CEN 451

PROJECT EVALUATION, PLANNING AND

MANAGEMENT

Introduction of Project Management

Instructor: Sanjoy Kumar Bhowmik

Acknowledged: Dr. Suvash Chandra Paul (Faculty,IUBAT); Keerti Bhusan Pradhan (Faculty-LAICO);
Dr. Abu Naser Chowdhury (Faculty IUT); Mr. Soumik Nafis Sadeek (Faculty,IUBAT)
 My Expectations From You

➢ Attendance
➢ Raise questions
➢ Group study
➢ No excuse (lectures, test, exam, assignment on time)
➢ No comparison

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 CEN 451: Course Outline
➢ Construction & project management; project characteristics
1st term
➢ Contract; work breakdown structure exam

➢ Project scheduling & control (PERT, CPM, PDM)

➢ Project crashing & resource allocation
Midterm
➢ Project quality control & assurance exam
➢ Inventory management
➢ Six sigma & Pareto’s law; construction safety; procurement;
Final exam
tendering/bidding method
➢ Project management economics e.g. cash flow, interest rate, NPV,
IRR,B/C ratio, etc.
➢ Milestone analysis; case studies 3
 Course Objectives
 Learn what project management is and the qualities of an effective
project manager.
 Understand the knowledge areas of project management and how
they can be applied to your project.
 Discover the phases of a project and what deliverables are expected
when.
 Identify a project’s key stakeholders.
 Understand the different types of business cases and how to create
a Statement of Work.
 Learn to be prepared for the unexpected by utilizing risk
management and change control.
 Learn how to organize project activities by creating a Work
Breakdown Structure.
 Create a network diagram to track your project’s progress.
 Learn budgeting and estimating techniques.
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 What is Project Management?
Project : A group of milestones or phases, activities or
tasks that support an effort to accomplish something

Management : is the process of Planning, Organizing,

Controlling and Measuring 5
 A project is any sort of planned undertaking, like
Personal projects:
obtain an MBA, write a report, plan a
wedding, plant a garden

Industrial projects:
construct a bridge, develop a
microchip, design a new car

Business projects:
develop a computer system, prepare
an annual report, set up a new office

 Generally projects are made up of a defined beginning, multiple

activities which are performed to fulfill a plan, and a defined end.
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 PROJECT...
❑ A collection of linked activities, carried out in an organized
manner, with a clearly defined START POINT and END
POINT to achieve some specific results desired to satisfy
the needs of the organization at the current time

In short, it is a series of activities and

tasks that have SCOPE TIME
➢SCOPE
➢TIME Project Triangle
➢RESOURCES

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RESOURCES
Phases of a Project

Phases of an Engineering Project

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Project Characteristics

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Responsibilities – Key Contractual Parties
 Owner: responsible for setting the operational criteria for the
completed project
 Designer: responsible for producing design alternatives,
computations, drawings, and specifications that meet the needs
of the owner
 Contractor: responsible for the performance of all works in
accordance with the contract documents prepared by the
designer.

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Project Management Team
 Owner: commits to invest in a project
 Investment Management Team: within owner’s
organization – provides overall project control (marketing,
finance, manufacturing etc.)
 Owner’sProject Manager: leads both design and
manufacturing/construction project managers
 WorkManager: design leaders and supervisors – their
communication is more horizontal than vertical

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Four Questions in Project Management
Throughout the project management process, four
questions must be addressed:
1. Who? - staff
2. Does what? - scope
3. When? - schedule
4. How much? - budget

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Steps of Project Management
1. Project definition – meet end-user’s needs
2. Project scope – meet project definition
3. Budgeting – match scope
4. Planning – strategy to accomplish the work
5. Scheduling – the product of scope, budget & planning
6. Tracking – ensure that project is progressing as planned
7. Close Out – final completion to ensure owner’s satisfaction

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Management Types
 Functional Management (or, Discipline Management)
 Coordinate repeated work of similar nature by the
same set of people
 Example: managing the engineering department
 Project Management
 Coordinate one-time work by a team of people who
often did not work together
 Example: managing construction of a power
substation

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 COMPONENTS OF A PROJECT

Project

Work Pr oduct Schedul e Task Partici pant

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A MORE COMPLEX MODEL
Equipme nt
Project
* Facilit y
Resourc e Fund
* Organi-
Work zation
Breakdo wn des- Work
Schedul e Structu re
cribes Package
con- *
* * sumes *
produce s Organiz ational
Outcome Work respon- Unit
* * sible plays *
depends for
Role
Set of Work Work
Product s Product Activit y Task Partici pant Staff

Interna l Project
Project Function Departm ent Team
Work Pr oduct Deliver able 16
 STATES OF A PROJECT…

GoAhead ScopeDe fined

Concept ion Start
do/Form ulateIdea
do/Cost -BenefitAnaly sis do/Infr astructure Se tup
Definit ion do/Skil l Identificat ion
do/Feas ibilityStudy
do/Prob lem Statement do/Team Formation
do/Revi ew do/Proj ect Kickoff
do/Soft ware Architec ture
do/Soft ware Plan
Termina tion
do/Clie nt Acceptance New Nee d Infrast ructure Setup
New Tec hnology Steady State
do/Deli very Complet ed
do/Post Mortem do/Deve lop System && Team s
do/Cont rolling Assembl ed
do/Risk Management
System Done do/Repl anning

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 WHAT DOES PROJECT MANAGEMENT ENTAIL?

 Planning: is the most critical and gets the

least amount of our time
 Organizing: Orderly fashion
(Contingent/Prerequisites)
 Controlling: is critical if we are to use our
limited resources wisely
 Measuring: To determine if we accomplished
the goal or met the target

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MEASURING…….

 Are we efficient?
 Are we productive?

 Are we doing a good job?

 What is the outcome?

 Is it what we wanted to be?

If you can’t plan it, You can’t do it

If you can’t measure it, you can’t manage it

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 WHO USES PROJECT MANAGEMENT?

• Nearly Everyone to some degree

People plan their Days, their Weeks, their Vacations and their
Budgets and keep a simple project management form known as
‘’To Do’’ list
• Any Process or Means used to track tasks or efforts towards
accomplishing a goal could be considered Project Management

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 WHY IS PROJECT MANAGEMENT USED?
 It is necessary to Track or Measure the progress we have
achieved towards a Goal we wish to accomplish
 We use Project Management to Aid us in Maximizing and
Optimizing our resources to accomplish our goals

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HOW MUCH TIME DOES PROJECT MANAGEMENT TAKE?
 Not much. Probably more time is wasted as a consequence of
lack of Project Management tool than is spent to Plan
adequately, Organize, Control effectively and Measure
appropriately
 How long: As long as there are things to do

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 WHY IS PROJECT MANAGEMENT IMPORTANT?
 Enables us to map out a course of action or work plan
 Helps us to think systematically and thoroughly

 Unique Task

 Specific Objective

 Variety of Resources

 Time bound

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ADVANTAGES OF PROJECT MANAGEMENT
 In built Monitoring/ Sequencing
 Easy and Early identification of Bottlenecks
 Activity based costing
 Identification and Addition of missing and new activities
 Preempting unnecessary activity/expenditure
 Timely Completion
 Assigning tasks
 Reporting
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ROAD TO BETTER PROJECT MANAGEMENT
❑ Find a Project plan that fits your style of project
management needs
❑ It may be as simple as creating templates, forms and
spreadsheets to track tasks
❑ Formation of a Project Management committee
❑ Listing out all the tasks and sub-tasks to accomplish a goal
❑ Note down the time period and person responsible against
each task/sub-task

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ROAD TO BETTER PROJECT MANAGEMENT
❑ Identify a Project Manager
❑ Identify Task Managers

❑ Sequence the activities in relation to time period

❑ Present to the PMC

❑ Finalize by reaching an agreement and start work…...

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IMPLEMENTATION
 Regular Monitoring
 Resource Support

 Critical issues discussed and solution

 Meeting with the team on completion of each major milestone

 Track the progress against the plan

 System to add/delete tasks in the PMT

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CONSEQUENCES OF NOT USING PMT
➢ DELAY
➢ COST

➢ WASTE OF RESOURCES

➢ QUALITY

➢ DISSATISFACTION

➢ REPUTATION

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PROJECT MANAGEMENT….

Work Smart Not Hard !!!

Who Manage the Project ?

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 MANAGER
 Who is a Manager?
Manager plans, organizes, leads, and controls the
people and works of a project or an organization to
achieve its goals.
 Manager’s Jobs
 Planning – set goals, develop rules & plan
 Organizing – identify jobs, delegate responsibility
 Leading – influence to get job done, manage conflict
 Controlling – set standard and compare performance

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Type of Managers
1. Top Managers – Executive (president, VP…)
 Have managers as subordinate

2. Middle Managers – Manager or Director (sales, HR…)

 Have managers as subordinate

3. First-Line Managers – Supervisor (production,

bookkeeper …)
 Do not have managers as subordinate

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Quality of Good Project Manager
 Organized

 Ability to forecast - methods of achieving results

 Motivator – drive to achieve result
 Good communicator – a must skill
 People’s person
 Responsible

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PMs Role in Planning
 Establish work objectives and milestones
 Involve all parties
 Prepare implementable plan, formal agreements, and
include contingency plan

PMs Role in Organizing

 Develop work breakdown structure (WBS)
 Develop organization chart
 Clearly define responsibilities.

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PMs Role in Directing
 Be an effective leader
 Be available
 Build an effective team

PMs Role in Controlling

 Maintain record – of work, meetings, milestones, cost
 Keep all parties well-informed – no surprise!

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 CONSTRUCTION MANAGEMENT….
Construction Management is a professional service that applies
effective management techniques to the planning, design and
construction of a project from inception to completion for the
purpose of controlling time, cost and quality.

Principle objective of a construction manager is to complete each

project on time and within budget, while maintaining acceptable
levels of safety and risk. 35
 CONSTRUCTION MANAGEMENT
BASIC RESOURCES:
• workforce • material
• subcontractors • information
• equipment • time
• construction plant • money

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 CONSTRUCTION IS A UNIQUE INDUSTRY
❑ Not performed in controlled conditions, therefore highly
impacted by weather and other environmental conditions
❑ Seasonality
❑ Each project is unique
❑ Remotes sites with various access problems
❑ Process is not as predictable
❑ Difficulty in applying automation
❑ High potential for encountering unforeseen conditions
❑ Costs can vary according to conditions
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 CONSTRUCTION IS A UNIQUE INDUSTRY CONT’D
❑ Difficult to manage and supply utilities and other resources.
❑ Technical innovations are adopted slower.
❑ Success is dependent upon the quality of its people.
❑ Very custom-oriented
❑ Product can be of mind-boggling size, cost, and complexity

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FUNCTIONS OF MANAGEMENT

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PLANNING

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WHY DO PLANNING?

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ORGANIZING:

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LEADING:

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CONTROLLING:

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LEVELS OF MANAGEMENT

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MANAGERIAL FUNCTIONS

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MANAGERIAL FUNCTIONS

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THANK YOU

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