More Related Content Similar to Interface Management: A Systemic Approach for Projects and Organizations (20) Interface Management: A Systemic Approach for Projects and Organizations2. Table of Contents
Uncertainties
©Septentrion Strategic Solutions Ltd.
Defining Interfaces
Interfaces and Systems
Understanding Interfaces
Elements to Consider when Managing Project Interfaces
Interface Management Processes using the PMI framework
Case Study: Oil Sands Megaproject in Alberta
Final Considerations - Key Takeaways
4. Interfaces and Systems
Uncertainties
©Septentrion Strategic Solutions Ltd.
Modern Project Interface Management originates from the
influence of systems thinking in project management:
• System: Assemblage of elements (people , things, information,
etc.) grouped together to achieve a particular system objective
• Systems are logically broken down in sub-systems
• Sub-systems are formed by subsets
A project is formed 3 subsystems:
1. Project Lifecycle
2. Management Levels
3. Operational Framework
5. Subsystem 1: Project Lifecycle
Uncertainties
©Septentrion Strategic Solutions Ltd.
FEL-1 ExecutionFEL-3 Operations
Detailed
Engineering Construction CSU
FEL-2
Project Gates & Phases
CSU - Engagement and Interfaces in Time
6. Subsystem 2: Management Levels
Uncertainties
©Septentrion Strategic Solutions Ltd.
The Project
Level II: Middle
Management
Level III: Technical
Management
Level I: Senior
Management
The Business Environment
Coordinates project
technical core and buffers it
from the outside world
Provide Strategy and deal
with business environment
Responsible for the
technical content of the
project
Competitors
Government
Suppliers
Community
groups
Media
Regulator
Agencies
Economic
Climate
7. Subsystem 3: Project Operational Framework
Uncertainties
©Septentrion Strategic Solutions Ltd.
At the outside of the project:
• Project definition
• Operations and Maintenance
• Sales / Marketing
• Relationships with outside groups
• Ensuring adequate manpower and resources
• Ensuring adequate flow of fund
At the inside of the project:
• Realizing the desired project definition (adequate scope and budget,
quality parameters, etc.)
• Creating the project organization (organizational structure,
contractual relationships, information management, control
procedures, etc)
• Mitigating external disruptions from the environment (e.g.: timely
acquisition of material, handling relationships with unions, obtaining
regulatory approvals, informing management of financial needs)
• Logistics (e.g.: project facilities, transportation, communications, etc)
8. Understanding Interfaces – Traditional Approach
Uncertainties
©Septentrion Strategic Solutions Ltd.
Time Direction
Some Traditional Classifications of Interfaces:
Analyze project / organizations based on their configuration
• Internal / external
• Organizational, contractual and physical (focus on construction projects)
• Human / Technical
• Tangible / Intangible – Hard / Soft
Problems:
• Room for ambiguity promotes silo-based behaviors conflicts emerge
based on territoriality / positioning
• Difficulty in adapting to changes associated to:
&
9. Understanding Interfaces – Contingency Theory Approach
Uncertainties
©Septentrion Strategic Solutions Ltd.
Contingency School of Organization
(Organizational Theory + Project Management)
Considers 1-the nature of interrelationships in the project and 2- time:
Pooled Sequential Reciprocal
Classification
Static Interfaces
Dynamic Interfaces
Group
10. Understanding Interfaces – Static Interfaces
Uncertainties
©Septentrion Strategic Solutions Ltd.
Static Interface: Relationship between permanent subgroups basic project
structure
A project relies on at least 3 subgroups:
Pooled Interdependence Resources are shared / Matrix Organization
Project
Direction
Project
Management
Functional
Management
Planning and
Control
Area 1 Area 2 Area 3 Engineering SCM CM Estimation Cost control Scheduling ReportingHSE
Coordination Mechanisms: Policies, plans, procedures
Etc.
11. Understanding Interfaces – Dynamic Interfaces
Uncertainties
©Septentrion Strategic Solutions Ltd.
Dynamic Interface: Relationship depends on how the project develops
It considers two elements:
project lifecycle
the pattern of activity interdependence
Sequential Interdependence Stakeholders follow
each other
Example of coordination mechanisms: Schedule
Reciprocal Interdependence Stakeholders must continuously interact
Cyclical nature – units performance is mutually dependent
Require lots of horizontal coordination
Rely on personal contact
Example: SCM & Engineering:
SCM depends on engineering to understand what to buy.
Engineering depends on SCM to continue the design based on the market availability
12. Understanding Interfaces – Dynamic Interfaces (Cont.)
Uncertainties
©Septentrion Strategic Solutions Ltd.
Group Interdependence Results and knowledge are built
upon progressive interactions of the stakeholders
• convergent in nature
• Relies on Personal contact
Example of coordination mechanisms: Scheduled and
unscheduled group Meetings
Pooled + Sequential + Reciprocal
FEL-1 ExecutionFEL-3 Operations
Detailed
Engineering Construction CSU
FEL-2
Pooled + Sequential +
Reciprocal + Group
Predominant Interrelations during Development and Execution
13. Why is it essential to identify and control project interfaces?
Uncertainties
©Septentrion Strategic Solutions Ltd.
E=3
Imax = 3
E=5
Imax = 10
E=10
Imax = 45
E=20
Imax = 190
Imax =
𝑬 ∗(𝑬−𝟏)
𝟐
Project Complexity = f (interacting parts, uncertainty)
Project complexity increases with amount of interfaces!!!
Possible amount of Interactions (Imax) as a function of Project Elements (E):
14. Why is it essential to identify and control project interfaces?
Uncertainties
©Septentrion Strategic Solutions Ltd.
15. Elements to Consider when Managing Project Interfaces
Uncertainties
©Septentrion Strategic Solutions Ltd.
Keep static interfaces clearly defined
Define and agree all static subsystems (technical definition, organization, project infrastructure, etc.)
Dynamic interfaces are the most important ones the clock is ticking!!!
Early subsystems have a managerial dominance over subsequent ones (E.g. Design over Construction)
Errors in early subsystems have a snowball effect in the subsequent ones
Level of control will vary depending on the stage of the project
Personnel issues (conflicts, leadership, etc) will evolve and need to be moderated considering project
phase
Planning must be incremental
Building bases for the next phase
Details added as project advances
Major changes require their own distinctive Total Management
Changing project phases is a major event and needs to be treated as such!
Remember:
The Main Challenge in Interface
Management is Human Interactions
16. Interface Management Processes using the PMI framework
Uncertainties
©Septentrion Strategic Solutions Ltd.
Interface management must follow a lifecycle approach, with well
defined processes
Initiating /
Identification
Planning Execution Closing
Monitoring & Control
17. Interface Initiation
Uncertainties
©Septentrion Strategic Solutions Ltd.
Objective: Interfaces are identified and interface management overall
strategy is defined based on the characteristics of the project
Appointment of the Interface Manager & Interface Coordinators
Establishment of an official definition of interface in the project
Interface identification based on Project Basic documents (Bulk identification)
• Project Work Breakdown Structure (WBS)
• Contracts
• Specifications
• Interviews
Quantify interfaces & preliminary identify risks
• Creation of the Interface Responsibility Matrix (IRM)
Draft Interface Management Plan identification and coordination of static and
dynamic interfaces
18. Interface Planning
Uncertainties
©Septentrion Strategic Solutions Ltd.
Objective: Refine interfaces information, allocate to corresponding parties
and determine communication protocols
• Refinement of the Interface Responsibility Matrix (as design is more
advanced) eliminate unnecessary interfaces / identify new ones
• Allocation of interfaces into work packages
• Incorporation of interfaces in the project schedule (first pass)
• Integrate to schedule logic future interface agreements
• Finalization of the Interface Management Plan, including:
• Define project interfaces & Interface lifecycle
• Define Interface Management organization
• Identify / define documents to capture interfaces in all ambits (e.g.:
communications plan, RACI matrix, BLTs, etc.)
• Define Conflict resolution process
• Define Monitoring & control strategy (tools, frequency, details, etc)
Warning!!
***Interface management plan should be part of contractual
documents***
19. Interface Execution
Uncertainties
©Septentrion Strategic Solutions Ltd.
Objective: Formal transfer of the interface to the appropriate parties
and drive them to closure
• Creation of formal Interface Documents
• Obtain full commitment from interfaced parties
• Align interfaces with a specific project activities / integrate them to the
schedule
Example: Interrelation Supplier S1 & constr. Contractor 1
(project Execution phase)
21. Interface Closure
Uncertainties
©Septentrion Strategic Solutions Ltd.
Objective: satisfy all requirements of the interface as indicated in the
Interface document.
Information provided on time and in the format agreed
Interface document closed interface ceases to exist
Subsequent activities continue
22. Interfaces Monitoring and Control
Uncertainties
©Septentrion Strategic Solutions Ltd.
Objective: Ensure a continuous visibility of the interface / enhance its
timely resolution
Monitoring starts as soon as an interface is identified
• The monitoring and control strategy will depend on the size and
complexity of the project
• Interface register
Leading indicators (e.g.: look ahead) combined with lagging indicators
(performance of the interfaces)
Warning: In large projects, specialized software may be necessary to
integrate and optimize interfaces. It is very difficult to rely on
conventional tools (e.g.: MS Excel, Access, etc.):
• Interfaces can be significant (e.g. a $10B project can easily have over
5,000 interfaces)
• High potential for changes as project advances scope reallocations,
planning adjustments, start-up strategies, etc.
23. Interface Monitoring & Control
Uncertainties
©Septentrion Strategic Solutions Ltd.
Example of Interface Management Monitoring & Controlling Strategy in
a large project
Report Generation
Project Schedule
Dynamic IA Reporting
(look-ahead)
Overdue
Overdue in
Less than x
days
Overdue in
> x days
Closed
IA generation Tool
24. Case Study: Oil Sands Mega Project
Uncertainties
©Septentrion Strategic Solutions Ltd.
Project: 120,000 bbld Production Facility
Location: Northern Alberta
• 3 Main EPC Contractors
• 6 Fabrication and Construction Contractors
• Engineering and Module Fabrication in
multiple locations within in 3 continents
Initial Estimate (end of FEL3): $4B (2008)
Interim Estimate (30% Construction): ~$7B (2012)
TIC: over $12B (2015)
What Happened??
25. Case Study: Oil Sands Mega Project (Cont.)
Uncertainties
©Septentrion Strategic Solutions Ltd.
The Promise: An Innovative & Efficient Interface
Management System
Interface Management Team was assembled during FEL-3
o Interface Manager
o Interface Coordinators allocated to different project areas
Module of Planning Software adapted to manage interfaces:
o Friendly user interface for Interface Agreement creation
o Easy integration of IAs with the schedule
Interface management team identified all interfaces prior detailed
engineering design phase
o Interface Responsibility Matrix
o Interface Coordinators estimated and created initial Interface
Agreements
Interface Management Plan created and approved the end of FEL-3
26. Case Study: Oil Sands Mega Project (Cont.)
Uncertainties
©Septentrion Strategic Solutions Ltd.
The Reality:
Interface Management strategy and plan not fully included in contract
documents
IM process was rolled-out to contractors after contract award
Insufficient contractual provisions for IM in sub-contractors and consultants
(logistics, support, personnel)
Contractors added change orders with additional fees associated to risks management
Different attitudes / reactions towards IM (especially LS contactors)
Weak Governance
IM function managed by Engineering Consultant involved in the design with
“oversight” support from client Conflict of Interests
Interfaces negotiated by client in silos contracts awarded in different times
Problems in enforcing IAs Engineering Consultant managing Interfaces did not
have any contractual leverage over other consultant or construction companies
27. Case Study: Oil Sands Mega Project (Cont.)
Uncertainties
©Septentrion Strategic Solutions Ltd.
The Reality:
Issues with the IM Management Tool
The modified tool was a prototype
Module is originally designed for Contract Management, not capable to
manage with multiple interrelations
Poor support from software provider / insufficient IT Scope definition
Reports had to be manually generated by 1 super user (bottleneck) relying
on Excel tools (Macros)
Interface Coordinators (Project Engineers with no experience in facilitation/
courses delivery) became trainers for contractors designated personnel
Neglected management of Dynamic Interfaces
Only Engineering and Construction interfaces were visible to the IM Team
No jurisdiction of IM team over client internal processes
Interfaces with external stakeholders poorly managed:
Multiple issues with regulators and Government
Key fabrication & transportation strategy had to be modified
28. Case Study: Oil Sands Mega Project (Cont.)
Uncertainties
©Septentrion Strategic Solutions Ltd.
The Reality:
Deficient project integration
Different contract architectures different performance and progress metrics
IAs were never linked to the schedule
Project has multiple schedules from each consultant / contractor
Integrated schedule never produced
Deficient Conflict Management Strategy
High turnover in IM team due to conflicts with client and sub-contractors
Conflict Management process was designed and implemented late in the project
IM function removed from engineering consultant and transferred to competitor
in the project
Organizational Deficiencies
IM seen with different levels of importance in the project “Power struggles”
Inadequate legitimization: IM seen as an “interference” in the Project
29. The devil is in the details
Final Considerations – Key takeaways
Uncertainties
©Septentrion Strategic Solutions Ltd.
Early identification is critical for the success of an interface
Traditional approaches based on project configuration are insufficient to identify and
manage interfaces
Identify and understand interdependences: Clearly define static interfaces & Manage
Dynamic Interfaces
Each interface needs to be managed by tangible mechanisms
Interface management strategy needs to be adapted to the size and complexity of the
project
Large projects require specific interface Management Strategies
Do not neglect a lifecycle approach to manage interfaces Select a framework and adapt
it to the characteristics of your project!!
Implement a clear governance for interface Management across the project and the
organization
And always Remember:
Interfaces
31. For more information about strategies to unlock value in your organization or projects,
visit us at:
www.septentrioncanada.com
©Septentrion Strategic Solutions Ltd.
Septentrion Management Capsules ®
Ideas to unlock value and enhance competitiveness in your organization