STRATEGIES OF EFFECTIVE PROJECT DELIVERY SYSTEMS

1
STRATEGIES OF EFFECTIVE PROJECT DELIVERY SYSTEMS

• by
• YBhg. Capt. Dato Seri Prof. Ir. Dr. Judin Abd.
  Karim
• Director General
• Public Works Department Malaysia
• 17 December 2008

2
Project delivery system
2

• formalized approach of implementing projects
• customer satisfaction in meeting project
  schedule, quality and cost

3
Background
3

• Malaysias five year planning system a leading
  strategy
• Issues relating to limitations and inefficiencies
  in the project delivery systems have raised much
  concern from various parties
• Need to make changes to the project
  implementation system to significantly improve
  the delivery of projects and their strategic
  impact.

4
Lessons from 8th Malaysian Plan
4

• Average length of delays per project 171 days or
  6 months
• 78 of these projects could not be handed over on
  schedule.

5
Factors contributing to delays
5

• Land acquisition, relocation of squatters and
  utilities
• Unsuitable sites
• Lack of equipment, material manpower
• Variation orders
• Delays in decision making
• Problematic contractors

6
Lessons from 8th Malaysian Plan
6

• Recent study on project cost
• cost overruns of 2,541 projects of total value
  RM 8.037 billion account for 3.6 of the total
  value.
• Study on causes of 229 VOs issued

7
7
8
Lessons from 8th Malaysian Plan
8

• Many projects were approved and contracted with
  inadequate project briefs due to poor
  coordination among key stakeholders.
• This led to changes in scope, which in turn, led
  to delays and cost overruns, poor quality, and
  operability of the completed infrastructure.

9
Lessons from 8th Malaysian Plan
9

• Individuals and firms with no or inadequate
  project management skills have been appointed by
  the Government to manage projects. This is
  because there were no competency standards for
  project management in Malaysia.

10
Lessons from 8th Malaysian Plan
10

• Wrong selection of project implementation
  strategies led to
• poor quality,
• lack of alignment between the parties,
• over emphasis on contract management rather than
  delivery of project outcomes,
• excessive claims for loss and expense
• invariably long delays.

11
Experience in 9th Malaysian Plan
11

• JKR encountered difficulties in obtaining the
  list of projects from client ministries
• Coming up with a master schedule and resources
  planning was a problem
• Delays at the pre-planning stage led to missed
  deadlines in launching of projects.
• many projects had to be tendered out urgently
  based on Design Build.

12
Strategies and Initiatives to enhance
effectiveness of project delivery system
12

• Strategies and initiatives focussed on removing
  key systemic issues which impair the Governments
  capability to achieve strategic impact from
  projects
• Acquisition Categorisation (ACAT), Gateway, PM
  Competency Framework, PM tools and Methodologies
  and Project Implementation Strategies

13
STRATEGIES AND INITIATIVES
14
Acquisition Categorisation (ACAT) Framework
14

• methodology for categorising projects according
  to the project management complexity, technical
  difficulty, schedule, political importance, etc.
• categorised either as complex or traditional
  projects
• Most complex - ACAT I, ACAT II and ACAT III
• Less complex ACAT IV and ACAT V

15
Acquisition Categorisation (ACAT) Framework
15

• six major attributes
• Acquisition Cost
• Project Management Complexity
• Schedule Complexity
• Technical Complexity
• Operation and Maintenance and
• Industry readiness.

16
Acquisition Categorisation (ACAT) Framework
16

• ACAT level to which the project is assigned has
  implications on
• resource planning
• delivery strategies
• appropriate procurement and contracting strategies

17
Acquisition Categorisation (ACAT) Framework
17

• align experience and competencies of project
  managers to the complexity and scale of projects
• selection of contractors also to consider the
  competency level requirements of the project as
  determined by the ACAT Framework

18
Acquisition Categorisation (ACAT) Framework
18

• Benefits
• optimise usage of resources
• most appropriate project implementation strategy
• increase level of transparency and integrity
• increase maturity level of project management in
  Malaysia.

19
Gateway
19

• trademark name belonging to the Office of
  Government Commerce (OGC), United Kingdom
• developed to improve the delivery of major
  projects and program in UK.

20
Gateway
20

• a project assurance methodology that involves
  short, intensive reviews at up to six critical
  stages of the project/program lifecycle
• Reviews undertaken by team of experienced peer
  reviewers who are not associated with the project
• assess the project against its specified
  objectives at a particular stage in the projects
  lifecycle

21
GATEWAY AND PROJECT LIFE CYCLE
22
Gateway
22

• Reviews help to identify areas that may require
  corrective action before the project enters the
  next phase
• validate the ability of the project to progress
  successfully to the next stage.
• Reviews by external independent parties improve
  project governance.

23
Gateway
23

• The World Bank, and many governments including
  United Kingdom, Norway, and Australia, have
  already put in place such systems

24
Project Management Competency Standards and
Framework
24

• project management widely practised, but yet to
  be established as a profession in Malaysia
• no mechanisms to regulate the profession
• no standards for project management
• no means of assessing the competency levels of
  project managers

25
Project Management Competency Standards and
Framework
25

• project management need to be established as a
  profession within Malaysia.
• UK, Japan, Singapore, India, Australia and
  Germany, have established PM competency standards
  that specify required competencies for
  traditional projects.
• US, UK, and Australian Governments have recently
  developed internationally recognised competency
  standards for complex projects.

26
Project Management Competency Standards and
Framework
26

• JKR PM Competency Framework (PMCF) includes
• adoption of internationally recognised PM
  competency standards
• establishment of Malaysian Project Management
  Association (MPMA)
• establishment of PM a formally recognised
  profession with a career pathway

27
Project Management Competency Standards and
Framework
27

• JKR Certifcation Level
• Qualified Project Practitioner
• Registered Project Manager
• Master Program Director
• JKR Standards
• adopting the AIPM standards
• incorporation of JKR specific requirements, such
  as specific experience, training, seniority, and
  competency level

28
Project Management Competency Standards and
Framework
28

• PMCF
• attempts to link ACAT with PM certification and
  with specific requirements
• defines the level of certification required for
  each ACAT project type and specific requirements
• establishes and defines the roles and
  responsibilities of PM and the career pathway for
  PM within JKR.

29
Project Management Competency Standards and
Framework
29

• A formal plan for PM professional training and
  development that links to the competency levels
  is required in Malaysia.
• Individuals involved in projects may not need to
  be formally certified as PM but do need the basic
  training in project management.

30
Project Management Competency Standards and
Framework
30

• JKR has initiated a short term program to
  overcome shortages of certified project managers
• Officers in the higher management group to be
  Certified Project Manager Level 6 i.e the Master
  Program Director level
• Some are also trained to be certified assessors
  to support the PM certification programme.

31
Project Management Competency Standards and
Framework
31

• As long term goal, a structured career management
  and development for the profession from fresh
  entry to the highest level in PM will be
  established
• JKR professionals who have attained Level 4
  Competency Assessment will be given the option to
  pursue their careers in PM at Level 5 and above.

32
JKR CAREER PATHWAY IN PM
33
Project Management Competency Standards and
Framework
33

• Succession plan is essential to maintain
  continuity in projects
• Succession planning will be used to identify and
  accelerate the development of the candidates for
  the upgrading of their competency level
• Pool of competent project managers to be created

34
Project Management Competency Standards and
Framework
34

• Formation of MAPMA as a regulatory body of the PM
  profession to ensure PM services is provided by
  capable, competent and responsible professionals
• MAPMA to own the Malaysian PM competency
  standards and responsible for PM certification
• MAPMA to drive the professionalism of PM in
  Malaysia.

35
Project Management Tools and Methodologies
35

• JKR has benchmarked existing project
  implementation system in Malaysia against
  international best practices
• Developed a range of PM and asset management
  tools, competencies, and methodologies to fill in
  gaps in the existing system

36
Project Management Tools and Methodologies
36

• Strategic Human Resource Management
• - matching human resources and skills available
  with the number, types and category of projects
• Risk Management Methodology
• - based upon the Australian and New Zealand
  Standards AS/NZS 43602004

37
Project Management Tools and Methodologies
37

• (3) Communications Management
• integrated approach to ensure clear, consistent
  and timely information conveyed to project
  stakeholders
• Performance Reporting
• - use SKALA to monitor performance

38
Project Management Tools and Methodologies
38

• (5) Customer Service Improvement Plan
• to facilitate information exchanges between all
  stakeholders involved in the execution of
  projects
• to drive improvements and the change processes
  within JKR

39
Project Management Tools and Methodologies
39

• (6) Project Management Methodology Matrix
• - developed to suit JKR PM practices and will be
  the standard PM methodology in prescribing
  activities and tasks covering all the PM
  functions
• - provides a useful guide and checklist
  for PM

40
Project Management Tools and Methodologies
40

• Partnering
• based upon trust, dedication to common goals, and
  understanding each others individual
  expectations and values

41
Project Implementation Strategy
41

• Design Construct and Maintain (DCM)
• Contractor takes responsibility for design,
  construction and maintenance for five to ten
  years.
• remove the problems of poor quality, schedule
  delays, and significant scope changes.

42
Project Implementation Strategy
42

• Alliancing Contracts
• a form of Public Private Partnership
• Contractor works in an alliance relationship (one
  integrated team) with the client
• Contractors profit is fully subject to his
  performance measured by Key Performance
  Indicators (KPIs)

43
Project Implementation Strategy
44
Implementation of strategies
44

• Established a Complex Project Management Division
  in JKR, known as PROKOM
• to provide overall functional leadership in PM
  and to develop the key systems, processes and
  tools, and a change strategy to implement them in
  JKR.

45
Implementation of strategies
45

• Staged Roll Out
• uses pilot projects to establish and prove the
  initiative
• focus on initiatives that have the greatest
  impact

46
Implementation of strategies
46

• Expedite the central agency approval of the
  Alliancing and PPP contract
• Use ACAT project classification system to
  classify projects at their initial approval in
  EPU and have the ACAT classification reviewed at
  key Gateway points

47
Implementation of strategies
47

• Formally establish Gateway process and pilot its
  use on high impact and complex projects.
• Establish Malaysian competency standards for PM
  and formal recognition of PM as a profession.
• Provide direct Government sponsorship and funding
  for the establishment of a Malaysian Asset
  Project Management Association (MAPMA).

48
Implementation of strategies
48

• Provide PM fundamental trainings to all
  Government employees involved in project
  management
• Establish PROKOM project management office (PMO)
  to provide support in project implementation

49
Conclusion
49

• Present project delivery system need to be
  changed in order to minimise the possibility of
  project failure with respect to time, cost,
  quality, function and value for money
• existing PM system is missing a number of key
  tools like Risk Management, Partnering,
  Alliancing contracts, ACAT classification system,
  Customer Service Improvement Plan, and Gateway

50
Conclusion
50

• Establishment of a supporting PMO to Strategic
  Business Units within JKR, Government Departments
  and Agencies will be the tipping point for
• standardisation of systems and methodologies in
  implementation of projects,
• simplification of project implementation process,
  
• adoption of best practices to all projects, and
• reduction of implementation risks.

51
Conclusion
51

• Government agencies, the private sector and
  individuals involved in the project delivery
  systems are important actors in realizing the
  objectives in any development plan.
• Their strength, knowledge, ideas, experiences and
  skills must be synergised to ensure effectiveness
  of project delivery systems.