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What can we learn from the
Hoover Dam project that
influenced modern project
management?
INTERNATIONAL JOURNAL OF PROJECT ...
Index
 Introduce
 Video
 Abstract
 Background
 History of the Hoover Dam project by project phases
 Hoover Dam Proje...
Introduction
 Location: Clark County/ Arizona, US
 Duration: 1931 ~ 1936 (2 yrs earlier)
 Life cost: 112 person
 Cost:...
Introduction
Why Hoover Dam is so special?
Reason1 - Breakthrough
• Never built such large dam before
• Techniques were un...
Video
 One is from the history aspect
 One is from the construction aspect
Abstract
 This paper examines project and program management
practices applied to the building of the Hoover Dam,
and dis...
Background
The greatest engineering and construction projects
In the Great Depression
 Completed in 1936
 Two years ahea...
History of the Hoover Dam project
by project phases
Conceptual
phase
Planning,
execution
and
construction
phase
Close out
...
History of the Hoover Dam project
by project phases
 Colorado River Compact
 In Black Canyon
 dividing generated electr...
History of the Hoover Dam project
by project phases
Frank T. Crowe
 Work on the foundation
 Technical and productivity i...
History of the Hoover Dam project
by project phases  The dam and power house were
turned over to the Interior
Department ...
Hoover Dam Project challenges
and innovative management
Human
resources
Innovative
project
management
There are various is...
 Economical and managerial challenges
 Ensuring the profitability of the project
 Determining the hydroelectric power r...
 Government relations
 Hoover Dam project was one of the first examples
of a partnership between public and private sect...
 Innovative resources allocations
 Unbalanced bid
 Technological innovations
 Overhead cableway
 Jumbo Drill
 Concre...
 Human Resources
 Managing workers relations
 Pushing workers on output
 Taking a non-negotiation stance with unions
...
Lessons learned from comparing megaproject
framework by the Department of Energy (DOE)
Method
 Frame Work developed by th...
 Clear define everything (1/6)
 Project Champion (2/6)
 Relationship (3/6)
 Leadership (4/6)
 Contract (5/6)
 Govern...
Clear define everything (1/6)
DOE
1. Project sponsors know what
they need and afford.
2. Has a purpose and benefits
are cl...
Project Champion (2/6)
DOE
Has one project champion
whose position and behavior
can benefits the project.
Hoover Dam
Agenc...
Relationship (3/6)
DOE
Open communications, mutual
trust, and close coordination are
maintained between
owner/users and pr...
Project manager (4/6)
DOE
1. Experienced project
manager
2. Project builder, possesses
the requisite technical,
managerial...
Contract (5/6)
DOE
1. Contract incentives are clear
and unambiguous,
appropriate to the
performance objectives.
2. Adequat...
Government(6/6)
DOE
The half life of the political
sponsors that decided to
proceed with the project
exceeds the half life...
Conclusion
 Project need to satisfying legislative requirements as the
result of which challenges can overcome by the par...
Thank for your attention.
Thank for your attention.
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Transcript of "What can we learn from the hoover dam"

  1. 1. What can we learn from the Hoover Dam project that influenced modern project management? INTERNATIONAL JOURNAL OF PROJECT MANAGEMENT VOL.32(2014) P.256-264 YOUNG HOON KWAK, JOHN WALEWSKI, DANA SLEEPER AND HESSAM SADATSAFAVI 102034550 簡翊真 102034611 董咨均
  2. 2. Index  Introduce  Video  Abstract  Background  History of the Hoover Dam project by project phases  Hoover Dam Project challenges and innovative management  Lessons learned from comparing megaproject framework by the Department of Energy (DOE)  Conclusion
  3. 3. Introduction  Location: Clark County/ Arizona, US  Duration: 1931 ~ 1936 (2 yrs earlier)  Life cost: 112 person  Cost: $ 833 million with inflation  Length: 379m, Height: 221.4m, Width: 200m  Company: Six Companies, Inc.  Purpose: control floods, provide irrigation water and produce hydroelectric power for Nevada, Arizona, and California.
  4. 4. Introduction Why Hoover Dam is so special? Reason1 - Breakthrough • Never built such large dam before • Techniques were unproven Reason2 – Time limit • Get fund if not on time • Built the road on canyon before start
  5. 5. Video  One is from the history aspect  One is from the construction aspect
  6. 6. Abstract  This paper examines project and program management practices applied to the building of the Hoover Dam, and discusses how these factors contributed to the establishment and evolution of modern project management principles, tools, and techniques.
  7. 7. Background The greatest engineering and construction projects In the Great Depression  Completed in 1936  Two years ahead of schedule and under budget
  8. 8. History of the Hoover Dam project by project phases Conceptual phase Planning, execution and construction phase Close out phase
  9. 9. History of the Hoover Dam project by project phases  Colorado River Compact  In Black Canyon  dividing generated electricity Fourth version of the Boulder Canyon Project Act 1920 1928 12190419
  10. 10. History of the Hoover Dam project by project phases Frank T. Crowe  Work on the foundation  Technical and productivity innovations  Electric lighting  Aerial tramways Planning, execution and construction phase 1931 General Superintendent 30192919
  11. 11. History of the Hoover Dam project by project phases  The dam and power house were turned over to the Interior Department in February 1936, 26 months ahead of schedule and $15 million under budget.  Six Companies, Inc. was also able to overcome many obstacles in the construction of the dam and secure a profit of $13 million. Close out phase 1936 35193419
  12. 12. Hoover Dam Project challenges and innovative management Human resources Innovative project management There are various issues, including organizational, managerial, planning, and implemental challenges, obstacles, solutions, and suggestions related to the Hoover Dam project. Strategic value creation
  13. 13.  Economical and managerial challenges  Ensuring the profitability of the project  Determining the hydroelectric power rate  Dividing the water and power to seven Basin states  Supporting the construction activities  Safety and health issues Hoover Dam Project challenges and innovative management Strategic value creation
  14. 14.  Government relations  Hoover Dam project was one of the first examples of a partnership between public and private sectors  Joint ventures  Foremost among innovative managerial solutions was the employment of a joint venture involving eight different firms, organized into six partners. Hoover Dam Project challenges and innovative management Strategic value creation
  15. 15.  Innovative resources allocations  Unbalanced bid  Technological innovations  Overhead cableway  Jumbo Drill  Concrete mixing plant Innovative project management Hoover Dam Project challenges and innovative management
  16. 16.  Human Resources  Managing workers relations  Pushing workers on output  Taking a non-negotiation stance with unions  providing healthcare Special medical dispensaries  lack of safety programs Human resources Hoover Dam Project challenges and innovative management
  17. 17. Lessons learned from comparing megaproject framework by the Department of Energy (DOE) Method  Frame Work developed by the Department of Energy (DOE) Four Major phases:  Key factors that were common to large construction projects delivered successfully from the standpoint of cost, schedule, and scope. Purpose  Checklist can be used in different types of projects as a benchmark against generally accepted characteristics of successful project. Preconcepti on Conception Execution Closeout
  18. 18.  Clear define everything (1/6)  Project Champion (2/6)  Relationship (3/6)  Leadership (4/6)  Contract (5/6)  Government (6/6) Condition cited as essential to success by DOE & Hoover Dam project
  19. 19. Clear define everything (1/6) DOE 1. Project sponsors know what they need and afford. 2. Has a purpose and benefits are clearly defined. Hoover Dam 1. All the essential need understood by both public and private agencies. 2. All revenue were divided long before the operation of the dam.
  20. 20. Project Champion (2/6) DOE Has one project champion whose position and behavior can benefits the project. Hoover Dam Agency maintain a close relationship with parties, state and labors. For instance: • Address conflicts between public against private interests and states benefits. • Deal with the strike problem. • Secure adequately annual funds.
  21. 21. Relationship (3/6) DOE Open communications, mutual trust, and close coordination are maintained between owner/users and project. Hoover Dam Government (Parties, Federal..) Bureau of Reclamation Contractor of the project ( Six Companies, resident construction engineer…)r
  22. 22. Project manager (4/6) DOE 1. Experienced project manager 2. Project builder, possesses the requisite technical, managerial, and communications skills, and is brought into the project early. Hoover Dam 1. Interior secretary : addressing financial and political considerations of the project 2. Commissioner of the Bureau of Reclamation : playing the role of project champion . 3. Resident construction engineer : strengthen the chain of command between site superintendent and company's senior management.
  23. 23. Contract (5/6) DOE 1. Contract incentives are clear and unambiguous, appropriate to the performance objectives. 2. Adequately compensate the contractor for the use of resources, risks. Hoover Dam 1. Construction phase is divided into major sub-phase and deadline were set for each one of them. 2. Penalty for each delay For instance: • The deadline for diversion of the Colorado River was set as October 1st, 1933. Had to pay $3000 for each day passing this deadline.
  24. 24. Government(6/6) DOE The half life of the political sponsors that decided to proceed with the project exceeds the half life of the project. Hoover Dam Mainly support by federal government from the initiation to the final.
  25. 25. Conclusion  Project need to satisfying legislative requirements as the result of which challenges can overcome by the parties involved.  Both Bureau of Reclamation and Six Companies, Inc. at the field level and the executive level.  Ensuring the construction are review board which minimized rework and delay during construction.  Establishing a clear chain of command in the owner and contractor.  Securing adequate annual funding and relevant legislative and regulatory facilities.
  26. 26. Thank for your attention.
  27. 27. Thank for your attention.
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