Application of Project Definition Rating

Index For Pre-Bid Risk Assessment

 Problem Statement
• As we know that an EPC project duration
generally lasts for at least 2 to 3 years. For
such large projects proper project planning is
must. If there is any loophole or poor planning
then it may lead to project failure and may
costs for additional time period, thus
increasing project cost. Hence there is need to
assess the project planning and find out the
risks included.
 Aim & Objective
• Aim: To learn the characteristic study of PDRI for
Industrial project by examining the viability of
PDRI and by conducting the analytical study to
identify risk involved in project.
• Objectives:
1. To understand the characteristics and structure
of PDRI
2. Analytical study of proposed live industrial
project by PDRI tool
 Literature Review
• Yu-Ren Wang, G. Edward Gibson (2008)
– Presented a paper on A study of project planning and
project sucess using ANN and regression models for
predicting cost and schedule growth.
– Their research aimed towards investigating relationship
between pre – project planning and project success.
• Evan Bingham, G. Edward Gibson (2016)
– Developed PDRI for infrastructure projects, which can
be used to identify and address the issues
systematically and in a structured manner.
Influence and Expenditure Curve for project
life cycle
 What is PDRI ?
• PDRI is a risk management tool that can help a
pre-project planning team evaluate and
measure project scope definition risk
elements and then develop mitigation plans.
• Front End Planning:
 Structure of PDRI
1. Basis of project decision – the business
objectives and drivers
2. Basis of design – processes and technical
information required
3. Execution approach – for executing the
project construction and closeout
 Methodology
1. Understanding the need and objective of project
2. Rate elements based on their level of definition
on the scale of 1-5
3. Identify pre-assigned weights for the respective
ratings
4. Add the weights of each section to get PDRI score
5. Identify scope elements with higher PDRI scores,
which may act as potential risk factors
 PDRI Definition Levels
0 = Not Applicable
1 = Complete Definition
2 = Minor Deficiencies
3 = Some Deficiencies
4 = Major Deficiencies
5 = Incomplete or Poor Definition
PDRI Element Assessment
 Conclusion
• The success of a project is never assured, but its risk
of failure or under-performance can often be
reduced with proper planning and implementation of
proven procedures as the PDRI demonstrates.
• PDRI tool is designed to control and minimize project
risk at the early stages where value can be positively
influenced the most with minimal cost. Thus we can
say that, PDRI is an excellent method of providing
the necessary scope definition to help assure better
project performance.