Managing Project Processes in Construction Projects

1. Managing Project Processes in Construction Projects Group 2: Richard Allin, Rikesh Kerai, Omar Rafiq, Noel Espeut, Ross Overfield-Collins OmarOmar

2. Sir John Egan (chairman of the Construction Task Force) states: � The IPPM is a process that utilises the full construction team, bringing the skills of all the participants to bear on delivering value to the client. It is a process that is explicit and transparent, and therefore easily understood by the participants and their clients.� Sir John Egan Rethinking Construction Report The Construction Task Force OmarOmar

3. Goals and Practices: Defined Process: Process Organisation Project plans Manage Assets of the organisational process The project is conducted using a defined process that is tailored from the organization's set of standard process Establish and maintain the project's defined process. Use the organizational process assets and measurement repository for estimating and planning the projects activities. Integrate the project plan and the other plans that affect the project to describe the project's defined process. Manage the project using the project plan, the other plans that affect the project, and the project's defined process. Contribute work products, measures, and documented experiences to the organizational process assets. (Noel) The project is conducted using a defined process that is tailored from the organization's set of standard process Establish and maintain the project's defined process. Use the organizational process assets and measurement repository for estimating and planning the projects activities. Integrate the project plan and the other plans that affect the project to describe the project's defined process. Manage the project using the project plan, the other plans that affect the project, and the project's defined process. Contribute work products, measures, and documented experiences to the organizational process assets. (Noel)

4. Coordination & Collaboration: Manage Identify, negotiate & track dependencies Resolve issues with stakeholders The project is conducted using the project's shared vision: Expectations, Constraints, Interfaces, and Operational�Conditions Vision for the project Coordination and collaboration of the project with relevant stakeholders are conducted. Manage the involvement of the relevant stakeholders in the project. Participate with relevant stakeholders to identify, negotiate, and track critical dependencies. Resolve issues with relevant stakeholders. The project is conducted using the project's shared vision. Identify expectations, constraints, interfaces, and operational�conditions applicable to the project's shared vision. Establish and maintain a shared vision for the project. (Noel)Coordination and collaboration of the project with relevant stakeholders are conducted. Manage the involvement of the relevant stakeholders in the project. Participate with relevant stakeholders to identify, negotiate, and track critical dependencies. Resolve issues with relevant stakeholders. The project is conducted using the project's shared vision. Identify expectations, constraints, interfaces, and operational�conditions applicable to the project's shared vision. Establish and maintain a shared vision for the project. (Noel)

5. Development of Integrated Project Management Process Planning, Designing and Construction stages were usually constrained in efficiency. The conventional process favours the constructors Using the Integrated Project Management Process the client is favoured. The Integrated Project Management Process was developed because the conventional construction process was usually constrained in efficiency by the Planning, Designing and Construction stages. The conventional process is generally sequential because it reflects the input of designers, constructors and key suppliers as well as minimising the risk as specifications and contracts are defined precisely. Unfortunately, according to Sir John Egan, it is less clear if this strategy protects the clients from effectively using the skills and knowledge of previous constructors in the design and planning of the projects. The repeated selection of new teams inhibits learning, innovation and development, therefore critically preventing the industry from developing products or an identity that can be understood by its clients. An integrated Project management process favours designers, constructors, and key suppliers to name a few, into sharing there skills and knowledge together and therefore favouring the client. (Rikesh)The Integrated Project Management Process was developed because the conventional construction process was usually constrained in efficiency by the Planning, Designing and Construction stages. The conventional process is generally sequential because it reflects the input of designers, constructors and key suppliers as well as minimising the risk as specifications and contracts are defined precisely. Unfortunately, according to Sir John Egan, it is less clear if this strategy protects the clients from effectively using the skills and knowledge of previous constructors in the design and planning of the projects. The repeated selection of new teams inhibits learning, innovation and development, therefore critically preventing the industry from developing products or an identity that can be understood by its clients. An integrated Project management process favours designers, constructors, and key suppliers to name a few, into sharing there skills and knowledge together and therefore favouring the client. (Rikesh)

6. Lessons which have been Learnt from Other Industries TQM Benchmarking Value Management Team Working Changes in other industries were driven by the customer and clients need to survive against competition. Within these other industries, there have been increases in efficiency & transformation of companies. Many lessons have been learnt and applied to the construction industry. Total Quality Management. TQM is a quest for progress and continual improvement in the areas of cost, reliability, quality and business effectiveness.It is a process of continually improving the quality of goods and services delivered through the participation of all levels and function of the organisation. Benchmarking helps understand how performance of a firm measures to that of their competitors� & drives for improvement. Such as helping improve the �zero defects culture�. Value Management eliminates waste from the brief and from design before binding commitments are made. It is used to deliver more effective & higher quality buildings within the construction industry, for example, by taking unnecessary costs out of designs and ensuring a clear understanding of the brief by all project participants & improving teamwork within the organisation. Richard will now give examples of how lessons from other industries have been applied to the Construction Industry: (Rikesh)Changes in other industries were driven by the customer and clients need to survive against competition. Within these other industries, there have been increases in efficiency & transformation of companies. Many lessons have been learnt and applied to the construction industry. Total Quality Management. TQM is a quest for progress and continual improvement in the areas of cost, reliability, quality and business effectiveness.It is a process of continually improving the quality of goods and services delivered through the participation of all levels and function of the organisation. Benchmarking helps understand how performance of a firm measures to that of their competitors� & drives for improvement. Such as helping improve the �zero defects culture�. Value Management eliminates waste from the brief and from design before binding commitments are made. It is used to deliver more effective & higher quality buildings within the construction industry, for example, by taking unnecessary costs out of designs and ensuring a clear understanding of the brief by all project participants & improving teamwork within the organisation. Richard will now give examples of how lessons from other industries have been applied to the Construction Industry: (Rikesh)

7. Examples� Car Manufacturing Offshore Engineering Steel Making Grocery Retailing Car Manufacturing; Improvements: Time reduced for design freeze of a car to launch from 40 to 15months Time to weld, paint & assemble a car in decreasing from 40 to 15hours, with respective reductions in effort of component production Time from factory order to sale to a customer reduced from 120 to 15days Defects within this industry are now measured in parts per million as opposed to per hundred Also the lean production has been spread to smaller second tier suppliers As a result of the above improvements, UK car production and exports have nearly doubled over the last decade (written in 1998?). How has this taught construction? Offshore Engineering; Operators, contractors and suppliers came together when the industry in the North Sea faced a crisis to form the Cost Reduction Initiative for the New Era (CRINE); a model of �co operational effort�. This consisted of a joint effort to find ways to reduce wasteful activity, improving efficiency and ultimately enhancing competitiveness. Steel Making; The UK Steel Industry is a highly competitive international player (or rather, was) Key drivers: Cost reduction Performance improvement Long term need to secure the competitiveness position of steel compared with other materials such as concrete etc Improvements to achieve this: Business procedures revised Procedures simplified & improved Waste eliminated A program of TQM initiated Moves towards multi skilling & team working Also, an essential enabler was a training program for employees Grocery Retailing; Leading producers established the Efficient Consumer Response (ERC) to improve competitiveness. Its aim to develop a common framework for jointly managing the grocery supply chain. The findings were shared with the rest of the industry. These were that to make real savings, only achievable by working together, and led to partnering of producers and retailers. Improvements: Streamlined distribution systems, Reduced order lead times Product ranges and volumes grew (8-10fold) (British grocery chains are now world leaders) From the industries construction can clearly learn many lessons. (Rich) Car Manufacturing; Improvements: Time reduced for design freeze of a car to launch from 40 to 15months Time to weld, paint & assemble a car in decreasing from 40 to 15hours, with respective reductions in effort of component production Time from factory order to sale to a customer reduced from 120 to 15days Defects within this industry are now measured in parts per million as opposed to per hundred Also the lean production has been spread to smaller second tier suppliers As a result of the above improvements, UK car production and exports have nearly doubled over the last decade (written in 1998?). How has this taught construction? Offshore Engineering; Operators, contractors and suppliers came together when the industry in the North Sea faced a crisis to form the Cost Reduction Initiative for the New Era (CRINE); a model of �co operational effort�. This consisted of a joint effort to find ways to reduce wasteful activity, improving efficiency and ultimately enhancing competitiveness. Steel Making; The UK Steel Industry is a highly competitive international player (or rather, was) Key drivers: Cost reduction Performance improvement Long term need to secure the competitiveness position of steel compared with other materials such as concrete etc Improvements to achieve this: Business procedures revised Procedures simplified & improved Waste eliminated A program of TQM initiated Moves towards multi skilling & team working Also, an essential enabler was a training program for employees Grocery Retailing; Leading producers established the Efficient Consumer Response (ERC) to improve competitiveness. Its aim to develop a common framework for jointly managing the grocery supply chain. The findings were shared with the rest of the industry. These were that to make real savings, only achievable by working together, and led to partnering of producers and retailers. Improvements: Streamlined distribution systems, Reduced order lead times Product ranges and volumes grew (8-10fold) (British grocery chains are now world leaders) From the industries construction can clearly learn many lessons. (Rich)

8. Integrated Project Process (IPP) Project & Construction Management Services Provided Scope of Additional Services Phase services details Pre-construction phase Design Phase Construction Phase Intro Integrated project process incorporates the input from the client, design team and contracts manager. Services Provided Includes evaluation of costs, schedules and overall construction performance. Full time coordination between design and construction. Minimum design construction time, by using phased construction (see below) Improves price competition from contractors and subcontractors (eg. Tenders can be compared and the best price obtained) Scope of Additional ie. Construction management Quality assurances QC H & S assurances Implementation of environmental requirements (planning) Pre-Construction Phase This phase involves the establishment of: Financial analysis (cost management � QS) Design consultations Project planning Project requirements Approvals of contracts between client and designer Design Phase Establishing standards and planning requirements. Design management Engineering approvals Constructability analysis Contracts and agreements between client, contractor & architect (CDM). Construction Phase Tender management Contract administration Pre construction meetings] On site supervision Progress meetings (scheduling control & evaluation) QC QA H&S Cost Management (Rich)Intro Integrated project process incorporates the input from the client, design team and contracts manager. Services Provided Includes evaluation of costs, schedules and overall construction performance. Full time coordination between design and construction. Minimum design construction time, by using phased construction (see below) Improves price competition from contractors and subcontractors (eg. Tenders can be compared and the best price obtained) Scope of Additional ie. Construction management Quality assurances QC H & S assurances Implementation of environmental requirements (planning) Pre-Construction Phase This phase involves the establishment of: Financial analysis (cost management � QS) Design consultations Project planning Project requirements Approvals of contracts between client and designer Design Phase Establishing standards and planning requirements. Design management Engineering approvals Constructability analysis Contracts and agreements between client, contractor & architect (CDM). Construction Phase Tender management Contract administration Pre construction meetings] On site supervision Progress meetings (scheduling control & evaluation) QC QA H&S Cost Management (Rich)

9. Integrated Project Process�: IPD & BIM Integrated Project Design (IPD): Feasibility Study Survey Evaluation & Design. Building Information Modeling (BIM) �Less than 0.2 hrs spent on rework� Hanson Bridgett Construction Co. Intro The design of building requires the integration of many kinds of information into a whole process, which includes active participation from planning officials �The best buildings result from active, consistent, organized collaboration among all players� (whole building design guide � http://www.wbdg.org) Integrated Project Design (IPD): Feasibility Study Are the objectives achievable ..And achievable within budget Survey Evaluation & Design. Flow Design tools Turnaround time Linking Construction phases to schedules & costs Building Information Modeling (BIM) Modeling for energy analysis Construction Costs Impact Cost benefit strategy Cumulative cash flow When to use IPD & BIM Large teams Large scale projects Complex technical systems Benefits Less rework/savings �Less than 0.2% of hours spent on rework since the introduction of Integrated Project Process (IPP)� Hanson Bridgett Construction Co. USA �HVAC contractor eg. Action Air Systems Inc.) reported over $400K labour savings on a $9.04million GMP contract. (Ross)Intro The design of building requires the integration of many kinds of information into a whole process, which includes active participation from planning officials �The best buildings result from active, consistent, organized collaboration among all players� (whole building design guide � http://www.wbdg.org) Integrated Project Design (IPD): Feasibility Study Are the objectives achievable ..And achievable within budget Survey Evaluation & Design. Flow Design tools Turnaround time Linking Construction phases to schedules & costs Building Information Modeling (BIM) Modeling for energy analysis Construction Costs Impact Cost benefit strategy Cumulative cash flow When to use IPD & BIM Large teams Large scale projects Complex technical systems Benefits Less rework/savings �Less than 0.2% of hours spent on rework since the introduction of Integrated Project Process (IPP)� Hanson Bridgett Construction Co. USA �HVAC contractor eg. Action Air Systems Inc.) reported over $400K labour savings on a $9.04million GMP contract. (Ross)

10. Determine Develop Establish Any Questions? Integrated Project Process incorporates many process�, IPD & BIM are to name but a few. However they all require integrated teams to achieve results similar to the ones achieved by Hanson Bridgett. But Most important of all the teams themselves will need to........... Determine the integrated structure that will best meet the project objectives and constraints. Develop a primary distribution of responsibilities, authorities, tasks, and interfaces to teams Establish; Evaluate and maintain the newly structured teams in the integrated, orderly and source efficient manor. (Ross)Integrated Project Process incorporates many process�, IPD & BIM are to name but a few. However they all require integrated teams to achieve results similar to the ones achieved by Hanson Bridgett. But Most important of all the teams themselves will need to........... Determine the integrated structure that will best meet the project objectives and constraints. Develop a primary distribution of responsibilities, authorities, tasks, and interfaces to teams Establish; Evaluate and maintain the newly structured teams in the integrated, orderly and source efficient manor. (Ross)

11. References Egan.J (1998). Rethinking Construction. Department of Trade and Industry, Norwich, HMSO AIA California Council. (2007) Integrated Project Delivery. USA, Dodge Sweets Architectural Record Defence Finance and Accounting Service. Viewed 29th November 2008. http//:dfas.mil/technology/pal/cmm/cmmi-am/cmmi-am-ipm.htm Whole Building Design Guide. Viewed 29th November 2008. http//www.wbdg.org/design.engage_process.php Integrated Product Design. (2008). Western Geco. New York, Sclumberger Limited