they are adequately allocated.
• Cost and Schedule Adjustments: Costs and deadlines are re-evaluated and adjusted based on the revised scope, resource allocation, and any identified efficiencies or cost optimization opportunities.
• Communication and Collaboration: Replanning requires open communication and collaboration between all stakeholders, including project management, engineering, procurement, and construction teams.

Zeroing out Variances:

A key aspect of replanning in oil and gas projects is often the "zeroing out" of cost and schedule variances. This process formally records any historical variances, typically for completed activities, and adjusts future estimates to reflect the actual costs incurred and time taken. This practice helps:

• Improve Project Accuracy: By accounting for past discrepancies, replanning provides a more accurate baseline for future planning and cost forecasting.
• Enhance Transparency: Clearly documenting historical variances increases transparency and accountability within the project team.
• Facilitate Decision-Making: By understanding the reasons behind past variances, decision-makers can make more informed choices for the remaining project.

Replanning: A Strategic Tool for Success:

Replanning is not a sign of failure but a proactive strategy for managing the inherent uncertainties of oil and gas projects. By embracing replanning, project teams can adapt to challenges, optimize resource allocation, and increase the likelihood of achieving project goals within budget and schedule constraints.

Important Note: Replanning should be conducted with a clear focus on achieving the project objectives while considering the broader impact on the overall project schedule and budget. It's crucial to avoid unnecessary scope creep and ensure that replanning efforts are aligned with the project's strategic goals.