CAPITAL PROJECTS MANAGEMENT (CPM)

REPORTING PROCESS RIE

4/07/2014 – 04/11/2014

CAPITAL PROJECTS MANAGEMENT – REPORTING PROCESS

Dates APRIL 7-11, 2014

Executive

Sponsors

Lesley Thomas

Process

Owner

Michael Sheehan

& Barbara

Marshall

Team Lead Barbara Marshall

Facilitator Faustino Cruz

Payán & Jerraud

Coleman Team Members: Faustino Cruz Payán, Selena

Klosowski, Barbara Marshall, Tom Lotocki, Jim

Potter, Jim Barwick, Michael Sheehan, Lisa

Edington, John LaSala, Elizabeth Hamilton, Chris

Miller, Elizabeth Hamilton, Joel Contardi, Matt

Bryner, & Mark Tabor

WHY CHANGE IS NEEDED

• Current System does not effectively and accurately

communicate project health (status, risks, issues)

across different levels of the organization.

• Project Managers do not find value and do not

have the ability to make appropriate changes to

projects

• Project information is stored in multiple locations

outside the current system (Capital Integration

System)

CURRENT STATE

• The database has multiple names (e.g. The Solutions, Capital Projects Management Solutions, Enterprise)

• Six (6) different processes to input data into the

database • Reports with required information are not being

generated • Project Managers and Portfolio Managers are not

trained to create their own reports • There are currently 51 Project Managers that perform

reporting different or not at all (one person doing it for a group of Project Managers)

Capital Projects Management Reporting Process

Metric Baseline

Touch Time PRO 58 Hours per month,

Cost $28,318 per year

Touch Time PM’s 360 Projects at 8 minutes per

project (average) updated monthly,

Cost = $23,348 per year

Error-Rate 70% accuracy per month,

Total review cost $14,400

Monthly Reports in 2014 1 out of 3 monthly reports

produced,

Service Level = 33%

CURRENT STATE

CURRENT STATE

Capital Projects Management Reporting Process

STEPS VA NVA BNNVA TOTAL

# 8 35 18 61

% 13 57 30 100

FUTURE STATE

• Selected a name to call the database, Capital Integration System (CIS)

• Developed one process for all PM’s that do not have a

separate database. For WWM and Parks an export protocol is being developed to prevent double data entry

• Reports with pertinent information will be generated • Project Managers and Portfolio Managers will have a

training guide (step-by-step) how to enter data and create reports using CIS

• There are currently 51 Project Managers that will have

proper training and ownership in CIS

Capital Projects Management Reporting Process

Metric Baseline Target

Touch Time PRO 58 Hours per month,

Cost $28,318.50 per year

9 hours per month,

Savings = $5,765.42 per year

Touch Time PM’s 360 Projects at 8 minutes

per project (average)

updated monthly,

Cost = $26,461.62 per year

360 Projects at 4 minutes per project

(average) updated monthly,

Savings = $17,200.06

Error-Rate 70% accuracy per month,

Total review cost $14,400

95% accuracy per month,

Savings = $3,600

Monthly Reports in

2014

1 out of 3 monthly reports

produced,

Service Level = 33%

All monthly reports are generated,

Service Level = 100%

Total

Savings

$26,565.48

FUTURE STATE

FUTURE STATE

Capital Projects Management Reporting Process

STEPS Current Future Savings

# 61 19 42

% 100 31 69

Of the 58 WASTE identified in

the Current State process, we addressed

16 items: a 28% reduction.

GAP ANALYSIS

8-Waste

Areas of waste removed based

on UWITDMOP

•5 Unused Human Talent

•2 Waiting

•1 Inventory

•1 Transportation

•2 Defects

•2 Motion

•1 Overproduction

•2 Processing

We identified 57% of the process to be

non-value added to the customer.

GAP ANALYSIS

Value Add Vs. Non-Value Add

Analysis

GAP ANALYSIS

Fishbone Diagram IDEAL STATE

The Fishbone Diagram was used to

identify barriers to why the CIS report

was not being produced.

The Ideal State represents a

collaborative environment amongst all

involved parties. It also provides

knowledge as to why a report is needed

and stakeholder benefits.

# If We…

Then We Expect…

1 Create the ability for PMs to change

status

A more accurate account of project status and a

reason for PMs to use the system

2 Create a process to deal with non-

projects (primarily for Facilities & TES)

To capture the work being done that do not fit

within the scope of a Project

3

Create a reporting system that meets

the needs of PMs, Portfolio Managers,

and Executive Management

To have custom reports each party can use to

manage their projects

4

Create a training guide for PMs,

Portfolio Managers and Executive

Management, to use in order to create

and update their various reports

An easier more unified report based on

individual group need

5 If we streamline the reporting process To increase productivity and response rate

6

Plan and export Jim’s/Mark’s Data-

fields into CIS

To reduce duplication of data

BRAINSTORMING

If We…

Then We Expect…

7 Break down reports based on PM

needs/create report for PMs

A more useful report for PMs – reports that

serve the needs of PMs

8

Close reports on the 4th Friday of every

month and reopen it 8 business days

after – calendar - schedule

To have a set reporting structure and

continuous input of data

9

Create a communication plan for PMs,

Portfolio managers and executive

managers

To have clear, consistent, and accurate

information being sent out- - all parties are

updated

10

Give PRO the ability to give portfolio

managers the ability to update projects

that need updating

Project Managers to update projects in CIS as

needed

11 Give access to facilities and TES to

track items that are not projects

Facilities and TES to be able to track their non-

projects

12

Define each CIS status update and

document in the CIS-training guide’s

glossary

Clear understanding of what each status-type

means

BRAINSTORMING

# Experiment s Anticipated Effect Actual Effect Adopt

Y/N

1

Create the ability for PMs to change

status

A more accurate account of

project status and a reason

for PMs to use the system

Pending

N/A

2

Create a process to deal with non-

projects (primarily for Facilities & TES)

To capture the work being

done that do not fit within

the scope of a Project

Pending

N/A

3

Create a reporting system that meets

the needs of PMs, Portfolio Managers,

and Executive Management

To have custom reports

each party can use to

manage their projects

Pending

N/A

4

Create a training guide for PMs,

Portfolio Managers and Executive

Management, to use in order to create

and update their various reports

An easier more unified

report based on individual

group need Pending

N/A

5 If we streamline the reporting process To increase productivity

and response rate Pending

N/A

6

Plan and export Jim’s/Mark’s Data-

fields into CIS

To reduce duplication of

data Pending N/A

EXPERIMENTS

# Experiment s Anticipated Effect Actual Effect Adopt

Y/N

7

Break down reports based on PM

needs/create report for PMs

A more useful report for PMs –

reports that serve the needs of

PMs Pending

N/A

8

Close reports on the 4th Friday of

every month and reopen it 8

business days after – calendar -

schedule

To have a set reporting structure

and continuous input of data Pending

N/A

9

Create a communication plan for

PMs, Portfolio managers and

executive managers

To have clear, consistent, and

accurate information being sent

out- - all parties are updated Pending

N/A

10

Give PRO the ability to give portfolio

managers the ability to update

projects that need updating

Project Managers to update

projects in CIS as needed Pending

N/A

11 Give access to facilities and TES to

track items that are not projects

Facilities and TES to be able to

track their non-projects Pending

N/A

12

Define each CIS status update and

document in the CIS-training guide’s

glossary

Clear understanding of what

each status-type means Pending

N/A

EXPERIMENTS

Priority Action Items Owner Due Date Status

1

Create the ability for PMs to change

status Tom

1. 04/10/2014

(Development complete) 2.TBD

(Development & testing, &

implementation)

In progress

2

Create a process to deal with non-

projects (primarily for Facilities & TES) Lisa, Chris,

Michael, & Jim P.

1. 04/11/2014

(Determine LOE)

2. TBD

(Development & testing, &

implementation

In progress

3

Create a reporting system that meets the

needs of PMs, Portfolio Managers, and

Executive Management

Tom, Jim p., Jim B.,

Michael, Lisa, &

Mark

1. 04/11/2014

(Determine LOE)

2. TBD

(Development & testing, &

implementation

In progress

4

Create a training guide for PMs and

Portfolio Managers (and eventually

executive management) to use in order to

create and update their various reports Chris, Joel, Lisa &

Jim B.

1. 04/10/2014

(Create 1st draft)

2. TBD

(Complete training guide based

on workload projections)

In progress

5

Plan and export Jim P. & Mark T.’s data

fields into CIS

Mark, Matt, Jim p.,

Tom, & Selena

1. 04/18/2014

(Overlap of data-points)…

2. 05/21/2014

(Technical Feasibility)

3. TBD (Determine LOE)

4. TBD

(Develop-Test-Implement)

In progress

COMPLETION PLAN

Priority Action Items Owner Due Date Status

6

Break down reports based on PM needs/create

report for PMs

Elizabeth, Chris,

Joel, John, & Tom

1. 04/11/2014

(Identify)

2. 04/18/2014 (LOE)

3. TBD

(Development &

testing, &

implementation)

In progress

7

Close reports on the last Friday of every month and

reopen it 8 business days after – calendar -

schedule Chris, Matt, & Jim

B.

1. 04/10/2014 (Plan

Creation)

2. 2nd Week of May

(Implementation )

In progress

8

Create a communication plan for PMs, Portfolio

managers and executive managers Selena & Matt 04/14/2014 In progress

9

Define each CIS status update and document in the

CIS-training guide’s glossary Jim B. 04/18/2014 In progress

10 Streamline the reporting process

RIE Team 07/07/2014 In progress

11 Milestone-Map Barbara, Matt &

Tom 04/25/2014 In progress

COMPLETION PLAN

WHAT’S CHANGED?

• Project Mangers will no longer be restricted to a short period of time each month to update the CIS

• Project Mangers and Portfolio Managers will have a step-by-step guide on how to input data and how to create reports tailored to their needs

• There will be a standard reporting process for all Project Managers

• The database was given a permanent name, Capital Integration System

• H2-CMHill will work with Wastewater Management and Parks to create an import protocol from their Access databases to eliminate double entry

19

DELIVERABLES

20

Total Soft Dollar Savings Identified:

$26,565.48

•A Communication Plan for Project Managers and Capital Projects Management

(CPM)

DELIVERABLES

21

What did you learn?

• That our process wasn’t ideal

• Every portfolio’s initial state-process was different

• There’s a lot of manual input by the PRO office

• The PRO office is doing a lot of heavy lifting throughout all the processes – for the PMs

• The CIS has a lot more capability and function than I was aware of

• We have the resources we need

• Technical aspects aren’t the hardest obstacles, it’s the cultural ones

• The reach-out was harder than we had anticipated

• Learned what the system is and what a PM does

• Learned the benefits of the system and appreciated the work that goes into creating reports.

How do you feel about the whole event?

• Started off frustrated but we ended up on a good road – I think we’re all going to walk away with something good

• Was frustrated and confused via process but was glad that we documented the process and addressed confusing issues

• Pleased that we had the opportunity to tackle and solve some of the things we’ve been meaning to address

• Was the perfect environment to have these conversations - happy

What will you do differently going forward?

• Reach out more to the PRO about CIS capabilities

• Communicate across the board continuously

• Have a dialogue about what’s changed and do data testing

• Be able to positively communicate the values of lean methodology

• Buffer any resistance against CIS

• Cross-training on key software to increase transparency

• Better training on reports in addition to status management

• Learn what other functions a PM can perform with CIS

INSIGHTS

SPECIAL THANKS

Consultants Tom Blackman, Michael Finochio, Jim

Piltcher, and Tom Lotocki – CH2M

Hill

Colleagues Chuck Hart, Paul Bountry, Roger

Mutz, David Huntsinger, Brandon

Gainey, and George Delaney

Executive Sponsors Lesley Thomas

Special Sponsors Laura Perry, Budget & Management

Office and Peak Academy

QUESTIONS?

CAPITAL PROJECTS MANAGEMENT (CPM)

CPM-REPORTING RIE

Apenndix

CURRENT STATE COSTS

Pay Scale

CURRENT STATE CAPITAL PROJECTS MANAGEMENT REPORTING PROCESS

PWPRO

CODE MIDPOINT HOURLY PER MIN

# of PPL MIN*# OF ENTRIES

MONTHLY YEARLY COST

Management Analyst Sup

A812 $84,630 $41 $0.68 1 3480 $2,359.88 $28,318.50

Pay Scale

CURRENT STATE CAPITAL PROJECTS MANAGEMENT REPORTING PROCESS

Project Managers

CODE MIDPOINT HOURLY PER MIN # of PPL MIN*# OF ENTRIES

MONTHLY YEARLY COST

Engineer E813 $84,314 $41 $0.68 51 64 $2,205.14 $26,461.62

Table 1: Current State Public Works PRO

Table 2: Current State Public Works Project Manager

FUTURE STATE SAVINGS

Pay Scale

FUTURE STATE CAPITAL PROJECTS MANAGEMENT REPORTING PROCESS

PWPRO

CODE MIDPOINT HOURLY PER MIN # of PPL MIN*# OF ENTRIES

MONTHLY YEARLY SAVINGS

WITHOUT BENEFITS

SAVINGS WITH

BENEFITS (30%)

Management Analyst Sup

A812 $84,630 $41 $0.68 1 2935 $1,990.30 $23,883.56 $4,434.94 $5,765.42

Pay Scale

FUTURE STATE CAPITAL PROJECTS MANAGEMENT REPORTING PROCESS

PW Project Managers

CODE MIDPOINT HOURLY PER MIN # of PPL MIN*# OF ENTRIES

MONTHLY YEARLY SAVINGS

WITHOUT BENEFITS

SAVINGS WITH

BENEFITS (30%)

Engineer E813 $84,314 $41 $0.68 51 32 $1,102.57 $13,230.81 $13,230.81 $17,200.06

Table 3: Future State Public Works PRO

Table 4: Future State Public Works Project Manager

FUTURE STATE SAVINGS

Minutes Projects 12

Months Divide by 60

minutes Manager

Salary Total Percent Total Diff. Savings

Current error-rate

4 360 12 60 $50 $14,400 30 $10,080 $4,320

Future error-rate

4 360 12 60 $50 $14,400 5 $13,680 $720 $3,600

Table 5 displays a 25% reduction in rework. Approximately 70% of a report does not require rework. The

goal is to reach 95% of a report that requires no rework.

Table 5: CIS Error Rate