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Transcript
Looking for Innovative ways to
Manage Projects During the
Global Financial Crisis
Dr. Abdulaziz A Bubshait
Dean, College of Environmental Design
Chairman, Department of Construction Engineering &
Management (A)
King Fahd University of Petroleum & Minerals
Dhahran, Saudi Arabia
1
Presentation outlines
• Definitions
• Financial Status & the Present
Conditions
• Innovative Ways to Manage Projects
• VICTORY Model
• Closing Remarks
2
Values of Capital Projects
in Arabian Gulf countries 2008-2013
Company/Country/Region
Value of Capital Projects
Kingdom of Saudi Arabia
$675 Billion
Rest of Gulf Region
$2.225 Trillion
Total Value of Capital
Projects
$2.9 Trillion
October 20, 2008
3
?
4
5
6
Changes
What is the effect of Global financial crisis on
construction industry?
7
Economical Impacts
Jan 2005- Dec 2008
Oil prices:
$40-$ 147-$60
Many Mega Projects
High development rate
8
Economical Impacts
Jan 2005- Dec 2008
World Economical Recession
Reduction of 58% in the value of Dollars
Inflation rate 10.4% (April 2008 SA), 13.8% Qatar
Inflation control Recession control
High cost of Construction Materials (prices 250% up)
Scarcity of Engineers/Skilled Labor  Glut of workers
Escalation of lands Prices (200-300%)decline in
prices
What is the Effect of Rapid Changes
on construction Industry
9
October, 2008
10
11
12
13
14
•
•
•
•
•
•
Where are we heading to?
Projects cancellation?
Projects Delay?
Difficulties in Project Financing?
Cost/Budget overrun?
Quality?
Bankrupts/ Projects failure?
15
Integration
Time
Scope
Cost
Project
Management
Quality
Risk
Human
Resource
Procurement
Communications
Innovative Methods to manage
Projects
1.
2.
3.
4.
Effective utilization of Technologies
Contract Types/Risk Allocation
Quality Improvement
Victory Model
17
Effective Utilization of Technology:
e-project Management
.
.
.
19
20
Doha International Airport, Qatar
21
Tools for Improvement
Project Management’s Value Practices
1.
2.
3.
4.
5.
6.
7.
Project Definition Rating Index (PDRI)
Schedule Optimization
Scope Control + Change Management
Constructability
Lessons Learned
Value Engineering
Benchmarking
22
CII Benchmarking System
When To Use Best Practices
Optimum Time
For Best Practices
HIGH
HIGH
DBSP
Proposal
Design
Procurement
Construction
Start-Up
LOW
LOW
24
PROJECT PROGRESS
Min
Min
Types of Contracts
Lump Sum
Bill of Quantities
Owner's Flexibility
Owner’s Control
Lump Sum + Variation
Schedule of Rates
Cost + Fixed Fee
Max
Max
Cost + % Fee
Min
Max
Firm
Client‘s Risk
Contractor's Incentive to Perform
Client’s Project Definition
Max
Min
Changeable
Project Schedule Duration vs.
Type of Contract
Contract Type
5
Engineering
Required
4
to Start
Construction
3
2
Construction
Start of
Construction
Project
Completion
1
Project Duration
1. Cost Reimbursable w / %Fee
2. Cost Reimbursable w / Fixed Fee
3. Cost Reimbursable w / Incentive
4. Guaranteed Maximum Price
5/23/2017
5. Lump-Sum Fixed Price
26
“Continual Improvement”
Continual improvement is a permanent
objective of the organization.
Example of Innovative Project Management
• ُ
System:
CDPM
Project Management
+
Total Quality Management
=
Customer Driven Project Management
28
CDPM Requires a T Q M
Environment
•
•
•
•
•
•
•
openness,
honesty,
trust,
communication,
involvement,
Ownerships
innovation
•
•
•
•
•
•
pride of workmanship
accomplishment
individuality
Creativity
strategic thinking, and
personal commitment to be
the "best.“
It must include the entire organization and be
shared by everyone in the organization.
29
VICTORY
Environment focused on total customer satisfaction
Vision and the leadership to make it happen.
Involvement of everyone and everything.
Continuous improvement system.
Training and education.
Ownership.
Rewards and recognition.
Years of support and commitment.
30
VICTORY
VICTORY
VICTORY
VICTORY
In Closing
CHANGE IS IMMINENT
• ENGINEER IT
• PREPARE FOR IT
• RESPOND TO IT
OTHERWISE
BE PREPARED TO
PAY FOR
IT