Project Overview
The project of the New Royal Adelaide Hospital is a public-private partnership project (Sharma & Bindal, 2014). This is the largest infrastructure project which is undertaken by the government of Australia in the healthcare sector. The project agreement has been done in between State Government and SA Health Partnership Pty Ltd. After the completion the New Royal Adelaide Hospital will be able to provide a total number of 800 beds in the hospital, single inpatient rooms which will be standardized, total 40 numbers of technical suits, emerging technology to ensure the efficiency of the supply chain and electronically tagged clinical equipment and biomedical equipment (Christopher, 2016). The main importance of this project is that it will be able to improve the sustainable healthcare system to the public of Southern Australia. To complete the project on time, the State Government has done some arrangements which can be considered as the lifecycle of the project. These stages are the organizational structure of the project and project governance, assurance process, planning for business, risk management, financial management, contract management and the procurement stage. At the time of the report, the project is currently going through a critical phase. In this stage the major construction of the project has been done and also the development and the design part is about to be completed. Thus in this stage, the focus of the project is changed to the operational services.
The main complexities are associating with the project is that this project is currently running late and it is estimated that the project is currently running in 76 days late schedule. The other complexities associated with the projects is that the health enterprise system is not fully developed yet properly, disputes in the industrial products, insufficient training of the workers and failing to meet the standards of the public-private partnership projects. With the various type of complexity many key issues are also related to this project (Qureshi & Kang, 2015). The risks of the project are assessed on a daily basis by the SA health and based on the risks mitigation strategies are developed for addressing the risks. These risks are the cost pressures, inadequate delivery, inadequate management, failing to address sustainable model development.
Currently, the project is running through a critical phase of the life cycle of the project (Kolesn?kov et al., 2016). In the present environment, this project is in the design and the construction phase. In this environment, the project is already running late, and the cost of the project rises to $2.1bn dollars.
Challenges Associated with the Project
The main aspects determined of the project organization is the resourcing of the project, the estimated value of the contracts and the procurement budget, determined risks and the mitigate strategy of them, contract establishment and contract management and the project timeliness (Lorenzi & Riley, 2013).
The leadership of the project is an integrated part of the New Royal Adelaide Hospital project. With the perfect leadership strategy, the Operations Board of the New Royal Adelaide Hospital can successfully convert into operational commissioning (Glatthorn et al., 2018).
The governance has a positive impact on the project of the New Royal Adelaide Hospital. The structure of the project governance has been a change in several stages. The governance frame of the project helped to clarify the responsibilities and the accountability of a governance team and the key persons of that team (Muller, 2017). Also, the governance framework can help to establish a new type of Royal Adelaide Hospital program which can cover all the interrelated projects with the main project and thus it can help to accomplish successful operational commissioning.
Effective risk management is required for successful completion of every project (Lam, 2014). The key risks associated with the projects in the aspect of the complexity, cost, resource allocation and the scale of the project. In this project, the public-private partnership project models are used. The main risks of the project occur due to this PPP model (Calabrò & Della Spina, 2014). The main risk related with the project due to the PPP model is the construction risk and the design related risk of the hospital facility. Also, the delays in the project is another risk which has a major impact on the project. Delay in the project can overrun the budget of the cost which can lead the project toward failure (Mydin et al., 2014). Insufficiently trained staffs are another big issue in executing a project perfectly. The project also includes a relocation strategy in which the patients of the old Royal Adelaide Hospital will move to the new Royal Adelaide Hospital. If the relocation happened to be uncoordinated, then it can significantly affect the transitions of the patients and the services.
To maintain the free flow execution of the project this assessed risks must be mitigated with greater concern. To mitigate this issues a proper risk management strategy is required (Stergiopoulos et al., 2015). The basic risk mitigation strategy for every risk is improving the execution of the process involved with the project. The process impartments can help to approve the key changes in the information about the risks and highlights all the changes and present it to the committee. Thus it introduces consistency in the data of the risk information. This detailed information about the risks can help to identify each risk and help to mitigate the risks. The project delay issue can be mitigated by including some additional works which are funded by the state such as the ICT works, infrastructure works and by providing the clinical equipment. The financial related risks can be mitigated by the brief analysis of the project with all of the stakeholders. Also, a specific range needs to be defined limit the total spending of the project. To mitigate risks related to the relocating, regulations of the new place needs to understand. Also, perfect external organization need to be identified which can help in this relocation process.
Risk Assessment and Mitigation Strategies
From the mitigation strategies some possible learnings are assessed which is need of implementation of a proper risk management strategy (Boss & Krauss, 2014). Also, from the project it is learned that the delegation is another way to successfully complete the project, It helps to determine the desired outcomes. The negotiations are a big factor in this type of project management as it helps to increase the values of the project. It is also learned that managing the team is an important factor in the project management.
To implement new risk management strategies changes need to be made in the New RAH steering committee. This committee takes the most important decisions for the organization. Thus the changes need to be done in the strategic advisory team. To implement the delegation, the strategy from the learnings changes need to be made in the operation board of the New Royal Adelaide Hospital. This board develops the integrated program for the project which needs to be modified in this case. To take the negotiations, progress further good relationship needs to be built with the vendors and the clients. The effective team management can be gained by modifying the resources for the project manager.
This project is a process of working the system of the ICT enterprise programs. This helps to identify the detailed plans. A strategic acquisition plan is required to maintain the consistent tactic to procure with the ICT services. This will ensure that effective use of the resources of the project. Also, procurements of the ICT in the context of the new Royal Adelaide Hospital need to be improved.
The common theme for both of the endings is to meet the deadline of the project. This is the very much important case in this case now because the whole project is actually running behind schedule. Also, the project needs to finish with outstanding effectiveness, minimal defects and with the minimum contractual dispute.
From the article, it is assessed that the public-private partnership project is actually a very good process for executing a process successfully (Roehrich, Lewis & George, 2014). In this project of the New Royal Adelaide Hospital the public-private partnership project implemented successfully but for various reasons the execution of the process is not successful enough. The project already goes behind of its schedule, and thus the budget of the project increased. This lead to the financial problem to the Australian economy. The private organization SA Health implemented the structure of governance to execute the project properly. From the brief description of the project, it is assessed that this governance structure helped to improve the project execution (Harrison & Lock, 2017). In this case, the project risk management risk was the most important factor. The SA Health properly assessed the project and given some recommendation for the project.
Learning from the Project
From the detail revision of the New Royal Adelaide Hospital project and from some external sources some best practices of procurement management is assessed. The important and effective practices are the governing supply chain establishment, staff and supply chain alignment. With these practices, the other important practices which can be implemented are using more technology in the field of the business, alliance establishment with some key suppliers, collaborative strategic sourcing engagement (Coggburn, 2017). Also, to get the utmost efficiency from the project it needs to be focused on the total cost of the ownership but not to focus on the price (Kastanioti et al., 2013). This is another best practice for procurement management.
In the case of the contract management, there are various practices which can be implemented, and this practices can be helpful for managing a project efficiently. The contacts can be effectively stored in the cloud repository. This makes the contracts safe from the external threats (Wiengarten et al., 2016). Automation is a big advantage in the present generation. So implementing the automation system as much as possible helps to manage the project properly. Implementing a performance monitoring system is another best practices which can help to execute a project properly (Vähä et al., 2013).
To deliver a project successfully a procurement manager needs to play some roles in the context of the project. The main role of a procurement manager is to direct the buyers by evaluating the suppliers, interview session with the vendors, supplier agreement negotiation and by managing the contracts of the vendors and the suppliers (Baily, 2017). The procurement manager must be able to monitor the purchase report, delivery report and the spend report to determine the performance of a specific type of goods. Another important role of the procurement manager is hiring new buyers who can improve the execution of the project.
The role of the project manager is the most vital part to execute a project successfully. To execute the project, perfectly some specific roles must be followed by the project manager. The main role of the project manager is implementing standards of the project management in the present project. Also, the project manager needs to manage the production to successfully deliver the project deliverables, manage the risks of the project, configure the process management, maintaining other interdependencies cases on the project, adapting technical services in the project and preparing an active recommendation plan for the project (Martinelli & Milosevic, 2016). This all can ensure the successful delivery of the project.
Best Practices for Procurement Management
In this module, the case study of the New Royal Adelaide Hospital is selected to elaborate the project of the public-private partnership briefly. In this case study, some key aspects of the project are mentioned which are the state-funded works, health IGT services, clinical services, ICT influence and clinical equipment. According to my thoughts, this project successfully established some contractual obligations which helped the state to complete a various number of tasks. From the module, I have understood that contractual arrangements can contaminate the risks associated with the project by the assessment of the pre-existing contamination. The project is already running late at the time of the report, and thus the budget of the project increased. As per my thoughts, the main financial risk which remains in the project is the budget overrun risks. As already the project is running various late type external factors will start pressurizing the project which will dis-balance the project more. Thus the cost of the project will increase more, and the project will be lead to path of the failure. According to me, the project manager should take some initiative to solve the issue now otherwise the project is going to be failed. As per my thoughts, the project manager must be able to determine the critical path for the project. With that, the project manager and the procurement manager must have the capability to manage the risks associated with the project. Also, in the case of the contract management, I think it will be better if the contract manager can negotiate the vendor in a reasonable amount to achieve a successful contract competition. This can increase the net profit of the project thus increasing the value of the project.
References:
Baily, P. (2017). Procurement. In Contracting for Project Management (pp. 105-116). Routledge.
Boss, S., & Krauss, J. (2014). Reinventing project-based learning: Your field guide to real-world projects in the digital age. International Society for Technology in Education.
Calabrò, F., & Della Spina, L. (2014). The public-private partnerships in buildings regeneration: a model appraisal of the benefits and for land value capture. In Advanced Materials Research (Vol. 931, pp. 555-559). Trans Tech Publications.
Christopher, M. (2016). Logistics & supply chain management. Pearson UK.
Coggburn, J. D. (2017). Exploring differences in the American states’ procurement practices. Journal of Public Procurement, 3(1), 3-28.
Glatthorn, A. A., Boschee, F., Whitehead, B. M., & Boschee, B. F. (2018). Curriculum leadership: Strategies for development and implementation. SAGE publications.
Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach. Routledge.
Kastanioti, C., Kontodimopoulos, N., Stasinopoulos, D., Kapetaneas, N., & Polyzos, N. (2013). Public procurement of health technologies in Greece in an era of economic crisis. Health policy, 109(1), 7-13.
Kolesn?kov, ?., Gogunskii, V., Kolesn?kova, K., Lukianov, D., & Olekh, T. (2016). Development of the model of interaction among the project, team of project and project environment in project system. ????????-??????????? ?????? ????????? ??????????, (5 (9)), 20-26.
Lam, J. (2014). Enterprise risk management: from incentives to controls. John Wiley & Sons.
Lorenzi, N. M., & Riley, R. T. (2013). Organizational aspects of health informatics: managing technological change. Springer Science & Business Media.
Martinelli, R. J., & Milosevic, D. Z. (2016). Project management toolbox: tools and techniques for the practicing project manager. John Wiley & Sons.
Muller, R. (2017). Project governance. Routledge.
Mydin, M. O., Sani, N. M., Salim, N. A., & Alias, N. M. (2014). Assessment of Influential Causes of Construction Project Delay in Malaysian Private Housing from Developer’s Viewpoint. In E3S Web of Conferences (Vol. 3, p. 01027). EDP Sciences.
Qureshi, S. M., & Kang, C. (2015). Analysing the organizational factors of project complexity using structural equation modelling. International Journal of Project Management, 33(1), 165-176.
Roehrich, J. K., Lewis, M. A., & George, G. (2014). Are public–private partnerships a healthy option? A systematic literature review. Social Science & Medicine, 113, 110-119.
Sharma, M., & Bindal, A. (2014). Public-Private Partnership. International Journal of Research (IJR), 1(7), 1270-1274.
Stergiopoulos, G., Kotzanikolaou, P., Theocharidou, M., & Gritzalis, D. (2015). Risk mitigation strategies for critical infrastructures based on graph centrality analysis. International Journal of Critical Infrastructure Protection, 10, 34-44.
Vähä, P., Heikkilä, T., Kilpeläinen, P., Järviluoma, M., & Gambao, E. (2013). Extending automation of building construction—Survey on potential sensor technologies and robotic applications. Automation in Construction, 36, 168-178.
Wiengarten, F., Humphreys, P., Gimenez, C., & McIvor, R. (2016). Risk, risk management practices, and the success of supply chain integration. International Journal of Production Economics, 171, 361-370.
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