THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700


S U M M A R Y


DIARY: July 24, 1997 06:37 PM Thursday; Rod Welch

Received response from Ray and Paul on errors in communications.

1...Summary/Objective
2...Management Cost Needs Calculation, Not Percentage of Direct Cost
3...Communication Metrics Needed in Engineering Phase
4...Fast Track - Concurrent Engineering, Cause Delays
5...Errors Have Wider Impact than Critical Path
6...Paul seems to say VDT does not measure the impact of information


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CONTACTS 
0201 - Stanford Const Eng Mngmnt          415 723 3074
020101 - Mr. Ray Levitt, Ph.D.; Professor =415 723 2677
020102 - Construction Engineering & Management Program
0202 - Stanford Const Eng Mngmnt          415 723 3074
020201 - Mr. Paul Teicholz; Integrated Facilities Program =415 723 6486
020202 - Construction Engineering & Management Program

SUBJECTS
Calculate Cost Benefit Level of Effort
PM Cost Percentage Direct Cost
Ambasador for Change
Educational Institutions
VDT, Metrics for Communication
Fast Track, Concurrent Engineering

1208 -    ..
1209 - Summary/Objective
1210 -
121001 - Follow up ref SDS 13 0000, ref SDS 9 0000.
121002 -
121003 - Received response from folks at Stanford indicating interest in
121004 - studying the problem identifying management requirements as a function
121005 - of the work load, rather than a percentage of direct cost.  They say
121006 - VDT cannot do this yet.  I am invited to support their research.  I
121007 - respond indicating willingness to support the research. per ref DIT 1
121008 - 0000
121009 -
121010 -
121011 -
121012 -  ..
1211 -
1212 -
1213 - Progress
1214 -
121401 - Received letter, ref DRT 1 0000 from Ray Levitt.  It is addressed to
121402 - Paul Teicholz, and cites my letter to Ray, ref DIP 2 0000 asking him
121403 - to help nail down the rate of error in communications based on his
121404 - work at Stanford on the Virtual Design Team program.
121405 -
121406 - Ray advises Paul there may be some synergy with Communication Metrics,
121407 - and suggests he contact me, ref DRT 1 9448.  Evidently, this would be
121408 - based on Ray's new company getting a particular assignment.
121409 -
121410 - Received ref DRT 2 0000 from Paul
121411 -
121412 - I showed Paul the SDS program at Stanford in 1990, ref SDS 1 1716. I
121413 - last contacted him in 1996 to get a lead on a speaker for Asilomar
121414 - which led to the contact with Ray, per ref SDS 3 0000.
121415 -
121416 -
121417 -
121418 -  ..
121419 - Management Cost Needs Calculation, Not Percentage of Direct Cost
121420 -
121421 - Paul recognizes that budgeting for the cost of managing a project
121422 - requires more than adding a percentage of direct cost, ref DRT 2 9449,
121423 - per my letter, ref DIP 2 7338, issued on 970723. ref SDS 13 6292.  He
121424 - says they have not developed any ideas yet, ref DRT 2 9451.
121425 -
121426 -
121427 -
121428 -  ..
121429 - Communication Metrics Needed in Engineering Phase
121430 -
121431 - Paul seems to be focusing on the impact that the engineering phase has
121432 - on the management and cost of actual construction, ref DRT 2 7492. My
121433 - experience at the Corps of Engineers seems to support the general
121434 - conclusion that Communication Metrics needs to start in the design
121435 - phase at project inception.
121436 -
121437 -
121438 -  ..
121439 - Fast Track - Concurrent Engineering, Cause Delays
121440 - Errors Have Wider Impact than Critical Path
121441 -
121442 - Paul focuses on the manifestation of communication errors that result
121443 - in contract changes, and considers issues of correlation with critical
121444 - path, ref DRT 2 7498.  He cites the risk of "fast track" called "time
121445 - to market" and concurrent engineering in IT and other industries where
121446 - design is overlapped with construction/fabrication, ref DRT 2 7458,
121447 - that causes stuff to get built before the design is fully developed
121448 - with the result that it doesn't work and takes longer to build.
121449 -
121450 - Concurrent engineering was reviewed on 940103. ref SDS 2 0001
121451 -
121452 -  ..
121453 -
121454 - Paul does not mention the entropy of information problem, explained in
121455 - the Air Force Institute of Technology paper, that leads to entropic
121456 - cost growth reviewed on 970707, ref SDS 7 0108, and the consequent
121457 - impolsion of management using empowerment practices, per the Intel
121458 - paper reviewed on 970710. ref SDS 10 2009
121459 -
121460 -     [On 970729 developed synthses of these ideas. ref SDS 14 6804]
121461 - ..
121462 - Paul seems to say VDT does not measure the impact of information
121463 - flow on management productivity, which was my question. ref DRT 2 9451
121464 - This supplements Ray's presentation to PMI on 960911, ref SDS 6 0200.
121465 -
121466 - Paul asks if I would like to work with them on the problem?
121467 - ref DRT 2 9451.
121468 -
121469 -     [See notice to Corps of Engineers about possible contribution of
121470 -     Stanford's work with VDT program, to CE's study, ref SDS 15 6038.]
121471 -
121472 -     [On 980813 notified Paul about Communication Metrics web site.
121473 -     see, ref SDS 16 0000]
121474 -
121475 -
121476 -
1215 -
1216 -
1217 - 2130 sent email to others
1218 -
121801 - Submitted response to Paul via ref DIT 1 0000.  It explains in a
121802 - little more detail my need for authority on quantifying the rate of
121803 - error in communications.  I suggest the psychology department at
121804 - Stanford may be able to help, ref DIT 1 7993.
121805 -
121806 - Sent Paul's email, ref DRT 2 0000, to following, as illustration of
121807 - the difficulty in "measuring" communication errors.
121808 -
121809 -      Tom Keesling and Max at COE.
121810 -
121811 -         [On 970819 suggested Tom contact Paul about contributing to
121812 -         District study of business systems, ref SDS 15 6038.]
121813 -
121814 -      Morris at Chips
121815 -
121816 -        This follows up my request on 970723 for his stuff from the Cal
121817 -        Tech seminar, ref SDS 13 7399.
121818 -
121819 -      Bill at PG&E
121820 -
121821 -      Max Wideman
121822 -
121823 -
121824 -
1219 -
Distribution. . . . See "CONTACTS"