TABLE OF CONTENTS
November-2019: RIMPL Gold Sponsor of PC Expo at MCG on 26Nov19
RIMPL is again exhibiting and presenting at PC Expo at the Melbourne Cricket Ground.
RIMPL will focus on the value of adopting Parametric modelling (P) of cost and schedule systemic risk in projects to reference past performance and avoid optimism bias. RIMPL's MD Colin Cropley will present on "Experience Forecasting Realistic Time and Cost Contingencies for Large and Small Projects" in the Masterclass zone at 2.10pm. RIMPL's other Directors Matt Dodds and Peter Downie will join Colin in staffing the RIMPL Stand.
November-2019: Preparation of Working Paper on Integrated Cost & Schedule Risk Analysis
RIMPL has been engaged by the Australian Department of Infrastructure, Transport, Cities and Regional Development to prepare worked examples illustrating the use of different methodologies for Integrated Cost & Schedule Risk Analysis (ICSRA). The Department proposes to publish a working paper on such methodologies in 2020 for review and feedback. RIMPL, as a member of the Infrastructure Advisory Panel, has been engaged to support this effort. The examples are expected to use Monte Carlo simulation and to include CPM-based, Parametric and hybrid methods.
October-2019: Review of Cost Time Risk & Contingency Guideline Document
RIMPL has been invited to review a Guideline document being prepared for a state government department that commissions a lot of infrastructure projects. The document addresses gaps in the Identification, Quantification and Management of Cost, Risk, Time (Schedule), and Contingency. It intends to raise the level of understanding of these matters to improve the performance of the department in specifying and evaluating such services.
August-2019: Parametric+Expected Value (P+EV) Contingency assessment for highway re-alignment
RIMPL has been engaged by an Australian mining company to assess time and cost contingency for the re-alignment of a highway using John K Hollmann's Integrated Cost and Schedule Parametric + Expected Value methodology.
The assessment is to be performed early in 2020, once the PFS inputs are finalised.
July and August-2019: P+EV Contingency Assessment & Schedule Risk Analysis for Coking Coal project
RIMPL was engaged in June 2019 to perform a P+EV Schedule and Cost Contingency Assessment using John K Hollmann's Mining Tool and methodology for a central Queensland coking coal project at the conclusion of its Pre-Feasibility Study phase.
In parallel, RIMPL was invited to perform a parallel Schedule Risk Analysis to assess schedule risk on the various intermediate milestones of the project. The work was carried out in July and August and helped the project team understand and optimise its schedule and assess its cost contingency.
July-2019: Parametric + Integrated Cost & Schedule Risk Analysis (P+IRA) Paper presented
The MD of RIMPL presented his third peer-reviewed paper to an AACE International Annual Meeting. Held in New Orleans, the conference featured Decision and Risk Management papers from various parts of the world. The paper explained in detail how the P+IRA methodology works, using a demonstration Tollway project previously used for a paper presented to the AACE Annual Meeting in Orlando Florida in 2017. The P+IRA methodology combines John K Hollmann's Parametric modelling of Systemic Risk (the major source of risk in most projects) with RIMPL's CPM-based Integrated Cost & Schedule Risk Analysis.
Both papers are available on the RIMPL website.
June-2019: Full Parametric + Integrated Cost & Schedule Risk Analysis for Pharmaceutical Project
Following on from work announced here in May 2018, the full analysis of a major pharmaceutical plant project was held from February (when the schedule was carefully reviewed after being migrated from MS Project to Primavera P6) through March when workshops were held and April when initial results were provided.
Further analyses were performed in May 2019 with new optimised inputs and the report finalised in early June 2019. The analyses over the extended involvement were used to optimise both schedule and cost risk and to trim contingency requirements for project funding.
January through July 2019: Parametric+Expected Value (P+EV) Contingency assessments for small mining projects
Arising from its participation in the 2018 Project Controls Expo, RIMPL was engaged by an Australian mining company to perform several small project contingency assessments using John K Hollmann's Integrated Cost and Schedule Parametric + Expected Value methodology. The methodology, well suited to small projects or those early in their development, was used for two tailings storage facilities at Pre-Feasibility Study (PFS) stage plus one at Feasibility Study (FS) stage.
For the FS, a Schedule Risk Analysis (SRA) was also conducted in parallel, using RIMPL's own SRA methodology, to provide more detailed information about schedule risk within the components of the project.
September-2018: QRA of Natural Gas Debottleneck Project
RIMPL was awarded a contract to perform a P+IRA assessment of time and cost contingencies for a Natural Gas processing plant in south western Victoria. The process was conducted during September and October. As well as helping the client to quantify contingencies, the schedule optimisation services RIMPL provided as part of the process helped the project team set the timing for a shutdown and assess the timing for the installation of additional compression capacity.
The analysis supported decision making for the client in commercial negotiations with a customer.
June-18: Support of Visit to Australia by John K Hollmann
RIMPL supported and helped organise a speaking and teaching tour of the East Coast of Australia by John K Hollmann, distinguished Life Member of AACE International, recipient in 2018 of AACE's Lifetime Achievement Award and author of the seminal book "Project Risk Quantification" (PRQ), reviewed by RIMPL in its 2016 Newsletter. RIMPL represents John Hollmann's company Validation Estimating, Inc. in Australia and New Zealand. John presented to Australian Cost Engineering Society (ACES) Chapter meetings in Melbourne, Sydney and Brisbane and met with senior executives in each city. He also taught a three day course based on PRQ at Engineers Australia's Melbourne office, attended by 18 people from the three states, including RIMPL Directors Colin Cropley and Peter Downie. Arising from this training, RIMPL devised a methodology to combine John Hollmann's Parametric assessment of Systemic Risk with RIMPL's Integrated cost & schedule Risk Analysis (IRA) methodology, creating the hybrid P+IRA methodology. RIMPL has been using this P+IRA methodology in its engagements by clients since then.
May-18 to First Quarter 2019: Pharmaceutical Plant project QRA Services Engagement
RIMPL was engaged to deliver Quantitative Risk Analysis (QRA) services to quantify time and cost contingencies for the design, procurement and construction of a major pharmaceutical plant project in Victoria. RIMPL has been supporting this project since the end of 2017 when a first meeting was held. The Critical Path Method based Monte Carlo Simulation assessment of cost and schedule risk is new to the client and an extended QRA readiness process has been occurring through the year.
The process culminated in late November and early December in a trial Parametric + Integrated Cost & Schedule Risk Analysis (P+IRA, see June-18 news item) and delivery of a report. The full P+IRA process is due to be performed in Q1 2019.
April-18 to December 2018: Lithium Project QRA Services Engagement
An order was received by RIMPL in response to a proposal lodged in February to deliver Quantitative Risk Analysis (QRA) services to quantify time and cost contingencies for the design, procurement and construction of a lithium hydroxide production plant megaproject in Western Australia.
The engagement was to have occurred in June, but the client deferred the QRA for three months. The services were delivered in August and September, at which time RIMPL was able to utilise its hybrid Parametric + Integrated Cost & Schedule Risk Analysis (P+IRA) methodology (see June-18 news item).
RIMPL was further engaged in December 2018 to re-analyse the project following updating of the estimate and schedule. Again the P+IRA methodology was used to provide schedule and cost contingencies.
March-18: Defence Support Services Panel
RIMPL was notified by its client Red Bay Consulting that as suppliers of Risk and Issue Management Services, RIMPL is part of a Defence Support Services (DSS) panel. Red Bay are co-developers and providers of the sucessful Schedule Compliance Risk Assessment Methodology (SCRAM) system, developed for defence sector projects to assess such projects and determine the areas where improvement is most needed to recover schedule slippage.
A 2012 Gartner Survey found that "The single most common reason that projects are considered a failure is because they are substantially late."
February-18: John K Hollmann appoints RIMPL to represent him in Australia and New Zealand, coming to Australia
Well-known and respected quantitative risk analysis specialist and author of the important book "Project Risk Quantification", John K Hollmann PE, CCP, CEP, DRMP has appointed RIMPL to represent him and his company Validation Estimating, LLC in Australia and New Zealand. John has given an enormous amount of his professional time to AACE International to edit and contribute to various Recommended Practices, including 10 years of effort in the creation and editing of the first edition (2006) of "Total Cost Management Framework", the systems engineering foundation of all AACE's knowledge base and RPs. More about John is included in RIMPL's review of his book, in our December 2016 Newsletter.
John is particularly keen to educate senior executives about the importance of quantifying project risk realistically and to teach project risk specialists how to perform the Hybrid Parametric + Expected Value schedule and cost contingency methodology described in his book.
To this end, John is visiting Australia in June to deliver a three-day training workshop in Melbourne and address Australian Cost Engineering Society (ACES) professional meetings in Melbourne, Sydney and Brisbane. He will also meet with senior business and project executives in the three cities to explain the significance of quantifying project time and cost risk realistically.
January-18: Gateway Review & Project Audits
RIMPL's distinguished Director of Contracts and Dispute resolution, Peter L Downie has recently completed a Gateway Review for the Victorian Department of Treasury & Finance. This entailed assessing procurement of new trams. It was the second such engagement RIMPL has performed in the past few years.
Peter Downie also conducted a project audit of a significant municipal recreational facility project for a Victorian municipality during 2017. it was the second such engagement in as many years.