Civil Engineering Reference
In-Depth Information
chain approach. In Figure 10.1 performance management is at the inter-
face of the PMO, which establishes a regime to manage the delivery of
the projects by the contracted supply chains and PSE.
The PMO, PSE and the programme strategy need to be consistent with
one another in order to realise the expected benefi ts of the programme.
Establishing this alignment is often referred to as benefi ts realisation
management.
Purchase and Supplier Engineering and the programme
management offi ce
This chapter shows how an aligned performance management regime
can enhance the value already created by the PSE approach, in particular
the effort expended at pre-contract stage, collecting information on sup-
pliers and their own commitments to deliver the client's values and
priorities written in their own tender submissions. Performance man-
agement reinforces benefi ts realisation management by combining the
programme requirements and procurement objectives with the day-to-
day management of the sub-programmes and projects.
One of the fi rst tasks facing the PMO is to establish a programme
management reporting and assurance structure as early as possible in
the programme life cycle. This creates a governance structure focused
on the client's requirements and the perceived benefi ts of delivering the
programme. These requirements and benefi ts are developed in the early
stages of PSE to become the 'DNA' of the programme, against which
progress is measured and works procured.
Performance management within Purchase and
Supplier Engineering
Performance management needs to be based on both quality manage-
ment and continuous improvement: for example, the DMAIC cycle
based on Defi ne - Measure - Analyse - Improve - Control. The DMAIC
process, illustrated in Figure 10.2, is a problem-solving approach facili-
tating management decision making based on data collected from the
supply chain to eliminate variation in production and the quality of
output.
