WHAT IT TAKES TO DELIVER

VALUE TO A PROJECT

Tan Sri (Dr) Ir. Jamilus Hussein

President / CEO

KLIA Premier Holdings Sdn Bhd

Seminar “Best Practices in Construction Industry

(BPCI 2017)

8 March 2017 – Mercu Alam Bina,

Fakulti Alam Bina, Universit Malaya

The essence of Project Management

The value of the project

to the Client

to the Contractors & sub-contractors

to the Consultants

to the Public at large

“is really about delivering value”

Delivering value

It involves not just to meet the Client’s project implementation objectives in

time, budget, quality, & scope

but includes the

strategic, technical, & commercial

aspect of the project.

PM is a science…

it relies on proven & repeatable processes & techniques

to achieve project success.

PM is an art…

it involves managing & relating to people,

and require the project manager to apply intuitive skills

in situation that are totally unique for each project.

A good project management methodology provides

the frameworks, processes, guidelines and techniques

to manage the people and the workload thus increases

the odds of being successful.

The Art & Science of PM

The Science of PM = Hard Skills

„Tools and Techniques‟ in whatever form does not make any person or group more effective –they just makes them more efficient in carrying out a set of tasks.

IT & CT – only/greatly assist to accomplish tasks more efficiently.

The Art of PM = Soft Skills

Communication

External issue management

Business & financial acumen

Leadership

Organizational/Conflict & relationship management/Team Building

Strategic thinking

Problem-solving & Decision-making

Flexibility & Creativity

Trustworthiness

Reasons why organizations use project management

Increased understanding of the project and its purpose

Clarification and alignment with organizational goals

Ability to define and control project scope

Prioritization of functional and project activities

Ability to identify, monitor and track milestones

Accurate projection of resource requirements

Capability and mechanisms to measure performance

Improved assessment and mitigation of project risks

Improved communication amongst project participants

Identification and communication of problem areas

Early identification & proactive management of project

issues & risks

Merits of Project Management

The Concept & Role of PM in Construction Industry

The Rightful Roles :

- The Client determines the WHAT.

- The Construction industry determines the HOW.

- The Construction Industry is obligated to results,

based on key role of Project Management in

conceptual development, optimisation of know-how and innovative processes.

- Independent role of Project Management in protecting

Client‟s overall interest is assured as it is the

Project Managers main interest.

- Independent Project Management will result in

the right balance throughout the Project between

Budget, Quality, Time, Information & Organization

forcing all involved Parties to clearly focused on

Client‟s aim and objectives.

-The (non-technical) Client can focus on his

principal role in the Project without placing

a load on his organization. Thus, retaining his

valuable resources for his Core Business.

Cli

en

tC

on

str

ucti

on

Ind

ustr

y

WHAT

ProjectManagement

HOW

Sub-Contractors

DisciplinaryConsultants

Main Contractor &

LeadConsultant

Project Management Managerial Context

Stakeholders

Project Development Environments

SkillStaff

Systems

Structure

MGT Style

Strategy

Mission

Wh

at

Ho

w

Critical Success Factors

Shared Values

Cultural behavior & strong traditions

Roles, Responsibilities, Powers & Structure

Management & Administrative Procedures

Recruitment of Skilled Staff as a result of above

Determination of Project‟s Managerial Approach

External Project Environment

ProjectSponsor

ProjectManager

and

Project Team

ConsultingEngineers

Corporate Enterpriseand its business purpose

GeneralConstruction

EXTERNAL PROJECT ENVIRONMENT

Primary

End Users

Secondary

End Users

Government

Agencies

Professional

Associations

Legislative

Authorities

Public

Media

Clients

Representatives

Local Authorities

Government

Ministries

Local

Municipality

Financiers

Shareholders

(Main) Client

Internal Project Environment

ProjectSponsor

ProjectManager

andProject Team

ConsultingEngineers

Corporate Enterpriseand its business purpose

GeneralConstruction

Board ofDirectors

Corporate Policy

Facility Planning & Standards

Finance/Accounting/Payments

Audit

Legal

Marketing

Operations

User Coordination

ContractAdmin

Labour Relations

Trade Coordination

Shop Drawings

Expediting

Health, Safety, Security & Environment

Cost Control

Quality Control

Construction Supervision

Special Suppliers

Trade Contractors

Bonds arrangements & Insurances

Major Suppliers

Architectural

Structural

Mechanical

Electrical & ICT

Energy preservation

Acoustics/Noise

Conveying

Process, Evironmental& other Specialists

Quality Assurance

Quality InspectionEstimating

Scheduling

Project Admin

Phased Project Development

How How toMake

DesignPhase

ProcurementPhase

Project Phasing

Dividing the Overall Project Development into

Distinct Project Phases.

Each with their unique Development Content.

Formulating UPFRONT

how the Execution Processes takes place,

Making the Total Development Scope MANAGEABLE!

Idea

Inception

Phase

P1

Preserve

O&M

Phase

P6

Do

ConstructionPhase

P5P4

P3

What

DefinitionPhase

P2

The Project Controlling Principle

T

C

Q

I

O

Controlling Aspects

Project Result

Detailed Plan & Approach

for next Phase

Broad Plan for

subsequent Phases

Each Development Phase must be

Controlled to ensure the Project Development is in accordance with the

set Project END RESULT or

GOAL

Each Phase will be subjected to Controlling Processes in

Time, Cost, Quality, Organization & Information

PROJECT MANAGEMENT PRINCIPLES

Idea What How How to

Make

Do Preserve

InitiativePhase

DefinitionPhase

DesignPhase

ProcurementPhase

ConstructionPhase

O&MPhase

Project Phasing

Achieved Result

Decision-making

Operation &

Maintenance

Program

T C Q IO

Implementation

Program

T C Q IO

Project

Design

T C Q IO

Project

Program

T C Q IO

Project

Inception

Remaining Scope

T C Q IO Control

Leads to a Decisive, Controlled and therefore Manageable Overall Process!

The 3 Cornerstones of Project Management

Decision-making

C

O

N

T

R

O

L

P h a s i n g

This represents the BASIS for the Project Management Working Method

The Managerial Integration

Idea What How How to

Make

Do Preserve

InitiativePhase

DefinitionPhase

DesignPhase

ProcurementPhase

ConstructionPhase

O&MPhase

Project Phasing

Achieved Result

Decision-making

Operation &

Maintenance

Program

T C Q IO

Implementation

Program

T C Q IO

Project

Design

T C Q IO

Project

Program

T C Q IO

Project

Inception

Remaining Scope

T C Q IO Control

Leads to a Decisive, Controlled and therefore Manageable Overall Process!

PROJECT MANAGEMENT PRINCIPLES

Idea What How How to

Make

Do Preserve

InitiativePhase

DefinitionPhase

DesignPhase

ProcurementPhase

ConstructionPhase

O&MPhase

Project Phasing

Achieved Result

Decision-making

Operation &

Maintenance

Program

T C Q IO

Implementation

Program

T C Q IO

Project

Design

T C Q IO

Project

Program

T C Q IO

Project

Inception

Remaining Scope

T C Q IO Control

Leads to a Decisive, Controlled and therefore Manageable Overall Process!

PROJECT MANAGEMENT GOOD PRACTICES

“Project Life Cycle Variables”

Cost to

Phase 1

Conceive

Phase 2

Develop

Phase 3

Execute

Phase 4

Finish

Planning Execution

Total Project Life Cycle

De

cre

asin

g O

pp

ort

un

ity

Incre

asin

g C

ost

Time

Constructive

OpportunityDestructive

Intervention

Need and intention to built (incl. initial thought on facility)

Feasibility studies & Technical & economic study

Project Budget

Project brief – design, technical, cost, quality, time parameters

External & Internal Stakeholders

How How toMake

DesignPhase

ProcurementPhase

Project Phasing

Idea

Inception

Phase

P1

Do

ConstructionPhase

P5P4

P3

What

DefinitionPhase

P2

Idea

P1Inception

Phase

Master Plan, Business Plan, Strategies, Roadmaps

Project Organization &Operational Scheme, Control

Systems, Communication Plan

Project Activities Approaches& Strategies, 4D Planning,

Master Implementation Prog.

Integrated logic Network Prog, Interface Mgt System

Detailed Project ActivitiesSchedules & Sub-schedulesP

lanners

Level of

Conce

ptu

al &

Managerial Skill

s

Level of Conceptual & Managerial Complexity of Projects

Strategic Planning

Tactical Planning

Master Programming

Multi-Disciplinary

Singular Disciplinary

Level 1

Level 2

Level 3

Level 4

Level 5

Deliverable/s

Level of Planning

Requirement capture from Internal & External Stakeholders

Scope of Work, Deliverables, time & budget

Technical & Design Concept (incl. site condition, soil investigation & functionality)

Project implementation strategy

Master Implementation Programme

Organizational structure, System & Procedure

QA/QC, Communication & information plan

Document Control Centre

What

P2Definition

Phase

How How toMake

DesignPhase

ProcurementPhase

Project Phasing

Idea

Inception

Phase

P1

Do

ConstructionPhase

P5P4

P3

What

DefinitionPhase

P2

KLIA Timing Strategy:“Master Implementation Programme”

KLIA Formal Communication Strategy

Detail design development, materials search

Value engineering

Procurement strategy, tender documentation

Detail cost estimate & budget, cost control system

Performance & technical specifications

Approval of the Client

Design Concept / Detail Design Management Organization

How

P3Design Phase

How How toMake

DesignPhase

ProcurementPhase

Project Phasing

Idea

Inception

Phase

P1

Do

ConstructionPhase

P5P4

P3

What

DefinitionPhase

P2

Procurement (Contract) Strategy

Due to Time constraint to complete and operate within 6 years from point of

decision to build (normal 10-12 years) a Fast-track strategy was crucial.

Fast-track Design and Build

Fast-track Conventional

Conventional

A combination of all (running parallel), depending on the size, scope, and complexity:

Tendering process & Award

Evaluation Criteria

Spreadsheet Presentation for Comparison of different Tender Proposal / Pricing

Recommendation

Evaluation Team

How How toMake

DesignPhase

ProcurementPhase

Project Phasing

Idea

Inception

Phase

P1

Do

ConstructionPhase

P5P4

P3

What

DefinitionPhase

P2

How to Make

P4Procurement

Phase

Site planning

Detail construction work programs (incl. interfacing)

Contract administration

Design & technical site review & adjustment

QA/QC, HSSE implementation & control

Operational readiness & maintenance plan

Testing, commissioning, & handover (incl. CF)

Construction Management Organization

How How toMake

DesignPhase

ProcurementPhase

Project Phasing

Idea

Inception

Phase

P1

Do

ConstructionPhase

P5P4

P3

What

DefinitionPhase

P2

Do

P5Construction

Phase

PM and Contractor Construction Management Organization

Cli

en

tC

on

str

ucti

on

Ind

ustr

y

WHAT

ProjectManagement

HOW

Sub-Contractors

DisciplinaryConsultants

Main Contractor &

LeadConsultant

PD/PM

Contractor Org

Planning &

Integration

Quality

QA/QC

Cost

Contract

Risk

Design Dev

Engineering

(Consultants)

Client

HSSE

PD/PM

PM Org

Planning &

Integration

Quality

QA/QC

Cost

Contract

Risk

Design Dev

Engineering

Client

HSSE

PD/PM

PM Org

Construction Management

&

Supervision

Project Management

Organization

Contractor

Construction Management

Organization

Both organization

compliment to work towards

Project objectives