what can we learn from the hoover dam

What can we learn from the Hoover Dam project that influenced modern project management?

INTERNATIONAL JOURNAL OF PROJECT MANAGEMENT VOL.32(2014) P.256-264

YOUNG HOON KWAK, JOHN WALEWSKI, DANA SLEEPER AND HESSAM SADATSAFAVI

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Index

Introduce

Video

Abstract

Background

History of the Hoover Dam project by project phases

Hoover Dam Project challenges and innovative management

Lessons learned from comparing megaproject framework by the Department of Energy (DOE)

Conclusion

Introduction

Location: Clark County/ Arizona, US

Duration: 1931 ~ 1936 (2 yrs earlier)

Life cost: 112 person

Cost: $ 833 million with inflation

Length: 379m, Height: 221.4m, Width: 200m

Company: Six Companies, Inc.

Purpose: control floods, provide irrigation water and produce hydroelectric power for Nevada, Arizona, and California.

Introduction

Why Hoover Dam is so special?

Reason1 - Breakthrough

• Never built such large dam before

• Techniques were unproven

Reason2 – Time limit

• Get fund if not on time

• Built the road on canyon before start

Video

One is from the history aspect

One is from the construction aspect

Abstract

This paper examines project and program management practices applied to the building of the Hoover Dam, and discusses how these factors contributed to the establishment and evolution of modern project management principles, tools, and techniques.

BackgroundThe greatest engineering and construction projects

In the Great Depression

Completed in 1936 Two years ahead of schedule and under

budget


Conceptual phase

Planning, execution

and construction

phase

Close out phase


Colorado River Compact In Black Canyon dividing generated electricity

Fourth version of the Boulder Canyon Project Act

1920 1928

12190419


Frank T. Crowe

Work on the foundation Technical and productivity innovations

Electric lighting Aerial tramways

Planning, execution and construction phase

1931

General Superintendent

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The dam and power house were turned over to the Interior Department in February 1936, 26 months ahead of schedule and $15 million under budget.

Six Companies, Inc. was also able to overcome many obstacles in the construction of the dam and secure a profit of $13 million.

Close out phase

1936

35193419


Human resources

Innovative project

management

There are various issues, including organizational, managerial, planning, and implemental challenges, obstacles, solutions, and suggestions related to the Hoover Dam project.

Strategic

value

creation

Economical and managerial challenges

Ensuring the profitability of the project

Determining the hydroelectric power rate

Dividing the water and power to seven Basin states

Supporting the construction activities

Safety and health issues

Hoover Dam Project challenges and innovative management Strategic

value

creation

Government relations

Hoover Dam project was one of the first examples of a partnership between public and private sectors

Joint ventures

Foremost among innovative managerial solutions was the employment of a joint venture involving eight different firms, organized into six partners.

Hoover Dam Project challenges and innovative management Strategic

value

creation

Innovative resources allocations

Unbalanced bid

Technological innovations

Overhead cableway

Jumbo Drill

Concrete mixing plant

Innovative

project

management


Human Resources

Managing workers relations

Pushing workers on output

Taking a non-negotiation stance with unions

providing healthcare

Special medical dispensaries

lack of safety programs

Human

resources


Lessons learned from comparing megaproject framework by the Department of Energy (DOE)

Method

Frame Work developed by the Department of Energy (DOE) Four Major phases:

Key factors that were common to large construction projects delivered successfully from the standpoint of cost, schedule, and scope.

Purpose

Checklist can be used in different types of projects as a benchmark against generally accepted characteristics of successful project.

Preconception

Conception Execution Closeout

Clear define everything (1/6)

Project Champion (2/6)

Relationship (3/6)

Leadership (4/6)

Contract (5/6)

Government (6/6)

Condition cited as essential to success by DOE & Hoover Dam project

Clear define everything (1/6)

DOE

1. Project sponsors know what they need and afford.

2. Has a purpose and benefits are clearly defined.

Hoover Dam

1. All the essential need understood by both public and private agencies.

2. All revenue were divided long before the operation of the dam.

Project Champion (2/6)

DOE

Has one project champion whose position and behavior can benefits the project.

Hoover Dam

Agency maintain a close relationship with parties, state and labors.

For instance:• Address conflicts between public

against private interests and states benefits.

• Deal with the strike problem. • Secure adequately annual funds.

Relationship (3/6)

DOE

Open communications, mutual trust, and close coordination are maintained between owner/users and project.

Hoover Dam

Government (Parties, Federal..)

Bureau of Reclamation

Contractor of the project( Six Companies, resident construction engineer…)r

Project manager (4/6)

DOE

1. Experienced project manager

2. Project builder, possesses the requisite technical, managerial, and communications skills, and is brought into the project early.

Hoover Dam

1. Interior secretary : addressing

financial and political considerations of the project

2. Commissioner of the Bureau of Reclamation : playing the role

of project champion .

3. Resident construction engineer : strengthen the chain of

command between site superintendent and company's senior management.

Contract (5/6)

DOE

1. Contract incentives are clear and unambiguous, appropriate to the performance objectives.

2. Adequately compensate the contractor for the use of resources, risks.

Hoover Dam

1. Construction phase is divided into major sub-phase and deadline were set for each one of them.

2. Penalty for each delay

For instance: • The deadline for diversion of the

Colorado River was set as October 1st, 1933. Had to pay $3000 for each day passing this deadline.

Government(6/6)

DOE

The half life of the political sponsors that decided to proceed with the project exceeds the half life of the project.

Hoover Dam

Mainly support by federal government from the initiation to the final.

Conclusion

Project need to satisfying legislative requirements as the result of which challenges can overcome by the parties involved.

Both Bureau of Reclamation and Six Companies, Inc. at the field level and the executive level.

Ensuring the construction are review board which minimized rework and delay during construction.

Establishing a clear chain of command in the owner and contractor.

Securing adequate annual funding and relevant legislative and regulatory facilities.

Thank for your attention.

what can we learn from the hoover dam

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