Summary ISPE COP PM event October 15th 2015
Best Practice Project Delivery & Procurement
On October 15th, 2015 the third ISPE PMCOP seminar took place. The theme of this third seminar was ‘Best practices project delivery & procurement’. Five professionals out of the life science industry shared their knowledge and best practices about various subjects of the ISPE project management manual related to project delivery and procurement with their peers. MSD Animal Health Boxmeer was the location sponsor and hosted the event for the 70 visitors. The combination of excellent location facilities and delicious catering provided for a more than perfect ambiance for valuable networking. Above all a round tour over the 170.000m2 MSD Biosciences Center Boxmeer, including a look inside various factories and laboratories, was a real icing on the cake experience.
Martin van Collenburg (Director Operational Services, MSD AH in Boxmeer) opened the event with a very interesting company story. MSD was founded in 1851. The Dutch roots found their origin in 1949 with Nobiles, later sold to AKZO. Today MSD, Merck in de US and Canada, is a $42 billion company with 70.000 employees.
The Animal Health division represents with 8.500 employees approx. 8% of the earnings. The headquarters are located in New Jersey. Animal Health focuses on five different species: ruminants, poultry, companion animal, aquaculture and swine, is present in over 140 countries world wide and shares 15% of the global market. In Boxmeer 1400 employees are adding value to the manufacturing & supply chain operations, R&D and international activities.
Roel Maas (Senior Cost Estimator & Controller, Tebodin Bilfinger in Eindhoven) presented the Bilfinger stage gate model and elaborated on what makes cost estimating different for pharmaceutical companies. Cost estimations contribute to the funding strategy and support management decisions. The stage gate methodology consists of different project cost estimation methods that can be applied during different phases of a project definition process (different completion percentage) with different information goals in mind. Roel also gave a more than interesting consideration about how accuracy, allowances and contingency relate to cost estimates.
Richard Laroes (Senior Project Manager, Adryan Consultants in Dordrecht) made us aware of the importance of good communication and having a robust communication plan in place. Good communication can aid project management and provide benefits, e.g., a team that is more responsive to changes and proactive decision making due to a more inclusive environment. It can also reduce project risk. The communication plan should be defined in stage 3 ‘project delivery planning’. A communication plan starts with identifying the key stakeholders and prioritising them in relation to interest in and impact on the project. The priority determines the frequency and means of communication with the respective stakeholder.
Cathal Farrelly (Group Engineering Manager, DPS Engineering in Ireland) gave us a very structured and more than useful overview of the Design Planning and Delivery process. He started with a picture of the 6 stages of the project life cycle: feasibility, conceptual development, project delivery planning, design, implementation and close-out. For each stage the added value was explained as well the concrete deliverables categorized in: process, architectural, mechanical, installation/ electronica and automation. The major deliverables of the stage ‘project delivery planning’ are: Approved project execution plan, Project Risk Analysis, Approved Procurement & Contract plans, Constructability Plan, Completed cGMP review, Preliminary C&Q project plan and more. The design phase is divided in three parts: 45% - 70% - 90% defined.
Kevin Carlin (Projects Procurement Leader, MSD AH in Ireland) gave us a Masterclass in Project Procurement. Procurement is the project vehicle to ensure that due commercial management of the supply chain helps deliver cost effectiveness and value to a project via well developed, clear and coherent processes as outlined and championed by ISPE. Generally based on: Cost, Capability and trust. Collectively the Client and the Supply Chain should not expect perfection but work collectively to ensure progression in the development of our procurement practices. The procurement processes are set up to bring the most comprehensive execution approach, with the best team, at the most cost effective solution. We should all be successful in a project.
The presentations from the event are attached for download.