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Newsletter – September 2010
Project News


Austrian Railways (ÖBB) OEBB

Even infrastructure companies must work regularly on improving their structures. The demands made by the state, as owners, and as customers, do not differ greatly from those made by the shareholders and customers of large companies in the private sector. These are:

  • excellent quality (for ÖBB this would be nationwide availability of assets, reliability, standards in passenger and freight transportation, etc.)
  • modern and efficient structures (in terms of personnel, costs, etc.)
  • capability (as regards new requirements, competition, etc.)

To meet these requirements, ÖBB for some time has been experiencing a program of restructuring measures involving the entire company.



The ASSET SERVICES Division

The "ASSET SERVICES“ Division (AS for short) has been created as part of the merger of two ÖBB businesses (ÖBB-Infrastruktur Bau AG and ÖBB-Infrastruktur Betrieb AG) to form ÖBB-Infrastruktur AG.

Under the leadership of Dr. Rudolf Schilder, Michael Wiehart and Alfred Holcik, the general contractor assumes responsibility for all railway infrastructure maintenance measures such as inspection, servicing, corrections, and short-notice maintenance. In addition, AS operates as a service provider for scheduled maintenance and replacement actions in the core service areas of track system, control and safety equipment, and electrical engineering.

It is an extremely complex and extensive division that has been successfully reorganized, structured, and launched in a very short period of time.

Organizational Development at AS

Taking division management as the starting point, all activities were scheduled, controlled and monitored so as to be able to implement changes of this magnitude within a short space of time, and without any major interfacing issues or effecting operations. Here are a few of the core issues of organizational development:

  • the status analysis of old structures (from both an organizational and personnel viewpoint);
  • identification of improvement potential and synergies;
  • consolidation and phase-out of redundancies when merging multiple organizational units;
  • optimization of processes and improvement of efficiency (includes simplification/improvement of existing structures as well as the reorganization and setting up of efficient structures);
  • personnel development (identification of skills and core tasks, training and advancement, etc.);
  • blanket roll-out of the organizational model into the new line organization (with restructuring, Action Learning, etc.).

To kick-start these comprehensive assignments, "management logic" is used at AS – a proven tool in the development, control and monitoring of activities. Here the term management logic is synonymous with meetings (platforms) that represent the framework for the different tasks and subjects.

Within clearly defined time periods, and in a specified sequence, all activities necessary to realize the division's strategy, and therefore to achieve the associated objectives, are developed, introduced, managed and monitored in the individual platforms.

The project feasibility of larger, strategically important actions is checked by the area development team headed by Franz Lehr and, with board level agreement, monitored by program management.

This is a broad range of tasks that is difficult to implement without the support of suitable tools for planning, control, monitoring, communication, and coordination.

In the web-based project management platform ProjectNetWorld®, a tool has been used that has proven itself in the past for a whole range of diverse requirements (for construction projects, change management projects, IT projects and other project types).

Major requirements of the management logic of the newly created division can now be represented and implemented with the base technology of ProjectNetWorld®:

  • scheduling, control and monitoring of all activities necessary as part of organization development;
  • representation and handling of all organizational projects (such as development of a site model, optimization of order cycle times, development of the process landscape, development of training models including across-the-board training, development and introduction of program management, etc.);
  • representation and handling of IT projects in conjunction with organizational development (such as the merging of IT systems, new IT developments, etc.);
  • introduction of a central reporting system for all organizational projects (at project and portfolio level) and monitoring of the largest/more strategically important building projects as part of the railway infrastructure maintenance measures.

Some of the reasons why AS decided to choose ProjectNetWorld® as a central working environment:

  • powerful tools for the scheduling, control and monitoring of projects as well as comprehensive communication and cooperation tools;
  • the perfect environment for the introduction and exchange of management logic;
  • instant overview of all projects and activities;
  • central reporting system for the project portfolio, the projects and the orders;
  • secure linking in of all employees based at different locations and companies;
  • rapid deployment without cost-intensive adaptations and additional investment in hardware and software;
  • high reliability standards and guaranteed availability;
  • little training required;
  • quality and response times from the ProjectNetWorld® support team.

Franz Lehr (Head of area development team) on the deployment of ProjectNetWorld®:
It is our task to develop efficient and powerful structures, to uncover synergy potential and to leverage it in the best possible way. However, this only works when all employees are pursuing this goal and are adequately informed. ProjectNetWorld® represents, and has represented in the past, a perfect working environment for us. It provides a common view, supports communication and greatly simplifies project transaction.


Commentary

Dr. Rainer Stempkowski

10 FACTORS FOR SUCCESS with ACTIVE PROJECT MANAGEMENT Using
ASSET SERVICES as an Example

Project management is a tool with which projects can be handled efficiently and with foresightedness, enabling both projects and the company as a whole to be better managed. It combines strategic planning with operative implementation and provides suitable tools for this. It is usually an ongoing development process until a comprehensive system is implemented within a company. Using factors for success, the article highlights why the application of project management is viable and how it works in practice.

Cost Certainty
Two of the overriding goals of project management are keeping within the budget specified, and ongoing commercial optimization in the scheduling and realization phases, with the goal of attaining an optimal balance between high quality and low costs. For this, various tools for cost planning and monitoring are available in professional project management that must be specified differently depending on objective, environment, and complexity.

But it is not just project costs that must be met and monitored - individuals must also be conscious of their own costs, and these must be monitored continually to secure company success. Key prerequisites here are clear-cut cost structures and internal cost transparency. Meaningful principles for submission of proposals, such as approaches and key parameters, are required for this. In specialist companies in particular, such as ASSET SERVICES at ÖBB-Infrastruktur AG, there is sufficient experience for the formation of such key parameters and identification and assessment of influencing factors in regard to discrepancies, meaning that with structured cost management, both own costs and order costs can be planned and monitored better. A key objective of project management development in the area of cost management is attaining cost stability through better calculation and work preparation, and through early identification of service and cost fluctuations and actively dealing with them.

Schedule Management
Besides costs and quality/performance, schedules represent the third important cornerstone of every project and are best defined by the awarding authority as concrete project goals. Delays not only impact the project itself, but they also have a direct effect on internal resource planning. Schedule delays result in bottlenecks that are far too often compensated by poor quality.

Proactive schedule planning and monitoring that enables steps to be taken with early warning systems is an indispensable tool from the viewpoint of an overall project, and also from the viewpoint of corporate planning, such as in project management (including resource planning). Active management of schedules is the responsibility of contractors. ASSET SERVICES has developed its schedule management to such an extent that, with its resource optimization, detailed knowledge of processes and optimization potential, it can use mechanisms for influencing periods of service. In addition to the mere deployment of a schedule planning and monitoring tool, the idea of project management is extended further towards the support of the awarding authority as a professional partner with innovative ideas, such as for project structuring, the definition of phases, and detailed specification of the construction sequence.

Risk Optimization
Every project has its risks. Most people do not experience risk until after the event when only costly and time-intensive responses are possible, or even when the project is jeopardized. Actively dealing with risks not only provides a defense/reduction with holistic risk management strategies, it also identifies opportunities to heighten the success of the project. For awarding authorities, risk management is an indispensable tool in the definition and development of projects. For acting companies, this potential should be analyzed as early as the submission stage and, where applicable, a relevant model should be defined in consultation with the awarding authority. To avert projects that could represent a threat to the company, preventative risk management enables correct decisions to be made in full awareness of the opportunities and risks.

Communication and Information
Clear-cut and continuous communication and information flow is also key. The tide of information flooding into our day-to-day business via email alone is making the systematic handling of information paramount. The mere fact that less time is squandered on researching some documents or other gives rise to the "quick win". The "newly won" time can be used to select relevant information that should really be channeled into the structured communication flow. True to the motto "less is more", the sending of important data to the right recipients is the goal we should be striving for. ASSET SERVICES is structuring its information flows and simplifying data exchange via a communication and information system — ProjectNetWorld. ASSET SERVICES is one example of a company with an above-average level of maturity in this sector.

Standardization
Every employee usually sets up his/her own rules, develops templates, ponders over structures, etc.. These kinds of "ancillary" services can no longer be included in prices oriented towards market pricing. A company must make it their aim to support its employees as diversely as possible in order to steer work efficiency towards project management and strategic alignment. At ÖBB, ASSET SERVICES provides its employees with guidelines, clear-cut procedures, guides on selected topics and central services as support.
Standardization at any price, however, must be dismissed in this context. There can be no doubt that standards that bring about simplification of work for all those involved on the basis of commonality (such as processes, joint organizational structures or guidelines) are sensible. These kinds of principles must fit in with the corporate culture, meaning it is less sensible to copy entire systems from other companies. An own individual style must be reflected, so that acceptance with employees, and outward authenticity are preserved.

Organization
Projects in set teams run far better than when those involved are constantly changed. The "chemistry" can be blamed here. In reality, there is another factor — in good teams, everybody knows what to do. There do not need to be any written rules — they have evolved with experience. In teams that change continually, these rules must be clearly defined so as to prevent interfacing issues, overlap and gaps between skill sets. Precise function descriptions, including tasks, responsibility, authority and interfaces, must be defined within the context with those involved. The "chemistry" must then be worked on.

For example, ASSET SERVICES has placed particular focus on task descriptions, in the service management process in particular (which also defines job profiles). This assists the personnel department in correctly positioning employees in line with personal potential and in determining personnel development requirement.

Contract Analysis — Definition of Scope of Services
All too often, the lack of contractual definitions is interpreted differently according to the viewpoints of contractual partners, leading to claims that can end up in court. Besides contract clauses, a clearly defined scope of services discussed between the two sides can eliminate the potential for disagreement. The agreement of standard scopes of services, adapted to the project, addresses the self-conception of the services actually rendered with a definition. And the service becomes calculable.

Decisiveness
Decisions must be prepared, preferably in consideration of the prerequisites — effects on cost, schedules and quality, target deadlines for the decision itself, and a recommendation. This well-founded principle allows decision processes to be accelerated and completed on schedule. Most notably, this also allows every decision to be documented in a consistent manner.

Customer Orientation
Customers are king — they know it and take advantage of it. The market continues to orientate itself heavily towards pricing. but quality awareness is surpassing price more and more often. Suppliers are trying to master the balancing act between the two, the result being that neither one nor the other is pronounced and the company does not position itself in either way. Access to the customer must be more intensive and be with a clear alignment that is synonymous with the company. The uniqueness of the service package is just as relevant here as the associated customer requirement. Often the customer desire for this specific extra must be awakened first. Then the company is the only possible alternative for satisfying these wishes.

Customer orientation has also been pivotal for the ASSET SERVICES division in positioning. Customer surveys of different issues have provided new starting points for improvement in different areas, the majority of which are in project management (such as in areas of cost stability, etc.). Derived from these are requirements that come from advancements and improvements that ASSET SERVICES pursue and implement in area development in a structured manner.

Responsibility
Cooperate responsibility is about more than just survival. In a responsible company it is about safeguarding jobs, making the workplace attractive so as to retain staff, conscientious use of resources, being environmentally friendly, etc.. The motto "Corporate Social Responsibility" covers the voluntary ecological, economical and social responsibility of a company. The implementation of this guideline sustainably improves company business levels. Just by using simple measures that can be integrated into the processes enables the philosophy to be applied.

ABOUT THE PERSON
Dr. Rainer Stempkowski is Professor of Construction Design and Economics at the University of Applied Sciences in Graz, Head of several research and development projects, author of several books and specialist articles, publisher of the Netzwerk Bau trade journal and Managing Director of Stempkowski Baumanagement & Bauwirtschaft Consulting GmbH.

ABOUT THE COMPANY
Primary activities of Stempkowski Baumanagement & Bauwirtschaft Consulting GmbH::

  • Project Management Consulting
  • Accompanying Monitoring
  • Environment Management
  • Risk Management
  • Cost Management
  • Constructional Consultancy
  • Tendering, Building Contracts and Procurement
  • Claim Management
  • Training

Perchtoldsdorf Office
Vesperkreuzstraße 15-17
A-2380 Perchtoldsdorf

Graz Office
Andreas Hofer Platz 5/3
A-8010 Graz

Vienna Office
Wiedner Hauptstraße 39/1/7
A-1040 Vienna

Mail: office@stempkowski.at
Homepage: www.stempkowski.at



Tool Tip


Good reports make a considerable contribution towards the understanding of the course of a project, enable statuses to be determined regularly, and represent a valuable foundation for decision-making on the basis of bundled information. Reports also serve to document the project and are an important tool for project control and management.

However, the information contained within reports is only as good as the content and layout. The more accurate the requirements of the recipients are defined, and the clearer the structure, the greater the value. Some requirements need clarifying when creating reports:

  • Definition of the objective: Is the report used solely for stocktaking, as the basis for analyses, as a basis for decision-making, or for an appraisal?
  • Definition of the target group: Who is the report is aimed at (Awarding Authority, Management, Project Control, Project Leader, Project Controlling, the customer, authorities and institutions, or other stakeholders)?)
  • Definition of the content: Which information is required and in which scope?
  • Definition of the format: What layout and structure is used for formatting/to show the information (as tables, graphics, text, etc.)?
  • Definition of the report interval: At which time intervals/for which occasions are the reports created?
  • Definition of the information suppliers: Who is responsible for creating the report/who needs to supply which information at what time?

Today, text, calculation and presentation applications are commonly used to generate reports. The embedding of text modules and tables into presentations, and the copying of tables and graphics into text programs, are not uncommon.

This module-like report compilation requires a lot of time that extends beyond just creating report content. This compilation also enables considerable freedom in layout and formatting, making it difficult to make comparisons between other projects in the portfolio and previous versions of the report.

Improvement potential here enables reports to be put together by defining a standardized format with a standard structure, and display format of content for all reports. This applies to the arrangement of information as well as to the selection of graphics (format) and key parameters.

This formalization is supported through the use of appropriate systems that address the various requirements of reporting and enables central and managed access to reports.

There are many benefits of formalized reporting in conjunction with a suitable system:

  • Information is imported/merged centrally and does not need to be compiled from different applications;
  • Structures occur again and again, and entry masks reduce the likelihood of making mistakes, and save time;
  • Structures occur again and again, and entry masks reduce the likelihood of making mistakes, and save time;
  • Current versions of reports are made available centrally; There are no different versions in circulation with varying degrees of completion;
  • Recurring content and structures simplify reading and offer less freedom for ambiguity;
  • Formalized reports also enable projects to be compared and the simple merging of information into portfolio reports;
  • Central access when generating reports enables simultaneous entry of report information by more than one person; New information is instantly available to the recipient.

Another key point relates to the scope of reports. In order to be as clear and concise as possible, a report should comprise of one page (maximum two) and summarize the most important points. If detailed information is required, this should be easily accessible by the recipient.

Systems enabling central management of all project data play a key role here. All information is available centrally — from the overview of a report to the detailed information, via a central access mechanism — without additional distribution of information via email.

Reporting Structure with ProjectNetWorld®

Mit ProjectNetWorld® can be used to create a complete report that is tailor-made to the specific requirements of projects and portfolios. This way every target group (Awarding Authority, Management, Project Management, Project Controller, Project Team and other stakeholders) receives a precise summary of the information required to complete their task.

Existing reports can be used and new ones can be defined and created. There are no limits to the scope of the reporting structure. All requirements made of project master data and current data can be implemented — from a single report to full reporting, from portfolio reports through to program and project reports to detailed reports, such as:

  • Portfolio reports
  • Project assignment
  • Project status reports
  • Cost reports
  • Resource reports
  • Key parameter reports
  • Quality reports
  • Assignment reports
  • Project logs
  • Risk reports
  • Project completion reports

We Create Tailor-made Reports for You To be able to satisfy the requirements of different target groups as accurately as possible, reports are adapted individually to the needs of every customer.

We will design reports for you in the required format and structure. We will create the entry mask and implement tables, formulae for calculating key parameters, as well as graphical and other design elements for you.

Structure and Content Various design elements are available to be able to display the content of reports as clearly as possible, such as:

  • Text boxes for continuous text and descriptions, etc.;
  • Tables and calculation fields for the display and analysis of figures and key parameters;
  • Graphical elements for analyses, comparisons and schedule information.


Editing Reports Using ProjectNetWorld® considerable benefits for report creators in particular.

The structures are specified and up-to-date information is entered via entry masks. Graphics are generated automatically, key parameters for projects and portfolios are calculated automatically and text is formatted. The contents have a precise definition — there are clear-cut structures and standard processes.

Central Access All ProjectNetWorld® reports are made available centrally. Access permissions for the different reports are configured on the basis of the target groups defined.

The benefit here is that the report is not distributed via email and hence a higher level of data protection is guaranteed. In addition, every recipient has location and time-independent access to the information.

Benefits
  • Precisely tailored reports
  • Standardized structures
  • Central creation and processing
  • Central version storing and archiving
  • Information is available at any time
  • Managed access to reports


The pricing for implementation of a report is dependent on the size and any special requirements. For a non-binding quotation, please contact heimo.huettenegger@projectnetworld.com.

 

 

 

 

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