Integrated Program Management System 2000

Introduction
IPMS 2000 was developed to consolidate and
integrate multiple, diverse Materials Management,
Procurement, Document Management, Project
Control and Site Control Applications throughout
KBRs worldwide offices. The objective in
developing IPMS 2000 was to globalize and
standardize project execution systems, standards,
and practices by incorporating the best practices
exercised in Houston, London, and Alhambra.
IPMS 2000 has been operational since late-1993. In
1998, a project was undertaken to put a Graphic
User Interface (GUI) front-end on the system to
mimic Windows-type functionality. As a result,
IPMS 2000 is a completely point and click
system.
System Functional Scope
IPMS 2000 fully integrates and automates the
functional areas of Document Management,
Materials Operations / Materials Management
and Project Controls. It is designed to
implement a full Engineering - Procurement Construction project scope, but can be utilized
for any portion of project execution.
System Organization
IPMS 2000 is organized through Oracle's
relational database technology. The underlying
data model is rationalized to permit single point
of entry. The discipline responsible for
performing each function is solely responsible
for creating and maintaining the same
information within IPMS 2000. All other
disciplines use existing data and only enter the
required information to perform their function
and generate their operational documents or
reports. All operational project documents and
reports are generated from IPMS 2000.
IPMS 2000 DETAILS.DOC

This "value added" leveraging of real time

multi-discipline data provides a shared
environment that results in improved project
operational performance through:
1) Eliminating redundant data entry
2) Improving accuracy and consistency of
data
3) Improving communications between all
project entities
Improved feed back and control is ensured
through timely, consistent, and accurate
information. Project Controls, Scheduling
and Cost Control, provides agreed-to and
consistent project baseline measures to the
operational disciplines. The operational
environment, controls work and generates
documents, and provides accurate, real-time
status information for management reporting
and project control.

IPMS 2000 Applications

IPMS 2000 is organized as a set of integrated
applications. They are as follows:

Administration/Security

Reference

Document Management

Material Requirement Planning

Procurement

Site Material Control / Construction

Support

Tracking

Cost Control

Interface tables within each application

efficiently process incoming and outgoing
data from engineering, accounting, and
external project controls systems such as
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CPM and estimating. External interface

processes are designed to handle both internal
systems as well as client and other, third-party
data transfers. These interfaces will be discussed
in the context of the appropriate functional
IPMS 2000 application.

codes. These code attributes are stored in one

place and referenced throughout the system
for consistency, efficiency, and control.

Administration/Security
Application

The Document Management Application

performs two major functions, document
registration and document transmittal. The
application maintains all document
references, revision histories, and document
cross-references. All other IPMS 2000
applications utilize this central repository to
perform any portion of their work associated
with documents.

IPMS 2000 security is at two levels:

1. Access to the server / database
Authorized individuals are set up with logon
privileges from their workstation. This
provides access to the project database.
2. Access to specific functions (screens and
reports).
Each user is granted predetermined access to
specific projects. Within each project, the user
may be granted one or more responsibilities.
These responsibilities have predetermined
access grants to defined applications, whether
on-line forms (screens) or report generation.
The database administrator works closely with
the project staff in setting up and maintaining
these grants.
Actual updating of information is controlled
through Oracle edits through required fields
and validation of data.

Reference Application
The Reference Application within IPMS 2000
controls most of the common codes used
throughout the system. Project, subproject, work
breakdown structures (WBS), organizational
breakdown structures (OBS) and standard code
values are maintained. Corporate standard codes
are populated as part of the project startup
process and some can be edited for project
specific requirements. Codes used for global
data collection may not be edited by the project.
All applications validate or select from these
IPMS 2000 DETAILS.DOC

Document Management
Application

Document Registers
The system organizes document groups
relative to engineering documents, supplier
documents, and general correspondence.
Within each of these groups, documents are
organized by document type and subtype. All
documents are associated with the
appropriate project organization, the
discipline within that organization, in
addition to WBS and OBS coding.
All documents can be controlled through
multiple filing references at multiple
locations as well as lifecycle coding to
provide for archiving and turnover
procedures. Individual document media and
size information can also be maintained.
Engineering Documents
When engineering documents are registered
in the system, tracking chains are
automatically assigned. This, in connection
with the transmittal portion of document
management, assists the tracking and cost
control applications with measuring project
engineering progress. Part of the project setup activity identifies which material takeoff
documents are automatically inserted into the
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engineering document register when CAD

downloads are interfaced with IPMS 2000.

functions will be discussed in the associated

applications.

Supplier Documents

Material Requirements Planning

Application (MRP)

Identify and control supplier documents through

the standardized supplier data requirements list
(SDRL) coding. Supplier data requirements,
both technical and commercial, are included as
part of the inquiry specification/request for
quotation to the individual bidders and verified
in the procurement specification/ award to the
successful supplier. All supplier documents are
coded and controlled to the appropriate SDRL's.
The SDRL's can be tracked to individual
equipment items, including sub-supplied
components as required. Status and expediting
is maintained until all requirements have been
filled.
Transmittals
All documents can be formally transmitted and
controlled through IPMS 2000. Standard
transmittal matrices are defined with each
recipient's requirements including quantity,
media, and size of documents as well as any
action required. Distribution lists can be
modified and augmented at the time of
transmittal. Default cover letters are also a part
of project set-up. These cover letters may be
edited as necessary for each individual
transmittal.
Transmittals use the IPMS 2000 bar-coding and
tracking utilities. Transmittal package status is
tracked through defined milestones and is used
as the basis for progressing documents and their
associated workpackages.
Document Associations
Documents are also associated in multiple ways
to other functions such as, equipment lists, bills
of material, procurement documents,
workpackages, and other special processes such
as regulatory authority communication. These

IPMS 2000 DETAILS.DOC

The Material Requirements Planning

Application performs the following general
functions: glossary, material catalog; material
design specification, material takeoff (MTO)
and material requirements planning (MRP).
Glossary
The bulk material codes are comprised of a
material header and a size code. The material
header is generated by an intelligent "build
code" system (Glossary). Each construction
material category provides data to the
component logical attribute breakdown called
'build segments'. Each of these segments is
populated with the current material standards
called 'build items'. From these building
blocks, build formulas are established for the
specific subcategories of material. Each build
formula identifies the applicable build
segments and sequence as well as the valid
subset of build items that applies specifically
to that subcategory of material.
The current, standard build code glossary is
included as part of the project setup. The
specifying engineer uses the standard
formulas to create the project's bulk material
catalog. The specifying engineer can create
new formulas and/or build items within
existing build segments to meet specific
project requirements.
While the material catalog can be created
directly in IPMS 2000, engineering uses an
Oracle based, proprietary material
specification program, called Merlin, to
generate the material catalog for both IPMS
2000 and 3D CAD systems. See further
discussion under Material Specification
(Merlin section).

All material glossary items carry with them a

number of attributes in addition to the code and
descriptions. The major attributes include data
origin, organizational ownership (Kellogg
Brown & Root, client, third-party contractors, or
suppliers), valid quantity unit of measure,
purchasing responsibility and project code of
accounts. IPMS 2000 identifies when the
material has been superseded and by what and if
it is a part of another "parent" code.
Material Catalog
The IPMS 2000 Material Catalog stores all valid
project / subproject material references. This
includes all equipment (tagged items), bulk
material codes and spare parts as well as
assemblies and Mark-Id's. Mark Id's provide the
basis for the project to group identical tagged
items and procure them as bulk material while
controlling design at the tagged item level.
The material code is also associated to a valid
size group, which defines the valid sizes for that
material. Further, the project can augment the
material descriptions for such dimensions as
extended descriptions, inspection requirements
and special handling instructions. Dimensional
information can also be maintained for freight,
construction and estimating purposes.
IPMS 2000 provides extensive material cross
referencing to permit multiple organizations'
material catalogs to be imported into IPMS
2000 and to control and procure common
material centrally. IPMS 2000 also provides
material equivalency catalog which permits the
project to identify valid substitutions and
preference ranking.
Tagged Items
The design data sheets and specifications are not
part of IPMS 2000. However, all tagged items
are listed as part of the IPMS 2000 catalog.
Tagged items are managed within IPMS 2000
beyond the cataloging function. These
additional capabilities include the following:
IPMS 2000 DETAILS.DOC

a. All tagged items carry with them the

engineering/procurement specification
and release status, which permits
electronic requisitioning and control.
b. IPMS 2000 can catalog the spare parts
requirements, by type, for tagged items
including the supplier catalog,
interchangeability, and MTO for a
specified level of supply.
c. Insulation and paint requirements, for
establishing contract requirements and
tracking, can be created using the
connection with the IPMS 2000
material specification process. See
below under Material Specification for
further discussion.
d. Installation and other assembly types
can be associated to a tagged item,
usually instruments, for bulk material
component MTO requirements and
construction tracking. See below under
Material Specification and Material
Takeoff for further details.
e. Baseline project controls data, such as
need dates and budgets (including
variances), are associated to tagged
items for control and monitoring.
Tagged items can also be assigned to
multiple (types) of workpackages for
planning and control. Tagged items
can also be tracked separately through
the use of the IPMS 2000 Tracking
Application. Design and material
status for each tagged item can be
viewed on-line, or through reports,
from design through installation. See
the Tracking Application for further
details.
f. Tagged item maintenance requirements
can be defined and maintenance
history tracked within IPMS 2000. See
the Site Control Application for further
details.
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While tagged item indices can be maintained

directly within the system, IPMS 2000 also
interfaces with a series of engineering
applications used for specification and datasheet
creation.
IPMS 2000 also has the capability of interfacing
with external third party equipment lists.
Material Specification
IPMS 2000 contains a full material specification
process to define the valid material and sizes by
material class. Kellogg Brown & Roots
proprietary material class generator program,
Merlin, has been discussed earlier under
material catalog. It links the material glossary,
material catalog and size code bases together for
material takeoff efficiency and quality
assurance. The material specification process
can be applied to all design disciplines as well
as insulation and paint. The material
specification identifies valid material through a
range of sizes. The size group defines the valid
sizes (and size code) within that range.
A number of other features included in the
material specification process are a valid line
list, service codes, as well as a number of
conversion processes, such as bolt set
conversion, o-let range conversion, and ring
joint flange conversion.
Each material class component (material
header) carries with it a short code or key code.
This facilitates material take off by allowing the
use of a mnemonic and nominal size and
returning the valid material code and size code.
Valid assemblies are also included in the
material class. Each assembly references the
valid component material parts which can be
exploded in the material takeoff process.
Material Takeoff
IPMS 2000 provides a full material takeoff
capability, which can be performed in a number
of methods depending upon project
IPMS 2000 DETAILS.DOC

requirements and conditions. These include

direct material takeoff, material takeoff using
the material specification short or key code,
material takeoff using assemblies or
interfacing with a) CAD systems or by other
external material takeoffs. If required,
material takeoffs optionally can be broken
down by pipe spool for fabrication control.
All material takeoffs and bills of materials
are associated with documents in the
document register and are controlled like any
other document. Any material takeoff, or
portion, can be archived in the IPMS 2000
history tables for future reference.
IPMS 2000 structures material takeoffs to
facilitate materials management and
construction. IPMS 2000 tracks and
compares material takeoffs at a number of
levels defined by the project in its material
planning process. Normally, there are three
levels - preliminary, intermediate, and final
but the number is virtually unlimited, if
required.
In addition to controlling takeoff by level,
IPMS 2000 also organizes material
takeoff/bills of material by material groups.
A material group defines the intended
material use to facilitate the material
operations of the fabricator or constructor.
One of its major uses is to assign priorities
and associated need dates. For example,
above grade piping material groups may be
defined as installing material, field
fabrication materials, shop fabrication,
random, tie in, in-line equipment, etc. By
breaking down the bills of material in this
fashion, IPMS 2000 can automate the
assignment of such critical data to material as
project code of accounts, material
destination, and need date.
As part of the project's material planning and
IPMS 2000 start up, a "rules table" is
configured to automate the assignment of
project code of accounts, material
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destination, and need date. The project can

define a number of types of need dates, for
example original baseline, current baseline,
target and critical. This permits the material
planning process to compare material
requirements and current material delivery
forecasts to quantify problem areas and
determine the appropriate action. The MRP
profiles also aid in establishing earliest need
dates for newly requisitioned material. These
material requirements, as well as detailed
procurement and inventory status, generate the
material summary. The material summary is the
basis for requisitioning bulk material.

Procurement Application
The Procurement Application consists of the
pre-order functions of requisitioning, inquiry
(request of quotation), and award. the after order
functions include expediting, traffic and a
limited inspection capability. For supplier
documents, see the Document Management
Application.
All procurement documents are issued directly
from IPMS 2000. Material operations are
therefore, fully automated. The procurement
operational processes and documents are
associated to the IPMS 2000 workpackage and
Tracking Application, and automatically update
procurement status and projections as a result of
the work performed. Through this mechanism,
all affected disciplines are alerted to the relative
impact as the work progresses. If there are
specific review and approval milestones for any
of the procurement processes, the Tracking
Application can be invoked to track and control
these activities.
Requisitioning
All material is requisitioned through IPMS
2000. The material catalog contains the
reference for all requisitioned material. The
Requisition controls the authorization level for
procurement activity, inquiry or purchase.
IPMS 2000 DETAILS.DOC

Multiple types of material, such as equipment

and bulk material, can appear on one
requisition, Requisition history is maintained
in IPMS 2000 and every requisition
document identifies current and previous
quantities. Requisition line items can be
further broken down into multiple
destinations and need dates.
IPMS 2000 is capable of "electronically"
requisitioning material. In the case of tagged
items, the process identifies which items have
been released and not requisitioned. The
requisitioner selects open items for
requisition. IPMS 2000 identifies new bulk
material from comparing the requisitioned
and required quantity. The requisitioner can
identify these outstanding material quantities
to a requisition of his choice.
The current revision of reference documents
is associated as attachments to a given
requisition revision for the buyer to issue to
bidders or successful supplier, as required.
As reference documents are issued for
revision, IPMS 2000 identifies which
procurement documents the reference
document is associated with so that the new
revision can be processed promptly through
the procurement cycle. Conversely,
engineering and project management can
quickly identify which contracts would be
affected before a document is revised.
When there is a decreased quantity of
required material compared to that
requisitioned, the requisitioner knows the
procurement status of the affected material
and can quickly contact the buyer for
possible cancellation. He or she can also
alerts engineering of possible excess material
for future design use or as possible
substitution. When substituted material is
approved by the project, a "reallocation
process" adjusts the relative quantities and
alerts construction.

Request for Quotation (RFQ)

At the beginning of the project, a master vendor
list is established and entered into IPMS 2000.
Corporate vendor data is downloaded for the
selected suppliers and contains the appropriate
addresses, contacts, and other pertinent
information. New suppliers are added through
the corporate process for consistency between
procurement and invoice accounting.
The IPMS 2000 RFQ process permits the
selection of one or more requisitions, or portions
of requisitions, to create an RFQ. Indexing
prevents duplicate inquiry of material and
identifies what material has not been inquired.
Pertinent reference documents are attached to
the RFQ along with any required supplier data
requirements list (SDRLs). The buyer associates
the selected bidders from the project's master
vendor list after the appropriate approval
process.

capability of augmenting the material

descriptions or procuring equivalent material
where authorized in the material equivalency
table maintained by engineering in the
Material Requirements Planning Application.
Both the material description and the
authorized equivalency are printed on the
award line item to eliminate confusion and
provide proper control. Current and previous
unit pricing and quantities are also shown on
all award change orders.
Pricing agreements / purchase agreements are
maintained within IPMS 2000 and individual
award drawdowns are controlled to the parent
pricing / purchase agreement. Award pricing
discount structures can be maintained within
IPMS 2000 to assist the buyer in the proper
pricing of material.

The use of the Tracking Application permits the

monitoring and control of the RFQ process up to
placement of the actual award(s).

The Award process automatically sets up all

downstream processes, including supplier
document control, expediting, traffic, cost
accounting, receiving and the administration
of rental agreements and subcontracts.

Procurement Award

Expediting

IPMS 2000 produces complete procurement

award documents, regardless of type of award.
All award revision information is maintained
within IPMS 2000, including quantities, unit
pricing and associated reference documents.
IPMS 2000's shared data environment leverages
existing data to create the award and provides
the basis for after order processes and real time
control information. Automated cost coding of
IPMS 2000 relieves the materials operations
staff and controls staff from tedious, detailed
controls coding.

Expediting can begin with a letter of intent.

Expediting maintains the latest status and exworks projections, including partial
shipments, compared to the original promises
and field-need dates. Sub-supplied items can
also be tracked relative to the prime award
line item. A variety of material status reports
provide the project effective management
over the shipment and delivery of material.

Requisitions for purchase may be combined and

split to many awards at the buyer's discretion
and the project's approval process. Indexing
ensures that material is not bought without
proper authorization and all requisitioned
quantities are accounted for. The buyer has the

IPMS 2000 DETAILS.DOC

Pipe spool and steel fabrication control is

treated separately from line-item expediting
and can be monitored at the summary or
individual piece. Each piece can be
monitored through the fabricator's shop,
including cost information, all the way to
field installation.

Traffic
The IPMS 2000 traffic function may be used for
any material movement from one location to
another. This includes material movement from
a supplier to the final material destination as
well as movement from one warehouse location
to another that requires tracking and a carrier.
Material movement from an award to its final
destination can be performed at a level
determined appropriate by the project. Levels
vary from none to tracking shipments at the
award subline level to a complete packing list
and packing manifesto. Depending on how the
traffic process is used, material can be received
directly by shipment. Further, depending on
how the project elects to use the traffic function,
material movement tickets (MMTs) can be
automated, through a controlled process, based
upon expediting status indicating which material
is ready to ship. Interfaces also exist with
various freight forwarders to automatically feed
the freight forwarders system with purchasing
and expediting information and in turn feed
IPMS 2000 MMTs with the shipment
information from the freight forwarders system.
Special instructions for material handling can be
set up in the Material Requirements Planning
Application. This includes international
export/import coding in accordance with the
Bruxelles International Nomenclature
(Harmonized Commodity Control Number / US
Schedule B Number). These instructions can be
included as part of the procurement documents
to the suppliers.
Shipments can be tracked through each segment
(route segment) of the logistic process,
including various modes of shipment, transfer to
multiple carriers as well as shipment
consolidation. Consolidated shipment schedules
can be maintained in order to coordinate and
plan individual shipments. Segment freight
costs, in multiple currencies, may be tracked for
invoicing and cost control, if required. Traffic
documentation can be monitored and handled as
IPMS 2000 DETAILS.DOC

any other document in the Document

Management Application.

Site Control / Construction

Support Application
The Site Control / Construction Support
Application consists of four general
functions: receiving, warehousing, site
support and workplan evaluation. All site
control documents for receiving and
warehouse control have full document
publication capabilities and can utilize IPMS
2000 tracking.
Material Receiving
Material may be received in a number of
ways, depending upon IPMS 2000 setup and
specific site conditions. Accessing and
receiving against a shipment and its line
items that were generated through traffic may
receive material and traffic documents.
Material can also be received by accessing
the award and its line items. Finally, direct
material, award line item sub component
items, pipe spools, other fabrication
piecemarks, and rental equipment may be
received directly as valid material codes. In
all cases, a material receiving report (MRR)
is issued with the material received. Where
material is received over, short, damaged or
in quarantine (OSDQ), these materials are
tracked through resolution. Missing
certification documentation can also be
tracked to ensure final receipt.
Received material can be directly located into
warehouse inventory, either through selecting
automated bin location or selecting a defined
location.
Material Warehousing
All sites carry with it a defined location code.
This code is used as the destination code
assigned in the Material Requirements
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Planning Application and used in the

procurement process. Each site can set up one or
more warehouse codes, and within each
warehouse establish a grid or bin location as an
option. If the site wishes to pre-assign material
to a specific location, or locations, they can
identify which catalog items go to which
warehouse location(s). When material is
received, the site staff can automatically assign
the material to the pre-assigned location. To
facilitate certain material warehousing, the site
can establish a warehouse min-max inventory
for defined material.

Finally, IPMS 2000 has a surplus material

declaration and disposal process, which
identifies potential surplus material and
tracks the liquidation of that material.

Warehouse inventory is administered through a

series of warehouse documents and processes.
While material is moved in and out of inventory
through these electronic documents, IPMS 2000
allows for a warehouse adjustment process,
where physical inventory is taken and the
warehouse is adjusted to reflect the actual, onhand levels.

The construction site uses all functionality of

IPMS 2000, including the Procurement
Application for all field purchases. The
purchasing and administration location codes
are the only differences from the home
office. Subcontracts are usually administered
from the construction site. The field site can
track the actual pay item quantification and
completion as a further breakdown of the
subcontract line item.

The warehouse administration of received

material starts with the foreman's Warehouse
Issue/Return Request. When the request is
approved, a formal Warehouse Issue/Return
Authorization is issued which becomes the
warehouse "pick list", decreasing or increasing
available inventory. Issuing "short" against a
bill of material reserves material for future
disbursement. The Workplan Evaluation
Program process can create warehouse requests,
which will be discussed below.
When material is to be moved from one
warehouse location to another, a warehouse
transfer is issued which identifies what material
is to be transferred and to what location. Where
intersite transfers are involved, the traffic
function can be used to track the material.
Examples of intersite transfer could be excess
material shipped from a fabricator or in transit
material shipped from a marshaling yard.
Material inventory is automatically decreased
from the sending location and increased at the
receiving location through the receiving process.
IPMS 2000 DETAILS.DOC

Site Support
There are a number of important functions
that support overall material management at
the site. These include subcontract
administration, equipment maintenance,
equipment service log, painted pipe control,
and punch list.

It is essential to service equipment (and other

material) while in the construction phase and
before turnover. IPMS 2000 permits the
tracking of all required field maintenance, the
type required, its required frequency and the
actual field maintenance history. IPMS 2000
also keeps track of all supplier/ manufacturer
service requirements and supplier site visits
for equipment (and other required material).
The field often issues painted pipe to the
construction crew, not bare pipe. The
construction site normally receives pipe and
fittings bare and must send them out for
painting based on paint system requirements.
Painted pipe requirements are defined in the
Material Requirements Planning Application
by identifying material takeoff to a paint
system specification. IPMS 2000 permits the
field to identify how much pipe must be
painted to a given specification, how much
painted pipe is on hand, issued, and how
much is released for painting.
9

Another feature of IPMS 2000 permits

construction to punch list material requirements
by system and document allowing them to
close-out and turnover a system even though the
material design quantities have been issued.
These punch lists can be associated with
workpackages and utilize the tracking process
for control.
Workplan Evaluation Program
Labor is the critical resource/cost in a
construction budget and installation of bulk
material constitutes roughly 90-percent of that
budget. Therefore, if construction can maintain
high labor productivity they, can effectively
manage their budget, and the schedule. Lack of
materials is the leading cause of poor
productivity. IPMS 2000 provides a very
powerful tool called Workplan Evaluation for
construction to manage labor through material
availability planning.
Based on IPMS 2000's Workplan Evaluation
Program, construction can evaluate the risk of:

Committing labor

Identifying and quantifying expediting

priorities for late material

Evaluating various work around plans

It is necessary to determine risk before limited

material inventory is physically committed to a
drawing or labor is committed to work without
sufficient material available.
Workplan evaluation is based on the integrated
nature of IPMS 2000, material requirements
planning, document management, procurement
and site control. Construction selects a set of
drawings (or portions of drawings [Jobcard] and
material group) based upon construction
priorities. The program searches selected
warehouse inventory based upon the defined
documents' bills of material for the material
required for field fabrication (material group).

IPMS 2000 DETAILS.DOC

The process assigns availability of material

sequentially on the priority assigned to the
drawings, first through inventory of available
material, then backwards through traffic,
expediting, purchasing and requisitioning.
The process determines when material will
be available to build the drawings, what
drawings are "OK to Build" and where
drawings are competing for scarce material.
In the case of piping installing material,
Workplan Evaluation also evaluates the
availability of in-line equipment and pipe
spools. Based upon the results, an informed
decision can be made to either generate a
Warehouse Issue Request (reserve material),
or rerun the process based on different
parameters.

Tracking Application
The IPMS 2000 Tracking Application can be
seen as two general utilities, workpackage
and chain milestones, that can be applied to
the managing of all facets of the project. The
Tracking Application also has a CPM
interface process as well as an interface to
constructions labor control system, ACLS the Automated Craft Ledger System.
Project Calendars
As part of the project's set up, a series of
project calendars are established and
provided a code. Normally there is an elapsed
calendar and at least one working calendar.
Each working calendar identifies the working
days and the number of working hours per
day. Each working calendar can be
segmented to show different working
schedules through time. There can be a
separate Working Calendar to reflect the
working practices of each site. These
calendars are used for date validation, date
calculations, and date projections.

10

Chain Milestones
Each project defines the milestones they wish to
track. Corporate default milestones are loaded
initially to facilitate the setup, but can be
modified as required. Each milestone can be
identified to a specific discipline (OBS), its type
(start or finish) and its parent milestone if it is
embedded.
Chain models, or templates, are established by
attaching milestones and assigning each
milestone its order, duration and default earning
rules (percent earned). Any discipline or
function can define milestones and chains for
their use. The user applies the appropriate chain
models when he or she wishes to schedule,
track, and project progress in the specific work
activity.
Milestones can also be "mapped" to virtually
any IPMS 2000 date field, so that the database
can automatically update the tracking function
as work is performed. Default mapping is
provided as part of the IPMS 2000 setup, but
like milestones can be modified to meet the
specific requirements of the project. There are
two specialized forms of mapping: Milestone
mapping is provided for tracking tagged items
from design through installation. Milestones are
also mapped to transmittal purpose to permit
the automated tracking maintenance when
documents are issued through the transmittal
process.
Workpackage
IPMS 2000 permits grouping or organizing any
set of components maintained within IPMS
2000 into workpackages. This permits the
tracking of these workpackage contents as a
package as well as individual items.
Workpackages can also relate to other
workpackages as a parent or linking function.
Examples of the primary workpackages are
engineering, procurement and construction. An
example of another, more specialized

IPMS 2000 DETAILS.DOC

workpackage would be "Turnover

Workpackage" for data book organization or
archiving. The Workpackage utility does not
require the use of tracking, but the two
utilities are generally used together.
Engineering workpackages are an essential
part of IPMS 2000 for tracking the scope,
budget deliverables, progress and
performance of engineering. IPMS 2000
permits the efficient, objective management
and control of the engineering (scope)
through the integration of the level 3
workpackage with the level 4 deliverable and
the level 2 CPM activity.
Engineering Workpackage
All engineering scope is broken down into
discrete workpackages. The number of
documents originally planned, currently
planned, and forecast are identified at the
workpackage level to permit work planning
and forecasting. Actual deliverables are
attached as components to the workpackages
as they are registered in document
management.
All engineering workpackages are associated
to a cost control package and the original,
current, target, and forecast budgets are
maintained. All attached documents take a
default weight value of 1.0, but can be
overridden if the project determines that the
relative value of the documents vary
significantly enough to warrant the additional
maintenance.
Each engineering workpackage is assigned a
default chain and project calendar. The
default milestones duration and relative
earning rules can be modified to meet the
specific conditions of the workpackage. The
project can establish the basis of progress
measurement: whether or not progress will be
determined at the workpackage or deliverable
(document) level and whether or not progress
can be taken incrementally between
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milestones or by milestone only. Individual

documents may have their own, different chains.
The common milestones at the workpackage
and document levels integrate the two levels.

used by the Cost Control Application for

earned valued performance analysis.

Where progress is determined at the document

level, the transmittal process will update the
milestones automatically as the documents are
transmitted. Weighted progress is rolled up to
the workpackage level. Incremental progress
and non-transmitted, or non-mapped milestones
are maintained through direct input.

The IPMS 2000 Cost Control Application

establishes all cost coding for the project,
including materials operations and tracking.
The Cost Control Application also manages
all phases of cost control and reporting, from
baseline budgeting, change control, earned
value performance analysis, commitments,
accounting interfaces, and forecasting to
financial schedules.

CPM Interface
The IPMS 2000 workpackage portion of the
Tracking Application is designed to interface
with a number of Third-party CPM applications,
notably Primavera, Open Plan, and Artemis.
One or more wrkpackages can be associated to a
single CPM activity; the milestone mapping
permits a more detailed, intermediary tracking
in IPMS 2000 while limiting the activity
breakdown in the CPM to only the necessary,
higher level critical interfaces. An automated
process transfers IPMS 2000 progress at the
workpackage level to the CPM environment.
When CPM critical path analysis has been
performed, the resulting projections can be
transferred back to IPMS 2000 where the CPM
results are compared with the IPMS 2000
projections.
Automated Craft Ledger System (ACLS)
Interface
Kellogg Brown & Root uses an Oracle-based
Construction Craft tracking / progress system,
Automated Craft Ledger System, to plan and
control craft labor at the detailed level. IPMS
2000 provides a download capability to the
ACLS for setup. This includes the latest
document information such as MTO,
workpackage, CPM schedule information, cost
coding information, and budgeting information.
IPMS 2000 provides for a tracking freeze for
reporting and history. This tracking freeze is
IPMS 2000 DETAILS.DOC

Cost Control Application

Cost Coding
All cost codes are maintained in IPMS 2000.
This includes all codes of accounts as well as
the breakdown of cost data in order to
manage all phases of control.
Project Codes of Accounts hierarchies are
established for the entire project, including
cross-references to client and third-party
codes of accounts, as required. A code of
accounts rules tables automatically codes
MTO's and commitments to the correct
project code of account. This eliminates error
and reduces the effort to code the operational
outputs from IPMS 2000.
Cost category and subcategory hierarchies
permit the tracking of cost breakdowns to
subcategories of costs and permit rollups
based upon reporting and control
requirements. For example, the cost category
of material can be broken down to
equipment, bulk material and consumables.
Some subcategories of these include process
equipment, instruments, welding rods, etc.
Cost type and subtype hierarchies permit the
differentiation between subtypes of budgets,
changes, commitments, and forecasts.
Budgets can be differentiated between a
number of different baselines: changes
administered from approved, trend, budget
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shift, etc. In this way, reporting and control can

be segregated and reports generated from
different perspectives.
Cost control packages are established for the
project based on project specific requirements.
These cost control packages can be associated in
hierarchical fashion to provide reporting rollups.
Each cost control package is established at
whatever level the project elects to control costs.
With the use of the hierarchies for Project Code
of Accounts, Cost Categories and Cost Types,
IPMS 2000 provides a structure to control and
report any project environment.
Finally, all currencies, currency conversions,
and currency conversion histories are
maintained in IPMS 2000. This permits the
tracking and reporting of all costs, in any phase,
in multiple currencies that reflect the actual
conditions of the project.
Budgets
Project estimates may be automatically loaded
to the IPMS 2000 Cost Control Application. The
estimate can be recast before establishing the
baseline budget for the project. Cost subtypes
can be utilized if more than one control estimate
is used throughout the project's life cycle. This
preserves and compares the various baselines
established for the project. A "Budget Rules
Table" maintains the budget subcategories for
the various subtypes of changes or variances. A
"Client-Phase I" budget can be established if a
"Not-to-Exceed" baseline is to be compared,
while maintaining a detailed control budget
from another baseline. Thus, reporting and
control can be separated for multiple project
objectives.
Change Administration
IPMS 2000 contains a full change
administration subsystem. Variances can be
identified, quantified and tracked
administratively through the various steps using
IPMS 2000 DETAILS.DOC

the IPMS 2000 Tracking Application.

Change request revisions and contractual
change orders can be transmitted to the client
and to other contractors through the IPMS
2000 Transmittal process.
Once variances have been approved
according to the project procedures, they are
released and cast into the budgeting process,
which is controlled utilizing the variance
subtypes (such as approved, management
reserve, trend, budget shift, etc.) and reported
according to the "Budget Rules Table." The
various workpackage and item budgets are
maintained through this process.
Earned Value Performance Analysis
The IPMS 2000 Cost Control Application
utilizes the Tracking Application's earned
value calculations to compare and analyze
the actual charges against the associated cost
control packages. The tracking freezes are
used to maintain a performance history of the
various levels of the project's work
breakdown structure (WBS) and
organizational breakdown structure (OBS).
The performance reports provide the project
the proper level of "feedback and control" as
well as the basis for forecasting engineering
labor costs.
Commitment Process
The integration of materials operations and
project controls automates the cost coding of
the commitment process. Procurement
awards and change orders are maintained at
the operational level for contracting and also
at the commitment level for cost control and
reporting. Cost control can redistribute
awards based on a variety of decision rules
based on the breakdown of the various cost
categories and subcategories. Bulk material
can be distributed through a project defined
"WBS Bulk Distribution Matrix" or allocated
by the relative distribution reflected in the

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IPMS 2000 Material Requirements Planning

Application's MTO Summary process. Both
processes are setup during the project execution
planning process.
Commitments can also be tracked by multiple
currencies or summarized to any common
currency using the currency conversion tables in
IPMS 2000. Commitments can also be tracked
based on the "degree" of commitment utilizing
the method of award and the cost subtypes for
commitments.
Cost control can also maintain commitments
independently from the materials operations
system, as required, such as those accounts that
are not a product of the procurement process.
Accounting Interfaces
IPMS 2000 Cost Control Application can be set
up to receive any external accounting system.
The interfaces include labor costing systems and
accounting systems. This imported data is
reviewed with the help of an editing process
highlighting inconsistencies with the project
data structure. The imported data is also used to
evaluate against earned value data from the
Tracking Application and commitment data
from the Procurement Application.
Forecasting
Forecasting in IPMS 2000 is treated as another
subcategory of "variance" with its specific
distribution rules. Forecast subtypes might
include "third-party contractor", or
"departmental" to differentiate between project
"forecasts".
Financial Schedules
IPMS 2000 can establish the baseline curves for
such financial schedules (and forecasts) as
commitments, billings, and exposure. This is
done through time-schedule curve distribution
rules that form a continuum of one or more
curve segments. The baseline schedules are
IPMS 2000 DETAILS.DOC

logically connected to cost control packages

and the desired level of detail to establish the
baseline values. The baseline schedules are
also associated to the phase (cost types and
subtypes) of control (commitments, billings,
etc.) from which actuals will be accrued. As
actuals occur in the IPMS 2000 environment,
cost freezes are generated and compared
against the individual financial schedule
baseline measures.
Cost Reporting
IPMS 2000 provides a wide array of
reporting capabilities for all phases of cost
control. These reports can be organized to
sort and select in any way in which the
project requires. The project sets up its
criteria through a series of hierarchies from
which standard reporting can be generated.
Project specific report formats can also be
developed to use these hierarchies and other
features of IPMS 2000.
A number of cost freezes permit a stable endof-the-period reporting environment as well
as an historical cumulative record of the
various cost type/subtypes for budgets,
variances, commitments, earned value, and
accounting labor and billings data. This
provides for the reporting of cumulative,
period, and historical information for any
related cost data the project requires.
Summary
IPMS 2000, as a Project Management
System, fully integrates the project's
operational environment with that of project
controls. This full integration provides the
basis for improved operational productivity
and quality through the leveraging and
validation of data which is maintained as a
single point of entry. Project management
information is significantly improved through
a consistent and timely communication of
shared data between all disciplines. Project

14

Controls provides the baseline measures and

projections to the operational environment. The
Operational environment provides timely,
accurate performance information as a byproduct of their daily work.

IPMS 2000 DETAILS.DOC

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