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-

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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-Abstract-

For the past 14 years, the Performance Based Studies Research Group (PBSRG) has created, tested, and modified simplistic deductive models to predict the future outcome of construction projects. The models are a part of the Information Measurement Theory (IMT).

The authors hypothesize that these simple, deductive models can be used in any industry to identify high performance project managers. This is a different project management paradigm that focuses on using logic and reason instead of personal experience and bias. It uses alignment instead of management to deliver successful results with minimal effort and decision making. The paper includes the deductive models, the logic which links the models, and the resulting process/structure which optimizes the existing PM model.

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-Abstract-

The authors hypothesize that a project manager can be more successful by minimizing daily reactive management efforts and instead implementing a structure that forces the minimization of risk through preplanning. This is tested by monitoring the performance of a single contractor with historical low performance in both situations (the proposed environment and the traditional process) and identifying any differential.

The two situations will also be analyzed to see if the proposed environment can attract higher performing contractors who find the new PM structure more conducive. The tests were run in the southern United States on four construction projects. The results of the tests validated the hypothesis, and raised the PM’s potential for success. The new structure minimized the need for daily management, assisted previously nonperforming contractors to perform, and attracted a high performance contractor who delivered a better performance at a lower price.

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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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