GORGON PROJECT EVAPORATING CLOUD

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Prioritization of Critical Path Activities and the use of EVM to evaluate project progress at the Gorgon Gas Project

D: Implement Evaporating Cloud (Conflict Resolution)
D': Use current EVM tools to measure project progress and performance
B: Change project evaluation technique from EV to activity-based progress evaluation
C: Ensure all activities on Critical Path are prioritized
A: Complete the Gorgon Project on time and budget
Click on the icons on the arrows to see assumptions and injections
In order to Complete the Gorgon Project on time and budget I must Change project evaluation technique from EV to activity-based progress evaluation and in order to Change project evaluation technique from EV to activity-based progress evaluation I must Implement Evaporating Cloud (Conflict Resolution). But, in order to Complete the Gorgon Project on time and budget I must also Ensure all activities on Critical Path are prioritized and in order to Ensure all activities on Critical Path are prioritized I must Use current EVM tools to measure project progress and performance. I can't both Implement Evaporating Cloud (Conflict Resolution) and Use current EVM tools to measure project progress and performance.
RelationAssumption(s)Injection(s)
D-D'1. EVM does not differentiate activities on the Critical Path and others
2. Project progress activities are not undertaken by EVM unless changed
1. There is a risk of laying focus on activities on CP to the detriment of some other minor activities that could prove to be constraining realistic performance measurements, but it is not possible implement both EVM and CP together.
2. If traditional EVM tools are implemented by project managers, there is high chance of generalization of all activities and not to prioritize those on CP. This was the root cause of the problem at Gorgon
B-D1. The Root cause was using EVM and not meeting Gorgon Project goals
2. EVM does not distinguish between Critical Path and other activities
1. There is a concern that contracted parties (understandably perhaps) inflate their "earned value", meaning EVM may not be the problem, but rather work that may not have been done at all.
2. Poor overall management of the Gorgon Project by Chevron and Partners may have lead to poor application of the progress performance techniques
C-D'CPI, SPI and EAC are used to look at project progress by managersThe applicability of the traditional EVM tools are depends on the experience and knowledge of the Project Managers. This is not always the case towards as the activities on the CP are best for ascertaining the project progress performance appraisal in practice
A-B1. Activities that seem as constraints are prioritized by CP, and reflect contractors' performance
2. Activities which lie within CP and and project goals are timely identified to give clear progress report
1. Proper analysis of both constraining and non-constraining activities may reveal additional issues to inefficiencies of the Gorgon Project.
2.Given a central focus, all activities prioritized by the CP may not only be the ultimate prerequisite to completing the project on time and budget. Labour relations with the Chevron and partners/contractors seems to cons.traint the project time frame
A-C1. Activities on Critical Path are the fastest project activities
2. All project contractors will focus on activities on Critical Path
1. Experience and knowledge on CP, SPI, EAC and EVM could play major role in evaluating progress performance so as to give all stakeholders the right information to make decisions.
2. Chevron company must change its policies and procedures and focus on the use of CP.