Level of Integration of Risk Breakdown Structure (RBS) and Work Breakdown Structure (WBS) for effective Risk Monitoring and Control in Construction Industry of Karachi.

Kamran Rahat

ALLAH’O AKBAR

In the Name of (ALMIGHTY) ALLAH,

the Most BENEFICIENT

AND MERCIFUL

Kamran Rahat

ABOUT PRESENTER

Kamran RahatMBA-University of KarachiME-Project Management & Construction-NED University BE-Civil-NED University

Partner/Project Manager at Aluco-Glass Systems (www.aluco-glass.webs.com) Partner/Projects Manager at PrimeWork-Englitz Collaborative

(www.primework-englitz.webs.com) Cells: 0345-8114486, 0315-9222848   Direct Tel: 92-21-38455508  Email: [email protected] URL: www.kamranrahat.webs.com

Kamran Rahat

ABOUT PRESENTER The Author has years of experience in the field of Project

Management, Construction Management and Business Management/Research.

The Author has conducted several Independent Researches for Construction/Contracting Companies and other Business Organizations in order to identify the problems, improve their productivity and preparing SOPs.

This Risk Management Research was done for some Construction Business and only contains that useful data which is not confidential.

Organizations/Individuals in need of Research/Consulting for Performance Improvement and Profitability may contact this Author.

Kamran Rahat

TITTLE OF RESEARCH REPORT

Level of Integration of Risk Breakdown Structure (RBS) and Work Breakdown Structure (WBS) for effective Risk Monitoring and Control in Construction Industry of Karachi.

Kamran Rahat

INTRODUCTION/OVERVIEW Construction Projects are initiated in

dynamic and complex environment. High degree of uncertainty always poses

different types of risks. Risk Identification often produces nothing

more than a long list of risks which can be hard to understand and manage. But it does not provide any insight into the structure of risk on the project.

Kamran Rahat

LITERATURE REVIEW

Following the concept of the Work Breakdown Structure, the Risk Breakdown Structure (RBS) provides a means for the project manager and risk manager to structuring the risks being addressed.

RBS could be considered as a "a hierarchically organized depiction of the identified project risks arranged by risk category."

Kamran Rahat

LITERATURE REVIEW

It is common for stakeholders to misunderstand to whom each risk is allocated and the degree of control that can be exerted over all facets of the risk.

So there is a need for a structured approach to risk identification and management that considers a comprehensive list of risk events i.e RBS and it’s integration with WBS.

Kamran Rahat

REASERCH GAP Absence of Research with particular

reference to Construction Industry of Karachi. Even if one exists, this author is unable to find the same.

Research Papers and Articles precisely do not explain how to integrate RBS with WBS.

Adequate method to implement Seamless coordination b/w PKPs is not present.

How to address Conflicting Objectives of PKPs is not suggested in previous research.

Kamran Rahat

OBJECTIVE OF RESEARCH

-Study of the Practice of Making Risk Breakdown Structure (RBS) and Making Risk Register (RR) by Key Project Players in Construction.

-Finding out the level of integration of Risk Breakdown Structure (RBS) with that of Work Breakdown Structure (WBS).

-Making a RBS and WBS Integration Model in the light of findings.

Kamran Rahat

RESEARCH QUESTIONS

- How RBS and RR (Risk register) made by Project Key Players in Construction?

- How much RBS and WBS are integrated?

- Is their any possibility of making an Integrated RBS-WBS Model?

Kamran Rahat

RESEARCH METHODLOGY Qualitative Approach is used. Simple

statistics is used for analysis, interpretation and result.

Secondary Data: Published Sources like Research Papers, Articles and Books.

Primary Data: Developing questionnaires, getting them filled by concerned professionals and interpreting the result using various tools.

Kamran Rahat

RESEARCH METHODLOGY Targeted Number of Questionnaires to be getting

filled=40 Targeted Categories are Client, Project Manager,

Structural Engineer, Architect and Contractor. Each Category sent 08 Questionnaires. (Ratio= 20%)

Number of Duly Filled-in Questionnaires Returned=27 (Ratio=67.5%)

Returned Questionnaires Rejected=02 (7.4%) Valid Returned Questionnaires=25 (62.5%) Clients 20%, Project Manager 20%, Structural

Engineer 20%, Architect 16%, Contractor 24%.

Kamran Rahat

KEY FINDINGS & CONCLUSION

WBS and RBS are not made by approximately half of the companies at Minute Level.

The Risk Exposure Level of Clients and Contractors come out to be 64% and 36% respectively

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KEY FINDINGS & CONCLUSION

Companies/Professional under focus agree that Construction Projects are exposed to External and Internal Risk Factors.

Identification, Breakdown & Incorporation of these Risk Factors in early Planning Stage help in making good Risk Response Planning mechanism.

Breaking down the Categories of these Risks mentioned at highly minute level is necessary for their integration with WBS

Kamran Rahat

KEY FINDINGS & CONCLUSION

Making WBS in highly minute level is essential for its proper integration with RBS.

Project Key Players (PKPs) have conflicting/differing objectives about Risk and they always try to shift their own risks to other Players.

Kamran Rahat

KEY FINDINGS & CONCLUSION

Early Involvement of Project Key Players (EIPKP) is always helpful in identifying, assessing and managing Project Risks, whereas Full Scale Early Involvement (FSEI) of all PKPs seems to be quite difficult.

Kamran Rahat

KEY FINDINGS & CONCLUSION

Project Key Players (PKPs) are reluctant for FSEI. Reasons for this reluctance come out to be lack of assurance about their formal hiring in project at early stage, PKPs treating one another as Competitor, PKPs striving to win a Turnkey Contract and Traditional Separation of Design & Construction.

Kamran Rahat

KEY FINDINGS & CONCLUSION

More than half of the population under study believes that the Best way to secure FSEI of PKPs is their formal hiring only up to Comprehensive Feasibility Stage.

Remaining population understudy prefer formal hiring of all PKPs by Client Project Management Team (CPMT) in Initial Stage without Bidding and Hiring of a Design-Builder to overcome the Requirement of FSEI of PKPs.

Kamran Rahat

KEY FINDINGS & CONCLUSION

Alternative to FSEI of PKPs come out to be either an Extraordinary Capable Client PM Team or a Design-Builder firm.

Kamran Rahat

KEY FINDINGS & CONCLUSION To ensure Integration of RBS & WBS for

effective Risk Monitoring & Control, CPMT must develop three things in the priority of their sequence. First one is “Customized Integrated RBS-WBS Model” (CIRWM). Second one is “Integrated Coding Protocol Mechanism” (ICPM) (Coding of all RBS and WBS Elements at Highly Minute Level and their Mutual Integration). And third one is “Integrated Collective Risk Register” (ICRR) (Combined Risk Register for all PKPs with relevant details for every one).

Kamran Rahat

RECOMMENDATIONS

Make WBS at Highly Minute Level Client and Contractor must develop

effective Risk Management System Risk Register must be prepared. RBS must be made at Highly Minute

Level All PKPs must incorporate all External

and Internal Risk factors

Kamran Rahat

RECOMMENDATIONS Identify, Breakdown & Incorporate all

Internal and External Risk Factors in early Planning Stage

Break down the Categories of Internal and External Risks at highly minute level

Make WBS at highly minute level All PKPs must be vigilant enough not to

take unnecessary Risk of other PKPs Ensure Early Involvement of PKPs

Kamran Rahat

RECOMMENDATIONS Make strategies to overcome the problem

of FSEI of PKPs. Make written assurances to concerned PKPs

about their formal hiring in project. To secure Full Scale Early Involvement

(FSEI) of PKPs, hire all PKPs up to comprehensive feasibility stage, especially the Contractor who is mostly ignored after receiving its advice/feedback on constructability matters.

Kamran Rahat

RECOMMENDATIONS

Client Project Management Team (CPMT) must be capable enough so that FSEI of PKPs may be avoided. Alternatively in case of absence of CPMT, Client must hire services of a Project Management Consultants. Another good option may be hiring a Design-Builder Company.

Kamran Rahat

RECOMMENDATIONS

CPMT must develop “Customized Integrated RBS-WBS Model” (CIRWM), Integrated Coding Protocol Mechanism (ICPM) and Integrated Collective Risk Register (ICRR) for ensuring Integration of RBS & WBS for effective monitoring & control.

Kamran Rahat

RECOMMENDATIONS

Role of Contractor as Constructability Advisor (RCACA) is essential to avoid most of the Technical and Administrative risks.

Kamran Rahat

IMPLICATION OF RESEARCH

This Research study has some good implications for construction industry of Karachi despite its small scope. This can be helpful in creating more and more awareness about integrating RBS with WBS thereby minimizing the adverse impacts of risks on construction projects.

Kamran Rahat

FUTURE RESEARCH

Future Research may be directed towards developing “Customized Integrated RBS-WBS Model” (CIRWM), Integrated Coding Protocol Mechanism (ICPM) and Integrated Collective Risk Register (ICRR).

Another Study may be done on means of ensuring Full Scale Early Involvement (FSEI) of Project Key Players (PKPs).

Another Study may be conducted on Due Risk Sharing Mechanism (DRSM) by PKPs.

Kamran Rahat

The End

Thanks

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