Using the Spi Index to Measure Plan Volatility


- Control the mobilization of human resources and equipment.

- Control the preparation of materials: Review contracts, orders of contractors, the status of material gathering at the construction site warehouse compared to the requirements of the work.

3.2.2.2 Using the SPI index to measure plan volatility

The status of the schedule is often elusive because it is difficult to tell whether a certain part of a task or project has actually been completed. Many projects fall into the trap of subjective assessment of progress. Subjective assessment - derived from the feelings of the project manager or project team members - tends to be overly optimistic in the early stages of the project. Even when the project has gone halfway according to the plan, if we only rely on intuition or feelings to assess the project, the connection between that assessment and reality will become too vague. The most effective solution to control progress is to use the Schedule Performance Index (SPI) to measure the variation of the plan.

Table 3.4 Data table measuring the plan's fluctuations from 2008 to 2010

(Information compiled from data collected in Appendices 4 to 9)


Value obtained

Year 2008

Year 2009

First 6 months of 2010

(BCWS) Realized Value

as planned (million dong)

131,200

370,500

247,100

(BCWP) Income Value

Actual (million VND)

90,500

249,200

111,800

SPI=BCWP/BCWS

0.69

0.67

0.45

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Using the Spi Index to Measure Plan Volatility

The SPI is the ratio of Actual Earnings to Planned Earnings. SPI is a value that indicates whether the project is on schedule or not. This is a question that all project participants want to have answered regularly. The question becomes even more difficult to answer in the case of large projects with many tasks being performed simultaneously. If one item is ahead of schedule while others are behind schedule, then what is the reality of the schedule plan? The SPI value indicates how the project progress is following the plan. If a project has a value of SPI (2008) = 0.69; SPI (2009) = 0.67 and SPI (6 months


early 2010) = 0.45 means that the project progress is behind schedule.


By determining the progress of tasks, we can confidently report all the entire progress accurately and objectively.

3.2.3.3 Use fishbone diagram to identify the causes of project delays

The Ishikawa method, or Ishikawa diagram, fishbone diagram, cause-and-effect diagram, is a method often used in businesses to identify problems and provide solutions in management and leadership. This method was proposed by a Japanese man, Mr. Kaoru Ishikawa, in the 1960s. He was a pioneer in quality management processes at the Kawasaki shipyard and is considered one of the contributors to modern management.

For progress management, analyzing the causes of slow progress in order to propose solutions to improve and plans to implement those solutions is a very necessary task. "Construction of the management and operation building of the Song Bung 4 hydropower plant" is one of the work items of the Song Bung 4 hydropower project that is behind schedule. The project manager needs to use the Ishikawa method to (i) Understand the current process; (ii) Identify the problem, its causes and consequences through previous surveys and investigations of employees of related departments; (iii) Propose solutions to improve and plans to implement those solutions.

The following diagram illustrates the analysis steps of the Ishikawa method:

a. Build an Ishikawa diagram with a clearly defined consequence: "Slow progress in construction of the operation management building". Identify the areas where the causes can be found (prioritizing the 5M areas that the method recommends: Matter - Man - Material - Machine - Method), in which Matter is the closest cause of the consequence.

Figure 3.4a Fishbone diagram to identify causes of delays


Management and operations area

Human

Method

Problem

Machines

Raw materials

Slow progress in construction of the management and operations building

b. Identify all causes and classify them using the 5M method.

Figure 3.4b Fishbone diagram to identify causes of delays

Management and operations area

Human


- The construction site management team is not present at the construction site regularly.

- Workers do not proactively prepare machinery and materials before construction within the required time

Problem

Poor preparation before construction

Method

- The construction site management team does not manage progress well.

- Detailed construction measures have not been developed yet.

- Construction plans are often changed

- Information between construction teams is not transferred.


Slow progress in construction of the management and operations building

- Machinery and equipment not

Always ready for construction


- Raw materials are not supplied on time.


between the elements

Determine the abutment

c.Machinesi correlation gRaw materials n people (e.g. no construction measures)

detailed construction method => information between construction teams is not transferred

=> Workers do not proactively prepare machinery and materials before construction within the necessary time)

Figure 3.4c Fishbone diagram to identify causes of delays

Management and operations area

Human


- The construction site management team is not present at the construction site regularly.

- Workers do not proactively prepare machinery and materials before construction within the required time

Problem

Poor preparation before construction

Method


- The construction site management team does not manage progress well.

- Detailed construction measures have not been developed yet.

- Construction plans are often changed

- Information between construction teams is not transferred.


Slow progress in construction of the management and operations building


d. Identify secondary causes (causes that are derived from a previous cause) (for example, construction methods have not been developed => machinery and equipment are not ready within the required time) and only keep the primary cause (For example: The construction site management team did not manage the progress well)

e. Check all the main causes

f. Find solutions to overcome those main causes.


Figure 3.4d - Fishbone diagram to identify causes of delays

Management and operations area


Human


* The construction site management team is not always present at the construction site.

* Workers do not proactively prepare machinery and materials before construction within the required time

* Construction site management is not good at progress management.

Method

*Detailed construction methods have not been developed yet.

*Construction plans are subject to change

* Information between construction teams is not transferred.


Problem

Slow progress in construction of the management and operations building

Poor preparation before construction


* Machinery and equipment not included

always available

ready for construction


Machines

* Raw materials are not supplied on time.


Note:

Raw materials

: main cause, need to find solution.

* : secondary cause

: (dashed arrow) chain of consequences stemming from the primary cause.


3.2.2.4 Solutions to handle slow progress from SPI index analysis results

- At any time the supervisor finds that the progress has been delayed (behind the plan), he/she shall immediately notify the Contractor in a meeting or in writing, requesting the Contractor to re-establish a detailed plan or schedule. In this detailed plan/schedule, the Contractor must show the increase in working time (overtime for example), human resources, the number of construction machinery and equipment as well as an additional construction measure (remedy) that meets the progress requirements to ensure completion time according to the contract or the investor's requirements.

- In case of delay due to force majeure or design changes or temporary suspension request from the Investor, if there is no re-agreement on the completion date between the two parties, the completion date will be moved back a period of time equal to the time of occurrence and handling of these events.

- In case the construction progress is seriously delayed (cannot be completed)


(the completion of the project, project item, package on the Completion date) The Supervisor shall immediately report to the Board Leader for handling according to the provisions of the Contract. At the same time, request the Contractor to re-establish the detailed progress with the solution to overcome the problem, review the report and the Board Leader shall consider and direct the implementation.

- Handling of serious delays:

+ The supervisor collects evidence of delays (documents on design changes, construction suspension, force majeure, etc.) and calculates the number of days of delay due to the Contractor's fault.

+ The supervisor drafts an official dispatch to the Contractor regarding the serious delay in the progress of the item/package. The content of the dispatch clearly states: the level of delay, the impact of the delay on the entire project, the cause of the delay under the Contractor's responsibility, the total number of days of delay, the total amount of penalty according to the Contract and (if necessary) invites the Contractor's director to a meeting to agree on a penalty plan.

+ Prepare meeting content and minutes with participants including Supervision Consultant and Contractor.

3.2.3 Strengthening the linkage between project participants

In the process of managing project progress, the Project Management Board must harmoniously resolve relationships with relevant parties: investors (EVN), sponsors, design consultants, supervision consultants, construction contractors, local authorities, etc. The above relationships interact and "collide" with each other. The above relationships can only be harmoniously resolved if the project management work of the Board is raised to the level of "art". Project managers must be good at professional expertise, proactive and creative in handling situations, and flexible in dealing with partners.

3.2.3.1 Building a responsibility matrix

The responsibility matrix details the responsibilities of each team involved in the project. The importance of this document increases when an organization is undergoing a restructuring process that creates collaborative relationships among employees within the organization. In such environments, many teams may


have nothing to do with other groups that will collaborate to complete the project tasks. The responsibility matrix is ​​ideal for showing the interplay within the organization. For large projects with many stakeholders, a stakeholder matrix should be developed to help PMs keep track of these stakeholders. A stakeholder matrix includes a list of stakeholder groups with the following information:

- Role for the project

- Demand for the project

- Project participation

- Level of impact on the project

This matrix is ​​a useful tool to evaluate during the project implementation phase when conflicts arise.

The responsibility diagram is created from the matrix model and is sometimes called a responsibility matrix or responsibility contract.

Purpose

Macro-level responsibility maps (project responsibility maps and principle responsibility maps) are constructed in the same way as micro-level responsibility maps (operational responsibility maps). However, the issues that they address are different. Project responsibility maps and principle responsibility maps explain and describe the roles of different parties on important project issues. Operational responsibility maps explain and describe the roles of specific people in specific project activities. Figure 3.7 illustrates the responsibility map.

Figure 3.5 Responsibility diagram

Principle responsibility diagram and project responsibility diagram :

Departments, management functions, source types, groups

Job Responsibility Chart : Individuals



Role

Principle Responsibility DiagramProject organization and management issues, technical issues Project responsibility chart

Milestones


Operational Responsibility Diagram

Activities

Principle Responsibility Diagram

Clarify the roles of different parties

Project Responsibility Chart

Clarify the roles of different parties in achieving milestonesOperational Responsibility Diagram

Clarify the roles of different individuals in performing the activity

Responsibility charts will also be used to clarify roles at both the macro and micro levels. The roles are the same at both levels. Figure 3.5 shows the different roles and abbreviations used on the responsibility chart.

Responsibility charts allow you to mark who will “do what,” meaning who will be responsible for performing which specific tasks.

We can also specify who will make a decision on a particular issue. We have two different decision symbols. We distinguish between major decision making and minor decision making. An issue can often be divided into sub-issues and the decision-making authority is divided accordingly. One person will make the overall decision (or “have the last word”). The decision-making authority for different sub-issues and the responsibility for those decisions will be held by different people or parties. The division into major and minor decisions can enable higher-level management to delegate minor decisions to other parties.

Table 3.5 Identifying project roles on the responsibility chart using abbreviations

XD

d PTCIA

Do the job

Make decisions individually or in the end Make joint or partial decisions Manage work and control progress On-the-job training

Must be consulted Must be informed

Ready to give advice

Table 3.8 further illustrates the use and interpretation of the decision symbols.

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