Failure in construction due to ineffective project management information.final

Essam Mohamed Lotffy, PMP, CCP MEP-Construction Manager, Trojan Holding

P.O. Box 7856, Abu Dhabi UAE

[email protected]

Frank R. Parth, MS, MSSM, MBA, PMP CEO Project Auditors

P.O. Box 80688, Rancho Santa Margarita, CA, USA

[email protected]

Essam, Biography • Essam Lotfi is a Construction Manager-MEP at Trojan general contracting in Abu Dhabi,

UAE.

• BSc. in Electrical Engineering, Power Distribution through Zagazig University, Egypt since 2001. Pursued and achieved his certificates in Project Management (PMP®) from PMI-USA since 2013, and certificate in Cost Management (CCP®) from AACE International since june-2014.

• 14 years extensive hands on experience in various aspects of projects and project management within maintenance, power distribution networks monitoring and supervision and construction projects as well.

• Authored, Co-Authored at PMWorld Library, PWLJ.

• Volunteered at PMI-Global Congress EMEA-2014 – Dubai, 5th to 8th May 2014.

• Technical presentation at PMI-AGC 15th International conference –Bahrain 19th to 21st January 2015.

• Technical presentation at 54th AACEi-SF Bay Annual Western Winter Workshop, Lake Tahoe, Nevada, USA

• Independent Project Management and cost engineering/Control Instructor.

Frank, Biography • Frank Parth, MS, MSSM, MBA, PMP is the President of Project Auditors LLC, and a past

member of PMI’s Board of Directors.

• After 15 years in aerospace designing satellite systems he founded Project Auditors LLC

in 1994.

• He has created PMOs and designed effective project management processes for

multiple organizations around the world.

• Mr. Parth is a guest lecturer at the University of Southern California Marshall School of

Business, the University of California, Irvine, and at the American University of Sharjah

(AUS) in the UAE.

• He has co-authored or contributed to multiple books in project management, has

published numerous papers in project management and systems engineering, and is a

regular speaker at PMI Congresses and AACE Conventions.

• He is actively involved with PMI, serving on local and national committees and was

PMI’s Project Manager for the Standard for Program Management, 2nd edition

published in 2008. He is currently a core member of the team developing the 6th

edition of the PMBOK Guide.

• What is a PMIS?

• Why PMIS in Construction Projects?

• What is the impact of Ineffective PMIS?

• How to Establish an effective PMIS?

Manually or Automatically

Integrated

Tools

Techniques

An information system consisting of the tools and techniques used to gather, integrate, and

disseminate the outputs of project management processes. It is used to support all aspects of the

project from initiating through closing, and can include both manual and automated systems. As

of PMBOK 5th Edition

Initiating Planning Executing Monitoring

& Controlling

Closing

What to Do

When to Do

Communicating work directions in construction

projects

Risk.

Completion Forecast.

Overall Project status.

• Unfortunately most of project managers in construction projects operate on the philosophy that if some information’s is good, more better.

• More Dial, More color, more data on screen to point where there is so much clutter on the dashboard.

• Performing organizations should have a pre-defined for exactly what data to be communicated and

how to be communicated through the project life cycle.

Is you organization using PMIS in plan and control capital construction

projects?

• The core competency of a project manger through the construction project life cycle is to assure proper flow of information to all project stakeholders in the most effective and efficient manner possible

– This is where the value of an effective arises.

• Communicating the required work on a construction site is of much more immediate importance than regularly scheduled updates to higher level management

– A good PMIS does both

Why PMIS in Construction Projects?

• Management in the performing organizations tends to assume that the information from the project manager is accurate and complete.

• Unfortunately this assumption continues until they become aware of a major problem on the project.

Effective Project management Information System is the right approach to assure proper flow of information through the construction project life cycle.


• The value of adopting at the beginning of a construction project:

– With a project manager can communicate the required works to project teams properly.

– With a project manager can give the management and high level stakeholders accurate reports.

– With project/program mangers can have a robust data base of all related documents required to control the construction project.


Core Element of is Proper

communication Flow

Proper Communication Management

Process

Communication Management Process

Identify Message Content (WHAT)

Identify Message Audience (WHO)

Identify Message Timing (WHEN)

Identify Message Format (HOW)

Create Message Approve Message

Obtain Message Feedback

Communicate Message

Message Approved

?

YES NO

• The flow chart illustrate how the information is identified and delivered to project’s team without discrepancies.

• A single source of information.

• A single source of approval before distribution to avoid wasted or duplicated efforts.


“Ineffective communications is the primary contributor to project failure one third of the time and had a negative impact on project success more than half the time.”


What is the impact of Ineffective PMIS?

Lack of Information management system

Lack of availability

of integrated information.

Improper communicati

on process

Project Failure


Communicating the information's

between team members thru

emails without any centralized database

Control logs

RFI

Shop drawing

logs

Procurement logs

Subcontractor logs

Daily correspondences


“High-performing organizations (those completing an average of 80 percent or more of projects on time, on budget and within goals) create formal communications plans for nearly twice as many projects as their lower performing counterparts (which complete fewer than 60 percent of projects on time, on budget, and within goals).”


• A missing or a poorly designed information management system will affect the project success and increase the risk and threats to the performing organization and their strategic plans. • The relation between the project’s information management system

and construction collaboration arises.

Construction collaboration


Performing organization’s

team members

Project’s stakeholders


• The main feature of construction collaboration is that it

facilitates the flow of information's and proper communications

by:

• replacing the project data that is being held by individuals

with shared centralized and robust storage of data as

shown in the previous slide.

• sharing the information that is being required by project

stakeholders with relevant authorization level.

How to Establish an effective PMIS?

• The fact is that any performing organization should have an

effective project information management system that provides a

multi-project analysis and reporting capability to enable top

management to compare project actual status to the baseline.

• An integrated and comprehensive project information

management system improves the project’s information flow and

accuracy to eliminate redundant files and poor data.


• This will consequently reduce the time and effort being spent to

obtain timely and accurate status.

• The following cause-effect diagram illustrates the requirement to

have an Integrated Information management system globally

accessible across all stakeholders with regular updates and data.


• This diagram shows that the main challenge for any performing organization is to

have a cohesive project .

• should be globally accessible by all project stakeholders with regular

updates to assure the project success.

• is often thought of as just a software tool that the organization buys to

track schedule.

• should be treated as a system consists of tools and processes to collect

data, analyze it, and communicate it effectively.


• The Association for the Advancement of Cost Engineering

(AACE) in Recommended Practice RP60R-10 offers strong advice

on how the project controls approach should be designed and

implemented.


• Assure effectiveness of .

• Assure global accessibility of real time data.

• Assure transparency, consistency and velocity.

• Assure knowledge expansion.

Assure effectiveness of

• Introduce interactive tools.

• Development of Behaviors.

• Creation of communication cube.

Assure global accessibility of real time

data

• Design information system compatible with organization

systems and new data warehouse.

• Integrate legacy tools.

• Roll-out to all stakeholders.

• Comprehensive training to all relevant stakeholders.

Assure transparency, consistency and

velocity

• Establish reporting tools.

• Establish Different information sharing tools.

Assure knowledge expansion

• Establish business intelligence channels.

• Scan & Filter business intelligence information.

Conclusion

The goal of this technical paper was to gain a better understanding of the

effectiveness of a project management information system (PMIS) in construction

and its contribution in adequate decision making using proper information flow

throughout the project stakeholders, a core competency for any project manager.

The study was tending to assure that the most significant approach is the setting

up and effective project management information system (PMIS) to avoid spending

more time communicating rather than managing. Every performing organization

should have standards and per-defined format for project data presentations to

prevent project manager’s form implementing best light, glossing selectivity

reports.

Failure in construction due to ineffective project management information.final

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