kandil_sameh_cpmpart 5 _b

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SECTION 2: TUTOR TO COMPLETE

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ASSIGNMENT / CASE STUDY FORM

Student’s Name

Individual question marks

Assignment/ Case Study Name

Rethinking project Management

Sameh Kandil Mohammed Ibrahim

AR50383 Assignment Name: (Sameh Kandil Mohammed Ibrahim)

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Contents

1.0 Executive Summary ..................................................................................................................... 3

2.0 Debate about Porject Success Factors ...................................................................................... 4

3.0 Importance of Proposed Directions ........................................................................................... 3

3.1 Building Information Modelling (BIM) .......................................................................................... 4

3.2 Community Involvement ............................................................................................................ 5

3.3 Project Management Staff Motivation ........................................................................................ 5

3.4 Stakeholders’ Liaison .................................................................................................................. 6

3.5 Key Performance Indicator (KPI) ................................................................................................ 7

4.0 References .................................................................................................................................... 8

List of Figure Figure 1 Proposed Directions…..………………………………………………………………………………………………….3 Figure 2 Belassi and Tukel framework.…………………………………………………………………………………..……….4 Figure 3 The Editions of the PMBOK.…….……………………………………………………………………………..……….6


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1.0 Executive Summary

The project management in form of controlling time, cost, quality and safety are essential tool for delivering a successful project; however, these factors can’t guarantee alone the success of any project. There are other factors/directions can contribute in that success and CPM Ltd. has to implement them in the future projects. These factors/directions are; -

Figure 1

1. BIM (Building Information Modelling); CPM has to advice the client to force into project contract the use of BIM technology, which has the ability to build the project virtually before it gets build out in the site and thus BIM gives a chance to discover early the design errors and clashes and that enable the client to gain the benefits of minimizing the cost and time impacts resulted from the design errors and lack of design coordination, which are always being discovered during the construction stage.

2. Community involvement; CPM has to make sure that the needs and concerns of the community will be

addressed in the project design.

3. CPM’s staff motivation; CPM has to recruit the best quality staff and then it is necessary to keep them

motivated through training, financial rewards and empowerment.

4. Stakeholder’s liaison; CPM has to make sure the designers contact all the project stakeholders to get their needs and expectations in order to be addressed in the project design.

However, still time, cost and quality factors are so important so a proposed mechanism for controlling them will be shown below (5th direction);

5. Key performance indicators (KPIs); CPM has to use KPIs, an incentive mechanism, to monitor the

design/supervision performance and advice the client to force this mechanism into the contract. This mechanism revolves around the four of safety, quality, budget and schedule.

Finally, this report recommends CPM Ltd to implement the aforementioned five factors/directions in the future in order to ensure that CPM is capable of taking the largest and most complex projects globally. The proposed directions have major contribution in project success and some of them were already implemented in CPCT project and proved its efficiency for delivering a successful project.


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2.0 Debate about Project Success Factors

There is a debate about if providing project control system including schedule, cost plan and quality plan is the gateway for project success or there are additional factors contributing in getting a successful project. According to Belassi and Tukel (1996:141), there are many factors outside the control of project management team, which could also determine the project success. Belassi and Tukel (1996:143-144) provided a framework (figure 2) for all factors that determine the project success;

Figure 2 Belassi and Tukel (1996:144)

In section 3 of this report, an analysis for the importance of the colour marked factors/directions will be performed and then the effects of these factors/directions on CPCT project and for future projects will be described. 3.0 Analysis and Effects of Proposed Directions 3.1 BIM (Building Information Modelling)

3.1.1 Direction/factor Analysis

According to BIM taskforce members (2009:21), BIM is an important revolution in the construction industry. BIM can reduce cost/time, reduce rework and increase efficiency.

BIM is ‘’ a digital representation of physical and functional characteristics of a facility. As such it serves as a shared knowledge resources for information about facility forming a reliable basis for decisions during its life cycle from inception onward’’, BIM taskforce members (2009:3).

The benefits of BIM introduced by BIM taskforce members (2009:7-10);

• Revealing problems

BIM allows the designer to view the building from all angels and thus discover the problem at earlier stages and that will enable the client avoiding design errors claims and the changes orders, which are always costly and cause delays to the project completion date.

• Improving coordination

BIM improves coordination among different design team members (civil, architectural, etc.) to discover the clashes and make all the required design changes during the design stage only.

• Client satisfaction

Visualizing the design makes the clients more satisfied and confident that their requirement will be addressed.


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3.1.2 Direction/factor Effect on CPCT Project

BIM wasn’t used in the project. 3.1.3 Direction/factor Effect on Future Projects

The use of BIM has to be forced by the contract. BIM can reduce change orders and secure fewer claims and disputes resulted from lack of coordination, design errors and omissions, which always have severe time and cost impacts. Dubai Municipality has instructed officially all the designers to use BIM for architectural and MEP works, Dubai Municipality (2013).

3.2 Community Involvement

3.2.1 Direction Analysis

As stated by Belassi and Tukel (1996:145), public attitudes towards the project are one of the external factors to the organization but have an impact on project success. Hancock (2008:10-17) confirmed the importance of community involvement otherwise groups advocating greater social and environmental awareness may target the project. The Twyford Down project caused in massive protests in mid of 1990.These protests let to cancelling the project and the bankrupt of the main contractor, Hancock (2008:10-17).

The community can be involved through many methods such as;

• Community and environmental group representative have to be considered as one of the project stakeholders so they can address t the design team the community and environmental needs and requirements, De Wit (1988:167).

• Establish project web site to let the community members and environmental groups members know about project aspects, updates and to get their queries answered online.


Community residents were part of the project stakeholders so all their requirements were addressed. 3.2.3 Direction/factor Effect on future Projects

PMC has to ensure the involvement of the community representative who can inform about the community needs and expectations. Also PMC has to ensure that communication channels will be produced on the web to keep the community informed about the project.

3.3 Project Management Staff motivation


Project management staff is an important factor contributing towards project success. It is people who deliver the projects especially when it comes to the project management; it is the PM team members that count, Davies (2001:189). As confirmed by Mir and Pinnington (2013:212), motivation of CPM team members through the best HRM practises enhances the project management success and thus the project success. Motivation can be done as advised by Hancock (2007:5-3) through;

• Offering development and training programmes to develop PM staff skills.

• Offering competitive salaries packages.

• Increasing PM staff’s remuneration annually by using the staff appraisals.

• Allowing for employees’ empowerment, which has an effect in increasing their commitment towards the firm, Hancock (2007:9-9).

Despite the importance of staff motivation, yet the recruiting of the best quality staff is the first step to enhance the Project management firm, Hancock (2007:4-3). In particular the project manager, who has to possess technical and administrative skills, as confirmed by Belassi and Tukel (1996:145).


The staff led the project to be successful because PMC had recruited the best staff and had paid competitive salaries to them. Also PMC had kept the staff motivated by awarding annual pay increase. 3.3.3 Direction/factor Effect on Future Projects

PMC has to ensure that the training will be provided for the staff. Also PMC has to activate the empowerment in order to increase the staff motivation.


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3.4 Stakeholders Liaison


Stakeholder’s liaison is an important step towards project success. Project stakeholders have to be contacted officially to understand their needs and expectations in order to be reflected in the project design, Burke (2013:92). Sometimes the project can be considered successful for the project teams such as; contractor, client, different authorities but still can be unsuccessful for the operator so that it is recommended to liaise with all project stakeholders of all the project life cycles.

Due to the importance of stakeholder management for project success, it has been added to PMBOK in its latest edition (version 5) as published by Human Performance Consulting Company (2012).

Figure 3


A stakeholder management team was on board and they liaised with all the project stakeholders. 3.4.3 Direction/factor Effect on Future Projects

PMC has to continue ensuring that all stakeholders’ needs and expectations will be addressed during the design stage.

3.5 Key Performance Indicators (KPIs) 3.5.1 Direction/factor Analysis

According to Mir and Pinnington (2013:210), KPIs is a factor contributing towards the success of any project. The design consultant’s performance can be formally monitored by CPM Ltd. during the delivery life cycle (design/supervision). The performance will be reviewed against key performance indicators (KPIs) across the following four key performance areas;

• Safety, health and environment. • Cost and budget management. • Schedule management. • Quality.

KPIs are an incentive mechanism that is retaining 5% of the consultant agreed fees. The retaining amount will be released to the design consultant annually according to his recorded performance in the four performance areas. The performance will be calculated as shown below; Firstly, the retaining amount (5 %**) will be distributed over the fours areas as shown in the below payment linked KPIs table;


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**Designer fees = 1,350,000 £.

**Retaining amount = 1,350,000 £ * 5% = 67,500 £.

Secondly, the KPI score will be calculated as shown below;

a) Formula:

Performance % = total of actual construction cost / total of assigned budget * 100

b) Thresholds:

Warning zone

Lower Threshold limits Ideal Threshold Limits

Lower Threshold limits Warning zone

Performance % 0-79% 80-84% 85-89% 90-110% 111-115% 116-120% 121%

KPI score as % 50 90 95 100 95 90 50

c) Calculations:

If the actual cost is 31.7 million and budget cost was 31 million so Performance % = 31.7/31 = 102.25% which means according to the threshold table, the KPI score=100.

Finally, in the below table the consultant entitlement will be determined;


KPI was used in CPCT project and it was a useful tool to motivate the designers to achieve cost, time and quality targets with taking into consideration the workforce safety. 3.5.3 Direction/factor Effect on Future Projects;

The use of KPI has to be forced by the contract. KPI is a monitoring / incentive tool for delivering a successful project.

KPI Type KPI Distribution % KPI Value

Safety Significant Injury Frequency Rate (SIFR) Rolling 22% 14,850

Budget Project Predictability of Cost 34% 22,950

Schedule Project Commencement on Site from Completion of Tender Documents

22% 14,850

Quality Deliverables Defects 22% 14,850

Total 100% 67,500

KPI Type KPI Distrib.% KPI Value (a)

Performance KPI Score % (b)

Achieved KPI Amount (c)=(a)*(b)

Safety Significant Injury Frequency Rate (SIFR) Rolling

22% 14,850

Budget Project Predictability of Cost 34% 22,950 102.45% 100 22,950

Schedule Project Commencement on Site from Completion of Tender Documents

22% 14,850

Quality Deliverables Defects 22% 14,850

Total 100% 67,500 22,950


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4.0 References

1- A Human Performance Consulting Company, 2012 (viewed 2014-02-04). The Project Box (online). United States of America. Available from: http://www.theprojectbox.us/2012/09/pmbok-5-and-the-new-knowledge-area/

2- Burke Rory, Rodney. (2013). Project Management Techniques. 2nd ed. London: Burke Publishing. ISBN 978-0-9876683-0-1.

3- BIM Taskforce Members, 2009 (viewed 2014-02-04). Building Information Modelling (online). United States of America: infoComm International. Available from: http://www.infocomm.org/cps/rde/xbcr/infocomm/BIM_Brochure.pdf

4- Belassi Walid and Tukel Oya, 1996. A new framework for determining critical success/failure factors in projects. International Journal of Project Management, 14, 141-151. ISSN 0263-7863(95) 00064-X.

5- Dubai Municipality, 2013 (viewed on 2014-02-04). BIM Implementation announced by Dubai Municipality (online). Dubai. Available from: https://docs.google.com/file/d/0B_SL34eJydTpY3hHNnQxMTlhRGM/edit?pli=1

6- Davies Terry. (2001). The real success factors on projects. International Journal of Project Management, 185-190. ISSN

S0263-7863 (01) 00067-9.

7- De Wit Anton. (1988). Measurement of project success. 164-170. ISSN 0263-7863/88/030164-07.

8- Hancock, M. R. (2008). Unit6 – AR50126: Strategy in Construction. United Kingdom: Distance Learning Unit, University of Bath.

9- Hancock M R. (2007). Unit4 – AR50124: Managing Human Resources. United Kingdom: Distance Learning Unit, University of Bath.

10- Mir Farzana and Pinnington Ahsly, 2013. Exploring the value of project management: Linking Project Performance and

Project Success. International Journal of Project Management, 202-217. ISSN 0263-7863.