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April 2017

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PMI APAC LIM

- Balakrishna Kasibatla, PMP

PMI, as per its strategy conducts annual Leadership Institute Meeting (LIM) for every region. APAC consists of Regions 9, 10, 11 and 15. PMI Bangalore India Chapter is part to Region 11 within APAC.

 

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This year’s APAC LIM was held during 3rd to 5th March 2017. Most of the leaders from all regions & chapters attended this meeting to present the chapter statistics, understand PMI strategies and network with fellow leaders. Mr. Basu Dutta (President), Shilpa Gnaneshwar (Secretary & Treasurer) and Balakrishna Kasibatla (Vice President – Membership Services) represented Bangalore India Chapter at the AP LIM at Hong Kong.

LIM had three full days of power packed sessions. First day has been dedicated to Chapter Leader Meetings for each of the Regions. Mr. B.G. Jayaram (Regional Mentor) kick started R11 Meetings with welcome note followed by updates from Ms. SoHyun Kang (Manager, Chapter Development – APAC). Mr. Balakrishna has presented updates and statistics on behalf of Bangalore India Chapter. Sessions from various PMI groups such as CMAG, Volunteering and Technology were conducted, followed by workshop on Membership and R11 specific meetings. The conference was closed with a session from regional mentor B.G. Jayaram.

Second day sessions started with introduction to PMI's New Strategic Approach from Mark Dickson (Chair, 2017 PMI Board of Directors) and Mark A. Langley (President & CEO). They spoke about “PMI is transforming what it means to be a professional association that represents and advocates for people who practice project, program and portfolio management”. PMI currently offer at least 115 different products and programs to the market! Chapter development Manager Sohyun spoke about PMI Talent Triangle alignment to member segments START, BUILD and ADVANCE.

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Third Day had full of interactive sessions across the Regions 9, 10, 11 and 15 followed by motivational sessions from Michael McQueen and Jonathan Combs. Leaders from various regions displayed lot of enthusiasm, networked and showcased chapter’s specific activities and best practices.

 

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Organization Structure in Wind Turbines Projects

- Sandeep Kumar

This study is about the wind power giants' merger, pre and post-merger situations, changes in organizational structures, its benefits and impacts. The positive synergy was derived from Balanced Matrix organization structure, which was actively involving the internal technical resources in Project Management activities. Thus an existing vendor development initiative was utilized to develop new engineering suppliers which were to be managed by technical leaders. These actions post-merger resulted in better control of projects, immediately responding to spikes in project requirements and cost competencies from vendors.

 

Pre-Merger Scenario

Before the merger the team was working in a functional organization structure. This resulted in idle time for engineering team during the waiting periods for next level inputs. The team could not take up new activities from other projects and hence other projects in pipeline were delayed. This usually led to cascading effects and delays were reported from manufacturing, transportation and procurement departments. The team was not getting enough opportunities to develop their skills outside their engineering activities. The engineers were restricted to the engineering activities they were doing.

 

In one instance, the supply chain team was looking for a solution to use the existing handling structures for new wind turbines with heavier weights. The engineering team was asked to check and certify the feasibility of its use from strength perspective. The project was to be delayed because of non-allocation of project team owing to their engagement in existing running projects. The team members could not be taken out of running projects and hence it was decided to outsource the engineering activity. This resulted in spending of valuable time and money for the organization.

 

Post-Merger Scenario

Challenges faced by organization due to functional structure were sufficient to demand for a better and acceptable solution that will result in effective utilization of resources and efficient budget utilization. Once the merger was approved and new organization was in place, balanced matrix organization structure was formally introduced keeping in line the agenda for better organizational functioning. Initially the teams were reluctant to work in such a structure. But in order to continue with the existing prototype project, under serial production projects and benefits offered by new management to employees, the teams agreed to work in matrix structure with more than one boss. This was confusing and time consuming in the beginning with authorities still not clear at top levels and needed few more meetings to clarify the exact roles and communication plans.

 

Once the things started moving, the benefits of balanced structure were evident and visible. Engineering team leaders got visibility by supporting in project management. The regularly planned meetings with Project Manager, resource manager and technical leaders resulted in higher degree of interaction by engineers and they got more say in organizational decision making from engineering perspectives. More ideas started to flow and engineering designs got optimized, root causes identified clearly and ideas generated on the spot. This led to very quick solutions for some of critical issues, which may have taken long time in functional structure. Resource manager got the opportunity to identify the future leaders and accordingly these future leaders were promoted and nourished with more responsibilities. Efficient suppliers were selected and involved that provided value addition to company's engineering projects.

 

On the other hand some of the departments leaders resigned and left the organization to look for responsible positions elsewhere in industry as their positions were rendered redundant due to management changes. The matrix structure also demanded a more organized way of working.

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This involved getting engineering requests from technical team, followed by resources demand, resources allocation requests, internal reallocation of engineering resources. During some urgent issues, if internal resources were not available, then looking for suppliers to fill in the gaps and this led to preparation of SoWs, asking for quotes, reviewing, negotiations, allocations etc. Such process again led to delay in project deliveries. However this situation was temporary as better ways were developed to deal with suppliers with pre-negotiated pricing.

 

Methodology and Responsibilities

The teams involved in engineering projects were operating from different geographical locations in Europe depending on their projects and the challenge was to manage them in such a way that the resource utilization stays efficient. Therefore to get the best out of matrix structure, the resource manager was required to travel between project locations to keep up to date with project managers and engineering leaders. Regular planned meetings were held and quarterly plans were prepared in consultation with key stakeholders.

 

Organizational benefits and drawbacks

The visible benefits were in terms of organized and timely execution of projects. Project teams were well defined and in case when resources utilization was not 100% in a project, they were shared among other projects. This was not limited to just engineering team members, but also applicable to team leaders as well. This led to organization saving money on projects

 

Though there were great organizational benefits, the other side cannot be neglected. In a way this was too much of a responsibility for the resource manager who was always overloaded with his activity which involved lot of travel because the resource manager was not just responsible for engineering team, but also for services and maintenance teams.

 

If the time consuming approval processes is managed efficiently and responsibilities are delegated with aim of speeding to and fro communication between resources manager and project manager, then balanced matrix will certainly lead to profitability of organisation. It is important to keep in mind that with efficient resource utilisation and improved team morale can do wonders to employee morale and organisations productivity.

 

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Influence of Internal Stakeholders' engagement on Project Portfolio Management – Is the role clarity satisfactory?

- Pankaj Tiwari, PMP & Dr. Sunita Panicker

Stakeholder Engagement is one of the key success factors for project portfolios. Moreover, stakeholder engagement needs to also account for stakeholder's influence on one another through formal and informal ways.

 

The organization often gets a strategic business outcome not by one project but execution of multiple projects or a portfolio of projects. Project portfolio management (PPM) can be treated as critical management improvement; this has become an important capability for organization managing diverse projects simultaneously. Institutionalizing PPM in an organization's dynamic management system is a dissemination process in which the related groups identify, recognize, have an optimistic outlook, and apply the fresh management thought process. Various research points to stakeholders and their administration are important success features for the management of project portfolios.

 

The important roles for internal stakeholders in PPM process, as defined by Jonas (2010) are: senior management, middle line management, project portfolio managers, and project managers. Levine (2005) underlined the significance of linking the right stakeholders in the correct process flow, and Aaltonen & Kujala (2010), experienced diverse stakeholder prominence in various project stages , hence PPM can be looked as a distributed management course of action linking stakeholders with the mentioned functions (Beringer , Jonas & Kock, 2013) .Various studies and stakeholder theory includes another context by highlighting that the actions of stakeholders is not self-governed but to a certain extent is the shared interactions. Moreover, on the project level, Crawford (2008) demonstrated that those who are responsible for projects must work together with various important stakeholders.

 

Based on a research survey using various project portfolios from Information Technology firms in Bangalore, the concentration of stakeholder's engagement and interdependencies in the different phases of the PPM process from PMI standards and role descriptions is examined. This quantitative study states the following key findings

Senior management governed the portfolio structuring and 30% of the investigated sample, demonstrates high engagement for portfolio structuring (65% medium engagement). Line management inclusive of project portfolio managers presides in resource management (55% high engagement), and portfolio steering (12% high engagement and 29% medium engagement). As anticipated, project managers do not expedite any of the defined PPM phases; the results specify that more than 81% of these managers show low engagement in all three phases while performing PPM tasks.

 

It indicates, the concentration of stakeholder engagement in every stage resonate the projected task of a key phase for each of the stakeholders: senior management direct portfolio structuring; middle level line management along with portfolio managers dominates resource management and portfolio steering.

 

It is examined that role clarity is interrelated with line management engagement (inclusive of project portfolio managers) in the portfolio structuring and the portfolio

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steering phases whereas senior management engagement is negatively linked in the portfolio steering phase.

Each stakeholder's engagement is positively related across all phases at low and high levels of role clarity (with the exception of for the correlation among resource management and portfolio steering for middle level line management at a high level of role clarity,

 

At low intensity of role clarity, the concentration of the senior management engagement is negatively linked with middle level line management in their major phase of resource management and with project portfolio managers in their major phase of portfolio steering.

 

At low levels of role clarity, most relationships are observed with senior management and project managers, whereas at high levels of role clarity, correlations are observed as primarily occurring with middle level line or project portfolio managers.

 

Also the engagement of project portfolio managers in the portfolio steering phase is negatively correlated with the concentration of the engagement of all other stakeholders in this phase, whereas at high levels of role clarity, only the correlations with middle level line management and project managers remain.

 

Based on the understanding of role clarity and to assess PPM maturity, this indicates the notion that there is scope for the further establishment of PPM. The extent of stakeholders' engagement with each other has a dependency on role clarity which is linked to the PPM maturity of the organization. It reinforces that the PPM process is a mutual and disseminated process and the key internal stakeholders are critical element in shaping this extremely inter-reliant network.

 

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Dynamics of Design & Build Model

Revolutionizing the Conventional Construction Philosophy

- Koheli Puri

 

Introduction

Huge development projects amidst emerging market economies across the Globe and specifically in India, necessitated rapid completion of Infrastructure Projects. The pace of investments over the last two decades in India has been soaring. In parallel, there has been a tremendous growth in the sheer volume of real estate that has been developed. Offices, malls, schools, hospitals, residences have all been developed to supplement the need of the world's fastest growing economy and to support the unprecedented increase in population

 

In India the Technology Industry has lead the growth of the Country followed by Retail, Healthcare, Services, education and logistics. All these economic developments have necessitated the need for development of world class architecture in India to match global standards when it comes to comfort, aesthetics, safety and security.

 

To manage and deliver such kind of unique and complex projects it was absolutely essential to look for an expertise organization with a thorough body of knowledge.

 

The Project Management Approach

With the growth of Construction and Infrastructure investments in India several International Property Consultants stepped into India. These firms started demonstrating the importance of Project Management Consultancy (PMC) as an independent service which can bring value to the customer in terms of end-to-end management of all forms of construction. They brought in the best practices, tools, software and expertise from their global experience and deployed them in India.

 

The delay and cost overruns are the major concerns of infra projects in India. These delays and cost overruns pose significant danger not only to the economic factors related to the project but also to the socio-political aspect as well. So there was a need to manage these projects in a professional way to reduce the shortcomings. This would be possibly only by deploying agencies with expertise and possessing appropriate intellect that can look into the criticalities and mitigate the risks to achieve a successful result.

 

A well-organized Project Management approach includes adopting various types of tools for effective management like reporting dashboard, round table progress review and conducting of brainstorming sessions, impart training on various field, design – construction interface, regular quality audits, quality diligence & delivery sessions in team.

 

Unattended Risks

While Construction Project Management's foothold, in the Indian market was established, it continued to face vast variety of challenges while handling large and complex projects. The appointment of a Project Management Consultant does not immediately solve all problems that are associated with this complex industry.

 

Project Managers are expected to be empowered to take the best decision in the overall interest of the project. However here, as per the contractual schematics, the role of the Project Manager is effectively reduced due to dependency on contracting agencies, who are appointed by the Stakeholders directly. Though Project Manager is fully aware of any risk or failure that needs to be managed, but nothing can be achieved by direct participation by Project Manager but needs to be tackled through additional costs, which needs to be borne by either the customer or one or more of the contracting parties depending on how it is negotiated.

In construction industry there were many things that are usually outsourced like the design aspect of the projects, various contracting agencies like Civil/ Interior, HVAC, MEP, etc. Too many power centres and failure points shifts the equilibrium, where in the accountability of Project Managers gets reduced, which in turn affects the Project Delivery Model. This lead to delays resulting in lag in the project timeline and consequences are budget overshoot.

 

Evolution Of Design & Built Method

In one of the Projects we handle, not only the contractors but the same policy was applicable for the consultants who were hired for various packages like Design, MEP, etc. They all were also under the same family tree with stakeholders and thus influenced the decision makers, in enforcing their views having cost impact, hence Project Manager was not able to exercise much control. This led to further confusions during the project cycle and the game of shifting monkey would come into play to hide the mistakes that happened during the course.

 

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To resolve this problem it was decided to blend the design, Project Management and implementation team under one umbrella to provide right empowerment and accountability to the Project Manager.

 

This resulted in Stakeholders and Project Managers to put their thinking hats & explore way to consolidate the power centers, create the right balance and equilibrium and design a well-insulated least defect probability project Delivery model to build a faster and a better tomorrow.

 

Administering of Design and Built (D&B) Method – Industry Changing Dynamics

Administering of this D&B model has changed many industry dynamics and emerged out as more futuristic approach. This D&B agency has the sole responsibility of taking the project from scratch, appointing the SMEs/the consultants, managing the design, for developing the BOQ and other tender specification, getting the same approved from clients. Then progressing with procurement, then appoint contracting agencies, wherein D&B agency have freedom to choose based on their working relationship and trust with various contracting agencies to manage & supervise the onsite work, thus complete the work.

 

D&B method is administered in two ways – Lump sum cost contract or Items rate contract also termed as Open Book approach for greater transparency and improved trust level to clients.

 

Advantages Of Design And Built Method

This unique project Delivery model was found to have several advantages over Traditional Project delivery Model – e.g. -

 

It immediately shifts the liability of Design Defects from the system – as the moment the facility is not performing as per required desired Design parameters the D&B Agencies responsibility is to rectify it at their own risk and cost, e.g. if the Facility is designed to produce 350 lux level and achieved lux level is 250, its D&B agencies sole responsibility to provide the agreed Lux level – thus ensuring clients risk mitigation in terms of compromising of requirements and Cost overrun.

 

So in nutshell the Project Managers achieved the following services to the clients –

 

• Insulation to Exposure of Price Escalation to clients

• Design Defects risk mitigated

• Single point of accountability to client for project delivery as per design intent and quality till handing over and one year of defect liability period

• Easy mode of payment disbursements for clients thus avoiding multiple transactions

• One year support for all operational issues as a part of defect liability

This will result into happy & contented clients, shorten the delivery time and enables Project Managers to take up more and more challenges, increases the capabilities and expertise, to deliver more Projects to cater the economic growth.

 

In this D&B approach it is observed that there is minimal risk, maximum transparency and vision of how a job can be completed in an optimum budget. This dynamic nature of this D&B approach is new and promising which can make it an everlasting force to solve various problems encountered in this industry.

 

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E&C Symposium

Symposium Inauguration

 

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Ms. Chandrika started the symposium on a traditional note with a devotional song. After this Mr. T. V. Sesha Sai, VP – Projects & New Initiatives, Chair – E&C Forum, PMI Bangalore India Chapter inaugurated the Symposium by sharing his thoughts on the goals of E&C forum. He stressed the goal of the forum is to share best practices among the E&C community and also the theme of Symposium i.e. “Building Better Tomorrow – leveraging Project Management” is in line with this.

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Lamp lighting ceremony was followed after this to set the tone of the event on an auspicious note.

 

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Mr. Vijay K Paul, President, PMI Bangalore India Chapter addressed the audience and shared thoughts on Chapter's journey with E&C industry. He mentioned how Chapter has taken baby steps and started this forum by monthly E&C Footprints every 3rd Saturday which matured to a lot till 2nd E&C Industry Symposium. He quoted this in Hindi “Main akela hi chala tha janib-e-manzil magar. Log saath aate gaye aur karwaan banta gaya” to depict the progress made in E&C.

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He highlighted that encouragement from E&C forum also triggered another forum of Chapter i.e. DAPSU (DEFENCE AEROSPACE & PSU INDUSTRY)

 

PMI Address

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Mr. Raj Kalady, Managing Director - PMI India addressed the audience and started his discussion with the PMI journey and history. He mentioned that PMIBC is number one Chapter in India, especially for the kind of initiatives it takes. He mentioned the significance of E&C by quoting Australia Opera example and also said E&C is emerging in India as lot of money is getting spent on the infrastructure projects. Initiatives like “Make in India” and research results which shows 9 Trillion INR worth of infrastructure is required in India in itself is a boost for the industry. He concluded by emphasizing on 3 P's i.e. people, processes and promotions.

 

Keynote Address (KN01)

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Mr. Arunjot Singh Bhalla Managing Director - India RSP Design Consultants India Private Limited, spoke on topic “The Elephant in the Room' - Addressing Issues of Coordination in Design and Construction Works”. He mentioned the importance of risk identification, like poor coordination, which if not addressed timely will grow larger. He referred all the hurdles/challenges as elephants in the room which we need to get rid of to end up with a successful projects. He touched upon challenges like increasing design complexity, seamless communication, time zones and geography etc. He also touched upon agility in the design process so that changes can be quickly made and communicated to right stakeholders.

 

Case Study (CS01)

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Mr. Anil Kumar Managing Director - Great Sports Infra Pvt Ltd. spoke on topic “Design & Execution of The World's First Sub-Surface Automation in a Cricket Outfield”. His insights and explanation on challenges faced in Chinnaswamy Cricket Stadium was very interesting and audience connected with it very well. This case study was classic example of a project done with stringent deadlines along with no window/time to redo anything. He mentioned this was “first time right” for a “first of its kind project” type of challenge project. He touched upon the anticipated and unanticipated issues which has been faced during the execution of the project like modifying the design to fit the structure as per the room available.

 

Panel Discussion

Dr. Subhash Rastogi, Director BT & BT Management Consultancy along with Mr. Ajith Alexander, Founder & Managing Director of QwikSpec, Mr. Alcide Coelho, Senior Vice President at Tata Housing Development Company Ltd and Mr. Harsh Pareek Heads Autodesk Technical engagement for India & SAARC had a panel discussion on “How Technology is Transforming Construction Industry”.

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Dr. Rastogi moderated the discussion and initiated with his thoughts that Civil Engineering is one area where technology adoption is very slow and asked the members to share their thoughts on the same. Mr. Pareek stressed on BIM and its adoption, he has compared the % adoption of BIM across the continents and mentioned India/Asia has a long way to go. Mr. Alcide Coelho mentioned that people still knock the walls and say its hollow and traditional methods are still very much prevalent. Mr. Ajith Alexander mentioned about agility and how it's needed to address volumes of delivery. Discussion went on and questions varied from automation to whether comparison of different engineering streams is a good way to go forward. Dr. Rastogi and panel concluded the discussion saying disruption is coming and it's up to us whether we adapt to it or not. Organizations have to invest in technology if they want to pick the pace.

 

Case Study (CS01)

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Mr. Prabhakar Jadhav, Independent Director, Excellent Fire Safety Systems Pvt. Ltd. Advisor, Ashoka Foundation for “Housing to all” initiative spoke on “Transformational Initiatives for Project Excellence - Sharing of an Experience". He started his discussion by making context to the theme of symposium and mentioned rather than changing only the status of project daily, need of the hour is Quantum Change or Total Transformation. His award winning case study reference was very well taken. He elaborated on how 100 years old construction house initiated Six Sigma and CMMI to address the quality issues. He also mentioned that success has to be measurable. He concluded saying with a message that future is not about delivering the best any more, it's all about excellence for better tomorrow”

 

Keynote Address (KN02)

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Mr. A N Prakash Managing Director - M/s A N Prakash Construction Project Management Consultants Pvt. Ltd. spoke on topic “Project Management Tomorrow- Preparing for The Emerging Environment”. He started his discussion by showing figures from CIRCA 2025 which says, population is moving towards urban areas which calls for huge investment in infrastructure and largest of growth is projected in India, China and Nigeria. He mentioned that with this much growth of urban population and consequent demand new ways of Project Management which are technology equipped with latest trends like AI and IOT is needed. He concluded by stressing up on need of high performing teams & India 2025 SWOT analysis.

 

Valedictory Address (VA01)

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Dr. K. N. Satyanarayana Director - IIT Tirupati, spoke on “Human Resource Issues in Indian Construction Projects”. He presented multiple facets of challenges faced in construction industry due to human resources issues. He touched up on stress on engineers working on construction projects with long stretched hours of work. He quoted one survey which says 1st most stressed job is Air Traffic Controller and second is Construction Job. Also from construction worker's context he mentioned that most of the workers are migrants which impose multiple challenges to plan and execution of the construction projects. 83% of the workers are unskilled which poses a serious threat. He concluded saying urgent attention towards these issues are required to take construction industry to next level.

 

Symposium Closure

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Ms. Shilpa Gnaneshwar, Secretary and Treasurer, PMI Bangalore India Chapter addressed the audience with vote of thanks and formally closed the 2nd PM Industry Symposium for Engineering & Construction. She announced the names of all the members of organising committee of the Symposium and volunteers. The applause from audience boosted the morale of volunteers to gear up for the next symposium.