Interface Management: A Systemic Approach for Projects and Organizations

Interface Management
A Systemic Approach for Major Projects
David Tain, MSc. P.Eng., PMP
©Septentrion Strategic Solutions Ltd.

Table of Contents
Uncertainties
Defining Interfaces
Interfaces and Systems
Understanding Interfaces
Elements to Consider when Managing Project Interfaces
Interface Management Processes using the PMI framework
Case Study: Oil Sands Megaproject in Alberta
 Final Considerations - Key Takeaways

Interface - Definitions
Uncertainties
Interface: A boundary point where an interdependence
exists and a transfer of responsibility occurs
Interface
Interface
Interface
Interface Interface

Interfaces and Systems
Uncertainties
Modern Project Interface Management originates from the
influence of systems thinking in project management:
• System: Assemblage of elements (people , things, information,
etc.) grouped together to achieve a particular system objective
• Systems are logically broken down in sub-systems
• Sub-systems are formed by subsets
A project is formed 3 subsystems:
1. Project Lifecycle
2. Management Levels
3. Operational Framework

Subsystem 1: Project Lifecycle
Uncertainties
FEL-1 ExecutionFEL-3 Operations
Detailed
Engineering Construction CSU
FEL-2
Project Gates & Phases
CSU - Engagement and Interfaces in Time

Subsystem 2: Management Levels
Uncertainties
The Project
Level II: Middle
Management
Level III: Technical
Management
Level I: Senior
Management
The Business Environment
Coordinates project
technical core and buffers it
from the outside world
Provide Strategy and deal
with business environment
Responsible for the
technical content of the
project
Competitors
Government
Suppliers
Community
groups
Media
Regulator
Agencies
Economic
Climate

Subsystem 3: Project Operational Framework
Uncertainties
At the outside of the project:
• Project definition
• Operations and Maintenance
• Sales / Marketing
• Relationships with outside groups
• Ensuring adequate manpower and resources
• Ensuring adequate flow of fund
At the inside of the project:
• Realizing the desired project definition (adequate scope and budget,
quality parameters, etc.)
• Creating the project organization (organizational structure,
contractual relationships, information management, control
procedures, etc)
• Mitigating external disruptions from the environment (e.g.: timely
acquisition of material, handling relationships with unions, obtaining
regulatory approvals, informing management of financial needs)
• Logistics (e.g.: project facilities, transportation, communications, etc)

Understanding Interfaces – Traditional Approach
Uncertainties
Time Direction
Some Traditional Classifications of Interfaces:
 Analyze project / organizations based on their configuration
• Internal / external
• Organizational, contractual and physical (focus on construction projects)
• Human / Technical
• Tangible / Intangible – Hard / Soft
 Problems:
• Room for ambiguity promotes silo-based behaviors conflicts emerge
based on territoriality / positioning
• Difficulty in adapting to changes associated to:
&

Understanding Interfaces – Contingency Theory Approach
Uncertainties
Contingency School of Organization
(Organizational Theory + Project Management)
Considers 1-the nature of interrelationships in the project and 2- time:
Pooled Sequential Reciprocal
Classification
Static Interfaces
Dynamic Interfaces
Group

Understanding Interfaces – Static Interfaces
Uncertainties
Static Interface: Relationship between permanent subgroups  basic project
structure
 A project relies on at least 3 subgroups:
Pooled Interdependence  Resources are shared / Matrix Organization
Project
Direction
Project
Management
Functional
Management
Planning and
Control
Area 1 Area 2 Area 3 Engineering SCM CM Estimation Cost control Scheduling ReportingHSE
Coordination Mechanisms: Policies, plans, procedures
Etc.

Understanding Interfaces – Dynamic Interfaces
Uncertainties
Dynamic Interface: Relationship depends on how the project develops
It considers two elements:
 project lifecycle
 the pattern of activity interdependence
Sequential Interdependence  Stakeholders follow
each other
Example of coordination mechanisms: Schedule
Reciprocal Interdependence  Stakeholders must continuously interact
 Cyclical nature – units performance is mutually dependent
 Require lots of horizontal coordination
 Rely on personal contact
 Example: SCM & Engineering:
 SCM depends on engineering to understand what to buy.
 Engineering depends on SCM to continue the design based on the market availability

Understanding Interfaces – Dynamic Interfaces (Cont.)
Uncertainties
Group Interdependence  Results and knowledge are built
upon progressive interactions of the stakeholders
• convergent in nature
• Relies on Personal contact
Example of coordination mechanisms: Scheduled and
unscheduled group Meetings
Pooled + Sequential + Reciprocal
FEL-1 ExecutionFEL-3 Operations
Detailed
Engineering Construction CSU
FEL-2
Pooled + Sequential +
Reciprocal + Group
Predominant Interrelations during Development and Execution

Why is it essential to identify and control project interfaces?
Uncertainties
E=3
Imax = 3
E=5
Imax = 10
E=10
Imax = 45
E=20
Imax = 190
Imax =
𝑬 ∗(𝑬−𝟏)
𝟐
Project Complexity = f (interacting parts, uncertainty)
 Project complexity increases with amount of interfaces!!!
Possible amount of Interactions (Imax) as a function of Project Elements (E):

Why is it essential to identify and control project interfaces?
Uncertainties

Elements to Consider when Managing Project Interfaces
Uncertainties
Keep static interfaces clearly defined
 Define and agree all static subsystems (technical definition, organization, project infrastructure, etc.)
Dynamic interfaces are the most important ones  the clock is ticking!!!
 Early subsystems have a managerial dominance over subsequent ones (E.g. Design over Construction)
 Errors in early subsystems have a snowball effect in the subsequent ones
Level of control will vary depending on the stage of the project
 Personnel issues (conflicts, leadership, etc) will evolve and need to be moderated considering project
phase
Planning must be incremental
 Building bases for the next phase
 Details added as project advances
Major changes require their own distinctive Total Management
 Changing project phases is a major event and needs to be treated as such!
Remember:
The Main Challenge in Interface
Management is Human Interactions

Interface Management Processes using the PMI framework
Uncertainties
Interface management must follow a lifecycle approach, with well
defined processes
Initiating /
Identification
Planning Execution Closing
Monitoring & Control

Interface Initiation
Uncertainties
Objective: Interfaces are identified and interface management overall
strategy is defined based on the characteristics of the project
 Appointment of the Interface Manager & Interface Coordinators
 Establishment of an official definition of interface in the project
 Interface identification based on Project Basic documents (Bulk identification)
• Project Work Breakdown Structure (WBS)
• Contracts
• Specifications
• Interviews
 Quantify interfaces & preliminary identify risks
• Creation of the Interface Responsibility Matrix (IRM)
 Draft Interface Management Plan  identification and coordination of static and
dynamic interfaces

Interface Planning
Uncertainties
Objective: Refine interfaces information, allocate to corresponding parties
and determine communication protocols
• Refinement of the Interface Responsibility Matrix (as design is more
advanced)  eliminate unnecessary interfaces / identify new ones
• Allocation of interfaces into work packages
• Incorporation of interfaces in the project schedule (first pass)
• Integrate to schedule logic  future interface agreements
• Finalization of the Interface Management Plan, including:
• Define project interfaces & Interface lifecycle
• Define Interface Management organization
• Identify / define documents to capture interfaces in all ambits (e.g.:
communications plan, RACI matrix, BLTs, etc.)
• Define Conflict resolution process
• Define Monitoring & control strategy (tools, frequency, details, etc)
Warning!!
***Interface management plan should be part of contractual
documents***

Interface Execution
Uncertainties
Objective: Formal transfer of the interface to the appropriate parties
and drive them to closure
• Creation of formal Interface Documents
• Obtain full commitment from interfaced parties
• Align interfaces with a specific project activities / integrate them to the
schedule
Example: Interrelation Supplier S1 & constr. Contractor 1
(project Execution phase)

Interface Execution (Cont.)
Uncertainties

Interface Closure
Uncertainties
Objective: satisfy all requirements of the interface as indicated in the
Interface document.
 Information provided on time and in the format agreed
 Interface document closed  interface ceases to exist
 Subsequent activities continue

Interfaces Monitoring and Control
Uncertainties
Objective: Ensure a continuous visibility of the interface / enhance its
timely resolution
Monitoring starts as soon as an interface is identified
• The monitoring and control strategy will depend on the size and
complexity of the project
• Interface register
 Leading indicators (e.g.: look ahead) combined with lagging indicators
(performance of the interfaces)
Warning: In large projects, specialized software may be necessary to
integrate and optimize interfaces. It is very difficult to rely on
conventional tools (e.g.: MS Excel, Access, etc.):
• Interfaces can be significant (e.g. a $10B project can easily have over
5,000 interfaces)
• High potential for changes as project advances  scope reallocations,
planning adjustments, start-up strategies, etc.

Interface Monitoring & Control
Uncertainties
Example of Interface Management Monitoring & Controlling Strategy in
a large project
Report Generation
Project Schedule
Dynamic IA Reporting
(look-ahead)
Overdue
Overdue in
Less than x
days
Overdue in
> x days
Closed
IA generation Tool

Case Study: Oil Sands Mega Project
Uncertainties
Project: 120,000 bbld Production Facility
Location: Northern Alberta
• 3 Main EPC Contractors
• 6 Fabrication and Construction Contractors
• Engineering and Module Fabrication in
multiple locations within in 3 continents
Initial Estimate (end of FEL3): $4B (2008)
Interim Estimate (30% Construction): ~$7B (2012)
TIC: over $12B (2015)
What Happened??

Case Study: Oil Sands Mega Project (Cont.)
Uncertainties
The Promise: An Innovative & Efficient Interface
Management System
Interface Management Team was assembled during FEL-3
o Interface Manager
o Interface Coordinators allocated to different project areas
Module of Planning Software adapted to manage interfaces:
o Friendly user interface for Interface Agreement creation
o Easy integration of IAs with the schedule
Interface management team identified all interfaces prior detailed
engineering design phase
o Interface Responsibility Matrix
o Interface Coordinators estimated and created initial Interface
Agreements
Interface Management Plan created and approved the end of FEL-3

Uncertainties
The Reality:
Interface Management strategy and plan not fully included in contract
documents
 IM process was rolled-out to contractors after contract award
Insufficient contractual provisions for IM in sub-contractors and consultants
(logistics, support, personnel)
Contractors added change orders with additional fees associated to risks management
Different attitudes / reactions towards IM (especially LS contactors)
Weak Governance
IM function managed by Engineering Consultant involved in the design with
“oversight” support from client  Conflict of Interests
Interfaces negotiated by client in silos  contracts awarded in different times
Problems in enforcing IAs  Engineering Consultant managing Interfaces did not
have any contractual leverage over other consultant or construction companies

Uncertainties
The Reality:
Issues with the IM Management Tool
The modified tool was a prototype
Module is originally designed for Contract Management, not capable to
manage with multiple interrelations
Poor support from software provider / insufficient IT Scope definition
Reports had to be manually generated by 1 super user (bottleneck) relying
on Excel tools (Macros)
Interface Coordinators (Project Engineers with no experience in facilitation/
courses delivery) became trainers for contractors designated personnel
Neglected management of Dynamic Interfaces
 Only Engineering and Construction interfaces were visible to the IM Team
No jurisdiction of IM team over client internal processes
Interfaces with external stakeholders poorly managed:
Multiple issues with regulators and Government
Key fabrication & transportation strategy had to be modified

Uncertainties
The Reality:
Deficient project integration
Different contract architectures  different performance and progress metrics
IAs were never linked to the schedule
Project has multiple schedules from each consultant / contractor
Integrated schedule never produced
Deficient Conflict Management Strategy
High turnover in IM team due to conflicts with client and sub-contractors
Conflict Management process was designed and implemented late in the project
IM function removed from engineering consultant and transferred to competitor
in the project
Organizational Deficiencies
IM seen with different levels of importance in the project  “Power struggles”
Inadequate legitimization: IM seen as an “interference” in the Project

The devil is in the details
Final Considerations – Key takeaways
Uncertainties
Early identification is critical for the success of an interface
Traditional approaches based on project configuration are insufficient to identify and
manage interfaces
Identify and understand interdependences: Clearly define static interfaces & Manage
Dynamic Interfaces
Each interface needs to be managed by tangible mechanisms
Interface management strategy needs to be adapted to the size and complexity of the
project
Large projects require specific interface Management Strategies
Do not neglect a lifecycle approach to manage interfaces  Select a framework and adapt
it to the characteristics of your project!!
Implement a clear governance for interface Management across the project and the
organization
And always Remember:
Interfaces

Thank You!
Uncertainties

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