PLAN

INTRO

10

CRASHING THE PROJ

DECISION TREES

11

RESOURCE LVL, FIN MGMT

OF PROJ

LINEAR PROG

12

OHT, REVISION

PROJ,OP MGMT, RFP, PROJ

PROPOSSAL

13

COMM MGMT, CLIP, QUIZ

WBS, OBS AND RAM, QUIZ

14

TQM, KANO MODEL, QUIZ

OHT, REVISION

15

RISK MGMT, QUIZ

SCHEDULING, GANTT
CHARTS

16

PROD, HRM, SCM

CPM

17

MISC EM CONCEPTS,
REVISION

PERT

18

FINAL EXAM

There will be surprise quizzes, assignments. Students suggestions are

welcome for incl any other useful/interesting topic within purview of
course.

WHAT IS A PROJECT?
A TEMPORARY ENDEAVOR UNDERTAKEN
TO

CREATE

UNIQUE

PRODUCT

SERVICE.

OR

Multi
Tube
Storey
Train Flyover System in Singapur

Under Ground Hotel

12 Km Long Bridge in Sea in China

Under Water Hotel

PROJECT
A PROJECT CAN BE CONSIDERED TO BE ANY SERIES
OF ACTIVITIES AND TASKS THAT :
HAVE A SPECIFIC OBJECTIVE TO BE COMPLETED
WITHIN CERTAIN SPECIFICATIONS (SCOPE)
HAVE DEFINED START AND END DATES (SHEDULE)
HAVE FUNDING LIMITS (BUDGET)
CONSUME RESOURCES (EQUIPMENT, MATERIAL etc)
4

Project and Operations

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

Projects
Temporary and Unique
Attain objective and then terminate

Operations
Ongoing and repetitive
Sustain the business
Adopt a new set of objectives and the
work continues.

PROJECT OBJECTIVE
AN OBJECTIVE IS DEFINED AS THE TARGET.
IT SPECIFIES THE CRITICAL RESULTS THAT MUST
BE ACHIEVED UPON COMPLETION OF A PROJECT.

PROJECT SCOPE
THE WORK THAT MUST BE DONE IN ORDER TO
DELIVER
A PRODUCT/SERVICE
WITH
THE
SPECIFIED FEATURES AND FUNCTIONS.

PROJECT SCHEDULE
PROJECT SCHEDULE SHOWS THE TIME FRAME OF
START AND COMPLETION DATES OF ACTIVITIES
CONSTITUTING THE PROJECT.

PROJECT COST
AN ESTIMATE OF THE PROJECT COST ENABLES
THE
ORGANIZATION
TO
EVALUATE
THE
FEASIBILITY OF THE PROJECT AND TO MANAGE
THE CAPITAL REQUIREMENTS OF THE PROJECT.

RESOURCE REQUIREMENTS
ALL TYPES OF RESOURCES SHOULD BE ESTIMATED AND
THE AVAILABILITY OF THE REQUIRED RESOURCES FOR
PROJECT COMPLETION MUST BE WORKED OUT.

THE TERM RESOURCE IS USED FOR THOSE ITEMS THAT ONE

CAN RENT, HIRE OR BUY IN ORDER TO MEET THE GOALS AND
OBJECTIVES OF A PROJECT.
RESOURCES AVAILABLE TO THE PROJECT MANAGER ARE:

PERSONNEL
EQUIPMENT
MATERIALS
INFORMATION / TECHNOLOGY
FACILITIES
MONEY etc

PROJECTS ARE EVERYWHERE, THEY ARE AN INTEGRAL

PART OF MODERN LIFE. LIKE

INDUSTRIAL

CONSTRUCTION

EDUCATIONAL

GOVERNMENTAL

DEFENCE

ENVIROMENTAL

SOFTWARE DEVELOPMENT
SECTORS HAVE DIFFERENT TYPES OF PROJECTS.
9

PROJECT MANAGEMENT (PM)

WHY?
DOING MORE WITH LESS
MAXIMUM AMOUNT OF CHANGE
USING MINIMUM AMOUNT OF
RESOURCES

10

Cost and Time Overrun in Construction

Projects
A
cost
overrun
is
defined
as
difference in cost between the final
cost of the project and the contract
award amount
Time overrun is difference of planned
and actual time of completion.
9 out of 10 projects have cost/time
overrun.
Overruns of 50 to 100 percent are
common.
An industry study by the Standish Group
(2004) found that average cost overrun
was 43 percent, 71 percent of projects
over
budget,
time.
Data
Standish were
Group (2004)
and Bramble,
Barry B.over
and Callahan,
Michael
T. (1987)
collected
countries
Construction
Delay Claims,from
Wiley Law 20
Publications,
2nd Edition, of
U.S.A 5

Examples of Cost and Time Overrun in Some

Famous Construction Projects
The Big Dig or Central Artery/Tunnel Project USA

A 5.6 km tunnel, The

Big Dig was the most
expensive
highway
project in the U.S.
Initial cost -$2.8 billion
in 1985.
Final cost
- $14.6
billion in 2007.
Cost overrun - $11.8
billion
Delay 12 years.
Reasons
Land acquisition
Removal/relaying of
existing/
new
services.
Design and scope
Source: The
Big Dig Central Artery/Tunnel Project (CA/T) Interstate Tunnel 90
problems.
USA http://en.wikipedia.org/wiki/File:Tunnel-large.jpg
Finances problem

The Sydney Opera House

The Sydney Opera
House is a multivenue performing
arts centre in Sydney
Australia
Initial cost in 1957
was $7 million.
Final cost
in 1973,
was $102 million.

Cost
overrun-$95
million
Delay 10 years
Reasons
Design and scope
Source: The
Sydney Opera House Australia
problems
http://upload.wikimedia.org/wikipedia/commons/3/38/Sydney_opera_house
Finances problem
_side_view.jpg
and Jones, Peter: Ove Arup: Masterbuilder of the Twentieth Century. Yale

The Channel Tunnel

The Channel Tunnel is a

50.5-kilometre (31.4mi)
under sea rail tunnel
linking United Kingdom
with France beneath the
English channel at the
strait of Dover.
Initial cost in 1975 was
2600million
Final cost in 1994 was
4650million
Cost overrun- 2050
Million
Delay- 18 years
Reasons
Inconsistent
government policies
(UK & France)
Source:The Channel Tunnel Britan-France
Inconsistent
cash
http://upload.wikimedia.org/wikipedia/commons/4/4f/Course_Channeltunnel_e
flow
n.svgWilson pp. 1421 and Gilbert, Jane (2006-12-01). "`Chunnel' workers
Geological/design
link Franceproblems
and Britain". The Daily Post (New Zealand) (APN New Zealand Ltd

The Scottish Parliament Building

The Scottish Parliament

Building is the home of
the Scottish parliament
at Holyrood.
Initial cost in 1999 was
40 million.
Final cost in 2004, was
414 million.
Cost overrun- 374
million
Delay 3 years
Reasons

Corruption
Inconsistent Cash flow
Design problems
Inconsistent policies
Land acquisition
Source:Isobel White; Iqwinder Sidhu.
"House of Commons Research Paper - Building the Scottish Parliament, Th
e Holyrood Project"

The Olympic Stadium

The Olympic Stadium is

a multi purpose stadium
in the Montreal Canada.
Initial cost in 1973 was
C$134million .
Final cost in 1987, was
C$925 million.
Cost overrun- C$791
million
Delay 11 years
Reasons

Technical/design
problems
Inconsistent cash flow
Consultant
Source:The
Olympic Stadium Montreal, Quebec, Canada
incompetency
http://upload.wikimedia.org/wikipedia/commons/a/a9/Le_Stade_Olympi
que_3.jpgESPN.com: MLB - Merron: The Disastrous 'Big Owe

The Hallands Tunnel

The Hallands Tunnel also

known as the Hallands
Ridge Tunnel or Scanlink, is
a 8.5km railway tunnel
under
construction
in
Sweden.
Initial cost in 1992 was SEK
1 billion .
Final cost in 2015, will be
more than SEK 10 billion .
Cost overrun- SEK 9 billion
Delay 20 years
Reasons
Goelogical design
problems
Wrong constructional
material usage
Contractor and
consultant incompetency

Source: The Hallands Tunnel

http://upload.wikimedia.org/wikipedia/commons/4/4a/Hallandsastunneln01_2
006-07-08.jpg.

Denver International Airport

Denver
International
Airport
the largest
international airport in
the USA, and the third
largest
international
airport in the world.
Initial cost in 1989 was
$2800million .
Final cost in 1995, was
$4800 million.

Cost overrun- $2000

million
Delay 2 years
Reasons
Poor
planning/estimation
Repeated
Source: Denver
International design
Airport USA
changes
http://upload.wikimedia.org/wikipedia/commons/8/87/DIA.jpgDenver
Inconsistent
cash
International
Airport Construction
and Operating Costs". University of
flow
Colorado at
Boulder Government Publications Library. 1997-07-05.

Eastern Span Replacement Of The San Francisco Oakland Bay Bridge

Work on the eastern

span replacement of
the
San
Francisco
Oakland Bay Bridge due
to
damage
in
earthquake.
Initial cost in 1997 was
$1100 million .
Final cost in 2005, was
$6200 million.
Cost overrun- $4100
million
Delay 6 years
Reasons
Design Problems
Wrong estimation
Cash flow problems
Material prices hike

Source:Steve Rubenstein and Jim Herron Zamora (2004-12-16).

"Oakland takes dim view of bid to rename Bay Bridge". San Francisco
Chronicle. And

Ghazi Barotha Hydropower Project Pakistan

It is a run of river
project for electricity
generation with a 52 km
long
power
channel
near Attock Pakistan.
Initial cost in 1998 was
Rs 90000 million .
Final cost in 2004, was
Rs128000 million.

Cost overrun- Rs38000

million
Delay 6 years
Reasons
Inconsistent
cash
flow
Consultant
&
contractors
incompetency
Non availability of
machinery
Source:
The Ghazi
Barotha Hydropower project Power channel and Power
Land
acquisition
House
Corruption