CONTACTS 
0201 - A. R. Construction Company           415 656 2800
020101 - Mr. Ronald Arana; President
020102 - aramet@aol.com
0202 - A. R. Construction Company           415 656 2800
020201 - Mrs. Sylvia Arana; Office Manager
020202 - sarana2199@aol.com
0203 - A. R. Construction Company           415 656 2800
020301 - Mr. Wes NLN; Estimator
020302 - Estimating Department
0204 - A. R. Construction Company           415 656 2800
020401 - Mr. Patrick Heffernan
020402 - Project Manager
020403 - patheff@jps.net
020404 - Construction Operations

SUBJECTS
Inquiries

0403 -    ..
0404 - Summary/Objective
0405 -
040501 - Follow up ref SDS 15 0000, ref SDS 14 0000.
040502 -
040503 - Met ARC's team, including Sylvia, Pat, Jacki, Wes and Mel.  Reviewed
040504 - planning issues for the new project.  Explained Communication Metrics,
040505 - and the SDS program.  Ronald showed an office he feels can support my
040506 - work at ARC.  He wants to meet on Monday to discuss terms of
040507 - engagement.  Sylvia provided the name and phone number for the firm
040508 - that supports ARC's computer systems.
040509 -
040510 - Submitted ref DIT 1 0001 linked to this record, copy to Pat, per his
040511 - request for an example of SDS. ref SDS 0 2065
040512 -
040513 - Linked to discussion on 990915 showing cooperation at Kaiser Medical,
040514 - on using Com Metrics. ref SDS 13 2255
040515 -
040516 -    [On 991019 met with Ronald to review scope of services. ref SDS 18
040517 -    0001]
040518 -
040519 -    [On 991019 Pat sent letter on why City needs to be contacted about
040520 -    supporting Com Metrics. ref SDS 19 0001]
040521 -
040522 -
040523 -
0406 -
0407 -
0408 - Discussion
0409 -
040901 -  ..
040902 - Preliminary Planning Issues to Launch Reservoir Project
040903 -
040904 - Follow up ref SDS 15 2673, ref SDS 14 2189.
040905 -
040906 - Reviewed initial planning scope for ARC's new project, per Ronald's
040907 - request yesterday. ref SDS 15 4033
040908 -
040909 - Submitted USACE Communication Metrics report, ref DRP 1 6172, which
040910 - shows Construction Launch Planning in the scope of services as
040911 - checkpoint 1. ref DRP 1 4480
040912 -
040913 - There is an example of a CPM for Construction Launch planning in
040914 - appendix E.
040915 -
040916 - Ronald wants to meet on Monday about specific terms for Welch support.
040917 -
040918 -     [On 991018 called Ronald to follow up. ref SDS 16 0001]
040919 - ..
040920 - Discussed following preliminary planning...
040921 -
040922 -
040923 -     1.  Project Management Plan
040924 -
040925 -         Goals, objectives and scope
040926 -
040927 -            Ronald, Pat and Rod - Pat review, Ronald approve
040928 -         ..
040929 -         Organization
040930 -
040931 -            Ronald and Rod, Pat review and comment
040932 -
040933 -            Develop organization chart showing structure of
040934 -            relationships within ARC, the City, the Engineer, subs and
040935 -            related agencies, per example submitted to Ronald on
040936 -            991014. ref SDS 15 0499
040937 -
040938 -            Ronald has reviewed examples, which are, also, shown in
040939 -            appendix E of the Com Metrics report issued by U.S. Army
040940 -            Corps of Engineers.
040941 -
040942 -         ..
040943 -         Automation Plan
040944 -
040945 -            Rod, Pat review and comment, Ronald approve
040946 -
040947 -            Goal is to use the Internet to support what is commonly
040948 -            called...
040949 -
040950 -                              Enterprise Management
040951 -
040952 -            ...also...
040953 -
040954 -                              Virtual Office
040955 -
040956 -            This is easy to say, but difficult to accomplish with
040957 -            conventional tools, as reported in the record on 980613.
040958 -            ref SDS 9 0526   Communication Metrics provides a possible
040959 -            solution, as evidenced by this record.  The payoff is
040960 -            significant, if effective communication can be achieved.
040961 -
040962 -            Ronald showed Pat's office on the first floor that has a
040963 -            computer and a fax machine, which is a typical "equipment"
040964 -            configuration on prior projects, reflecting industry-wide
040965 -            practice.
040966 -
040967 -            Ronald recalled analysis in the record of our meeting on
040968 -            991013 for two new computers, and DSL. ref SDS 14 1612
040969 -
040970 -            Cost for two systems will be about $3K.  Actually two
040971 -            systems may be needed for the project office at the site,
040972 -            one for the PM and one for a secretary, if one is used; so
040973 -            that might be another $3K.  Possibly some of ARC's existing
040974 -            systems can be used, but usually the time and effort to
040975 -            configure an exist systems, exceeds the cost of a new one.
040976 -
040977 -            Rod needs 2 - 3 days to configure these systems.
040978 -
040979 -            We may be able to avoid any initial computer acquisition
040980 -            expense, if Rod works from his office and simply delivers
040981 -            content via Internet, since that only requires a web
040982 -            browser, which is an industry standard.
040983 -
040984 -            Reliable Internet access is essential.
040985 -
040986 -            DSL costs vary like cell phone pricing.  Some vendors have
040987 -            recently quoted as low as $40 per month.  On 981018
040988 -            Mountain Computer quoted $175 per month, so prices have
040989 -            dropped the past year. ref SDS 10 4456
040990 -            ..
040991 -            Ronald recalled last year requesting automation
040992 -            support using the Internet, as proposed by Communication
040993 -            Metrics criteria.  On 960410 General Hatch explained
040994 -            similar frustrations when IBM was unable to understand nor
040995 -            fulfill goals set by the U.S. Army Corps of Engineers to
040996 -            automate their management processes. ref SDS 6 5577
040997 -            Applying technology to help "management" is very difficult
040998 -            because managing is primarily a complex "intelligence"
040999 -            function. ref OF 1 5884  Everyone has been disappointed by
041000 -            lack of progress using technology to improve management, as
041001 -            related on 980206 reviewing IBM's gambit with "Business
041002 -            Intelligence." ref SDS 8 2716  Ronald related discussions
041003 -            yesterday that a lucky hunch led him to click for the
041004 -            Welch resume on the Internet, after initially rejecting the
041005 -            idea since everybody these days submits resumes by fax.
041006 -            ref SDS 15 4823  So, it takes luck to discover that better
041007 -            results come from improving methods everybody is using,
041008 -            rather than follow accepted paths.
041009 -
041010 -            Pat advised that the LAN system ARC installed last year is
041011 -            a precursor to using the Internet.  He noted the benefit of
041012 -            faster access on the Internet using DSL or similar high
041013 -            speed access for supporting the pace of daily management,
041014 -            as we plan to do.
041015 -
041016 -            Ronald requested an estimate of cost for the automation
041017 -            plan to review on Monday.
041018 -
041019 -            Rod will contact ARC's computer consultant to discuss the
041020 -            existing system.  Sylvia gave the number for...
041021 -
041022 -
041023 -                              Yves Barbero
041024 -                              Computer Consulting
041025 -                              415 285 4358
041026 -
041027 -
041028 -              [On 991018 called Yves and set meeting for 991021,
041029 -              ref SDS 17 0001, obtaining pricing from Pac Bell.
041030 -              ref SDS 17 0710]
041031 -
041032 -            ..
041033 -            Rod needs to visit with City Engineer before 991025
041034 -            meeting, to develop planning for raising Com Metrics at the
041035 -            meeting, per planning below. ref SDS 0 5796  We want to get
041036 -            a feel for receptiveness.  Early notice is generally
041037 -            effective, rather than "springing" the ideas on new people
041038 -            at a formal meeting.
041039 -
041040 -            This is set out in the letter to Ronald. ref DIT 1 0875
041041 -
041042 -             [On 991019 Pat sent a letter asking about advantage of
041043 -             early discussios with City. ref SDS 19 4940]
041044 -
041045 -             [On 991020 Ronald raised this matter. ref SDS 20 3224]
041046 -
041047 -             [On 991021 City might defray all or part of cost to create
041048 -             HTML construction management forms. ref SDS 21 6468]
041049 -         ..
041050 -         Facilities Plan
041051 -
041052 -            Pat, Superintendent, Ronald
041053 -
041054 -            Need to get requirements from contract, and inquire about
041055 -            special needs at meeting on 991025. ref SDS 0 2993
041056 -
041057 -            Need to coordinate with subs on their yard needs, in laying
041058 -            out contractor facilities at the site.
041059 -
041060 -         Communication Plan
041061 -
041062 -            COs
041063 -            COPs
041064 -            RFIs
041065 -            Submittals
041066 -
041067 -               Pat and Rod can review existing procedures, develop
041068 -               integration with SDS and HTML for approval by Ronald.
041069 -
041070 -         Organic Subject Structure
041071 -
041072 -               Rod will develop this SDS control criteria.
041073 -
041074 -         Safety Planning
041075 -
041076 -         Environmental Plan
041077 -
041078 -         Partnering
041079 -
041080 -               Partnering may be part of the project, and if so this
041081 -               needs review for effective application.
041082 -
041083 -
041084 -     2.  Buy-outs and Budgets
041085 -
041086 -         a.  Plans and specs online
041087 -
041088 -             Rod and ARC staff
041089 -
041090 -             Will try to develop at least the specs from the Engineer
041091 -             in a preliminary meeting, per ref SDS 0 3630.
041092 -
041093 -         b.  Budget online
041094 -
041095 -             Rod and ARC staff
041096 -
041097 -         c.  Contacts online
041098 -
041099 -             Rod and ARC staff
041100 -
041101 -         d.  Review plans and specs
041102 -
041103 -             Rod
041104 -
041105 -         e.  Review budget (estimate file)
041106 -
041107 -             1.  Preliminary meeting with estimators.
041108 -
041109 -                 Rod
041110 -
041111 -                 Wes drove me home after the meeting.  He explained
041112 -                 that Mel does the quantity take-off, and his figures
041113 -                 are entered by Wes into an Excel spreadsheet that
041114 -                 calculates the prices.
041115 -                 ..
041116 -             2.  Need list of all potential issues that are
041117 -                 known.
041118 -
041119 -                 Ronald wants a careful review of subcontracts,
041120 -                 particularly on piling, which may provide an
041121 -                 opportunity to save about $100K in forming costs
041122 -                 duplicated under another scope of work.
041123 -
041124 -                 Ronald, estimators
041125 -
041126 -             3.  Preliminary meetings with key subs
041127 -
041128 -                 Rod, estimators, Ronald
041129 -
041130 -             4.  Develop specific targets of opportunity.
041131 -
041132 -                 Rod, Ronald approve
041133 -
041134 -         e.  Obtain opinion from counsel on review of subcontract
041135 -             form.
041136 -
041137 -             Rod and Ronald
041138 -
041139 -         f.  Continue buy-outs
041140 -
041141 -             Estimators, Rod, Ronald
041142 -
041143 -
041144 -         ..
041145 -     3.  Hire superintendent
041146 -
041147 -         Ronald and Rod
041148 -
041149 -         Since the second meeting with the City has not yet been
041150 -         established, other than a target period for the week of
041151 -         991119, Ronald estimates the date for start of construction
041152 -         will occur OA 991215.
041153 -
041154 -         Superintendent should attend meeting on 991025, however,
041155 -         may not be active until OA 991110.
041156 -
041157 -            [On 991019 Ronald is meeting with Superintendent
041158 -            candidates. ref SDS 18 3465]
041159 -
041160 -     4.  CPM Planning
041161 -
041162 -         WBS
041163 -
041164 -             Rod, Pat review, Ronald Approve
041165 -
041166 -         Pay Estimate Schedule
041167 -
041168 -             Rod, Pat review, Ronald Approve
041169 -
041170 -             Since this is an engineering bid, the pay estimate
041171 -             requires less planning, but there may some definitional
041172 -             and scope issues to develop.
041173 -
041174 -         Schedule
041175 -
041176 -             Superintendent, Rod, Pat Review, Ronald Approve
041177 -
041178 -
041179 -         ..
041180 -     5.  Meeting on 991025 1430
041181 -
041182 -         During the meeting today, Ronald read a letter from the City
041183 -         that sets the date of this meeting.
041184 -
041185 -         [Push, Pull, Prod, Probe for opportunities and constraints]
041186 -
041187 -         Introduce project manager, superintendent and major players
041188 -         from Engineer and Owner's team, per scope of services for
041189 -         Richmond. ref DRP 1 4480
041190 -
041191 -            Submit USACE report on Com Metrics
041192 -
041193 -         Submit initial project management plan.
041194 -         ..
041195 -         Facilities Planning
041196 -
041197 -             Special needs of City, Engineer, ref SDS 0 4785
041198 -         ..
041199 -         Communication
041200 -
041201 -             Rod will try to visit with key people in advance of
041202 -             meeting on 991025, per PM Plan. ref SDS 0 3630
041203 -
041204 -             Special needs/requirements of City, Engineer
041205 -
041206 -             Communication Metrics - explain goals
041207 -
041208 -                  Submit Corps of Engineers report to explain Welch
041209 -                  credentials, ref DRP 1 6172, and scope of services.
041210 -                  ref DRP 1 4929
041211 -
041212 -                  Common Administration, from 990328. ref SDS 12 9641
041213 -
041214 -                  Virtual Office needs email and computer files for...
041215 -
041216 -                     Forms - Welch create in HTML
041217 -
041218 -                     Specs and other information.
041219 -
041220 -                     Submittals - difficult because subs have greater
041221 -                     variety in use of computers.
041222 -
041223 -                  Transition Issues
041224 -
041225 -                     One foot in manual and one foot in automated
041226 -                     world
041227 -
041228 -
041229 -     6.  Meeting week of 991119 - date to be confirmed by City
041230 -
041231 -         Introduce subcontractors
041232 -
041233 -         Submit RFIs
041234 -
041235 -         Pay Estimate Review
041236 -
041237 -            This is not that big an item because this is a pay item
041238 -            project.
041239 -
041240 -            During the meeting today, we reviewed ARC's bid, except it
041241 -            did not have mobilization.
041242 -
041243 -            Need to review contract for rate of payout on mobilization.
041244 -            Often 80% is paid out early, and the last 20% is held until
041245 -            notice of completion.
041246 -
041247 -         Project Management plan review...
041248 -
041249 -            1.  Automation plan
041250 -
041251 -            2.  Organization plan
041252 -
041253 -            3.  Communication plan and submittal schedule
041254 -
041255 -            4.  CPM Schedule
041256 -
041257 -            5.  Facilities
041258 -
041259 -                Office
041260 -                Utilities
041261 -                Equipment
041262 -                Furnishings
041263 -
041264 -            6.  Safety Planning
041265 -
041266 -            7.  Environmental Planning
041267 -
041268 -
041269 -     7.  Notice to Proceed
041270 -
041271 -         Buy-outs complete
041272 -
041273 -         CPM
041274 -
041275 -         Meet Subcontractor Key players
041276 -
041277 -            Owners, GM, Design people, Field staff
041278 -
041279 -         Mobilize
041280 -
041281 -            Facilities planning, finalize with Engineer, Subs
041282 -
041283 -
041284 -
041285 -
041286 -
0413 -

SUBJECTS
SDS Explanation
Technology Applied to Management, POIMS

0605 -   ..
060501 - Explain Welch methods...
060502 - 
060503 - Used ideas from meeting with Intel on 970728, ref SDS 7 3002, to
060504 - explain Com Metrics, per meeting with Ronald on 991013. ref SDS 14
060505 - 2176
060506 -
060507 - Simple concept is...
060508 -
060509 -
060510 -                Plan the work and work the plan! ref SDS 0 1111
060511 -
060512 -
060513 -  ..
060514 - Knowledge Space a New Paradigm for a New Age
060515 -
060516 - I drew a graph on the marking board showing how technology integrates
060517 - management tasks essential for effective leadership, as set out in the
060518 - explanation of Intelligence in the POIMS paper. ref OF 1 6011
060519 -
060520 - Civilization, business and government are transitioning from a manual
060521 - world to an automated world.  Historically, information from the time
060522 - of Gutenberg's printing press has used information in finite sets
060523 - called books, magazines, letters, memos, that have a beginning and an
060524 - end.  The human mind synthesizes the connections between these
060525 - discrete sets of information.  Technology now makes it possible to
060526 - support human intelligence by converting into alternate forms for
060527 - planning and reporting.  This provides a continuous "knowledge stream"
060528 - that contains the connections of cause and effect.
060529 -
060530 - I drew a time line illustrating this concept.
060531 -
060532 -
060533 - Projects are comprised of "Subjects" (also "categories"):
060534 -
060535 -             Objectives                People
060536 -             Requirements              Organizations
060537 -             Scope                     Policies
060538 -             Schedules                 Procedures
060539 -             Budgets                   Physical Objects
060540 -             Contracts                 Operations
060541 -
060542 -     ...from analysis of cost/benefit on 970726. ref SDS 14 6639.
060543 -
060544 -         [On 001219 steps using SDS new way of working. ref SDS 22 QT6F
060545 -
060546 - These "subjects" cause a constant stream of information. Over time the
060547 - number of subjects explode into thousands of sub-structures that must
060548 - be remembered along with a huge volume of information.  The mind
060549 - buffers, i.e., suppresses, the complexity by summarizing details so
060550 - that people are not overwhelmed.  But summary causes mistakes under
060551 - "Murphy's Law," due to mental blind spots, per analysis on 940609.
060552 - ref SDS 1 0020  Henry Kissinger characterizes the resulting
060553 - environment as Alice in Wonderland, also on 940609. ref SDS 2 4238
060554 -
060555 -
060556 -           Schedule Diary System (SDS)
060557 -
060558 -              Supplements cost and schedule control
060559 -
060560 -              "Audit trail," traceability to original sources called
060561 -              out in ISO Project Management requirements reviewed on
060562 -              950721. ref SDS 5 1740
060563 -
060564 -              Automated integration of time and information
060565 -
060566 -              Plan, Perform, Report, ref OF 1 6649
060567 -
060568 -              Plan, Do, Study, Act - Deming. ref OF 1 0336
060569 -              ..
060570 -              Ronald noted that Command and Control of the record
060571 -              can reduce mistakes that cause claims, and it reduces the
060572 -              time and cost of dispute resoluton, as related in POIMS.
060573 -              ref OF 1 1113
060574 -
060575 -                [On 991019 example occurred when ARC's superintendent
060576 -                quit unexpectedly. ref SDS 18 0660]
060577 -              ..
060578 -              Pat requested an example using SDS.  He gave his
060579 -              email address...
060580 -
060581 -
060582 -                              patheff@jps.net
060583 -
060584 -
060585 -              ...submitted copy of ref DIT 1 0001 linked to this
060586 -              record, which shows how the planning agenda we reviewed
060587 -              today, is converted into a Diary record of what was
060588 -              accomplished.  This Diary record is then used to plan
060589 -              follow up tasks that are linked back to his record,
060590 -              showing alignment with objectives, requirements and
060591 -              commitments.  See again POIMS. ref OF 1 6649
060592 -
060593 -              Pat noted that automated management using the Internet
060594 -              for organization and delivery of daily details is the
060595 -              direction of the future.  Common descriptions for this
060596 -              goal are...
060597 -
060598 -
060599 -                            Enterprise Management
060600 -
060601 -
060602 -                            Business Intelligence
060603 -
060604 -
060605 -               ..
060606 -              CPM - Pat asked how it relaetes to SDS "schedule"
060607 -
060608 -                 SDS is a micro planning and reporting process for
060609 -                 implementing day-to-day macro planning guided by CPM,
060610 -                 PERT and CSCS/C methods.
060611 -
060612 -                 CPM and cost control are for "planning" the work.
060613 -
060614 -                 SDS is for "working" the plan by adding "metrics" to
060615 -                 communication, as explained on 950202. ref SDS 4 0333
060616 -
060617 -
060618 -
060619 -
060620 -           POIMS,
060621 -
060622 -              Plan, Organize, Integrate and Measure, ref OF 1
060623 -
060624 -              This paper explains the technology and concepts for the
060625 -              SDS program.
060626 -
060627 -              Ronald advised he read the record on 991013 which has a
060628 -              link to POIMS. ref SDS 14 1488
060629 -
060630 -
060631 -           Communication Metrics
060632 -
060633 -              This is a management science that is supported by SDS
060634 -              and POIMS, as explained in the paper...
060635 -
060636 -
060637 -                       New World Order Needs Old Time Religion
060638 -
060639 -
060640 -              Leadership is the critical ingredient, as discussed with
060641 -              Ronald on 991013, ref SDS 14 3664, and explained in the
060642 -              NWO... paper. ref OF 3 5654
060643 -
060644 -              Typical day scenario on implementation. ref OF 2 3066
060645 -              ..
060646 -              Pat asked how the record is maintained daily?
060647 -
060648 -                 Our plan is to segment daily site management from
060649 -                 Project Management, per ideas Ronald layed out in our
060650 -                 meeting on 991013. ref SDS 14 3068
060651 -
060652 -         [On 001219 steps using SDS new way of working. ref SDS 22 QT6F
060653 -
060654 -                 The project manager has an analytical and planning
060655 -                 role; the superintendent implements planning
060656 -                 day-to-day on the job.
060657 -
060658 -                 The Project Manager supports the superintendent using
060659 -                 SDS.  This effort will be experimental as related to
060660 -                 Ronald on 991013.  We will discover how well it works
060661 -                 during the ramp up to start of construction.
060662 -                 ref SDS 14 0341
060663 -                 ..
060664 -                 Com Metrics can be viewed as "hiring a new
060665 -                 executive" in the middle of things.  The new executive
060666 -                 cannot learn everything that has gone on before, but
060667 -                 gradually picks up what is important for current and
060668 -                 future operations.  So, SDS does not have to contain
060669 -                 "everything" in order to add value to the management
060670 -                 team and improve earnings, per the record on 941004.
060671 -                 ref SDS 3 0785
060672 -
060673 -                 The basic plan is to capture a level of detail that is
060674 -                 doable, rather than try to "get everything," under the
060675 -                 theory that some "intelligence" is better than none,
060676 -                 as defined in POIMS. ref OF 1 0582
060677 -
060678 -              Pat asked about transitioning him and others to provide
060679 -              Internet content using SDS?
060680 -
060681 -                 People who use Communication Metrics on the Internet,
060682 -                 learn the basic concepts merely by observing the
060683 -                 record and the process over time.  This drives desire
060684 -                 to learn how to use SDS for generating content.
060685 -
060686 -                 Welch can transition people gradually to accomplish
060687 -                 various rudimentary functions, like using the Schedule
060688 -                 and identifying Actoin Items.  More sophisticated
060689 -                 features for linking, developing structure in the
060690 -                 diary, and formulating an organic subject structure
060691 -                 can be acquired at the users pace as the need arises.
060692 -                 ..
060693 -              Scanning documents received - Pat asked about this.
060694 -
060695 -                 General transition to email reduces need for scanning.
060696 -
060697 -                 We plan to request computer files on contracts, specs
060698 -                 and so on from the City and Engineer at the meeting on
060699 -                 991025. ref SDS 0 3630
060700 -
060701 -                 Some scanning will be needed, but it is very time
060702 -                 consuming because of the variety in quality of printed
060703 -                 material that makes the initial scan files full of
060704 -                 errors that have to be corrected manually. So we want
060705 -                 to minimize scanning.
060706 -
060707 -
060708 -
060709 -  ..
060710 -
060711 -
060712 -
060713 -
060714 -
060715 -
060716 -
060717 -
060718 -
0608 -