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
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
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 email@example.com,
also feel free to visit our web site at www.ai2sa.co.za
for information on the host of strategic services we offer.