Focused On Design Management

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Outline• Design Management Theory

• The Process of Feasibility and Engineering Design

•Responsibility for Design-Contractual and legal aspects

•Case Studies

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Time and Cost Over Runs

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No. Project

Original Contract Duration

(Cal. Day)

Revised Contract Duration

(Cal. Day)

Time Over-Run

(%)

Original Contract

Value (METB)

Revised Contract

value (METB)

Cost Over-Run (%)

55.42% 30.97%

1 Harar-Jijiga 1095 1952 78.26% 346.262 467.307 34.67%

2 Degehabur – Shekosh** 1095 1400 27.85% 281.562 281.561 0.00%

3 Shekosh – Kebridehar** 1095 1298 18.54% 291.163 291.163 0.00%

4 Kebridehar – Denen** 913 1826 100.00% 313.545 410.868 31.04%

5 Denen – Gode** 913 1826 100.00% 234.855 513.982 118.85%

6 Kebridehar – Shilabo 1096 1182 7.85% 530.999 536.318 1.00%16.38% -0.33%

7 Jijiga - Togochale 1095 1242 13.42% 353.226 365.17 3.38%

8 Ginir – Beredimtu (Cont-1) 1095 1305 19.18% 541.719 538.717 -0.55%

9 Beredimtu – Imi (Cont-2) 1095 1275 16.44% 497.108 494.106 -0.60%

10 Imi – Lab (Cont-3) 1095 1275 16.44% 571.034 548.814 -3.89%

11 Lab – Gode (Cont-4) 1095 1275 16.44% 570.615 570.615 0.00%53.65% 7.93%

12 Hida – Yalo** 912 1892 107.46% 118.844 118.844 0.00%

13 Semera – Didigsala 1066 1246 16.89% 329.338 394.137 19.68%

14 Didigsala – Yalo 730 1215 66.44% 132.496 132.496 0.00%

15 Irbeti – Afdera* 42 52 23.81% 727.913 815.445 12.03%41.82% 12.86%

** EOT is not officially granted to date. The table shows expected EOT on the projects.

* Contract Duration in Calendar Months

Average Over-Run (%)

Upgrading of Trunk Roads

Upgrading of Link Roads

Construction of Link Roads

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No. RegionTime Over-Run

(%)Cost Over-Run

(%)1 Central 15.30% 2.42%2 North 35.78% 19.79%3 South 23.72% 11.31%4 West 33.69% 28.36%5 East 41.82% 12.86%

30.06% 14.95%Average

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Description Unit 2003 EFY (Base year)

2004 EFY

2005 EFY

2006 EFY

2007 EFY

Projects completed within contract time+ 15 %

% 28 6 22 16 36

Projects completed within contract Budget+5 %

% 26 31 32 40 50

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Targets the Design Performance

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Customers' Needs and Expectations Current Performance

Stretched ObjectiveCriterion Measurement

Importance(H, L, M)

As-Is Process

TO BE Performanc

e

1. Project Design Sub Process

1 Quality

Incr. to the original works contract price –((% per project) H

18.05% or(40 mill) N/A

5%

Time extension to the original works contract (% per project) H

54.% or(580 days)

N/A 5%

Env., Socio-economic and Safety Considerations – Detailed and that satisfy customers demand (H, M, L)

M L M H

Project Design Duration - not longer than 365 days (100km) M 384 398 365

2 TimeTime taken to review design documents (working days/document) H ?? 17.0 6 - 13

3 Cost

Incr. in construction cost due to delay in design duration – Zero (%age incr. in construction cost /project OR ETB/Km/project)

M

1% OR 29,000

ETB/Km/project

N/A Zero

The Need for Design ManagementFailures during design have significantly

contributed to cost and time overruns,

Cost and time overruns can reduce significantly if the quality of design deliverables is enhanced,

Clients (ERA in particular) expecting better performance from both designers and contractors and their need to be certain of the final outcome of their projects

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The Need for Design Management…contClients have also sought greater control over

their projects and an increased involvement in decision-making,

Design is a complex process that continues to grow in complexity because of the dramatic increase in specialist knowledge. There are now many contributors to the design of a project from a wide variety of organizations

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Definition

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Design Management is best seen as an information processing system driven by innovative and/or creative solution to problems of the client organization.

Design Management…Cont.

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Two important aspects of Design Management:

The need to produce information that fully interconnects the inputs of all the contributors into one coherent and complete piece without ambiguity,

Ensuring that all contributors are working to a co-ordinated schedule to achieve a timing of the information flow that allows the development of the co-ordinated information.

Management and Organization in design and constructionSeparating responsibility for managing from

the responsibility for doing work is firmly entrenched in the management literature,

The management of industrial production processes, and can be traced back to Adam Smith and Charles Babbage, as shown by Hawk (1996).

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Management and Organization in design and constructionOrganisation:To organize something is to

arrange the elements into a co-ordinated whole. This shows that complex things can only be understood when orderly structure is imposed upon them. In other words, dealing with complex issues often requires the whole to be split into pieces,

Management:The definition of ‘manage’ is to conduct things and people in order to achieve some end. Management involves co-ordination, motivation, leadership and many aspects of getting things done through other people

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Management and Organization in design and construction Complexity: Common in construction

projects (Bennett 1992). Not due to technological complexity (mostly) but due to the following causes:

The need for different discipline to come together during design,

Specialization

Economic reasons to belong to different firms

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Differentiation

The simple idea is people working on a particular thing differed in a number of respects,

Fragmentation and specialization may refer to an increased division of labor within the construction industry

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Fragmentation and specialization

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Differentiation: is more than a mere division of labor the difference in attitude and behavior of the managers concerned:

orientation towards certain goals (e.g. economy is more important in cost control than it is in structural design, where safety and stability are more important);

time orientation (construction site planning is likely to have a shorter term than the development of a design brief).

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Lawrence and Lorsch:

people differ because of their own learnings and predilections,

The key thing is that these differences exist because they are needed,

They identified that greater levels of differentiation required greater levels of integration,

The amount of differentiation required is dependent on the complexity of the organization’s environment, so simply eliminating differentiation is of no help.

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Integration:Unifying the diverse contributions into a

cohesive team effort, Co-ordination is concerned with ensuring

that the output from each team member is directed towards the client’s objectives,

In order to achieve these, information must flow from one team member to another,

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Integration-Traditional/ Hierarchical and Team work

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Relative increase in the number of communication links for different Style of Organization

Number of People

Central Control Team Work

No. of Links

Increase (%)

No. of Links Increase (%)

2 1 1

3 2 100 3 200

4 3 50 6 100

5 4 33 10 66

6 5 25 15 50

7 6 20 21 40

8 7 17 28 33

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Techniques for co-ordinating work and achieving integration:

1. Standardize and control internal operations in order to facilitate interaction between inputs, outputs and boundary transactions:

ProceduresHierarchyPlanning

2. Reduce the amount of information required:Creation of self-contained unitsSlack resourcesEnvironmental control

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Techniques for co-ordinating work and achieving integration:

3.Increase the information processing characteristics of the firm :

Task autonomyInformation systemsLateral relations

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Management and Organization …Cont.

Contingency theories of organization show that the best way to organize a complex task is to ensure that the skill diversity (differentiation of technology) is appropriate to the complexity of the task, and then to match the level of integration and co-ordination (management functions) to the level of differentiation.

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Management and Organization…contThe task of the design manager is to make sure

that the organization of the design process is structured appropriately for the task at hand, and to ensure that there are sufficient integrative and coordinating mechanisms for the work to progress meaningfully,

The collaboration between individuals is part of the wider collaboration between firms in the construction sector. The construction industry is thus characterized as networks of transactions, a phenomenon that exacerbates discontinuities in the process, but an inevitable feature, given the nature of the tasks and the market. 25

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2. The process of Feasibility and Engineering DesignDesign Series ERA Designation

Stages:

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Terms of Reference(ToR)/ Statement of Requirement(SoR)

ToR SoROlder Version Requirements stated

vaguelyNo code of ethics No quality manuals Limited requirements

New Revised VersionStates clear

comprehensive requirements and process

Includes ERA Code of Professional Conduct and Ethics

Instructs to use latest ERA design manuals and quality manuals

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Feasibility and Preliminary Design

Feasibility Study and Preliminary Design

The client and the designers must agree on the complete scope of the work,

The process involves identifying the real problem as well as solving it,

Designers work in a complex and interactive way; this requires the additional focus of prioritization to the project delivery objectives

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Feasibility Study and Preliminary Design The design manager must achieve the

following during Feasibility Stage:

Allow designers time for reflection,

Establish a framework within which the tasks and objectives are kept in focus as the design moves through its stages of development, (How?)

Help the designer understand the full implications of a new definition of the design problem and the possible need to re-enter the design cycle,

Maintain Continuous liaison with the Client.

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The Four Part of the Design Process (From Hickling)

The Choice The Product

Interpretation What is the Shape of the Problem

A definition of the problem

Generation What are the alternative solutions

A range of alternative solutions

Comparison What Makes them Different

A set of comparison and preferences

Choice Where do we go from here

A decision regarding policy and action

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…Cont’dthe proposition that design is a linear

sequence can be questioned,

the designer thinks freely across and around the boundaries of a problem,

a complex cyclic model is more realistic and

representative of the process

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Components of Phase I DesignRoute Selection Feasibility

Study of Maps, Aerial Photography and Literature

Proposed Corridors

Site Visit and Survey

Towns Passed Through by Project Road

Orographic and Morphological Characteristics

Socio-Environmental Impact of the Project on the Area

Recommendation

Consultation Process

Traffic Data and Analysis

Highway Engineering

Economic Data

Economic Evaluation 34

Base Case (do minimum Case)

Do Somethingshall be used as the

basis for evaluation

Not the ‘do noting’ criteria

and the “do minimum” shall only be the work necessary to keep the road open

project case represents one or perhaps two or more feasible solutions to solving the problem or issue at hand

of the most important features of effective project analysis

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Criteria for AcceptanceThe expected present value of the project's

net benefits must not be negative; and

The expected present value of the project's net benefits must be higher than or equal to the expected net present value of mutually exclusive project alternatives,

The project must pass stringent environmental screening criteria

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Value ManagementValue management is a strategy of examining

every aspect of the whole project to ensure that all of the expectations can be delivered in the most economical way,

A problem with traditional briefing documents is that few contain any judgment as to the relative priorities in the requirements

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Value Hierarch/Tree

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Life time cost

Decision Matrix/ Multi criteria

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Detailed Engineering Design

The engineering design process deals with the creation of the production information necessary for site operations

Design Management must obviously make sure that all the information transfers occur at the right time, which can only be achieved if the required knowledge and its availability has been organized and contracted

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Design Standards ReportTopographic Survey Report

Identification of national grid points and benchmarks

Purpose of topographic survey – what the data is to be used for, e.g. for detailed design of road or structures, for hydraulic modelling of watercourses, for ROW and land acquisition (recording property boundaries and physical assets), etc

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Based on the findings of the Feasibility Study

Geometric Standards and Design Speeds (carriageway width)

Road safety features

Design criteria and standards for pavements

Detail DesignMaterials and Site Investigation ReportEngineering Design Report Environmental Impact Assessment ReportHydrology ReportStructural ReportLand Acquisition Report

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Engineering Drawings and Detail drawings

In UK the Practice is for the Engineer a lot of Design Information (1 drawing 9 m2, contractor 1 drawing 17m2)

US and other European Practice-follow standardized approach (Contractor 4x as many drawings)

Costly practice,Gives way to mistake Originality/ innovativeness

of the design

Standard designNot appropriate for detail

designingRequires competent

contractor to make use of the design

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Topographic SurveyingPrevious Practices Present-day Practices

Route Selection using desk study and field reconnaissance survey

Feasibility Study use route selection data, plus partial topographic survey

Detail design uses full topographic survey

Route Selection using maps, aerial photographs and satellite imagery

Feasibility Study use route selection data, plus full topographic survey

Detail Engineering Design use Feasibility Study data, plus Supplementary survey where required

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Concept of OptimizationMinimizes cost and time overrun during

construction.

Adds value to the detail design

Optimize the initial design to reduce volumes of earthworks and rock excavation, improve drainage design, improve road safety design, and minimize land acquisition, without compromising the quality of the road services.

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Planning, Monitoring and ControllingNetwork Analysis

Bar Chart

Information required schedule

Information transfer schedule

Iterative process and partial completion not indicated,

Simple, link, interconnectivity not addressed,

Suited for construction phase,

ADePT-Activity as well as information interdependency

7-30 loops, 350-400 design tasks, 2400 information dependencies

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3. Stages, Roles and Responsibilities

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Stages, Roles and ResponsibilitiesChange in responsibility with each phase-

additional burden on management

Ensure that designers, in attempting to limit design liability, do not confuse their co-ordination and management responsibility with liability for the content of their design and so limit their co-operation

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4.Design LiabilityThere are two types of liability:

professional liability, imposing an obligation on a consultant to act with ‘skill and care’,and;

absolute liability, requiring ‘fitness for purpose’. This may be attached to an agreement to provide a finished building

PI policies50

(1) Whoever hires out his work shall undertake to carry it out in the best interest of his client, conscientiously and in conformity with the practice and rules of his profession,

 (2) He shall not be liable to his client, unless he

commits an error, having regard to the rules of his profession,

(3) The error may consist in an omission or an act detrimental to his the client

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ERA Code of Professional Conduct and Ethics ERA seeks to ensure that all professional firms

and individuals, who provide services and works on its behalf, abide by a Code of Professional Conduct and Ethics that supports the aim of providing a high quality, safe and efficient road network in the interest of the public.

Consists of Five set of rules: (1)Responsibility to Public, Society and Profession, (2)Responsibility to Client/Employer, (3) Responsibility for Environment, (4) Responsibility to Professionals, (5) Adherence and Disclosure

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5. Case Studies: Variation Order during Management

VO No.Short Description of Variation Orders

IssuedDate of Issue of Variation

Order

1 Widening of Urban Section 22/Dec/08

2 Provision of Walkways in Urban Sections 4/Feb/09

3Change of wearing course from DBST to AC

17/Aug/09

4 provision of Additional Slab Culverts 30/Jan/10

5 Design Modification of Assasa Town 27/Apr/10

6Construction of safe structures in flood prone areas of Kubsa and Assasa Town

5/Oct/10

7 Removing and Relaying of existing pipes 28/Nov/10

8 provision of vehicular access 7/Feb/11

9Change of SST to AC at towns for parking lanes

6th May 2011

Could have been

done at one times

4. Project D Increase in quantity of AC surfacing by about 42.47%

Improper computation of AC quantity

5. Project E Land slide problem

Inappropriate route selection Inadequate sub-surface

investigation

Missing of Geotechnical Investigation

Lack of

integration

ConclusionClient demands improvement in Quality of Design

Enhanced Design can be achieved by applying the principles of design management,

Design management, can be considered as a framework for managing interconnectivity, quality and timely delivery of design information,

Liability is being enforced through code of conducts and design accountability.

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Thank You!

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