predicting and mitigating institutional costs in global
TRANSCRIPT
VDT-IPredicting and Mitigating Institutional Costs
in Global Projects
Raymond E. LevittAshwin Mahalingam
Department of Civil and Environmental Engineering Stanford University
What is a Global Project?
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“Global Projects”:…are large scale projects developed by owners, contractors and engineers based in two or more different countries.…are typically high-profile endeavors that involve a multitude of participating organizations contributing toward their success. …involve participating organizations whose goals, values and cultures are not completely aligned with one another, nor with the norms and values of the governmental institutions that control and influence the project’s environment
Examples of Global Projects
Intel Assembly/Test Facility US, Ireland, Malaysia, …
Intel Assembly/Test Facility US, Ireland, Malaysia, …
Planet Hollywood restaurants in Asia,
Australia and S.Africa
Planet Hollywood restaurants in Asia,
Australia and S.Africa
Bechtel on-shore gas development projects in
Alaska, the UAE, …
Bechtel on-shore gas development projects in
Alaska, the UAE, …
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VDT-I SEED PROJECT GOALS
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Carry out case studies to develop insights about the effects of conflicts in goals, values, cultures on behavior of participants in global projects
Build a proof-of-concept agent-based simulation model that can predict performance of project organizations on global projects
Use observational data and proof of concept model to support development of a substantial external proposal
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How Project Design can Improve the Outcomes of Global Projects
0%
100%
Level of InfluenceLevel of Influence
PlanningPhase
ImplementationPhase
Closeout &Learning Phase
Expenditure of Funds Expenditure of Funds
OutcomeKnowledgeProject DesignOutcome
Predictions
Scientific Challengesfor VDT-I
Existing project organization modeling and simulation tools address engineering projects, whose participants have congruent goals, culture, norms & technologies
Coordination Complexity
Production Costs
Coordi-nation CostsInstitutional
Complexity
InstitutionalCostsGlobal Projects to develop civil,
petrochemical, telecommunicationsinfrastructure etc, have conflicting goals, cultures, norms and technologies
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Points of Departure (1)
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Virtual Design Team (VDT) Research Program at Stanford: 1987-present
Developed theory, methodology & tools to optimize design of project organizations for fast-paced, product development projects
VDT Theory, methodology and tools widely disseminated
SimVision® software, based on VDT, commercialized starting in 1997
VDT Helps Managers Design their Project Organizations
Model
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Backlog
Quality
Schedule
Cost
Simulation Results
Start Fab Test& Deliver
DesignCoordination
DevelopSpecification
Insert Scan
Partition Chip
Gen Test Suite
PlaceRoute
FullChipSynth
Verify RTL
FloorPlanning
Write B1RTL
Sim GatesAssemble RTL
PhysVerifn
Verify B1RTL
Generate TestVectors
Synth_B1RTL
Activities
Start Fab Test& Deliver
Project Lead
Marketing Team Chip Architect TestEngineering St Foundry Lead
Logic DesignTeam 1 Foundry Test
EngineerFoundry Layout
Engineer
VerificationTeam
DesignCoordination
DevelopSpecification
Insert Scan
Partition Chip
Gen Test Suite
PlaceRoute
FullChipSynth
Verify RTL
FloorPlanning
Write B1RTL
Sim GatesAssemble RTL
PhysVerifn
Verify B1RTL
Generate TestVectors
Synth_B1RTL
Organization
Start Fab Test& Deliver
Project Lead
Marketing Team Chip Architect TestEngineering St Foundry Lead
Logic DesignTeam 1 Foundry Test
EngineerFoundry Layout
Engineer
VerificationTeam
DesignCoordination
DevelopSpecification
Insert Scan
Partition Chip
Gen Test Suite
PlaceRoute
FullChipSynth
Verify RTL
FloorPlanning
Write B1RTL
Sim GatesAssemble RTL
PhysVerifn
Verify B1RTL
Generate TestVectors
Synth_B1RTL
Communication
Start Fab Test& Deliver
Project Lead
Marketing Team Chip Architect TestEngineering St Foundry Lead
Logic DesignTeam 1 Foundry Test
EngineerFoundry Layout
Engineer
VerificationTeam
DesignCoordination
DevelopSpecification
Insert Scan
Partition Chip
Gen Test Suite
PlaceRoute
FullChipSynth
Verify RTL
FloorPlanning
Write B1RTL
Sim GatesAssemble RTL
PhysVerifn
Verify B1RTL
Generate TestVectors
Synth_B1RTL
Rework
Start Fab Test& Deliver
Project Lead
Marketing Team Chip Architect TestEngineering St Foundry Lead
Logic DesignTeam 1 Foundry Test
EngineerFoundry Layout
Engineer
VerificationTeam
DesignCoordination
DevelopSpecification
Insert Scan
Partition Chip
Gen Test Suite
PlaceRoute
FullChipSynth
Verify RTL
FloorPlanning
Write B1RTL
Sim GatesAssemble RTL
PhysVerifn
Verify B1RTL
Generate TestVectors
Synth_B1RTL
ManagementMeeting
Architecture TeamMeeting
Foundry TeamMeeting
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Meetings
Start Fab Test& Deliver
Project Lead
Marketing Team Chip Architect TestEngineering St Foundry Lead
Logic DesignTeam 1 Foundry Test
EngineerFoundry Layout
Engineer
VerificationTeam
DesignCoordination
DevelopSpecification
Insert Scan
Partition Chip
Gen Test Suite
PlaceRoute
FullChipSynth
Verify RTL
FloorPlanning
Write B1RTL
Sim GatesAssemble RTL
PhysVerifn
Verify B1RTL
Generate TestVectors
Synth_B1RTL
0.8
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Assignments 1
Start Fab Test& Deliver
Project Lead
Marketing Team Chip Architect TestEngineering St Foundry Lead
Logic DesignTeam 1 Foundry Test
EngineerFoundry Layout
Engineer
VerificationTeam
DesignCoordination
DevelopSpecification
Insert Scan
Partition Chip
Gen Test Suite
PlaceRoute
FullChipSynth
Verify RTL
FloorPlanning
Write B1RTL
Sim GatesAssemble RTL
PhysVerifn
Verify B1RTL
Generate TestVectors
Synth_B1RTL
0.8
4
4
4
4
1
1
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1 1
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ManagementMeeting
Architecture TeamMeeting
Foundry TeamMeeting
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Points of Departure (2)
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Knexus Research Program: Since 1998Used symposia, visiting scholars programs, etc. to seek out the most promising scholars worldwide to study organizations and institutions in GC projects
Assembled a superb team of scholars from social and cognitive sciences to work on Knexus Project
Identified and engaged the core team in the development of Knexus Collaboratory
Sources of Institutional Costin Global Projects
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Lack of legitimacyof relevantinstitutions
to participants
Participants’lack of
competence with
technology
Conflict between project developers’ culture vs.
participants’ cultural normsConflict between project goals vs.
participants’ goals
Participants’ perceived lack of freedom
to express dissent
Conflict between Project developers’
values vs.participants’ values
•
•
•
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•••
•
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•
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••
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ChangeChangeover Timeover Time
Beverly Hills, Singapore
Australia, HawaiiLas Vegas
Thailand
Asia
We would like you to help us with …
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Access to expertsWho have anecdotal experiences on the nature of institutional effects on Global Projects
Access to data from comparable projectsIndirect access in the form of access to company archives on Global Projects
Direct access in the form of visits to project locations during the summer and fall quarters
Initial Case Study – Planet Hollywood
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Goal conflicts with the local residents led to high costs and delays at Beverly HillsLocal community opposition in Hawaii translated into a large source of institutional cost and delayLack of enforcement agencies and ingrained values made it difficult to enforce safety standards in ThailandJapanese cultural attention to precision and detail forced work to take much longer
VDT-I: Ideas for Implementation
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Goal Conflict
Lack of Competence
with Technology
Lack of freedom to
express dissent
Lack of legitimacy of
relevant institutions
Values conflict
Culture conflict
‘Extra Work’(Add Activity)
Beverly Hills,
S’pore
Las Vegas, Asia, Australia
Asia
Motivation factor, loss of efficiency
Asia, Japan, S’pore
Meetings increase VFP
Institutional Uncertainty
Hawaii, Asia
High Skill mismatch
Reduced communications Thailand Asia
Increased workflow Asia
Higher rework Thailand
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Timeline
S t a r t O b s e r v a t io n a n d lit e r a t u r e s u r v e y
Fin is h
A s h w in M a h a lin g a m
R a y L e v it t C IFE M e m b e r s
P r o je c t P a r t ic ip a n t s
M o d e lin g
T e s t in g
A n a ly s is
Timeline
My predictionMy prediction
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VDT SimulationVDT Simulation
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QuestionsQuestions