Project Services has 3 key functions: i) Assurance Role (Commercial) – Budget & Process Compliance; ii) Logistics & Inventory Management; iii) Estimation of Cost.
These are discussed below.
Assurance Role (Commercial) – Budget & Process Compliance
Deliverable Map
Visioning
- Mapping Compliance requirements (Governance & Statutory) to meet stakeholder commitment
Specification
- Mapping of Capex – as per project and as per facility
- Highlight process compliance (Statutory, Legal, Process) throughout the life cycle of a project
- Compliance Visualization
Build
- Monitor commitment of the projects as per approved budget and as per TSL governance framework
- Compliance Monitoring – Gap analysis w.r.t requirements
- Early warning system by compliance and concurrent audit
- Proposing evolved models of working as the project unfolds
Handover
- Scheme Closure
- Commercial Learning Document
- Project Completion Report
- Audit
Role of ‘Project Services – Logistics & Inventory Management’
This again is a role similar to planning, but from the logistics perspective.
Deliverable Map
Visioning
- Scenario modeling of logistics & warehouse management (supports commitment to key / major milestones)
- Logistics Planning for the committed milestones (storing, etc.)
- Inventory Modeling
- Integrated Logistics Plan at TSK/TSJ/ RMP level (based on commitments)
Specification
- Logistics Plan (detailed) for individual projects and Integrated Logistics Plan for all projects
(WHAT) - Logistics Visualization: (HOW – e.g. how to change packing to be able to put more material in the same trailer and save cost, S curve equivalent)
- Inventory Managemen: Finalization of space (covered / open / closed etc.), delivery mechanisms for all incoming & outgoing materials.
- Finalization of import benefits plan etc.
- Finalization of insurance policies
Build
- Proper Storage of Material
- Inventory Management
- Material Reconciliation
- Early warning and response system
Handover
Learning Document for the project (continuous practice during the project)
Role of ‘Project Services – Estimation of cost’
For Estimates, we cannot have benchmarks or scenarios, because it is linked with how you execute the project – EPC will give you a different estimate, discrete will give a different estimate. The same item, depending on the criticality, if you buy Siemens it will give one estimate, versus another company will give another estimate. What is the right estimate depends on the execution model & the potential value impact on the project.
Risk mitigation comes from here – single party vs. competitive bidding will change estimate.
Also steel prices are dynamically fluctuating. Is it impacting our estimate? How do we think 3-5 years ahead? If steel prices are going up, then we need to be buying early, therefore it connects to inventory as well.
Therefore, we can see estimation is not just compilation of past data.
Deliverable Map
Visioning
Specification
- Estimation of packages / projects aligned to the project requirement
Build
- Real-time decision support for the Project Manager
(e.g. fluctuating steel prices) - Proposing evolved models of working as the project unfolds