GPM Overview

GPM Overview
Global Project Methodology

Overview
Revised 28-Nov-05 Build and Modify Expertise Center GPM_Overview.ppt

RCordes DOW RESTRICTED – For internal use only Slide 1
GPM Overview
Training Location Information

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GPM Overview
Objectives of Training
Help employees understand Global Project Methodology including:
GPM Scope, Objectives, and Structure
GPM References and Tools
Project Stages
Extra Bonus: Learn the Lingo

GPM Overview
Training Ground Rules

Avoid Side Conversations
Return from Breaks on Time
Stay Focused on Topic
Use “Hopper” for Concerns, Issues, etc.
Limit Multi-tasking (laptops, cell phones, absence)
Have Fun!

GPM Overview
Scope of Global Project Methodology
Is the single global work flow process for

management of all projects -- large / small /
capital / expense
Is an integrated process beginning with business

opportunity and ending with project startup and
closure
Describes the “who,” “what,” “when,” and “why”

of a project... but relies primarily on the work
process disciplines to answer “how”
GPM Overview

GPM Overview
Scope of Global Project Methodology
GPM is Dow’s “Best Practice” process to

ensure that projects are implemented to meet
the following criteria:
 On Time
 On Budget
 Meet Business Objectives
 Are fully EH&S compliant
 Represent Lowest Long Term Cost of
Ownership
GPM Overview
Driving Forces for Global

Project Methodology
A need to be more globally competitive by:
Reducing overall cost to achieve business goals
Reducing resources required to conduct projects

Reducing overall project cycle-time
Ensuring better definition and selection of projects

GPM Overview
External Benchmarking - IPA

Independent Project Analysis Inc. (IPA) is
specialized in assessing project systems such
as Dow’s Global Project Methodology.
Accomplished by assessing individual projects

on 2000 + factors
IPA’s database includes 4000+ projects for

process plants from 80+ countries
IPA WEB

GPM Overview
Dow Projects in the IPA Database

• Now have about 200 Dow projects in the
database
– 14 Projects pre- GPM
– 160 Projects under GPM
• 98 completed projects
• 39 ongoing projects
• 31 have not completed Stage 1
• Represents ~$ 9 billion in capital

GPM Overview
IPA Work Process Assessment

Strengths
• Cost Effectiveness is best in Industry – 3 years running
• Cost Growth Generally Under Control
• FEL Consistently Best Practical
• Effective Team Development Practices
Opportunities
• Improve Cycle Time
• Consistently Track Operability Performance
• Increase the Use of Aggressive Targets to Drive Improvement

GPM Overview
The Opportunity
Projected Savings of
$100MM to $400MM
Per Year!

GPM Overview
Key Principles of
Use of documented Most Effective Technology
Early development of key project plans, including

plans for implementing Front End Loading and
Value Improving Practices
functions -- not organizations --

The focus is on functions
and the responsibilities of functions

GPM Overview
Key Principles of
Sufficient flexibility exists within the

methodology to structure project
implementation to meet any
business or project need,
whether large or small

GPM Overview
Pre - GPM Six Phases
• Enthusiasm
• Disillusionment
• Panic
• Search for the Guilty
• Persecution of the Innocent
• Praise and Awards for the non-Participants

GPM Overview
Key Principles of
Project Project
Project Project
Design and Startup and
Identification Definition
Construction Closure
Stage Stage
Stage Stage
Define objective and Complete scope Rapid execution Project follow-up

business alignment. detail. of the project.
Measurement and
“Doing right things.” “Doing right things “Just do it.” continuous
right.” improvement.
The full range of activities and work products to accomplish

a project are defined in four project stages.

GPM Overview
Key Features of
Project Definition Stage establishes a basis for
a “no change” mind-set
An overall project schedule from project identification
through startup is a fundamental control and
communication document throughout the project life
Specific methods are defined for collecting “learning

value” from each project
Functional Integration is stressed in all project stages

GPM Overview
“No Change” Mind-Set

GPM Overview
Functional Integration in All Project Stages
Functional integration is....
appropriate functions working together to define,

develop, produce, and deliver work products
throughout the project work flow process
the elimination of barriers between functions….

wholeness instead of compartmentalization

GPM Overview
Functional Integration is not….

GPM Overview
Global Project Methodology Structure

Four Stages
Project Project
Project Project
Design and Startup and
Identification Definition
Construction Closure
Stage Stage
Stage Stage
120+ Steps
Steps Steps Steps Steps
1.00 - 11.00 12.01 - 13.00 14.01 - 17.11 18.01 - 22.02
Functional Work Process Disciplines >3000 Steps
•Construction •Process Engineering
•Design Engineering •Procurement
•Design for Six Sigma (DFSS) •Project Controls
•EH&S •Project Document Coordinator
•Maintenance •Project Engineering
•Manufacturing Representative •Project Management
•Plant Operations •Technology Center Representative
•Process Automation

GPM Overview
Acronym Quiz
GPM Stands For……
A) General Project Manager

B) Gallons Per Minute
C) Global Project Methodology
D) Gotta Produce More

GPM Overview
Acronym Quiz
IPA Stands For……
A) Inter Personal Analysis

B) Isotopal Propanol Acrylate
C) Integrated Project Applications
D) Independent Project Analysis

GPM Overview
The Project Snowball

Project Final
Preliminary Authorization Mechanical
Inception Gate Gate Completion RTO
$
$
spending
The
Plans The
Commitments
Front End Loading (FEL)
$
Master Project Spending
Business Opportunity Plan Schedule
Technology Implementation Plan Project The
Project Execution Plan Definition
Value Improving Practices Execution
Cost Estimate
Project
Resources
GPM Stages: Identification Definition Design & Start-up

Stage 1 Stage 2 Construction Stage 3 & Closure
Stage 4

GPM Overview

References and Tools
Build and Modify Expertise Center
Website
Global Project Methodology Manual
GPM Pocket Guide
GPM Checklist
[email protected]
GPM Overview
Global Project Methodology Manual Table of Contents
Chapter 1: Introduction to Global Project Methodology

Chapter 2: Relationships and References
Chapter 3: Key Project Plans
Chapter 4: Topic Relationships
Chapter 5: Project Measurements
Chapter 6: Global Project Methodology Work Flow Process Maps
Chapter 7: Global Project Methodology Step Descriptions
Chapter 8: Application of Global Project Methodology to Small Projects
Chapter 9: Application of Global Project Methodology to
Most Effective Technology Development
Appendix A1: Glossary for Global Project Methodology
Appendix A2: Function Cross-Reference
Appendix A3: CAIP Work Flow Process Maps
Appendix A4: Revision Log for Global Project Methodology

GPM Overview

Chapter 1: Introduction to Global Project Methodology
 Why is Global Project Methodology Important?

 Stages and Steps in Global Project Methodology
 Overview of Stages
 Projects Covered by Global Project Methodology
 Functions and Responsibilities
 Ownership of Global Project Methodology
 Security of Project Documents
 Management of Change Process

GPM Overview
Business - Engineering Partnership

Complementary Roles - The combination of these roles fill the role
of Engineering Management Sponsor in GPM
Business Engineering Engineering
Management Sponsor Business Partner
BEMS EBP
Design &
Business Construction
In the Business In the Function

Championing Championing
Effective Projects Business Needs

GPM Overview
Functions and Responsibilities

Project Leadership
Engineering Business Partner
 Represents the business in the engineering organizations
 Ensures the alignment of resources meets the demands
of the business
 Helps business understand impact of strategic changes in
the engineering organizations.
 Assists the business in the development of execution
plans for capital projects
 Works with the BML and project managers in using GPM
 Works with appropriate business representative in
resolution of project problems / issues

GPM Overview

Project Leadership
Business Engineering Management Sponsor
 Represents engineering in the business organization,
 Coaches the business in development of capital

projects,
 Assists in development of key project plans,
 Assists engineering organizations in forecasting demand

for engineering services from businesses and
 Coaches Project Managers in using GPM.

GPM Overview
DILBERT

GPM Overview

Project Leadership
Project Manager
 Works with the Business to develop the Business
Opportunity Plan and to ensure that the Technology
Implementation Plan, and the Project Execution Plan
and Business Opportunity Plan align with Business
Goals
 Works with the Project Steering Team to provide
overall leadership to the project and to manage
scope, cost and schedule throughout the project.
 Plays a key role in conflict and issues resolution.
 The Project Manager is accountable for meeting
Project Objectives.
GPM Overview

Project Leadership
Project Engineering
 Organizes and directs engineering, procurement, and
construction activities involved in design of the facilities.
 Serves on the Project Steering Team to provide overall
planning and organization of the project during design and
construction of the project.
 Delivers as-built and operations/maintenance
documentation to the facility
 Documents key project measurements and learning
experiences in the Project Closure Folder

GPM Overview

Project Leadership
Project Steering Team
 Provides the strategies, plans, schedules and
direction for the project. Acts as “overseeing
board” throughout the project
 The initial Project Steering Team usually includes
– Project Manager Lead Process Engineer
– Project Engineer Lead Process Control
Engineer
 The Construction representative joins the steering
team during the Project Definition Stage.
 Others may be asked to join according to the needs
of the specific project
GPM Overview

Project Leadership
Technology Center Representative
 Selection of Most Effective Technology (MET) for the
global technology in projects; MET development where
missing and needed.
 Functional input and evaluation into the project; ‘Owner’
of the ‘Subject Matter Expert Involvement Plan’.
 Provides support for safe and effective start-up and
operation.
 Provides support for incorporation of appropriate
operating discipline including training.
 The Technology Center Representative is accountable
for technology implemented in the project.
GPM Overview

Project Leadership
Manufacturing Representative
 Ensures implementation of the selected technology per the
technology Implementation Plan.
 Ensures appropriate Functional Input and Evaluation per the
Functional Input and Evaluation Plan.
 Ensures appropriate functional review of changes during a
project, filling the role of Change Owner in the
Scope/Criteria Management Process.
 Ensures and efficient transition from Project to Operations.
 The Manufacturing Representative is accountable for
Operability, Operating Discipline and a safe and effective
startup.
GPM Overview
Project Leadership Accountability Grid

Project Leadership Roles
Business Engr Project Tech
Engr Mgmt Business Project Project Steering Center
Elements Sponsor Parntner Manager Engineer Team Rep Man Rep
Time P P A P P C C
Project
Cost P P A P P C C
Management
Business
P P A P P P P
Expectations
Technology
C C C C C A P
Content
Functional Input
C C C P P A P
& Evaluation
Technology
Operability C C C P P P A
Management
Operating
C C C P P P A
Discipline
Startup C C C C C C A
A - Primary accountability P - Participant, some accountability C - Contributes, minimal accountability

GPM Overview

Chapter 2
Chapter 2: Relationships and References
• Work Flow Processes related to Global Project Methodology
• Functional Operating Disciplines

GPM Overview
Work Process Levels

Support
Global Work Processes Processes
Develop Record & Optimize Manage
Plan and Market
Level 1
and Report Produce Allocate &
Integrated Human
Commercialize Financial Supply Resources
Technology Information
Product Resources Sell
Chain
Manage
Information
Improve
Level 2
Build & Manage Maintain Manage &
Asset Transfer
Modify Production Facility
Utilization Technology
• Conceptual Capital Asset

• 23 Steps
Level 3 • Provided Guidance Implementation
• Steps and Functions named
for GPM development Process
• Implementation of • 120 + Steps

Global Project • Functions named & Defined
Level 4 Level 3
Methodology
• 500+ page manual • Steps described in detail
Work Process Standards, details

Level 5 Disciplines & Functions methods, and
Supporting GPM Procedures

GPM Overview
Eight Global Work Flow

Processes
M M
A A CUSTOMER
N N
A A
G G
E E
PLAN AND ALLOCATE RESOURCES
I H
N U
F M
O A INNOVATE
R N COMMERCIAL MARKET/SELL
M OFFERING
A R
T E
I S
PRODUCE OPTIMIZE INTEGRATED
O O PRODUCT SUPPLY CHAIN
N U
R
C
E RECORD AND REPORT FINANCIAL INFORMATION
S

GPM Overview
Manage Information Produce Product
Manage Maintain
Production Facility
M&TT
Build & Asset

Modify Utilization

GPM Overview
ICO Business Process DCT(f)/GPM/TICA Integration

Management Stage Conduct GBU Specific
ICO Gate Decision Point Project Complexity
Analysis
Concept Concept Validation Development Implementation
Shaping Analysis
Gates 6 10 13
GPM Stage 1 Stage 2Stage 3 Stage 4
TICA GPM step 8

Stage 6
Stages 1-5 Gap
Analysis
GPM Overview
Gatekeeping
There are three business decision points or
“Gates” common to GPM and ICO
GPM Step 6.02 Provide Funds for Project Team
through Project Identification Stage
GPM Step 10.00 Do Business Opportunity,

Technology Implementation and Project Execution
Plans Match?
GPM Step 13.00 Business Management Team

Review
GPM Overview
Integration of Global Project Methodology with

Capital Planning and Authorization Process
Gates 6 10 13
Project Project
Project Project Design and Startup
Identification Definition Construction and Closure
Global Project
Methodology
3 Key
Prelim. 3 Project
Business Key Plans &
Oppor. Project Plan For
Plan Plans Mgmt
Capital Planning & Control
and Authorization
“Supported” Engineering Execute
Proposed Project In Only Final Non-Engineering
Project Capital Plan Authorization Authorization Project

GPM Overview
Progressive Improvement of Cost Estimates

Considerations
Outer range: Minimum accuracy—minimum
information available, new
technology
Inner range: Maximum accuracy—good
project definition, known
50% technology
Expected Accuracy Range of Cost Estimate
35% Outer range 22%

Above Estimate
15%
Final Cost
+
35% 20% Inner range 5%
15% 10%
Expected probability that estimate will be within the range
0 -60% 70% 80% 85%

Below Estimate
Final Cost
8%
25% 15% Inner range 10% 5%
-
14% 10%
20% Outer range
50%
Project Identification Project Definition Project Design and Construction
Capital Planning Project Identification Project Definition Project Control Construction Contract or
Cost Estimate Cost Estimate Cost Estimate Cost Estimate Addendum Cost Estimates

GPM Overview
Expectations Management

GPM Overview
Work Process Disciplines Supporting Global

Project Methodology
Construction
Process Engineering
Design Engineering
Procurement
Design for Six Sigma (DFSS)
Project Controls
EH&S
Project Document Coord.
Maintenance
Project Engineering
Manufacturing Representative
Project Manager
Plant Operations
Technology Center
Process Automation
GPM Overview

Chapter 3
Chapter 3: Key Project Plans

 Business Opportunity Plan
 Technology Implementation Plan
 Project Execution Plan

GPM Overview
Global Project Methodology Manual Chapter 4 - Topic Relationships
• Value Improving Practices • Piping and Instrument Diagram

• Schedule Management Process Development Process
• Cost Management Process • Project Documentation for
Facility Library
• Functional Input and Evaluation
• Minimum Cost of Ownership
• Project Execution Strategy
Development Process • Constructability Process
• Prestartup Planning • Permitting Process
• Layout Process • Scope/Criteria Management
Process
• Most Effective Technology
Process • Compass Best Practice
• Operability

GPM Overview
MET Definitions
Level 3 - The methods, processes,
and/or systems which optimize value
creation for an individual plant, is
specific to that plant, and cannot be
Plant
MET
improved through global leveraging.
Level 2 - The methods, processes,

Global and/or systems which when
T/C MET standardized and leveraged globally
by a business, optimize value creation
across the business and Dow.
Global Standards Level 1 - The methods, processes,

and/or systems which will deliver the
optimum desired results for Dow in
setting of the competitive standards

GPM Overview

Chapter 5
Chapter 5: Project Measurements
• Purpose - Ensure GPM is being used, process is
producing the desired results, and opportunities
for further improvement are identified
• Covers areas of:
» Quality
» Cost
» Project Cycle-Time
» GPM Use
» Analysis and Tracking
GPM Overview

Chapter 6
Chapter 6: Work Flow Process Maps
• (Rummler-Brache format)
» Stage
» Functions
» Step Box
» Function Involvement
» Function Responsible for Initiation
» Function Responsible for Completion
» Decision Points
» Decision Points Flow Arrows
GPM Overview
Global Project Methodology Work Process Map

GPM Overview

Chapter 7
Chapter 7: Step Descriptions - by Stage
• Introduction
• Description
• Inputs
• Outputs
• Functions involved
• Remarks

GPM Overview
Global Project
Methodology
Step 1.00

GPM Overview
Acronym Quiz
MET Stands For…..
A) Magnetic Emulsion Technology

B) Past and Past Participle of MEET
C) Most Emulating Texas
D) Most Effective Technology

GPM Overview
Acronym Quiz
FEL Stands For…..
A) Front End Loader

B) Full Environmental License
C) For Ever Late
D) Front End Loading

GPM Overview

Chapter 8
Chapter 8: Application to Small Projects
 Consideration for Applying Global Project
Methodology to Small Projects
 Association to Other Produce Product Work
Processes
 Functions and Responsibilities
 Work Flow Map for Small Projects
 Small Project Step Descriptions

GPM Overview
Application of GPM to Small Projects

GPM Overview
The Application of Global Project Methodology to

Small Projects
Is ...
• intended for the application of standard work processes and tools
to plant improvement projects less than $2 million dollars.
• a means of eliminating unnecessary work process complexity

while maintaining the value of the GPM Work Process.
• documented in Chapter 8 of the GPM Manual.

GPM Overview
Chapter 8 Steps
Stage 1: 1. Initiate Work Order
Identification
2. Form Project Steering Team
3. Develop Preliminary Master Project Schedule
4. Develop Technology Implementation Plan
5. Develop Project Execution Plan
Stage 2: 6. Project Definition and Authorization Estimate
Definition
7. Prepare and submit Authorization Request
8. Project Design and Equipment Purchase
Stage 3:
Design & 9. Select Construction Source
Construction
10. Construct Facility
11. Update Plant Documentation and Operating Discipline,
Stage 4: Train Personnel
Startup &
Closure 12. Startup and Management of Change Closure
13. Prepare Project Performance Summary Report

GPM Overview
Key Elements of Implementing

GPM on Small Projects
GPM is used for all projects. Documentation
and reporting requirements vary dependent
on project size
 Is it $2MM to $15MM?
 Is it $300M to $2000M?
 Is it $50M to $300M?

Is it < $50M
Projects may be capital, expense or knowledge
based (intellectual property)

GPM Overview
Documentation and Reporting
Documentation Reporting
>$20,000 >$50,000
– Business Opportunity Plan – Project Closure Summary
Report
>$50,000 (additional) – GPM Measurements
– Technology Implementation (requirements vary with size)
Plan >$300,000 (additional)
– Project Execution Plan – PDRI FEL Assessment
– Functional Input & >$15,000,000 (additional)
Evaluation and Project – IPA FEL Assessment
Functional Review Rule – IPA Closure Assessment
– Plans for Mgmt & Contr – IPA Operability Analysis
– Master Project Schedule >$25,000,000 (additional)
– IPA BFEL and Pacesetter
Reviews (Gate 10)
GPM Overview

Chapter 9
Chapter 9: Application to MET Development

 Consideration for Applying Global Project
Methodology to MET Development Projects
 Association to Other Dow Work Processes
 Functions and Responsibilities
 Work Flow Map for Small Projects
 MET Development Responsibility Matrix

GPM Overview
Appendices
 A1: Glossary for Global Project Methodology
 A2: Functional Cross-Reference
» Lists each step in GPM and the corresponding
functions
 A3: CAIP Work Flow Maps

 A4: Revision Log for Global Project Methodology

GPM Overview
Global Project Methodology Checklist

A component of the GPM-PDM-EPCM Tool
The checklist is meant:
 to ensure that the intent of individual GPM steps is
not overlooked or omitted
 to record decisions on which steps can be:
» shortened
» combined with other steps
» are judged to be not required for a particular
project
 to identify who is responsible for key steps
Versatility built in to allow use on all size projects

GPM Overview
Global Project Methodology Checklist

GPM Checklist
GPM Cross Reference
Applies?
Steps Who? When? Status/Comments
Yes/No
Determine Business, Customer, or

1.00
Infrastructure Need
2.01 Verify Strategic Fit
2.02 Site Management Verifies Strategic Fit
Determine alternatives to Pursue

3.01 Opportunity, Evaluate Each alternative,
Select Best Alternative
Verify Selected Alternative Consistent

3.02
with Business Strategy
Verify Selected alternative Consistent
3.03
with Site Strategy
Execute Nonproject Alternative or
3.04
Asset Utilization Effort
Verify Cost Estimate for Capital

4.01 Planning and Determine Process
Engineering Resource Allocation
Develop Preliminary Business

4.02
Opportunity Plan
Enter or Update Project Information into
4.03
Capital Planning System
Assign Engineering Management
4.04
Sponsor
Conduct Preliminary Commercial Risk
5.01
Assessment

GPM Overview
Global Project Methodology Pocket Guide

Pocket Guide
 Complete list of GPM Steps by stage and
functions responsible for initiation/completion
 Key Deliverables of each project stages
 Key Definitions
Note: The Pocket Guide does not replace the

GPM Manual and related Work Process
Discipline Manuals

GPM Overview
[email protected]
• A web based Training program has been developed for
GPM as one of many courses available through
[email protected]
• While not intended as a direct replacement for “facilitated”
training, it provides excellent refresher training.

GPM Overview
Sub Processes
Supporting GPM
Project Execution Strategy Development

Scope Criteria Management
Functional Input and Evaluation

GPM Overview
Project Execution Strategy

Development
What Is It?
It is an early and evolutionary project
planning process that yields two work
products... the Project Execution Plan and
the Plan for Management and Control... that
guide all subsequent project decisions.

GPM Overview
Project Execution Strategy Development
What Are the Benefits?

 Provides a clear understanding of project needs to
the project team
 Contributes to the no change mind-set by early

identification and resolution of issues
 Encourages the maximum contribution of all

project team members
 Provides an on-going and improved

communication channel for all functions and
disciplines
GPM Overview
Definitive Project Execution Planning

Improves Dow Execution Schedules
- Std. Dev. + Std. Dev.
Dow IBC 2000 With

Definitive PEP
Dow IBC 2000 Without

Definitive PEP
0.90 1.00 1.10 1.20 1.30

Execution Schedule Index
GPM Overview
DILBERT

GPM Overview
Scope/Criteria Management
Describes the process for managing

change to projects, including appropriate
functional subject matter review.
Designed so that good, value-added

changes can quickly gain approval and
implementation while change for change
sake is avoided

GPM Overview
Key Elements of Effective

Change Management
 All changes are reviewed by appropriate experts to
assure that all aspects of the proposed changes
have been considered and addressed.
 Appropriate Approval (acting as a secondary review,
to assure all issues have been addressed)
 All documentation has been updated or created and
is available for use.
 All employees are notified of changes that effect
them and trained in those that effect their operating
discipline.
 The beneficial effect of all changes is verified.
GPM Overview
Highlights of Scope/Criteria Management

 Baselines are established for project scope, cost,
and schedule,
 Proposed changes to physical scope are evaluated
for impact on cost and schedule, and against EH&S
and minimum cost of ownership criteria.
– If changes affect the results of FI&E reviews the
Functional Review Rule (FRR) will be invoked.
– The Project Manager approves all changes that
exceed cost and schedule thresholds or where the
FRR was invoked

Baselines are updated to reflect approved changes.

GPM Overview
Scope Criteria Management

Roles and Responsibilities
 Change Originator - Any project team member
 MOC Coordinator - Project Steering Team
 Document Coordinator - Project Engineer/Admin
 Change Owner - Manufacturing Representative
 Subject Matter Reviewer - Per Functional Review Rule
 Final Approver - Project Manager
 Affected Personnel
GPM Overview
Scope/Criteria Management
Functional Review Rule
 The Functional Review Rule (FRR) lists 142

types of changes and corresponding Subject
Matter Review Groups that need to review
and/or be informed of each type of change to
ensure that the change complies with EH&S
and Minimum Cost of Ownership criteria.

GPM Overview

Purpose:
Ensure that the most appropriate technology

is incorporated in projects to ensure EH&S
compliant projects with minimum cost of
ownership.

GPM Overview
Overview of Functional Input

and Evaluation
What is Functional Input and Evaluation?
Is a collection of input and reviews supporting Global
Project Methodology that applies to all projects
Promotes appropriate, timely functional input and

involvement to ensure incorporation of the most
appropriate technology in all Dow projects
Results in a superior facility without costly changes and

additions during construction and startup

GPM Overview
Overview of Functional
Input and Evaluation
How FI&E Works:
Provide early process and project definition to pertinent
functions
Solicit input and guidance from functions
Evaluate input relative to the complex and interdependent

needs/ requirements of the business, Dow minimum
standards, and governmental regulations
Reach resolution of all issues identified, recognizing that

competing needs often require compromise
Document responses to all input in an appropriate manner

GPM Overview
Overview of Functional
Timing: Input and Evaluation
GPM Project Number of GPM Steps With Functional Input
Stage and Evaluation Activity
Identification Four (5.01, 8.04, 8.10, 9.01)
Definition Seven (12.07, 12.08, 12.16, 12.17, 12.19, 12.20,

12.21)
Design & Eight (14.07, 14.10, 14.13, 14.15, 16.04,
Construction 17.07, 17.10, 17.11)
Startup & Five (18.03, 18.04, 21.02, 22.01, 22.02)
Closure

GPM Overview
Reference Materials for Implementation of

The FI&E Web Site:
Provides overview of Functional Input and Evaluation
planning tools including screening questions and
planning worksheet.
Provides detailed “how to” instructions including a
starter list of input or evaluation questions and
responsibilities.

GPM Overview
Acronym Quiz
FI&E Stands For….
A) Frequently Integrated & Evaluated

B) Fire Index & Equipment
C) Functional Integration & Evolution
D) Functional Input & Evaluation

GPM Overview
Project
Identification
Stage

GPM Overview
Project Identification Stage Description
First of four stages in Global Project Methodology
Involves 34 (28%) of the 120+ GPM Steps 1.00

through 11.00
Engages business and technical functions in critical

dialog regarding a business opportunity
Typically funded as an expense item with costs

between 1% and 3% of total project

GPM Overview
Purpose of Project Identification Stage
Fully describes a business opportunity, the

technology to achieve this opportunity, and
plans for execution.
Achieve, with a minimum investment of

resources, a description which leads to an early
go/ no-go business decision.

GPM Overview
Key Activities of Project Identification Stage

Identify a business need (Step 1.00)
Explore options for pursuing business opportunity with
and without Dow resources. Initiate Technology
Selection VIP (Step 3.01)
Assign Engineering Management Sponsor (Step 4.04)
Conduct Commercial Risk Assessment (Step 5.01)
Provide funds for project team through Project
Identification Stage (Step 6.02)
Select Project Manager and form Project Steering Team
and Develop FEL/VIP Plan (Steps 6.01 and 8.01)

GPM Overview
Key Activities of Project Identification Stage

Further Define Chosen Technical Alternative. Complete
Technology selection VIP (8.02)
Develop Subject Matter Expert Involvement Plan (8.04)
Define black box resolution plan (8.05)
Define Process Control Overview (8.12)
Define basis for and prepare Project Identification Cost
Estimate (8.06, 8.07, 8.11, 8.14)
Assemble Technology Implementation Plan (8.15)
Develop Project Execution Plan (9.01)
Determine Business Management Team support for project
through review of key project plans (BOP, TIP, PEP) (10.00)

GPM Overview
Key Deliverables of the Project

Identification Stage
Business Opportunity Plan
Technology Implementation Plan

Project Execution Plan
Engineering Only Authorization Package
Project Steering Team Assigned

GPM Overview

What does the Business Opportunity Plan provide?
 A definition of the goals and objectives of a
business opportunity
 The scope and key business drivers of the
opportunity
 Classes of Facility
 Critical to Customer Requirements
 Multi-Generational Product/Service Plan
Why develop the Business Opportunity Plan?
 Ensure clear understanding of the opportunity
 Provide basis for development of the Technology
Implementation Plan
GPM Overview

Who prepares the Business Opportunity Plan?
 The person designated by the Business
Management Team or Site Management
 The “champion” for the specific opportunity
Who approves the Business Opportunity Plan?
 Business Decision Team for ICO projects
 Site Management or Line Manufacturing
Management for infrastructure projects
 Business Management Team for others

GPM Overview
Elements of the Business Opportunity Plan
Description of business opportunity/project

including key business drivers
Strategy/justification/benefits of opportunity
Business Considerations
Products to be produced
Quality attributes
Location constraints
Raw material sources

Quantity of inventories
GPM Overview
Elements of the Business Opportunity Plan

Customer service requirements
Timing and related constraints
Cost constraints
Asset Capability Objective
Maintenance Spending Replacement Asset Base Objective

Packaging requirements
Product and facility life-cycle

Classes of Facility
Multi-Generational Product/Service Plan

GPM Overview

What does the Technology Implementation Plan
provide?
 Identification of the optimum technical
alternative to meet business needs
 Documentation of the technology and other
technical and/or operating considerations to
be implemented
 An assessment of the maturity of the
technology and the implementation risk

GPM Overview

Why develop the Technology Implementation Plan?
 To provide basis for the cost estimate to
determine if the project is worth pursuing
 To guide and drive current and future technical
development activities, if any
 To provide basis for developing the engineering
and construction requirements for the project

GPM Overview
Who prepares the Technology Implementation Plan?

 Project Steering Team with major participation
and support of Process Engineering, the
Technology Center, Research and Development

GPM Overview
Elements of the Technology

Implementation Plan
Description of project
Technology selected
Most Effective Technology (MET) Plan
Index flowsheets
Process description
Basis for project definition
Preliminary material and energy balance
Preliminary equipment list
Process control overview
GPM Overview
Elements of the Technology

Implementation Plan
Permit requirements
Special requirements and hazards
Waste considerations
Plant block selection and initial layout
Preliminary Master Project Schedule
Cost estimate
Approval
GPM Overview

What does the Project Execution Plan provide?
 A definition of how the project will be organized
and executed to realize the goals and objectives of
the business opportunity
 An early assessment of project-related risks and
mitigation plans to be considered along with
commercial risks in the risk/return trade-off
 An updated Master Project Schedule reflecting the
additional project definition (project segmentation
strategy, long delivery items, contracting plans,
etc.)

GPM Overview

Why develop the Project Execution Plan?
 To ensure that the Project Steering Team has a clear

and well-understood agreement that will achieve
project objectives consistent with the Business
Opportunity and the Technology Implementation Plans
 To communicate the agreement between organizations
regarding the supply of people resources
 To communicate strategic project decisions to the
Business Management Team.... and the project team
as it grows.

GPM Overview
Elements of the Project Execution Plan

Contracting Plan
Functional Input and Evaluation Plan
Long-Delivery Procurement Plan
Master Project Schedule
Mission, Vision, and Goals
Organization Plan
Risk Management Plan
Scope of Work
Value Improving Practices/Front End Loading Plans

GPM Overview
Front End Loading Value Improving

Practices Plans
Purpose: To identify and plan Front
End Loading (FEL) and Value Improving
Practices (VIP) activities to best meet
minimum cost of ownership (MCO)
criteria.

GPM Overview

FEL is the process that draws together a company’s
financial resources, facilities, people and
organizations in order to translate a company’s
marketing and technology opportunities into
projects.
FEL includes the activities of GPM stages 1, 2, and 3
through Step 14.20
Its primary objective is an understanding of the
proposed project that is sufficiently detailed that
changes in the engineering, construction and start
up phases will be minimized.

GPM Overview
Project ID FEL Assessments

• Business Front End Loading
– Confirm ability of Project to meet business
needs.
– Determine chance of Business Success (NPV).
– Improve likelihood of business success.
• Pacesetter (Early FEL) Identifies:
– Major Project Risks
– Cost/Schedule Competitiveness
– New Technology Risks
– Achieve Best Practical FEL
– Improve Project Success
GPM Overview
Value Improving Practices Enhance Cost

Performance
Relative Capital Cost (Industry Avg - 1.0)
1.2
1.1
Industry Average
1
Cost
FEL Improvement
Only
0.9
FEL Improvement plus
Value Improving
0.8
Practices
BEST GOOD FAIR SCREENING
Source, IPA, Inc. FEL RATING
GPM Overview
Value Improving Practices (VIP) are a set of tools applied

in Global Project Methodology for improved value creation
in project execution and Most Effective Technology
development. They Include:
 Process Technology Risk
 Classes of Facility
Assessment (PTRA)
 Reliability Modeling
 Maintenance Strategy
 Technology Selection
 Design to Capacity
 Process Simplification
 Value Engineering
 Waste Minimization
 Automation and Instrument
 Energy Optimization
Justification
 Standards Review
 Constructability
 3D CAD
GPM Overview
Types of VIP’s
Procedural Facilitated
Technology Selection Classes of Facility
Design to Capacity Process Simplification
Waste Minimization
Standards Review
Process Technology Risk Assessment
Model Based Maintenance Strategy
Reliability Modeling Value Engineering
Energy Optimization Automation and Instrument Justification
3D-CAD Constructability

GPM Overview

Selection and Use will vary by Business and Project Size
13 Individual VIPs Possible

Which VIP’s
Do I Use?
VIP Applicability
What Business is
the Project for?
Business Filter
How Much does the Cost Filter

Project Cost?
Individual VIPs
Required for Your Project

GPM Overview
Project
Definition
Stage

GPM Overview
Project Definition Stage Description

Second of four stages in Global Project Methodology
Involves 24 of 120+ GPM Steps (12.01 through 13.00)
Requires the highest level of functional participation

of all four project stages
Time span typically 10 - 25% of total project time
Typically funded by an Engineering Only

Authorization at the end of Project Identification
Stage

GPM Overview
Purpose of Project Definition Stage

Provide sufficient definition of the project and its
execution so that the project can be authorized
and the Project Design and Construction Stage
can proceed without changes.
For process facilities, optimize the process in

relation to business objectives, utilizing existing,
proven designs as much as possible.

GPM Overview
Goals of Project Definition Stage

Establish a “no change” mind-set within the
project team for the next project stage by timely,
broad functional participation in the
development of work products.
Minimize project definition costs by avoiding

design detail that belongs in the Project Design
and Construction Stage.

GPM Overview
Outsourcing and GPM

Three Strategic Models for Project Execution
STAGE 1 STAGE 2 STAGE 3 STAGE 4

PROJECT PROJECT DESIGN & STARTUP &
IDENTIFICATION DEFINITION CONSTRUCTION CLOSURE
Dow OUTSOURCED Dow

MODEL A
Dow Dow
OUTSOURCED
MODEL B
Dow Dow Dow
OUTSOURCED OUTSOURCED
MODEL C
Models are Applied Project-by-Project

GPM Overview
Outsourcing and GPM

Basis for Outsourcing
GPM Remains the Road Map
Outsourcing Decisions are Business Decisions
Owner must Own the Front End

GPM Overview
Key Activities of Project Definition Stage

Establish project team leaders (12.01)
Initiate procurement process for long delivery equipment

(12.12)
Submit permit applications (12.14)
Use Functional Input and Evaluation to ensure proper

consideration of input and support from project partners
(Safety, Maintenance, etc.) (12.04, 12.07, 12.16, 12.17,
12.20, 12.21)
Reconfirm Business Management Team support of project

(13.00)

GPM Overview
Key Work Products of Project

Definition Stage
Optimized unit operations and process flowsheets
Optimized utility flowsheets
Process Control Strategy and control graphic
Preliminary equipment specifications
Facility layout
Permit applications
Plan for Management and Control
Updated Master Project Schedule
1st and 2nd Pass P&ID’s
Project Definition Cost Estimate
Authorization Package
GPM Overview
Project Definition Stage FEL Assessment

• Project Definition Stage FEL assessment is performed
to provide an indication of how well a business
identified and defined a project. It is a tool to the
business to determine whether a project can be
authorized to proceed with minimal risk.
– Projects > $15MM use Independent Project Analysis
Inc. (IPA) to measure FEL preparation.
– Projects > $300M to $15MM are assessed in house
using the Project Definition Rating Index (PDRI) tool.

GPM Overview
Plans for Management and Control
A set of 13 plans that document the

methods, systems, and responsibilities
for each of the project’s control variables.

GPM Overview
Plans for Management and Control

Includes Plans For:
• Availability Assessment • Location & Special Factors
Management Management
• Constructability • Procurement Management
- Equipment Protection Plan
• Construction Management
- Equipment Protection Plan Template
- Marshaling Plan
- Global Project Supply Plan
• Cost Management
• Quality Performance Management
• Engineering Work Management
• Safety and Security Management
• Environmental Management
• Schedule Management
• Information Management
• Successful Prestartup
- Commissioning Databases

GPM Overview
Acronym Quiz
BOP Stands For….
A) Big Ol’ Pump

B) Best Objectives Possible
C) verb; To Strike Quickly
D) Business Opportunity Plan

GPM Overview
Project Design
and
Construction Stage

GPM Overview
Project Design and Construction

Stage Description
Third of four stages in Global Project Methodology
Involves 44 of the 120+ GPM Steps (14.01 - 17.11)
Completion of this stage might occur at different

times for different project segments as documented
in the Master Project Schedule
Time span longest of four stages (65 - 90% of total

time) and cost greatest
Typically funded by a final authorization based on

the Project Definition Cost Estimate after Step 13.00
GPM Overview
Purpose of Project Design and

Construction Stage
Deliver a facility that is
consistent with the
Project Identification and Definition documents
and is ready for startup

GPM Overview
Design and Construction

FEL and Execution
Project Design and Construction Stage
has components of Front End Loading and
Execution.
Steps 14.01 to 14.20 complete the FEL of a
project
Steps 16.01 through 17.11 begin the

execution portion of GPM

GPM Overview
Key Deliverables of Project Design and

Construction Stage
FEL Deliverables
 Integrated Design, Procure, Startup & Construct Scheds
 P&ID’s (3rd and 4th pass)
 Equipment, Piping, Instrument and Insulation Scheds
 Equipment, Piping, Instrument and Insulation Specs
 Job Instructions
 Process Design
 Project Control Estimate
 Facility Layout
 Automation Control and Design
 Dow-Furnished Materials
GPM Overview
Key Deliverables of Project Design and

Construction Stage
• Execution Deliverables
 Facility Model
 Process Control Software
 Equipment Specifications
 Dow Furnished Materials
 Construction Documents
 Archived Documentation
 Constructed Facility
GPM Overview
Project Startup
and
Closure Stage

GPM Overview
Project Startup and Closure

Stage Description
Last of four stages in Global Project Methodology
Involves 17 of the 120+ GPM steps (18.01 - 22.02)
Time span short but long-term impact very significant

GPM Overview
Purpose of Project
Startup and Closure Stage
Start up a facility with operating performance consistent
with the Technology Implementation Plan and
timing/quality/cost consistent with the Business
Opportunity Plan
Bring project documentation and accounting records

to closure
Transfer ownership of facility from Project Team to

Operations
Identify and integrate learning value from the project

experience
GPM Overview
Purpose of Project
Startup and Closure Stage
• Startup and Closure also transfers

ownership of the following processes from
GPM to Operate Plant:
– Startup/Operate Plant
– Management of Change
– Documentation

GPM Overview
Key Work Products of

Project Startup and Closure Stage
Successful operating facility
Documentation
Accounting closure
Identification and integration of learning value
Project Closure Folder

GPM Overview
The Roadmap to a
Successful Operating Facility
Test and inspect to ensure compliance with
design (18.01) - Mechanical Completion
Train Plant Operations and Maintenance

personnel (18.02)
Conduct Prestartup Review (18.04) per the

Functional Input and Evaluation Process
Complete prestartup activities (18.05)

GPM Overview
The Roadmap to a
Successful Operating Facility
Assemble information for initial operations (18.06)
Complete safety systems registration (20.01)
Start up support systems (20.02, 20.03)
Start up primary process, Release to

Operations (20.04)
Demonstrate operating performance and provide

regulatory data (20.05, 21.01)

GPM Overview
Documentation for
Plant Operating Discipline
Primary Needs:
 Support the day-to-day needs for the operation

and maintenance of the facility
 Satisfy Dow and governmental requirements for

documentation of safety, environmental, etc.,
issues

GPM Overview
Transfer of Ownership of Facility

• Key milestones in transferring control and ownership of
the facility and work processes from the Project Team to
Operations
– GPM Step 18.04 Conduct Prestartup Review
• Operations takes “control” of the facility
• Ownership of Management of Change
transfers from the Project Team
(Scope/Criteria Management) to Operations
(Plant MOC process)

GPM Overview
Transfer of Ownership of Facility

• Key milestones in transferring control and
ownership Continued
– GPM Step 18.06 Assemble Information for Initial
Operations
• Operations takes control of documentation
associated with Plant Operating Discipline
• This step happens at the same time as Step
18.04.
– GPM Step 20.04 Startup Primary process and
Release to Operations
• Operations takes ownership of facility (RTO)

GPM Overview
Capital Project
Accounting Closure
Key Activity:
Capital Project Account Closure
“Official release of a facility (or part

of) through notice to Fixed Assets
Service Center when the facility is
operational”

GPM Overview
Capital Project Accounting Closure

Benefits of Capital Project Accounting Closure:
 Project will no longer be assessed

capitalized interest charges
 Depreciation of the facility (or segment

thereof) will begin

GPM Overview
Identification and Integration

of Learning Value
Purpose:
 To maintain Global Project Methodology and
related work processes as a competitive
advantage through:
 Validation of those elements which are working
successfully
 Identification of opportunities for improvement of
Global Project Methodology or any GPM-related
processes or standards (17.07, 18.03, 22.01)*
 Submission of value-added changes to work
processes or standards via Management of
Change
GPM Overview
Project Closure Folder

Purpose:
 To formally document project performance relative
to plans and goals
 To provide evidence of those Global Project

Methodology elements that worked well and to
document opportunities for improvement
 To provide a “starter set” of key project

documents (BOP, TIP, PEP) that may help a new
project

GPM Overview
DILBERT

GPM Overview
Project Closure Documentation Guidelines
• All projects > $50 M need to submit a Project Closure Folder.

The reporting guidelines are different depending on project
size, per the below table.
TIC Document
>$15MM Project Closure Folder
>$300M and <$15MM Project Closure Folder Template
Project Performance Summary
Project Operability Survey
 $50M and <$300M Project Performance Summary
Project Operability Survey
< $50M Optional

GPM Overview
Project Closure Folders

Project Closure Folders for projects >$15MM include:
 Project Description and Scope
– BOP, TIP, PEP, PMC
– Authorization Request & Estimate
 Project Issues
– Summary of significant events that caused variations in project
performance
 Project Measurements
 Conclusions/Recommendations
 Appendix
– Summary Cost Report
– Benchmark Closure Folder

GPM Overview
Project Performance Summaries
Project Performance Summaries include:

Project Success Metrics for:
 Cost
 Schedule
 Operability
 Safety
– # of PDN’s and Field Change Orders
– Front End Loading Assessment
(PDRI)
GPM Overview
Summary of Project Startup and

Closure Stage
Project Project Project

Project
Definition Design and Startup and
Identification
Stage Construction Closure
Stage
Stage Stage
Define objectives Complete scope Rapid execution Project follow-up.

and business detail. of the project.
alignment. Measurements and
“Doing right “Just do it.” continuous
“Doing right improvement.
things right.”
things.”

GPM Overview
GPM Key Points
Standardized Process Which Supports:
Early Planning
No Change Mentality
Functional Integration

GPM Overview
GPM Overview Summary

 GPM is Dow’s “Best Practice” process
to ensure that projects are
implemented to meet the following
criteria:
– On Time
– On Budget
– Meet Business Objectives
– Are fully EH&S compliant
– Represent Lowest Long Term Cost of
Ownership
GPM Overview
GPM Overview Course - Summary
Do you have any questions?

GPM Overview
What Does Dow Need From You?
Make GPM Work!
Facilitate Implementation by Helping

Others use the Process
Give Feedback Through the

Management of Change Process

GPM Overview
Development of a Detailed Project

Scope or Technology Plan
THE “HOUSE” ANALOGY

I need a new house; about 3,000 square The average cost for a new house of
foot somewhere in the Midwestern US. this size today is roughly $350,000. We
I built a house several years ago for might be able to have it ready by
$150,000. I expect that it shouldn’t cost October if we can agree on a site, get
much more than that now. Can you an architect to draw up the plans by
“fast track” the construction so I move next week, secure funding, and have no
in by October? delays with building permits.
The Opportunity

GPM Overview

THE HOUSE ANALOGY

I’ll need a little more
detail before I can get
started. How many
bedrooms, ranch or two
Let’s get started,
story, location, etc.?
I need to move in
by October!
GO!

GPM Overview

THE HOUSE ANALOGY

I’ll need a four car garage to
store my boat, cathedral ceilings, large
And ...
windows for natural lighting, a nice
I really should include energy
wooded lot-maybe on a lake, four
efficient insulation, central air
bedrooms, hot tub, an open kitchen,
conditioning, low maintenance brick
and lots of storage space.
exterior, and solar heating panels.
Plan A

GPM Overview

THE HOUSE ANALOGY

With these specifications and a
lake front lot, the estimate is $700,000.
In fact, let’s make that 3,500 We also need to apply for a special
square foot. I’ll need some extra permit to build in the wetlands area
room for expansion. Can we start you have chosen. This will delay
clearing the lot tomorrow? construction until June of next year.
Reality Check

GPM Overview

THE HOUSE ANALOGY

That’s more than I can afford and I can’t
wait that long!
Developing a Project Scope
Maybe I only need access to a lake, a two car
garage, and could delay the solar heating?
or Technology Plan is an
-or- iterative process to balance
Rather than build, maybe I could find a suitable
older house of this size?
cost and benefits - it takes
-or- time. In addition, it is
Maybe I should rent for awhile?
necessary to develop
sufficient detail to reach a
set of mutually agreeable
expectations and provide
Plan B clarify for the resources to
begin implementation.
GPM Overview

THE HOUSE ANALOGY

You’re the customer. This
Changing the
change will be much more plan becomes
expensive now than it would increasingly
have been before we started
I’ve been reviewing the the masonry work. It will also
more costly
plans and want to change delay completion by, at least, during project
the fireplace location to two weeks. implementation.
the north wall.
Timely review
and concurrence
of the plan is
critical to
minimizing
overall cost and
timing.
GPM Overview
The Project Snowball

Project Gate Gate Gate Mechanical
Inception 6.0 10.0 13.0 Completion RTO
$
$
The spending
Plans The
Commitments
$
Business Opportunity Plan Master Project Spending
Technology Implementation Plan Schedule The
Project Execution Plan Project Definition Execution
Value Improving Practices Cost Estimate
Project Resources
GPM Identification Definition Design & Construction Start-up

Stages: Stage 1 Stage 2 Stage 3 & Closure
Stage 4


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GPM Overview

Global Project Methodology

Revised 28-Nov-05 Build and Modify Expertise Center GPM_Overview.ppt

Training Location Information

In Case of Alert or Evacuation ______________

Restrooms are Located ____________________

Smoking is Limited to _____________________

Phone Number for Emergency Messages is

Revised 28-Nov-05 Build and Modify Expertise Center GPM_Overview.ppt

GPM Scope, Objectives, and Structure

GPM References and Tools

Extra Bonus: Learn the Lingo

Revised 28-Nov-05 Build and Modify Expertise Center GPM_Overview.ppt

Training Ground Rules

Return from Breaks on Time

Stay Focused on Topic

Use “Hopper” for Concerns, Issues, etc.

Limit Multi-tasking (laptops, cell phones, absence)

Revised 28-Nov-05 Build and Modify Expertise Center GPM_Overview.ppt

Scope of Global Project Methodology

Is the single global work flow process for

Is an integrated process beginning with business

Describes the “who,” “what,” “when,” and “why”

Revised 28-Nov-05 Build and Modify Expertise Center GPM_Overview.ppt

Scope of Global Project Methodology

GPM is Dow’s “Best Practice” process to

Driving Forces for Global

Reducing resources required to conduct projects

Ensuring better definition and selection of projects

Revised 28-Nov-05 Build and Modify Expertise Center GPM_Overview.ppt

External Benchmarking - IPA

Accomplished by assessing individual projects

IPA’s database includes 4000+ projects for

Revised 28-Nov-05 Build and Modify Expertise Center GPM_Overview.ppt

Dow Projects in the IPA Database

Revised 28-Nov-05 Build and Modify Expertise Center GPM_Overview.ppt

IPA Work Process Assessment

Revised 28-Nov-05 Build and Modify Expertise Center GPM_Overview.ppt

Revised 28-Nov-05 Build and Modify Expertise Center GPM_Overview.ppt

Use of documented Most Effective Technology

Early development of key project plans, including

functions -- not organizations --

Revised 28-Nov-05 Build and Modify Expertise Center GPM_Overview.ppt

Sufficient flexibility exists within the

Revised 28-Nov-05 Build and Modify Expertise Center GPM_Overview.ppt

Pre - GPM Six Phases

Revised 28-Nov-05 Build and Modify Expertise Center GPM_Overview.ppt

Define objective and Complete scope Rapid execution Project follow-up

The full range of activities and work products to accomplish

Revised 28-Nov-05 Build and Modify Expertise Center GPM_Overview.ppt

Specific methods are defined for collecting “learning

Functional Integration is stressed in all project stages

Revised 28-Nov-05 Build and Modify Expertise Center GPM_Overview.ppt

“No Change” Mind-Set

Revised 28-Nov-05 Build and Modify Expertise Center GPM_Overview.ppt

Functional Integration in All Project Stages

Functional integration is....

appropriate functions working together to define,

the elimination of barriers between functions….