Project Management View from Rail Transit Programs and Projects

On a recent bridge project, the infiltration of water through the decking to the roadway underneath was obvious.   A field visitor to the bridge after a heavy rain expressed dissatisfaction and suggested the bridge was like a car wash.   Another stakeholder sent a terse Email indicating an inspection was wasting people’s time because the waterproofing non-conformance was not corrected.   

Here is a project manager’s perspective on the three primary steps in the non-conformance process: 

Opening:         At this step, the contractor and quality group determined there is a non-conformance of the product/deliverables to meet the contract requirements.   A Non-Conformance Report (NCR) is created and distributed for engineer and quality group review.  (This can be preceded by an Observation, which is reviewed and confirmed to be a non-conforming condition.) 

Pending:          At this step, the contractor, engineer and quality groups agree on the required corrective action to resolve the described non-conformance.  Procedures and as needed, updated drawings or sketches are approved and ready for execution.    

Closing:           At this step, the contractor and construction manager agree the corrective action is completed and after testing, it is confirmed the work product/deliverables meet the contract.  Quality records are available to substantiate closing the NCR.

The NCR is an output for controlling non-conforming conditions on projects, which are based on contract requirements as well as industry standards by International Organization for Standards (ISO) and Project Management Institute (PMI).  The NCR is an integral part of a Project Quality Management System Plan (QMS) and the project approved Quality Manual from each consultant, contractor, vendor, manufacturer and independent testing agency. 

A sample contract might include the following QMS attributes, which can be customized to the contract scope such as design, construction, construction management and testing agency:

• Management Responsibilities
• Design [and/or Construction] Control
• Document Control
• Purchasing
• Supplied Items
• Product Identification and Traceability
• Process Control
• Inspection and Testing
• Inspection, Measuring and Test Equipment
• Inspection and Test Status
• Non Conformance
• Corrective Action
• Quality Records
• Quality Audits
• Training

While an NCR was written and the corrective action was agreed upon by the Engineer and product manufacturer regarding the bridge, there were delays in arranging the required work conditions for completing the corrective action.  Subsequently, the repair to the bridge waterproofing was not successful in resolving the drainage problem.  As a result, the same repair was scheduled for the future, which further increased the overall process duration.

There were no contract requirements or project level plans containing performance goals/durations for each step.    However, management for the contractor and PM oversight were questioning the number of open NCRs and the durations to closure.   Management perceived the durations for the NCRs were much too long.

The NCR process durations are a function of the work hours and conditions for each contract in a project.   As a result, each project and each contract may have different durations for the optimum project processes including NCRs. 

Factors affecting NCR durations:

• Proximity and access to the work location
• Priority of work by the Engineer and Quality team representatives
• Prescribed durations for response dictated by project document control goals
• Schedule for successor activities using the product and deliverable cited in NCR
• Conditions, including temperature, weather, and safe work environment, required for implementing the corrective action
• Availability of Independent Testing Agencies to physically confirm and generate a Report the corrective action are complete, successful and meet contract requirements.

Management of NCR performance should be based on historical data from previous experience with the process lifecycle provided by the Buyer’s organization on completed projects similar in scope, cost, schedule, complexity, contract types, and document control methodology.   Without prior experience, performance metrics may need to go through several trial periods based on the best estimate of the NCR work flow.

The estimated work flow should be developed, vetted and tested by the Buyer and Seller before implementing performance management/measurement of NCR durations.  An example for the NCR work flow and optimum activity timeframes for a rail transit project is below.  The process includes Field personnel identifying variances to requirements and  overseeing site work, Engineer to evaluate the NCR/Observation and determine the corrective action, Contractor to perform the corrective action and the Field personnel to confirm the corrective action meet requirements.  This example may be a useful framework across several industries.

Opening:         The activities in this phase are:

• Report observation to Quality group-Day 1
• Evaluate observation and determine if corrected by Construction group-Day 7 (NCR not required)
• Determine work was completed without correcting the variance to requirements-Day 14
• Initiate and complete NCR-Day 21

Pending:          The activities in this phase are:

• Submit NCR to Engineer for review-Day 22
• Conduct field inspection of conditions-Day 29
• Develop corrective action/contract change-Day 59
• Submit corrective action for Buyer review-Day 58
• Obtain Buyer approval on corrective action-Day 72

Closing:           The activities in this phase are:

• Notify Construction group to implement corrective action-Day 73
• Obtain materials and equipment for work-Day 87
• Complete corrective action work-Day 101
• Issue NCR confirming completion-Day 108
• Obtain Buyer approval on completion or work to requirements-Day 122

Accounting for the established review goals, processing time for document control, and the limited access to site locations, the optimum duration for NCR process = 122 days from initial Observation.   The potential metrics for monitoring performance are:   OPENING = 21 days from Observation.   PENDING = 51 days from NCR start.    CLOSING = 50 days from approval of NCR corrective action.

TIP:    PM should balance the work flow and activity timeframe to the specific project scope and durations common to the industry, the Buyer’s standard organization processes, and the review duration goals for document control/production.

TIP:    PM should evaluate the managerial and administrate effort by the Buyer and contractor to explain performance variances to goal durations, which may already be monitored and measurable by other means such as achieving contract and forecast milestones.  Typical milestones, including Substantial Completion, Construction Completion and Final Completion/Acceptance are dependent on closing NCRs and Observations. 

TIP:    Metrics and dashboards are proven management tools for monitoring project performance as well as organizational silos.  PM should assess the totality of the management dashboards so that the team, stakeholders, funding partners, community and political influencers remain focused on critical goals without distraction to tie up managerial resources explaining variances to goals on items that do not directly affect progress and achieving goals. 

TIP:    The performance on NCRs may not be as critical as other key indicators that more directly affect interdependencies on achieving operational use and final acceptance of the project product/deliverable by hard schedule dates and milestones.

TIP:   Project QMS and contractor/consultant Quality Manuals should clearly define the attributes for an Observation and Non Conformance.  Both work flows should provide checkpoints to eliminate nuisance and trivial items identified during routine in-progress inspections of work.  These items should be resolved by the Buyer’s and Seller’s supervision on-site.    

Since dirt roads with horse drawn carriages and wagons were replaced with rails, rail transit systems were built from the top of running rails (TOR) and centerline of rails (COR).  TOR is the interface for rails car vertical clearances with overhead structures, passenger car vestibule interfaces with station platforms.  COR is the interface for horizontal clearance between rail cars and structures along the Right Of Way (ROW.)

Rail transit industry evolved to steel rails and cars with steel wheels and axle sets.  From this foundation, operators continued to integrate technology and raise service standards by adding systems to improve the safety of train operations and comfort in passenger cars and fixed infrastructure.  Each improvement created more interfaces and the need for more extensive testing of interdependent systems assure operation to meet standards.    Some of the interfaces are:

• AC and DC electric motor propulsion and passenger HVAC comfort on rail cars
• 3^rd rail DC power and AC overhead catenary power to support passenger cars
• 110hz Ac powered signal systems for safest movement rail cars
• Communications systems for operations and customer information at stations and on-board rail cars.

As world events affected mankind, safety and security systems were incorporated for surveillance of employees, passengers and other customers in stations, terminals, facilities and passenger cars and monitor environmental conditions in terminals.  

The rail transit industry is always developing improvements for upgrading fixed assets and rolling stock systems.  The more recent improvements include providing real-time status on service on video displays and message signage in passenger cars, stations, and platforms.  Other improvements such as positive train control, and video monitoring of engineer status in the cab of passenger cars and locomotives are still being developed.  

Each subsequent improvement creates more interfaces and the need for more extensive testing of interdependent systems assure operation to meet standards.   

In rail transit – TOR and COR remain a constant datum for the interface between passenger cars and system infrastructure.    It is also a baseline criterion for developing scope, technical criteria, and design, construction and testing requirements for capital projects.   The project scope, execution method, cost and duration are a function of the business case category.  

Common business case categories are stated in the New York MTA Capital Program Plans for planning projects and they are:

• State of Good Repair (SGR) projects renew assets that have surpassed their useful life, to achieve SGR. 
• Normal Replacement (NR) projects renew assets that are nearing the end of their useful life, to preserve SGR
• System Improvement (SI) projects enhance the network, providing new capabilities and a better customer experience  \
• Network Expansion (NE) projects extend the reach of the MTA network, expanding the service offering

Unlike air travel, water travel and roadway travel, the rail transit passenger cars and infrastructure are always physically constrained by the characteristics and features of the fixed assets and the rolling assets.  As a result, the design, construction and testing for commissioning and use of projects require all the parts to be tested together after all tests are completed on individual systems.

Wayside systems and rail car interfaces include:

Track:              Rail gage – distance between rails and switches, COR spacing with adjacent tracks, and TOR and COR clearances with structures along the ROW need to align with spacing of axle wheels sets for movement of rail cars and on-rail vehicles.

Power:             Substation and signal power equipment, positive cables and negative return cables needs to supply adequate power for wayside and rail car propulsion and to supervisory monitoring system, and the 3^rd rail TOR and COR such as height needs to align with rail car contact shoe.

Signals:            Signal generators for coding running rails need to support rail car cab signals, wayside signals for aiding operating engineers in determining and controlling speed, and for correlating track conditions with scheduled train routing.                      

Structures:       Wayside structures need to provide proper vertical - TOR and horizontal – COR clearances for dynamic movements of rail cars at the maximum operating speed for the track geometry and topographic (civil) conditions.

Facilities:         Equipment and tools need to provide TOR and COR clearances matching the outline of rail cars and rail-borne vehicles for inspection, maintenance and repair.

But the linchpin interface for connecting the systems to form a fully integrated and functional transportation system is:

Communications:  

• Radio systems and network coverage throughout the system connecting qualified operating employees at train operation centers and local control towers, on rail cars and on-rail vehicles, and wayside facilities, including interfaces with positive train control.
• Cable network connecting telephone and data lines to substations and motor generators; signal huts, equipment and wayside signals; customer information service displays and signage
• Cable network connecting to traffic safety and security systems, including CCTV and other features for video analytics such as recognition technology for persons, idle packages, vehicle tags and crowding of persons
• Cable network and wifi equipment to connecting business operating systems, fare collection and ticketing systems, and mobile technology systems to customer cellular applications.

The International Council of Systems Engineers (ww.incose.org) describes the integrative approach through the engineering lifecycle as:

The integrative approach has long been used in systems engineering and usually involves either interdisciplinary (e.g.. integrated product teams) or multi-disciplinary (e.g.. joint technical reviews) methods. The integrative approach by itself can be adequate where the situation is not overly complex and there are smaller numbers of stakeholders potentially impacted. The integrative approach can be used when dealing with a highly precedented situation that has been encountered before and a path to the solution can be readily identified and understood (albeit there will still be many challenges along the way, technical and otherwise). The integrative approach includes the traditional multi-disciplinary and inter-disciplinary approaches commonly used in systems engineering practice. The transdisciplinary approach may be needed in unprecedented situations or where there is a significant degree of complexity involved. See Madni (2018).

System Integration Testing (SIT) commences after all the individual systems are tested and commissioned for alone operation.   The integration scope will encompass all wayside and rail cars working together in unison to verify that all systems are operating as designed and in accordance with Owner and regulatory requirements, such as Federal Transit Administration.  

Per Federal Transit Administration (FTA) Oversight Procedure 54:

System Integration Testing SIT validates that all fixed facilities, systems, and equipment perform as intended, both individually and as an overall system when integrated. The process also confirms that all personnel have the management capacity and capability to provide safe and dependable service, and that emergency drills have been completed prior to revenue operations. For a well-managed project, SIT is integrated into the project master schedule with time-phased activities showing the inter-dependencies between various activities and project milestones.

SIT for projects that are State of Good Repair and Normal Replacement (and some System Improvements) may be adequately covered by a series of Factory Acceptance Testing (FAT), and Site Acceptance Testing (SAT), which may include a burn-in period to monitor performance and compatibility.  Most of these type projects use the Owner’s existing and well proven specifications and approved products.  And many railroad systems, such as signals, require extensive pre-testing to support cutovers that are conducted with the system shut down for testing with trains operating without customers to run every possible train route.  As a result, the exposure to risks on these type projects is relatively low impact to the Owner’s existing system and operating plans.  These tests may be sequenced incrementally over several weekend outages to minimize impacts to weekday service plans.

SIT for projects that are System Improvements and Network Expansion, System Integration Testing is larger scope that builds upon FAT and SAT.  These projects can vary from first time applications of new systems or new technology, or are a completely new type infrastructure to the Owner’s existing system or new startup.  Each scenario presents exposure risks on practices and processes for operation, inspection, maintenance and repair.   As a result, SIT will require a larger testing scope.  These type projects have a larger exposure to risks with higher impacts on the commissioning and startup, operating processes, and manpower loading and skills.   This may require longer period of testing to assure all risks are mitigated

SITs will test, measure, analyze and verify compliance to expected results for a comprehensive list conditions that replicate all potential operating scenarios including train routes, train density and passenger car loading.  While dependent on project scope, below is a sample list of SIT test attributes:

Track:              Reliability and durability of switch operations

Power:             Third rail voltage drops and substation/motor generator breaker operation and trip setting

Signals:            Switch point and rod operation, switch position integrity, indications for wayside signal aspects and cab signal speed aspects, and positive train control

Structures:       ROW clearances with dynamic envelopes for rail cars and on-rail vehicles, and operations of vertical transport and building systems

CCTV:    Camera field of view, analytics and indications

Ops Center:     Remote operation of track switches, electrically operated power switches and breakers, camera panning, PA announcements, information message displays, intrusion alarm indications, radio communications with train engineer/conductors, towers, employee facilities, and ROW inspectors and maintenance work crews. 

TIP:    The scope, complexity and duration of SIT is a function of the project classification, scope, division of work between contractors and in-house forces, work conditions and the Owner's experience with similar FTA (government) funded projects.

TIP:    SIT processes, procedures and documentation should be tailored to the Owner's existing organization, quality management system, safety and security program plan and operating plans and procedures.   

TIP:    If the Owner has completed similar projects before, they will be a good source and judge on the SIT completeness and realism of the execution schedule.

TIP:    Owner’s input is essential to assure the SIT is not under-scoped on complex projects or over-scopes on projects that contain well documented and previously used testing processes, procedures and schedules. 

TIP:    SIT schedules need to be consistent with the work conditions in the Contract, which may restrict work hours, require services modifications and shut downs, and need protective services to support the testing.

TIP:    For work performed by in house forces, the SIT, final inspection and determination if the work is safe for service is designated to the on-site qualified and responsible person (s).  The processes, procedures and documentation is well established by the Owner and in compliance with Federal Railroad Administration (government) regulatory requirements for railroad operation.  

For more information, visit:

Procedure 54: https://www.transit.dot.gov/sites/fta.dot.gov/files/docs/OP54%20Readiness%20for%20Revenue%20Operations%20-%20Sept%202015.pdf

Lessons Learned – Sun Rail (New Start)

https://www.transit.dot.gov/regulations-and-guidance/implementation-systems-integration-testing

MTA Capital Program

https://new.mta.info/capital/2020CapitalProgram

International Council for Systems Engineers

www.incose.org

The broad scope of integration includes understanding processes and interdependencies, verifying process durations, assuring logical sequencing of project schedule activities, and interconnecting processes across organizational silos to assure alignment of managerial areas with the project scope, schedule and budget.

On rail transit projects, integration includes linking management across organizational silos, including design, construction, contract administration, operational coordination, quality and safety, and tailoring processes, deliverables and approaches to the Owner’s business and, if available, its established Project Management Office (PMO.) 

Project management integration crosses all the knowledge areas, which are defined by the Project Management Institute’s (PMI) – Project Management Body of Knowledge (PMBOK).   PMI knowledge – project level areas include: scope, schedule, cost, quality, resources, communications, risk, procurement, stakeholders, claims, safety, environmental and finance.

An Owner’s rail transit business management typically includes engineering, maintenance of equipment (mechanical), transportation, passenger services, procurement and logistics, materials management, business systems, fleet management, human resources, legal, safety and security, and CEO leadership team.   For projects, the Owner’s traditionally assign representatives from essential groups to the support the Project Manager with assistance from the PMO.   Typically, the PM will work closely with engineering, transportation, passenger services, procurement and logistics, legal, and safety and security.

For most rail transit projects, the PM is always responsible and ultimately accountable for integration across all the management functions.  The PM's skills and experience on projects will determine the approach and success of the integration.

PMI defines the PM’s role “when performing integration on the project:

• Project managers play a key role in working with the project sponsor to understand the strategic objectives and ensure the alignment of the project objectives and results with those of the portfolio, program and business areas.  In this way, project managers contribute to the execution and integration of the strategy.
• Project managers are responsible for guiding the team to work together to focus on what is really essential at the project level.   This is achieved through the integration of processes, knowledge and people.”

Unfortunately, many project organizations today, do not define a Project Manager position.   However there may be a collection of leads for various silos including design and engineering, construction, construction management, scheduling, estimating, reporting, contract administration, budget administration, operational support, safety management and quality management. 

Through years of experience and training, and regardless of the scope, value or duration, a PM is required.  As built into the PMI-PMBOK, a PM is always responsible and accountable for the overall project performance, whether he/she was a direct contributor or hands-off manager.   If a contributor failed, the PM failed.   As a result, the PM learned every team members’ role, responsibilities and deliverables and as needed, he/she could step in or delegate to a qualified person to fill a gap and support the team without missing critical milestones or delaying project progress.  

On large rail transit projects, the Project Manager’s focus is frequently redirected to responding to Board governance, numerous oversight consultants, funding partners, government influencers, and community advocates.   As a result, the PM will surround himself with Assistant Project Managers that can focus on managing progress to schedule and as needed, contributing equally to estimates, schedule updates, reports, contract administration, quality, safety, security -  IE Integration.  And as the leader of the project, the PM provides direction to the team based on institutional knowledge and cultural perspective of a rail transit organization.  

If the project organization does not have a dedicated PM, the integration will likely be spread by default to other members of the team.   This leads to no-one member being accountable for the project – as a result no-one member is responsible.  This situation will create managerial ciaos and an endless search for a manager that is accountable for decisions and performance.   Without a PM, the project team will simply delegate to a responsible party in an organizational silo.  This situation makes management integration difficult.     

PMI states “The project manager should strive to become proficient in all the Project Management Knowledge Areas.   In concert with proficiency in these Knowledge Areas, the project manager applies experience, insight, leadership, and technical and business management skills to the project.  Finally, it is through the project manager’s ability to  integrate the processes in these Knowledge Areas that makes it possible to achieve the desired project results.”

A superior knowledge and understanding by project leaders with integration experience on projects needs to be balanced with experience in the domain, such as rail transit projects.   This may require assigning or hiring PM personnel that have broad experience with projects that have similar as scope, regulatory and statutory requirements, industry suppliers of products, government or developer funding sources and division of labor to execute the project. 

Good Practices for Project Management Integration

• Verify the schedule logic is appropriate for work sequences; means, methods and durations; defined interfaces to predecessor and successor activity, and for interdependencies in the WBS
• Validate Division of Work is consistent with the Owner’s organization and internal labor force and collective bargaining agreements
• Monitor the activities and progress of cross-connected management silos by project producers including design contractor(s), construction contractor(s), Owner, PM team quality, PM team project controls, and PM team contract administration
• Confirm alignment and timing of material purchase processes, durations from PO to delivery, and the adequacy of float to schedule installation or construction activities
• Validate site access and work hours can support the scheduled performance milestones at the contract level and project level
• Assess the durations for manufacturing and fabricating processes for materials and systems are within industry capabilities and practices
• Establish and monitor Owner’s staffing levels are adequate to support the design and construction activities as defined in contract Division of Work.

Other considerations:

• Identify a PM or an Integration Manager role for reporting and monitoring interdependencies of work across functional groups and with authority to provide direction
• Assure assigned PM from in-house candidates or a consultant PM has demonstrated project management skills and expertise; project experience matching the current project scope; and demonstrated knowledge of the Owner’s operations and management culture
• Provide the PM with the autonomy and authority for allocating resources and implement decisions equal to the level of accountability on the project
• Create a Matrix that identifies the interdependencies between functional silos and the critical path on the schedule

TIP:   The PM or Integration Manager must be an avid reader with the ability to see hidden threads in content across managerial silos and PMI-PMBOK knowledge areas.

TIP:   On a mega project, an effective way to improve integration is to breakdown the mega-project into a program of individual projects that can each be executed by Project Managers in a PMO environment.

TIP:   Regardless of assignments created by software tools, experienced rail transit persons should monitor all incoming transactions and review the titles and content of Submittals and Requests For Information-RFIs.  As needed within individual accountabilities and expertise, contribute technical and managerial comments to complete integration of comments across silos. 

TIP:   Design management integration topics include consultant management, processes and deliverables for construction specifications and drawings, design criteria, project business case and value engineering to provide best value to the Owner.

TIP:   Construction management integration topics include contract documents, inspection and testing, quality control, quality assurance, performance management, change control, risk management, project records management, and knowledge transfer to the Owner.  

TIP:   Communications on project progress and actions can vary frequently based on changing conditions.  When communications create different messages, project leadership must take immediately steps to  resolve the different messages by providing clear direction.  

On rail transit projects with multiple design and construction contracts, a key project management function is Contract Integration.  

Typically, a contract has specific performance milestones for delivering services and furnishing systems, products and tangible assets to complete the work.  The work activities, durations and sequencing of predecessor and successor work are defined in the detailed contract schedule, which is used to report progress and determine payments to the contractor.    

When multiple contracts are executed under a single project with a fixed budget and end date, the interfaces between contracts is critical to organizing and monitoring the work to ensure it is executed in the same manner as-designed.   A Project Manager (PM) or designated Integration Manager will define the specific interfaces between the contracts, identify the activities that are linked to the interfaces, and create a Contract Integration Plan (CIP).   The CIP, which is a supplement to the Project Management Plan (PMP), is used by the PM to monitor and maintain the sequence of contract progress and manage risks that impact the overall project schedule. 

Contract integration is a cross-functional management activity that connects knowledge of processes, input/outputs, and tools and techniques from several areas of PMI’s Construction Extension to Project Management Body of Knowledge, such as Scope Management, Time Management and Risk Management.  

In rail transit construction, contract integration can be performed by any one of several members of the project team, including PM and staff, Contract Officer/Manager, Scheduler and Risk Manager.  However, contract integration requires the team acquire a thorough understanding of:

• Procurement methods and durations
• Scope and contents of the contract documents
• Timing of work progress relative to other contracts
• Likely means and methods by contractors to meet the performance requirements of the contracts
• Interfaces created by the scheduled sequence of the contracts.  

While the PM will assign the responsibility to a single team member, the entire project team should be aware of the function and the key markers that will be established to monitor the interfaces between contracts. 

The scopes of contract packages are developed for execution in a certain sequence to achieve project scope realization by the time the last contract is completed.   The planned sequence of construction contracts is heavily dictated by the physical reality of the project environment, available means and methods, and the space within the project envelope.   Those physical considerations will determine the key interfaces between each contract as well as a confidence level that the project plan and schedule can be properly executed.    

A simple method to implement contract integration on a project is to:

A)        Identify and describe the interfaces between contracts.    PM will manage the development of the contract documents.  Based on the contract scope and performance requirements, PM will prepare a simple statement such as Contract A for the system must complete submittals before Contract B for the equipment foundation is awarded so the weight and loading of the system equipment and the footprint can be finalized for constructing the foundation.   The Interfaces may include contracts under other projects that are adjacent to the Project envelope. 

If part of a Program, the interfaces may include connections to predecessor and successor projects.  An example interface is -  Contract E for the Control Center can not be completed until Contract D for the fiber Optic Network under another project is completed and available to connect into the Control Center.  

B)        Create a Master Project Schedule (MPS) with milestones or constraints linking the contracts to specific activities and dates.    PM will create an Integration Management Plan (IMP) that describes the interface and the connected contracts.   PM will assure the interfaces are shown in the MPS and that they are properly link in the approved detailed contracts schedules for each contract.   The interfaces will create specific connections to activities in each project contract and as needed, interfaces to specific milestones in contracts on other project adjacent to the Project envelope.   As the MPS is updated for progress, changes in activities dates may show variances between milestone dates and forecast milestone dates.   

C)        Establish the monitoring methods, schedule variance metrics and triggers, and the frequency for assessing any impacts to the dates based on progress updates or changes to the contract schedules.   PM will define the integration management responsibility in the PMP and incorporate the MPS milestones interfaces into the Risk Management Plan (RMP).   This may be discussed at monthly progress meetings, quarterly updates for the risk management plan, and at PMO Quality Management System Meetings.      

D)        Describe the mitigation for impacts to milestones or constraints created by contractors’ progress that varies from the planned schedule.   PM will create a CIP that describes the interface and the connected contracts and the actions required to address schedule variance for interface dates.  As the CIP identifies interfaces, the RMP will be updated for the risk that contract interfaces are changed along with qualitative judgment on probability and impact.   As theses risks are triggered, PM will lead the development of solutions, analyze the solutions and alternatives, assess threats and opportunities to other contracts and projects, and select/present to PMO the best value decision.  Due to critical nature of construction schedules, the solution development process should be completed within the PM’s progress reporting period.     

E)        Prepare a response action for solutions that require changes to contract milestones.  PM will develop the response action for the RMP, which will detail the cost, schedule and scope impacts from the triggered risk.    Interfaces with contract schedule variances that can not be mitigated will require changes in project end-date.   Under the RMP, the PM will execute the response plan, which will implement changes to cost, schedule and scope on the affected contracts, and as needed, to the Project and to any other projects with interfaces.

TIP:  Before developing the CIP, ensure that the project has developed the prerequisite project documents such as Project Charter, PMP, and a Procurement Plan/Contract Packaging Plan 

TIP:   Contracts can include labor agreements for work conducted by the Owner’s in-house labor forces, which are governed by Owner’s collective bargaining agreements with the unions with jurisdiction for the work.  

TIP:   Before validating the project schedule and milestones and finalizing the CIP, obtain the Owner’s organizational process and forms to support the proposed procurement acquisition and delivery methods for authorizing work by contractors and in-house forces.  

TIP:    The responsibility for contract integration maybe best handled by the PM with support from a Scheduler or Project Coordinator providing monthly updates on key marker activities in the Master Schedule.

TIP:   Best value decisions should not seek to reduce the project scope or create dramatic changes in a Program.  However if it does, a thorough review of interfaces should produce a Lessons Learned that may include updating the planning and executing of projects and the packaging and sequencing of contracts. 

Newpapers, industry magazines, corporate press releases and televisions sound-bites have introduced “transformation” and “transformational” into the lexicon of content in reporting on projects and describing corporate reorganizations.   

From behind podiums and microphones, executives and public officials are touting the benefits of transformational projects.   The content typically emphasizes how the projects will transform the company, the region, the community and the products/services to customers.   Some of the projects in the media include:

• Hudson Yards – a real estate development over a rail right of way
• 7 Subway Line Extension – a transit system expansion extending from 42ndSt to 34thSt at  Hudson Yards
• 2nd Ave Subway – a transit system expansion along Manhattan’s east side between 63rdSt and 96thSt
• Double Track  -  a railroad system expansion between Farmingdale and Ronkonkoma
• 3rd Track – a railroad system expansion between Floral Park and Hicksville

In the rail transit domain, the context may contain dramatic changes in the organization to improve operating performance or to re-energize the completion of major projects that change the existing products and services to customers.   This may include system expansions with new terminals that advertise high-end property features and stores, and a new fleet with never before seen amenities, such as charging stations, video advertizing, new seating features, and CCTV monitoring operator and passenger compartments.  

On projects, the organization provides the input and the tools and techniques to accomplish the plan and realize the deliverables and benefits.  Not surprising, transformational projects usually contain detailed analysis of the financial investment and forecast returns for the execution, start-up, operation and maintenance phases.   Each of these phases may also require adjusting the organization’s operating model for staffing, training, facilities and furnishing, tools and equipment, and materials.  

Transforming an organization is different than the results from the output of the projects involving capital improvements, and it may require changes in culture, reporting structure, and processes and procedures.    For these transformations, there needs to be a strategic framework for changing the current performance trends and to better aligning organizational assets with longer term goals and expectations for both short term and continued improvement in the quality of management and business operations.   Some organizational changes in the media include:

• Restructuring management and business processes, procedures and practices at NYC-MTA
• Changing management leadership at MTA East Side Access Project with new Leadership
• Integrating a new PMO into the MTA East Side Access Projects
• Launching a consolidated website for MTA-LIRR Projects – A Modern LI (http://www.amodernli.com)  

Any change is an organization can be disruptive and create challenges to existing operations while improvements are defined and implemented systematically.   The decided upon change should be the outcome of a thorough review of the existing organizational conditions, work flow problems and execution risks.  Determining the transformation plan and proofing the end results will focus on:

Validating the reported performance metrics and trends are correct and accurate

Verifying and concurring changes are required to better align all activities and deliverables with the organization’s business plan and the organization’s assets including personnel, processes, procedures, tools, and techniques.      

The transformation should be undertaken as a project or a series of projects that when completed can mitigate conditions or solve the stated problem(s), and achieve the envisioned end results.  The solutions should demonstrate improvements in the organization ability and confidence in achieving the short term and long term goals.  Ideally, the plan will follow proven project management and quality management processes and methods and adhere to a defined lifecycle.   However before finalizing a plan roll-out, the organization’s executives should perform a rigorous vetting of the plan to prove out assumptions, approve the approach and hold the project team accountable for the expected results.  

The transformation initiative must be carefully planned and executed with transparency throughout the organization’s reporting structure.   The lessons for updating tools and techniques and adopting best practices learned from executing capital projects will be applied for transformation, including a proven communications plan and a strong scope management plan.

An operating transformation in an organization will require a well defined communications plan covering:

• Internal press releases on the poor performance and the plan for making improvements in processes, training personnel and hiring additional staff
• External press releases on corporate commits to specific and aggressive milestones and dates for implementing changes
• Local media coverage and endorsements by public officials and influencers to the benefits from the changes to the community and the region
• Social media videos covering sound bites on cost savings, tax reductions, employment increases, and home values

The transformation plan will be complemented by strong project governance and highly skilled and experienced project staff.  Since the transformation will likely require changes in existing practices, processes and procedures, it will be necessary to continue the existing operations while the transformation proceeds.   As milestones and deliverables are achieved, changes will be systematically and deliberately implemented.   The plan will identify the required training for personnel and the new equipment, tools, software and software licenses that will be installed, tested and ready for use.    

The scope of the transformation will focus on re-engineering management work flows, which are the root cause of poor performance metrics.  The work flow reviews should include attributes and objectives such as:

• Existing project documents to identify gaps, such as materials management involving Owner supplied materials, and work zone logistics for work areas shared by multiple contractors
• Existing project documents to eliminate requirements that are obsolete and no longer used for management functions
• Lessons Learned program to ensure documenting and sharing negative and positive experiences across all management functions
• Work flow durations to compare expected timelines with actual durations
• Processes and procedures to make changes to overly complex and time consuming steps, which erode value by creating non-value added deliverables, such as duplicating logs and tracking sheets already produced by other participants.
• Project schedule to validate activity sequences, interfaces with predecessor and successor work packages, and contact time and productivity is consistent with work hours and access restrictions.

Like project plans, the transformation milestones and dates should be realistic, measurable and achievable.   In some cases, public sector transformations are the product of executive goals and government influencers.    This often creates lofty promises and aggressive performance metrics that challenge an organization’s operating processes, its long established working culture, and the quality of personnel.   These challenges and risks will need to be addressed as part of the transformation plans.   Ideally, the format and content of the plans will resemble the Project Charter and Project Management Plan requirements from Project Management Institutes – Project Management Body of Knowledge (www.pmi.org) and Federal Transit Administration (www.FTA.dot.gov).