Project Management in the Oil and Gas Industry

Table 3.9 Procurement progress measuring.
Activity
Progress Percentage
Issue RFQ to bidders
20%
Bid evaluation and selection
30%
Issue purchase order to vendor
40%
Approval of vendor prints
50%
Materials successfully passes tests/inspection
85%
Materials ready for FOB
90%
Materials received on site
100%

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Pitfalls in Time Schedule Planning 107
For overall project progress, the following measurements in Table 3.11 
can be considered as a guide line.
3.6 Planning 
Overview
The following steps are important to obtaining the schedule plan:
• Create the project definition. The project manager and the 
project team develop the statement of requirements (SOR), 
which identifies the purpose, scope, and deliverables for the 
project and defines the responsibilities of the project team.
• Develop a risk management strategy. The project team evalu-
ates the likely obstacles and constrains and creates a strategy 
for achieving the required costs, schedule, and quality.
• Build a work breakdown structure. The team identifies all the 
tasks required to build the specified deliverables. The scope 
statement and project purpose help to define the boundaries 
of the project.
• Identify task relationships. The detailed tasks, known as work 
packages, are placed in the proper sequences.
Table 3.10 Manufacturing delivery progress measuring guideline.
Manufacturing and delivery milestone
Equipment Bulk materials
All vendor drawings and vendor data approved
10%
All sub- ordered materials received by vendor
25%
10%
Materials successfully inspected, tested and 
accepted
50%
75%
All materials delivered on site
15%
15%