1. MINIMIZE PROJECT RISK AND COSTS A New Approach to Project Management

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4. Review Session Learning Objectives
How to go from managing to leading the project
The credibility of metrics is crucial to ensure buy-in at all levels of the organization
Alignment of resources, expertise, and company goals ensures success
Case Study Results from both successful and failed projects

5. Introduction - Meet Our Presenter:
DEAN KASHIWAGI
Emeritus Professor, Researcher, and International Consultant
IFMA Fellow, Fulbright Scholar & Professional Engineer
Created a robot and language of metrics to assist FMs
14 year service in USAF
Total of 38 years industry experience
Championed programs to advance the FM profession, and continues to prepare the next generation of FMs

6. How to Minimize Risk: Automate
Identify and utilize expertise [own organization and in supply chain]
Minimize need to speak, think and make decisions
Minimize the use of relationships to resolve issues
Minimize writing or verbal communications because it is not effective or efficient
Minimize all management, direction and control functions

7. McKinsey and Company concluded that of the 2,000 work activities they examined, 45% “could be automated using already demonstrated technology”.

8. Mechanized Agriculture Changes Farming Industry

9. Large Company vs Automation

10. McDonalds Adjust to Wage Increases

11. Driverless Cars

12. Amazon’s New Shipping Facilities

13. London’s Digital Control Tower

14. Phillips Dutch Plant vs. Foxconn Plant in China “Thinking vs
Phillips Dutch Plant vs. Foxconn Plant in China “Thinking vs. No Thinking”

15. Replace Inefficiency with Robots in China

16. Paradigm For Observant People: Increase in Quality of Life [“Win-Win”]

17. What is Important to Think About for CEO?

18. Difficulty in Change
Requires change of paradigm but not changing people
Relationship between professionals and associates
Bureaucracy is in place to stop change
Difficult to see into the future
Proposal: either change or the environment will change and people will feel like they are being controlled

19. Reduce Risk Cut cost by 30% Identify and utilize expertise
Use metrics and allow experts to utilize BV structure instead of relationship based traditional practices
Use BV structure to increase level of expertise
Simplification will reduce stress, be easily understood and increase the value of human life

20. Best Value Approach Structure
Client’s representatives who use BV structure [BV expert]
Structure automates the identification and utilization of expertise
Structure mitigates risk
Win-win [best value for lowest cost]

21. Best Value Approach (BVA) History
25 years [1992]
$17.6M Research Funding
1,900 tests delivering $6.6B of services
98% customer satisfaction
9 countries, 33 states
Minimized % project cost
Increase quality, customer satisfaction and vendor profit
54 Licenses, Most licensed technology developed at ASU [most innovative university for two straight years].

22. Mission: Increase quality of environmental engineering services
Timeline: 1 year
Projects:
Yuma: Air Quality
ASRAC: Water Quality
Brownfields: Waste Management
Executive Team:
Teena Ziegler
Erik Massey

23. Process [creating a list of experts] Become Simpler and Less Expensive
Criteria
% Diff
Traditional
Best Value
Required time to evaluate proposals
- 95%
286 hrs.
13 hrs.
Protests 0%
Avg. Customer Satisfaction of process (1-10)
63% 5 9
ADEQ Administration Cost
- 96%
$ 98,520.00
$ 3,840.00
ADEQ Admin. Cost Savings
$ 94,680.00

24. Case Study [Traditional vs. Best Value]
ADEQ PM Criteria
Pinal County
(Traditional)
Yuma
(Best Value)
Total Cost of Projects
$400K
 $138K
Overall Client Satisfaction
6/10
10/10
Project Duration (days)
730
352
% Total Schedule Deviation
150%
 23%
% Schedule Deviation Due to ADEQ -
23%
% Schedule Deviation Due to Vendor 0%
% Cost deviation
300%
 0.5%*
% of Milestone Deliverables Requiring ADEQ Revisions
100%
% of ADEQ Time Required to Complete Vendor Milestones
50%
 15%
*Deviation caused by unforeseen risk (EPA implementing new requirements)

25. Overall Supply Chain Performance.
No.
Criteria
Traditional
Best Value 1
Total # of projects 35 60 2
Total cost of projects
$5.5M
$5.8M 3
% of projects SOW completed in fiscal year
50%
99% 4
# of ADEQ PMs to manage projects 7 5
Customer satisfaction of vendor performance
6.9/10
8.3/10
*Data was adjusted due to project de-scoping (29 projects, $1.2M (22%), 479 days (4%)
ADEQ PMs increased work capacity by 140%.
Vendors performed 94% more work in 33% less time.
ADEQ customer satisfaction of vendor work increased by up to 30%

26. Best Value PIPS Most Critical Aspects are PM and RM3 2 1
Selection
Clarification
Execution
Pre -Qualification
Award Contract
All Vendors
One Vendor
Differential in capability/expertise
[using nontechnical performance metrics]
Education of vendors
Technical review of scope and vendor plan
Weekly tracking of project deviation.

27. Project Management Procurement
No thinking, no decision making, no changing others, no expecting others to change
RFP / project requirement
Quality based selection methodology
Contracting
Procurement
Project Management
Procurement
Project Planning
Performance measurements
Performance reporting system
Project/Risk Management

28. Which Roof Would You Select?
Company
System
Cost
$ SF
Annual $
Age of Roofs
# of References
Warranty
Contractor #1
BUR
New Roof
$761K
$10.74
$31K
Avg: 2 yrs.
Max: 4 yrs. 3
25 years
[QA]
Reuse existing insulation
$659K
$9.30
$27K
Contractor #2
PVC
$630K
$8.53
$32K 5
20 years
[NDL]
Contractor #3
SPF
$528K
$7.54
Avg: 4 yrs.
Max: 5 yrs.
Surveys: 94
Roof list: 47
High Performance PVC
$504K
$7.19
$26K
Avg: 5 yrs.
Max: 15 yrs. 30
Budget: $560K
Selection committee identifies Contractor #3 HP PVC as the best value and the Contractor #2 PVC option as the two options that will move on to the interview stage due to site compatibility
The BUR option and the SPF option were eliminated due to selection team consideration of site compatibility with the heavier aggregate BUR and the more expensive SPF roof system

29. State of Utah Search Engine Metrics
Past Performance
State of Utah RFP Requirements
Project:
Metrics
Time it takes to find contract on website
1 min 
Customer satisfaction (out of 10)
8.5 
Cost to maintain
$50K 
Time it takes to maintain
1 FTE 
% accuracy in search
 50%
Spend last fiscal year ‘16
 $1.7B
Vendors under contract
811
Vendor reports uploaded each quarter
# of usage reports
 850
# of unique hits on the contract search page/day
 650
# of searchable files for state contracts [excel, word, PDF] 3 
% of information that has to be found manually
 LT 20%
Project:
Metrics
Time it takes to find contract on website
5 min - usually call help desk
Customer satisfaction (out of 10) 5
Cost to install
$50K 
Time it takes to maintain
1 FTE 
% accuracy in search
50%
# of searchable files for state contracts [excel, word, PDF] 1 
% of information that has to be found manually
 50%
Time to install
6 months

30. Ratings and InformationNo
Criteria
Vendor 1
Vendor 5
Vendor 2
Vendor 4
Vendor 3
Best Score 1
Level of Expertise rating
9.0
6.0
5.0 2
Risk Management Plan rating
4.2 3
Value Added rating
7.0
8.0 4
Interview rating
10.0 5
Search Engine rating 6
Cost
$95,000.00
$288,400.00
$195,000.00
$295,000.00
$130,125.00 -

31. Future of FM FM professional will use automated tools
FM associate of the future is the expert who needs to get their expertise through technical training
FM professional and FM associate of the future must be partners in the future
Partnership based on observation and not thinking, decision making and influence

32. Conclusion: Change of Paradigm in the Information Age To Minimize Cost
Best Value Approach (BVA) minimizes the cost of services from 5 to 30 percent
Automation of the mind that will affect both the FM Professional and the FM Associate of the Future
Help people to learn five times as fast and be more consistent and accountable
Increases efficiency, accountability and profit
BVA increases the worth of people
Everyone who has a family can start utilizing the “FM of the Future” concepts

33. FM of Today vs. FM of the Future
FM is a Cost
FM Professional is the technical expert
FM Associate is responds to the expert
FM Professional needs technical certification
FM is in C-Suite and Not a Cost
FM Professional is a leader and CEO who identifies and utilizes expertise [BVA]
FM Associate is the technical expert
FM Associate needs technical certification
FM professional and FM associate are partners
Language of metrics

34. IFMA WWP: Oct 17 - 20 Paradigm shift in 5 different sessions. Date
Time
Session Title
Room
Oct 17
1pm-5pm
Deep Dive 2: Step by Step to Implement
the “FM of the Future” Approach
Convention Center
Oct 19
8am-9am
Digital FM: How to Cut Costs by 30%
While Increasing Quality
332A
4:15pm-5:15pm
Who Wants to Be a Millennial-aire? –
Nurturing in the Young Workforce
332C
Oct 20
Minimize Project Risk and Costs: A New
Approach to Project Management
340A
11:45am-12:45pm
The FM Compass: Roadmap to Leadership

35. Q&A LinkedIn Dkashiwagi1@gmail.com YouTube KSM-inc.com
Jan 15-19, 2018 (Tempe, AZ)
2018 Best Value Certification, Education and Training

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Thank You!
For attending this educational offering at IFMA’s World Workplace
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