Integrated Management Systems Industry View 2

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Integrated Management SystemsIndustry View 2

• Michael Thompson BSc (Eng), FFICE, MCIWEM
• Roe Thompson Limited

A Member of the Team Focus Group
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What is Integrated Management?

• The intents of Integrated Management are
• to improve delivery of the specified product to
  the customer
• to improve communication to the man at the sharp
  end
• to remove duplication of paperwork arising from
  operating separate management systems which
  actually have a lot in common.
• We cannot ignore the close affiliation of these
  intents with those of the Partnering approach.

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What is Integrated Management?

• These intents can be achieved in a Project
  through the Partnering or Team approach by
  setting up, to all intents and purposes, a Single
  Organisation which can draw from the several
  organisations involved
• Better control of the Project and the finished
  product can be attained
• Some of the annual performance targets,
  suggested by Sir John Egan in Rethinking
  Construction (July 1998), can be approached
• We will get ever closer to the concepts of Best
  Practice

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Rethinking Construction
ANNUAL PERFORMANCE TARGETS
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What is Best Practice?

• There is no single definition for Best Practice.
• One definition
• It is the achievement of all the goals laid down
  by a Project Team (including the Client) for the
  final product, by consideration of the best
  techniques of procurement, contract strategy,
  quality assurance and good supply management.

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Can we do things better?

• When we look back, could we have done better with
  our projects?
• Even with the Partnering / Team approach could we
  have done better?
• Should we not strive for 100 in Excellent?
• Would not then Best Practice be achieved?

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Case History Pennington WwTW

• Four organisations, working together without
  walls between them
• Client- Southern Water
• Project Manager- Montgomery Watson
• Designer- McDowells
• Contractor- Birse Construction

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The Challenge

• Build a brand new sewage treatment works from
  outline design on a green field site within 21
  months and within budget
• Undertake the earthworks during the worst period
  of the year!.

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A Quick Start

• The Project started on 24 July 1995
• The Team Building Workshop took place on 31 July
  1995 and a Charter agreed and signed
• The Value Management Workshop commenced on 2
  August 1995
• A firm outline design was in place within 10 days.

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The Charter

• Mission Statement
• Our project objectives are to deliver the scheme
  to the desired quality and levels of service at
  the lowest life-cycle cost and highest value, on
  time and with no surprises to the satisfaction of
  all Partnering Team Organisations

Alliance Charter
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The Pennington Organisation
Independent of the Pennington Team was a firm of
Quantity Surveyors auditing expenditure, using
the Contractors cost files.
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Value Management

• The Team underwent an intensive VM workshop phase
  within the first three weeks of scheme
  commencement
• This developed an optimum outline design
• The Clients Operations personnel signed up to
  the Teams outline design on completion of the VM
  workshop

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V M Cost Comparisons
Preferred option - Scenario 5
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The Programme Advantage

• Typical comparison
• Partnering (Integrated Management) - 21 months
• DC - 26 months
• Conventional - 30 months
• Savings in time ? Savings in cost

Partnering
Design and Construct
Conventional
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The Pennington Contol Plan

• The foundation of the Integrated Management
  System, the Control Plan (Project Management
  Plan) addressed all aspects of the Scheme
• It linked to the Plans of all four parties in the
  Partnership

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Principal Issues Addressed

• The Partnership and its Arrangement
• Contracts
• Quality Systems and Procedures
• Safety (incl. CDM)
• Environment
• Programme
• Variation orders
• Reporting

• Design
• Procurement
• Manufacture
• Construction
• Installation
• Commissioning
• Performance Testing
• HS File (inc. OM)
• Successes Lessons Learnt

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The Filing System

• A Single Filing System for all to use.
• No letters between partners, but confirmation
  memos
• Other files between Contractor and
  Sub-contractors also accessible
• Everything auditable.

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Some Pennington Successes

• Rapid establishment of the design with confidence
  through Value Management processes
• Effective Risk Management relating to Planning
  Permission and Discharge Consent
• Design and construction taking place concurrently

• Rapid appointment of sub-contractors
• Self supervision of construction works (TQM
  approach)
• Joint planning with Operations the testing and
  commissioning of the Plant
• Fast resolution of earthworks problems

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Pennington - Conclusion

• Completed and commissioned 2 weeks early
• Completed 700,000 within budget
• Self-supervised - quality excellent!
• Good Health Safety record
• Environmental constraints observed
• But in retrospect, we are sure that we could have
  done better!

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Where to next?

• Hundreds of Project Teams are being formed
  annually, adopting the Partnering Approach with
  Integrated Management
• Many of these are producing successful projects
• But remarkably the approach is still very new for
  a good many in the construction industry
• More and more need to understand the benefits
  that can be achieved through the approach,
  particularly at a senior level.