Is it expensive to build and run a green factory? I had been wondering this before meeting Chuang Tzu-Sou, director of the new fab planning and engineering division of the Taiwan Semiconductor Manufacturing Company. His opinion: "Not at all!"
The construction cost of TSMC's 14th semi-conductor manufacturing plant, compared to older facilities, only increased by 1 percent. And while the budget for "Fab 14" ("fab" is short for fabricating of semiconductor chips) was US$50 million, it is expected to easily recover this cost in electricity savings within the next five years.
One of the major cost savings resulted from rethinking the industrial boiler. A major part of Fab 14 would be a boiler facility costing almost US$2 million -- industrial boilers are an integral part of the semiconductor manufacturing process, but they emit a vast amount of wastewater and carbon. Yet after researching alternate production methods and taking a close look at available technologies, they managed to do away with the boiler facility. That resulted in cuts in both Fab 14's building costs and carbon emissions once operational.
Mr. Chuang, the program manager, thinks this cost-saving measure was possible only through a manager's ability to understand and motivate workers. He felt his technicians were individuals who tended to be most capable of solving problems on their own. However, being scientifically trained and aware of business constraints, they would go with what they knew would solve a problem. They are pragmatists who evolve their knowledge slowly and are not prone to experiment with new solutions. So Mr. Chuang realized he would need to inspire them, remind them of the bigger picture, encourage them to keep an open mind and give them sufficient time to search for new solutions.
These cost-savings affected just one building of a facility that's part of a bigger factory complex. So how did Mr. Chuang and his technicians expand savings across all Fab 14 buildings and activities? He again encouraged his team to think outside the box. His technicians devised a way for the hot air generated from semiconductor production to be circulated to other buildings and work areas for their own use, such as for air conditioning. This created an additional US$230,000 in electricity savings.
The technicians also developed a way to purify large amounts of wastewater, enough to supply half a million people with clean water for daily use. Apart from improving the efficiency of Fab 14's construction by recycling 90 percent of the wastewater (one of the highest rates in the world), this also cut supply and recycling fees. This meant a combined savings of up to US$88 million annually.
Based on this experience, Mr. Chuang and his team realized that improvements in individual areas didn't amount to huge savings. Instead, it was making sure improvements were sought across the whole factory complex and at all stages of production. It was the creation of a green supply chain that made a change toward sustainability both possible and profitable, and TSMC is now trying to put that change into place for all its Fabs. The ultimate plan is that this will help stimulate other industries to do likewise and cause improvements for generations to come.
While the vision for this program came from Morris Chang, the chairman of TSMC, it was realized by Mr. Chuang. Mr. Chuang succeeded by focusing on the bigger picture offered by the whole program, instead of getting mired in the problems of individual projects' technical difficulties or budget overruns. By relating Mr. Chang's vision to an organizational mission, Mr. Chuang ensured short-term problems and opportunities were dealt with in a way that fed strategic long-term goals.
Learn more about Fab 14 in this video, and about Roger Chou, PgMP, on his Facebook page. How have you made green projects profitable?
Read how a fellow project practitioner is making the most of advancements in sustainability in "Biofuel From Seed to Factory," in March's PM Network.
At the end of this month, Cloud Gate, a Taiwanese dance company, will celebrate its 40th anniversary with the performance of a new routine, "Rice." Its founder, Lin Hwai-Min, has received international recognition and awards, including the United States' Samuel H. Scripps American Dance Festival Award for Lifetime Achievement in Choreography in 2013, Germany's International Movimentos Dance Prize for Lifetime Achievement Award in 2009 and Time magazine's Asia's Heroes award in 2005.
"Rice" looks to be a culmination of the company's past four decades of work. But it could not have happened without Mr. Lin's talents -- and his arts management team. Their involvement allows the choreographer to concentrate on his creative work. It wasn't always like that; in the early years, Mr. Lin was responsible for teaching and choreography, as well as staging, marketing and fundraising. This left him exhausted and unable to work creatively.
Mr. Lin realized Cloud Gate had to develop a management team. Nowadays, the company has divided its operation into three parts. Firstly, the performance of the routines. Secondly, the training and cultivation of artists, whether dancers or choreographers. And finally, the promotion of dance and taking part in wider cultural activities. The three divisions overlap, forming a coherent program of work that defines Cloud Gate as an organization. This is very much like portfolio management, dividing organizational objectives into different projects or programs.
All of Cloud Gate's managers know they're there to allow Mr. Lin and the rest of the company to work creatively. They know their work helps fund performances for artists and also keeps Could Gate -- and them -- in work. This makes them both sponsors and key stakeholders. And since theater work is beset by a multitude of details, the managers have become skilled in tackling issues appropriately, discerning what is important for the business or for art. However, because ultimately they are part of a creative process, they know they have to be flexible in how they work with artists.
An impressive archive of routines also contributes to the survival of the dance company. Cloud Gate has accumulated over 160 dance routines. Combinations of these can be used to stage a performance anywhere in the world. Routines based on well-known Chinese literature or folk tales, such as "The Dream of the Red Chamber" and "The Tale of the White Serpent," appeal to Chinese audiences. Those in a more abstract style, such as "Cursive," delight European audiences. The inclusion of different routines into a performance helps Cloud Gate develop new audiences or maintain the loyalty of existing ones worldwide.
Mr. Lin also guides dancers' careers, cultivates young choreographers, and contributes to Taiwan's arts and culture. For example, Cloud Gate is the first dance company in Taiwan to provide its dancers with a salary and routine training. The company also regularly holds open classes and performances in all parts of Taiwan, using scholarships and awards to encourage young people to take up modern dance and choreography.
Mr. Lin has spent most of his life searching for this: a sustainable way to run an international contemporary dance company. And project, program and portfolio management have helped get him there, delivering inspiring results.
If you work in a creative industry, what's the role of your management team?
For the past two decades, television dramas in Taiwan have faced fierce competition from Korea, mainland China and Japan. But in 2011, a modern Taiwanese drama -- "In Time With You" -- managed to challenge these markets, with ratings that rocketed to 2.7 million viewers. The production team responsible for this success warrants a closer look.
In television, there is a type of producer known as a "show runner." This person is responsible for both the execution and creative aspects of the show for each individual episode and throughout the series. The role is similar to a project sponsor who not only needs to raise funds, but also has to clarify project scope, acquire the team and determine an acceptable risk tolerance. For "In Time With You," Jason Hsueh is such a show runner.
In 2011, Mr. Hsueh started to adapt a Korean TV drama, "The 1st Shop of Coffee Prince," for Taiwan. But he found the terms of the adaptation agreement too restrictive. Eventually, when pre-production costs reached $50,000, he decided to stop -- it would be pointless if he couldn't make creative changes so the drama would be relatable to Chinese-speaking target audiences. This timely decision also stopped further financial hemorrhage of a high-risk project. But more importantly, it forced Mr. Hsueh to reconsider previous drama ideas, including "In Time With You."
"In Time with You," a love story written by scriptwriter Hsu Yu Ting, had been considered for years but had not been brought to the screen. The story didn't follow the established formula for romance. However, Mr. Hsueh felt that this light love story, based on the lives of ordinary people, had potential. He boldly adopted a script many others wouldn't have attempted.
The foundation of a successful drama is first a good script, and then a good director. Consider the drama to be the project, with the director comparable to a project manager, the person responsible for the production of the show. He or she is the one who puts all the artistic elements together, who brings the story to life by interacting with actors and interpreting the script. Mr. Hsueh knew that if he wanted to decrease risk on "In Time With You," he needed to find the right director. That's why he handed the reins to Arthur Chu, a director famous for a subtle, refreshing touch.
Mr. Chu shot every take beautifully, and was very loyal to the original script. He directed the drama with good quality control, and the production team never inflated the script. Plenty of product placement opportunities knocked, but Mr. Hsueh only considered products that were in tune with the original story. This steadfast commitment to the original story -- along with a sophisticated, approachable marketing effort -- resulted in soaring ratings.
Through careful execution, a previously neglected idea for a TV drama series became a blockbuster success in Chinese-speaking countries in 2012. It started with a good script (program management plan), a project sponsor and program manager (show runner), project managers (producers and director) and project team (technicians, actors and marketing staff). Even if the success of "In Time with You" was a surprise, it was not an accident.
Have you seen program management adapted to other creative industries?
Mayday is a Taiwanese rock band with a massive worldwide following. In fact, two concerts promoting their 2012 album, Noah's Ark, were held in the world's largest sports venue, Beijing's National Stadium. Those two performances alone drew 200,000 fans — an astonishing feat for any band, anywhere in the world.
Believe Music manages Mayday — and staged the larger-than-life concerts in Beijing last year. For the music management company, performance — and particularly, passion for performance — is the key to industry success. In fact, the company's success comes from harnessing and managing passion for live music as a program.
The focus on passion as a business driver starts at the top. CEO Yung-Chi Chen believes in the power of live music, and that success comes if you just do what you're good at, and do it properly. Artists and bands that write and perform with passion will naturally attract a dedicated audience large enough to help sustain them in a career.
Believe Music's head manager, Yiu-Yang Chou, has the interesting title of "Creator of Satisfaction." This reflects the company's emphasis on live performance — as long as audiences demand performances, try to satisfy them.
Mr. Chou manages over 100 concerts every year. His managerial level is that of a program manager, rather than a project manager. So when asked how he balances project constraints like scope, time and cost with quality, he says: "You can tell from the sofa bed in the meeting room that our management concepts on time and cost are very weak! But the most important requirement to work in this job [and industry] is enthusiasm. With enthusiasm, you dedicate yourself to creating something that'll make an impact. Time and money will be spent, but something great will be produced."
Across the board at Believe Music, passionate employees define cost control as "surviving" and risk management as "we've still got next time." And although that approach might seem like unsound business sense, the company's faith in passion for performance counts on a major stakeholder — the audience.
Believe Music considers audiences not just passive viewers, but also as appreciative co-producers of the live event. Their enjoyment is a key measurement of the performance's success. It is what Believe Music, and their artists, define as a successful result with each concert (i.e., project). Such word-of-mouth and long-term audience growth cannot be bought overnight, and that is why passion — and satisfaction — is so important in Believe Music's business.
Believe Music team members attribute enthusiasm over any business model for their success. When their specialized experience and passion is combined with a mature concert management system, the power of live performance becomes a money-making enterprise.
How do you apply non-traditional business drivers — such as passion — in your programs and industry? Share your experiences below, and Voices on Project Management will publish the best response as a blog post.
Learn more about the art of project management in the entertainment sector in "Let Us Entertain You," the cover story of the May 2013 issue of PM Network®.
"This film has its own fate, and it chooses me." Director Ang Lee said this not out of arrogance, but out of recognition he had been given a unique opportunity to make "Life of Pi" with people who could help him produce a film from Yann Martel's "unfilmable" novel.
Based on interviews, the production involved the most difficult demands you can place on filmmakers: children, water and animals. Previous directors had failed to see the film through due to artistic or budgetary problems.
Like the best program managers out there, Mr. Lee succeeded by combining two approaches: one creative (by incorporating pre-visualizations), the other pragmatic (by inspiring others in controlling costs).
To tackle the visual special effects, the director and the producers settled on Rhythm & Hues Studios. In the year leading up to actual production, Mr. Lee worked on pre-visualizations -- a storyboarding technique that emulates scenes with music, sound and stunts -- of the most difficult parts of the film and shared them with the studio. This allowed both the director and the studio's artists to plan how to best create the shots.
These pre-visualizations were like a feasibility study in program management. It enabled Mr. Lee to focus the studio on the development of special effects. Via this process, the different types of visual effects professionals -- from physical props people to computer modelers -- could be properly integrated into the film's production plan and schedule. Being able to see who was working on what helped the director bring to life the characters and events in the novel -- and ensure that it was done in a style that remained faithful to the novel's spiritual themes.
The second challenge was the budget. Mr. Lee's original budget was US$70 million -- cheap, considering the production's challenges. Mr. Lee had persuaded the producers to make most of the film in Taiwan, which dramatically reduced costs. But it was still a big-budget film, and as actual costs looked as though they might climb over estimates, production halted. Mr. Lee met with studio executives and showed them finished shots. Although the execs were impressed, they were also honest: Film production could only resume if Mr. Lee kept down the budget. He agreed.
Rhythm & Hue Studios' cooperation helped cut the costs, and Mr. Lee was grateful. He also knew the California, U.S.-based studio was trying to expand internationally -- and that the Taiwanese government was trying to attract investment to the creative industries. So as film production ended, he suggested a mutually beneficial deal between the studio and the government.
The result was the building of a new Rhythm & Hue Studios facility in Taiwan and the creation of in-studio training and internships, a partnership between the studio and a Taiwanese telecom company to provide cloud computing services for local creative industries, and an investment company for film production.
In the end, all stakeholders -- Fox Studios, Rhythm & Hues Studios, the Taiwanese government and Mr. Lee -- recognized the mutual benefits of working together. Key to this was Mr. Lee showing the professionalism we should expect from a program manager, and recognizing and then creatively combining benefits.
Do you think creativity combined with pragmatism can drive project success?