Project Management

Chapter 1

INTRODUCTION

Introduction
Organizations perform work. Work generally involved either operations or projects, although the two may overlap. Operation and projects share many characteristics; for example, there are:

Performed by people Constrained by limited resources Planned, executed and controlled.

Introduction
Operation and projects differ primarily in that:
Operations are ongoing and repetitive While projects are temporary and unique.

Project Definition
A project can be any new structure, plant, process, system or software, large or small, or the replacement, refurbishment, renewal or removal of an existing one. It is oneoff investment.
Project: is a temporary endeavor undertaken to create a unique product or service.This undertaking must have a defined scope, a specific beginning, and end, and produce some type of deliverable to an internal or external customer. A project has specific goals (implicit and explicit) and defined roles and responsibilities.

What is Project Management?

Application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project.
From A Guide to Project Management Body of Knowledge 2000

An Art or a Science?
Applicable across all industries & organizations

What is Project Management?

"The planning, monitoring and control of all aspects of a project and the motivation of all those involved in it to achieve the project objectives on time and to the specified cost, quality and performance."
Source: BS 6079: 1996 Guide to project management

Project management is the overall planning, implementation, control and coordination of the project from inception to completion to meet define needs to the required standards within time and to budget
Source:Payne, Chelsom and Reavill. 1995 Management for Engineers

Why Project Management?

Companies have experienced:

Better control Better customer relations Shorter development times Lower costs Higher quality and reliability Higher profit margins Sharper orientation toward results Better interdepartmental coordination Higher worker morale
Chapter 1-10

Why Project Management?

Companies have also experienced some negatives:

Greater organizational complexity Increased likelihood of organizational policy violations Higher costs More management difficulties Low personnel utilization
Chapter 1-11

Project Management = Control

Controls
TIME COST QUALITY FUNCTION FEASIBILITY

TIME

COST
QUALITY

BALANCE

Scope of Project Management

1 2 3 4 5 6 7 8
9

Integration Management Scope Management Time Management Cost Management, Quality Management Human Resource Management Communications Management Risk Management Procurement Management

Project Management Responsibilities

Source: LJ Weber, W Reitheimer, AF Westgard & KO Hartley The Sponsors View Proceedings of the 9th Intl Seminar on Project Management by PMI, 1977, p.76

CULTURAL

PUBLIC SUPPORT

SOCIO-POLITICAL

RESOURCE ECONOMICS ENGINEERING

TRAINING

GOV RELATIONS FINANCING OPERATIONS

ENVIRONMENTAL

PROCUREMENT

CONSTRUCTION

Objectives of a Project
3 Project Objectives:

Performance Time Cost

Expectations of clients are not an additional target, but an inherent part of

the project specifications

Chapter 1-3

Objectives of a Project
3 Project Objectives:

Chapter 1-4

The Definition of a Project

Must make a distinction between terms:

Program - an exceptionally large, long-range objective that is broken down into a set of projects Task - set of activities comprising a project Work Packages - division of tasks Work Units - division of work packages

In the broadest sense, a project is a specific, finite task to be accomplished

Chapter 1-8

Characteristics of a Project
Have a purpose Have a life cycle Interdependencies Uniqueness Conflict

Chapter 1-9

PHASE VIII OBTAIN APPROVAL TO PROCEED

FIT-OUT AND COMMISSIONING Final Fit-Out Commission Services Opening Planning Tenancy Works Stocking and Opening

Project Phases
OBTAIN APPROVAL TO PROCEED PHASE V
DESIGN DEVELOPMENT Select and appoint architect Establish Team Progress Design Set Tender Parameters Define Control Mechanism Value management appraisal Planning Approval

PHASE VII
CONSTRUCTION Preliminary Access and Site Works Major Building Works Completion of Structure and Services Installation

PHASE VI
DETAILED DESIGN AND DOCUMENTATION Establish Working Details Develop Tender Documents Develop Construction Documents Approvals / Permits

PHASE III
PROJECT DEFINITION Define Organisation Define Communications Define control needs Define Project Staffing Define Design Requirements (Sketch Plans) Define Total Cost Budget Define Total Time Budget Review Feasibility Publish Brief

PHASE 11
FEASIBILITY STUDY Identify Options Define and cost options Strategic Planning Analyse commercial & functional objectives Review and Decide

PHASE 1
STATEMENT OF CLIENT NEEDS Define organisation Data Collection Corporate Objectives Operational Requirements Management Requirements

PHASE IV

IMPLEMENTATION AND CONTROL

Monitor Progress Monitor Costs Refine Budgets Review Feasibility EVALUATION DESIGN PROCEDURE FOR CAPITAL WORKS PROJECTS Status Report Cash Flow Forecasts Management Reporting

CONCEPT

CONSTRUCTION

POST COMPLETION

The Project Life Cycle

Stages of a Conventional Project:

Slow beginning Buildup of size Peak Begin a decline Termination

Chapter 1-12

The Project Life Cycle

Chapter 1-13

The Project Life Cycle

Time distribution of project effort is characterized by slow-rapid-slow

Chapter 1-14

The Project Life Cycle

Other projects also exist which do not follow the conventional project life cycle These projects are comprised of subunits that have little use as a stand alone unit, yet become useful when put together

Chapter 1-15

The Project Life Cycle

Unlike the more conventional life cycle, continued inputs of effort at the end of the project produce significant gains in returns

Chapter 1-16

The Project Life Cycle

It is essential for the Project Manager to understand the characteristics of the life cycle curve for his project
The distinction between the two life cycles plays a critical role in the development of budgets and schedules for the project
Chapter 1-17

The Project Life Cycle

Risk during project life cycle

With most projects there is some uncertainty about the ability to meet project goals Uncertainty of outcome is greatest at the start of a project Uncertainty decreases as the project moves toward completion

Chapter 1-18

Risk During Project Life Cycle

Uncertainty decreases as the project moves toward completion

Chapter 1-19

Summary
The three primary forces behind project management are:

1. The growing demand for complex, customized goods and services 2. The exponential expansion of human knowledge 3. The global production-consumption environment
Chapter 1-22

Summary
The three prime objectives of project management are:

1. To meet specified performance 2. To do it within specified costs 3. Complete on schedule

Terminology follows in this order: program, project, task, work package, work unit
Chapter 1-23

Summary
Projects often start slow, build up speed while using considerable resources, and then slow down as completion nears This text is organized along the project life cycle concept:

Project Initiation (Chapters 2-6) Project Implementation (Chapters 7-11) Project Termination (Chapters 12-13)
Chapter 1-25