Transcript Slide 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
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Project delivery system
• formalized approach of implementing projects
• customer satisfaction in meeting project
schedule, quality and cost
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Background
• Malaysia’s 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.
Lessons from
8th
Malaysian Plan
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Average length of delays per project: 171 days or
±6 months
78% of these projects could not be handed over
on schedule.
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Factors contributing to delays
• Land acquisition, relocation of squatters and
utilities
• Unsuitable sites
• Lack of equipment, material & manpower
• Variation orders
• Delays in decision making
• Problematic contractors
Lessons from
8th
Malaysian Plan
• 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
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Number of Project Research = 20
Number of Work Variation Order = 229
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Lessons from 8th Malaysian Plan
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• 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.
Lessons from
8th
Malaysian Plan
• 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.
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Lessons from 8th Malaysian Plan
• 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.
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Experience in 9th Malaysian Plan
• 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.
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Strategies and Initiatives to enhance effectiveness of
project delivery system
• Strategies and initiatives focussed on
removing key systemic issues which impair the
Government’s capability to achieve strategic
impact from projects
• Acquisition Categorisation (ACAT), Gateway,
PM Competency Framework, PM tools and
Methodologies and Project Implementation
Strategies
STRATEGIES AND INITIATIVES
Project Entry Point
Value at Entry
Central Agencies
Gate #1
ACAT
Gate #2
JKR
Gate #3
Departments
& ICU
JKR PMO
Gate #4
DCM
Contracts
Scope Certainty
Projects
Projects
Projects
Gate #5
JKR
PROKOM
Alliance
Contracts
Scope Uncertainty
PM
Competencies
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Acquisition Categorisation (ACAT) Framework
• 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
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Acquisition Categorisation (ACAT) Framework
• six major attributes
– Acquisition Cost
– Project Management Complexity
– Schedule Complexity
– Technical Complexity
– Operation and Maintenance; and
– Industry readiness.
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Acquisition Categorisation (ACAT) Framework
• ACAT level to which the project is assigned has
implications on
– resource planning
– delivery strategies
– appropriate procurement and contracting
strategies
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Acquisition Categorisation (ACAT) Framework
• 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
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Acquisition Categorisation (ACAT) Framework
• Benefits:
– optimise usage of resources
– most appropriate project implementation strategy
– increase level of transparency and integrity
– increase maturity level of project management in
Malaysia.
Gateway
• trademark name belonging to the Office of
Government Commerce (OGC), United
Kingdom
• developed to improve the delivery of major
projects and program in UK.
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Gateway
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• 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 project’s lifecycle
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GATEWAY AND PROJECT LIFE CYCLE
Gateway
• 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.
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Gateway
• The World Bank, and many governments
including United Kingdom, Norway, and
Australia, have already put in place such
systems
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Project Management Competency
Standards and Framework
• 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
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Project Management Competency
Standards and Framework
• 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.
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Project Management Competency
Standards and Framework
• 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
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Project Management Competency Standards
and Framework
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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
Project Management Competency
Standards and Framework
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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.
Project Management Competency Standards
and Framework
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• 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.
Project Management Competency Standards
and Framework
• 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.
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Project Management Competency Standards
and Framework
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• 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.
JKR CAREER PATHWAY IN PM
Competency
Grade of service
PMCF Certification Level
Assessment
Level
Level 1
J41
Level 2
J41
Knowledge based exam
Level 3
J44
Level 4 (QPP)
Level 4
J48
Level 5
J52
Level 6
J54
Level 5 (RPM)
Level 6 (MPD)
Project Management Competency Standards
and Framework
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• 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
Project Management Competency Standards
and Framework
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• 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.
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Project Management Tools and Methodologies
• 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
Project Management Tools and
Methodologies
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(1) Strategic Human Resource Management
- matching human resources and skills available
with the number, types and category of
projects
(2) Risk Management Methodology
- based upon the Australian and New Zealand
Standards AS/NZS 4360:2004
Project Management Tools and
Methodologies
(3)
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Communications Management
- integrated approach to ensure clear, consistent and
timely information conveyed to project
stakeholders
(4) Performance Reporting
- use SKALA to monitor performance
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Project Management Tools and Methodologies
(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
Project Management Tools and
Methodologies
(6)
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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
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Project Management Tools and Methodologies
(7) Partnering
- based upon trust, dedication to common goals, and
understanding each other’s individual expectations
and values
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Project Implementation Strategy
• 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.
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Project Implementation Strategy
• Alliancing Contracts
– a form of Public Private Partnership
– Contractor works in an alliance relationship (one
integrated team) with the client
– Contractor’s profit is fully subject to his performance
measured by Key Performance Indicators (KPIs)
Project Implementation Strategy
Implementation of strategies
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• 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.
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Implementation of strategies
• Staged Roll Out
- uses pilot projects to establish and prove the initiative
- focus on initiatives that have the greatest impact
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Implementation of strategies
• 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
Implementation of strategies
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• 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).
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Implementation of strategies
• Provide PM fundamental trainings to all
Government employees involved in project
management
• Establish PROKOM project management office
(PMO) to provide support in project
implementation
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Conclusion
• 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
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Conclusion
• 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.
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Conclusion
• 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.