Managing Major Projects
Managing Major Projects
There is a different way: how major projects could run more smoothly.
Things are currently not looking good for large-scale building projects – especially those involving a public sector authority as the principal.
Most of the reasons for the difficulties are home-made, they are basically already known.
- Unclear user processes and incomplete performance specifications
- Principal’s organization and responsibilities unclear
- Unrealistic cost expectations, failure to perform projections, and lack of risk analysis
- Ineffective planning and construction processes, excessive project duration
- Lengthy approval procedures and project interruptions
- Lack of transparency and an incorrect assessment of the general public
As Drees & Sommer’s practical management experience shows, cost-effective, timely, high-quality execution of large-scale projects is indeed possible. Numerous examples, including the Potsdamer Platz in Berlin, the new Trade Fair Center in Stuttgart, Germany, and the complex refurbishment of the Deutsche Bank headquarters in the German city of Frankfurt am Main demonstrate this. An optimal process can only be achieved if the principal is prepared to meet certain conditions.
The principal must
- define objectives clearly;
- adhere to defined objectives;
- establish a professional organization; and
- make quick and clear decisions after appropriate preparation.
If these conditions are met, project managers and engineers can ensure a project is completed on schedule, within budget and to the required standard of quality.
Effective project management with lean management
Modern project management is based on the principle of lean processes during every phase of the project. The entire process is based on lean management principles, which facilitate continuous improvement throughout the project period.
The goals of lean management are driven by the principles of the value creation process:
- maximization of value addition;
- reduction of waste in all processes;
- perfection of processes.
Lean management is derived from kaizen, a philosophy developed by the car manufacturer Toyota. Kaizen is translated as Continuous Improvement Process (CIP). To prevent ‘waste’ such as defects, cost overruns and project delays, project management has to delve significantly deeper into content and processes. Initially, of course, this is more time-consuming than a conventional approach. But this extra effort is compensated many times over by double-digit percentage reductions in time and costs.