The New Challenge For Saudi Building

Industry Utilizing Value Project

Management Approach

Prepared & Presented

By

Prof. Emad W. Shublaq,CPEng., CVS L , Ph.D ( Civ,Leeds )

F.SAVE , F.IEAust., F.ASCE, F.AITD
SAVE-Int. Global Affair Director ( Middle East & Africa )

March 13 ., 2013
Riyadh , KSA
[email protected]
 WHAT IS IT ?
WHAT DOES IT DO ?
 WHAT IS IT ?
WHAT DOES IT DO ?
Introduction

Over the past 20 years or so , business integrated solutions are

becoming a stylish, fashionable, and hence powerful in
overcoming organisational roadblocks.

Strategists and Leaders are in a great debate towards the most

cost effective way to reliably accomplish the right and outstanding
competition.

Although ,Prof. Michel Porter , HSB, had emphasized that Business

success relies on ( 3 ) strategies :

1- Focus
2- Differentiation
3- Cost Leadership
 It is strongly believed that competitive advantage success or
failure depends not only on adopted and well documented
strategies but rather on a well proven state-of-the Art techniques in
which performed by highly experienced professionals.

International Business , whether in USA , Saudi Arabia, or in

Australia relies on the winning situation where the best
combination of these techniques are met.

What we are presenting here is the integration of Project

managements' Skills, Knowledge , tools and techniques :

1. Total Quality Management

2. Business Process Benchmarking
3. Business Process Re-engineering
4. 6 Sigma and Balanced Scorecard
5. Strategic Planning

With Value Management approach to achieve our strategic goal

 International Business Strategy

International Business Strategy is concerned with how the organisation

competes in international product market ( Building Energy / Oil , ).

In other words, the focus of international business or competitive strategy

is on HOW the organisation competes and whether it has , or can develop,
a sustainable international competitive advantage WHEN compared to
rivals in its respective markets.( remember F.A.S.T Diagram in VE ).

Competitive advantage is the ability to outperform rivals consistently over

a specified time frame on commonly accepted performed criteria

Next Figure presents strategies choices arising out decisions at the level of
corporate strategy vertical integrations and diversification through
which an organisation can change the scope of its activities.
Integrated Model of Corporate, Business, and Functional
Strategies
Corporate Value Added
Corporate
Organizational Parenting
Scope
Corporate
Strategy

Business
Strategy

Markets Competitive Advantage Products

Business
Strategy
Human
Resources Finance

Functional
Strategy
Logistics
& Marketing
Operations Operationalising Business
Strategy
 International Business Strategy

Corporate Strategy is concerned with adding value in

respect of two equally important key areas of decision
making , namely :

1- The overall scope of the organisation activities , and

2- Corporate Parenting.

Business Strategy is about achieving competitive advantage in

the organisation chosen product market .

Functional or Operational Strategy refer to HOW the different

activity areas of a business contribute to the overall business
strategy.
 Value Project Business Strategies and
Performance

Business
Corporate Business Functional
Performance

Review
Review If Performance
Organisational
Product-Market Review Is
Scope and or
Corporate Strategy Implementation Unacceptable
Parenting

Corrective
Adjustment
Business & Project Management Integration Model

Corporate
Strategy

Portfolio Management

Business
Strategy

Program Management

Functional
Strategy

Project Management
 Key Definition PMI Standard
Portfolio :
A collection of programs , projects, and additional
work managed together to help achieve business goals

Program :
A group of related projects managed in a coordinated
way.

Project :
A temporary endeavor undertaken to create a unique
product , service or result.

Subproject :
A more manageable component of a project.
 PRINCE 2 European Standard
Is a defacto standard developed and used
extensively by the UK government and is
widely recognized and used in the private
sector , both in UK and Internationally .
It embodies established and proven best
practice in project.
Is a process based method for effective
project management .
( Certification : Foundation Level ,
Practitioner level
 VALUE Engineering Vs. Problem Solving

Value Mangement Problem Solving

Technique Technique

Gather Information Identify Problem

Analyze Function Determine Causes

Create & Generate

(5X5) Present Solutions
Ideas
Steps
Develop Ideas & Select Best Solution
Present Rec.

Implement & Implement and

Follow Up Evaluate
Project Management Framework PMI Standard

Stakeholder`s Expectation

HR Scope
Mgmt Mgmt
Comm. Time
Mgmt Mgmt

Risk Cost
Mgmt Mgmt

Procure. Quality
Mgmt Mgmt

Tools and Techniques

Project
Success
Value Project Management Integration
Model

Total
Quality Mgmt

Initiating Planning

Benchmarking
Time Value Bal. Scorecard
Management Methodology & 6 Sigma

Executing
Closing

Controlling

Cost Business
Process
Management Re-engineering
 Business Process Re-engineering

Business Process Re-engineering or BPR is the concurrent

redesign of Processes, Organisation, and their supporting
information systems to achieve radical
improvement in :

1- Time
2- Cost
3- Quality

Hammer & Champy ( 1994 ):

( The Fundamental rethinking and radical redesign of business process to achieve

dramatic improvements in critical contemporary measures of Performance, Cost,
Quality, Services
and Speed.
Quality & Performance Models

VE Business Strategy ( Functional Balance : Quality,

Performance & Cost

Act Plan Adopt Plan

Check Do Analyse Collect

Deming`s Quality Cycle Benchmarkening Process Cycle

 6 Sigma
VISION : To deliver defect free products and services FASTER, CHEAPER & BETTER

Definition
The Greek Letter ( Sigma ) is used to measure how far something
deviates from perfection .Six Sigma means a company tries to
make error-free products 99.9997%.

A Philosophy
Defects cost money. Fewer defects mean less cost , and hence
Lowest cost is most competitive producer.

A Statistic
Six sigma processes will produce less than 3.4 defects or mistakes per million
opportunities. ( i.e, : 1Sigma = 690, 000 DPMO ).
A Process
To achieve this level of performance , follow the 5 steps :

Define , Measure , Analyse , Improve , and Control.

 6 Sigma Process Methodology
1

Define

5 2

Control Measure
DMAIC

4 3

Improve Analyse
 Balanced Scorecard Performance Measure
Providing a Framework in Translating Strategy into Operation

Financial Perspective

Goals Measurement

Customer Perspective
Internal Business Persp.
Goals Measurement
Goals Measurement
BSC

Innovation & Learning Persp.

Goals Measurement
 Today`s Challenge
At Saudi Building Industry

Highest Quality

Lowest Price

Shortest Schedule

Best Technology

Greatest Flexibility

Quick Services
Value Engineering Contribution To
Project Management at SBI
Improve Value
Save Money Reduce Cost
Reduce Time
Enhance Quality
Improve Reliability
Improve Performance
Improve Human Factors, Attitude,
Creativity and Decision Making.
 Successful Value Engineering
( )

How you do it right ?

Why you do it right ?

When to Do it right ?
Communicate With The Top Management
Create The Environment And Then Synergise
Select Your Skilled & Talented Team Members
Build Confidence And Inspiration in Your Team
First Impression Last Impression Your Presentation
 VE Education & Certification
USA
SAVE International :
Japan, Hungary, India, Saudi Arabia,
Kuwait, Australia, Korea and others.
AVS, VMP, CVS
Europe and UK.
Institute of Value Management
TVM, PVM
Certification Board, SAVE-Int.
Certification Board SAVE-Int.
1- Board Chairman
2- VP Certification
3- CVS Committee Emad
4- Recertification Committee
5- AVS & VMP Committee
6- Workshop & Seminar Committee Emad

7- SJVE Member
8- SKVE Member
9- SHVA Member
10- INVEST Member
11- VMIT Member
12- Gulf Chapter Rep.
13- Board Executive
Certification in The Middle East

Let me remind you
Why I am here !

1- SAVE Int. Global Affair Director

For Middle East & Africa

2- SAVE-Int. Certification Board Member

This is not Commercial ! Its part of my mission
Using both Languages . Again, its a part of my mission
VE in Riyadh
VE in Damascus
VE in Beirut
VE in Kuwait
VE in Amman
VE in Jeddah
VE in Khafgy Joint Op.
 Res. : Karen Smith SAVE Int. Jan.12, 2012

Affiliates Active Active

AVS CVS AVS CVS
USA 500 193 17.5 14.2
INVEST 479 7 16.7 0.5
SHVA 350 19 12.2 1.4
SJVE 126 9.3
SKVE 743 55
VMIT 7 4 0.2 0.3
Gulf Ch. 347 14 12 1
SAVE 884 221 30.8 16.3

Others 299 25 10.4 1.8
Total 2866 1352
Country / Region Membership

Central and South America 7

Australia, New Zealand., & Sub-Sahara Africa 14

Europe 79

Middle East 506 - 28.5%

North America, Canada, Mexico, West Indies 1040

Asia - India , Malaysia, Indonesia . 55

Far East Korea , Jap., China, Philippines. 77

Total 1778
Certification Board Latest Violation
1- In Abu Dhabi
A Mod-I course is cancelled because
Neither the Instructor nor the course
Are approved by SAVE-Int.

2- Saudi Arabia
A Mod-I Instructor is suspended
From proctoring - ?
 Certification Board Update

Leading VE Studies by
CVS and not AVS-understudy

AVS Title - Reactivate yearly

Think Again
About The
Functions

Thanks