Using the PMF & Deviation Process

While the three building blocks of the PMF each serve a specific purpose, it is their combination which supports delivery of credible, competitive and affordable projects. The Project Standards and Expected Practices explain ‘what’ is expected in terms of desired outcomes in the delivery of capital projects, and ‘why’ it is important. They do not give instructions on ‘how’ outcomes are to be met. Opportunity/project teams are empowered to find appropriate ways to reach and demonstrate that the desired objectives are met. Only a minimum number of critical mandatory activities and deliverables are specified. This allows Shell to maintain a level of structure and consistency across all capital projects. The Library provides guidance on how to deliver what is defined in the Project Standards and Expected Practices. The software, Integrated Project Management System (iPMS), supports the users in the application of PMF.

How to use the Project Standards

The accountable party in the opportunity/project leadership determines how best the intent (what and why) of all controls within the Project Standards are met. The approach has to be appropriate for the opportunity/ project, in relation to its size, scope and risk profile.

The evidence of this is to be recorded in control points in the Discipline Controls and Assurance Framework (DCAF, Assurance of Capital Projects).

The controls are described in each of the Project Standards, using the format shown in the figure. The intent of the controls is described in the “Activity” section, providing the “what”, the “Context” section provides the “why” the control is needed and the “Purpose” section describes the reason for why the activity is necessary.

Controls shall be exercised in the ORP phase as defined in the Project Standards. However, the specifics of a project may drive more effective risk management if certain controls are exercised in earlier ORP phases. The opportunity/project leadership can decide to move controls to an earlier ORP phase and/or duplicate certain controls in earlier ORP phases in order to manage their specific project risks. Project teams may also choose to add controls.

Flexibility in Applying the ORP

For a project, combining phases is also possible provided this is a suitable approach to achieve the desired outcomes and to manage risks. Any adaptation of the ORP should be considered and documented in the Decision Framework and Opportunity Roadmap. Following this approach, several different control intents from different ORP phases could be combined. Similarly, Expected Practice steps could also be rationalised or combined.

Project Standard Deviation

Approval by the relevant accountable discipline TA1 is required for deviations from the mandatory Control Points and Controls in PS0 to 5. Where the individual Controls in a Control Point have a different accountable discipline from the Control Point accountable discipline, deviation approval is required from all the disciplines involved. Deviations shall be approved at the beginning of each ORP phase and should be recorded in the Project Controls Assurance Plan (PCAP).

Moving Control Points or Controls to later ORP phases than those defined in the Project Standards is a deviation. Duplication or moving Control Points or Controls to earlier ORP phases is not a deviation.

The FEDM or PM are accountable for meeting the intent of the deviation process, for recording deviations, and for obtaining the required approvals.

Deviation Approving Authority: Control accountable discipline available here , Control Point accountable discipline available here.

How to use the Expected Practices

Expected Practices comprise a set of steps that are expected to be carried out during each ORP phase. Meeting the intent of the Expected Practices is mandatory, but the means by which are not prescribed. The Expected Practices can be scaled to the opportunity/ project depending on its risk profile. The opportunity/project leadership determines the method by which the intent of the Expected Practices is met. The method has to be appropriate for the project, specifically in relation to its size, scope and risk profile. The opportunity/project leadership shall demonstrate that they have met the intent of the Expected Practices, which is subject to business assurance (LOD2 see "Assurance of Capital Projects").

The format and nomenclature of the Expected Practices and how they are presented as maps with each Practice step supported by a narrative as shown in the figure. The Expected Practices for each ORP phase are split into 3 periods, covering the start of the phase, the middle of the phase, called “work”, and the end of the phase.

Expected Practice Deviation

Approval for deviations from an Expected Practice Step is not required, but the FEDM/PM is accountable for meeting the intent of the Expected Practice Step, by ensuring alternative means of meeting the intent.

How to use the Library

The Library is a collection of guides, templates and tools, which provide guidance on how to deliver on what is described in the Project Standards and Expected Practices. The Library material supports the opportunity/ project teams in delivery of the outcomes. The use of the Library material is at the discretion of the opportunity/project leadership. There is no deviation required for Library content.