Vico in digital environment

Abstract

In a project Management environment a tool is an aid that can help the project team to effectively manage different task or activities. These activities can be in some ways be related to some of the PMBOK subject groups; Integration, stakeholder, scope, recourses, time, cost, risk, quality and procurement.

Some tools have a computer software, in this case VICO is a construction-oriented software that can be used in a digital environment and can help the project manager to perform different task or activities in a construction project.

This article will describe how procurement can be undertaken in a digital environment compared with the traditional ways of procurement described in the PMBOK. How VICO as a digital tool can be used in the digital project environment aligned with PMBOK subject groups within procurement.

First a short introduction on the construction industry and how the industry are being digitalized, and why this has an effect on the way we are planning our construction projects. Then the big idea behind the theory of Project procurement management aligned with the PMBOK, and what the project manager should apply to ensure a good harmony between buyer and supplier. Afterwards the application on how this can be done by using computer software as VICO. At last the limitations with critical reflection will be done upon the topic.

Introduction

As the present situation is in the building industry, there is an ongoing tendency that the building project are getting more complex, this results in more detailed project descriptions from the building owner. This have created a big desire for trying and move the industry to a 100 % digital environment, where all buildings are constructed directly from the 3D model. I the light of the governments growth package from 2002 “vækst med Vilje” was the construction industry on the agenda. The purpose was to create a higher productivity I the construction industry by moving towards a 100 % digital building environment.

But to be able to manage these highly complex building projects and building it 100 % digital from the 3D model, it is necessary for the project team to have a software tool that can help organize and manage the increased flow of information and degree of details.

When doing procurement on a building project. The contractor have to deliver a payment plan over the project. To do that the contractor traditionally sits down and calculate the amount of quantities within the different building task eg. A column. This will then be compare with the schedule to know when the building objects should be produced from the supplier and send to the construction site, to ensure that the object are delivered on time.

But as the payment plan and main schedule are made before the project are in the construction phase, this will often result in the payment plan and main schedule will be revised a certain number of times. In the construction industry project modifications is estimated to almost 10% . of the total building cost. Therefore it is highly necessary that the project team have a tool that can help creating new procurement when there is a project modification.

Big idea

Project procurement management handles the different processes that are highly important for the organisation to conduct when buying products or services that are necessary to deliver the desired result. As shown in figure 1 project procurement management can be divided into four processes that ensure a good procurement management between the buyers and suppliers of the project. Each of the four processes have a number of inputs, tools and techniques and a output. This will be explained in the following.

Figure 1: Project procurement management processes .

Plan procurement

The first process in procurement management is the planning part. This process includes the documentation of different purchasing decision, the planned approach, and the beginning of identifying several possible suppliers.

Input Scope baseline this gives a basic understanding on the specific requirements and criteria for the given project. Requirements documentation shall include which criteria's there have been discussed through the planning of the project. Teaming Agreements sets the boundaries for the arrangements between the parts in the project. This will help decide the roles between the building owner and the supplier. Risk register involves information associated to the identified risks which leads to the next input. Risk contract decision here the parts shall make different contracts including aspects such as insurance, this ensure each project team know their responsibilities. Activity resource requirements here the project team shall include individual requirements for the task. Project schedule here the project team shall include the time schedule for the construction, this will ensure that object is bought, produced and delivered on time. Activity cost estimates this is done for the project team to be able to evaluate the different solutions given from the suppliers. Cost performance baseline this together with the time schedule makes it possible for the project team to get overview of the present planned budget through the construction period. Enterprise environmental factors is focusing on the surrounding conditions, such as products that are available, how the supplier have performed in earlier construction project. This ensure a reliable supplier and makes sure that the given object is on the market at the needed time. Organisational process assets will ensure that if the organization itself, have a policy or guidelines that must be followed. If this is not the situation there can be created systems based on earlier projects.