Case Study of Trans-ASEAN Gas Pipeline

CASE STUDY

The Complexities of Programme Management: Case Study of Trans-ASEAN Gas Pipeline

Anton Setiawan, Alya Shahroom, Ting Huang, Noor Syaza Zahidah

Heriot-Watt University, Edinburgh, United Kingdom

 


ABSTRACT  

By the end of 2015, member countries of the Association of Southeast Asian Nations (ASEAN) entered into regional economic integration called ASEAN Economic Community (AEC). One of the most important aspects of this integration is to secure energy supply in the region to achieve competitive economic region. Trans-ASEAN Gas Pipeline (TAGP) is an energy programme that focus on the optimisation of the region’s energy security. As a programme, however, TAGP is exposed to many challenges. This paper analyse the complexities of TAGP from six different perspectives, including technical, environmental, financial, taxation, jurisdictional and organisation. The organisational complexity is analyse using the “two-way” system approach. Our analysis concludes that TAGP is a capital intensive programme that requires extensive resources, including expertise in the technical and environmental fields. Due to its nature as a cross-border energy programme, TAGP also possess a high exposure in the taxation and jurisdictional aspects. Further, our analysis found that political interest adds complexities in the programme management. Programme management office (PMO) could increase the effectiveness of the programme, particularly in a cross-border programme where the volatility of economic and political condition is hard to predict.

KEYWORDS: Complexities, Programme Management, Trans-ASEAN Gas Pipeline

INTRODUCTION

As an organisation, The Association of Southeast Asian Nations (ASEAN) was established on 8 August 1967 in Bangkok, Thailand. The organisation has ten member countries, including the Philippines, Indonesia, Malaysia, Singapore, Thailand, Brunei Darussalam, Vietnam, Lao PDR, Myanmar, and Cambodia. According to ASEAN Declaration, ASEAN has seven aims and purposes which mainly focus on the cooperation within member countries in the aspects of economic growth, social progress, cultural development, regional security, education, and cooperation with the international and regional organisations.

In November 2007, the ASEAN Leaders agreed to enter into regional economic integration called ASEAN Economic Community (AEC) by the end of 2015. The AEC blueprint was created by identifying the characteristics and elements of the AEC. Four main elements of the AEC are single market and production base, competitive economic region, equitable economic development, and integration into the global economy. In regards to this, energy cooperation programme is highly important to achieve these objectives, particularly related to the establishment of the competitive economic region.

As a region with more than 600 million people, the demand of electricity and energy is extremely high. However, from the supply side, this is not the case. In the Southeast Asia region, the statistic from Asian Development Bank shows that 219 million people have lacked access to electricity and another 100 million people have only intermittent access to electricity and basic energy services (Sovacool, 2009). To cope with this situation, ASEAN decided to construct a Trans-ASEAN Gas Pipeline (TAGP) network, which will optimise the distribution of natural gas among ASEAN member countries.

Using TAGP as a case study, this paper analysing the complexities of energy programme management. The importance of programme management, including the tools and technique is examined. The literature review of the complexities in the programme management from different perspective also discussed. Further, the importance of programme management in the ASEAN energy programme is analysed from the perspective of complexities. Together with ASEAN Power Grid, TAGP is one of the most important energy programmes in the ASEAN. This paper is focused on analysis of the complexities of the TAGP as a programme. The complexities are discussed from six different aspects including technical, environmental, financial, taxation, jurisdictional, and organisational. An organisational complexity is analysed from the perspective of “two-party” programme system.

Our analysis concludes that TAGP is a capital intensive programme that requires expensive resources, including expertise in the technical and environmental fields. Due to its nature as a cross-border energy programme, TAGP also possesses a high exposure in the taxation and jurisdictional aspects. Our analysis found that the political intention adds complexities in the programme management, particularly in the environment with high volatility in the economic and political situation.

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About the Authors

pmwj46-May2016-Setiawan-PHOTO1
Anton Setiawan

Heriot-Watt University, UK
Politecnico di Milano, Italy
Umeå University, Sweden

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Anton Setiawan
is currently pursuing his Erasmus Joint-Master’s degree in Strategic Project Management European at Heriot-Watt University (UK), Politecnico di Milano (Italy), and Umeå University (Sweden). Anton holds a Bachelor’s of Economic in Accountancy. During four years of professional experience, Anton has held titles such as Junior Financial Auditor, Senior Financial Auditor and Senior Corporate Finance. Major Field of Study: Strategy and Project Management; Research Interests: project finance, urban development, sustainability. Anton may be contacted at [email protected]

 

pmwj46-May2016-Setiawan-PHOTO ALYA
Alya Shahroom

University Technology MARA, Malaysia
Heriot-Watt University, UK

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Alya Shahroom
is currently studying towards her Master in Energy at Heriot Watt University. She completed her Bachelor’s Degree in Electrical Power and Renewable Energy Engineering in June 2015. She did her industrial training at Movendi s.r.l, Italy and one of her responsibilities was to carry on a study concerning the utilization of palm oil waste as the energy source of a co-generator. Major Field of Study: Electrical Engineering; Research Interests: Environmental, Energy. Alya may be contacted at [email protected]

 

pmwj46-May2016-Setiawan-PHOTO TING
Ting Huang

Heriot-Watt University, UK
Politecnico di Milano, Italy
Universidad Politecnica de Madrid, Spain
Hong Kong University of Science and Technology, Hong Kong

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Ting Huang
is currently pursuing his Erasmus International Master’s degree in Industrial Management at Heriot-Watt University (UK), Politecnico di Milano (Italy), and Universidad Politecnica de Madrid (Spain). Ting holds a Bachelor’s of Chemistry and a Master’s of Chemical and Biomolecular Engineering. Ting was also Certified in Production and Inventory Management (CPIM) by APICS during her study. Major Field of Study: Supply Chain Management; Research Interests: supply chain, just in time. Ting may be contacted at [email protected]

 

pmwj46-May2016-Setiawan-PHOTO NOOR
Noor Syaza Zahidah Noor Hassan

Heriot-Watt University, UK
Politecnico di Milano, Italy
Universidad Politecnica de Madrid, Spain
Universiti Kuala Lumpur Maaysian Institute of Aviation Technology, Malaysia

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Noor Syaza Zahidah Noor Hassan
is currently pursuing her Erasmus International Master’s degree in Industrial Management at Heriot-Watt University (UK), Politecnico di Milano (Italy), and Universidad Politecnica de Madrid (Spain). Syaza holds a Bachelor’s degree in Aircraft Engineering Technology (Hons) Mechanical and a Diploma of Engineering Technology in Helicopter Maintenance. She did her thesis at Universiti Kuala Lumpur, Malaysian Institute in Aviation Technology on sustainability of biojet fuel in aviation. Major Field of Study: Supply Chain Management; Research Interests: Sustainability of biojet fuel in aviation. Syaza may be contacted at [email protected]

 

Evaluation of Project Failure Causes in a Community Based Organization (CBO): A case study of Pakistan

CASE STUDY

By Arif ud din

Abdul Wali Khan University

Pakistan


ABSTRACT

The purpose of this research study was to examine the main causes of the project failure in a Community Based Organization (CBO) operating in Khyber Pahtunkhwa (KPK), Pakistan. The current research identified and ranked significant reasons for the project failure. The results explain that the identified 25 Project failure causes are contributing to the project failure few were the more significant contributor and other were less.   The research data was collected from the employees and board of directors of the organization. A research study was conducted in one of a development organization (CBO) working with communities in disaster-prone areas in (KPK), Pakistan. The top five highest ranked project failure reasons were poor planning, poor project designing, lack of concrete support and commitment from upper management, poor project management, and dysfunctional decision- making process respectively.

Keywords: Project failure, CBO, Employees, Organization,

  1. INTRODUCTION

Community Based Organizations (CBOs) considered as voluntary organizations or grassroots level organizations, commonly unregistered and consists of local informal people get the financial resources mainly from members or NGOs. CBOs also received funding from the state   directly when the intermediary is available and start communication (Otiso, 2000). In Pakistan mostly CBOs or grassroots level organizations registered and usually received financial resources from the state, members and international donors through NGOs and some CBOs have the capacity to initiate direct donor funding without an intermediary.

CBOs operate through community-centered approach and development process occurs as community participation, readiness of micro-finance, community health project and improvement of infrastructure. CBOs consider as not for profit organizations operating on a local and national level for the welfare of community development (Clark, 1999).

CBOs positively impact the lives of rural community i.e increases in income, reproductive and health improvement, involve in activities of disaster risk reduction, quality education and increasing literacy rate. CBOs play a role of a bridge between citizens and the government and or more concern or responsive than any other agencies.

According to Karanja (1996)   CBOs meet target people needs and considering as a key target group for executing development projects at the grass root. CBOs do not only involve in poverty alleviation but also playing a key role in empowering local communities.

According to Hekala (2012)   64% donor funded projects fail a recent McKinsey- Devex survey put forward and findings showed that the two major reasons of project failure were poor project planning and lack of managerial skills.   More than 50% of World Bank many projects fail, according to U.S. Meltzer Commission report (2000). Dvir et al (2003) found that lack of planning will probably guarantee failure, but it does not assure success.

According to one study conducted on 97 failure projects the managerial controllable cause involved in project failure (Pinto J.K e tal 1990).

Current research study finds out the main causes/reason behind the project failure in community based organization. A Research study was required because the CBO projects fully or partially failed instead of huge funding and with all necessary resources required for operation. However, major problem CBO faced included not timely completion of projects, planned activities were not achieved accordingly, set quality standard was not achieved, and the community was unsatisfied with project deliverables.

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About the Author

pmwj45-Apr2016-ud-Din-PHOTO
Arif ud Din

Charsadda, Pakistan

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Arif ud Din is currently Program Coordinator for UYWO- Action Aid in Charsadda, Pakistan. During his career he has also been project coordinator for Action Aid Pakistan, Charsadda; project officer for CRDO- Care International, Pakistan; project officer and deputy team leader for Church World Service USA Pakistan/Afghanistan, Mansehra, KPK. Arif ud Din holds a MS/Phil in Project Management from COMSATS University. He also has a Master in Business Administration (MBA) degree with specialization in Management from Virtual University of Pakistan, a Master of Science degree in Chemistry from Hazara University Mansehra, and a Bachelor of Education (B.E.D) degree from Peshawar University, Pakistan. Arif can be contacted at [email protected]

Investigating Strategic Alignment through Project Implementation – The Case of BMW i


CASE STUDY

By Amela Trokić, Jeta Sahatqija, Konstantin Koehler and Katharina Machovsky

Austria, Bosnia-Herzegovina, Kosovo, Germany

 


 

ABSTRACT

In recent years, project management has become more concerned with strategic alignment whereby project success is defined in part by its ability to align with the organization’s overall strategy. Oftentimes, a project can be implemented successfully but not contribute to company success because it was not adequately incorporated into the company’s organizational framework rendering it inept. This emphasis on strategic project management can be seen throughout various industries, where more and more project managers and concerned with strategic alignment as a measure of success. This paper attempts to look at strategic project management from a practical perspective, by investigating the strategic project alignment of BMW’s Project i with the company’s overall business strategy.

INTRODUCTION

The orientation of business activities in a company wishing to maintain a competitive advantage within an evolving market requires an emphasis on strategic intent. Strategic intent refers to a defined course that a business plans on taking over a given period of time, in order to establish and maintain a leading role in the market (Campbell and Yeung, 1991). The strategic intent must be clearly defined and understood, it should be consistent yet flexible in order to allow a company to take advantage of new opportunities that arise (Hamel and Prahald, 1989). It also incorporates long-term goals which force the company to compete in innovative ways (Hamel and Prahald, 1989). During this course, the strategic intent requires a company to take specific actions in order to achieve its strategic goals, including the development and implementation of advanced projects. The ability to realize these projects in accordance with the company’s overall strategy helps attribute to the success of not only the project but the company on a whole. Successful alignment of projects requires consistency in the mission, vision and objectives throughout the company’s operational framework.

With BMW Group’s strategic objectives focusing on growth, shaping the future, access to technology and customers, and profitability, the ability to adjust to market fluctuations with new projects is necessary to maintain a leading strategic position. This is particularly true for today’s shifting markets which are reflecting changes in lifestyles as a result of depleting resources, ecological concerns, growing populations, and similar. With that in mind, this study will analyse the strategic alignment of BMW through the implementation of its projects. Starting with the establishment of the BMW Group and their rise within the premium automobile industry, this research will demonstrate how the organization implemented their new corporate strategy “Strategy Number ONE” as a response to changing market trends. The new mission and vision which developed as a result, were based on sustainability. The study will investigate how this change in strategy, which led BMW Group to invest in Project i, encouraged growth and the development of new technology, as well as contributed to shaping the future of sustainable e-mobility. It will present the evolution of Project i into the Group’s new series, BMW i, which led to both the electric i3 and hybrid i8 models as well as corresponding mobility services. Finally, this study will establish how BMW Group was able to successfully align their Project i initiative with their overall strategy and establish strategic intent through the implementation of BMW i into the Group’s portfolio.

BMW GROUP

History and Establishment of the Brand

Founded in Munich, Germany, BMW Group began operations in 1916 as an aviation company. The Group experienced significant success in the late 1930s, both on a domestic and regional level, largely due to a broadened product line which included motorcycles and automobiles (Norbye, 1984). Political and economic factors in 1945 nearly led the BMW Group into bankruptcy, necessitating reform on an organizational level (Nerad, 2006). Restructuring in this period saw the BMW Group turn towards new market segments focussing on high-performance and quality, a strategy which would become their model for success (Norbye, 1984). According to BMW Group’s 2013 Annual Report (2014), the company conducts activities in 150 countries with 28 manufacturing facilities in 13 countries, and a human-resource capital of 110,351 employees worldwide. They are an international leading luxury car and motorcycle manufacturer with 76.1 billion euros of reported revenue in 2013, and an automobile sales volume surpassing 2 million in 2014 (BMW Group, 2014a).

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About the Authors

pmwj43-Feb2016-Trokic-PHOTO
Amela Trokić

Bosnia and Herzegovina

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Amela Trokić
holds a Master in Strategic Project Management from Heriot Watt University, Politecnico di Milano and Umea University, and joint Master in Islamic Banking from the University in Sarajevo and the University in Bolton. She currently works as a project manager in the cabinet of the CEO at Bosna Bank International, an Islamic bank operating in Bosnia and Herzegovina. She also has experience as a project manager in the NGO sector, having worked on and implemented projects dealing with economic development in the US, Turkey and Balkan countries. Ms. Trokić can be contacted via https://ba.linkedin.com/in/amela-trokic-b845a263

 

pmwj44-Mar2016-Trokic-JETAJeta Sahatqija

Gjakova, Kosovo

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Jeta Sahatqija
holds a graduate degree from the consortium between Heriot Watt University; Politecnico di Milano; and Umea University in Strategic Project Management. Jeta has completed Bachelors of Science from the Rochester Institute of Technology (RIT) with concentration studies in Management, Public Policy and minor in Legal Studies. Additionally, she has attended the Dartmouth Entrepreneurial Programme in New Hampshire, United States of America. Professionally, she has worked in various fields from business administration to human rights. Currently, she mainly provides consulting services across start-ups which are still at initial phases of establishment. Ms. Sahatqija can be contacted via https://www.linkedin.com/in/jeta-sahatqija-0323a962

 

pmwj44-Mar2016-Trokic-KONSTANTINKonstantin Köhler

Austria / Germany

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Konstantin Köhler
studied business administration at the University of Münster and Marmara Üniversitesi in Istanbul. He recently finished his Master’s degree in Strategic Projekt Management (with distinction) at Heriot-Watt University in Edinburgh and is currently working as a consultant/project manager for deckwerth Projektberatung in Austria and Germany. Mr. Koehler can be contacted via https://www.linkedin.com/in/konstantin-koehler-a7bb31a0/en

 

pmwj44-Mar2016-Trokic-KATHARINA
Katharina Machovsky

Munich, Germany

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Katharina Machovsky
holds a Bachelor of Science degree in Business Administration from the Munich School of Management and a Master of Science in Strategic Project Management. During her Master studies she gained profound international experience. She has been living in three different countries and worked together with people from 20 different nations. Katharina’s professional experiences focus on marketing; from online marketing to advertising strategy. Furthermore, she worked in the field of product management within the aviation industry. Currently she is working as a strategy consultant in a medium-sized company in Munich, Germany. Ms. Machovsky can be contacted via https://www.linkedin.com/in/katharina-machovsky-8285a37b

 

 

Our Daughter’s Wedding – a case study

CASE STUDY

By Raju Rao, PMP, SCPM, OPM3 Certified Professional

and

Subhashini N Rao, M A B Ed

Chennai, India


Introduction

Setting the context

This case study is based on a personal project – our daughters’ wedding. Since one of us was formally certified as a project management professional it was but natural that we ensured that all copybook processes of project management were deployed as part of the planning process. This included a WBS, scheduling where required, resource planning, risk management and procurement. In that sense, it was a well-planned project and one week before the wedding we were pretty relaxed. Little did we know what was in store for us! The wedding dates were on 6th and 7th Dec and heavy rains struck Chennai in India from 1st Dec and its disastrous effects continued till 8th Dec (2). In the midst of all that we had to conduct the wedding. It was done against all odds considering that many weddings during the period were postponed or even cancelled.

pmwj43-Feb2016-Rao-PHOTO1pmwj43-Feb2016-Rao-PHOTO2pmwj43-Feb2016-Rao-PHOTO3

 

 

 

 

Exhibit 1 – The Chennai Floods

The Challenges

Phones/ Internet / Electricity – Most mobile phones stopped working as mobile towers were either in water flooded areas or had become inaccessible. Communication became a nightmare. Many parts of the city went without electricity for extended periods – 5 to 7 days. This was we believe a precautionary measure by the Electricity board to avoid mishaps due to short circuit. Due to lack of electricity even internet worked intermittently and sparingly.

Transportation – Radio taxis and Public transport (buses) stopped plying. Only those on the road were private vehicles / taxis, emergency vehicles, ambulances and auto-rickshaws. Petrol was unavailable and those who did have them had filled up outside the city. Airports remained closed due to flooding of the runway. Movement into the city was also impossible because many bridges and roads had been washed away by the swirling waters.

Food – Due to transportation bottlenecks, essentials like milk bread and vegetables became unavailable or were sold at exorbitant prices. Panic buying due to the crisis situation only added fuel to the fire.

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About the Authors

pmwj43-Feb2016-Rao-RAJU
Raju N Rao

Chennai, India

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Raju N Rao
is Founder of Xtraplus Solutions which is involved in consulting and training in Project Management. Raju has presented papers at Global Congresses and has been involved in the development of many standards of PMI particularly OPM3. He often writes for project management journals and is coauthor of two books – Project Management Circa 2025 and Organizational Project Management. He is a PMP, SCPM and a PMI certified OPM3 Professional. He was a Founder Board member of PMI Chennai Chapter, has been on the Leadership Team for Awards for PMI India and Global Advisory Board for OPM3 Professionals. Raju can be reached at [email protected]

 

pmwj43-Feb2016-Rao-SUBHASHINI
Subhashini N Rao

Chennai, India

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Subhashini N Rao
is a Senior Teacher & Head of Dept of English at P S Senior Secondary School, Chennai. She has 30 years of teaching experience in schools in India and the Middle East. She has been a Board examiner for the CBSE grade 12 examination and a Master trainer for CBSE’s Assessment of Speaking and Listening skills (ASL). Though formally not trained or certified in project management, she followed many of the principles in planning and executing the wedding. Subhashini can be reached at [email protected]

 

Transition to an Automated Online Talent Acquisition System in an IT Project-Based Organization: A Case Study

 

CASE STUDY

Dr. Debashish Sengupta
Alliance School of Business & Program Director
Alliance Ascent College, Alliance University, Bangalore, India

Prof. Ray Titus
Professor of Marketing and Strategy
Alliance School of Business, Alliance University, Bangalore, India

Subhashish Sengupta
PMP Pro & Project Manager
Bangalore, India

________________________________________________________________________

 

Evolution of Talent Acquisition

The evolution of recruitment as a function has been fascinating. The traditional recruitment involved recruiting over long timelines and use of print advertising (post, spray and pray). Process superseded end-result and the idea was to ensure right headcount. Later recruitment saw the shift to online and e-recruitment. The offline post-spray-pray of recruitment advertisements was complimented with online post-spray-pray of attracting candidates. The traditional recruitment and online recruitment existed side-by-side. The next version of recruitment was a considerable advancement over the previous versions. While the older forms of recruitment focused on the active job seekers and aimed at attracting them, the newer version of recruitment focused also on the passive job seekers. The passive job seekers are those who are not actively looking for a change of job but are precious talent who can be converted. The newer version of recruitment also saw the recruitment going social or in other words, social media recruitment. The use of social networking platforms like LinkedIn, Twitter saw recruiters connecting to professionals over social networks and attracting talent. The focus shifted from process to end-result. No more headcount is enough. Talent acquisition was the need of the hour.

Today all these versions interestingly co-exist, although there is increasing shift towards talent hiring. Employer branding has become all the more important. The next shift of recruitment is even more transformational and aims for the very first time to convert recruitment from a cost centre into a profit centre. What many times is dubbed as the fourth version of recruitment or recruitment 4.0 believes in the power of the network. It involves crowdsourcing and Gamification. The traditional job boards and job agencies lose significance. The recruitment also looks beyond recruiting traditional employees to recruiting talent over the network who connect, do the job and disconnect. The process follows an open call format i.e. being open to virtually anyone in the world. The volunteering workers join, connect over the network and do the job. This is known as crowdsourcing. ‘This depends on building and nurturing a “qualitative” community, a strong employment brand, vibrant social networks, mapped competitors, and putting in place a predictable talent pipeline for key hiring channels’ (Jeffery, 2011) (Foxall, 2013) (McClure, 2011) (Haterd, 2011). ‘Simply defined, crowdsourcing represents the act of a company or institution taking a function once performed by employees and outsourcing it to an undefined (and generally large) network of people in the form of an open call. This can take the form of peer-production (when the job is performed collaboratively), but is also often undertaken by sole individuals. The crucial prerequisite is the use of the open call format and the large network of potential laborers’ (Howe, 2006).

Technology continues to impact hiring in a big way. The war for talent on one hand makes it imminent for companies to find newer and better ways of acquiring talent. On the other hand there is a continuous pressure to reduce cost and improve the ROI on recruitment. In short, can technology help to improve the rigour and effectiveness of hiring and help in acquiring better talent at a lower cost? The more a company can do that, the greater advantage it has over its competitors. Better talent at a lower cost means even more in knowledge intensive and tech-skills intensive industry like Information Technology. IT Project-based organizations are increasingly transitioning to fully automate hiring using automation and artificial intelligence. The possibility of reducing human involvement and let machines take over the hiring initially in screening resumes and then in conducting selection tests and then even in scheduling interviews and finally conducting interviews and making offers (Nagy, 2013) (Paesani, 2013) (Jibe, 2015) (Rosenblum, 2015) (Faliagka, et al., 2012).

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About the Authors

pmwj41-Dec2015-Sengupta-DEBNASHDr. Debashish Sengupta

Professor, Organizational Leadership & Strategy
Alliance School of Business, Program Director
Alliance University, Bangalore, India

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Dr. Debashish Sengupta
currently works as a Professor in Organizational Leadership & Strategy Area with Alliance School of Business, Alliance University, Bangalore (India). Dr. Debashish Sengupta is the author of a Crossword bestseller book – ‘Employee Engagement’ (Wiley India, 2011). The book has been cited by KPMG in its report ‘Post Merger People Integration’ (2011). He has also authored four other books – ‘Business Drama’ (Zorba, 2014), ‘Human Resource Management’ (Wiley India, 2012) ‘You Can Beat Your Stress’ (Excel Books, 2007) and ‘FMI’ (Excel Books, 2010). He has been a book reviewer for the prestigious Emerald Group Publishing, London (U.K.). He is an avid researcher and has won best paper awards and best young researcher award for his research works. He occasionally writes columns, articles and case studies for reputed business publications. He writes a professional blog on people engagement – http://www.peopleengagement.blogspot.in/ Dr. Sengupta is a much sought speaker at various business forums and a resource person in several MDPs, corporate training programs. His invited talk on ‘Engaging Gen Y’ for the entire HR fraternity of Tata Consultancy Services, Bangalore was contributory in design of a Gen Y policy of the company. Email: [email protected] Twitter: @d_sengupta @employeeengage1

 

pmwj41-Dec2015-Sengupta-TITUSProf Ray Titus

Professor of Marketing and Strategy
Alliance School of Business
Alliance University, Bangalore, India

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Ray Titus
is the Professor and Marketing & Strategy at the Alliance School of Business, Alliance University, located at Bangalore, India. Ray’s entry into academia followed a decade long stint in the Industry where he served in Operations, Marketing, and Project roles. As an Industry Professional he’s overseen strategic growth infinitives that included product and category expansions and the launch of an independent strategic business unit.

Prof. Ray publishes his professional blog ‘Buyer Behaviour’ which is listed among the ‘Top 100 academic Blogs every professional investor must read’ by Currency Trading and ‘15 Must Read Indian Blogs about Investing & Business’ by INForum India. Ray is also a business columnist whose expert opinion features in leading business newspapers and magazines. email: [email protected];     Blog: http://www.buyerbehaviour.org/ Twitter handle: https://twitter.com/buyerbehaviour

 

pmwj41-Dec2015-Sengupta-SubhashishSubhashish Sengupta, PMP

PMP Pro & Project Manager
Bangalore, India

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Subhashish Sengupta
is a certified Project Management Professional (PMP®). He has over 15 years of work experience in the IT industry and his key strengths are in Project Development & Management, Delivery management, Project Analysis & Design. He currently works as Project Manager. He has played a leading role in coming-up with recommendations on implementing Agile in the Indian IT scenario. He has received several awards in his career and was awarded the ‘Star performer of the Year’ award for his professional contributions. Besides his present role, Subhashish also has interests in practice-oriented research, especially in the area of Project Management. Email: [email protected]

 

The Ravenel Bridge Project: Delivering Ahead of Schedule and Under Budget

A Risk Management Case Study

By Susan Parente, PMP

Connecticut, USA


ABSTRACT

In the construction field, being on time, on budget and within scope can sometimes occur as utopian goals. However effective risk management not only supports meeting these objectives, but it may also assist in delivery of project results ahead of schedule and under budget!

The Ravenel Bridge was a design-build project completed in 2005. This bridge replaced the John P. Grace Memorial Bridge and the Silas N. Pearman Bridge, which were built in 1929 and 1966. This bridge was designed to withstand a number of potential hazards, including: earthquakes, hurricanes and ship collisions.

The Arthur Ravenel Jr. Bridge (also known as the New Cooper River Bridge) Project is an excellent case study of how risk management supports achievement of meeting and exceeding project performance requirements. This bridge not only buoyed the transit connection of the Mount Pleasant and Charleston communities, it provided us with an excellent example of how risk management can make a profound difference in project performance and delivery of project objectives.

This paper reviews the practices used in the construction of the Arthur Ravenel Jr. Bridge, and how they relate to effective project risk management. It details how project risk management supported the completion of this large project under budget and ahead of schedule, while supporting environmentally friendly practices in construction.

We should not be under the impression that all projects are late and over budget. Instead let’s manage project uncertainty (risk) to deliver our projects ahead of schedule, and under budget, while meeting customer satisfaction requirements.

OVERVIEW

The objectives of this paper, Risk Management Case Study: Delivering Ahead of Schedule and Under Budget are to remind us of the feasibility of not only meeting project objectives of time, cost, and scope by delivering on scope, on time and within the project budget, but also the possibility of delivering project requirements ahead of schedule and under budget. This paper will engage in the topics of effective project planning and execution through the use of risk management. The goal of this paper is to provide readers with a sound example of the benefits of using project risk management for project planning and execution.

BACKGROUND

The Cooper River Bridge was a construction project of the SCDOT (South Carolina Department of Transportation). This was a bridge replacement project, in the Charleston, South Carolina area. The new bridge, the Arthur Ravenel Jr. Bridge, replaced 2 bridges which were at their end of life: The Grace Memorial and Pearman Bridges, which were along US 17 over the Cooper River. These bridges connected the cities of Charleston and Mount Pleasant, as did the bridge replacement. (USDOT, FHA, n.d.)

The main contractor for this project was Palmetto Bridge Constructors (PBC), a joint venture of Flatiron’s Civil Division and Tidewater/SKANSKA. A joint venture of TY Lin International and HDR provided design review, engineering and inspection services for SCDOT. The bridge cost was approximately $675 million and was the largest contract in SCDOT’s history. The project cost was 2.5 times the department’s annual construction budget and used a Design-Built approach, which means development began before design was completed.

The project was initiated in July 2001, with a completion of July 2006. The project was planned for 5 years, but PBC planned to complete it in 4 years to decrease overhead costs. The project was broken down into 5 subprojects (or phases): 2 interchanges, 2 high-level approaches, and the main span. Each phase had it own budget, schedule, equipment, and management.

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Editor’s note: This paper was originally presented at the 2nd annual University of Maryland Project Management Symposium in College Park, Maryland, USA in June 2015. It is republished here with the permission of the author and conference organizers.

 


 

About the Author

pmwj24-jul2014-Parente-AUTHOR IMAGESusan Parente

Connecticut, USA

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Susan Parente
, PMP, PMI-ACP, CISSP, PMI-RMP, ITIL, MSEM is a project engineer, consultant, speaker, author, and mentor who leads large complex IT software implementation projects, and the establishment of Enterprise PMOs. Ms. Parente’s focuses on risk management and Agile project management. She has 16+ years’ experience leading software and business development projects in the private and public sectors, including a decade of experience implementing IT projects for the DoD. Ms. Parente is also an Associate Professor at Post University in Connecticut. She has a BS in Mechanical Engineering from the University of Rochester in NY and has a MS in Engineering Management from George Washington University in DC. She is also PMP, CISSP, PMI-RMP, PMI-ACP and ITIL certified, and is a CMMI and ISO 9001 Practitioner.

Ms. Parente is a Principal Consultant at S3 Technologies, LLC. Her company’s focuses on revitalizing projects through the use of risk management. S3 Technologies does this by teaming with clients, stakeholders and vendors and using risk management to deliver project successes. Ms. Parente trains and mentors project managers in the area of project and risk management. She is also an Agile project management generalist. Ms. Parente has developed a methodology which she uses to implement risk management programs for both small and large clients and is currently completing her manuscript for a book on implementing risk management.

Susan can be contacted at [email protected]

 

Strategic Portfolio Management in the Irish Public Health Service

Clarity – Visibility – Control – Simplicity

CASE STUDY

By Seamus Woods

Head of Portfolio Management
Health Service Executive

Dublin, Ireland


 

The Health Service Executive (HSE) provides or funds all of Ireland’s public health service in hospitals and communities across the Republic of Ireland. It is a large organisation with over 100,000 employees and budget of €12,131m. Today the Health Service is made up of delivery system bodies and agencies each charged with the delivery of some aspects of health services. The development of the system has in many cases been based on the need to address specific health care problems at a particular point in time. Studies have shown that the system is highly fragmented with overlap and uncertainty in terms of who is responsible for services delivered.

It is widely accepted that changes were needed to achieve national health care goals efficiently, effectively and in an affordable manner. In that context the Government launched Future Health (Department of Health, 2012) that sets out a policy framework to radically reform Ireland’s health service and to ensure that the resources invested are used effectively to achieve good health outcomes. The HSE, to give effect to the ‘Future Health’ policy wanted to develop a Reform Portfolio around what it considers to be the major system priorities:

  • Reform of the acute hospital delivery system
  • Reform of the Community and Primary Care delivery system
  • Clinically-led, multi-disciplinary, cross-organisation, design authority for integrated models of care
  • Reform of ICT to strategic enabler of reform and operations
  • Reform of Finance Systems and Organisation
  • A new vision and strategy for Human Resources

To manage the Reform Portfolio the HSE set up a System Reform Group (SRG) to oversee the wide range of strategic reform programmes across the various care Divisions in the Health Services in which various methodologies, styles and approaches exists to both programme and project management. The SRG faced a number of critical challenges:

  • Achieving consistency in a decentralised organisation
  • Not ‘over egging’ the programme/project management methodologies
  • Getting sponsorship at the highest levels, nationally and locally
  • Getting the right engagement and culture change at all levels – clinical and non clinical
  • Managing the many ‘moving parts’

This paper describes the Portfolio approach to managing such a large Portfolio (42 programmes of work and over 500 projects).

More…

To read entire paper (click here)

 


 

About the Author

pmwj40-Nov2015-Woods-PHOTOSeamus Woods, IPMA – A, PMP

Health Service Executive
Institute of Project Management

Dublin, Ireland

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Seamus Woods is an Assistant National Director (Senior Portfolio Manager) in the Irish Health Service Executive and is also a faculty member of the Irish Institute of Project Management. He has over 29 years of experience at Senior Management level within the Health Services and more than 25 years’ experience of project management and change management as a practitioner, instructor and leader.

Working initially in the former Mid-Western Health Board he held senior roles at Board, Strategic and operational levels across a range of services. With the advent of the new health Service Executive in 2004 Seamus set up and led a national projects office for the community services sector .In 2010 he was seconded to Children services to programme manage the setting up of a new national Children’s Agency (TUSLA) and its associated Reform programme. He returned to the Health Service Executive in 2013 as Head of Portfolio Management for the Health Reform Programme.

Seamus can be contacted at [email protected]

 

Construction Procurement and Project Management in Japan’s Public Sector

“Win-Win-Win”

A case study in collaboration and change

By Ian Heptinstall

UK

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Overview

Since the mid 2000’s Japan has made a radical shift in how public sector construction procurement is managed.  This has resulted in faster and more efficient delivery, improved value for money, and higher profitability for contractors.  This report describes the changes they have made.

PMMS believe this must be one of the largest scale examples of collaborative procurement in action.  One of the world’s largest construction organisations made this change happen and reaped the benefits that traditional competition by itself was not delivering.  It came from a thorough understanding of what drove cost, managing risk and removing waste, and finding ways in which all parties could achieve more of their objectives.  Interestingly this change did not require the client to favour a handful of key suppliers, outsource its responsibilities, or to sign any long-term frameworks.  Competition was still used to select contractors, and SME’s could do as well as large contractors.

There are lessons and opportunities from this case which can be used by public and private sector organisations – both clients and main contractors – around the world.

Introduction

This report describes the significant changes made by the Japanese Government in the management of their public works capital programme.  It is based on a meeting in Tokyo which the author had in November 2011 with Yuji Kishira (now MD of Goldratt Consulting in Japan) and Masanori Seta, Senior Manager: Construction Procurement Policy & Strategy at the Ministry of Land Infrastructure and Transport (MLIT).

More…

To read entire paper (click here)

ABOUT THE AUTHOR

Ian Heptinstall BEng, CEng, MCIPS

Author

Ian Heptinstall  is a UK-based consultant whose procurement experience has seen him sitting in most of the seats around the buyer-supplier table.  He has in-depth expertise in indirect and CapEx procurement, and has led significant organisational change projects.  As a chartered engineer, working in the chemicals industry, early procurement experience was as a project manager in ICI and Zeneca, selecting and managing suppliers with little professional input.  It was in Zeneca that he moved into his first procurement role.  After 15 years with ICI and Zeneca, Ian then moved into the supplier’s seat working at the engineering consultancy Eutech. Ian and his team managed capital projects for clients in the process industry, and he also designed and delivered training and development assignments in project management and procurement.  One of his major projects used an innovative project alliance approach to its management and contract.  As well as winning an award for Supply Chain Excellence, the project brought significant benefit to the client Rohm and Haas.  He returned to procurement as Engineering Procurement Manager for Glaxo Welcome, leading teams at the four main production facilities in the UK and Singapore.  When Glaxo merged with Smithkline Beecham he moved to the central Capital Procurement team as Sourcing Group Manager.  From GSK he joined a small global management consultancy, initially working in the USA on a major procurement change programme with Sears.  Back in Europe Ian worked on a number of short analysis projects across several industries, before joining a 12 month assignment with steel manufacturer Arcelor.  Immediately prior to joining PMMS Ian was Supply Chain Director at NG Bailey, a leading UK construction company,  where he led the transformation of procurement from a distributed, inconsistent and transactional overhead, to a centrally-led, integrated, value-adding part of the business.  The training part of this work was recognised with a UK National Training Award in 2007.  Ian enjoys all aspects of procurement improvement, from strategic operational and organisation design, to training and coaching.  Particular interests include procurement of capital projects and commercial awareness training for non-procurement staff.  Ian can work in French as well as English.  He can be contacted at [email protected].