Performance Based Studies Research Group

-Abstract-

A new project management (PM) model for construction and other services delivery, the Performance information Procurement System (PIPS), has been developed at Arizona State University.  The leadership based model varies from traditional management by using principles of simplicity, logic, efficiency, alignment, accountability, and preplanning.  The new PM model minimizes many of the issues of more developed construction industries, and has the capability to assist less developed countries in avoiding ineffective, management based practices. The hypothesis being proposed is that a country without years of experience and mature project management programs can utilize the simplicity and logic of the new process that minimizes the need for very experienced construction/project management and motivates the less mature construction industry to more quickly and efficiently build its construction workforce.  The PBSRG group also hypothesizes that the new PM model may be easier to implement in a developing industry rather than in a well developed industry, which has years of implementing the traditional PM model.  The Fulbright program is sponsoring the movement of the new PM model into the African continent.

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-Abstract-

This is a case study testing the hypothesis that the best value PIPS process is a sustainable process/structure. The best value PIPS process has been tested 450 times over 13 years. However, the process/structure has not been sustainable. It has been resisted because it minimizes the need for construction management, simplifies the delivery process and transfers both risk and control to the contractors. This hypothesis was denied by the National Science Foundation, even though Harvard University proposed to match funding to test/implement the process at Harvard University.

The University of Minnesota approached the Performance Based Studies Research Group (PBSRG) to test and implement the process. Unlike other research clients, they agreed to meet the requirements for sustainability: implementing a strategic plan, using a core team, running tests before full implementation, and implementing continuous education to both client professionals and contractors. This study shows the results of the hypothesis testing.

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-Abstract-

The Performance Based Studies Research Group (PBSRG) in the Del E. Webb School of Construction at Arizona State University has conducted research in the development and application of best-value and leadership based process models in construction for the past 14 years. Despite significant success in terms of construction performance, the concepts and ideas of the best-value/leadership process models have met consistent resistance. Understanding the construction industry’s characteristics and inability to change easily, the PBSRG has embarked on an effort to test their research concepts of best-value/leadership process models in industries outside of construction.

This paper presents the initial test of the best-value/leadership process model outside of construction on a $300+ million dining services contract for the campus of Arizona State University. The initial result show a significant increases in guaranteed money, performance, and risk minimization. The expanse of the effort seeks to create an industry transformation model to be first tested in dining services and then brought back to the construction industry as an example to drive change in the future.

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-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-

A new project management model has been developed at Arizona State University (ASU).  The model is based on concepts of leadership and transfers risk and control of the project to the contractor/vendor, allowing the project manager to minimize their risk management functions of decision making, direction, control, and inspection by up to 90 percent.

With 98 percent success (on time, on budget, high customer satisfaction), the model has been tested in the delivery of construction over the last 13 years (Kashiwagi, 2008.)  It was hypothesized that the new project management model would produce similar results in services/industries outside of construction.  The project selected for the test was the ASU food services contract ($400M, ten year contract).  The contract has now been implemented for six months.  Results thus far validate the theoretical foundation of the model, and show positive potential in the delivery of services other than construction.

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