PROJECT MANAGEMENT for CONSTRUCTION Topic 4 PROJECT MANAGEMENT for CONSTRUCTION

What is a Project? ‘A project is a temporary endeavour undertaken to create a unique product or services’ - Source: Project Management Book of Knowledge Temporary means that every project has a definite beginning and definite end. Unique means that a product or services is different in some distingushing way from all other products or services.

Construction Project Complex, and time-consuming. A project normally consist of several phases (e.g. initial planning to project completion) Involves financial organisation, government agencies, engineers, architects, lawyers, insurance companies, contractor and supplier. There are major classification of construction that includes: housing, nonresidential building, heavy construction, highway, utility and industrial. Construction project is unique – no two jobs are exactly the same

What is Project Management (PM)? PM is an application of knowledge, skills, tools and techniques to project activities to meet project requirements.

What is a Project Manager? the individual that responsible for the execution and completion of a project.

What is Project Management? Project management is the art of directing and coordinating human and material resources throughout the life of a project by using modern management techniques to achieve predetermined objectives of scope, cost, time, quality and participation satisfaction. Source: R. M. Wideman, "The PMBOK Report -- PMI Body of Knowledge Standard," Project Management Journal, Vol. 17, No. 3, August l986, pp. l5-24.

In other words Project Management is: Application of knowledge, skills, tools, methodologies, and techniques in order to meet project requirements and meet or exceed stakeholder needs and expectations.

Project Management in construction encompasses a set of objectives which may be accomplished by implementing a series of operations subject to resource constraints. There are potential conflicts between the stated objectives with regard to scope, cost, time and quality, and the constraints imposed on human material and financial resources

Project Management The Triple Constraint of Project Management Lecture 1 Project Management The Triple Constraint of Project Management Successful project management means meeting all three goals (scope, time, and cost) – and satisfying the project’s sponsor! IS 556 -- Spring 2008

Project Management The Triple Constraint Lecture 1 Project Management The Triple Constraint Every project is constrained in different ways by its: SCOPE goals: What will be done? TIME goals: How long will it take to do it? COST goals: How much should it cost? It is the PM’s duty to balance these 3 often- competing goals. IS 556 -- Spring 2008

Basic Ingredients in Project Management Software development, Construction Engineering, Water and Sanitation Engineering Planning, organising, staffing, executing and controlling Law, Strategic Planning, Logistic, Human Resource Management , Marketing.

Project Stakeholders Stakeholders are the people involved in or affected by project activities. Stakeholders include: Project sponsor Project manager Project team Support staff Customers Users Suppliers Opponents to the project

Project Management Process Project are composed of processes. A ‘process’ is a series of actions bringing about result. Project processes are performed by people and generally fall into 2 main categories: Project management process Product-oriented process PM is accomplished through the use of the processes such as: Initiation Planning Execution Monitoring and Control and Closeout

Links among process group in a phase Initiating Processes Planning Processes Controlling Processes Executing Processes Closing Processes

The Initiation Process The purpose of initiation is to get a project approved, or approval to go to the next phase. Initiating is the conceptual element of project management—the basic processes that should be performed to get the project started. This starting point is critical because those who will deliver the project, those who will use the project, and those who have a stake in the project need to reach an agreement on its initiation.

The Initiation Process (cont’) The basic processes for the initiation phase are: Selecting the project Determining business needs Collecting historical data Determining objectives Determining high level deliverables and estimates Developing a product description Identifying the qualifications of the project manager that would be best suited for the particular project Determining high level resource requirements Obtaining project initiation approval.

The Initiation Process (cont’)

The Planning Process The planning phase is considered the most important phase in project management. Time spent up front identifying the proper needs and structure for organizing and managing a project saves countless hours of confusion and rework during the execution and control phases of the project. Project planning defines project activities that will be performed, the products that will be produced, and describes how these activities will be accomplished and managed.

The Planning Process (cont’) Project planning defines each major task, estimates the time, resources and cost required, and provides a framework for management review and control. Planning involves identifying and documenting scope, tasks, schedules, cost, risk, quality, and staffing needs.

The Planning Process (cont’) This planning process: Identifies specific work to be performed and the goals that define the project. Provides documented estimates regarding schedule, resources and cost for planning, tracking, and controlling the project. Obtains organizational commitments that are planned, documented, and agreed upon Continues the development and documentation of project alternatives, assumptions, and constraints Establishes a baseline of the plan from which the project will be managed.

The Planning Process (cont’) The result of the project planning, the project plan, will be an approved, comprehensive document that allows a project team to begin and complete the work necessary to achieve the project goals and objectives (product/process). The project plan will address how the project team will manage the project elements. It will provide a high level of confidence in the organization’s ability to meet the scope, timing, cost, and quality requirements by addressing all aspects of the project.

The Planning Process (cont’) The planning process will result in the development of the subsidiary management plans which are: Cost management plan Staffing/Resource management plan Scope management plan Schedule management plan Quality management plan Procurement management plan Communications management plan Risk management plan Integrated change control management plan.

Execution Process Once a project moves into the execution phase, the project team and all necessary resources to carry out the project should be in place and ready to perform project activities. The project team’s and specifically the Project Manager’s focus now shifts from planning the project efforts to participating in, observing, and analysing the work being done

Execution Process (cont’) The execution phase is when the work activities of the project plan are executed, resulting in the completion of the project deliverables and achievement of the project objective(s). This phase brings together all of the project management disciplines, resulting in a product or service that will meet the project deliverable requirements and the customers need. During this phase, elements completed in the planning phase are implemented, time is expended, and money is spent.

Execution Process (cont’) This phase requires the Project Manager and project team to: Conduct, coordinate and manage the ongoing work activities Perform quality assurance activities continuously to ensure project objectives are being met or achieved Monitor identified risks for triggering events and implement containment or contingency strategies as necessary Manage change. In short, it means coordinating and managing the project resources while executing the project plan, performing the planned project activities, and ensuring they are completed efficiently.

Execution Process (cont’) The execution phase is when the project’s deliverables are produced and the objectives are met. This phase entails the completion of the work activities, the expenditure of resources, and the application of the quality assurance processes to ensure that the end product(s) is viable and meets customer requirements. The focus of the Project Manager and the project team is on the day-to-day management of the overall effort.

Controlling Process Control is a formal process in project management. Project Control compare actual performance with planned performance and taking corrective action to yield the desired outcome when significant differences exists.

Controlling Process (cont’) By monitoring and measuring progress regularly, identifying variances from plan, and taking corrective action when necessary, project control ensures that project objectives are met. The variances are determined by comparing the actual performance metrics from the execution phase against the baseline metrics assigned during the planning phase. Controlling also includes taking preventive action in anticipation of possible problems.

Controlling Process (cont’) Project control is important because a project is unlikely to be considered successful by stakeholders if it is not controlled effectively.

Project Closeout Process The last major phase of a project’s life cycle is the project closeout phase. Project closeout is performed after all defined project objectives have been met and the customer has formally accepted the project’s deliverables and end product or, in some instances, when a project has been cancelled or terminated early. organizations can benefit from lessons learned and information compiled at closure.

Project Closeout Process (cont’) Some of the key elements to project closeout are: Completion and closeout of any contractual agreements with suppliers or providers Formalising customer acceptance Closeout of any financial matters Preparation of the project’s final performance report Conducting a project review Documenting lessons learned Completing, collecting and archiving project records Celebrating project success.

The functions of construction project management Specification of project objectives and plans including of scope, budgeting, scheduling, setting performance requirements, and selecting project participants. Maximization of efficient resource utilization through procurement of labour, materials and equipment according to the prescribed schedule and plan. Implementation of various operations through proper coordination and control of planning, design, estimating, contracting and construction in the entire process. Development of effective communications and mechanisms for resolving conflicts among the various participants.

Basis knowledge of Project Manger requires by Project Management Institute (PMI) Project integration management to ensure that the various project elements are effectively coordinated. Project scope management to ensure that all the work required (and only the required work) is included. Project time management to provide an effective project schedule. Project cost management to identify needed resources and maintain budget control.

Basis knowledge of Project Manger (cont’) Project quality management to ensure functional requirements are met. Project human resource management to development and effectively employ project personnel. Project communications management to ensure effective internal and external communications. Project risk management to analyse and mitigate potential risks. Project procurement management to obtain necessary resources from external sources.

Overview of Project Management Knowledge Areas and Project Management Process 

Project Management Project Management Framework Lecture 1 IS 556 -- Spring 2008

9 Project Management Knowledge Areas Lecture 1 9 Project Management Knowledge Areas Describe the key competencies that PMs must develop 4 core knowledge areas lead to specific project objectives (scope, time, cost, and quality). 4 facilitating knowledge areas are the means through which the project objectives are achieved (human resources, communication, risk, and procurement management). 1 integrating knowledge area (project integration management) affects and is affected by all of the other knowledge areas. All knowledge areas are important! IS 556 -- Spring 2008

Relationships Among Process Groups and Knowledge Areas Lecture 1 Relationships Among Process Groups and Knowledge Areas PMBOK® Guide 2004, p. 69 IS 556 -- Spring 2008

Project Communication

References Project Management Body of Knowledge, Association of Project Management, 2006.