PMI Virtual Library
© 2009 Dong Choi
Deliverable-Oriented and
Schedule-Driven Project
Execution
By Dong Choi, PMP
Deliverable-oriented and schedude-driven project execution will increase
the project staff’s productivity and the probability of the successful execution and
completion of the project on budget and on schedule.
I
n the currently prevalent lump sum turnkey (LSTK)
contract environment, the engineering, procurement, and
construction (EPC) companies should utilize the limited
resources to the maximum extent. By focusing on only the
work required to complete the project within a customer-
specified time span, the EPC companies can eliminate waste
and the overuse of resources, which will help them survive
the cut-throat LSTK competition. Some novice managers
employ the “seat-of-the-pants” management that they
inherited from their predecessors. Many fledgling project
managers have been educated in an engineering discipline
(e.g., mechanical, chemical, civil, or other majors). After
graduation, they practice in their trade as a discipline engineer
or lead for some years. Then, one day, the companies
promote the lead discipline engineer to be a manager as
a reward for his or her hard work. The lack of the formal
management training that these newly promoted managers
have is probably one cause of their “seat of the pants” project
management. This, in turn, may result in an ineffectual
project execution.
”
Deliverable-oriented and schedule-driven (DOSD)
project execution is essential in optimizing manpower
utilization and meeting the client’s ever-shortening project
schedule requirements. The DOSD project execution
addresses the scope and schedule management that are the
two pillars of the project management—the other two pillars
being cost and quality (Choi, 2008)—and is a practical way of
achieving effectual project execution.
What is DOSD Project Execution?
A deliverable is the product of an activity that is a component
of work performed during the course of a project. On a
grassroots refinery project, for example, the work of building
a refinery consists of a large number of activities such as
preparation of design documents, purchasing of equipment,
and installation of structure and piping. The products of all
the individual activities are called project deliverables, which
make up the total project scope of work.
A schedule is a plan for performing work or achieving
an object, specifying the order and allotted time for each
part. The project schedule, then, can be defined as a plan to
perform work to achieve the project objectives, specifying
the order and allotted time for individual work activities.
The project schedule is like a roadmap and itinerary to the
destination for a trip.
The DOSD project execution focuses only on the project
deliverables to be completed in the specified order within the
allotted time frames.
Why Should We Adopt a Deliverable-Oriented
Schedule-Driven Project Execution Process?
For project planning, the large numbers of project deliverables
are organized in the work breakdown structure (WBS), which
is a deliverable-oriented grouping of project components that
organizes and defines the total scope of the project (Project
Management Institute [PMI], 2008). Therefore, work that
is not in the WBS is outside the project scope of the work
and the project members should work only on producing the
deliverables in the WBS. Any work that is not related to the
deliverables will yield the waste of project resources. Hence,
the deliverable-oriented project execution is an extremely
efficient project execution that does not waste project
resources such as time, effort, or money. The deliverable-
oriented project execution allows for the project staff to
work on all the work required and only the work required to
successfully complete the project.
A well-planned project schedule will guide the project
staff to a clear path to a project success.
Lack of proper project schedule will likely:
• Cause the project due date to be missed, incurring
liquidated damage (monetary penalty paid to a customer
for not meeting the project turnover date)
• Overrun the project budget from excessive cost of catch-
up activities—for example, overtime and accelerated
equipment delivery (cost premium or air shipment in lieu
of surface transportation)
• Result in hurried and poor quality work
• Cause undue stress on the project personnel
How Should the WBS and Schedule Be Prepared?
At the onset of the project, under the direction of the project
manager, a scheduler prepares the WBS based on the project’s
overall scope. For large LSTK projects, a customer usually
specifies a WBS format and even deliverables in a request for
a quotation. Based on the overall project scope descriptions
and the customer’s specific deliverables requirement, the
WBS is developed. The WBS of previous same-kind or
similar projects, using the guidelines of Practice Standard for
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Work Breakdown Structures (PMI, 2001), can facilitate the
preparation of the WBS (see Fig. 1 for WBS example). The
lowest-level WBS elements are the deliverables that reflect the
work with specific, tangible deliverables and are called work
packages.
Preparation of a schedule generally includes the following
steps:
• A scheduler prepares project schedules based on the WBS
and other disciplines’ leads with Primavera (a scheduling
tool, discussed later in this paper) for large projects or MS
Project for small projects.
• All of the activities to produce deliverables are linked by
predecessors and successors. The predecessor activity is
the schedule activity that determines when the logical
successor activity can begin or end.
• The duration of each activity is determined based on
the work volume, unitized resource requirements, and
available resources to work off the work volume.
• Finding a critical path (the longest path of schedule
activities).
• Finding floats of the activities not in the critical path.
The float is the amount of time that a schedule activity
may be delayed from its early start date without delaying
the overall project schedule.
The following sample problem illustrates the schedule
preparation of a simplified but actual project.
Simple Scheduling Problem
• A project consists of the following activities: (1) prepare
P&IDs, (2) prepare piping drawings, (3) procure
piping material, (4) procure equipment, (5) equipment
installation, (6) piping installation, (7) hydro-testing and
pre-commissioning.
• Given:
(1) 200 P&IDs; each P&ID requires 100 man-hours; a
total of 10 process engineers in the process discipline and
each process engineer working 40 hours per week.
(2) 4,500 piping drawings; each piping drawing requires
four man-hours; a total of 25 piping engineers in the
piping discipline and each piping engineer working 40
hours per week.
(3) Procurement and shop fabrication of piping through
delivery takes 46 weeks.
(4) Procurement of equipment through delivery takes 44
weeks.
(5) Equipment installation takes 4 weeks.
 (6) Installation of total 335,000 dia-inch piping; each
welder completes 15 dia-inches per day; 100 welders
working 6 days per week.
(7) Hydrotesting and precommissioning takes 20 weeks.
• How long will it take to complete the project?
Activity Duration and Critical Path Calculation
• P&ID duration = 200 x 100 / (100 x 40) = 5 wks
• Piping dwg duration = 4500 x 4 / (25 x 40) = 18 wks
• Pipe install duration = 335,000 / (100 x 6 x 15) = 37
wks
Figure 1: WBS example.
Figure 1: WBS example.
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• Critical Path: P&ID → Piping Dwg → Pipe Proc →
Pipe Install → Hydro, Precom
• Project Duration: 5+18+46+37+20=126 weeks = 29
months
• Float of noncritical path = 126-110=16 weeks
The overall scope of work in this project consists of
seven activities. The seven activities are sequenced in the
Precedence Diagram Method in Figure 2. The preparation of
P&IDs, for instance, should be completed prior to the start
of the preparation of the piping drawings and equipment
 Precedence Diagram Method
Figure 2: Activity sequencing—Precedence diagramming method.

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procurement. After activity sequencing, the duration of each
activity was calculated dividing unitized work volume (e.g.,
20,000 man-hours required for preparing 200 P&IDs) by
unitized resource requirements (4,000 hours per week can be
worked off by 10 engineers). The numbers of weeks for the
duration of Figure
activities2:
areActivity
shown onsequencing—Precedence
the Precedence Diagram
Method in Figure 2.
There are two paths in the project schedule: P&ID →
Piping Dwg → Pipe Proc → Pipe Install → Hydro & Precom
(Path 1) and P&ID → Equip Proc → Equip Install → Pipe
Install → Hydro & Precom (Path 2). To find a critical path
and overall duration of the project, the durations of individual
activities were added. Path 1 takes 126 weeks while Path 2
takes 110 weeks. Therefore, Path 1 is a critical path (the path
with the longest duration) whose duration of 126 weeks is the
project duration in the problem.
The activity of Equip Proc or Equip Install may cause
a delay of up to 16 weeks, which still does not delay overall
project schedule. The 16 weeks of the activity is called the
“float.”
Primavera
diagramming Outputs
method.
Primavera is a universal scheduling tool for large, project-
intensive industries, including EPC.
Figure 3 shows the print-outs of Primavera run of the
sample scheduling problem.
1. The Gantt chart in Figure 3 is a typical presentation of
the schedules. From the Gantt chart, one can see that
equipment procurement is planned to:
Take 44 weeks
Start 2 October 2006
Complete 5 August 2007

Figure 3: Primavera Output—GANTT Chart.

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2. Have a total float of 16 weeks (the task can be delayed 16
weeks without delaying the overall schedule completion
date)
3. Have a predecessor of P&ID (P&ID should be
completed prior to the start of equipment procurement)
4. Have a successor of equipment installation (equipment
installation should be followed after completion of the
equipment procurement)
How Should Primavera Output Be Utilized in
Project Execution?
A Gantt chart such as the one shown in Figure 3 is used
to report the progress of the project. The progress tracking
table shown in Figure 4, however, is a powerful tool for
planning and following daily activities of the project
work. The progress tracking table shows the following:
the person responsible, when the activity is planned to
start and complete, when the activity is actually started
and completed, schedule variance, percent progress of the
activity, and links to other project documents such as action
log, best practices, lessons-learned, scope change, and
risk register.
Every project member should refer to the progress
tracking table to plan and perform his or her activities,
and should report regularly the progress of activities to
management by utilizing the progress tracking table.
Real Life Examples of DOSD
When a process supervisor was newly assigned at the process
engineering group on a multibillion dollar petrochemical
complex project in a country in East Asia, the progress of the
process group was behind schedule by three months. The
supervisor listed the entire process group’s deliverables and
divided them among the process group members according
to their capabilities. The supervisor then set up realistic
due dates for the intermediate issue dates (i.e., issue for
review, design, and construction). The progress status of
the deliverables has been tracked in the group meetings at
the start and end of the week. At the start of the week, the
group plan which deliverables are to be completed, and at the
end of the week, check how much they have completed the
deliverables planned at the start of the week. As each process
engineer has concentrated only on his or her deliverables to
meet the intermediate issue dates, the progress of the process

Figure 4. Progress Tracking Table

Figure 4: Process Tracking Table.

PROJECT Nov/15/2009
ACT ID Work Description Resp Plan Start Plan Comp Act Start Act Comp Dev. Progress Remark
Links to: Action Log,
Best Practice, Lessons
Learned, Scope Change,
Risk Register
OKGP06010 Project Procedure for Commissioning - IFR
OKGP07020 Project Procedure for Training - IFC
OKEP06030 A/G Isometrics Dwg (<3") - IFC
OKEP13030 A/G B/M Take Off - Final
OKEE09020 Relay Coordination Study - IFC
OKEE18020 Communication Plan - IFC
OKEN12020 Location Plan of Instrument by Area - IFC
OKEV32020 FDN Dwg for Safety Shower Chiller - IFC
OKEV33020 FDN Dwg for UV Light Control Package - IFC
OKEV34020 FDN Dwg for Chemical Injection Unit - IFC
OKEV35020 FDN Dwg for Local Support - IFC
OKEB08020 Chemical Storage Architecture Dwg - IFC
OKET21010 Shop Dwg for Local Support
OKEH03020 HVAC Dwg for Analyzer House - IFC
OKPS06040 Tray & Packing (Tower-1) - Manufacture (60%)
OKPS07040 Tray & Packing (Tower-2) - Manufacture (60%)
OKPS08040 Vessel-1 - Manufacture (60%)
OKPS09050 Vessel-2 - Manufacture & Ex-work (1st)
OKPS09055 Vessel-2 - Manufacture & Ex-work (1st)
OKPS10040 H/ex.-1 - Manufacture (60%)
OKPS11040 H/ex.-2 - Manufacture (60%)
OKPS14040 Plate H/ex. - Manufacture (60%)
OKPS20050 Ejector - Manufacture & Ex-work
OKPS21050 Eductor - Manufacture & Ex-work
OKPS22060 Desuperheater - Delivery to Site
OKPR08040 Cycle Water Treat'g Unit - Manufacture (60%)
OKPR09040 Incinerator Package - Manufacture (60%)
OKPR10050 Oil Mist Generator - Manufacture & Ex-work
OKPR13040 Chemical Injection Unit - Manufacture (60%)

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group has been accelerating. By the time the group has
completed issue-for-construction P&IDs, the process group
have been able to catch up with the schedule. In a small scale,
that is a management by objectives.
An EPC company was awarded a FEED verification
project for a generic FPSO. The FEED phase work was the
company’s first, and the company has limited experience
in offshore projects. A FEED verification manager listed a
table of about 500 deliverables and divided them among the
discipline leads. Upon the manager’s request, each discipline
lead filled in weekly planned completion dates for the
deliverables. A central electronic file system was set up for
filing all of the completed deliverables. As the deliverables
completed in the week were uploaded to the central file, the
deliverables list was updated. The FEED manager regularly
checked the deliverables list and reviewed the important
deliverables. The FEED verification project team finished
the final FEED verification report two weeks ahead of the
schedule and has successfully made a presentation to the
shipbuilder and owner of the FPSO to their satisfaction. The
FPSO sailed away 16 months later, on time.
A mid-sized engineering company was awarded a major
offshore brown-field project to eliminate the routine flaring
in West Africa offshore. The flare study was in a critical path.
A process engineering lead provided a project engineer with
the number of relief valves on each and every platform in the
offshore oil field. The project engineer divided all platforms
and assigned them to every study member. A progress
tracking table was developed to show a responsible study
member for specific platforms, the number of relief valves
on each platform, and the due dates of intermediate study
steps. The project engineer diligently followed the progress
of the flare relief study based on the progress tracking table,
while the senior process engineer ensured that the quality of
the study members’ deliverables met the customer’s quality
requirements. The study was completed to the customer’s
satisfaction on schedule.
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Summary
The real life examples of DOSD we have just described
demonstrate detailed plan and execution for small segments
of the overall project, and are more pertinent to working-
level members of the project staff. With DOSD project
execution, every project member, from the project manager
to the assistant engineer, will be more focused on the project
deliverables and make their best effort to meet the deadlines
of their activities. The DOSD project execution is a SMART
(Specific, Measurable, Achievable, Realistic, Timely) method
of project execution.
References
Choi, D. W. (2008, December). Understanding basic project
management. Hydrocarbon Processing, 65–68.
Project Management Institute. (2008). A guide to the project
management body of knowledge (PMBOK guide) (4th ed.).
Newtown Square, PA: Project Management Institute.
Project Management Institute. (2006).Practice Standard for
Work Breakdown Structures. Newtown Square, PA: Project
Management Institute.
About the Author
Dong Choi is project director with Tecnicas Reunidas,
managing engineering, procurement, and construction
projects in Madrid, Spain. Mr. Choi has more than 30 years
of experience with oil and gas, refinery, petrochemical, and
power-plant projects. He is skilled in project management,
supervision, process design, equipment procurement, and
plant operation. He holds BS and MS degrees in mechanical
engineering from CSULA with honors and studied
metallurgical engineering at Yonsei University in Korea. Mr.
Choi is a registered professional engineer in California, a
certified Project Management Professional, and a member of
the American Society of Mechanical Engineer. Mr. Choi has
published numerous articles in the Hydrocarbon Processing
magazine.