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1401.661 Advanced Construction Technology
Moonseo Park
39동 433Phone 880-5848, Fax 871-5518
E-mail: [email protected]
Department of ArchitectureCollege of Engineering
Seoul National University
Assistant Professor, PhD
IntroductionIntroductionSimulation-based dynamic project management
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In 1960In 1960’’s in Greeces in Greece……
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They found a clue butThey found a clue but……
How to reduce air pollution caused by emitting vehicles?
Regulating car driving on an odd and even
number basis
Buying one more car
Increasing registration fee
for new cars
Buying a used car
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Lecture Outline Lecture Outline
Chronic Problems in Project Management
Dynamic Management Approach
Dynamic Management Concepts
Course Administration
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Have you experienced ...Have you experienced ...
Schedule and budget overruns?
Projects seemingly stuck at “90%” complete?
New products with flaws discovered after release?
Late realization of additional time or resource needs?
Difficulty comparing the performance of different,“unique” projects?
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Sources:Peter Morris and George Hough, The Anatomy of Major Projects, Wiley, 1987.Dr. Edward B. Roberts, Strategic Management of Technology: Global Benchmarking, December 10, 1992 [Results of a survey sponsored by the Massachusetts Institute of Technology, Cambridge, Mass and PA Consulting Group, London, England].
You are not alone You are not alone ……
The majority of all development projects fail to meet their time and cost targets, with the overrun typically between 40 and 200 percent.
Sources:Latham, “Constructing the Team”, HMSO, 1994
Construction is not an exception. The UK construction industry reports that only 70% of projects delivered within 5% of the tender cost and 38% delivered within 5% of the tender program.
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Why?Why?
Unrealistic GoalsLate ChangesPoor Program Planning and ManagementResource ShortagesLack of Participants’ Understanding on RequirementsLack of CommitmentUncertaintiesAnd so on…
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Chronic Problems in PMChronic Problems in PM
Chronic problems in project management persist in spite of advances in planning and management tools.
Problems encountered during project management are fundamentally dynamic. However, they have been treated statically with a partial view on a project.
As a result, schedule tends to be continuously updated during the project duration without value-adding.
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Learning has rarely accumulated across projects.
• Partly due to the structural problems of projects.
• R&D Projects: unique each time
• Construction: process-based work that is performed on an unfixed place by a temporary alliance among multiple organizations [Slaughter, 1999].
• Also, attributed to the lack of learning mechanism in the traditional network-based planning tools such as CPM, PERT, and PDM.
Chronic Problems in PMChronic Problems in PM
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Lecture Outline Lecture Outline
Chronic Problems in Project Management
Dynamic Management Approach
Dynamic Management Concepts
Course Administration
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Observed Problem
공기지연
기대시공률
생산성
경험희석,품질/안전문제
건설경영에건설경영에 대한대한 새로운새로운 접근접근
실제시공률
시공속도
자원증가
공기지연
System Approach
공기지연을 유발시킨시스템구조에 기초한해결 모색
투입자원
Traditional Approach
공사자원을 증가시킴
delay
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Their Ability to InfluenceTheir Ability to Influence……
Events
Patterns of Behavior
System Structure
Low
Medium
High
Ability toInfluence
External Factors
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Dynamic Management Approach HelpsDynamic Management Approach Helps……
Understanding the structure of projects, and how that structure creates behavior
Designing robust project plans under uncertainty
Learning across projects
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Lecture Outline Lecture Outline
Chronic Problems in Project Management
Dynamic Management Approach
Dynamic Management Concepts
Course Administration
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Dynamic Management ConceptsDynamic Management Concepts
Focus on Dynamic Behavior
System Structure as Cause of that Behavior
Emphasis on Internal Dynamics
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Examples of Behavior ModesExamples of Behavior Modes
Growth
Stability
Decay
population, project progress, accumulated project costs, etc.
popularity of a movie star, project staffing, change orders during construction, etc.
unemployment rate, oil price, inventory level, etc.
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The basic element of system structure is the feedback loop.
Chickens
Time
This one is called a “positive,”or “reinforcing” feedback loop.
+
+
EGGS CHICKENS
System Structure as Cause of BehaviorsSystem Structure as Cause of Behaviors
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ExodusExodus……..
Farm
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Loop effects interact with one another, making traditional diagnosis quite difficult.
+
+
EGGS CHICKENS
Such as with this “negative,” or “balancing”, feedback loop, which may slow or reverse growth.
ROADCROSSINGS X
FARMSIZE
-
+
When interacting with one anotherWhen interacting with one another……
Chickens
Time
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An example: taxi calling systemAn example: taxi calling system
Use of Taxi CallSystem
Average WaitingTime on the Road
Just-In-TimeService
+
-
+
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An example: taxi calling systemAn example: taxi calling system
Use of Taxi CallSystem
Average WaitingTime on the Road
Just-In-TimeService
+
-
Number of Taxi RefusingPeople on the Raod,Waiting
for Calls
+
+
+ Average ResponseTime to Customers
+-
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This also happens in PMThis also happens in PM……
The “dominant” loop on a project may be a controlling loop.
Staff
Progress+
-
Desired Progress
+
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Reinforcing loops complicate that Reinforcing loops complicate that control...control...
Staff
Progress+
Desired Progress
Experience
Productivity
Overtime
Fatigue+
-+-
+
+-
-
+
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An Example on a ProjectAn Example on a Project
ProjectStaffing
Time
TypicalPlan
Staffing usually experiences a second staffing peak and/or
an extended tail.
Why ?
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An extended tail caused by reworkAn extended tail caused by rework
Year 1 Year2 Year 3 Year 4 Year 5 Year 6 Year 7
Staffing Allocation
Original Work Rework800.
600.
400.
200.
0.
TIME
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Year 1 Year2 Year 3 Year 4 Year 5 Year 6 Year 7
TIME
Work Assignments of Staff to
AUTO Initial Releases AUTO Revisions200.
150.
100.
50.
0.
A second staffing peak caused A second staffing peak caused by reworkby rework
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Time Delayed ActionTime Delayed Action Non-linear responsesNon-linear responses
Cause-Effect RelationshipsCause-Effect Relationships
Experience Productivity
New StaffProductivity
Time
Productivity
Years of experience
Main Elements within Feedback LoopsMain Elements within Feedback Loops
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Generating observed modes of Generating observed modes of behaviorsbehaviors
“….Interacting positive and negative
feedback loops of cause-effect
relationships, with delays and non-
linearities are capable of generating
all observed modes of behavior…”
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Simulating observed behaviorsSimulating observed behaviors
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Program Staff (Original plan, Simulated. vs. Actual Data)
Simulated Original Plan Data 400.
300.
200.
100.
0.
TIME
A Second Staffing Peak Caused by Rework
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Emphasis on Internal DynamicsEmphasis on Internal Dynamics
System-as-Cause ThinkingWhat can we do to improve our performance and accomplish our objectives.Proactive and offensive
System-as-Effect ThinkingOthers did it to usPredictive, reactive, defensive
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Systems thinking and dynamic modeling provide a new approach
Focus on understanding behaviour over time
Internal feedback and stock-flow structure creates that behaviour
Integrative, high-level view of projects, business, competition, markets.
Provides understanding of how the business dynamics work, and critical success factors
Engages management team in strategy dialogue
Structured approach to analyzing and managing complex issues
Facilitates communication of strategies, consensus-building, and commitment
Basis for strategy management and organizational learning
As a World View ... As a Process and Tools ...
Potential Benefits of Dynamic ApproachPotential Benefits of Dynamic Approach
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Project Management
•Org Structure
•Work Responsibility
•Information interfaces
•How changes affect project, implementation
•Cost/schedule.
•Technical Performance
•Technical Risk
•Programmatic risk
•Determining factors to monitor, benchmark
•Cost/schedule Mgt.
•Baseline Mgt.
•Configuration Mgt.
•Problem Resolution
•Determining responses; risk mgt; change mgt.
•Analysis of metric data
•Project-to-project learning
•Mgt. Plan
•Schedule Plan
•Contract Mgt. Plan
•WBS
•Estimating, planning & risk assess.
Project Management ContextProject Management Context
ProjectPlanning
Project Organization
Project Monitoring
Project Control
ProcessImprovement
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Aerospace/ Electronics MissilesRadarsAircraftFire Control SystemsGuidance SystemsSatellites
ShipbuildingDestroyersCarriersSubmarinesFrigatesCommercialAssault Ships
Major ConstructionCross-Channel
TunnelNuclear Power
Plants
Large DevelopmentsAir Defense / C3 ITelephone
Switching SystemsShipboard Control
SystemsVehiclesPower Trains
Already applied in many industries..Already applied in many industries..
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Lecture Outline Lecture Outline
Chronic Problems in Project Management
Dynamic Management Approach
Dynamic Management Concepts
Course Administration
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ReadingReading
R1: John D. Sterman, “System Dynamics Modelling for Project Management”, MIT online publication at http://web.mit.edu/jsterman/www/SDG/project.html, 1992R2: Terry Williams et. Al, “The Effects of Design Changes and Delays on Project Costs”, Journal of the Operational Research Society, Vol 46, pp 809-818, 1995R3: James M. Lyneis *, Kenneth G. Cooper, Sharon A. Els, “Strategic management of complex projects: a case study using system dynamics”, System Dynamics Review, Vol. 17, No. 3, 2001R4: Pena-Mora, Feniosky; Park, Moonseo, “ Dynamic Planning for Fast-Tracking Building Construction Projects”, Journal of Construction Engineering and Management, Vol 127, Issue 6, 2001 R5: Park, Moonseo, Yashada, “Model-based Construction Policymaking: Singapore Government's Policy to Diffuse Prefabrication to the Private Sector”, Journal of Construction Engineering and Management, Submitted 2004 (to be distributed)R6: Park, Moonseo, “Model-based Dynamic Resource Management for Construction Projects”, Automation in Construction, 2005 vol 5
Main Textbook: “Business Dynamics”, John D. Sterman, 2000, McGraw-Hill
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GradingGrading
Continuous Assessment: 100% (NO Exam)
Assignments: 20% (4 x 5%)Term Project: 70% (only final presentation to be assessed)Quizzes, attendance etc: 10%
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OthersOthersLecture materials will be posted in e-Class of IT4U SNU portal (http://portal.snu.ac.kr).
Assignments (A1 to A4) and one term project (TP1 to TP3) will be done and assessed in a group of 2-3 students.
Hard & soft copies (thru e-Class) of the assignments are to be submitted before lecture (* 50% deduction on marks will be applied to late submission).
Modelling software, Vensim PLE is available atwww.vensim.com
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LecturerLecturer
180 cm, 80kgAssistant Prof., PhD from MITE-mail: [email protected]
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ReferencesReferences
Avraham Shtub, Jonathan F. Bard, Shlomo Globerson, “Project management : engineering, technology, and implementation”, Englewood Cliffs, NJ, Prentice Hall, 1994 Frederick E. Gould, Nancy Joyce, Chapter 8, “Construction project management”, Upper Saddle River, NJ, Prentice Hall, 1999James M. Lyneis *, Kenneth G. Cooper, Sharon A. Els, “Strategic management of complex projects: a case study using system dynamics”, System Dynamics Review, Vol. 17, No. 3, 2001 Christopher M. Gordon, “Choosing appropriate construction contracting method”, J. of Construction Engineering & Management, Vol. 120, No. 1, 1994 Feniosky Pena-Mora, Jim Lyneis, “Project control and management”, MIT 1.432J Lecture Material, 1998Barrie, D.S., and Paulson, B.C., “Professional Construction Management”, McGraw Hill, 1992Halpin, D.W., “Financial and Cost concepts for construction management”, John Wiley & Sons, 1995Yehiel Rosenfeld, “Project Management”, MIT 1.401J Course Material, 2000Sarah Slaughter, “Innovation in construction”, MIT 1.420 Course Material, 1999Gray and Hughes, “Building Design Management”,.Murdoch and Hughes, “Construction Contracts: Law and Management”, E&FN SPON, 1996Gray, Hughes and Bennett, “The Successful Management of Design”, Reading, 1994