Navigating the Complex Relationship of the PWP in Advanced Work Packaging (AWP) - PWP by Supplier by Material by Purchase Order

Introduction

In the realm of Advanced Work Packaging (AWP), the Engineering Work Package (EWP) and the Construction Work Package (CWP) exhibit a straightforward 1:1 relationship facilitated by drawings. However, the Procurement Work Package (PWP) introduces unique challenges due to the intricacies of the procurement process. This article explores the factors that complicate the 1:1 relationship between the PWP, EWP, and CWP, and offers practical solutions to effectively manage these complexities. And as a bold proposal, create PWPs by material by supplier instead of maintaining the theorical 1:1 relationship between the EWP and CWP.

Understanding the Complex Relationship

The PWP does not align in a direct 1:1 relationship with either the EWP or the CWP for several reasons:

1. Multiple Objects, Equipment, or Materials: A single drawing in the EWP may encompass various types of objects, equipment, or materials necessary for the project.??
2. Different Suppliers: Objects, materials, or equipment identified in the drawing may require procurement from different suppliers.
3. Varied Production Stages: Even if a single supplier is involved, the fabrication or production of each item may be at different stages, resulting in asynchronous availability.

Illustrative Examples

Consider the following scenarios to illustrate the challenges encountered in the PWP relationship. Let's start with the image below, it shows how an EWP is made from multiple drawings and each drawing will have multiple materials. Then, there will be, in this case, one supplier for each type of material, and one Purchase Order (PO) for each supplier for each material, but the delivery will be made by lots.

Civil Concrete Drawing:?

• Engineering generates a single drawing for a concrete foundation in the EWP.
• Procurement must source concrete, rebar, formwork, and anchor bolts from different suppliers.
• Ensuring timely arrival of all elements is essential for construction crew synchronization.
• Let's analyze the image below. Having understood the previous image, now we can see, that multiple EWPs with multiple drawings will have the same PO and, in this case, two different delivery lots at different timings. Again for the CWP, all the materials have to arrive at the same time.

Piping Drawing:

• A piping drawing, such as an isometric, includes straight pipes, valves, fittings, accessories, and instruments.
• Procurement may need to procure these items from diverse suppliers.
• Discrepancies in the readiness of elements pose risks of delays.

Managing the PWP Relationship

To address the challenges inherent in the PWP relationship with the EWP and CWP, implement the following strategies:

1. Prioritizing Materials from Suppliers:

• ?Conduct comprehensive analysis of material requirements, lead times, and availability.
• ?Prioritize critical items and consider supplier capabilities to ensure timely delivery.

??2. Creating Awareness of Material Importance:

• Foster communication and collaboration among project stakeholders.
• Emphasize the significance of simultaneous availability of materials for specific CWPs.
• Align the actions and decision-making of engineering, procurement, and construction teams.

Implementing Effective Project Management Practices

To effectively manage the PWP relationship, employ the following project management practices:

1.??Organizing PWP by Supplier:

Any material is purchased through a predefined Purchase Order (PO), that sometimes combines all the material for a specific project. Example: One PO for the steel of the whole project. Then, it is impossible to assign the EWPs or the CWPs in a 1:1 relationship.

To solve this, the PWPs have to be assigned, not even to the POs, but to the lots in which that PO will be broken down. In this way, the PWP is mapped to a specific supplier, a specific PO and a specific lot to be delivered on a specific time, aligning the CWP to it.

• Structure the Procurement Work Package (PWP) based on individual suppliers rather than grouping materials by type.
• This approach ensures clear accountability and enables focused communication with each supplier.

Below it the image showing all the relationships between a series of Civil-Concrete EWPs, how are they related to the PWPs (Lots from the POs) and how the materials need to be compiled again from multiple suppliers to fullfil the request of the CWPs

2.??Integrated Planning and Scheduling:

• Utilize comprehensive project management software for collaborative planning and scheduling.
• Incorporate procurement lead times and material availability into project timelines.
• Align the PWP activities with the overall project schedule to ensure timely procurement.

3.??Early Procurement Involvement:

• Engage the procurement team from the early stages of the project to provide input on material availability and constraints.
• Foster collaboration between the engineering and procurement teams to develop a shared understanding of project requirements and constraints.

4.??Supplier Collaboration:

• Cultivate strong relationships with suppliers and involve them in project planning.
• Understand their production capacities, lead times, and potential bottlenecks.
• Collaborate closely with suppliers to align their production schedules with the project's needs, ensuring timely delivery of materials.

5.??Material Tracking and Expediting:

• Establish systems to track material procurement, monitor production progress, and expedite deliveries as required.
• Regularly communicate with suppliers to stay updated on the status of material production and address any potential delays or issues promptly.

6.??Risk Management:

• Conduct comprehensive risk assessments that include procurement-related risks.
• Identify potential bottlenecks, supply chain disruptions, or changes in material availability and develop contingency plans to mitigate these risks.
• Continuously monitor and manage risks throughout the project lifecycle to minimize any impact on the PWP.

By implementing these effective project management practices, including organizing the PWP by supplier, you can enhance collaboration, optimize material procurement, and mitigate potential delays or disruptions, thereby ensuring successful project execution.

Conclusion

The PWP in AWP introduces a complex relationship that differs from the 1:1 relationships between the EWP and CWP. By prioritizing materials, fostering awareness, and implementing effective project management practices, construction projects can mitigate procurement challenges, optimize material availability, and enhance project execution.

Do you want to learn more?

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