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Chapter 1
The Concept of Project Management
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Unique Building
Around TheWorldC
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Problem ThatWe Face in
ConstructionIndustry
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Literature ReviewUAE researchers perspective
!ra"ings preparation and approval
Inadequate and poor planning
#ac$ o% quic$ decision ma$ing %rom o"ner
#ac$ o% manpo"er
#ac$ o% proper supervision and management#ac$ o% labour productivity
#ac$ o% labour s$ills
#ac$ o% availability o% equipment and material
!i&culties in ta$ing approvals %rom govermentauthorities and committees
Contractor's (nancing problems
Changes in materials
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E!"N"T"ON O! MANAGEMENT
the process of reaching organizational goals by woring with an!thro"gh people an! other organizational reso"rces#
Certo# 1$%&
the process of planning an! !ecision-maing$ organizing$ lea!ing an!controlling an organization#
Gr'ff'n# 1$%(
the process of ac%"iring an! combining h"man$ financial$ informationalan! physical reso"rces to attain the organization&s primary goal ofpro!"cing a pro!"ct or ser'ice !esire! by some segment of society#
Pr'ng)e# Jenn'ng* an+ ,ongnecer# 1$%%
the process with an! thro"gh other people to achie'e organizationalob(ecti'e effecti'ely "sing limite! reso"rces in fl"ct"ate or !ifferentsit"ation#
Ro.ert /re'tner# 00$
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MANAGEMENT CONCEPT
An efort to use the limited
resources to achieveorganizational goals efectively
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A2"C COMPONENT O! MANAGEMENT
Chapter 1 - Management Concept+
Figure )*) Basic Component o% +anagement
'fferent2'tat'on
4or
5'th throgh
other peop)e
,'m'te+
Re*orce*
"mpre**'7e
an+ Eff'c'ent
'ffe
rent2't3at'on
'ffe
rent2
't3
at'onOrgan'8at'ona)
Goa)*
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Levels o Management
1,
Chapter1-ManagementCo
ncept
t consists of boar! of !irectors$ chief e.ec"ti'e
or managing !irector/ 0he top management isthe "ltimate so"rce of a"thority an! it manages
goals an! policies for an enterprise/ t !e'otes
more time on planning an! coor!inating
f"nctions/
0he !epartmental managers constit"te mi!!le
le'el/ 0hey are responsible to the top
management for the f"nctioning of their
!epartment/ 0hey !e'ote more time to
organizational an! !irectional f"nctions/
ower le'el is also nown as s"per'isory
operati'e le'el of management/ t consists ofs"per'isors$ foreman$ section officers$
s"perinten!ent etc/ 0hose e.ec"ti'es whose
wor has to be largely with personal o'ersight
an! !irection of operati'e employees
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IMPORTAN! O"
MANA#!M!NTa$ Ac%uisition and utilization o resources +anagement per%orms e&cient acquisitione,ective development and utili-ation andproper coordination o% resources
&$ !nvironmental ada'tation +anagement adopts organi-ation to changing
environmental %orces*
c$ #oal achievement
+anagement achieves goals by balancing therequirement o% .obs and people*
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d$ Pro&lem solving
+anagement solves organi-ation problems*It identi(es and evaluates variousalternatives and choose appropriate courseo% action*
e$ Perormance control +anagement measures and evaluates the
actual per%ormance*
$ (ocial res'onsi&ility
+anagement anticipate and act be%ore handto social e/pectation
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A2"C MANAGEMENT ACT"9"T"E2
Chapter 1 - Management Concept13
Figure )*0 Basic +anagement Activities
P,ANN"NG
"MP,EMENTAT"ON
CONTRO,,"NG
Compare .et5een progre** an+ p)ann'ng Report'ng 2ett)e pro.)em*
'*tr'.te re*orce*
2per7'*e 'mp)ementat'on Coor+'nate act'7't'e* Mot'7ate 5orer*
ef'ne o.ject'7e* ef'ne re*orce* nee+e+
'n the project e7e)op *trateg:
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E!"N"T"ON O! PROJECT
)ni%ue set o coordinated activities* with de+nite starting and+nishing 'oints* underta,en &y an individual or organization tomeet s'eci+c o&-ectives within de+ned time* cost and 'erormance'arameters using limited resources
Punmia P. dan /handelwal /./* 0121
A novel underta,ing or systematic 'rocess to create a new 'roduct
or service the delivery o which signals com'letion. Pro-ects arety'ically constrained &y limited resources.
A uni%ue venture with a &eginning and an end* underta,en &y'eo'le to meet esta&lished goals within de+ned constraints o time*resources and %uality.
(ystematic 'rocess or achieving a distinct o&-ective. The 3system4consists o a 'eriod o 'lanning ollowed &y a 'eriod o 4doing4* andthis system is re'eated at every level o detail. These two 4'eriods4are the genesis o the 'ro-ect lie cycle.
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E!"N"T"ON O! PROJECT
Chapter 1 - Management Concept15
Project Character'*t'c*
ef'ne+ goa)*
,'m'te+per'o+ of T'me
;n'
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T=PE O! CON2TR;CT"ON PROJECT
Chapter 1 - Management Concept16
Figure )*2 Type o% Construction Pro.ect
- 2'ng)e-fam'):
home*- M)t'n't
to5n ho*e*- Apartment*- Con+om'n'm*- etc
Con*trct'on Project
Re*'+ent'a)
con*trct'on
>ea7:
con*trct'on
')+'ng
con*trct'on
"n+*tr'a)
con*trct'on
- Reta') *tore*- 2choo)*- ;n'7er*'t'e*- >o*p'ta)- Mo*ar.or*# etc
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PROJECT CON2TRA"NT2
Chapter 1 - Management Concept1)
Figure )*3 Pro.ect Constraints
Re*orce*
?a)'t:
Co*tT
'me
,a52afet:
Performancean+ Techno)og:
En7'ronmenta)"**e*
Goo+ Re)at'on*h'p 5'th C)'ent*
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E!"N"T"ON O! PROJECT MANAGEMENT
lanning$ controlling an! coor!inating a pro(ect from beginning stage to
completing the owner&s nee! which ens"re that the pro(ect finish on time$
on b"!get an! also on %"ality/
The Chartere+ "n*t'tte of ')+'ng# ;/
0he process which pro(ect manager plan an! control all the acti'ities in a
pro(ect$ "se an! !istrib"te all of reso"rces money$ time$ information$
material$ an! e%"ipment to achie'e goals$ stan!ar!s$ an! ob(ecti'es that
pre!etermine! in the beginning of pro(ect stage base! on time$ cost$
reso"rces an! %"ality/
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E!"N"T"ON O! PROJECT MANAGEMENT
Chapter1-ManagementConcept
1+Figure )*4 Pro.ect +anagement
Project@*
goa)*
Re*)t
- On t'me- On .+get- On
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;T"E2 O! PROJECT MANAGER
Ma,e a re'ort to 'ro-ect coordinator
hec, the %uality o wor, and saety on construction site
Arrange all the acilities at the construction site &eore wor,commences
omunicate with clients and consultans
Im'lement %uality control 'rocedures
Attend all meetings with clients and consultants Pre'are and 'resent the main 'rogram to the client
onducting meetings o su& contractors and su''liers
Monitor the wor, 'erormed &y su& contractors
Overall 'lanning* coordinating the activities o theconstruction site* site management and e5'enditure
Monitor the 'rogress o wor, and cash 6ow
Leading the team o engineers* %uantity surveyors* landsurveyors* %uality coordinator at the site and su'ervise theconstruction 'ro-ect.
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CONCEPT O! PROJECT MANAGEMENT
ET4EENB
a TRA"T"ONA, 2=2TEM
The designer does not have direct lin$ "ith the specialist and allcommunication is via the main contractor "ho in many cases "ill notaccept design liability*
This results in a grey area o% responsibility and liability as in%ormation ispassed %rom one to the other*
In general5 the designer or the architect is the leader o% the pro.ect and
represents the client to implement the design process* The architect becomes more o% a 6surrogate client' and ta$es on the
responsibility to ma$e sure the pro.ect is delivered on time and on budget*
The traditional method o% procurement5 the client appoints independentconsultants5 on a %ee basis5 "ho %ully design the pro.ect and preparetender documents upon "hich competitive bids5 o%ten on lump sum basis5
are obtained %rom contractors* The success%ul tendered enters into direct contract "ith the client and
carries out the "or$ under the supervision o% the original designconsultants*
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In the traditional procurement5 the pro%essionals are empo"ered
to use best practice de(ned by their o"n pro%essional bodies andeducation*
The basic "or$%orces in general play an inactive role to"ards thedesign and planning process*
The basic "or$%orces here "or$ consistently i% there are nointerruptions in the production process*
7uch an environment generally encourages an adversarial
attitude among the design teams* In terms o% cost bene(ts5 reduction o% up to 189 can be
achieved* While a reduction o% 289 in delivery5 time can beachieved but there is a little change in the quality o% the product*
Traditional 'rocurement system characteristics 7
#ong construction periodConsecutive organisation
Clear contracting relations
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Procurement (trategy
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Chapter1-ManagementConcept
CostCost
CheapestCheapest
conomicalconomical
7easonable7easonable
8"ality8"ality
9est9est
:!e%"ate:!e%"ate
0ime0ime
;astest;astest
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Time
!ue to its linear or sequential approach5 the traditionalprocurement system has been identi(ed as the slo"est pro.ect
delivery approach*:o"ever5 this approach is more pre%erable because it providesclear accountability and better design and construction control bythe client*
7ince the pre;contract stage o% this system is longer5 more time isavailable %or the client and the pro.ect team to scrutini-e andrevie" the design be%ore construction*
ost
This system provides more price certainty to the client at the veryearly stage o% the pro.ect*
It also gives the client (rmer and more competitive price because
the design plus the complete "or$ing dra"ings have been %ullydeveloped and detailed out prior to tendering*
It eliminates any design or construction ambiguity or uncertainty"hich o%ten causes the contractors to unnecessarily in
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In the case "here bill o% quantities is used5 the bidding tend to be more%air as such the pro.ect cost is also lo"er*
The system also better cost control as such cost increase due tovariations is
minimi-ed5 but "or$s "ere o%ten disrupted "hen there are too manyvariations=due to un%oreseeable problems> and it tend to cause the cost to in*
8uality
The traditional procurement system also provides a high degree o% quality
certainty and %unctional standards* It is also a system that provides an opportunity %or the building o"ner to
combine the best design5 management and construction e/pertisebet"een consultants and contractor*
It also provide more time %or client and consultants to revie" and %ullydevelop the design and speci(cation thus allo"ing better documentationpreparation*
:o"ever5 this system does not provide opportunities %or contractor tocontribute his construction technology and management e/pertisebecause they only come into the scene a%ter the design has been %ullydeveloped and approved*
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The #inear or 7equential Process o% the Traditional Procurement 7ystem
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&. 9!(I#N AN9 :)IL9 AN9 T)RN/!; (;(T!M(
Time
!esign and build and turn$ey pro.ect procurement system are called @%ast;trac$ing or @build;it;%ast pro.ect delivery system "here the design andconstruction are integrated*
The design %ree pre;tender process allo" %or earlier construction date* It alsoallo"s the process o% detail design and construction to run almost in parallel and
concurrently to each other5 thus reducing the overall pro.ect developmentperiodconsiderably*
As a single entity responsible %or both the design and construction5 thecontractor is able to control not only the construction time but also the timereserved %or the design o% the pro.ect5 thus reducing the overall contractduration*
In this type o% procurement system5 the contractor has al"ays been selectedbased on its vast e/perience5 $no"ledge and competency in construction5 as
such by giving it the design responsibility5 the contractor very o%ten able toreduce construction time*
This is done by him rationali-ing the design and construction process and siteactivities*
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ost
Although the cost is (/ed at the tender stage and is sub.ect to designchanges5 it is o%ten higher than the traditional contracting system*
Apart %rom the %act that very limited contractors are invited to submittenders5 the lac$ o% design and speci(cation detailing during tender5 has
made the contractors to .ac$ up the price to allo" %or many uncertainties* Thisis because once accepted5 the tender price "ill be the (nal contract sum*
It is not sub.ect to change5 unless there are variations required or instructedby the client* 7uch additional cost cannot be avoided because under thisprocurement system the contractor "ill to ta$e much o% the (nancial ris$*
:o"ever5 as many have claimed5 the signi(cant cost saving in this type o%
procurement system is made through the reduction o% the overalldevelopment period*
The cost o% contractor's uncertainty can be set;o, by the reduction in loaninterest and early (nancial return or bene(ts*
Cost saving may also be made "hen the contractor applies his construction$no"ledge and e/perience to simpli%y design and "or$*
At the same %urther cost saving can be made "hen the client o,er thecontractor some %orm o% incentive i% he is able to save a signi(cant amount o%cost*
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8uality
The integration o% design and construction allo"s the contractor to
utili-e his $no"ledge and e/perience to develop much compacted
and coherent "or$ program and to develop more e&cient design andpro.ect control programmed*
At the same time it allo"s the contractor to be innovative to %urther
improve the construction process and techniques thus allo"ing %orbetter "or$ and process quality*
:o"ever5 it is more o%ten %ound that the quality o% "or$ under thiscontracting system tend to be questionable*
The assigning o% the designing and construction to a contractor has
caused the client to loose control o% the design and supervision o% the
"or$*
This is especially so "hen the client does have his o"n team o%
consultants* As %ar the contractor is concerned5 they tend to cutcorners in order to ma/imi-e their pro(t5 especially "hen they %eelthat they have under price their quotation during "hen tendering %or
the "or$*
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The Integrated Process o% Pro.ect !esigning and Construction in the!esign and Build Procurement 7ystem
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Procurement (trategy
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Chapter1-ManagementC
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Traditional deliveryTraditional delivery !esign and build system!esign and build system
Turn$ey5 Pac$age dealTurn$ey5 Pac$age deal
ClientClient