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Transcript of ICC2012 Malaysia
Effective Governance Of Mega-Projects Using Real-time IT And RFID Technology
Dr. Tahir Hanif PhD MSc MCIOB MAPM MACostE MIC CMC MRICS
Project Control Specialist – Public Works Authority (ASHGHAL), State of Qatar
International Construction Conference on"Challenges of Global Mega Projects - Modernising Construction For Project Excellence“15th – 16th February 2012 – Kuala Lumpur Convention Centre (KLCC), Malaysia
2
Presentation Outline Part 1- The challenges we face today Part 2 - The problem with traditional reporting Part 3 – A practical solution to effective reporting Part 4 - Summary & Conclusion Questions & Answers
The Challenges We Face Today
Part 1
4
In The Past ... We used to have ‘stable’ environments Things used to move at a steady pace Prediction allowed us to prepare good forecasts We prepared paper reports Complexity was manageable We relied on models to understand our
environments Traditional Project Management provided the ability
to ‘plan’ and ‘control’
5
Project Management Timeline
(1896) Karol Adamiecki develops the Harmonogram
(1914) Henry Gantt uses Gantt Charts
(1967) Earned Value used by the US Government
(1957) CPM developed by Remington Rand Univac(1960) PERT developed as part of the Polar Missile Program
(1985) Theory of Constraints developed by Dr. Goldratt(1991) Rapid Application Development devised by James Martin(1991) SCRUM methodology developed
(2004) Extreme Project Management promoted by Doug DeCarlo
(1911) Frederick Taylor publishes ‘Principles of Scientific Management’
(1965) IPMA established
(1969) PMI established(1970) APM established
(2001) eXtreme Programming (XP) developed by Kent Back(2002) AGILE manifesto comes into existence(2005) International Centre for Complex Project Management established
(1903) The Wrights brothers flight è
(1914) World War 1 starts è(1918) World War 1 ends
è
(1939) World War 11 starts è(1945) World War 11
finishes è
(1969) Space craft ‘Eagle’ lands on the moon è
First test flight of Concorde
(2000) Dot com crash è(2008) Financial markets
crash è(2012) Current financial crisis ! è
(Euro zone)
Adaptive Project
Management
Predictive Project
Management
6
Challenges We Face Today Projects are more dynamic Still using techniques developed for stable
environments We need more flexibility and ‘real-time’ information Lack of project management skills & understanding Too much use & reliance on IT without consideration Commercialisation of ‘Project Management’ A serious lack of passion for work
7
The Perfect Definition Of Project Management “The art and science of converting vision into reality”
(Turner 1996)
Project Management
8
The World of Projects
Organisation Goal
Programm
e
Portfolio
Project
ExternalEnvironment
PoliticalEconomicSocialTechnologicalLegalEnvironmental
PRIVATE SECTOR
* Enhance Shareholder value* Maximise profits* Reduce costs* Increase market share
PUBLICSECTOR
* Benefits* Value for money* Transparency
Internal Environment
BO
U N D AR
Y
The Problem With Traditional Reporting
Part 2
10
Which Environment Is Your Project In?
Stable Environment
Project Team
Dynamic Environment
•Schedules•Estimates•Forecasts etc
Development of plans /approach etc
Feedback
‘Iron Triangle’ or ‘Iron Octagon’?
Slide Nr 11
“Iron Triangle”
Cost Time
Quality
“Iron Octagon”
QualityTime
Cost
Health & Safety
Environment
Stakeholder Communicati
on
Sustainability
Benefits1
3
2
4
5
67
8
1
2 3
Traditional Project
Management
The future!
12
Difference Between Data Date & Report Date
nn
nn
n
Time Lag
ÞData date
Report production
Client review n
13
The Issue With Traditional Reporting
Monthly reports take too long to produce Information is largely historic Report is not 100% reliable Need to remove bias and opinions Need a reporting mechanism that mirrors the project
environment
A Solution To Effective Reporting
Part 3
15
Solution Summary Remove the necessity for monthly reports Manage projects using Key Performance Indicators
(KPIs) only No need for elaborate processes and procedures Focus on what is important! Harness the power of existing IT solutions
16
Framework For Proper Governance
1.Prepare Strategy
Map
2. Create
measures
3. Collect data
4. Review
performance
5. Take
Action
Kaplan & Norton’s Strategy Map
Kaplan & Norton’s Balanced Scorecard
+PMI Body of Knowledge areas
Determine the best way to capture data
Feedback Loop
17
Project Structure & Information Flow
Organisation A1 Organisation A2
Organisation A3 Organisation A4
1st Tier suppliers
2nd Tier suppliers
Information nodes
18
Developing Key Performance Indicators
1. Strategy
Map (Kaplan & Norton)
2. Balanced Scorecard (Kaplan & Norton)
3. PMI Body of Knowledge Areas
4. Key Performa
nce Indicator
s
5. Data Collectio
n Methods
Ensuring we measure the ‘right’ things!
19
The Strategy Map (Kaplan & Norton)
20
Balanced Scorecard (Kaplan & Norton)
Vision & Strategy
“To achieve our vision, how should we appear to our customers?”
Customer
Obj
ect
ives
Mea
sure
s
Targ
ets
Initi
ativ
es “To satisfy our
shareholders and customers, what business processes must be excel at?”
Internal Business Process
Obj
ect
ives
Mea
sure
s
Targ
ets
Initi
ativ
es
“To succeed financially, how should we appear to our shareholders?”
Financial
Obj
ect
ives
Mea
sure
s
Targ
ets
Initi
ativ
es
“To achieve our vision, how will we sustain our ability to change and improve?”
Learning & GrowthO
bje
ctiv
es
Mea
sure
s
Targ
ets
Initi
ativ
es
21
Project Integration
Management
Project Time Management
Project Cost Management
Project Quality
Management
Project Human
Resource Management
Project Communicati
on Management
Project Risk Management
Project Procurement Management
Project Safety
Management
Project Environment
al Management
Project Financial
Management
Project Claim
Management
Project Scope
Management
1
2
3
4
567
8
9
10
11 12 13
22
How It All Fits Together!
Sco
pe M
anag
emen
t
Inte
grat
ion
Man
agem
ent
Tim
e M
anag
emen
t
Cos
t m
anag
emen
t
Qua
lity
Man
agem
ent
HR
Man
agem
ent
Com
mun
icat
ion
Man
agem
ent
Ris
k M
anag
emen
t
Pro
cure
men
t M
anag
emen
t
Saf
ety
Man
agem
ent
Env
ironm
ent
Man
agem
ent
Fin
anci
al M
anag
emen
t
Cla
im M
anag
emen
tManual IT Systems RFID Technology
Strategy Map (Kaplan & Norton)
Balanced Scorecard(Kaplan & Norton)
Project Management Body of Knowledge –Construction Extension
(Project Management Institute)
Method of collection
Top
dow
nG
roun
d up
23
Developing Key Performance Indicators
Sco
pe M
anag
emen
t
Inte
grat
ion
Man
agem
ent
Tim
e M
anag
emen
t
Cos
t m
anag
emen
t
Qua
lity
Man
agem
ent
HR
Man
agem
ent
Com
mun
icat
ion
Man
agem
ent
Ris
k M
anag
emen
t
Pro
cure
men
t M
anag
emen
t
Saf
ety
Man
agem
ent
Env
ironm
ent
Man
agem
ent
Fin
anci
al M
anag
emen
t
Cla
im M
anag
emen
tManual IT Systems RFID Technology
Strategy Map (Kaplan & Norton)
Balanced Scorecard(Kaplan & Norton)
Project Management Body of Knowledge –Construction Extension
(Project Management Institute)
Method of collection
Top
dow
nG
roun
d up
24
Development Of Key Performance Indicators
25
KPI Reporting
26
KPI Dashboard
27
Data Collection Methods
IT Systems Handheld Technology Radio Frequency IDentification
Summary & Conclusions
Part 4
29
Developing Key Performance Indicators
Sco
pe M
anag
emen
t
Inte
grat
ion
Man
agem
ent
Tim
e M
anag
emen
t
Cos
t m
anag
emen
t
Qua
lity
Man
agem
ent
HR
Man
agem
ent
Com
mun
icat
ion
Man
agem
ent
Ris
k M
anag
emen
t
Pro
cure
men
t M
anag
emen
t
Saf
ety
Man
agem
ent
Env
ironm
ent
Man
agem
ent
Fin
anci
al M
anag
emen
t
Cla
im M
anag
emen
tManual IT Systems RFID Technology
Strategy Map (Kaplan & Norton)
Balanced Scorecard(Kaplan & Norton)
Project Management Body of Knowledge –Construction Extension
(Project Management Institute)
Method of collection
Top
dow
nG
roun
d up
30
Summary Of KPI Development Utilises the Strategy Map & Balanced Scorecard
approach Incorporates PMI Body of Knowledge areas High-level framework for suppliers to interface with Data entry achieved through the use of RFID,
Handheld Technology and existing IT systems Allows management of geographical dispersed sites Minimal data entry by individuals Real time reporting on project performance Simple, effective and sustainable solution
31
Solution Implementation Initial development and implementation by the Client Client takes the lead hence minimal conflicts
between organisations Organisations charged on a ‘pay as you go’ basis Future development costs shared by delivery
organisations Solution implemented by an Independent Project
Management Consultant
32
Don’t Forget Your People! Relying on processes alone is insufficient Employ the people with the following attributes:
Right skills Correct attitude and aptitude Emotionally intelligent Burning desire to make a difference Passion to establish new standards Relentless in their pursuit of perfection
33
Thank You For Listening
?“Terima Kasih kerana sudi mendengar
pembentangan kertas kerja saya.”