CII Instantaneous Project Controls
CII Instantaneous Project Controls
Prepared by
Construction Industry Institute
Research Team 316, Organizational Strategies
for Instantaneous Project Controls
CII members may reproduce and distribute this work internally in any medium at no cost
to internal recipients. CII members are permitted to revise and adapt this work for their
internal use, provided an informational copy is furnished to CII.
All CII members, current students, and faculty at a college or university are eligible to
purchase CII products at member prices. Faculty and students at a college or university
may reproduce and distribute this work without modification for educational use.
Chapter Page
1. Introduction 1
2. Methodology 3
3. Research Findings 7
4. Support Tools 17
5. Conclusions 21
v
Following are some of the most common benefits of instantaneous
project controls:
vi
1
Introduction
1
The research team tested two hypotheses:
In terms of scope, even though the initial focus was on estimating, risk
management, cost and schedule management, change management,
and earned value progressing and forecasting, it soon became evident
that other project management metrics (e.g., quality and field productivity
measures) are often monitored instantaneously and, thus, merited study.
2
2
Methodology
Survey,
Data Objectives
Surveys Interviews Benchmarking
Collection 1-2-3
and Metrics
Frequencies, Benefits,
Publications
Results Software, Strategies Barriers, &
& Tools
Controls Performance
3
a total installed cost of more than $41 billion. Since no previous
CII research had developed an accurate definition of the various
project controls functions needed during all project phases and,
since having such a definition was fundamental to the research,
RT 316 formulated a definition as part of its survey design.
2. Identify instantaneous project controls strategies and practices.
The research team designed 10 case studies to identify effective
instantaneous project controls strategies and practices. To
produce generalizable results, the team selected a varied case
study sample, which included CII member companies and non-
CII companies, companies within and outside the construction
industry (e.g., from the technology, manufacturing, aerospace, and
design sectors). The unit of analysis was the organization, except
in Case Study 2, the focus of which was a shutdown project. (See
the appendix.)
After formulating an interview protocol and framing16 open-ended
questions to obtain a holistic perspective on the implementation
of instantaneous controls, the research team conducted phone
interviews to collect data from subject matter experts at each
participating organization. Most of the interviewees were upper
managers. The survey questions addressed such topics as
business rationale, data collection and reporting, technologies,
benefits and barriers, and necessary implementation and
maintenance resources and efforts. Since the interview protocol
enabled the team to identify common traits and trends from
multiple perspectives, it facilitated the external validation and
generalizability of the strategies the team gleaned from the
interview data. To substantiate these strategies further, the team
also conducted a semi-structured face-to-face workshop with
subject matter experts with no previous exposure to this research.
3. Explain the value proposition for instantaneous project controls.
The team distributed an additional online survey instrument to all
CII members, to establish the value proposition for instantaneous
project controls. Thirty-seven subject matter experts affiliated
with 18 CII member organizations responded to its questions
on the barriers to and benefits of instantaneous controls, or
on the presence of instantaneous control functions within their
organizations. The responses showed that data integration and
4
data-sharing are critically important to effective instantaneous
project controls. Turning to the CII Benchmarking & Metrics
(BM&M) database and using its “information integration”
and “information automation” categories as surrogates for
instantaneous project controls, the team analyzed looked for
any relationships between instantaneous controls and cost and
schedule performance on project completed between 2005 and
2013. Performing a non-parametric statistical analysis, the team
compared the cost and schedule performance of projects with
high levels of information integration and automated analytics with
the cost and schedule performance of the rest of projects in the
database.
4. Provide high-impact tools and implementation guidance. After
analyzing the data from its surveys and workshop, the team
developed maturity matrix to help organizations assess their
actual and desired levels of instantaneous controls capability.
The maturity model presents three levels of maturity for the
nine strategies: 1) Culture; 2) Leadership; 3) Contracts; 4) Work
Planning; 5) Data Collection; and 6) Reporting; 7) Information
Integration; 8) Workflow Management; and 9) Business
Intelligence. The matrix describes the state of instantaneous
reporting at each maturity level in each category. Once it had
developed the maturity matrix, the team used it as the basis of
two tools for implementing instantaneous reporting strategies and
practices: the Quick Assessment (QA) and the Instantaneous
Quotient (IQ). The functionality of both these tools was tested and
evaluated by subject matter experts from CII member companies.
The team also formulated a workflow implementation process
on the basis of its interviews with instantaneous project controls
experts.
5
3
Research Findings
From its analysis of the data, the team assessed the current state of
project controls, identified the project functions requiring instantaneous
controls, determined when instantaneous controls can have the greatest
performance impact, and formulated implementation strategies. The
data also showed the benefits from and barriers to implementing
instantaneous controls on a project, particularly in terms of both
standalone and organization-wide implementation.
7
project performance if not monitored. Because even small variations in
performance can mean failure for capital facility projects, these principles
also apply to the construction industry.
The second principle is that any highly variable control function that can
significantly affect project performance (if not addressed in time) should
be instantaneously monitored. In automotive manufacturing, assembly
lines are monitored and any issues are instantly communicated. These
real-time alerts trigger corrective actions to minimize negative impacts
such as lost production time. For example, when a monitoring system
detects late materials deliveries, it automatically sets contingency plans
in motion.
8
In construction, cost, schedule, and field metrics commonly vary
greatly. Thus, organizations often require instantaneous controls in the
following key functions in these areas: activity completion/progress;
milestone progress; estimated time to completion; expenditures to date;
change orders; estimated total installed costs; quality issues; craft labor
productivity; engineered material status; work-in-place measurements;
and safety.
First, the team found that daily reporting on quality tests and inspections
is common. Indeed, among all investigated functions, quality was second
only to safety in terms of instantaneous reporting (safety events are
almost all reported completely instantaneously). Delayed reporting of
failed quality tests or inspections can rapidly increase the rework needed
to correct problems. Because of the performance impacts of increased
rework, daily reporting of quality information is critical.
Third, daily monitoring and analysis of craft labor productivity (i.e., field
work hours and installed work quantities) enables better predictability
of construction activities. This practice allows project teams to identify
and correct significant and/or repeatedly reported deviations from the
work plan. By enhancing cost and schedule performance, craft labor
monitoring increases profits and competitiveness. Having such fine-
grained productivity data also makes estimating and planning more
reliable, and improves pre-qualification processes.
9
Fourth, some industry organizations leverage updated status
information on individual projects to optimize capital portfolio resource
allocation. Through contractual clauses, they require subcontractors and
contractors to report project expenditures and procurement status on
a daily basis. This daily data supports decision-making on reallocating
excess contingency reserves. For instance, early and reliable forecasts
of a total installed cost below the baseline can help organizations decide
to start new projects that can achieve the expected rate of return on the
excess investment.
10
functions within the design/engineering process, e.g., engineering
productivity or status of the design/engineering deliverables. In reality,
because the risk and variability of control functions depends on the type
of project type, the business model, and the project participants, the
best time to use instantaneous controls varies. Thus, project designers,
contractors, owners, or service firms often require instant reporting of
different critical functions at distinct moments in the project delivery
process.
Culture
Organizational
Leadership
Behavior
Contracts
Work Planning
Project
Data Collection
Controls
Reporting
Information Integration
Advanced
Information Workflow Management
Technologies
Business Intelligence
11
These strategies and practices should be implemented sequentially,
since the right organizational behavior will support efficient project
controls functions that can be leveraged through advanced information
technologies. Folllowing are characterizations of maturity for each set of
strategies:
12
Project versus Organizational Support for Instantaneous Controls
In all but one of its case studies, RT 316 documented instances of
organizations comprehensively providing resources for instantaneous
project controls on multiple projects. However, the research team
also heard about standalone efforts to deliver expenditures, progress,
or productivity metrics/trends instantaneously. These project-based
efforts had benefits and constraints that differed from those of the
organization-enabled efforts studied. In terms of constraints, standalone
instantaneous controls efforts are often limited to projects with sufficient
time, cost, and team resources; or they are implemented on high-risk but
short endeavors, e.g., renovations or shutdowns. Also, more often than
not, the development and implementation efforts vanish at project’s end.
13
Barriers
The research team identified the main barriers that organizations must
address to migrate to instantaneous or prioritized project controls. Table 2
summarizes the main barriers as perceived by industry experts affiliated
with CII member companies. The top three barriers all relate to problems
with data integration and automated analytics prevail. This finding
is consistent with the case study analyses on instantaneous control
functions, which emphasize the importance of both seamless data-
sharing and the automation of data analysis processes for meaningful
information.
14
Benefits
RT 316 found that owner and contractor organizations must invest
significant resources to enable instantaneous project controls on multiple
projects. However, such organization-wide efforts are conservatively
estimated to pay for themselves in only a few years. The subject matter
expert surveys and case study evidence indicated that instantaneous
reporting often provides the following benefits: 1) timelier and better
informed decisions, with more time spent analyzing information than
collecting data; 2) improved cost/schedule performance; 3) project
risk mitigation; 4) more efficient capital portfolio management; and
5) competitive market advantage. The team found consistently better
cost and schedule performance on projects with mature information
integration and automated analytics than on other projects in the CII
BM&M database. (RT 316 used these two parameter as surrogates for
instantaneous project controls.) While these results were repeatedly
observed, they were not statistically significant.
15
4
Support Tools
17
Figure 4. IQ Tool Assessment of Data Collection Strategy
The IQ tool provides a numeric maturity score for each strategy, along
with a prioritized list of recommended actions to help users implement
the strategies implementation at higher performance levels. These
recommendations are specified either as actions to be taken immediately,
or as further actions for improvement. This prioritization follows the
maturity matrix sequence that progresses from organizational behavior
to advanced information technologies.
18
19
Figure 5. Output
Finally, the Workflow Implementation Process tool offers guidance
on the steps an organization should take to plan and implement the
strategies recommended in this research. (See Figure 6.)
20
5
Conclusions
21
Appendix
Summary of Case Studies
Median Industry
Case Organization Unit of Reporting Reporting
Sector Function(s)
No. Role Analysis Frequency Frequency to
Owner/Client
Reporting: Project Cost,
General Construction
1 Organization Procurement, and Change Daily Monthly
Construction Manager
Management
General Construction
23
Manufacturing
Planning Decisions
Engineering Software Reporting: Craft Labor
10 (i) Organization Daily Monthly
Design Provider Productivity
Engineering Software Reporting: Design Engineering
10 (ii) Organization Instantaneous Bi-weekly
Design Provider Progress
25
Research Team 316, Organizational Strategies
for Instantaneous Project Controls
Former members
Ahmad Aftab, Teck
Patrick Morton, Bentley
* Principal authors