MASSACHUSETTS INSTITUTE OF TECHNOLOGY

PROJECT EVALUATION AND MANAGEMENT (1.011/1.S980)

Spring 2016
Lectures: TR 2:30-4 pm, room 5-134
Recitations: F 12-1, room 5-217

http://stellar.mit.edu/S/course/1/sp16/1.011/
Instructor: Professor Joseph Sussman
Teaching Assistant: Scott Middleton

Professor Joseph Sussman, 1-163, Ph.# 3-4430, sussman@mit.edu,

Office hours by appointment please send me an email and well set it up
Scott Middleton, 1-151, smiddle@mit.edu
Office hours: Mondays and Fridays: 1:00 p.m. 2:00 p.m. (also by appointment)
Number of Units: 3-1-8
Subject Description: Introduction to engineering projects as complex sociotechnical systems,
considering economic, financial, social and environmental influences and multi-disciplinary approaches
for their analysis, design, construction, and management. Applies techniques such as benefit-cost
analysis and lifecycle costing to develop a better understanding of these systems. Students work in
teams on a term project studying a large-scale infrastructure project or other large-scale project in
depth. Instruction and practice in oral and written communication provided.
Prerequisite(s): Permission of instructor
Readings
Texts: There is no required text. Two excellent texts we will draw upon are as follows:
1. Carl Martland, Toward More Sustainable Infrastructure: Project Evaluation for Planners and
Engineers. John Wiley, 2011
2. Richard Zerbe & Dwight Dively, Benefit Cost Analysis in Theory and Practice. Addison-Wesley
Education Publishers, Inc. 1993.
Excerpts from these texts are posted to Stellar. These texts are also available on course reserves at
Barker Library. Other readings will be posted on Stellar, or (occasionally) distributed in class
Main themes in this course:
Why large-scale projects infrastructure and others are different and important
How does one think about sustainability economy, environment and equity
Large-scale project evolution
Megaprojects
Project funding
Project evaluation deciding whether or not to build:
o Considering multiple criteria, multiple stakeholders, complexity, uncertainty
o Quantitative tools such as Benefit-Cost Analysis (BCA) and discounted cash flows (DCF)
how to use them, strengths and weaknesses
o Public vs. private projects

Evaluation is various contexts (developing vs. developed countries, traditional

infrastructure vs. high-risk start-up, etc.)
Project management getting the project built
o Leadership and strategy
o Obtaining and managing funds
o Quantitative tools such as Critical Path Method (CPM), PERT, Earned Value Analysis
(EVA)
o Construction safety
How to handle uncertainty in all of the above
Ethical considerations in all of the above
o

Application Blocks
International multi-modal freight transportation with urban implications (i.e., Panama Canal
expansion, Port Miami Tunnel, Atlantic Coast ports)
High-quality surface transportation (i.e., high-speed rail, maglev)
Learning Objectives:
Upon completion of this class, students should be able to:
1. Effectively use basic engineering economics tools to evaluate major infrastructure and other
projects
2. Understand when to complement this basic analysis with more sophisticated tools
3. Understand some ways in which project performance can be measured and improved
4. Understand the role of risk and uncertainty in project evaluation
5. Do an end-to-end project evaluation
6. Understand basic tools in management of projects and how and when to use them
7. Observe an improvement in your communications skills: writing, speaking, preparing
presentations
Teaching modalities:
The intent is that the classes should be as interactive as possible. We will try to avoid we lecture, you
listen as much as we can. Active participation in class is encouraged.
In lectures
Methods and concepts
Building a glossary of key words and phrases
Set-piece classes to illustrate and expand upon methods and concepts
Reports From The Front (RFTF)discussion of current events of relevance to 1.011/1.S980, with
articles distributed in advance via Stellar
Current issues to track throughout the term: Bostons Green Line Extension (GLX), Global Climate Change
(GCC), perhaps others
Also, we want you to learn from each other -- student project presentations will comprise the last
several classes
In recitations
Review and clarification of methods and concepts
Discussion of problem sets / quiz / term projects
Project work and mini-presentations
Occasional lecture catch-up

Academic Honesty:
The MIT Department of Civil and Environmental Engineering adheres to the strictest standards of
academic honesty. An important aspect of achieving these standards is to be sure that students are
aware of expectations of faculty in regards to academic honesty. This statement is an attempt to clarify
our expectations in this subject.
Assignments: Assignments performed by students for submission have a dual purpose. They are
intended as educational devices, including the teaching of skills such as working in teams. They are also
evaluation tools for the faculty in judging the quality of performance of individual students. Our policies
are intended to balance these two purposes and, unless otherwise stated, apply to all assignments.
Students taking this class can work together to conceptualize general approaches to assignments.
However, unless otherwise specified for a particular assignment (e.g. term paper description above), the
work you submit should be done completely on your own. This includes text, numerical calculations,
mathematical derivations, diagrams, graphs, computer programs and output, references, and any
written source you use in your submission. It is inappropriate to use assignments submitted in previous
years as a source, or to use answers that may be found on the Internet.
Exam: There is one mid-term exam for this class. All work on the exam should be performed only by you.
If you have any questions about how these academic honesty policies relate to a specific situation, you
should speak to Professor Sussman for clarification.

Schedule Spring 2016

DATE

2/2

2/4

DAY

TU

TH

INSTRUCTOR

TOPIC

READ BY DATE

ASSIGN OUT

ASSIGN IN

TERM PROJECT

Sussman

Introduction to
1.011/1.S980;
Large-scale
projects:
Infrastructure and
otherwise

--

1) SelfIntroductions
2) Set-piece 1
(based on
Whites paper on
history of US
transportation
infrastructure)

--

--

Sussman

Sustainability;
Infrastructure
Interdependencies

Florman (T1)*;
ORoarke (T2);
Martland Chap. 4
(T3)

--

SelfIntroductions;
Florman 1-page
Response
(both due 11:59
pm. on 2/3)

--

--

--

R1

2/5

FR

Lane

2/9

TU

Sussman

CI-M: How to
approach Setpiece 1
Set-piece I US
History of
Transportation
Infrastructure

2/11

TH

Sussman

Deciding Among
Alternatives

R2

2/12

FR

Sussman

Deciding Among
Alternatives

2/16

TU

2/18

TH

Sussman

Uncertainty; Risk;
Megaprojects/
China

--

Whites paper for

Set-piece I

--

Set-piece 1
(3-pager due
11:59pm on 2/8)

--

Teaching Note on
Choosing Among
Alternatives (T2);
Zerbe Chap. 9 (T2)

Quant 1

--

--

--

--

--

--

Flyvjberg 1-page
response
(due 2/17 at

--

NO CLASS (MON schedule)

- Flyvjberg (T1);
Davidson (T2);
-FT: Monumental

Ambitions (T2);
Atlantic:
Megaprojects (T2)

11:59pm)

R3

2/19

FR

TBD

TBD

--

--

--

--

2/23

TU

Rick
Schuhmann

Uncertainty

TDB

--

--

Project teams of
2 formed

Zerbe Chap. 9 (T2)

Quant 2

Lecture takeaway from

Schuhmann;
Quant 1 (both
due before noon
recitation 2/26)

--

--

--

--

--

TBD

--

--

--

TBD

--

--

--

TDB

--

--

--

TDB

--

--

Kanter : MOVE,
Chapter 6 (T2)

Set-piece 2
Scenario

On-Going
Meetings with

2/25

TH

Sussman

Benefit/Cost
Analysis and
related concepts
(BCARC); time
value of money,
discounting

R4

2/26

FR

Middleton

Quant 1 Review

3/1

TU

Sussman

3/3

TH

Sussman

R5

3/4

FR

Sussman/
Middleton

10

3/8

TU

Sussman

11

3/10

TH

Sussman

BCARC: Project
Context startups
vs infrastructure
BCARC: Project
Finance; salvage
value; Project
Context energy
generation
BCARC: Project
Context -Developed vs.
Developing
Countries
BSARC in unusual
circumstances:
Global Climate
Change;
Manhattan
Project; Quabbin
Reservoir
Infrastructure
Application I.1

R6

3/11

FR

Sussman

12

3/15

TU

Westrom

13

3/17

TH

Sussman

Miami/ Panama
Canal:
International
Implications
Infrastructure
Application I.2:
Miami/ Panama
Canal urban
implications
Washington DC
soccer stadium
and related
infrastructure
Set-piece II
Scenario Planning
exercise
CI-M preparing a
project description

R7

14

15

3/18

FR

3/22
3/24
3/25

TU
TH
FR

3/29

TU

3/31

TH

Panama Canal - TBD

Planning

--

--

Quant 2

TBD

--

--

Set-piece 2
3-pager; (due
3/16, 11:59p)

Schwartz (T2);
Roxburgh (T2)
TBD

TBD

Lane

Teams and
Teaching Staff on
Topic Selection

Lecture takeaway on
Westrom class,
by noon
recitation

--

Spring Break
Spring Break
Spring Break
Sussman

Rick Schuhmann

Infrastructure
application II.1:
HSR in NEC
Introduction to
project
management:
CPM, PERT,
EVA and other
techniques

TBD

TBD

P1 Project
Description (2pager) this will
be the writerewrite
assignment
required by
CI-M

R8

4/1

FR

Middleton

16

4/5

TU

Sussman

TH

Sussman/
Moody

17

R9

4/7

4/8

FRI

Sussman/
Middleton

Sussman/
Heywood
18

4/12

TU

19

4/14

TH

Travis Wanat

R10

4/15

FRI

Travis Wanat

4/19

TU

4/21

TH

R11

4/22

FR

Infrastructure
Application II.3
HSR in NEC:
Stakeholders
Term Project
Minipresentations
Infrastructure
Application II.4
Penn Station
and Hudson
River Tunnels
MIT Nanocenter
Field Trip:
MIT Nanocenter

TBD

TBD
P2 Term Project
Minipresentations (2
slides, max)
P3 Progress
Report: CPM
applied to your
project work;
data availability
issues

TBD

TBD

NO CLASS Patriots Day Weekend

Sussman

20

1-hour quiz
open book and
notes
Infrastructure
Application II.2
HSR in NEC

Sussman

Dealing with
uncertainty:
real options
and portfolios

Ethics; Flint MI
water quality;
MIT divestment

Teaching note on
Real Options Analysis
(T2)

Lecture/ Field
Trip take-away
on Nano-Center

P4: Progress
Report:
Stakeholder
analysis and
project finance

Contemporary news
reports and opinions

Sussman

21

4/26

Mock bureaucracy
(T1)
Articles on Massey
mine disaster (West
Virginia 2010) (T2)

TU

Sussman
22

R12

4/28

4/29

Safety: Coal
mine safety

TH

FR

Suzanne Lane

Sussman
23

5/3

TU

24

5/5

TH

R13

5/6

FR

25

5/10

TU

26

5/12

TH

Class
Sussman,
Middleton, Trice
Sussman,
Middleton Trice
Sussman

Corporate
Social
Responsibility;
Checklists
Ideas on
PowerPoint
presentations
and poster
design
Leadership and
organizations

Poster session
(with invitees)
Term Project
Presentations
Term Project
Presentations
Wind-up;
Where we have
been this
semester;

Porter (T1)
Gawande (T2)

1-pager on Mock
Bureaucracy due
4/25, 11:59pm

1-pager on
Porter due on
4/27 at 11:59pm

P5: Progress
Report: What is
standing
between your
team and a firstrate term project
(<1 page)? After
written
submissions,
teams meet
individually with
teaching staff
Meetings with
Michael Trice on
organizing a
project report,
through 5/3

TBD

Gardner, Howard
(T1)
Gardner, John (T2)

1-pager on
Gardner, Howard
excerpt, due on
5/2 at 11:59pm
P6

P7

Student
evaluations of
1.011

*Key to Readings and Assignments:

T1: 1-Pager submitted by 11:59pm the day before the reading will be discussed. Should include a brief summary of the reading and a few questions
you think would be interesting to discuss in class. Counts towards class participation.
T2: No written submission required, but read and come prepared to participate in class discussion
T3: Optional reading, posted for your convenience; lecture material may be drawn from this reference
Reports from the Front (RFTF): We send out current articles from time to time at least 24 hours before class. We will discuss the article for the first
10-12 minutes of class. No written submission required. Counts toward class participation
Set piece classes (2) are classes devoted to a full-length in-class exercise relating to a 1.011 theme. Associated with each is a reading. You will be
asked to write a structured 3-pager in preparation for the class to be submitted at 11:59 p.m. the day before class.
Quant assignments (2) are traditional problem sets, designed to enhance your understanding of quantitative concepts introduced in class (Choosing
among alternatives, benefit-cost Analysis, discounted cash flow, dealing with uncertainty, etc.).
Lecture takeaways: <1 page on main points you took away from a lecture (usually a guest lecture)
The term project is a study of a historical or contemporary large scale project infrastructure or otherwise -- performed by pairs of students
(usually). P1 through P7 represent milestones along the way. Please see separate handout for details.
The midterm will be a 1-hour, open book and notes, in-class examination
Grading Weights

Set pieces (2)

Quant assignments (2)
Midterm
Term project
Class participation

10%
15%
10%
45% (written report 30%; poster 5%; Oral report including PowerPoints 10%)
20% (in-class participation including set-piece participation, RFTFs, T1 written assignments, LT assignments)