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Decision Package Guidelines
Project Resources Company Decision Package Guidelines Date
Description
8/27/12
Revision By
Original to MS SharePoint
George DeVore
Document Control Number Project M
Area 4600
Discipline PD_
Type MAN
Originator PRC
Package 0000
Sequence
Sheet
00407
00
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only This document contains confidential and proprietary information for use by employees and authorized agents of Chevron Corporation and its s (Company). No other use is authorized without prior written permission from Chevron Corporation or its appropriate .
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page 1 of 12
Decision Package Guidelines
Decision Packages The purpose of this section is to provide guidance regarding development of appropriate Decision Packages (DSPs) for Major Capital Projects. A DSP summarizes project deliverables to key project decision making, such as whether to move a project into the next DEP phase. The key customer is the project Decision Executive (DE). A DSP also summarizes the work completed, the key decisions made, and the rationale for those decisions, which are useful for purposes such as onboarding new Decision Review Board (DRB) . This material has been updated (see date in filename in footer) and is the source for section 4.6 on DSPs in the PM Handbook.
When Does the Project Need a DSP? Major Capital Projects generally need a DSP for the key project decisions that will be reviewed by the DRB and made by the DE, including: 1.
All phase-gate decisions.
2.
Other key milestones and strategic decisions, for example, the selection of the preferred alternative in Phase 2.
The project manager should have a discussion with the DE, agreeing which decisions will require a DSP and clarifying expectations regarding what information the DE and DRB will need to those decisions.
Characteristics of a Good DSP A good DSP is both clear and thorough. This means the reader will be able to understand the information in the DSP without referring to other documents. Other documents will be needed to provide more detail, but the DSP should stand alone as a document providing the key information to decision making. In general, the DSP is not a set of PowerPoint slides. Slides, while useful for presentations, are neither an adequate nor an appropriate format for a DSP. A simple and effective format is to present the DSP in three sections: 1. An executive summary that clarifies the decision(s) the DSP is addressing and presents the recommendations with key ing reasoning. This is typically no more than about one page. 2.
The primary documentation ing key deliverables and decisions.
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page 2 of 12
Decision Package Guidelines
3. A list of ing documentation and other deliverables for reference in case a reader needs further information. For example, DRB will typically need to dive deeper into their functional areas. DSP content will vary from phase to phase and with the size and nature of the project. Examples of DSPs can be found on the DEP Web site. Project Management Handbook Section 3.5, Phase-by-Phase Description, provides a high-level listing of phase-appropriate deliverables. Chapter 2, Chevron Project Management System, provides a comprehensive listing of expectations by phase.
Developing the DSP The following figure and discussion provide a high-level process for developing a good DSP.
Development and Application of the DSP
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page 3 of 12
Decision Package Guidelines
Project Execution Planning and the DSP As part of project execution planning, the project team is expected to identify all key decisions, and the sequence of those decisions, needed in the next phase, as well as identify deliverables needed to the making of those decisions. With the Project Execution Plan (PEP) objectives and strategies, the detailed plans, and the schedule, the project team will have a comprehensive set of plans to accomplish these deliverables. Identify DE/DRB Level Decisions Which will Require a DSP The project manager should discuss with the DE and agree which decisions will be made by the DE, and for which of those decisions the DE wants to engage the DRB. Each of these key decisions will require some type of DSP. Outline the Information Needed for Each DSP Early in each DEP phase, the project manager should engage the DE and DRB in discussing and agreeing to the expectations for the DSP for the next phase-gate decision, as well as for intermediate DE/DRB level decisions. Extract the Information Needed for Each DSP As the work progresses, the project team can extract information needed from mature deliverables into the DSP. With this approach, little “extra work” will be needed to produce a high-quality DSP. Keep the DEP principles in mind when preparing your DSP: •
Decision driven — Keep the DSP focused on the information that is necessary and sufficient for the decision makers to make the required decisions.
•
Focus on key value drivers — Focus the DSP on describing the potential value of the project, including the associated risks and tradeoffs. When including detailed information and analysis, whether historical, technical, commercial, or operational, make it clear to the reader how that information contributes to the project’s value and understanding of the risks.
•
Use of integrated multifunctional teams — The DSP represents the key results of the entire integrated multifunctional team.
•
Effective input, communication and alignment between teams, decision makers, and stakeholders — the DSP is a tool for communication and alignment.
•
Consistent use of best practices and tools — Demonstrate the use of these practices and tools, especially in conjunction with the focus on value.
Review the GO-36 (Appropriation Request) documentation and examples when preparing a DSP. This is not to say that preparation of the GO-36 should be left until DSP preparation. To the contrary, teams should be encouraged to make an early start in GO-36 preparation, and hold a final review when the DSP is being put together. © 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page 4 of 12
Decision Package Guidelines
Keep in mind that the DSP serves as a reference for project lookbacks, in both DEP Phase 4 and Phase 5. By documenting the thinking and data behind a project decision, the DSP will allow a lookback team to assess the quality of the decision relative to the project outcome. It will provide a means for interpreting when a good, or bad, outcome is due to chance, rather than good or bad decision making. It will provide the basis for decision process improvement and meaningful ability.
DSP Content DSP content will vary from phase-to-phase and with the size of the project. This section gives guidelines for the minimum requirements for DSPs for major capital projects. Example DSP table of contents are listed on the last two pages of this guide. Phase 1 DSP Minimum Requirements The key decision at the end of Phase 1 is about whether to proceed with generating alternatives. We need confidence that the opportunity is framed well, strategically aligned with our business, and that the business case s committing the resources needed in Phase 2. The Phase 1 DSP needs to provide the information to these decisions and typically includes the following: •
Framing Document A Strategic Framework Document summarizing the insights from discovery (strategic fit, project complexity, and the business and competitive environment) A Framing Document summarizing the results from definition and structure (For suggested content, please refer to the Framing Practice Area on the DEP Web site.)
•
Preliminary Assessment An alternative to serve as the basis for the Phase 1 economics A reference case which reflects the current operating plan for the asset or business without the investment proposal (to correctly estimate the value created by an investment proposal) Preliminary economics, including cost estimate and revenue estimates A summary of the lessons gathered from relevant projects (such as analogs to other assets)
•
Preliminary Overall Plan Sequencing of project strategic decisions Preliminary overall project schedule
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page 5 of 12
Decision Package Guidelines
PEP for Phase 2 as a reference •
Summary of the key issues regarding the Project Execution Plan for Phase 2, such as staffing and resources
•
Other optional components Summary of the Phase 1 PReP Assessment
Phase 2 DSP Minimum Requirements The key decisions at the end of Phase 2 are about whether to approve the selection of the preferred alternative(s) and to proceed with development of the preferred alternative(s). The Phase 2 DSP needs to provide the information to these decisions and typically includes the following: •
Framing Document reflecting any revisions made during Phase 2
•
Description of the short list of alternatives that were given significant consideration (depending on the number of alternatives considered, you may want to provide a list of all alternatives considered) Consistent level of detail in the cost estimate for each of the viable alternatives considered to ensure consistent evaluation
•
Description of the rationale for the selected alternative(s) Summary of the deterministic and/or probabilistic analyses of the alternatives sufficient to the selection of the preferred alternative Other less-quantitative analyses (e.g., stakeholder analysis, market analysis, fit with base business) Preliminary Basis of Design for the preferred alternative Summary of risk and uncertainty management plans describing key factors that could significantly affect project outcomes with planned mitigations Documentation of the team’s perception of decision quality (DQ Spider Diagram), along with a description of the gaps, and why this level of decision quality is appropriate for this decision, specifically address the quality of the data affecting the top few uncertainties from the Tornado Diagram
•
Preliminary Overall Plan Sequencing of project strategic decisions
Preliminary overall project schedule
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page 6 of 12
Decision Package Guidelines
PEP for Phase 3 as a reference •
Class 2 cost estimate on the preferred alternative
•
Summary Estimate and Schedule Assurance Review findings,
•
Summary of the key issues regarding the Project Execution Plan for Phase 3
•
Project Management Practices and VIPs Summary of efforts to seek and incorporate lessons learned Summary of the phase 2 PReP Assessment Peer Review Report (including team’s responses) Summary of the key VIPs applied and the benefits
•
Other optional components Peer assist information, if peer review was not required Results of an FEL Pacesetter evaluation, if one was done Subsurface Technical Review results, if needed
Phase 3 DSP Minimum Requirements The key decisions at the end of Phase 3 are about whether to approve funding and proceed with execution. The Phase 3 DSP needs to provide the information to these decisions and typically includes the following: •
Fully defined scope reflected in the Basis of Design Lockdown
•
Class 3 cost and schedule estimates, along with summary findings of the Cost and Schedule Risk Assessment
•
Project Management Practices and VIPs FEL Assessment and cost & schedule benchmarks Summary of efforts to seek and incorporate lessons learned Summary of the phase 3 PReP Assessment Summary of key VIPs applied and the benefits
•
Sequencing of project strategic decisions
•
Summary of the key issues regarding the Project Execution Plan for Phase 4, including a description of the contracting strategy
•
Summary of the integrated project plan and schedule for Phase 4
•
Other optional components
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page 7 of 12
Decision Package Guidelines
Outcomes of any pilot projects •
Phase 3 Peer Review Report
•
Reference Documents: PEP for Phase 4 GO-36 funding request and ing documentation Economic analysis as required in the Corporate Investment Analysis Manual Summary of the decision analysis Summary of risk and uncertainty management plans Phase 2 Peer Review Report, with summary of actions taken to close identified gaps Documentation of the team’s decision quality (DQ Spider Diagram), along with a description of the gaps, and why this level of decision quality is appropriate for this decision
Phase 4 The key decisions at the end of Phase 4 are quite different from earlier phases. At the end of Phase 4, we need documentation to the handover to operations, to project lookbacks, and to close out the project. These documents do not constitute a DSP; rather they meet specific needs for which you will find more information in the Project Management Handbook.
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page 8 of 12
Decision Package Guidelines
DSP Table of Contents Example 1, organized by the 6 elements of Decision Quality The example below is appropriate for Phase 2 DSPs, and DSPs for most intermediate decisions. Table of Contents
Description
1. Executive Summary
Purpose of this DSP – the decisions to be made Project team recommendations
2. Frame
Summarize the information needed to demonstrate that the project is appropriately framed, and provide a link or reference to the full project framing document. If this DSP is for an intermediate decision, provide any additional information needed to frame the specific decision(s) to be considered.
3. Alternatives
Summarize the alternatives considered to demonstrate that an adequate range of creative, doable alternatives have been considered. Summarize each alternative sufficiently to enable decision makers to understand the scope of each. Provide a link or reference to full descriptions of each alternative.
4. Meaningful, Reliable Information
Summarize the information most relevant in the analysis, and demonstrate that the appropriate level of meaningful, reliable information was used, including the key uncertainties and risks.
5. Values and Tradeoffs
Summarize the results of the evaluation to clarify (and quantify wherever possible) the tradeoffs. This includes rationale for the rejection or acceptance of the alternatives, presentation of cost & schedule, NPV & DPI, s-curves, etc.
6. Logically Correct Reasoning
Summarize the analysis and the analytical models to demonstrate that: • The DA model is reliable, appropriately modeling the opportunity. • The ranges of inputs are appropriate and unbiased.
7. Commitment to Action
Provide information to demonstrate the level of commitment to action of the key stakeholders.
8. Project Team Recommendation: the Preferred Alternative
Provide further information regarding the Preferred Alternative, as appropriate.
9. Project Execution Plan
Summary of the project execution plan, including the project execution planning approach, the road map, the objectives & strategies document, the project schedule, project organization and resources. Provide a link or reference to PEP documents, including detailed plans.
10. Project Assurance
Summary of project assurance activities, and information to indicate how findings have been adequately addressed.
Appendix
As needed, link or reference to other project documentation
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page
Page 9 of 12
Decision Package Guidelines
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only. 12
Page 10 of
Decision Package Guidelines
DSP Table of Contents Example 2, organized by topical area, for Phase 3 DSPs Table of Contents
Description
1. Executive Summary
Purpose of this DSP – the decisions to be made Project team recommendations
2. Project Frame
Summarize the project frame, and provide a link or reference to the full project framing document.
3. Project Background
Summarize the background and history of the project up to this point.
4. Description of the Recommended Development
Summarize the recommended development scope. Include the integrated basis of design and a description of each element of project development scope.
5. Concept Selection
Summarize the alternatives considered, the rationale for the rejection or acceptance of each alternative, and project team recommendations regarding Phase 3 development decisions. Provide sufficient information for decision makers to assess decision quality.
6. Commercial Agreements
Summarize the status of commercial agreements, as appropriate for the project.
7. Marketing
Summarize the status of marketing arrangements, as appropriate for the project.
8. Development Costs
Summarize the project development costs, along with information to clarify the class of estimate and the ranges of uncertainty.
9. Schedule
Summarize the project schedule, along with information to clarify the ranges of uncertainty.
10. Economics
Summarize the project economics.
11. Risks & Uncertainties
Summarize the project risks & uncertainties.
12. Project Approvals
Summarize the plans for attaining project approvals & funding from all partners, as appropriate for the project.
13. Project Assurance
Summary of externally conducted project assurance activities, and information to indicate how findings have been adequately addressed.
14. Project Execution Plan
Summary of the project execution plan, including the project execution planning approach, the decision map, the objectives & strategies document, and the project schedule. Provide a link or reference to PEP documents, including detailed plans.
15. Organizational Capability
Summarize the project organization and resources for Phase 4.
16. HES Management
Summarize how the project will execute an incident and injury free project.
17. Operations
Summarize the plans for effectively transitioning the project to Phase 5 operations.
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only. 12
Page
Page 11 of
Decision Package Guidelines
Table of Contents
Description
Appendix
As needed, link or reference to other project documentation.
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only. 12
Page
Page 12 of
Project Resources Company Decision Package Guidelines Date
Description
8/27/12
Revision By
Original to MS SharePoint
George DeVore
Document Control Number Project M
Area 4600
Discipline PD_
Type MAN
Originator PRC
Package 0000
Sequence
Sheet
00407
00
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only This document contains confidential and proprietary information for use by employees and authorized agents of Chevron Corporation and its s (Company). No other use is authorized without prior written permission from Chevron Corporation or its appropriate .
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page 1 of 12
Decision Package Guidelines
Decision Packages The purpose of this section is to provide guidance regarding development of appropriate Decision Packages (DSPs) for Major Capital Projects. A DSP summarizes project deliverables to key project decision making, such as whether to move a project into the next DEP phase. The key customer is the project Decision Executive (DE). A DSP also summarizes the work completed, the key decisions made, and the rationale for those decisions, which are useful for purposes such as onboarding new Decision Review Board (DRB) . This material has been updated (see date in filename in footer) and is the source for section 4.6 on DSPs in the PM Handbook.
When Does the Project Need a DSP? Major Capital Projects generally need a DSP for the key project decisions that will be reviewed by the DRB and made by the DE, including: 1.
All phase-gate decisions.
2.
Other key milestones and strategic decisions, for example, the selection of the preferred alternative in Phase 2.
The project manager should have a discussion with the DE, agreeing which decisions will require a DSP and clarifying expectations regarding what information the DE and DRB will need to those decisions.
Characteristics of a Good DSP A good DSP is both clear and thorough. This means the reader will be able to understand the information in the DSP without referring to other documents. Other documents will be needed to provide more detail, but the DSP should stand alone as a document providing the key information to decision making. In general, the DSP is not a set of PowerPoint slides. Slides, while useful for presentations, are neither an adequate nor an appropriate format for a DSP. A simple and effective format is to present the DSP in three sections: 1. An executive summary that clarifies the decision(s) the DSP is addressing and presents the recommendations with key ing reasoning. This is typically no more than about one page. 2.
The primary documentation ing key deliverables and decisions.
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page 2 of 12
Decision Package Guidelines
3. A list of ing documentation and other deliverables for reference in case a reader needs further information. For example, DRB will typically need to dive deeper into their functional areas. DSP content will vary from phase to phase and with the size and nature of the project. Examples of DSPs can be found on the DEP Web site. Project Management Handbook Section 3.5, Phase-by-Phase Description, provides a high-level listing of phase-appropriate deliverables. Chapter 2, Chevron Project Management System, provides a comprehensive listing of expectations by phase.
Developing the DSP The following figure and discussion provide a high-level process for developing a good DSP.
Development and Application of the DSP
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page 3 of 12
Decision Package Guidelines
Project Execution Planning and the DSP As part of project execution planning, the project team is expected to identify all key decisions, and the sequence of those decisions, needed in the next phase, as well as identify deliverables needed to the making of those decisions. With the Project Execution Plan (PEP) objectives and strategies, the detailed plans, and the schedule, the project team will have a comprehensive set of plans to accomplish these deliverables. Identify DE/DRB Level Decisions Which will Require a DSP The project manager should discuss with the DE and agree which decisions will be made by the DE, and for which of those decisions the DE wants to engage the DRB. Each of these key decisions will require some type of DSP. Outline the Information Needed for Each DSP Early in each DEP phase, the project manager should engage the DE and DRB in discussing and agreeing to the expectations for the DSP for the next phase-gate decision, as well as for intermediate DE/DRB level decisions. Extract the Information Needed for Each DSP As the work progresses, the project team can extract information needed from mature deliverables into the DSP. With this approach, little “extra work” will be needed to produce a high-quality DSP. Keep the DEP principles in mind when preparing your DSP: •
Decision driven — Keep the DSP focused on the information that is necessary and sufficient for the decision makers to make the required decisions.
•
Focus on key value drivers — Focus the DSP on describing the potential value of the project, including the associated risks and tradeoffs. When including detailed information and analysis, whether historical, technical, commercial, or operational, make it clear to the reader how that information contributes to the project’s value and understanding of the risks.
•
Use of integrated multifunctional teams — The DSP represents the key results of the entire integrated multifunctional team.
•
Effective input, communication and alignment between teams, decision makers, and stakeholders — the DSP is a tool for communication and alignment.
•
Consistent use of best practices and tools — Demonstrate the use of these practices and tools, especially in conjunction with the focus on value.
Review the GO-36 (Appropriation Request) documentation and examples when preparing a DSP. This is not to say that preparation of the GO-36 should be left until DSP preparation. To the contrary, teams should be encouraged to make an early start in GO-36 preparation, and hold a final review when the DSP is being put together. © 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page 4 of 12
Decision Package Guidelines
Keep in mind that the DSP serves as a reference for project lookbacks, in both DEP Phase 4 and Phase 5. By documenting the thinking and data behind a project decision, the DSP will allow a lookback team to assess the quality of the decision relative to the project outcome. It will provide a means for interpreting when a good, or bad, outcome is due to chance, rather than good or bad decision making. It will provide the basis for decision process improvement and meaningful ability.
DSP Content DSP content will vary from phase-to-phase and with the size of the project. This section gives guidelines for the minimum requirements for DSPs for major capital projects. Example DSP table of contents are listed on the last two pages of this guide. Phase 1 DSP Minimum Requirements The key decision at the end of Phase 1 is about whether to proceed with generating alternatives. We need confidence that the opportunity is framed well, strategically aligned with our business, and that the business case s committing the resources needed in Phase 2. The Phase 1 DSP needs to provide the information to these decisions and typically includes the following: •
Framing Document A Strategic Framework Document summarizing the insights from discovery (strategic fit, project complexity, and the business and competitive environment) A Framing Document summarizing the results from definition and structure (For suggested content, please refer to the Framing Practice Area on the DEP Web site.)
•
Preliminary Assessment An alternative to serve as the basis for the Phase 1 economics A reference case which reflects the current operating plan for the asset or business without the investment proposal (to correctly estimate the value created by an investment proposal) Preliminary economics, including cost estimate and revenue estimates A summary of the lessons gathered from relevant projects (such as analogs to other assets)
•
Preliminary Overall Plan Sequencing of project strategic decisions Preliminary overall project schedule
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page 5 of 12
Decision Package Guidelines
PEP for Phase 2 as a reference •
Summary of the key issues regarding the Project Execution Plan for Phase 2, such as staffing and resources
•
Other optional components Summary of the Phase 1 PReP Assessment
Phase 2 DSP Minimum Requirements The key decisions at the end of Phase 2 are about whether to approve the selection of the preferred alternative(s) and to proceed with development of the preferred alternative(s). The Phase 2 DSP needs to provide the information to these decisions and typically includes the following: •
Framing Document reflecting any revisions made during Phase 2
•
Description of the short list of alternatives that were given significant consideration (depending on the number of alternatives considered, you may want to provide a list of all alternatives considered) Consistent level of detail in the cost estimate for each of the viable alternatives considered to ensure consistent evaluation
•
Description of the rationale for the selected alternative(s) Summary of the deterministic and/or probabilistic analyses of the alternatives sufficient to the selection of the preferred alternative Other less-quantitative analyses (e.g., stakeholder analysis, market analysis, fit with base business) Preliminary Basis of Design for the preferred alternative Summary of risk and uncertainty management plans describing key factors that could significantly affect project outcomes with planned mitigations Documentation of the team’s perception of decision quality (DQ Spider Diagram), along with a description of the gaps, and why this level of decision quality is appropriate for this decision, specifically address the quality of the data affecting the top few uncertainties from the Tornado Diagram
•
Preliminary Overall Plan Sequencing of project strategic decisions
Preliminary overall project schedule
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page 6 of 12
Decision Package Guidelines
PEP for Phase 3 as a reference •
Class 2 cost estimate on the preferred alternative
•
Summary Estimate and Schedule Assurance Review findings,
•
Summary of the key issues regarding the Project Execution Plan for Phase 3
•
Project Management Practices and VIPs Summary of efforts to seek and incorporate lessons learned Summary of the phase 2 PReP Assessment Peer Review Report (including team’s responses) Summary of the key VIPs applied and the benefits
•
Other optional components Peer assist information, if peer review was not required Results of an FEL Pacesetter evaluation, if one was done Subsurface Technical Review results, if needed
Phase 3 DSP Minimum Requirements The key decisions at the end of Phase 3 are about whether to approve funding and proceed with execution. The Phase 3 DSP needs to provide the information to these decisions and typically includes the following: •
Fully defined scope reflected in the Basis of Design Lockdown
•
Class 3 cost and schedule estimates, along with summary findings of the Cost and Schedule Risk Assessment
•
Project Management Practices and VIPs FEL Assessment and cost & schedule benchmarks Summary of efforts to seek and incorporate lessons learned Summary of the phase 3 PReP Assessment Summary of key VIPs applied and the benefits
•
Sequencing of project strategic decisions
•
Summary of the key issues regarding the Project Execution Plan for Phase 4, including a description of the contracting strategy
•
Summary of the integrated project plan and schedule for Phase 4
•
Other optional components
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page 7 of 12
Decision Package Guidelines
Outcomes of any pilot projects •
Phase 3 Peer Review Report
•
Reference Documents: PEP for Phase 4 GO-36 funding request and ing documentation Economic analysis as required in the Corporate Investment Analysis Manual Summary of the decision analysis Summary of risk and uncertainty management plans Phase 2 Peer Review Report, with summary of actions taken to close identified gaps Documentation of the team’s decision quality (DQ Spider Diagram), along with a description of the gaps, and why this level of decision quality is appropriate for this decision
Phase 4 The key decisions at the end of Phase 4 are quite different from earlier phases. At the end of Phase 4, we need documentation to the handover to operations, to project lookbacks, and to close out the project. These documents do not constitute a DSP; rather they meet specific needs for which you will find more information in the Project Management Handbook.
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page 8 of 12
Decision Package Guidelines
DSP Table of Contents Example 1, organized by the 6 elements of Decision Quality The example below is appropriate for Phase 2 DSPs, and DSPs for most intermediate decisions. Table of Contents
Description
1. Executive Summary
Purpose of this DSP – the decisions to be made Project team recommendations
2. Frame
Summarize the information needed to demonstrate that the project is appropriately framed, and provide a link or reference to the full project framing document. If this DSP is for an intermediate decision, provide any additional information needed to frame the specific decision(s) to be considered.
3. Alternatives
Summarize the alternatives considered to demonstrate that an adequate range of creative, doable alternatives have been considered. Summarize each alternative sufficiently to enable decision makers to understand the scope of each. Provide a link or reference to full descriptions of each alternative.
4. Meaningful, Reliable Information
Summarize the information most relevant in the analysis, and demonstrate that the appropriate level of meaningful, reliable information was used, including the key uncertainties and risks.
5. Values and Tradeoffs
Summarize the results of the evaluation to clarify (and quantify wherever possible) the tradeoffs. This includes rationale for the rejection or acceptance of the alternatives, presentation of cost & schedule, NPV & DPI, s-curves, etc.
6. Logically Correct Reasoning
Summarize the analysis and the analytical models to demonstrate that: • The DA model is reliable, appropriately modeling the opportunity. • The ranges of inputs are appropriate and unbiased.
7. Commitment to Action
Provide information to demonstrate the level of commitment to action of the key stakeholders.
8. Project Team Recommendation: the Preferred Alternative
Provide further information regarding the Preferred Alternative, as appropriate.
9. Project Execution Plan
Summary of the project execution plan, including the project execution planning approach, the road map, the objectives & strategies document, the project schedule, project organization and resources. Provide a link or reference to PEP documents, including detailed plans.
10. Project Assurance
Summary of project assurance activities, and information to indicate how findings have been adequately addressed.
Appendix
As needed, link or reference to other project documentation
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only.
Page
Page 9 of 12
Decision Package Guidelines
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only. 12
Page 10 of
Decision Package Guidelines
DSP Table of Contents Example 2, organized by topical area, for Phase 3 DSPs Table of Contents
Description
1. Executive Summary
Purpose of this DSP – the decisions to be made Project team recommendations
2. Project Frame
Summarize the project frame, and provide a link or reference to the full project framing document.
3. Project Background
Summarize the background and history of the project up to this point.
4. Description of the Recommended Development
Summarize the recommended development scope. Include the integrated basis of design and a description of each element of project development scope.
5. Concept Selection
Summarize the alternatives considered, the rationale for the rejection or acceptance of each alternative, and project team recommendations regarding Phase 3 development decisions. Provide sufficient information for decision makers to assess decision quality.
6. Commercial Agreements
Summarize the status of commercial agreements, as appropriate for the project.
7. Marketing
Summarize the status of marketing arrangements, as appropriate for the project.
8. Development Costs
Summarize the project development costs, along with information to clarify the class of estimate and the ranges of uncertainty.
9. Schedule
Summarize the project schedule, along with information to clarify the ranges of uncertainty.
10. Economics
Summarize the project economics.
11. Risks & Uncertainties
Summarize the project risks & uncertainties.
12. Project Approvals
Summarize the plans for attaining project approvals & funding from all partners, as appropriate for the project.
13. Project Assurance
Summary of externally conducted project assurance activities, and information to indicate how findings have been adequately addressed.
14. Project Execution Plan
Summary of the project execution plan, including the project execution planning approach, the decision map, the objectives & strategies document, and the project schedule. Provide a link or reference to PEP documents, including detailed plans.
15. Organizational Capability
Summarize the project organization and resources for Phase 4.
16. HES Management
Summarize how the project will execute an incident and injury free project.
17. Operations
Summarize the plans for effectively transitioning the project to Phase 5 operations.
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only. 12
Page
Page 11 of
Decision Package Guidelines
Table of Contents
Description
Appendix
As needed, link or reference to other project documentation.
© 2012 Chevron Corporation - All rights reserved. Company confidential - for internal use only. 12
Page
Page 12 of
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