There are many project management systems available and many software packages that support those systems. However, software doesn't manage projects; people do. Implementing software packages has training and productivity costs that far exceed licensing fees. When incurring those costs, organizations must ensure that the software is not used to generate data that is incorrect or simply ignored. Data overload occurs when personnel do not have the time to update systems properly. Software then produces outdated and incorrect reports that misdirect management.

Alpha3 focuses its clients on the areas that create the greatest risk of impacting project quality or leading to cost or schedule overruns. Those areas are then managed with consistent attention to ensure that projects are on the right track. Meanwhile, projects are regularly evaluated to assess whether the greatest risks are getting the most attention from managers.

Alpha3 is committed to excellence in capital project management and control. Our consultants draw on years of education, experience, and practical knowledge, and we pride ourselves in delivering successful projects. From the early stages of project planning and development to project completion, Alpha3 not only employs best practices, we help our clients define best practices. We have succeeded when our clients lead their industries in successful capital project execution.

• Power
• Process
• Pharmaceutical
• Manufacturing
• Commercial
• Institutional
• Transportation
• Government

Alpha3 focuses on the establishment of the best management processes for each individual client. Once those processes are implemented, Alpha3 can provide direct management and project controls services and train client personnel to do so.

• Program Management
• Contract Management
• Controls Development
• Budgeting and Cost Tracking
• Planning and Scheduling
• Quality Management
• Project Status Reviews
• Issue/Alternative Analysis
• Project Recovery
• Procurement Management
• Change Control
• Training

There is always room for improvement in capital project execution. No project is executed perfectly, so every project can contribute to the experience base for process improvement. Thus, the first step in management process improvement is to identify problems from past projects. However, in order to reduce the occurrence of those problems, the root cause must be addressed and processes must be changed.

Alpha3 has a four-step approach to management process improvement as follows:

Step 1: Identify - Determine the root causes of project failure.

Example: Projects have experienced schedule and cost impacts due to late delivery of major equipment. Review determines that 80 percent of late deliveries that result in unrecoverable schedule impacts are due to procurement of equipment from sole-source vendors with known order backlogs that are not properly included in project schedules during design development. Contractors bid schedules are overly optimistic based on the belief that the owner's ultimate enforcement of milestone requirements will be unsuccessful if sole-source vendors delay completion.

Step 2: Plan - Develop a system to identify and solve problems timely.

Example: Team with vendors to obtain reasonable delivery forecasts. Discourage over-promising. If a vendor cannot meet its delivery dates reliably, work to identify an alternative vendor. Develop a system to rate vendors based on ability to meet delivery dates, not just price. If a vendor does deliver late, identify the resultant budget and schedule impacts. Develop a system to document cost impacts by tracking costs in a standard system that aligns project elements impacted by late deliveries to the original budget categories. Implement a process to document schedule impacts with a contemporaneous schedule analysis performed according to a standard methodology.

Step 3: Implement - Manage the project based on the planned system.

Example: Review project status reports with project personnel and test the content. Ask about the basis for delivery dates for particular pieces of equipment. When was the last status update from the vendor? Has anyone visited the vendor? Ensure that project personnel understand that management relies on the information in project status reports to make decisions.

Step 4: Evaluate - Measure success over the long term.

Example: Of ten capital projects undertaken in the last five years, seven experienced unrecoverable delays or budget overruns due to the late delivery of major equipment. However, in the last two years, only one project has failed to meet budget or schedule goals for that reason. That failure was the result of a vendor that is now rated behind two alternative vendors in the organization's vendor selection system. The vendor will be used only if there are price advantages sufficient to offset performance risks. Additional contract performance requirements will be implemented in that case.

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