Tuesday, February 19, 2008

Vancouver 2010 Winter Olympics

The upcoming Olympic Games scheduled for February 12, 2010 is a massive undertaking that will attract elite athletes from over 80 nations and focus the world’s attention to the city of Vancouver, in beautiful British Columbia, Canada. Effective operations management will be crucial to its success. It is one thing to win the dream of hosting the Games, and quite another to produce the vision.

Operations management ensures that business operations run effectively and efficiently. It involves the proper allocation of resources, the distribution of goods and services to clients, and process analysis. In short, operations management involves the production of value-added activities which transform inputs into several outputs in a cost-effective manner. In terms of the Olympics, a project of such magnitude, this means the coordination and planning required to stage the event while minimizing risks.

Elements of operations management are evident throughout the whole planning and implementation – of the Olympics – from accommodations, brand and creative services, procurement of funds and sponsorships, ceremonies, to logistics, medical services, anti-doping programs, and … you get the picture. For example, the Daily Competition Schedule – which details 17 days’ worth of Olympic competition – involved the “expertise of seven departments from across the Organizing Committee, including Sport, Venue Management, Event Services, Transportation, Broadcast, Technology and Ticketing” as well as “continuous collaboration with internal sport federations broadcast rights holders from around the world.” Without the values of planning and facilitation inherent in operations management, attempting to make the first draft of this document would have been nearly impossible. (To date, it has already undergone six major revisions and over 50 drafts.)

This brief article will be focusing on schedule management, venue construction, transportation, and project controls.

Schedule Management
Detailing key deliverables, responsibilities, and milestones, a Master Schedule is an important tool to ensuring the forward progress on critical Games deadlines. Though it lists only the core activities, it provides a summary of plans and functions of all of Vancouver Organizing Committee's (VANOC) partners into a single, centrally managed schedule. Project management and project reporting techniques are used to analyze progress on milestones and identify any challenges or risks that may arise. The Master Schedule is an evolving document and is updated continuously. VANOC’s monthly management report process includes change management to guarantee sufficient oversight, tracking, and communication, as well as a Gantt chart detailing VANOC’s milestones and deliverables for the next six months and any revisions to them.

Venue Construction
The Olympics is an ambitious project and venue construction is probably one of its biggest components. The 2010 venue development program aims to maximize the use of existing facilities while ensuring that new developments have great potential of post-Games uses. In addition, new venues are being constructed with sustainability in mind, with the purpose of minimizing the Olympic footprint through the design of green buildings that conserve natural resources such as water, materials, and energy in their operations. Venue construction encompasses Whistler, Vancouver, and Richmond; development is underway for Cypress Mountain, Whistler Nordic Venue, Pacific Coliseum, Whistler Sliding Centre, Whistler Creekside, UBC Winter Sports Centre, Richmond Oval, Hillcrest/Nat Bailey Stadium Park; Killarney Rink; Whistler Athlete Centre, Trout Lake Rink, Vancouver Olympic Paralympic Village, and Whistler Olympic and Paralympic Village. After the Games, both Whistler and Vancouver villages will be used as supportive housing to address needs and shortages.

Transportation
The 2010 Games spurred the transportation improvements that had been stalled on the community agenda. Winning the bid enabled the city of Vancouver to set a time frame for the much-needed improvements. These included the expansion of the Canada Line (rapid transit SkyTrain line connecting Vancouver, Richmond, and the Vancouver International Airport) and major improvements to the Sea-to-Sky Highway. (In addition to road enhancements, the Games will also feature a large collection of hydrogen fuel-cell buses; each will provide 37 seats and 60-person standing capacity and have zero emissions.)
Ensuring the mobility and safety of athletes, officials, media, spectators, residents, and businesses during the Games is another element the city must address. Engineering Services and the Vancouver Police Department will be coordinating their efforts with event organizers to develop a plan that will minimize the impact of increased traffic due to activities in city venues.

Project Controls

Project controls are integral to the success of the Games. It ensures that the project manager is accountable and that executive management is consistently informed of all projects’ progress and any necessary corrective or preventative actions that are required. Planning, scheduling, and budgeting functions must be integrated so that financial reports include commitments and contractual obligations and reflect cash allocations. Project controls also include: cost forecasting and financial management; procurement management; contract management; document management; and claims management.


The risk management process plays an important role in determining the adequacy of capital venue budgets and management reserves. Analysis of previous Games help with the overall strategic risk approach. For better control over the myriad of projects, VANOC has grouped risks to the Games into four areas: financial risk (revenue generation, financial loss); operational risk (technology, staffing); hazard risk (weather, natural disaster); and strategic risk (reputation, political). This formalizes the responsibility for risk managemen
t and control and establishes a communications plan for use throughout the development of projects.

One example of how VANOC reduced risks on Whistler construction projects was to split
tender packages into smaller projects to encourage competitive tenders and local contractors. This results in best prices overall while reducing costs for living expenses of crews brought in from outside the community.


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With any project that takes seven years to deliver, changes are inevitable. Each day, new information becomes available. We continue to assess and analyze, find innovative ideas and make informed decisions. Our entire team is focused on our mission to touch the soul of this nation and inspire the world by staging outstanding Olympic and Paralympic Games with sustainable legacies. And we keep a close eye on the bottom line – to ensure we are making prudent decisions respecting the financial resources available to us. This applies to both the construction of the 2010 Winter Games venues, funded equally by the Governments of Canada and British Columbia, and to the cost of planning and staging the Games that will be delivered from monies secured from the private sector.
John A. Furlong, CEO, Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games