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BACKGROUND

It stands to reason that a host of different aspects are to be managed to ensure that a project achieves its original purpose often used to motivate it in the 1st place. For example if a project is undertaken primarily to mitigate the risk associated to archaic equipment installed at a specific cost and this results in excessive downtime then it may be considered that the project is a failure. There should also be no reason not to add value during the risk mitigation process i.e. by capturing the process knowledge often lost due to high turn over of experienced personnel. This is often not the case due to conflicting business drivers along with the way in which a project is approached for commercial reasons. Typically from a system integrator point of view the main driver is to perform the project as fast and there for as profitable as possible. Consequently it is important to measure the performance of the project management function against contracted parameters.

METRICS

AI2SA based on their experience gained scoping and managing industrial systems projects have witnessed that it is vital to measure the control of Risk, Information, Progress, Budget and Quality throughout the life cycle of a project and has developed a KPI score card for this.


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From the above it is important to note that RISK is considered the most important aspect. The reason for this is typically that just 1% of unplanned down time may amount to millions of Rand’s lost which far out way the value of most contracts. Risk assessments are a typical mitigation tool. Next expedited INFORMATION flow is vital to meet tight deadlines. Communications must hence be managed by a formal process. PROGRESS is further managed by specifically raising notifications of delays or under extreme conditions even suspending payments. It is also vital to maintain all BUDGET variations to within +/- 5% of contract price to avoid asking the board for additional funding due to complexity involved. Finally on going QUALITY audits are conducted to ensure at least an 85% compliancy to quality specifications.

For more information please feel free to phone the author on +27 (0) 82 559-7437 / +27 (0) 12 993-3637 or mail him at petrus.klopper@ai2sa.co.za, also feel free to visit our web site at www.ai2sa.co.za for information on the host of strategic services we offer.