2. 1 A Member of the Team Focus Group Integrated Management Systems Industry View 2 Michael Thompson BSc (Eng), FFICE, MCIWEM Roe Thompson Limited

3. RTL 2 What is Integrated Management? 4 The intents of Integrated Management are –to improve delivery of the specified product to the customer –to improve communication to the man at the sharp end –to remove duplication of paperwork arising from operating separate management systems which actually have a lot in common. 4 We cannot ignore the close affiliation of these intents with those of the Partnering approach.

4. RTL 3 What is Integrated Management? 4 These intents can be achieved in a Project through the Partnering or Team approach by setting up, to all intents and purposes, a Single Organisation which can draw from the several organisations involved 4 Better control of the Project and the finished product can be attained 4 Some of the annual performance targets, suggested by Sir John Egan in “Rethinking Construction” (July 1998), can be approached 4 We will get ever closer to the concepts of “Best Practice”

5. RTL 4 “Rethinking Construction” ANNUAL PERFORMANCE TARGETS

6. RTL 5 What is Best Practice? 4 There is no single definition for Best Practice. 4 One definition: –It is the achievement of all the goals laid down by a Project Team (including the Client) for the final product, by consideration of the best techniques of procurement, contract strategy, quality assurance and good supply management.

7. RTL 6 Can we do things better? 4 When we look back, could we have done better with our projects? 4 Even with the Partnering / Team approach could we have done better? 4 Should we not strive for 100% in “Excellent”? 4 Would not then Best Practice be achieved?

8. RTL 7 Case History: Pennington WwTW 4 Four organisations, working together without walls between them: –Client:- Southern Water –Project Manager:- Montgomery Watson –Designer:- McDowells –Contractor:- Birse Construction

9. RTL 8 The Challenge 4 Build a brand new sewage treatment works from outline design on a “green field” site within 21 months and within budget 4 Undertake the earthworks during the worst period of the year!.

10. RTL 9 A Quick Start 4 The Project started on 24 July 1995 4 The Team Building Workshop took place on 31 July 1995 and a Charter agreed and signed 4 The Value Management Workshop commenced on 2 August 1995 4 A firm outline design was in place within 10 days.

11. RTL 10 Alliance Charter The Charter 4 Mission Statement “Our project objectives are to deliver the scheme to the desired quality and levels of service at the lowest life- cycle cost and highest value, on time and with no surprises to the satisfaction of all Partnering Team Organisations”

12. RTL 11 The Pennington Organisation Independent of the Pennington Team was a firm of Quantity Surveyors auditing expenditure, using the Contractor’s cost files.

13. RTL 12 Value Management 4 The Team underwent an intensive VM workshop phase within the first three weeks of scheme commencement 4 This developed an optimum outline design 4 The Client’s Operations personnel signed up to the Team’s outline design on completion of the VM workshop

14. RTL 13 V M Cost Comparisons Preferred option - Scenario 5

15. RTL 14 The Programme Advantage Typical comparison: 4 Partnering (Integrated Management) - 21 months 4 D&C - 26 months 4 Conventional - 30 months Savings in time  Savings in cost Design and Construct Conventional Partnering

16. RTL 15 4 The foundation of the Integrated Management System, the Control Plan (Project Management Plan) addressed all aspects of the Scheme 4 It linked to the Plans of all four parties in the Partnership The Pennington Contol Plan

17. RTL 16 Principal Issues Addressed 4 The Partnership and its “Arrangement” 4 Contracts 4 Quality Systems and Procedures 4 Safety (incl. CDM) 4 Environment 4 Programme 4 Variation orders 4 Reporting 4 Design 4 Procurement 4 Manufacture 4 Construction 4 Installation 4 Commissioning 4 Performance Testing 4 H&S File (inc. O&M) 4 Successes & Lessons Learnt

18. RTL 17 The Filing System 4 A Single Filing System for all to use. 4 No letters between partners, but confirmation memos 4 Other files between Contractor and Sub- contractors also accessible 4 Everything auditable.

19. RTL 18 Some Pennington Successes 4 Rapid establishment of the design with confidence through Value Management processes 4 Effective Risk Management relating to Planning Permission and Discharge Consent 4 Design and construction taking place concurrently 4 Rapid appointment of sub- contractors 4 Self supervision of construction works (TQM approach) 4 Joint planning with Operations the testing and commissioning of the Plant 4 Fast resolution of earthworks problems

20. RTL 19 Pennington - Conclusion 4 Completed and commissioned 2 weeks early 4 Completed £700,000 within budget 4 Self-supervised - quality excellent! 4 Good Health & Safety record 4 Environmental constraints observed 4 But in retrospect, we are sure that we could have done better!

21. RTL 20 Where to next? 4 Hundreds of Project Teams are being formed annually, adopting the Partnering Approach with Integrated Management 4 Many of these are producing successful projects 4 But remarkably the approach is still very new for a good many in the construction industry 4 More and more need to understand the benefits that can be achieved through the approach, particularly at a senior level.