White paper – engineering & construction project management principles
1. Introduction
This paper outlines an approach to achieving effective management governance
of programmes and projects, ensuring tight control of costs and risks and delivery
of work to schedule, budget and specification. The governance concepts adopted
are based on best practice employed by industries undertaking major
infrastructure projects and professional bodies such as the Association for
Project Management (APM), PRINCE and the Office of Government Commerce
(OGC).
Governance is provided through implementation of a Project Management
Framework. This framework provides the necessary process, system, people and
organisational improvements to enable effective control and delivery of work
across a portfolio of minor and major projects/programmes.
2. Project Management Framework
2.1 Aim
Implementation of Project Management Framework (PMF) must be viewed as a
substantial business change programme, taking many months to define and then
implement across a business. Successful implementation will provide improved
project control and delivery. It will also provide consistency and standardisation
of approach, improved visibility of performance and predictability of project
outcome. This will impact not just those within a business, but also working
relationships with its contractors. From a people perspective, the PMF will also
ensure the development of professional standards and the development of
project management capability across the organisation involved.
2.2 Elements
The PMF will define and integrate the 3 fundamental elements of project
management: processes, systems and people.
Consistent application of process is key to effective project status reporting,
facilitating control and therefore improved delivery of projects. This will involve
defining and promulgating top level lifecycle management process (e.g. GRIP in
Network Rail, LCM in BAES) to control investment and programme risk, as well
as a project control cycle process to ensure effective day to day management of
estimating, costs, planning, subcontractors, change control and project risks. The
control cycle will need to be flowed down to contractors where relevant, including
specification of reporting requirements, work breakdown/cost breakdown
structures etc.
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White paper – engineering & construction project management principles
The Seven Elements of the Project Control Cycle
Establish Baselines
Prepare & Plan, schedule Authorise
organise And cost work
Change Manage
management change Manage Risk
Manage and control
work
Work
Review and management
control
Enterprise Programme Solutions Ltd All rights reserved © 2008
EPS Consulting
Effective management information systems underpin and enable efficient project
control and delivery by providing the early warnings necessary to avoid
deterioration in schedule and cost performance. In essence – the “radar” for the
project. This will involve ensuring new or existing systems accurately automate
well designed processes to accelerate the visibility of project performance threats
and allow the pro-active interventions to mitigate any consequences BEFORE
too much time or money is wasted.
If new systems are required, the most cost effective method is to tender and
deploy those that are able to be integrated with each other and within an industry
standard central repository such as Oracle or MS SQL Server. Essentially the
case for an enterprise data model. Only with such an architecture can an
organisation expect to get rapid visibility of project performance across different
functional management tools, often made by different manufacturers. Systems
are needed for estimating (e.g. RIB), planning (e.g. P3e), cost control (e.g.
Oracle Projects), earned value management (e.g. Cobra) and risk management
(e.g. ARM).
Excellent project management skills are essential for successful project delivery.
This requires matching personal skills sets to requisite project roles and
developing peoples’ capability in a structured, progressive and professional
framework. This can be achieved through establishing a competence framework,
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White paper – engineering & construction project management principles
which initially needs to address basic skills and systems training to support the
fundamentals of implementing the PMF. In the longer term, the focus can shift to
developing the professional disciplines of the wider project management
community, e.g. commercial, engineering, estimating, planning, procurement etc.
3. Implementation timescales
Typically a PMF may be developed and rolled out in 3 phases:
Phase 1 (definition) will involve defining the basics of the framework specific to
an organisation’s work. This will cover assessment of current capabilities across
process, systems and people; authorisation of business case for the PMF;
establishment of PMF project team; definition of core processes; compilation of
new system specifications and tendering for them; definition of revised
management arrangements for contractors; and definition of a competence
framework and associated training and development programme.
Phase 2 (roll-out) will involve preparation and initial implementation of the PMF
across targeted areas of an organisation. This will cover implementation of core
processes; procurement, testing, integration and go-live of new systems;
establishment of revised management arrangements for contractors; user
training based on the competence framework; and a period of specialist support.
Phase 3 (consolidation) will involve the bedding in of the PMF into the business.
This will cover periodic maturity assessments to judge the rate of take up of the
PMF; continuous improvement programmes; wider professional development of
project staff; and benchmarking of capability with similar organisations. During
this phase an organisation may then wish to consider roll out of the PMF to other
parts of its business.
In all, the above programme could involve up to 3 years work, depending upon
the extent of implementation, current capability levels, new systems/processes
deployed and duration of phase 3.
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