D31PS

Project Management:
Strategical Issues

PRODUCTION

CONSTRUCTION

CRAFT

Traditional
(C.P.M.)

the current state

Eliminate WASTE
Kaizen
Process Mapping

DRIVERS for CHANGE

What type of production

is construction ?

BRIEF

POOR
PERFORMANCE

MASS

LEAN

RE-ENGINEER

IMPROVEMENT

Flow Management

Shielding
Last Planner

Performance measurement

Lagging ind.
Leading ind.

Benchmarking

OPERATIONAL

The role of

P.M.
STRATEGIC

VISION
Leadership
S.C.M.
Politics
Upward Management
Stakeholders
Partnering

UNIT 1

CURRENT STATE

Separate design & construction process

Architects rule
Competitive tendering
Old craft culture
Fragmentation
Temporary teams
Whole life-cycle is out of consideration
Focus on customer is limited
Price before production

POOR
PERFORMANCE

Clients
Supply teams
Profits
Reputation
Innovation

DRIVERS

Commitment leadership
Commitment to people
Focus on customer
Process/Team integration
Quality driven agenda
Health & Safety
Sustainability

IMPROVEMENT

Re-think
Re-engineer
Radical

CONSTRUCTION
INDUSTRY

Measure performance
Working conditions
Training
Design integration
Standardization
Technology
R&D, Innovation
Partnership & alliance
Regulations
Reduce tendering reliance
Sustainability
Health & Safety

UNIT 2

PRODUCTION

CRAFT

Entire process

MASS

Task break-down
Standardization

Cost of unit reduction

Product Selection

Idea generation

Screen / Select
Preliminary design

Product Design

Prototype testing

Final design
Transformation
System
selection/design

Production

LEAN

Market

Commercialization
Modularity

Continuous process
Flow shops
Job shops
Project
Cellular shop

UNIT 3

LEAN
PRODUCTION

PRINCIPLES

Eliminate WASTE
Specify VALUE
Identify VALUE STREAM

(for the Customer)

Pursue PERFECTION

Eliminate Variation
Cellular production
Concurrent Engineering
Partnering & SCM
Right-first-time
Kaizen

(Process)

Keep CONTINUOUS FLOW

Customer PULLS VALUE

7 MUDA

Over-production
Waiting
Transportation
Inappropriate process (Poka Yoke)
Unnecessary inventory (JIT)
Unnecessary movement (ergonomic)
Defects

CONSTRUCTION

is a

COMPLEX

UNIT 3

Dynamic
Non-linear
Turbulent
Unpredictable

Conversion Process

Input Output

decompose tasks
minimize cost

type of

PRODUCTION

Flow Process
Value generation

Waste reduction

Value maximization

Customer

ROOTED IN PLACE
under conditions of

FIXED POSITION
MANUFACTURING

Fabrication & Assembly

of a UNIQUE PRODUCT

by a

TEMPORARY
TEAM

Quality

Resource competition
Limited team-building
Different objectives & targets
Design - Construction

UNIT 4

Identify non-value adding activities

PROCESS
MAPPING
Standardized Processes

RIBA
BAA
BPF

Process Protocol

NPD

Production Theory

IMPLICIT

Construction

Linear sequential
Stage Gate
Parallel - Overlapping

Typology view

Incremental
Modular
Architectural
System
Radical

Firm view

Top Down
Bottom - Up

Innovation

UNIT 4

First Run Studies

Value adding activities
(improvement)
Non-value adding activities
(necessary waste)

Value Stream Mapping

LEAN THINKING

TOOLS

Kaizen (incremental & continuous)

Visual Management

Non-value adding activities

(pure waste)

vs.
7 MUDA

Kanban
Poka Yoke
6-S

SEIRI
(segregate & discard)
SEITON
(things in order)
SEISO
(clean up)
SEIKETSU
(personal neatness)
SHITSUKE
(discipline)
SAFETY

UNIT 4

TRADITIONAL
PLANNING

C.P.M.

Increase speed of tasks

QUICKNESS

Overlap tasks (fasttrack)

Reduce tasks (pre-assembly)

Control focused
Neglects improvement
Underestimation
Overestimation
Emphasis on what and NOT on why
Measurement of performance
Incapable to deal with complexity
Hidden relationship among supply chain
Task delays

UNIT 4

U/S
FLOW
MANAGEMENT

SHIELD Production
D/S

Stabilize work environment

Improve

Performance

Replace
Physical buffers
with
Planning buffers

Last Planner

Reduce

Uncertainty / Variation

Compensate different rates of supply and use between activities

Compensate uncertainty (inflow variation)
Allow differing work sequences
Limit buffers to minimum

Measure
Performance

PULL vs. PUSH

Objectives

Inputs

SHOULD

Plan failure
Execution failure

[P.P.C.]
ADJUSTED
SHOULD

WILL

DID

Status
Forecasts

CAN

Last Planner

Execute
Resources

Leading indicators
(non-financial)

SYSTEMS
(firms)

BSC

Performance Matrix

Internal

BENCHMARKING

process

learning

non-cost

PERFORMANCE
MEASUREMENT

FRAMEWORKS
(generic)

customer

internal

UNIT 5

external

cost

Lagging indicators
(financial)

financial

Competitive

Results Determinants

External
Browns Process Metrics

Determine WHAT to measure

Input Process Output Outcome

Performance Pyramid
Collect DATA
EFQM

Enablers Results

Select BEST-in-class
Construction KPIs
COMPARE
PLAN for improvement
ACT & MONITOR
RECALIBRATE

DESIGN

Company objectives
Set of measures and matrix development
Instill measurement into management thinking

STRATEGIC

PROJECT
MANAGEMENT

GENERIC
OPERATIONAL

Systems
Tools
Processes

Process

UNIT 6

Time
Plan
Monitor
Control

Quality

Effectiveness
Efficiency
Productivity
Profitability

Innovation
Work Life

Quality of
Product

Innovation
Quality of
Product

Single multiattribute
measure

CLIENT

Expectations

Efficiency

Cost
Quality

Flawed Concept
Insufficient Techniques
Strategy Implementation

CONTRACT

Value

Influence

Productivity

Management
Administration
Co-ordination

Direct

Effectiveness
Time

Cost

Quality
(soft data)

Product

FAILURE

Organization
Integration

Quantity
(hard data)

CONSTRUCTION
PERFORMANCE

Systems
Tools
Processes

Indirect

P.M.

UNIT 7

Support

Allies

Respect
Authority
Resources

Opponents
Bed-fellows

Project
Participants

Influence
Power

Upward
Management

P.M.

Superiors

Fence-sitters
Adversaries

Authority
Reward
Punishment
Expert
Referent

Plan
Monitor
Control

Visibility
Priority
Accessibility
Credibility

P1

P2

Expertise

Project support

Work challenge

Openness

Involvement
Involvement
Openness
Project performance

Project performance

Hierarchy

Joint Venture

New entity
Equity shares

Alliance

Share
Co-development
Exchange

No equity shares

Partnering

VISION

Services
Products
Technology

LEADERSHIP

PROJECT
MANAGEMENT

Supply Chain
Partnering

Partnering
(Strategic alliance)

Contractor

Client

Client

Contractor

Contractor
Subcontractor

Supplier
Manufactu
rer

Designer

UNIT 8