The document discusses lessons learned from the Hoover Dam project that influenced modern project management. [1] The Hoover Dam project faced many challenges including organizational, managerial, planning, and implementation issues. However, innovative solutions were applied, such as employing a joint venture of eight firms to share risks and resources. [2] Project management practices from Hoover Dam that align with the Department of Energy's framework for successful mega-projects include having a clear project purpose and benefits defined, a strong project champion, open communication between stakeholders, an experienced project manager, clear contract incentives, and long-term government support. [3] The Hoover Dam was completed ahead of schedule and under budget, demonstrating how innovative management approaches can

1. 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
102034550 簡翊真
102034611 董咨均

2. 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

3. 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.

4. 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

5. Video
 One is from the history aspect
 One is from the construction aspect

6. 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.

7. Background
The greatest engineering and construction projects
In the Great Depression
 Completed in 1936
 Two years ahead of schedule and under
budget

8. History of the Hoover Dam project
by project phases
Conceptual
phase
Planning,
execution
and
construction
phase
Close out
phase

9. History of the Hoover Dam project
by project phases
 Colorado River Compact
 In Black Canyon
 dividing generated electricity
Fourth version of the Boulder
Canyon Project Act
1920 1928
12190419

10. History of the Hoover Dam project
by project phases
Frank T. Crowe
 Work on the foundation
 Technical and productivity innovations
 Electric lighting
 Aerial tramways
Planning, execution and construction phase
1931
General Superintendent
30192919

11. History of the Hoover Dam project
by project phases  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

12. Hoover Dam Project challenges
and innovative management
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

13.  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

14.  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

15.  Innovative resources allocations
 Unbalanced bid
 Technological innovations
 Overhead cableway
 Jumbo Drill
 Concrete mixing plant
Innovative
project
management
Hoover Dam Project challenges
and innovative management

16.  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
Hoover Dam Project challenges
and innovative management

17. 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.
Preconcepti
on
Conception Execution Closeout

18.  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

19. 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.

20. 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.

21. 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

22. 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.

23. 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.

24. 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.

25. 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.

26. Thank for your attention.

27. Thank for your attention.