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3 Front-End Planning
Pages 22-32

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From page 22...
... Typically, a project will not be better than its front-end planning process. The front-end planning stage encompasses determination of the mission need or business objective, the scope for a project to fulfill the mission or objective, project justification, basic project definition, an outline of the general design, approximate benefits and costs, funding sources, risk factors facing the project, a basic organizational structure for the project, and a preliminary project execution plan.
From page 23...
... The Phase II report identified early project planning as a major factor affecting project success (NRC, 1999~. It noted that inadequate definition of project scope and inadequate preconstruction planning lead to cost overruns, schedule overruns, and failure to achieve the intended project scope and performance.
From page 24...
... Other problems included missing or deficient cost estimates, project schedules, alternative analyses, project risk management plans, and project organization documentation, all of which are key elements in front-end planning. Committee Assessment The committee took steps to assess the effectiveness of the current DOE front-end planning process by requesting CD-0, CD-1, and CD-2 documents for a selected sample of capital projects in the DOE portfolio (11 projects authorized in FY2000 and FY2001, including 5 projects from DP, 5 from EM, and 1 from SC)
From page 26...
... Further assessments of the situation, including a review of projects funded in 2002 (when appropriate) , will be made by the committee in the future; for the time being, the committee reiterates that improved project performance will require an improved front-end planning process, and that any improvement in front-end planning will require positive, aggressive action by all responsible parties.
From page 27...
... The committee believes that workshops need to include project management professionals to provide support for front-end project planning, including cost and schedule estimates and risk management. Effective front-end planning should not wait for scientific consensus on scope and design.
From page 28...
... DOE should use standard industry procedures where applicable; however, the PMSOs should provide supporting policies and procedures tailored to the specific projects and needs of each program. The PMSOs and OECM should assure the adequacy of front-end project planning prior to each critical decision, to assure that projects are not unnecessarily delayed by poor plans and that time constraints do not cause projects to be approved without adequate planning.
From page 29...
... Senior management should understand the process and should assure that effective project planning is being conducted. This can be accomplished by a number of means: Questioning at project review meetings, Providing resources to support the process implementation and training, Maintaining discipline in sticking to the plan, and Benchmarking results (NRC, 2001~.
From page 30...
... CII's Benchmarking and Metrics Data Report includes front-end-planning metrics derived from 23 questions in the PDRI (CII, 2000~. The CII database includes over 1,000 projects representing approximately $52 billion in construction costs.
From page 31...
... To overcome the lack within the department of skilled project planners and the delays in training, and to bridge the gap until a training program takes effect, DOE should establish a cadre of experienced project planners within OECM; they should have a wide variety of planning capabilities and prior experience in different project types, including high-risk projects. These individuals should be a part of the initial integrated project teams and should assist the project originators (as internal consultants)
From page 32...
... 2001. Office of Environmental Management Project Definition Rating Index Manual.


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