PROJECT PLANNING AND

MANAGEMENT
CE - 403

Dr. Md Reaz A Mullick

SYLLABUS

 Principles of Management
 Principles of Construction Management

 Human factor - Psychology in administration

 Project evaluation (Engineering economics)

 Cash flow
 Pay back period
 Internal rate of return
 BCR

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 REFERENCE BOOKS

The Process of Management --Willian H. Newman

2. Introduction to Operations Research- Hillier & Liberman
3. Project Management Techniques - A.O. Awani
4. Construction Planning, Equipment and Methods - Peurifoy
5. Materials Management & Inventory Control - A.K. Datta
6. Project Management - S. Chowdhury
7. Construction Planning & Management - Gahloj & Dhir 1992
8. Practical Project Management – Ghattas and McKee

IMPORTANCE OF ENGINEERING

“The story of civilization is, in a sense, the story of

engineering - that long and arduous struggle to
make the forces of nature work for man’s good.”

Secretary General of the 1992 United Nations

Conference on Environment and Development,
said, "Sustainable development will be impossible
without the full input by the engineering profession

In a certain important sense engineering is rather

the art of non-constructing; or, to define it rudely but
not inaptly, it is the art of doing that well with one
dollar, which any bugler can do with two after a
fashion – Wellington, 1887.

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 IMPORTANCE OF CIVIL ENGINEERING

 “Go for civil engineering, because civil engineering is the

branch of engineering which teaches you the most about
managing people. Managing people is a skill which is very,
very useful and applies almost regardless of what you
do.”― Sir John Harvey Jones

THE IMPORTANCE OF CIVIL ENGINEERING

LEADERSHIP IN THE GOVERNMENT SECTOR

IMPORTANCE OF CIVIL ENGINEERING

 If civil engineers are to

regain their leadership roles
as directors of public works,
educational changes are
necessary.

 In the future, engineers

must develop management
skills and managers must be
skilled in technical areas to
serve society adequately

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 CIVIL ENGINEERING ETHICS AND PUBLIC TRUST

o The public's main interests in public works concern the prudent

expenditure of their funds for the provision of high-quality
infrastructure facilities.
o Thus, their interests closely match those of the public, which
deserves competent, efficient leadership by dedicated career-
oriented professionals trained to handle critical public works
responsibilities.
o Because civil engineers have specialized training and are
frequently in a position to know the most about government
projects, they have the potential to provide the strongest
leadership for those projects.
o Civil engineers are trained to make rational decisions, so their
appointment to leadership posts in government results in more
realistic practical solutions to problems and gives them some
influence on how funds are distributed and disbursed.

MANAGEMENT IN CIVIL ENGINEERING

An update of the Results of the 1995 “Civil Engineering. Education
Conference” (Journal of Management in Engineering. Dec.1996)
Consensus !
“Civil Engineering Students need More Management Education”
Identified Four Attributes to Foster

• “an engineer is hired for his or her

Technical Technical skills, fired for Poor skills
Competence and promoted for Leadership &
Management skills”

Communication • Written as well as oral expressions;

Negotiations, Decision making,
skills Contract and Legal issues.

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 MANAGEMENT IN CIVIL ENGINEERING

•Business Management: Leadership,

Resource allocation, Financial etc
Management
skill •Project Management: Planning, Design,
Construction Maintenance phases, Tools and
Techniques, Human Needs and Behaviour etc.

•People and social skills, Social behaviour

Team Work
•Training, quality issues, conflict
resolution, team building

WHAT IS A PROJECT

“Unique process consisting of a set of coordinated

and controlled activities with start and finish dates,
undertaken to achieve an objective conforming to
specific requirements, including constraints of time,
cost, quality and resources”

 A Project is a planned set of activities

 A Project has a scope
 A Project has time, cost, quality and resource
constraints

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 WHAT IS PROJECT MANAGEMENT

 The art of organising, leading, reporting and completing

a project through people

● A project is a planned undertaking

● A project manager is a person
who causes things to happen
● Therefore, project management is
causing a planned undertaking to
happen.

A MANAGER

 Human work classification

Decision Making (DM)
Operative Work (OW)

 Total working time of an individual

 = Time spent on DM + Time spent on OW

 A manager can be defined as some one in an organization

who spends certain amount of “Working” time in decision
making involving other people in the organization

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 ROLE OF A PROJECT MANAGER
A Good Project Manager
 Takes ownership of the whole project
 Is proactive not reactive
 Adequately plans the project
 Is Authoritative (NOT Authoritarian)
 Is Decisive
 Is a Good Communicator
 Manages by data and facts not uniformed optimism
 Leads by example
 Has sound Judgement
 Is a Motivator
 Is Diplomatic
 Can Delegate

A MANAGER

Some see the manager's job in three phases

Planning? Organizing? Controlling?

Some see the job in five phases:

Planning Organizing Staffing Directing Controlling

With the manager motivating or coordinating in each of

these five phases

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 PRINCIPLES AND CONCEPT OF MANAGEMENT

 ORGANISATION:
 (business, social, government, religious etc.) is a collection of
people with a common goal.
 The basic function of organization is to transform certain available
inputs (manpower, money, materials, facilities, energy, information
etc.) into some form of desirable outputs (products and / or
services) within a given environment (social, political, legal,
geographic etc.) through the utilization of existing technology
(software and hardware).
Input  Transformation  Output
 Management provides the mechanism for achieving this
transformation through a process of “rational” decision
making.

ADMINISTRATION VS MANAGEMENT
Administration Management

• Administration has to do with • Management is the act or

the setting up of objectives and
crucial policies of every
organization.
function of putting into
practice the policies and
plans decided upon by
the administration.

Administration Management
- Static - Dynamic
- Protective Vs - Creative
- Bureaucratic - Democratic
- Follows - Leads
- Rules - Goals

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 MANAGEMENT ASPECTS

• Production mgt, Manufacturing mgt,

Man/Machine aspect
Construction mgt etc

• Inventory mgt, Quality mgt, Material

Man/Material aspect
handling mgt. etc

Personnel mgt, Human resources mgt,

Man/Man aspect Labor mgt etc

• Sales mgt, Distribution mgt, Financial

Business aspect
mgt, Marketing mgt.

ELEMENTS OF MANAGEMENT PROCESS

•Deciding in advance what, when, how, who and by
whom is to be done.
Planning • Activities: Forecasting, Setting Objectives,
Scheduling, Budgeting, Policy Making

•Formulating a Powerful System

Organizing • Activities: Structuring, Integrating, Developing
personnel

• Managing and Running an Organization

Activating • Activities: Assigning, Communicating, Coordinating

•Inducing People to be Productive in an Organization

Motivating • Activities: Leading, Directing, Guiding etc.

• Results of an operation conform as closely as

possible to established plan
Controlling • Activities: Establishing standards, Measuring
Performance.

Dynamic Interaction of Management Sub-Processes

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 Project formulation

KEY POINTS IN PROJECT SET-UP

o Create Project Management Plan (PMP)

o Be clear of scope and objectives
o Establish clear statement of what is to be done
(WBS)
o Establish Risks to be Managed
o Establish Costs and Durations
o Establish Resources Required

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 PROJECT MANAGEMENT PLAN - PMP
 Master Document for Project
 Defines the following:-
 Project Objectives, Scope, Deliverables
 Stakeholders (Internal & External)
 Work to be done (WBS)
 Project Organisation and Resources (OBS)
 Project Costings (CBS)
 Project Schedule
 Procurement/Contract Strategy
 Risk Management
 Quality management
 Change Management

PROJECT PLANNING

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 PROJECT PLANNING
 Adequate planning leads to the correct completion
of work

PLANNING
 Inadequate planning leads to frustration towards the end of
the project & poor project performance

Project Start Project End

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 WHAT IS TO BE DONE
WORK BREAKDOWN STRUCTURE - DEFINITION

 “A Work Breakdown Structure (WBS) is a hierarchical

(from general to specific) tree structure of deliverables
and tasks that need to be performed to complete a
project.”
 Lowest Level of WBS is the Work Package (WP)
 WP can be clearly defined allowing package to be costed,
scheduled and resourced
 WP contains a list of Tasks to be Performed that form the basis
for the Schedule
 WP allows assignment of responsibilities (Work Package
Manger, WPM)

WORK BREAKDOWN STRUCTURE (WBS)

 The Work Breakdown Structure is the foundation

for effective project planning, costing and
management.
 It is the most important aspect in setting-up a
Project
o It is the foundation on which
everything else builds

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 PROJECT RISK MANAGEMENT
 “Project risk is an uncertain event
or condition that, if it occurs, has
a positive or negative effect on a
project objective”

OR

 “A combination of the probability

of a defined threat or opportunity
(Likelihood) and the magnitude of
the consequences of the
occurrence (Impact) defines a
Risk Index”

RISK IMPACT

Threat → Scope → Poor Quality Product

Threat → Schedule → Late Delivery
Threat → Cost → Overspend

 In addition there are health, safety and environmental

threats that must be managed (CDM Regulations)

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 RISK MANAGEMENT PROCESS

 Identify Risks
 Assess likelihood and impact

 Rank risks and prioritise

 Define risk management approach & actions

 Implement actions

 Monitor & review

PROJECT MONITORING AND CONTROL

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 PROJECT MONITORING

 Typical Monitoring Activities

 regular reviews of progress against schedule using WBS as
basis (Plan against Baseline)
 regular review of actual costs against budgeted costs and
Earned Value at WBS level
 regular review of resource loading
 regular progress meetings with project team
 regular meetings with contractors
 production of periodic progress reports
 risk reviews
 inspections/ audits

PROJECT CONTROL

 Typical Control Activities

 assign responsibilities at Work Package level
 staged authorisation of work to be done
 staged release of budgets (staged release of WBS(e) numbers)
 ensure PM has a ‘Management Reserve’ under his control
 seek corrective action reports when WPs go ‘off track’
(overrunning or overspending)
 release Management Reserve carefully

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 PROJECT MONITORING AND CONTROL SUMMARY

 Monitor against the plan – status regularly

 Take a factual approach to decisions

 Identify management action early

 Check that defined controls are being applied – correct if

necessary
 Apply change control

DESIGN MANAGEMENT

 Design takes place as part of a project

 Design Management is part of Project Management

 Design Management considerations must be

included in the PMP

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 DESIGN MANAGEMENT ACTIVITIES

 Sub-divide Design Stages

 Sub-divide Tasks
 Define Constraints and Interfaces
 Formally Initiate the Design
 Ensure Design conforms to H&SE and CDM Requirements
 Hold Design Reviews (Peer review)
 Formally Approve Design

DESIGN STAGES

 Conceptual Design
 Scheme Design

 Detailed Design

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 SAFETY & ENVIRONMENT

 Need to ensure that safety & environmental issues receive

proper consideration as design develops
 Involve the right people from the start
 Systematically identify issues – Hazards/Risks, Environmental
Aspects & Impacts
 Carry out rigorous reviews at each design stage
 Control Design Changes
 MUST take note of CDM Regulations

CDM REGULATIONS

 CDM - Construction (Design & Management)

 Regulations recently updated

 Now must have someone in EACH Project

Responsible for CDM

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 DESIGN CHANGE CONTROL

 Needs to be a formal and defined procedure

CONFIRM COMPLETION

 Ensure design records are complete and accurate

 Ensure any outstanding actions or issues are
addressed
 Ensure Maintenance Records are produced

 Ensure User Manuals are produced

 Hold a formal Post Project review

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