Columbus Regional Airport Authority Cuts Unbudgeted Carryover Costs for Capital Projects by 88% in One Year
 
 

Columbus Regional Airport Authority Cuts Unbudgeted Carryover Costs for Capital Projects by 88% in One Year

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The Columbus Regional Airport Authority (CRAA) is a public entity that works to connect Central Ohio with the world. It oversees operations at three airports―Port Columbus International Airport, Rickenbacker International Airport, and Bolton Field Airport―and manages the Rickenbacker Inland Port and Foreign Trade Zone # 138. It was created in 2002 through the merger of the Columbus Airport Authority and Rickenbacker Port Authority. CRAA manages approximately 100 projects annually, including initiatives as diverse as road and runway construction and maintenance, terminal improvements, construction of a new air traffic control tower, technology infrastructure development, customer service projects, and energy conservation programs.

The public organization wanted to implement more standardized business processes across capital project planning and execution, especially as CRAA geared up for its largest capital project ever―a five-year, US$150 million runway relocation project. Specifically, it wanted to ensure greater visibility into and control over project scheduling, costs, and cash flow.

CRAA deployed Oracle’s Primavera P6 Enterprise Project Portfolio Management to create a unified methodology for scheduling and capital cash flow management. Today, the organization manages schedules and costs for all of its capital projects by using Primavera to provide enterprisewide visibility. As a result, CRAA cut unbudgeted carryover costs from US$24.4 million in 2010 to US$3.5 million in 2011―an 88% improvement.

 
 

 
 

Challenges

A word from Columbus Regional Airport Authority

  • "Oracle’s Primavera P6 and Primavera Contract Management are transforming project management at CRAA. We have enabled resource-loaded scheduling and expanded visibility into cash flow, which allowed us to reduce unbudgeted carryover by 88% in a single year.” – Alex Beaver, Manager, Project Controls Office, Columbus Regional Airport Authority

  • Standardize project planning and management for the approximately 100 projects―including airport terminal upgrades to road and runway creation and rehabilitation―that the airport authority undertakes annually
  • Improve control over project scheduling and budgets to reduce unplanned carryover costs from one fiscal year to the next
  • Ensure on-time, on-budget completion of critical infrastructure projects that support the organization’s mission to connect Central Ohio with the world through its three airports and inland port

Solutions

Oracle Product and Services

  • Used Primavera P6 Enterprise Project Portfolio Management to develop a unified methodology for scheduling and managing capital projects for the airport authority, including the organization’s largest capital project ever―a five-year runway construction project
  • Gained a single, consolidated view into the organization’s capital projects and the ability to drill down into resource-loaded schedules and cash flow, enabling CRAA to take action earlier to avert the impact of emerging issues―including budget overages and project delays
  • Cut unbudgeted carryover costs from US$24.4 million in 2010 to US$3.5 million in 2011―an 88% improvement
  • Enabled visibility into the project portfolio at multiple levels, including individual projects, by business unit, and type of project
  • Equipped CRAA to deliver an annual resource-loaded schedule and budget baselines, as well as report monthly spend and variances to the finance team, improving executive management’s confidence in project and cost data
  • Enabled the organization to map long-term resource requirements, as well as create and report on capital spending forecasts for the next five years
  • Created a path to decommission legacy systems and expand use of Primavera Contract Management for business process management across the organization, including the finance and procurement departments in 2013

Why Oracle

“Oracle’s Primavera solutions are the industry standard for project management. They provide robust and proven functionality that give us the power to effectively schedule and manage budgets for a wide range of projects, from terminal maintenance, to runway work, to golf course redesign,” said Alex Beaver, manager, project controls office, Columbus Regional Airport Authority.

Partner

Beaver began to work with the Critical Business Analysis team when he was implementing Primavera P6. He took nearly every class the Oracle partner offered on the product and found the classes to be extremely helpful. CRAA later worked with Critical Business Analysis to develop scheduling methodology around Primavera P6 and is working towards implementing Primavera Contract Management in 2013.  

“Critical Business Analysis is our partner whenever we launch a Primavera initiative,” Beaver said. “The team knows our system and has a history with the CRAA, so it can hit the ground running. The Critical Business Analysis team has been instrumental in setting us up to make the most of our Primavera P6 investment.”

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