Chapter 1 Project Management Concepts

Project Management Concepts

111111111Learning ObjectivesDefinition of a project, project management and its attributesWhy project management?Key constraints within which a project must be managedHow a project is bornLife of a projectSteps involved in the project management processBenefits of project management222222222What is a PROJECT?A project is an endeavor to accomplish a specific objective through a unique set of interrelated tasks and the effective utilization of resources.(Gido & Clements, 2003)555555777What is a PROJECT?A temporary endeavor undertaken to create a unique product or service.(PMBOK, 1987)555555777What is MANAGEMENT?Management is a process of one or more individual coordinating others activity to achieve result which cannot be done by individual who work alone.(Donelly, Gibson & Ivancevich, 1987)555555777What is PROJECT MANAGEMENT?The application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project.(PMBOK, 1987)555555777Examples of ProjectsPlanning a weddingDesigning and implementing a computer systemHosting a conferenceDesigning and producing a brochureBuilding a shopping mallHolding a high school reunionPerforming a series of surgeries on an accident victimConverting a basement to a family room777777101010Why Project Management?

Plus Minus Responsive to client and environmentFast problem resolutionQuick decision makingOrganizational complexityPolicy violationsLower personnel utilization

Attributes of a ProjectPROJECTHas a well-defined objectiveComposed of a series of interdependent tasks Utilizes various resourcesHas a specific time frameMay be a unique or one-time endeavorHas a customerInvolves a degree of uncertainty (conflict)666666888Factors That Constrain The Achievement of a Project Objective

COSTSCOPESCHEDULECUSTOMER SATISFACTION

888888111111Unforeseen CircumstancesUnforeseen circumstances may jeopardize achievement of the project objective.The challenge facing the project manager is to prevent, anticipate, and/or overcome such circumstances.999999141414The Project Life CycleProjects are born when a need is identified by the customer.Project life cycles vary in length, from a few weeks to several years.Not all projects formally go through all four phases of the project life cycle.101010101010161616The Project Life CycleIdentify a needDevelop a proposed solutionPerform the projectTerminate the projectEFFORTTIME

101010101010161616Phases of the Project Life Cycle 1The first phase involves the identification of a need, problem, or opportunity.The need and requirements are usually written by the customer into a document called a request for proposal (RFP).111111111111171717Phases of the Project Life Cycle 2The second phase is the development of a proposed solution to the need or problem.This phase results in the submission of a proposal.The customer and the winning contractor negotiate and sign a contract (agreement).

121212121212181818Phases of the Project Life Cycle 3 The third phase is performing the project.Different types of resources are utilizedResults in the accomplishment of the project objective

131313131313191919Phases of the Project Life Cycle 4The final phase is terminating the project.Perform close-out activitiesEvaluate performanceInvite customer feedback141414141414202020Need and intention to built (incl. initial thought on facility)Feasibility studies & Technical & economic studyProject BudgetProject brief design, technical, cost, quality, time parametersExternal & Internal Stakeholders

Project PhasingIdeaP1Inception PhaseExternal Project Environment Stakeholderscompeting demands...ProjectSponsorProjectManagerandProject TeamConsultingEngineersCorporate Enterpriseand its business purposeGeneralConstructionEXTERNAL PROJECT ENVIRONMENTPrimary End UsersSecondary End UsersGovernment AgenciesProfessional AssociationsLegislative AuthoritiesPublicMediaClients Representatives Local Authorities GovernmentMinistriesLocal MunicipalityFinanciersShareholders(Main) Client19Internal Project Environment

Competing demands...20Requirement capture from Internal & External Stakeholders Scope of Work, Deliverables, time & budgetTechnical & Design Concept (incl. site condition, soil investigation & functionality)Project implementation strategy Master Implementation ProgrammeOrganizational structure, System & ProcedureQA/QC, Communication & information planHSSEDocument Control Centre

WhatP2Definition PhaseProject PhasingDetail design development, materials search Value engineering, maintenance awarenessPreparing procurement strategy, tender documentationDetail cost estimate & budget, cost control system Performance & technical specificationsApproval of the Client

HowP3Design PhaseProject PhasingTendering process & AwardEvaluation CriteriaSpreadsheet Presentation for Comparison of different Tender Proposal / PricingRecommendationProject PhasingHow to MakeP4Procurement PhaseSite planningDetail construction work programs (incl. interfacing)Contract administrationDesign & technical site review & adjustmentHow to manage TCQIOPQA/QC, HSSE implementation & controlOperational readiness & maintenance planTesting, commissioning, & handover (incl. CF)

Project PhasingDoP5Construction PhaseOperation & maintenance process (Client / Operator Organization)Defect liability managementContract closing & final account (incl. dispute, claims)Post-project evaluation & documentation

Project PhasingPreserveP6O&MPhaseThe Project Management ProcessThe project management process means planning the work and then working the plan.151515151515212121The Project Management Process (Cont.)Clearly define the project objective. Divide and subdivide the project.Define the specific activities that need to be performed.Graphically portray the activities in a network diagram.161616161616222222The Project Management Process (Cont.)

171717171717242424The Project Management Process (Cont.)

171717171717242424The Project Management Process (Cont.)Make a time estimate.Make a cost estimate.Calculate a project schedule and budget.171717171717242424The Project Management Process (Cont.)

171717171717242424The Project Management Process (Cont.)

171717171717242424Controlling ProjectsEstablish a baseline plan.Monitor progress.Measure actual progress and compare it to planned progress.Take corrective action if the project is behind schedule, overrunning the budget, or not meeting technical specifications.181818181818252525Controlling Projects

181818181818252525Benefits of Project ManagementSatisfied customersAdditional businessExpansion of career opportunities Satisfaction of being on a winning team Improved knowledge and skillsWhen projects are successful, everybody WINS191919191919282828