Homepage Australian Institute of Project Management (AIPM) newsroom

Project Management Delivers Defence Capabilities

Announcement posted by Australian Institute of Project Management (AIPM) 05 Dec 2014

CEO of Defence Material Organisation discusses project delivery deadlines at Senate Estimate hearing
The importance of well-managed and executed project management departments continue to be highlighted, with recent revelations at a Senate Estimate hearing showcasing actions taken by some of the biggest organisations in Australia to ensure projects are delivered to schedule.

The Defence Materiel Organisation (DMO), which manages some 180 major project and more than 75 minor projects with an annual budget of A$9 billion, has led the way in investing in the professionalism of project management over the past few years. At a Senate Estimate hearing on September 23 this year, Mr King CEO DMO said that “before the Kinnaird process we used to run about 70 per cent late on projects. We have now pulled that down to about 35 per cent”. The Kinnaird process refers to the Kinnaird Review, which covered the whole of the defence capability cycle, from initial strategic assessment to retirement of capability from service.

Not delivering a project to schedule can result in the loss of large chunks of annual budgets and as was highlighted in the report, every project comes with its own set of unique risks.

The Australian Institute of Project Management (AIPM) CEO, Yvonne Butler, spoke to the developments recently when she said “projects are not risk free there will always be a proportion of your portfolio of projects that need attention. A maturing organisation will use lessons learned from these experiences, build their organisational capability and reduce problem projects. DMO and their suppliers are to be congratulated on their achievement”.

The AIPM has worked closely with the DMO to assist their teams through their project management certification processes, helping get their Project Management Office up to speed in the latest project management methodologies to help them in their quest to deliver projects to budget.

The Royal Australian Navy is another organisation which has developed its risk led strategy in recent times, as they implement project management principles to help deliver their capability. The work leading up to the commissioning of HMAS Canberra is an excellent demonstration of how Defence, DMO and industry work together using the discipline of project management to deliver world-class ships and their support systems to the Royal Australian Navy.

Chief of Navy, Vice Admiral Tim Barrett commented that “the commissioning of HMAS Canberra on 28 November 2013 was an excellent example of Navy, Defence Materiel Organisation and our industry partners working together to produce an exciting capability for the Australian Defence Force. I look forward to these relationships remaining strong as work continues on building NUSHIP Adelaide and also the ongoing sustainment of the Canberra class amphibious vessels.”

These leading defence organisations are now leading the way in certified, risk-led strategic projects which are delivering tangible benefits to the Australian Defence Force and Government.

AIPM Chief Executive Officer Yvonne Butler will be available for comment at request.

Media Contact: Michael Martin
National Manager Marketing and Communications, AIPM
P: +61 2 8288 8751
E: mmartin@aipm.com.au
Twitter: @the_AIPM
5 December 2014