[KNPC PROJECT METHODOLOGY HANDBOOK]

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2014

[

KNPC PROJECT METHODOLOGY

HANDBOOK

]

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Reviews and Approvals # 1 Date 12 March 2014 Description KNPC Project Methodology Rev 1 Prepared By A/Team Leader -Program Management Reviewed By Management Support Approved By

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Plannin~

J?..ocal Marketing

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KNPC TOP MANANEMENT

DECLARATION

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Declaration of Commitment

We are committed to transform KNPC into world class organization through

adopting best practices and transparent business process.

We are proud to publish the KNPC Project Methodology Handbook Rev 1 and urge

all the employees to utilize for managing their projects from initiation to operation

stages.

A

~hazi

AI-Mutairi

Chief Executive Officer

Hatem AI-Awadhi Deputy CEO-Finance & Admin. Affairs Deputy CEO-Projects

Khaled S. AI-Asousi Mutlaq R. AI-Azmi

Deputy CEO-Support Services DepLty CEO-Shuaiba Refinery

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KNPC PROJECT METHODOLOGY HANDBOOK

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Sl # DESCRIPTION PAGES

Introduction

1)

KNPC Project Methodology Tools/Templates

A. Project Management Tools/Templates

A1. Study Proposal Form 17

A2. Portfolio Template 26

A3. Benefit Tracking Template 33

A4. Project Charter 46

A5. Work Plan 53

A6. Resource Plan 55

A7. Project Status Reporting 57

A8. Risk Management Plan 62

A9. Issue Management Plan 74

A10. Project Dash Board 79

A11. Change Request 82

A12. Study Stage Closure Report 85

A13. Design Stage Closure Report 89

A14. Implement Stage Closure Report 93

A15. Project Stage Closure Report 97

B. Change Management Tools/Templates

B1. Stakeholder Profile 101

B2. Stakeholder Expectation Matrix 103

B3. Change Impact Assessment 105

B4. Change Readiness Assessment 107

B5. Communication Strategy 109

B6. Communication Plan 116

B7. Training needs Assessment 118

B8. Training & Performance Support Strategy 122

B9. Training & Deployment Plan 128

B10. Training & Performance Support Curriculum Design 131

B11. Training & Performance Support Standards 135

B12. Training Evaluation Feedback Tool 151

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Sl # DESCRIPTION PAGES

Introduction

2)

KNPC Project Methodology Guidelines

C. Project Management Tools/Templates

C1. Study Proposal 158 C2. Project Charter 165 C3. Work Plan 170 C4. Resource Plan 174 C5. Status Reporting 179 C6. Risk Management 183 C7. Issue Management 190 C8. Change Control 194

C9. Project Stage Closure Report 198

D. Change Management Tools/Templates

D1. Stakeholder Profile 203

D2. Stakeholder Expectation Matrix 211

D3. Change Impact Assessment 223

D4. Change Readiness Assessment 231

D5. Communication Strategy 243

D6. Communication Plan 253

D7. Communication Material 258

D8. Training needs Assessment 266

D9. Training & Performance Support Strategy 271

D10. Training & Deployment Plan 280

D11. Training & Performance Support Curriculum Design 284

D12. Training & Performance Support Standards 288

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KNPC PROJECT METHODOLOGY (KPM)

Overview

• The KNPC Project Methodology provides a structured framework for planning,

mobilizing, and managing projects in a consistent, disciplined manner. The

methodology consists of a structured toolset focused on improving the delivery of

business capabilities at KNPC by providing the organization with a standard,

transparent process for managing projects from initiation to operation. The KNPC

Project Methodology aims at improving project execution through the inclusion of

both project management and change management components.

• The KNPC Project Methodology is considered as general guidelines. The

procedure/steps to be followed by all departments for the project approvals /

implementation shall be as per the latest version of KNPC Project Control

Procedure (KPCP)

• The KNPC Project Methodology consists of five Stage Gates containing structured

activities organized by five work streams. Stages are distinct phases of

deliverables, techniques, and processes carried out in succession around critical

decisions across the project lifecycle. Each stage is governed by a Stage Gate. Stage

Gates are checkpoints with standard decision criteria that determine a project’s

readiness. The five stages, work streams and stage gates are as shown below:

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1. - IDEA STAGE

The objective of the Idea stage is to develop a business concept into a clear scope of work to determine overall project feasibility and alignment with KNPC objectives. The key input to the Idea stage is a raw idea for a new initiative that aims to solve a business challenge facing KNPC.

 Activities

• The raw idea for a new initiative is charted down in the Project Proposal to assess the projects ability to generate its expected value in the long term and ensure alignment with KNPC strategic objectives.

• Identify the key stakeholders and assess the project with decision makers, major influencers and target users maintained in the form of Stakeholder Profile.

• Portfolio Template & Benefit Tracking Templates are developed to justify the projects required investments in terms of achievable benefits.

 Outcome

• High level understanding of proposed of project scope, timelines, cost and expected business outcomes is carried out with stakeholder who will influence or be impacted by the project.

• The initiatives are filtered and reviewed for alignment with KNPC strategic objectives, whether the idea is beneficial for KNPC and its initiated at the proper time and further prioritization required.

 Stage Gate Review

•

The Idea stage gate review assessment criteria enable the Executive Portfolio Management Committee (EPMC) to determine the appropriateness of progression to Study stage. For all business study initiatives MS Business Study Initiative Assessment criteria and format are pursued. The result of the stage gate assessment will to “ Terminate / Temporarily Deferred / Approve progression to Study stage “

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2. STUDY STAGE

The objective of the Study stage is to refine the scope of the solution that will be implemented and lay the groundwork for a successful implementation.

Activities

• The key inputs that is the EPMC authorization to progress and the completed Idea stage deliverables are used as the basis to refine the project scope into a Project Charter and project schedule into Work and Resource plans.

• Risk Management Plan initiated to assess managing project risk and Change Impact Assessment carried out to identify the impact on various areas of the organization.

• Stakeholder Expectation Matrix is maintained for understanding the expectation of stakeholder groups and Communication Strategy defined for engaging the affected stakeholders.

• Training Needs and Assessment is determined to train required personnel to fill competency gap and Training and Performance Support Strategy is defined for creation and delivery of appropriate training and performance support to affected stakeholders.

• Deliverables to be created and updated as per the attached KPM overall deliverable list for relevant stages.

Outcome

• A defined project with clear justification, scope, timeline including key tasks, target dates & milestones and project cost highlighting resource requirements.

• Process for managing the project during the Design and Implementation stages.

• Strategy for communicating to stakeholder and building their skill level.  Stage Gate Review

• The Study Stage Gate Review assessment criteria enable the KNPC Executive Portfolio Management Committee to determine the appropriateness of progression to the Design stage. The result of the stage gate assessment will be to “Project is progression-ready but deferred pending improved timing and/or priority / Project is returned for further refinement / Initiative is dropped permanently / Approve progression to Design stage”.

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3 DESIGN STAGE

The objective of the Design stage is to define the implementation details needed for successfully deploying the project solution. The key inputs to the Design stage are the KNPC Executive Portfolio Management Committee’s authorization to progress from the Study Stage Gate Review and the completed Study stage deliverables

 Activities

• Design and refine the project solution, schedule and resource plan.

• Develop the communication plan for execution of all project communication activities and materials for delivering important project communication.

• Schedule a training deployment plan to track the project training solution and performance support plan which defines course structure and describes content for training and performance support.

• Provide standards for use in development of training and/or performance support materials.

• Deliverables to be created and updated as per the attached KPM overall deliverable list for relevant stages

 Outcome

• A well-defined project with clear justification, scope, timeline and budget.

• Process for managing the project during the Design and Implementation stages.

• A strategy for communicating to stakeholders and building their skill levels  Stage Gate Review

• The Design Stage Gate Review Criteria provide the KNPC Executive Portfolio Management Committee’s with a checklist for assessing the project’s progress and readiness to advance to the Implement stage. The result of the stage gate assessment will be to “Project temporarily deferred / Project terminated / Approve progression to Implementation stage” thereby Finance release fund for Implementation Stage.

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4. – IMPLEMENT STAGE

The objective of the Implementation stage is to build and deploy the solution across the organization in a structured manner. The key inputs to the Implement stage are the KNPC Executive Portfolio Management Committee’s authorization to progress from the Design Stage Gate Review and the completed Design stage deliverables.

 Activities

• Build and test the solution and roll it out across the organization.

• Continue delivering and refining communications based on feedback from the stakeholders

• Provide captured feedback from training audience to assess effectiveness and determine if additional actions are required

• Deliver training content and job aids to target audiences in support of necessary competency building and confirm stakeholder understanding through feedback

 Outcome

• A well-defined Project with clear justification, scope, timeline and budget. • Solution built and operating in the business.

• Stakeholders capable of operating the solution

• Deliverables to be created and updated as per the attached KPM overall deliverable list for relevant stages

 Stage Gate Review

• The Implement Gate Review Criteria provide the KNPC Executive Portfolio Management Committee’s with a checklist for assessing the effectiveness of the deployment and readiness for Monitor & Operate stage. The result of the stage gate assessment will be to “Additional Implementation Activities required/ Program terminated / Approve progression to Monitor & Control stage” thereby Finance to release fund for this Stage.

PM PM PM PM PM PM C&E C&E T&CD T&CD T&CD PM

Legend Deliverable Created Deliverable Updated

Legend of Work Streams Project Management Communications & Engagement T&CD_{Training & Capability Development}

KNPC PROJECT METHODOLOGY : IMPLEMENT STAGE DELIVERABLE LIST - WORK STREAM WISE

STAGES DELIVERABLES IMPLEMENT Po rt fo lio T em pl at e St ak eh ol de r P ro fil e Pro je ct C ha rt er W ork P la n Re so urc e Pl an Im pl em en t S ta ge Cl os ure Re po rt D as hb oa rd PM PM C&E

All templates and Guidelines are available in MS Department website

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5. OPERATE & MONITOR STAGE

The objective of the Operate & Monitor stage is to realize the benefits from implementing the solution and transition to a permanent support function. The key inputs to the Monitor & Operate stage are Steering Committee authorization to progress from the Implement Stage Gate Review and the completed Implement stage deliverables.

 Activities

• Conduct project closeout with project team members and key stakeholders

• Measure benefits and compare against expected benefits through Support Transition Report & Project Closure Report.

 Outcome

• Project solution part of day to day business.

• Understanding of whether project objectives and benefits were realized.  Stage Gate Review

• The Monitor and Operate Gate Review Criteria provide the Steering Committee with an understanding of achieved benefits and the ability to declare the project closed.

PM C&E C&E C&E PM

Legend Deliverable Created Deliverable Updated

Legend of Work Streams PM Project Management C&E Communications & Engagement T&CDTraining & Capability Development

All templates and Guidelines are available in MS Department website

KNPC PROJECT METHODOLOGY : OPERATE & MONITOR STAGE DELIVERABLE LIST - WORK STREAM WISE

STAGES DELIVERABLES

OPERATE &

MONITOR Benefit Tracking

Template Communication Plan

Communication Materials

Support Transition

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1)

Project Methodology Tools

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Enter Project Name

A1. Study Proposal Form/Template

1 – Technical

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Technical Study Proposal – Tentative

1) Technical Study Details and Signatories Technical Study Title:

Initiating Department:

Study Initiator: Study Proposal No:

Sponsor: Category:

Request for Approval for New Technical Study Proposal Feasibility FEED Combined Feasibility & FEED Signed : Department Manager : Date :

Signed : Concerned DCEO : Date: Assessment by Corporate Planning (Attach completed assessment form)

Signed : Manager, Corporate Planning : Date :

Executive Portfolio Management Committee review required? Yes: □ No: □

In-principle Approval for Technical Study Proposal

Idea Stage Gate Review conducted? Yes: □ No : □

Idea Stage Gate Review Outcome: Approved: □ Cancelled: □ Deferred: □

Remarks:

Sponsoring DCEO :______________________ Date:_____________________

2) Define Technical Study Purpose Study Objective

Business Challenge

Study Scope

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Technical Study Proposal – Tentative (contd.)

3) Alignment with KNPC Strategic Objectives and Balanced Scorecard KNPC Strategic Objectives Supported

KNPC Balanced Scorecard Measures Impacted

Initiating Department/Refinery Measures Technical Study Impact

4) Identify Estimated Cost and Technical Study Resource Requirements Estimated Cost

Estimated Cost for Study Stage (KD)

Estimated Total Project Cost (KD) – If Available Estimated Phasing for Study Stage

Year Amount For Study Stage

Year 1 Year … Total

Study Stage Duration and Execution Schedule (provide attachment, if required)

Duration

Execution Milestones Deliverables

EIA Required? Yes: □ No : □ QRA Required? Yes: □ No : □ Estimated Technical Study Team Resource Requirements (provide attachment, if required)

Source Number (Part Time/Full Time)

KNPC Department / KPC or Other Subsidiary

Skill / Capability Requirements

Staff Members

External N/A

5) Consequences and Key Assumptions Consequences if the proposal is not adopted

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Technical Study Proposal – Final

1) Technical Study Details and Signatories Technical Study Title:

Initiating Department:

Study Initiator: Study Proposal No:

Sponsor: Category:

Confirm Technical Study Proposal: Feasibility FEED Combined Feasibility & FEED

Signed : Department Manager Date : Signed : Concerned DCEO : Date :

Review by Corporate Planning

Signed : Manager, Corporate Planning : Date :

Review by Finance

Signed : Manager, Finance : Date :

Final Approval for Technical Study Proposal

Signed : CEO : Date : Remarks:

2) Define Technical Study Purpose

Study Objective

Study Scope

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Technical Study Proposal – Final (contd.)

3) Alignment with KNPC Strategic Objectives and Balanced Scorecard

KNPC Strategic Objectives Supported

Initiating Department/Refinery Measures Technical Study Impact

4) Identify Estimated Cost and Technical Study Resource Requirements Estimated Cost

Estimated Cost for Study Stage (KD)

Estimated Total Project Cost (KD) – If Available Estimated Phasing for Study Stage

Year Amount For Study Stage Year 1

Year … Total

Study Stage Duration and Execution Schedule (provide attachment, if required)

Duration

Execution Milestones Deliverables

EIA Required? Yes: □ No : □ QRA Required? Yes: □ No : □ Estimated Technical Study Team Resource Requirements (provide attachment, if required)

Source Number (Part Time/Full Time)

KNPC Department / KPC or Other Subsidiary

Skill / Capability Requirements

Staff Members External

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Business Study Proposal – Tentative

1) Project Details and Signatories

Project Title: Initiating

Department: Submission Date:

Project Initiator: Study Proposal No:

Sponsor:

Request for Approval for Business Study

Signed : Department Manager : Date :

Review by MS Department (Attach completed assessment form)

Signed : Manager, MS Department : Date :

Executive Portfolio Management Committee review required? Yes: □ (strategic projects) No: □ (non-strategic projects)

In-principle Approval for Business Study

Stage Gate Review conducted? Yes: □ No : □

Stage Gate Review outcome: Approved: □ Cancelled: □ Deferred: □

Remarks:

Sponsoring DCEO :______________________ Date:_____________________

2) Define Project Purpose

Preliminary Project Scope Statement

High-Level Approach

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Business Study Proposal – Tentative (contd.)

3) Identify Business Impact

Organization Units Impacted (Department / Level) Description of Impact

Business Processes Impacted Description of Impact

KNPC Strategic Objectives supported

Initiating Department/Refinery Measures Project Impact

5) Identify Estimated Cost and Project Resource Requirements Estimated Cost

Estimated Cost for Study Stage (KD) Estimated Total Project Cost (KD) Estimated Phasing

Year Amount

Estimated Project Team Resource Requirements

Source Number (Part Time/Full Time) Skill / Capability Requirements

Staff Members

External

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Business Study Proposal – Final

1) Project Details and Signatories

Project Title:

Initiating

Department: Submission Date:

Project Initiator: Study Proposal No: Sponsor:

Confirm Study Proposal

Signed : Concerned DCEO : Date :

Review by MS Department

Signed : Manager, MS Department : Date :

Review by Finance

Signed : Manager, Finance : Date :

Final Approval for Study Project

Signed : CEO : Date :

Remarks:

2) Define Project Purpose

Preliminary Project Scope Statement

High-Level Approach

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Business Study Proposal – Final (contd.)

3) Identify Business Impact

Organization Units Impacted (Department / Level) Description of Impact

Business Processes Impacted Description of Impact

KNPC Strategic Objectives supported

Initiating Department/Refinery Measures Project Impact

5) Identify Estimated Cost and Project Resource Requirements Estimated Cost

Estimated Cost for Study Stage (KD) Estimated Total Project Cost (KD) Estimated Phasing

Year Amount

Estimated Project Team Resource Requirements

Source Number (Part Time/Full Time) Skill / Capability Requirements

Staff Members

External

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Enter Project Name

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Step 1:

Step 2: Filling out the Template:

Step 3:

Step 4: Email completed template to MSD at [email protected] and [email protected]

The following fields are MANDATORY and must be filled-out by the user.

The following fields are automatically filled-out by the template.

• All financial numbers MUST be entered in thousands Kuwaiti Dinar (e.g. 150=150,000).

• All figures for Human Resources required for the project must be entered as Full-Time Equivalent (FTE). • It is the repsonsibility of the individual filling out this template to ensure that all financial numbers are accurate and in accordance with Corporate Planning guidelines - this may require meeting with Corporate Planning for discussion and validation of financial numbers (costs, benefits, NPV, IRR etc.).

KNPC Portfolio Template

User Guide

Please read the instructions below before starting to fill-out the template

Guidelines when filling out the template

The following fields indicate additional information or comments to be filled-out by user if necessary.

Ensure you are using the latest and correct version of the KNPC Portfolio Template by visiting or by directly contacting the MSD at extension 84502.

This is Version 5.0 of the KNPC Portfolio Template

the Management Support (MSD) Website (formerly known as CTO)

• A detailed step-by-step user guide is available to support you in completing this template. This can be downloaded from MSD website provided.

http://portal.knpc.net/cto/

Save the template as an Excel 97-2003 Workbook in the following naming format:

PT_Project Name_Date template was filled out (e.g. PT_Replace HydroCracker_29September2010)

• Not all information required may be available when filling out the template, especially for IDEA or STUDY Stage projects. Fill out all the information currently available and provide best estimates for the other fields.

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The KNPC Portfolio Template

Version 5.0

* Note these fields are mandatory

Categorization Project Description

Template Filled By Integrated Value Chain? Project Funding?

Project Ownership

Project Initiator Sponsor

Comments Project Stages Stage end date

1 - IDEA

Investment Type

Productivity investments drive short-term profitability and utilization improvements within existing assets. Such projects focus on generating immediate benefits, financial returns and benefitting from windows of opportunity.

Innovation investments test new

opportunities to demonstrate productivity improvement or growth potential in areas of strategic importance. The biggest focus is on strategic alignment and building foundations for the future.

Growth investments relate to an increase in the scale of the business without improving the underlying performance of the asset. These investments are mainly evaluated on the financial benefits that are generated, and whether they are aligned to strategy.

4 - IMPLEMENT

Maintain Position investments are

necessary to maintain the functionality and performance levels of existing assets. The focus is on protecting the value currently generated. Such projects are evaluated mainly by how much loss is avoided and whether time is a critical factor.

Project Lifecycle: PCP Stages

3 - DESIGN

5 - MONITOR & OPERATE

Current Project Stage

2 - STUDY

National / Critical / Operational?

Data as of: Project Schedule Project Start Date: Project End Date:

Project Name: Project Type: Department: Regulatory Requirement? Directorate: General information Is project mandatory? Project Manager

Program Name (if available): Project Number:

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P ro je ct n u m b er : V er si o n 5 .0 P ro je ct n am e: N o te s & c o m m en ts (D o cu m en t a n y as su m p tio n s m ad e in c o m p le tin g th is te m p la te r el at ed to th e fin an ci al s (p ro je ct e co n o m ic s, ti m el in es , r es o u rc es e tc .)

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Enter Project Name

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Project Title:

Location:

Project Category:

Project Sub-Category:

Investment Type:

Project Mandated By:

Reason for mandate

Sponsoring Department:

Project Stage:

Budget Reference No.

Submission Date:

KNPC Project Business Case

Project Information

This sheet of the template should be used to provide general information about the project, and needs to be submitted each time the 'Business Case' is submitted to MSD.

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Idea Stage

# 1 2 3 4 5 6

Corresponding Business Challenge(s) that the Project addresses:

1.1 Please define the project’s business objectives in relation to specific business challenges. (This information should already have been provided as part of DCEO sign-off).

Project Objectives

Alignment of Project Objectives to Strategic Objectives

Project Business Objective Project Business Objective(s)

1.2 Please state which KNPC strategic objectives or ‘Balanced Scorecard’ measures, if any, are supported by the projects business objectives and how. All entries should be consistent with those stated in the corresponding Project Charter for the project.

Purpose of this stage

To understand business objectives of project, check strategic alignment to portfolio, and provide indicative project costs and benefits.

Trigger points for starting this stage

When the ‘Idea Initiator’ starts to develop the ‘Study Proposal'

Corresponding Strategic Objective or Balanced Scorecard Measure

Information you will require to complete this stage

The Objectives of the proposed project and how they align to KNPC strategic objectives The business challenges the proposed project addresses

A summary of the benefits that the proposed project intends to deliver

KNPC Project Business Case

Idea Stage - Identify Business Objectives

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Idea Stage

1 2 3 4 5 6 # Value Category 1 2 3 4 5 6 Type 0 0 0 0 Project Benefit(s)

1.4 Please state the Type of the benefit listed above and the Value category it aligns to:

Notes for completion:

A benefit is an improvement resulting from an outcome which is perceived as positive by stakeholders. It normally has a tangible value expressed in either financial or non-financial terms. For example:

 A financial benefit could be 'increase in revenue by KD 500 million through increased capacity utilisation', where the KPI is the increase in revenue.

 A non-financial benefit is 'reduction in emission of sulfur by 2%', where the KPI is percentage sulfur emission.

Benefit

The value category represents the way in which the project intends to provide benefits to KNPC.These drivers come from the top level of the 'KNPC Value Map' according to which projects can drive value to KNPC by providing 'Revenue Growth', helping achieve 'Cost Efficiency' or 'Asset Efficiency' or by helping to better manage the internal or external 'Expectaiton' of

stakeholders such as KNPC Management, Employees, the State of Kuwait, etc...

Please refer to the KNPC 'Portoflio Prioritisation Handbook', available at the CTO Intranet site, for further details if required.

1.3 Based upon the Project’s agreed business objectives, please summarise the benefits that the proposed and the Project intends to deliver.

0 0

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Study Stage

# 1 2 3 4 5 6 7 8

Study Stage - Refine Business Case

Value Category Benefit

KNPC Project Business Case

To provide a detailed summary of project benefits and costs together with all assumptions, dependencies and risks that may impact them

When the PRC / EPMC has approved the ‘Study Proposal’ When the first draft of the Project Study document is available

2) Costs

A summary of the annual costs required to deliver this project

A summary of the key assumptions, dependencies & risks that could further impact the costs required to deliver this project A summary of the expected financial returns from delivering this project

Project Benefits Information you will require to complete this stage

1) Benefits

Information about any changes to the benefits identified in the Idea Stage A quantitative summary of the intended project benefits

A summary of when the intended benefits will be realised

A summary of the key assumptions, dependencies & risks that exist in delivering the benefits A summary of how you have benchmarked the above benefits data against other projects

2.1 Summarised in the table below are the benefits that were entered in the Idea Stage. Please verify and update these benefits and add new benefits when applicable.

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Study Stage

1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6

* Please note the risks in order of criticality from most critical to least critical Key Risks – to achieve these benefits:

For Example: "There is a risk that if x happens, y will result"

Dependencies – to achieve these benefits, the following must be in place: For Example: "x must be in place by y date"

For Example: "It is assumed that x is available on time"

Benefits Estimation: Key Assumptions, Dependencies & Key Risks

2.4 Describe the relevant key assumptions, dependencies & key risks used in generating the benefit estimates above:

 An assumption is something that is currently unknown and has been assumed to be available or in place to deliver the benefit

 A dependency is something that must be in place in order to deliver the benefit

 A Risk is an event that could happen with an outcome that may have a negative impact

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Study Stage

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Total

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Cost Estimation: Assumptions, Dependencies & Key Risks

1 2 3 4 5 6 1 2 3 4 5 6 1 2 3 4 5 6

Notes for Completion:

Please enter absolute values only. i.e. Enter only the total cost that will be incurred during that year. Do not add them to previous years. Please note this information will form the basis of your early business case and will be carried through to Design Stage.

Indicative confidence levels here should be P70 - see below for detailing assumptions, dependencies and risks associated with these numbers.

For Example: "x must be in place by y date" Contracts

Contingency

For Example: "There is a risk that if x happens, y will result" Total Cumulative Costs (KD’000)

Key Risks – to achieve these costs:

Dependencies – to achieve these costs, the following must be in place: Assumptions – to achieve these costs, it is assumed that:

For Example: "It is assumed that the cost of x will be y at the time" Hardware Software Material Labour Other Total Costs (KD’000) Project Costs Summary

2.5 In the table below, please summarize the annual cost break-down for the project.

For ease of information you may use estimates you have previously recorded in the KNPC 'Portoflio Template' Please note that 'Year 1' respresents the year when the 'Study Stage' starts.

Project Costs (KD '000) Type

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Study Stage

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

0 0 0 0 0 0 0 0 0 0

2.8 Please provide evidence of similar Projects or activities that have been successful at KNPC to support the recommendation. For additional comparative support, outline examples where other similar Projects have been performed successfully in the Gulf region and/or similar Industries.

Internal Rate of Return (IRR) Net Present Value (NPV) Discounted Payback Payback from Startup

Expected Financial Returns from the Project

Financial Indicator

0 0

Please enter the values below using information from the KNPC 'Portfolio Template' for this project Total Costs of the Project

Total Benefits

Value

For Example: "emission reduciton achieved by desulpherisation project done earlier was 2%" Optional: Benchmark against Similar Projects

2.7 The table below summarises total project costs and benefits using the information provided by the user in the tables above. The financial indicators are calculated using 'Corporate Planning' guidelines and are availbe in either the project's 'Economic Evaluation' sheet filled with Corporate Planning guidance or in the 'Portfolio Template'. Please obtain the figures from there and fill the financial indicators below. Value ('000 of KD) 0 0 0 0 0 1 1 1 1 1 1 0 1 2 3 4 5 6 7 8 9 10 11 K D ('0 0 0 ) Year Cost-Benefit Profile

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Design Stage

1 2 3 4 5 6 7 8

Benefits Re-validation

3.1 Listed below is the benefits summary table entered during the 'Study Stage'. Please verify and update (if applicable) the benefits along with their financial values. Please note that 'Year 1' respresents the year when the 'Study Stage' starts.

Design Stage - Finalize Business Case & Benefit Plan Realisation

To finalise the business case before it is presented to leadership to make the decision on if the project is approved for design/implementation

# Type Benefit

Project Costs (KD '000)

Costs Re-validation

3.2 Listed below is the costs summary entered during the 'Study Stage'. Please verify and update (if applicable) the costs of the project. Please note that 'Year 1' respresents the year when the 'Study Stage' starts.

Financial Benefits (‘000s of KD) - Over the Realization Period

Type Hardware

Total Benefits* (KD '000) Value Category

Total Cumulative Benefits* (KD '000)

Software Material Labour Contracts Contingency Other Total Costs (KD’000) Total Cumulative Costs (KD’000)

KNPC Project Business Case

Once the PRC / EPMC has approved the ‘Project Study’ When the first draft of the Project Design document is available

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Design Stage

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

0 0 0 0 0 0 0 0 0 0

Total Benefits

As per 'Study Stage' As per 'Design Stage'

Discounted Payback Payback from Startup

Financial Indicator Total Costs of the Project

Internal Rate of Return (IRR) Net Present Value (NPV)

Value ('000 of KD)

As per 'Study Stage'

Value

As per 'Design Stage'

Financial Measures

3.3 The table below summarises total project costs and benefits using the information provided by the user in the tables above.

The financial indicators are calculated using 'Corporate Planning' guidelines and are availbe in either the project's 'Economic Evaluation' sheet filled with Corporate Planning guidance or in the 'Portfolio Template'. Please obtain the figures from there and fill the financial indicators below.

Please obtain the values of the financial measures below from the Portfolio Template

0 0 0 0 0 1 1 1 1 1 1 0 1 2 3 4 5 6 7 8 9 10 11 K D ( '0 0 0 ) Year

Cost-Benefit Profile

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Design Stage

From (M/Y) To (M/Y) 1 2 3 4 5 6 7 8

Please summarise the potential approaches for mitigating any risk that could impact the indicated benefits being realized.

Risks to Benefits Realisation

Proposed Mitigation Description of Risk

Notes for completion:

 For financial benefits the KPI will always be revenue increase or money saved, for example through the implementation of the project KNPC will obtain additional revenue of KD 2 Billion. Non-financial KPIs can be of a broad variety ranging from HSE measures such as 'Reduced Accidents' to operaitonal measures such as 'Number of Days for Processing Supplier Invoices'.

 The method for measuring the benefit should specify what formula will be used to calculate the KPI, whether the data will be collected manually or from an available information system or measuring device.

Please use additional pages to provide details for each method, along with any calculation assumptions, that will be used to measure the benefits.

Measure ment Frequenc Responsi bility KPI Measure ment Method* Benefit

For each benefit, please summarise the approach of how to measure each benefit during the 'Monitor & Operate Stage'.

Benefits Realisation - Approach

Realisation Period #

Benefits Realisation Planning

3.4 Please summarise the intended benefits realisation plan for the timeframes and responsibilities for measuring and monitoring the benefits realisation during the 'Monitor & Operate Stage'.

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Enter Project Name

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Project Title:

<Insert Project Title>

Sponsoring Department:

<Insert Project Sponsoring Department>

Sponsor:

<Insert Project Sponsor Name and Signature>

Reviewed By:

<Insert Project Lead and Signature>

Prepared By:

<Insert Document Preparer and Signature>

Prepared Date:

<Insert Date>

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1 Executive Summary

Provide information regarding the project’s background and briefly summarize that the project is all about, where the project will be taking the organization, and what the benefits of the project will be.

2 Define Project Business Objectives

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3 Provide Project Overview

3.1 Project Scope

Clearly define the project scope by identifying the content areas that are in- and out- of scope.

In Scope

Out of Scope

3.2

Project Approach

Describe in specific terms the approach for how the project will achieve its business objectives, including an identification of the nature of the proposed project solution (i.e. procedural, skill, technology, etc.).

3.3 Project Milestones

In this section, identify the estimated start date and duration of each project milestone.

Key Milestones Estimated Start Date Estimated Duration

3.4 Project Deliverables

List and describe the project deliverables and describe acceptance criteria for each.

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3.5 Project Dependencies

Identify the key dependencies between project milestones. In addition, include any external dependencies that the project has on any other projects or processes within the organization.

Dependency Target Date Responsibility

3.6 Assumptions

List and describe the assumptions made in the decision to charter this project.

4 Identify the Business Impact

4.1 Organizational Unit Impact

Determine the impact of the proposed project on specific segments of the workforce by organization level and department/division.

Organization Unit

Department/ Divisions Organization Level Project Impact on Workforce

4.2 Business Process Impact

Describe the overall business impact of any proposed new business processes.

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5 Define the Project Governance

5.1 Project Lead

Name the Project Lead and define his or her role and responsibility over the project. Describe the project lead’s level of authority and how they will manage dependencies with other projects.

5.2 Project Sponsor

Name the Project Sponsor. Describe the role that the sponsor will play in approving key project deliverables, establishing project scope, and ensuring project resources needs are fulfilled.

5.3 Steering Committee

Name the project’s Steering Committee. Describe the Steering Committee’s role in providing the project with direction. Outline reporting procedures including expectations regarding frequency and content.

6 Describe the Project Organization

6.1 Organization Chart

Provide a graphic depiction of the proposed project team.

6.2 Roles & Responsibilities

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6.3 Other Resources Required

Provide an estimate for the project’s overall non-human resource requirements. Refer to Project Proposal Guideline for details regarding resource categories.

Description Remarks

7 Additional Information

List the individuals who may be contacted for information regarding the project.

Position Title/Name/Organization Phone E-mail

Project Sponsor Project Originator Proposed Project Manager

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Enter Project Name

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Enter Project Name

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Enter Project Name

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Enter Project Name

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Project Title: <Insert Project Title>

Sponsoring Department: <Insert Project Sponsoring Department>

Sponsor: <Insert Project Sponsor Name and Signature>

Reviewed By: <Insert Project Lead and Signature>

Prepared By: <Insert Document Preparer and Signature>

Prepared Date: <Insert Date>

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1. Risk Management Overview

1.1. Definition

Risk is exposure to a situation that may negatively impact a project at some point in the future. Risk is an inescapable element of any change project and is characterized by the fact that:

 It is at least partially unknown

 It changes with time

 It is manageable, in the sense that intervention and corrective actions can alter its form and degree

 If left untreated, can become an issue which in turn will have a material impact on the project

1.2. Objective

Successful risk identification, analysis, management, and mitigation are critical to the success of all Projects. Project risks, unless reduced or eliminated, constitute a barrier, both real and potential, to the accomplishment of the Project’s established goals and objectives. Risk management therefore, will be critical to the Project’s success in meeting its objectives. Proactive risk management techniques are required to identify, quantify, and mitigate all potential risks to the Project.

The objectives of this Risk Management Approach are to:

 Provide an overview of the need for risk management on this Project

 Provide information on how Project Management intends to use risk management processes and techniques to identify, analyze, mitigate, and manage potential risks to achieve project objectives.

1.3. Scope

This Risk Management Plan provides the framework and process through which the Project management and teams will mitigate risks associated with this Project.

1.4. Distinguishing Between Risks and Issues

An Issue refers to a problem involving a significant choice between two or more alternatives for

an event that is happening now. Risk describes situations that could occur. If it does occur, it would have a significant impact on the project.

2. Risk Management Process Flow

The risk management process consists of four key activities: risk identification, risk formalization, risk monitoring, and risk closure. Refer to Appendix D for a detailed view of the process.

2.1. Identify the risk

In line with KNPC Project Methodology, risk identification is the responsibility of all Project Team Members. When a team member encounters a risk, a Risk Identification Template (See

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Appendix D) must be completed and submitted to the Project’s designated risk coordinator. The form requires a detailed risk description, an initial assessment of the risk’s impact, probability and controllability, and proposed mitigating actions.

2.2. Assess and formalize the risk

The Project’s designated risk coordinator will compile all new risks for presentation at each of the Project’s scheduled status meetings. If the initial risk assessment is deemed critical based on the Risk Assessment Matrix, the Project risk coordinator will immediately present the risk to the Project Lead. Please refer Appendix B for the Risk Assessment Matrix.

At the Project’s regularly scheduled status meetings, the risk coordinator will present the proposed risks to the Project team. Upon completion of discussion of the risk and refinement of its description, the Project Lead will determine to accept or reject the risk. If the risk is accepted, the risk coordinator will enter the risk into the Project’s Risk List, including ownership, priority and next review date.

Refer to the next section for more details regarding risk assessment, including categorizing, assessing responses, and quantifying risks.

2.3.

Monitor and mitigate the risk

The Project team member assigned as the risk owner will be responsible for acting to mitigate the risk. The risk owner will report on the risk status at the risk’s review date

Upon review of the risk, the Project Lead will determine to close or leave the risk open. If the risk remains open, the Project lead can choose to reassess and/or reassign the risk. If the Project Lead determines that the risk requires additional support for mitigation beyond the Project team, it is the responsibility of the Project Lead to escalate the risk.

Please refer to section four of this document for the standard Risk Escalation Procedure, including key considerations and escalation hierarchy.

2.4. Close the risk

Upon implementation of mitigating actions and necessary escalation measures, the Project Lead can close the risk. At this point, the Project risk coordinator should update the risk status in the Project Risk Log.

3. Assessment of Risks

3.1. Categorization of Risks

Risk categorization is achieved by defining characteristic sources of risks. These sources describe the generic areas where specific risks are likely to occur, and formalize the categorization initially performed during Risk Management Planning:

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Cost

Cost-based risks outline the non-achievement of the financial benefits of the Project detailed in the project objectives or key success factors. Typical cost risks include external contractor overspend, additional costs in changing/solving design, application Project, or operational problems.

Schedule

Schedule-based risks focus on the non-achievement of the Project's products or benefits within the specified time frame. Typical schedule-based risks arise from extensions from scope changes, resource unavailability, market opportunities missed, and additional schedule extensions from solving those risks outlined in 'Cost' above.

Technological

Technology-based risks consider the non-achievement of the application specifications and benefits expected. Typical risks include new/non-standard platform technology, integration problems with existing systems, migration problems, performance expectations not achieved, environment complexity and functionality, and system operability.

Operational

Operational-based risks focus on the peripheral organizational and business operational re-engineering changes, arising from the systems development. Typical risks consider both the transitional and the long-term effects of the system's introduction, including the organizational and behavioral change required, the human and physical resource planning, and communication required to facilitate a smooth transition to the new structure.

External

External-based risks consider the 'environmental' factors largely outside of the control of the Project Management, which can directly/indirectly affect the successful delivery of the Project. Typically, risks arising from legislative regulations, legal requirements, and communication to the market, lack of market sophistication, and the strategic direction and priority conflicts of a controlling body, are profiled under this category.

The Cost and Schedule risk sources are known as the risk 'indicators', as they are often the most tangible measure of overall progress towards Project objectives or goals. The Technological, Operational, and External risk sources are referred to as risk 'drivers', as these are the sources of all Project risks, which additionally drive the Cost and Schedule risks.

The recognition that the management of the sources of Technological, Operational, and External risk is inter-related to the management of Cost and Schedule risks is an important link in effectively responding and reporting risk-reducing activities.

3.2. Assessment of Risk Responses

Following specific definitions of the risks above, the most likely overall response to the risk will be decided. This may be an obvious set of actions that annul or limit the risk occurring, or