Project Planning & Scheduling

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.


Test Your Knowledge

Quiz: Replanning in Oil & Gas

Instructions: Choose the best answer for each question.

1. Which of the following is NOT a common trigger for replanning in oil & gas projects?

a) Changes in Scope b) Cost Overruns c) Improved Safety Procedures d) Schedule Delays

Answer

c) Improved Safety Procedures

2. The first step in the replanning process involves:

a) Communicating the changes to stakeholders b) Adjusting the project budget c) Detailed analysis of the current project status d) Re-allocating resources

Answer

c) Detailed analysis of the current project status

3. What does "zeroing out variances" mean in the context of replanning?

a) Eliminating all potential risks b) Reducing project costs to zero c) Formally recording historical variances and adjusting future estimates d) Ensuring all tasks are completed on schedule

Answer

c) Formally recording historical variances and adjusting future estimates

4. Which of the following is NOT a benefit of "zeroing out variances"?

a) Improved project accuracy b) Enhanced transparency c) Increased project scope d) Facilitated decision-making

Answer

c) Increased project scope

5. Replanning is best described as:

a) A sign of project failure b) A proactive strategy for managing project uncertainties c) A way to increase project costs d) A process only for major project changes

Answer

b) A proactive strategy for managing project uncertainties

Exercise: Replanning Scenario

Scenario: An oil & gas drilling project is experiencing a schedule delay due to unexpected geological conditions encountered during the drilling process. The initial budget allocated for drilling is now insufficient to complete the remaining work.

Task:

  1. Identify the potential triggers for replanning in this scenario.
  2. Describe the key actions that need to be taken during the replanning process.
  3. Explain how "zeroing out variances" can be applied in this situation.

Exercice Correction

**1. Potential Triggers for Replanning:** * **Schedule Delays:** The unexpected geological conditions have caused a delay in the drilling process. * **Cost Overruns:** The initial budget is now insufficient due to the unforeseen complexities encountered. * **Changes in Scope:** The project scope may need to be adjusted to reflect the new geological conditions and the associated challenges. **2. Key Actions During Replanning:** * **Detailed Analysis:** Conduct a comprehensive assessment of the current project status, including the completed drilling work, remaining tasks, resource allocation, and cost/schedule variances. * **Scope Refinement:** Re-evaluate the project scope, potentially adjusting it based on the new geological information and available resources. * **Resource Allocation:** Reassess the resource needs for the remaining drilling tasks and ensure adequate allocation of personnel, equipment, and materials. * **Cost and Schedule Adjustments:** Develop a revised budget and timeline to reflect the new realities and explore potential cost optimization opportunities. * **Communication and Collaboration:** Communicate the replanning efforts and decisions to all stakeholders, including the drilling team, management, and relevant experts. **3. "Zeroing out Variances":** * **Historical Variances:** Analyze the cost and schedule variances incurred during the initial drilling phase due to the unexpected geological conditions. * **Adjusted Future Estimates:** Use this historical data to adjust the remaining drilling cost and time estimates, reflecting the actual performance observed so far. * **Improved Accuracy:** This process provides a more accurate baseline for forecasting the remaining drilling costs and duration, enabling better decision-making and resource allocation.


Books

  • Project Management for Oil and Gas: A Practical Guide to Planning, Executing, and Controlling Projects by John M. Nicholas and Edward R. Tatum (Provides comprehensive coverage of project management, including replanning in the context of oil and gas projects)
  • Project Management: A Systems Approach to Planning, Scheduling, and Controlling by Harold Kerzner (Covers replanning techniques in a general project management context, applicable to oil and gas)
  • Project Replanning: A Practical Guide to Redefining Project Scope, Schedule, and Budget by David J. Pell (Focuses on the process of replanning, offering practical guidance for various industries, including oil and gas)

Articles

  • Replanning in the Oil and Gas Industry: Reframing the Remaining Effort by [Your Name] (This article you provided can be considered a reference for replanning in oil and gas.)
  • Replanning in the Oil and Gas Industry: A Guide to Effective Execution by [Your Name] (You can write this article, focusing on practical tips and strategies for replanning in oil and gas)
  • Cost and Schedule Variance Analysis in Oil and Gas Projects by [Author Name] (Search for articles discussing variance analysis, a key element in replanning)

Online Resources

  • Project Management Institute (PMI): https://www.pmi.org/ (Provides resources and training for project management, including replanning techniques)
  • Society of Petroleum Engineers (SPE): https://www.spe.org/ (Offers articles, research, and events related to oil and gas projects, including project management and replanning)
  • Oil and Gas Journal: https://www.ogj.com/ (Provides news, analysis, and technical information for the oil and gas industry, potentially covering replanning topics)

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  • "Replanning project management oil and gas": Refine your search by including "project management" to focus on relevant techniques and strategies.
  • "Cost and schedule variance analysis oil and gas": Explore articles about variance analysis, a crucial component of replanning.
  • "Zeroing out variances oil and gas": Search for resources discussing the practice of "zeroing out" variances in oil and gas projects.
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