Thursday, April 29, 2010

Getting it right the first time, everytime !

It is widely known that project-driven construction companies running multiple highly complex projects face a clear problem in managing the business successfully. Industry experts say that the industry wastes billions of dollars due to out-of-control delays, cost overruns and other inefficiencies.

Traditionally, in the AEC  environment because of the  project-driven approach of doing business, all decisions are made at that level, and it is very difficult to aggregate information across multiple projects due to the Technologies that are being used to manage them. The only intersection that these projects have is the Financial System, where Invoices are paid and cost is allocated, but no actual Project work takes place. At that point at best only reactive action or mitigation can be undertaken.

Construction Companies that want to get in the path of competitive advantage have to start thinking about introducing enterprise-wide technologies, and start the process to standardization.

The American Institute of Architects (AIA) and other defined Integrated Project Delivery (IPD) as follows:

It's a Project delivery approach that integrates people, systems, business structures and practices into a process that collaborately harnesses the talents and insights of all participants to reduce waste and optimize efficiently through all phases of design, fabrication and construction

In my opinion, the path to IPD has to start with standardization wich will provide firms with the multilevel view that they need to better manage their projects and proactively fix any problems when they arise and minimize the impact on project performance and profitability.

Some of the benefits of standardization are as follows:
- Maximized and codified efficiency
- Visibility
- Collaboration and cimmunication
- Improved Compliance
- Retained intellectual capital
Some technology companies like Microsoft, Oracle and AutoDesk have developped applications and tools that address standardization and ultimately IPD.

In conclusion, Getting it right the first time, everytime will require some rethinking on the way Construction Companies operate. 

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