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

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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

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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

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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

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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

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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

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Project Structure & Information Flow

Organisation A1 Organisation A2

Organisation A3 Organisation A4

1st Tier suppliers

2nd Tier suppliers

Information nodes

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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!

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The Strategy Map (Kaplan & Norton)

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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

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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

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How It All Fits Together!

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Strategy Map (Kaplan & Norton)

Balanced Scorecard(Kaplan & Norton)

Project Management Body of Knowledge –Construction Extension

(Project Management Institute)

Method of collection

Top

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Developing Key Performance Indicators

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Development Of Key Performance Indicators

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KPI Reporting

26

KPI Dashboard

27

Data Collection Methods

IT Systems Handheld Technology Radio Frequency IDentification

Summary & Conclusions

Part 4

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Developing Key Performance Indicators

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Strategy Map (Kaplan & Norton)

Balanced Scorecard(Kaplan & Norton)

Project Management Body of Knowledge –Construction Extension

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Method of collection

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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

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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

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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

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Thank You For Listening

?“Terima Kasih kerana sudi mendengar

pembentangan kertas kerja saya.”