U. S. Navy Demonstration Project (Archived)

RT-022 Topic Summary
RT 022


CII and the Naval Facilities Engineering Command (NAVFAC) conducted a study “for the purpose of demonstrating innovative managerial and technological principles developed by CII. The primary objective of the study was to assess the validity and applicability of selected CII principles.”

There were six principles from CII that were chosen for the study and analysis. The following areas were included:

  • Project Objectives
  • Scope Definition
  • Design Effectiveness
  • Team Building
  • Constructability
  • Materials Management

The first three were implemented during the design phase. The latter three were targeted for implementation during the construction phase only.

The results of the study were positive, showing that all six implemented principles were rated as significant to very significant in their effect on project performance. The two most beneficial principles included Materials Management and Team Building. Project Objectives and Scope Definition were the two CII principles found most difficult to effectively implement. However, the real "value added" from this research is a broadened demonstration of the effectiveness of CII principles in the context of real and often difficult organizational constraints.

A secondary benefit of this study was the analysis of the implementation of change within a large organization. While the “change order performance” on this job was “mediocre,” lessons were learned that a demonstration project can be an effective way to attempt change within a large and established organization. In particular, governmental agencies and their contractors will benefit from the added insight into the implementation of innovative project management practices. 

Key Findings and Implementation Tools

1 : Organizational Structure

US Navy Organization Structure as a Model for Organizations – The US Navy is a “large and established organization” where change can be difficult to implement. The design and construction entities of the US Navy function similar to other engineering and construction projects. (RR22-11, p. 23)
Reference: (RR22-11)

2 : Project Study Selection

SIMA (Shore Intermediate Maintenance Activity) Portsmouth was ultimately selected due to its larger estimated cost and the repeatable nature of this project type. Both NAVFAC and the task force believed that this type of project offered a high likelihood for future application of study findings. NAVFAC classifies a SIMA project as a high-priority and high-risk project; high priority because the SIMA must be on-stream to receive repairs scheduled to arrive shortly after the project Beneficial. Details on the project description can be found in the research. (RR22-11, p. 26)
Reference: (RR22-11)

3 : Success Factors

One of the principles that must be heeded for successful implementation is that any program must be tailored to fit the particular needs of the organization. Success stems from taking the best from others and tailoring it to your needs. (RR22-11, p. 34)

Keys to success:

  • Top Level Commitment
  • Champions
  • Empowerment
  • Performance Benchmarking
  • Training
  • Formal Measurement and Evaluation Program
  • Extensive Documentation
  • Try not to implement too many changes at once
Reference: (RR22-11)

4 : CII Principles - New Tactics for Project Management 

This research goes through the following subjects and shows the lessons learned from the project using CII principles: (RR22-11, p. 51)

  1. Project Objectives
  2. Team Building - Partnering
  3. Scope Definition  
  4. Design Effectiveness
  5. Constructability
  6. Materials Management

Reference: (RR22-11)

5 : Conclusion

Project was a success. While the SIMA Portsmouth project was not without its problems, and while its cost performance based upon facility and equipment installation contracts was worse than the two other SIMA projects with comparable data, the project is still considered to be very successful for a variety of reasons, including: (RR22-11 p. 122)

  1. Project Objectives were met
  2. Cost Performance was excellent
  3. Schedule Performance was excellent

All six implemented principles were rated as significant to very significant in their effect on project performance. The two most beneficial principles, as assessed by the project team members include Materials Management and Team Building.

In addition the research provided specific recommendations to the Navy in these 4 areas with details provided in the research report.

  1. Policy and Strategy
  2. Planning and Design
  3. Construction
  4. Installation of Equipment

Reference: (RR22-11)

6 : Implementation Tool #1

RR22-11, Project Execution Plan Outline

Provides an outline to follow for project execution in the following areas: (RR22-11, Appendix C)

  • Purpose
  • Scope of Work
  • Project Objectives
  • Project Team
  • Project Organization
  • Basis for Design
  • Contracting Strategy
  • Project Schedule
  • Project Budget
  • Design
  • Constructability
  • Material Control
  • Construction
  • Start-up/Commissioning
Reference: (RR22-11)

Key Performance Indicators

Improved cost, Improved schedule, Reduced change

Research Publications

Navy Demonstration Project: Testbed for Selected CII Principles - RR22-11

Publication Date: 12/1995 Type: Research Report Pages: 198 Status: Archived Tool