In the name of Allah the Most Gracious the Most Merciful

2 CE-301 Construction Engineering and Management

LECTURE 1 FUNDAMENTALS OF PROJECT MANAGEMENT 3

What is a Project? PROJECT A PROJECT can be considered to be any series of activities that:  have a specific objective to be completed within certain specifications  have defined start and end dates  have funding limits (if applicable)  consume resources 4

Components of a Project A project consists of three components:  Scope (the work to be accomplished)  Budget (costs, measured in rupees and/or labour-hours of work)  Schedule (logical sequencing and timing of the work to be performed) 5

MANAGEMENT Management may be defined as a process (a systematic way of doing things) consisting of planning (thinking of actions in advance), organising (co-ordinating the human & material resources of the organization), actuating (motivating & directing sub-ordinates) and controlling (attempt to ensure that there is no deviation from the norm or plan), performed to determine and accomplish the objectives by the use of people and resources. 6

PROJECT MANAGEMENT The management of a project generally follow these steps: Step 1: PROJECT DEFINITION (to meet the needs of the end user)  Intended use by the owner after completion of construction  Conceptual configurations and components to meet the intended use 7

PROJECT MANAGEMENT STEP 2: PROJECT SCOPE (to meet the project definition)  Define the work that must be accomplished  Identify the quantity, quality, and tasks that must be performed 8

PROJECT MANAGEMENT STEP 3: PROJECT BUDGETING (to match the project definition and scope)  Define the owner’s permissible budget  Determine direct and indirect costs plus contingencies 9

PROJECT MANAGEMENT STEP 4: PROJECT PLANNING (the strategy to accomplish the work)  Select and assign project staffing  Identify the tasks required to accomplish the work 10

PROJECT MANAGEMENT STEP 5: PROJECT SCHEDULING (the product of scope, budgeting, and planning)  Arrange and schedule activities in a logical sequence  Link the costs and resources to the scheduled activities 11

PROJECT MANAGEMENT STEP 6: PROJECT TRACKING (to ensure the project is progressing as planned)  Measure work, time, and costs that are expended  Compare “actual” to “planned” work, time, and cost 12

PROJECT MANAGEMENT STEP 7: PROJECT CLOSE-OUT (final completion to ensure owner satisfaction)  Final testing, inspection, and payment  Turn over of the project to the owner 13

FUNCTIONS OF MANAGEMENT Newman & Summer recognizes only four functions of management, namely, organising, planning, leading and controlling. Henri Fayol identifies five functions of management, viz. planning, organizing, commanding, co-ordinating and controlling. Luther Gulick states seven such functions under the catch word ‘POSDCORB’ which stands for Planning, Organising, Staffing, Directing, CO- ordinating, Reporting and Budgeting. 14

FUNCTIONS OF MANAGEMENT Five basic functions of management: Planning Organising Staffing Directing Controlling 15

FUNCTIONS OF MANAGEMENT PLANNING Planning is the formulation of a course of action to guide a project to completion. It starts at the beginning of a project, with the scope of work, and continues throughout the life of a project. Successful project planning is best accomplished by the participation of all parties involved in a project. There must be an explicit operational plan to guide the entire project throughout its life. 16

FUNCTIONS OF MANAGEMENT ORGANIZING Organizing is the arrangement of resources in a systematic manner to fit the project plan. A project must be organized around the work to be performed. There must be a breakdown of the work to be performed into manageable units, that can be defined and measured. The work breakdown structure of a project is a multi-level system that consists of tasks, subtasks, and work packages. 17

FUNCTIONS OF MANAGEMENT STAFFING Staffing is the selection of individuals who have the expertise to produce the work. The persons that are assigned to the project team influence every part of a project. Most managers will readily agree that people are the most important resource on a project. People provide the knowledge to design, coordinate, and construct the project. The numerous problems that arise throughout the life of a project are solved by people. 18

FUNCTIONS OF MANAGEMENT DIRECTING Directing is the guidance of the work required to complete a project. The people on the project staff that provide diverse technical expertise must be developed into an effective team. Although each person provides work in his or her area of expertise, the work that is provided by each must be collectively directed in a common effort and in a common direction. 19

FUNCTIONS OF MANAGEMENT CONTROLLING Controlling is the establishment of a system to measure, report, and forecast deviations in the project scope, budget, and schedule. The purpose of project control is to determine and predict deviations in a project so that corrective actions can be taken. Project control requires the continual reporting of information in a timely manner so that management can respond during the project rather than afterwards. Control is often the most difficult function of project management. 20

21 Project Planning vs Project Scheduling  What is Project Planning ? o Process of selecting a method/ order of work to be used on a project among the various methods/ sequences possible.  What is Project Scheduling ? o Determination of the timing and sequence of operations in the project and their assembly to give the overall completion time.

 Project Planning Objectives o What o How o Who  Project Planning is Making Decisions Project Planning Objectives

 Fundamental to the Planning Process is a Chain of Following Operations o Information Search and Analysis o Development of Alternatives o Selection of Alternatives o Execution and Feedback Project Planning Operations

 Foundation for Several Other Related Functions i.e. Estimation, Scheduling, Project Control, Claims  Planning Process is Generally 80% Memory of Historic Procedures and 20% Creative Thoughts.  Baseline for Project Control  Owning of a Project Plan Project Planning Fundamentals

CHARACTERISTICS OF A GOOD PLAN Be based on clearly defined OBJECTIVES Provide an appropriate WORK BREAKDOWN STRUCTURE Allocate RESPONSIBILITY clearly Provide detailed TARGETS / OBJECTIVES / ESTABLISH STANDARDS Be APPROPRIATE Be PRACTICABLE Be FLEXIBLE 25

CHARACTERISTICS OF A GOOD PLAN Be DEFINITE Be ORDERLY Provide CONTINUITY OF WORK Provide a BALANCE OF WORK where possible EXPLOIT E EXISTING RESOURCES to the maximum Have CONSULTED with all interested parties, and APPROVAL obtained. 26

 Define and Explain Terms “Planning and Scheduling”  Prepare a Plan for Your Choice of Activity. Document your Assumptions Concerning Resources, Sequence, and Timings.  Examples of Activity are: o Building your Home o Buying or repairing your Car o Opening your new Business o Building a new road Assignment 1