A major U.S. oil and gas company was in the pre investment phase of a substantial international LNG project and needed to understand the Cost, Schedule and project Risk aspects of the project to support substantial capital allocation decisions in light of existing financing strategy, Sale & Purchase Agreements (SPAs), tanker leases and other schedule-sensitive contractual obligations.
The Principals of Predictive Analytics developed a complete and integrated assessment of the project’s estimated Cost, Schedule and underlying Risk profile. Upon completion of our work, we determined that the project schedule was considered overly aggressive. As a result, our client instituted significant adjustments to the project’s schedule which had a substantial impact on time-based costs (e.g., project financing and owners’ costs). In addition, our client is considering the re-negotiation of all schedule-sensitive contractual obligations, including the project’s SPAs and tanker leases so that the LNG delivery windows are in–line with the newly projected project completion.
U.S. Federal Government Agency
A U.S. governmental agency experienced a high rate of cost and schedule growth on projects that were directly affecting organizational credibility and placing congressional funding at risk.
The Principals of Predictive Analytics reviewed the funding and project commitment processes, developed a methodology for conducting an integrated cost and schedule analysis, and trained personnel to implement the analytical techniques. The customer implemented this process to identify and set appropriate risk exposure levels for committing funding. As a result, cost/schedule performance has improved every year since implementation enhancing credibility with stakeholders, creating a more stable funding environment, and reducing volatility in annual budgeting process to deal with overruns and schedule slips.
Major Department Within U.S. Federal Government
In spite of implementing project oversight activities, our Client was constantly incurring frequent and substantial schedule slips with respect to their development projects.
The Principals of Predictive Analytics conducted a thorough review of their process and schedule analysis product.. Upon completion of the review, we developed new analysis tools and implemented an enhanced assessment processes that increased the quality of the schedules, tracked schedule performance, proactively identified issues, and provided insight into the potential for future schedule slips. This improved process reduced the analysis time by multiple weeks, allowing for timely communication and issue resolution with the development contractors.