Performance Based Studies Research Group

-Abstract-

The US Army Medical Command (MEDCOM) annually manages 250 projects, with a scope of $300M, at 26 different sites. Due to current events and initiatives, MEDCOM is anticipating an increase in construction requirements. As a result, MEDCOM is seeking for a more efficient project management model that can optimize each project manager’s function as well as the organization. The hypothesis is that the entire organization is merely a summation of the project managers,

and that the organization’s bureaucracy problem is a magnification of the internal problems of a project manager. The new project management model must overcome the constraints of the lack of perceived information and expertise and bureaucracy of the environment. This paper proposes a model which is a combination of different processes and concepts which have been tested out in the delivery of construction for the past 13 years.

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-Abstract-

The demands for higher performance and increased efficiency have emphasized the importance of risk management for project managers (PM.) Using a traditional approach, PMs would increase management, direction and control to minimize risk. A new approach has been developed, which depends on alignment techniques.

It is a supply chain process which minimizes risk through preplanning, the assignment of the risk to the most knowledgeable party, assigning of accountability through measurement and the reduction of information flow, and assigning the minimization of risk that the contractor/vendor does not control to the contractor. This "futuristic" PM role is a paradigm shift from traditional project management.

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-Abstract-

The area of design, engineering, and construction has long been protected by the perception of professional expertise. With the advent of global competition, information technology, and lean thinking, pressure has been applied to the construction industry to become more efficient and effective in delivering performance. The client’s emphasis on value rather than technical expertise is reflected in the client’s primary award system in approaching both design and construction. This owner paradigm change affects the position of the construction professionals. Where previous practice allowed the professional to work in a protected technical silo, the future professional must work through the philosophy of a “supply chain” provider in a “transparent silo.”

They must decrease the overall transaction costs and construction risks of the entire supply chain and show “value added.” The new environment will include measurement of performance factors, performance lines of all participants, minimization of duplication of tasks, Alternate delivery processes including construction management @Risk, design-build, indefinite delivery, indefinite quantity, private/public/partnerships and design/build/operate are moving in that direction.

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-Abstract-

Future construction risk will be minimized by construction professionals who use a supply chain strategy that minimizes transaction costs and risk, best value selection, transferring risk to contractors who can minimize risk, having the contractors practice quality control to minimize both the risk that they control and do not control,

and putting a system of measurement of performance for all participants in the delivery chain that makes all participants accountable. This is an information environment that minimizes the flow of information, motivates the minimization of management, control, and direction, and minimizes decision making by those who are not accountable to minimize risk. This “futuristic” environment is foreign to construction professionals who increase the flow of information, maximize decision making, and practice a high degree of direction and control. This paper presents a sustainable best value and leadership based approach that shows how the future of construction will need to be if efficiency, performance, and value are to significantly increase.

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-Abstract-

The culture within the Federal Government Acquisitions is based on the Federal Acquisition Regulations (FAR) and its interpretation, often placing organizations/agencies in the cultural environment of the price based environment. In the healthcare system, clients depend on the qualifications and expertise of the design and construction team to meet their specific needs and requirements.

The hiring criteria of these experts have been primarily based on low bid or relationships, and have continuously resulted in poor performance. The US Army Medical Command (MEDCOM) (contracting approximately $100M in medical renovation awards per year) partnered with the Performance Based Studies Research Group (PBSRG) at Arizona State University, to create and test an information environment to assist in alleviating some of its cultural inefficiencies. The developed information environment minimized the flow of information, forced the contractors to concentrate on value and the assumption of risk, and stimulated an atmosphere of accountability. Through the system, the client’s internal bureaucratic resistance was minimized and without controlling the various contract/procurement processes, MEDCOM leadership has gained control of the performance of their infrastructure revitalization program by implementing a cultural environment of information.

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