E-Tools for Construction Project Management

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1 GUIDANCE NOTE E-Tools for Construction Project Management The World Bank March 2014 In collaboration with 1

2 Introduction Indian Construction Industry Increased scale and complexity Increasingly dynamic environment Larger projects, longer duration Pressure on environmental safeguards, building resilience and infrastructure sustainability Pressure to have more transparency and accountability due to higher public / media scrutiny ICT offers opportunities for better management of complex infrastructure projects 2

3 What are E Tools E Tools or electronic tools imply the application of modern ICT (Information and Communication Technology) tools to automate certain tasks. E Tools is a generic term which covers usage of a combination of computer hardware, software, communication tools and technologies for a specific purpose or application. Key Benefits of E Tools E Tools for Construction Project Management (CPM) facilitate : Minimisation of cost and time overrun Focussing attention on quality and compliance throughout project life cycle Provision of actionable (timely, relevant and upto date) information at all level and highlight areas which need top management s intervention Providing a mechanism for smooth exchange of data and information between project stakeholders, thereby improving project coordination, knowledge sharing, learning and informed decision making Improve accuracy, consistency and availability of documentation to support engineering estimation, designs, plans and contracting. Efficiency and staff productivity gains through business process re engineering Innovation virtual modelling and designs Builds transparency and accountability at all levels 3

4 E Tools Categories Simple Spreadsheet / Database Systems Commercial Off the Shelf (COTS) E tools Bespoke Systems Enterprise Resource Planning (ERP) 4

5 Construction Project Management Challenges Integration Management Scope Management Ensure effective coordination of all project components among all project stakeholders Ensure that all required work is executed with minimum changes Time Management Maintain schedule control Cost Management Maintain budgetary control Quality Management Ensure all standards are met and all requirements are complete Resource Management Communications Management Risk Management Procurement Management Effectively employ and manage equipment, labour and materials Maintain effective internal and external information sharing and communication flow to build accountability and transparency Assess, detect and mitigate potential risks Obtain goods and services while ensuing best value for money & transparency. 5

6 6 Problem Solution Matrix : Supervision Engineer Level

7 7 Problem Solution Matrix : Chief Engineer Level

8 8 Problem Solution Matrix : Principal Secretary Level

9 Adopting E Tools : Levels of Sophistication Distinguishing one E Tool from another 1. Range and depth of functionality provided 2. Degree of user friendliness 3. Level of integration and interoperability 4. Level of security and collaboration features 5. Level of technical support and customization potential 6. Pricing model and Total Cost of Ownership (TCO) 9

10 Suggested Roadmap Moving from What to How 10

11 Preparatory Phase Time Horizon : 2 3 months Orientation of top management on E Tools and orientation to change management at all levels Establish an E Tools Task Force, comprising of technology savvy engineers (from all levels) for championing and overseeing the implementation of all ICT work Prepare and finalise the Short, Medium and Long Term E Tools implementation plans and document them in a simple ICT Roadmap / Strategy document Identify 2 3 medium or large sized projects / contracts, in which E Tools will be piloted initially, before organisation wide roll out Finalise strategic decisions and broad level ICT standards (for interoperability, platform, database, etc.) document them in a simple ICT Policy document Allocate tentative budget for Short, Medium and Long Term E Tools implementation plans 11

12 Short Term Plan Time Horizon : One Year Procure computer hardware to ensure all users have access to ICT Establish Local Area Network and internet connectivity for all users in central and sub / field offices Conduct basic computer orientation (MS Office) training for all users Implement Selected E tools / Quick wins Identify simple tasks / functions which can be automated through simple E Tools such as MS Word, MS Excel / Primavera, etc. Identify specific areas, which could be automated MS Excel based Standard Schedule of Rate (SOR) for all engineering items MS Excel based Cost Estimation system for preparing the Engineer's Estimates Primavera based Project Planning & Scheduling System for 1 2 medium or large sized projects / contracts MS Word based templates for Request for Proposals (RFPs), Standard Bidding Documents (SBDs),including GCC, SCC and different kind of Contracts (Works, Item Rate, Turnkey, EPC etc.) MS Access Based Request for Inspection (RFIs) database 12

13 Medium Term Plan Time Horizon : 1 2 Years Review Existing Processes In House Select and Pilot E Tools Implement a simple Electronic Document Management System that can act as a central repository for all important documents Implement a simple Electronic Measurement Book (e MB) which, through mobile or tablet based devices capturing all measurement data at source, and automatically updating a central database Institutionalise a standardised Project Planning & Scheduling System, introduced in the previous phase, across ALL projects / Contracts Establish a Content Management System (CMS) based website which contains latest information on all projects and contracts being executed and their current status Finalise Budget Approvals Roll Out Piloted E Tools Capacity Building, Training and Change Management Conduct regular and intensive training programs for current and potential users of the E Tools implemented. Hire an ICT Project Management Consultant team, if required. Mandatory Use of E Tools 13

14 Long Term Plan Time Horizon : 2 3 Years Ensure integration across all E Tools implemented as per Short and Medium Term Plans Ensure ALL E Tools are implemented across ALL Projects / Contracts Establish Electronic Data Interchange (EDI) mechanism for transferring data between different computer systems of Project Consultants and Contractors Consider Technical and Financial Viability of moving all E Tools into a fully integrated Enterprise Resource Planning (ERP) system and implement, if found feasible 14

15 Quick Wins 15

16 Key Lessons Avoid reinventing the wheel Build on what exists Think of integration on right from the start Put in place simple ICT policy guidelines Think big, pilot first, scale rapidly. Budget for Total Cost of Ownership (TCO) Engineers to be in the driver s seat Identify enthusiastic champions early on Consider bespoke development only when no COTS / hybrid E Tool fits your requirement Consider Central and State government s E Governance initiatives and harmonise Parallel systems cause confusion and undermine E Tools implementation Top management s ownership and support is critical Mandatory Use of E Tools 16

17 A Presentation Sanjay Saxena 17