Two of the biggest reasons that projects fail are poorly defined scopes and late-stage design changes. A well-defined, well-executed Front End Loading (FEL) process, also referred to as Front End Planning (FEP), addresses both of these issues and serves as the foundation for project success. The Construction Industry Institute (CII) defines FEPs as "the process of developing sufficient strategic information with which owners and contractors can address risk and decide to commit resources to maximize the chance for a successful project."
CII estimates effective FEPs save up to 20 percent on project costs and 39 percent on project schedule. However, FEL workflows do not guarantee project performance. The thoroughness of the FEL process, as well as the way it is implemented and executed, contribute to its results.
Core elements of effective FEL processes include:
- Risk identification and mitigation in each step.
- Documented engineering deliverables by phase.
- Scope, schedule and estimate accuracy ranges by phase.
- Early stakeholder inclusion.
- Resource allocation planning.
Early risk identification is probably one of the most valuable aspects of FELs. Any show-stoppers can be found early and due consideration can be given to the path forward before a project is fully funded. For less severe risks, mitigation plans are established to address the concerns and lower their project impact.
By knowing what engineering deliverables are required at each phase, workers can ensure the design and engineering effort is more accurately estimated and executed. Checklists can be extremely helpful in facilitating this aspect of FELs. These checklists can be developed by discipline area and provide a roadmap for project success.
The scope, schedule and estimate accuracy by phase vary among different FEL processes. The main thing is that in each phase, all parties know the specified scope and estimate accuracy they are trying to achieve. For example, in early stages, accuracy expectations may be +/-35 percent or higher, while in late stages they are generally in the 5-10 percent range.
Early stakeholder involvement is another critical element of the FEL process and should include a cross-section of the organization. Collecting input and giving those affected by a project the opportunity to make comments and suggestions early increases support and buy-in. It also reduces late-stage changes and improves the overall design.
A common contributor to failed projects is poor resource planning. By addressing resource allocations in each phase of a project, a more realistic staffing plan can be developed, increasing the probability that the scope, schedule and budget stay on track.
While FELs got their footing in the construction industry, they are now embraced by a diverse spectrum of projects. The checklists and some details may vary based on the project type, but the process is applicable whether you are doing a $500,000 control system migration or building a multimillion-dollar greenfield midstream processing facility.
One of the biggest challenges that end-users have with FELs is the consistent application of the methodology. Particularly on fast-track projects, there is a tendency to abandon the gated approach. That is one of the reasons that many fast-track projects become colossal failures.
In addition, each FEL stage must be managed as an individual project. Overages can occur in FEL phase work. For example, if during FEL-1 an engineer discovers an electrical load study is required that wasn't anticipated, does he/she move forward with that work? The answer depends on the effort required. If it is not budgeted in the current FEL phase, then it shouldn't be done unless the documented change order process is followed. Most likely, it will be rolled into the design and engineering work for the next phase.
Ultimately, the FEL process is an industry best practice that serves as the foundation for project success by approaching projects in smaller, more manageable pieces. This enables better business decisions to be made as a project advances and delivers bottom-line value to end-user companies.
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