Validation system creates confidence in quality management In the interests of improvement of project productivity and effective management, together with successful project execution, Daewoo Engineering & Construction has been making many efforts to develop I-PMS based IT technology since the early 1990s. On the basis of these efforts, the company is carrying out large-sized projects such as pharmaceutical factory construction. In particular, Daewoo Engineering & Construction has achieved construction of a validation system in order to guarantee confidence in quality management that these projects demand. The Korea IT Times spoke with Song Jae-Oh, Executive Managing Director of Daewoo Engineering & Construction about the results of the company has enjoyed in using an IT based construction management system. Q: First off, please explain the current relationship between information technology and the construction industry. How necessary is this relationship A: As one of the oldest industries in the history of mankind, the construction industry changes with society and both evolve in tandem with economic growth. As society becomes more complex so do construction modes and technology. Accordingly, construction contracts have changed from a simple listing of particulars to being turnkey in nature with the implication that the contactor bears the responsibility for the whole of the project. To manage these changes effectively, PM (Project Management) techniques are being developed and applied. The PM, for example, manages projects from cost management to risk control, helps to analyze, systemize, and review the project's outlook too. Such PM techniques allow control without restrictions of time and space through the development of IT. IT is also enabling corporate management to become more transparent. Moreover, investment by domestic construction corporations in informatization is growing annually by 10-20%. They are also establishing informatization systems such as ERP (Enterprise Resource Planning), KMS (Knowledge Management System), PMS (Project Management System), EIS (Executive Information System), and DSS (Decision Support System) to the degree that almost all processes are computerized. The construction industry attaches great importance to the application of informatization in knowledge security, management improvement. Considering the complexity of technical issues, personnel deployment as well as management efficiency, informatization is indispensable and business is gaining positive returns form its application. Evergrowing competition begs ever-more innovative management techniques, and to cope with such rapid market changes effectively, investment in, and development of IT are indispensable. What is common to all the Engineering News Record's (ENR) Global Top 10 enterprises is that they are all leading companies in the plant construction industry and at the same time, have operations that may be analyzed anywhere in the world in real time through the informatization of their processes. Q: Please describe what your company has done in terms of applying ITbased construction business management systems as well as the results you have attained. A: In the interests of project productivity improvement and effective management, and successful project execution, Daewoo Engineering & Construction has made many efforts to develop I-PMS (Integrated Project Management System) based IT Technology since the early 1990s. Vested with this capability, the company is carrying out large-sized projects in the public interest such as pharmaceutical factory construction. In particular, Daewoo Engineering & Construction has developed a validation system to promote confidence in quality management that these sort of projects demand. Starting from tool development within the DOS environment at the beginning of the 1990s, our company has developed and customized systems by purchasing the Artemis process system. With a long-term view to winning turnkey construction orders, Daewoo Engineering & Construction has instituted TFT. When we became involved in atomic energy plant construction in 1995, Daewoo Engineering & Construction integrated Oracle's Database based On-line system. In addition, we have introduced 3D modeling techniques through an investment of roughly 3 billion won and have provided an opportunity to utilize domestic construction information technologies such as intervention check in building CANDU atomic reactors under an agreement with Atomic Energy of Canada, Ltd. (AECL) In the case of 3D systems, we have used equipment from Intergraph 3D and CAD programs from Microstation, both global CAD specialist firms. Furthermore, by contributing to Taiwan's Atomic Agency as a partner in the construction of a database of accumulated information of atomic energy plant construction, we have taken the first steps to commercialize construction knowledge in this field, while at the same time setting a record for Korean atomic energy technology exports. Since then, by virtue of the rapid development of the internet environment since the mid-1990s, we have been able to register and mange construction records, the current status of the plants, etc., by developing all systems necessary for business management in a web-based context. Such efforts have sprung from our PMIS (Project Management Information System) and are now emerging as issues in the construction industry. By being recognized for our technological capability, Daewoo Engineering & Construction has diffused and applied ITbased construction business management technology to clients such as Korea Gas Corporation's Tongyeong LNG receiving terminal. Likewise, Daewoo Engineering & Construction has constructed a system in which an on the spot management is possible in real-time anywhere, whether at home or abroad, by introducing a web-camera system for the first time in a domestic business. Further, by developing an introducing an ERP program in 2002, we have contributed to simplifying our operation as well as becoming more transparent in regard to all construction expenses and transactions. In particular, Daewoo Engineering & Construction has paved the way for a new chapter in the business management field by introducing its 4D system. By engaging web-based VR (Virtual Reality) technology, the 4D system combines the spatial concept of a 3D system plus elements of process management thereby making it possible to monitor all performance relating to a construction project in real-time. The system was developed to offer integrated management information about circumstances surrounding delays anywhere in the world, and is the outcome of integrated business management technology of Daewoo Engineering & Construction married to state of the art technology. By developing such IT-based system, Daewoo Engineering & Construction has received the Excellence Award, under the non-manufacturing section of the 2000 Knowledge Management Grand Prize Competition Rally sponsored by the Korea Economic Daily. Other public acknowledgements that our company has won include a commendation by the Ministry of Construction and Transportation regarding our employment of CALS/EC, the 2004 Grand Prize Award (for the 4D system) from the Ministry of Construction and Transportation and Korea Transportation Safety Authority, and the Grand Prize of the Ministry of Science and Technology. We have also been positively assessed by a number of public institutions, in particular for the application of 4D in a nuclear fusion laboratory. Q: What kind of concerns do you have about IT-based construction management systems A: IT-based construction management systems are a powerful tool in advancing productivity and task efficiency and in strengthening competitiveness in the international construction market. What's more, they are applicable from simple construction projects to those involving the use of high technology. As part of an international trend, larger construction companies as well as small and medium firms are trying to implement informatization systems such as ERP and PMIS, while the services of SI companies are increasingly being called upon to set up IT-based construction management systems. Nevertheless, most of the current systems that have been developed focus on target levels of summarization, classification and simple joint input of data instead of dealing with actual tasks. Accordingly, such information systems reveal only externalities associated with a project and are more likely to be of benefit to upper management rather than a project manager actually on site. Currently, domestic and foreign construction firms are preparing for globalization by choosing it as an indispensable strategy. Without doubt, they will not be able to win international competitiveness unless they systemize their construction management. This is because without ITbased construction management systems, they will not be able to gauge the impact of increases in costs, or delays in the commencement of construction projects. Therefore, construction management systems must be revamped and upgraded to enable firms to analyze in depth the performance results of actual tasks. Q: What would you say to business about IT-based construction management systems A: To enable the construction industry to advance and remain competitive, there are strong arguments for developing PMS (Project Management Systems) that can produce systemic improvements in efficiency, and for using them as decisionmaking tools on the basis of the precise project information they generate. The reason why terms such as DSS (Decision Support Systems) and risk analysis figure frequently in the construction business management is the need for exact analysis about factors that have directly impact upon a project. The final objective of any company in the construction business is the successful completion of a project, and to this end as a means of devising optimal management methods by pursuing all problems through review and analysis, the IT-based system is an indispensable element. Within the IT sector, the trend toward convergence is becoming the major issue. There are combinations of cellular phones and cameras, MP3s and cellular phones, and PCs and TVs. The construction business shows signs of a similar development. The Enterprise Volume Management System (EVMS), a means of combing time and cost management is but one of several systems now being utilized. To employ more effective and innovative systems is every manager's ideal. I believe that in the interests of the construction industry's rapid progress, technological knowledge and management technology, experience and project execution know-how must be shared with all the project participants. Also, the continuous efforts in terms of investment should be directed toward producing innovative business management systems.