The Role of Taxonomy and Ontology in Semantic Layers - Heather Hedden.pdf
Connecting Teams Project-Wide to Optimize Decision-Making
1. CONFIDENTIAL | 1
Featured Project:
Marina Bay Sands Casino Resort, Singapore
Connecting teams project-wide
The rise of the “gigaproject”
from mega to giga and why it matters
Guy Barlow
Global Commercial Director
Aconex
16 November 2017
2. CONFIDENTIAL | 2
Talking Points
The Goal
Rise of Complexity
Obvious & Hidden Challenges
Moving Forward
3. CONFIDENTIAL | 3
Unlocking Growth
Are we there yet?
Innovation
• What kind of projects have
the most risk?
• What drives change? How
good are we at managing it?
• What delivery methods work
best? Do they differ
regionally? By industry?
• Do we have meaningful and
actionable business insights?
Or just lots of data?
• Who are the best clients to
work for? Where do we
place our bets?
Execution
• Can project leaders focus on
project delivery rather than
data gathering?
• Can information flow freely
between team members,
both internal and external?
• Can we have financial line-
of-sight visibility across our
projects and portfolio?
• Can we integrate mission
critical systems to reduce
duplication and risk of error?
Scale
• Do you feel like you start
over for every new project?
• Can you leverage best
practices based on
performance?
• Is training/supporting new
internal and external teams
draining your resources?
• Can your systems adapt to
new business challenges?
5. CONFIDENTIAL | 5
Emergence of gigaprojects
The list keeps growing…
1. International Space Station – $150B
2. Al Maktoum International Airport (Dubai) – $82B
3. South-to-North Water Transfer Project (China) – $78B
4. California High-Speed Rail – $70B
5. Dubailand – $64B
6. London Crossrail Project – $23B
7. Beijing Daxing International Airport – $13B
8. Jubail II (Saudi Arabia) – $11B
9. Hong Kong-Zhuhai-Macao Bridge – $10.6B
“…ultralarge
projects represent
an exponentially
tougher challenge
than a typical
megaproject…”
McKinsey
6. CONFIDENTIAL | 6
Infrastructure projects are complex and
create a lot information
Deep relationships are formed between
organisations across projects
Complex systems are inherently
challenging – unstable?
Ever-increasing complexity
Exponential growth in data & information
7. CONFIDENTIAL | 7
The Results
Current approaches are flawed, wasteful & not sustainable
“A 1% reduction in costs would save the construction industry approximately $100 billion annually”
•Average project cost overrun is 70%
•Prices of construction projects have
risen faster than the consumer price
index
+70%
Increasing
Overruns & Costs
•Share price drop of 12% after a
significant negative project event
•Infrastructure projects are more
exposed to political & economic risks
-12%
Growing Risks
•Only 1% in productivity gains over 20
years
•Reasonable productivity growth could
add $1.6T to the industry
+1%
Stagnant
Productivity
8. CONFIDENTIAL | 8
Connecting 3 Critical Elements
Driving Innovation, Opportunity & Growth
Technology
”Research found that the
construction sector lagged
behind most other parts of the
US economy in the intensity of
digital assets, usage, and labor."
Process
"The differing skill sets and
working styles of architects and
engineers affect the way they
work with contractors and can
prevent the right degree of
cooperation and overlap
needed for optimizing the
design-build process."
People
"The skill level of supervisors
and project managers is critical
for good on-site productivity,
but it can vary greatly among
employees across the same
firm."
9. CONFIDENTIAL | 9
RFIs
Change Orders & Variations
Payment Applications
Transmittals & Doc Distribution
Checklists & Punch Lists
Bid & Tender Management
Inefficient & Broken
Processes
Technology & Process
Disconnected, substandard project controls leave you uncertain and exposed
Information
Silos
Poor/Failing
Performance
CAN’T make informed
decisions or take action
➕ =Estimates
Budgets
Actuals
Commit-
ments
Schedule
Contracts
Technology Process
10. CONFIDENTIAL | 10
RFIs
Change Orders & Variations
Payment Applications
Transmittals & Doc Distribution
Checklists & Punch Lists
Bid & Tender Management
Inefficient & Broken
Processes
Technology & Process…and people
Disconnected, substandard project controls leave you uncertain and exposed
Information
Silos
Poor/Failing
Performance
CAN’T make informed
decisions or take action
➕ =Estimates
Budgets
Actuals
Commit-
ments
Schedule
Contracts
Technology Process
People
11. CONFIDENTIAL | 11
A different view of “People”
What was found…
• findings challenge the assumption of
human rationality
• established a cognitive basis for common
human errors
Why this matters…
US$1T wasted in infrastructure projects
Bias in Decision-making
12. CONFIDENTIAL | 12
1. Confirmation Bias – looking for information
that supports your beliefs
2. Anchoring – base your final decision from
information gained earlier
3. Overconfidence Bias – too much faith in
your own knowledge
4. Gambler's Fallacy – the expectation that
past events influence the future
5. Fundamental Attribution Error – the
tendency to blame others when things go
wrong
It’s in our DNA
You’re only human
13. CONFIDENTIAL | 13
Connecting Technology, Process and People
Too much “gut” decision-making
Poor/Failing
Performance
CAN’T make informed
decisions or take action
➕ =
Information
Silos
Estimate
Budgets
Actuals
Commit
-ments
Schedule
Contract
Technology
RFIs
Change Orders & Variations
Payment Applications
Transmittals & Doc Distribution
Checklists & Punch Lists
Bid & Tender Management
Inefficient &
Broken Processes
Process
Confirmation
Bias
Anchoring
Overconfidence
Bias
Gambler's
Fallacy
Fundamental
Attribution
Error
Too little time to correct for biasesScrambling to get the info needed
People
➕
15. CONFIDENTIAL | 15
Recognizing Biases
Admitting you have a problem
Confirmation
Bias
Challenge what
you think
Anchoring
Don't rush to
judgement
Overconfidence
Bias
Find objective
data
Gambler's Fallacy
Adopt a different
perspective
Fundamental
Attribution Error
Avoid judgement
16. CONFIDENTIAL | 16
Technology, Process & People
The complete picture to optimize decision-making
➕ =
Information
Silos
Estimate
Budgets
Actuals
Commit
-ments
Schedule
Contract
Technology
RFIs
Change Orders & Variations
Payment Applications
Transmittals & Doc Distribution
Checklists & Punch Lists
Bid & Tender Management
Inefficient &
Broken Processes
Process
Confirmation
Bias
Challenge what
you think
Anchoring
Don't rush to
judgement
Overconfidence
Bias
Find objective
data
Gambler's
Fallacy
Adopt a
different
perspective
Fundamental
Attribution
Error
Avoid
judgement
People
➕
More time to correct for biasesEasy to get the info needed
17. CONFIDENTIAL | 17
USD$5B Facility
Objectives
• Easy way to deliver real time & accurate
forecast to management
• Track budget and cost at any level of detail
- granular level (WBS) & actuals
• Reporting - create customised reports
• Track progress & performance for each
section (project) & overall single view
• P6 integration (5-8K schedule activities)
Value
• Financial Discipline – heightened visibility to how they are performing against budgets
• Risk Mitigation – easily track, validate, and audit incoming information
• Operational Excellence – efficiently documenting change & invoices along with work completed
Solution
• Implemented in 4 weeks
• Multiple projects set-up for each
section of the factory (6 “projects”)
• Reduced 10,000 cost code Items to
1,000
• Up to 50 subcontractors and suppliers -
submit payment and changes
• P6 schedule integration
Challenges
• Multiple Cost Tools - Spreadsheets,
P6, In-house Contract Admin, ERP
• Unclear what money they had to
spend or how it was being spent
• Project reporting was manual and
unacceptable
• Senior management only receiving
reports from Finance - lack of detail
18. CONFIDENTIAL | 18
1. Single source of the truth – reality sets in when it’s time to report out
2. Connect schedule and cost – without it, the true effect of change is impossible
3. Flexible and scalable systems – your projects and business will change over time
4. Effective change management – manage change, from initiation to resolution
5. Informed decision making – get the facts, real-time & take the time
5 Ways to Minimize Complexity
19. CONFIDENTIAL | 19
Featured Project:
Marina Bay Sands Casino Resort, Singapore
Connecting teams project-wide
Thank you.
Join us for a cocktail reception
at the Royal Oak Suite, box 30
Notas do Editor
“Bridging infrastructure gaps: Has the world made progress?”, McKinsey, 2017
1. International Space Station – $150 billion (as of 2010)The most expensive single item ever built. Expansions beyond 2020 are estimated to eventually cost $1 trillion.
2. Al Maktoum International Airport – $82 billionThis airport in Dubai will be fully operational by 2018. It will be the world’s largest in terms of size and passenger volume – so big that four jets will be able to land simultaneously.
3. South-to-North Water Transfer Project – $78 billion (as of 2014)Thought the Three Gorges Dam was massive? This other Chinese megaproject is already nearly three times as expensive – it aims to divert water from the Yangtze River using three huge canals to bring it to the north of the country.
4. California High-Speed Rail – $70 billionSpanning 1,300 km (808 mi), this will link San Francisco to Los Angeles.
5. Dubailand – $64 billionThis mega theme park project will open in 2025 in Dubai. It will also have the world’s largest hotel (6,500 rooms), sports venues, eco-tourism, science attractions, and a giant mall.
6. London Crossrail Project – $23 billionLondon is expanding its underground system, with 42 km (26 mi) of new tunnels to connect 40 stations. Everything will be complete by 2020.
7. Beijing Daxing International Airport – $13 billionOpening in 2025, this airport megaproject will have seven runways and the largest terminal in the world. It will help ease the load on nearby Beijing Capital International Airport.
8. Jubail II – $11 billionThe second phase of development of the Jubail Industrial City in Saudi Arabia will add 100 industrial plants, an oil refinery, and one of the bigger desalination plants in the world.
9. Hong Kong-Zhuhai-Macao Bridge – $10.6 billionA series of bridges and undersea tunnels to link the three major cities on the Pearl River Delta in China. Ultimately, it will be 50 km (31 mi) of links, opening sometime beyond 2021.
Evolution of the ANZ and Asia region’s airport project network – 173 projects, 3,529 participating organisations and 5.2M mails
Can you relate to these points? (Answer is always “Yes”)
Can you tell me about some examples that come to mind?
What do you think were/are the drivers behind them? What was the underlying cause?
Source:
“1% Reduction”
Increasing Overruns & Costs
Stagnant Productivity
Source: “REINVENTING CONSTRUCTION: A ROUTE TO HIGHER PRODUCTIVITY”, McKinsey Global Institute, 2017
Growing Risks Source: “Capital projects: Is your board doing enough? A user-friendly board guide for effective capital projects oversight”, PwC, 2013
“Capital project and infrastructure spending outlook: Agile strategies for changing markets”, PwC, 2016
Quotes all from: McKinsey Global Institute, BRIDGING GLOBAL INFRASTRUCTURE GAPS, JUNE 2016
Goal here is to point out that all of these companies faced these issues and made the decision to invest in CC to drive growth, reduce risk, etc.
We’ve heard from project controls teams/project leaders like you that they need help. They need collaboration, automation, and efficiency gains for cost management.
Why is it a challenge? Historically cost management has been a disconnected process. And many companies fail to achieve high performance levels because of fragmentation.
Here are a few relevant examples…
Cost data continues to be siloed across every project, across spreadsheets and across each company’s own technology systems - there is no single source of truth when it comes to measuring program health that all parties can trust
Cost engineers, project controls specialists, and project managers– are constantly still chasing data, trying to manually piece together a single view of how their programs are performing.
The combination of delayed insights and the fact that project change is constant makes it impossible to measure performance against the baseline or approved budget for all parties across the project.
We’ve heard from project controls teams/project leaders like you that they need help. They need collaboration, automation, and efficiency gains for cost management.
Why is it a challenge? Historically cost management has been a disconnected process. And many companies fail to achieve high performance levels because of fragmentation.
Here are a few relevant examples…
Cost data continues to be siloed across every project, across spreadsheets and across each company’s own technology systems - there is no single source of truth when it comes to measuring program health that all parties can trust
Cost engineers, project controls specialists, and project managers– are constantly still chasing data, trying to manually piece together a single view of how their programs are performing.
The combination of delayed insights and the fact that project change is constant makes it impossible to measure performance against the baseline or approved budget for all parties across the project.
Confirmation bias happens when you look for information that supports your existing beliefs, and reject data that go against what you believe. This can lead you to make biased decisions, because you don't factor in all of the relevant information.
Anchoring – first impression
We’ve heard from project controls teams/project leaders like you that they need help. They need collaboration, automation, and efficiency gains for cost management.
Why is it a challenge? Historically cost management has been a disconnected process. And many companies fail to achieve high performance levels because of fragmentation.
Here are a few relevant examples…
Cost data continues to be siloed across every project, across spreadsheets and across each company’s own technology systems - there is no single source of truth when it comes to measuring program health that all parties can trust
Cost engineers, project controls specialists, and project managers– are constantly still chasing data, trying to manually piece together a single view of how their programs are performing.
The combination of delayed insights and the fact that project change is constant makes it impossible to measure performance against the baseline or approved budget for all parties across the project.
Hoards of data; historically paper
We’ve heard from project controls teams/project leaders like you that they need help. They need collaboration, automation, and efficiency gains for cost management.
Why is it a challenge? Historically cost management has been a disconnected process. And many companies fail to achieve high performance levels because of fragmentation.
Here are a few relevant examples…
Cost data continues to be siloed across every project, across spreadsheets and across each company’s own technology systems - there is no single source of truth when it comes to measuring program health that all parties can trust
Cost engineers, project controls specialists, and project managers– are constantly still chasing data, trying to manually piece together a single view of how their programs are performing.
The combination of delayed insights and the fact that project change is constant makes it impossible to measure performance against the baseline or approved budget for all parties across the project.