W5.1_Ocharlie_NORSOK Z-014 codes

Problem definition

NORSOK Z-014 recognised as Standard Cost Coding System (SCCS) presents a system for coding cost and weight estimates and data collection and collating.

NORSOK Z-014 comprises 3 sets of complementary sub-coding system. Using the Jean-Yves Moine`s 3D WBS theory, are the 3 coding systems distinct and independent?

Feasible alternatives

Jean-Yves Moine developed a theory which classifies WBS in 3D model;

Areas (GBS, Geographical Breakdown Structure) – Where the work is done

Products (PBS, Product Breakdown Structure), work components – What is being done?

Activities (ABS, Activity Breakdown Structure), How is it being done

This is depicted in fig. 1 below

fig. 1

 

Jean-Yves explains that there are 3 dimensions that describe the work seen like one cube in 3D. One time schedule tasks are the little cubes inside the WBS cube. For instance in the fabrication project, we construct/install (ABS) skids, piping (PBS) onshore/offshore (GBS).

Jean-Yves surmises thus: WBS = GBS x PBS x ABS

WBS is a crossing between the 3 breakdown structures. 

Develop the outcome of each alternative

NORSOK Z 014 comprises 3 sets of complementary sub-coding system namely;

Physical Breakdown Structure PBS which defines the physical/functional components of a project

Standard Activity Breakdown SAB which defines the phases or timescale during which activities occur

Code of Resources COR classifies the complete scale of resources involved in the project.

 

Selection of criteria

In the fabrication project, Jean-Yves opins that fabrication (ABS) of spools, structures, supports (PBS) is done somewhere (GBS). Consider fig. 2

fig. 2

The project is executed in 2 zones onshore(GBS) and offshore (GBS) to generate products (PBS) through various activities (ABS). In Zone 1 onshore piping spools (Product #1.1) and  Structural skid (Product #1.2) are produced through fitting (Activity #1.2.1) and welding (Activity #1.2.2).

Jean-Yves Moine developed the equation

WBS = GBS x PBS x ABS

Thus for the above instance

Onshore – pipe spools – fitting/welding

Each branch of the WBS is a task and the link is as above.   

Analysis of alternatives

The 3D WBS theory identifies 3 main dimensions that identify the work: the zones (GBS), the Products (PBS) and the activity (ABS).

NORSOK Z-014 identifies 3 cost coding systems: the Phase or time scale (SAB), the Physical/Functional components (PBS) and Code of resources (COR).   

The Phase is location the products (physical/functional components) are executed with various resources employed in the activities.  Thus COR are the various cost elements expended in the activities (ABS) to generate the products (PBS) during the SAB (GBS)  

From WBS = GBS x PBS x ABS

We have WBS = SAB x PBS x COR

Onshore – pipe spools – resource costs

Resources generate spools in a location

Selection of preferred alternative

The analysis above shows that the 3 NORSOK Z-014 codes are compatible with the 3D model fig. 3 

fig. 3

The 3 dimensions are not distinct and independent as activity can only happen when there is something to produce and this has to be performed in a location or time scale.

Resources are employed to produce functional components in a location or at given project phase.

Thus the 3 NORSOK Z 014 codes are complementary

Performance monitoring and evaluation

There are interfaces between the 3 codes which run in the same time as resources are deployed to make components in a project phase.

References

Jean-Yves Moine (2012). 3D WBS model. (online). Available at http:3D-wbs.blogspot.fr {last Accessed 14/12/2012}

Z-014 Standard Cost Coding Systems (SCCS) (Rev. 2 May 2012)

Retrieved from

www.standard.no/en/sectors/.../NORSOK.../Z.../Z-014

Humphreys, G. C. (2011). Definition of Scope, Work Breakdown Structure (WBS) and Dictionary, Project Management Using Earned Value (2^nd ed.), (PP. 45-58) CA, Humphreys & Associates Inc.

Hollman, J.K. (Ed}. (2012). ,  Plan Project Scope and Execution Strategy development, Total Cost Management Framework. (PP. 147-150) WV, AACE International