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Insights into the ideas and innovations that are transforming project planning and delivery

Customer Success in the Spotlight at Oracle Construction and Engineering Event

For the hundreds of project delivery professionals who gathered recently at the Oracle Future of Projects event, one topic clearly was top of mind: the role of digital transformation in driving significant gains in productivity for construction and engineering organizations.

At the event, held April 24 in Washington, D.C., Oracle Construction and Engineering customers and numerous thought leaders gathered to hear views into ways to improve outcomes in project delivery – as well as inspiring success stories from several organizations that have made transformation central to their mission.

McKinsey & Company on the productivity opportunity

The most powerful lever the industry has to boost productivity significantly is digitization, according to José Luis Blanco Álvarez, a partner at McKinsey & Company who spoke the event. McKinsey sees potential to increase productivity in the sector by 50-60%, and there are steps we can take today to make a real difference.

“The key to successful implementation of a digital strategy is data transparency and leadership commitment to collaboration,” he explained.

Oracle customers participating in the event eagerly shared how they have implemented these principles to help transform project delivery. Their results include: faster completion, lower costs, elevated safety, and better overall project outcomes – and they’re just getting started.

Ready for takeoff: San Francisco International Airport (SFO)

The infrastructure investment conversation – which started with the keynote session– continued with presentations about how technology and process innovation are merging to advance two major airport initiatives.

The San Francisco International Airport (SFO) Terminal 1 redevelopment project is a model for collaboration. Austin Commercial, one of the largest, most diversified builders in the United States, shared how the project team has created physical and virtual collaborative environments to successfully deliver this complex project.

From the “Big Room,” a converted airplane hangar where the entire team works, to an integrated project delivery (IPD) contract style and cloud-based cross organization software solutions – collaboration and transparency permeate every aspect of this project.

The team uses Oracle Construction and Engineering solutions – including Oracle Aconex and Oracle Textura Payment Management Cloud Service – to create a single source of truth.

The results are compelling, according to Kent Derusha project director, SFO Terminal 1 New Boarding Area B, Austin Commercial, and Mike Schulz, project controls manager, SFO Terminal 1 New Boarding Area B, Austin Commercial, and include:

  • 75% less time spent tracking and reporting on RFIs and submittals
  • Faster, more up-to-date reporting
  • One project resource driving document control for an $800 million project
  • Centralized compliance
  • Two-day turnaround on payments to trades and suppliers
  • Payment applications to the owner, which used to take four to five days, now are almost instantaneous, enabling Austin to be the first submission to the owner each month.
  • Without Oracle Textura Payment Management, it would take four people to manage pay applications on this project; with the collaboration solution, it takes one person about half of their time.

Lima Airport: Delivering a key infrastructure project

Lima Airport is on a journey to become a state-of-the-art Latin American transportation hub. Lima Airport Partners (LAP) is embracing modern collaborative technology and contracting styles to deliver the airport expansion project. This megaproject is significant to Peru’s future because it will more than double the current capacity of the Lima airport.

Consulting with other significant airport projects has been part of LAP’s journey; they are modeling their own collaborative environment after SFO.

The team relied on their proven capabilities of helping successfully deliver large infrastructure projects. Armando Sanchez, project manager for project controls and IT for Lima Airport Partners, shared how Oracle solutions are helping to ensure transparency and control across a diverse team.

“Oracle’s Primavera Unifier and Oracle Aconex are our gifts to the airport – our legacy to support the ongoing operations of the airport,” said Sanchez.

Lean on me: McCarthy advances integration of CPM and Lean

Lean methodologies increasingly factor into efforts to improve project performance, and for good reason. Leveraging Lean practices and principles can save an average of 10% on total project cost, according to the Lean Construction Institute.

With dozens of major projects in the works at any time, McCarthy Building Companies wanted a better way to plan, schedule staff and tasks, and maintain transparency into critical path method (CPM) and Lean schedules.

McCarthy Construction is relying on Lean as a standard part of their work. Oracle Prime Projects and its Lean Task Management functionality is key to these efforts. The group has worked collaboratively with Oracle in developing the solution, which digitizes and integrates the Last Planner System into the master schedule.

Avoiding the double work that can arise when Lean and CPM co-exist in an organization was an important consideration, according to Jason Duncan, director of planning and scheduling, McCarthy Building Companies Southwest.

The team also emphasized the user experience. “The sticky note concept has to stay intact even with a digital solution,” Duncan said. The touch screen and app virtualize the process of placing a note on a virtual wall.

Interested in more insights from Oracle Future of Projects? Check out another post, in which we explore some of the innovation-focused discussions, including a panel of AEC innovation leaders examining how they keep their organizations on the cutting edge.

Explore how you can deliver project success with Oracle Construction and Engineering.

 

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