BLDG 9197 – Construction

Planning and Scheduling

MODULE 4

OVERVIEW OF PROJECT
MANAGEMENT
 PROJECT MANAGEMENT
Definitions
• PROJECT: A “one-off” endeavour, having a discrete
start, a discrete end point, and a specific scope. It is to be
done in a defined time period, for a defined cost and to a
specific quality standard.
• PROJECT MANAGEMENT: The application of
knowledge, skills, tools and techniques to the execution
of a Project in order to meet or exceed stakeholder needs
and expectations.
• PROGRAM: A group of related Projects, managed
together.
 FUNCTIONAL vs. PROJECT MANAGEMENT
• EXAMPLES:
• FUNCTIONAL MANAGEMENT
is based on the use of EXISTING • Project Management is used to
systems, processes, procedures and create a facility like the Skydome.
capabilities, in a continuous, i.e. the building is the “Product”.
usually repetitive manner. The • Functional Management is used to
objective is to make the best use of operate the facility. i.e. the “events”
that which exists, repeatedly and run in the Skydome are “Products”.
well into the future.
• Project Management is used to
• PROJECT MANAGEMENT is Design and Build a Car Plant. i.e.
based on a new and unique the Plant is the “Product”.
TEMPORARY organization
• Functional Management is used to
created specifically to deal with the
run the Plant. i.e. the vehicles
Project and disbanded on
produced are a series of “Products”.
completion of the Project. The
objective is to produce a unique,
singular result.
 Reasons for the use of
PROJECT MANAGEMENT
• PROJECT MANAGEMENT:
• 1.
Focuses on ONE objective for ONE customer
• 2.
Responds efficiently to rapid change.
• 3.
Effectively blends multi-disciplinary skills.
• 4.
Allows most productive use of Resources.
• 5.
Facilitates consistent achievement of
objectives.
• 6. Encourages creativity.
PROJECT MANAGERS may be known by several different titles
(which MAY OR MAY NOT mean the same thing). The size and
nature of a Project may result in differing degrees of duties and
responsibilities.
• Project Director
• Project Leader
• Project Co-ordinator
• Program Director
• Program Manager
• Product Manager
• Brand Manager
• Construction Manager
• Contract Manager
• Business Unit Manager
• Task Force Chair
 The ROLE of the PROJECT
MANAGER
The PROJECT The PROJECT
MANAGER is: MANAGER requires:
1. Team Leader 1. Project Management Skills
2. Decision Maker 2. Technical Knowledge
3. Integrator 3. Knowledge of the Project’s
4. Communicator key product
5. Motivator 4. Knowledge of the Project’s
6. Interface Manager environment.
7. Expectations
Manager
 THREE PRIME ASPECTS OF THE
PROJECT MANAGER’S ROLE
1. DECISION MAKING
• Entrepreneur
• Negotiator
• Resource Allocater
2. INTERPERSONAL
• Leader
• Figurehead
• Liaison Person
3. INFORMATIONAL
• Spokesperson
• Disseminator
• Monitor
 PROJECT “SPONSOR”
• Senior Manager in same Organization
• Principal Roles
– Directs and safeguards the “business
vision” of the Organization
– Allocates Resources
– Negotiates
– Clarifies critical issues
– Links communications
– Evaluates results
Functional / Operational
Management Process

PLAN

CONTROL EXECUTE
Project Management Process

INITIATE PLAN

CLOSE CONTROL EXECUTE

PROJECT MANAGEMENT PROCESSES
AND FUNCTIONS

• PROCESSES • FUNCTIONS

– INITIATION – SCOPE
– PLANNING – TIME
– EXECUTING – COST
– CONTROLLING – QUALITY
– CLOSING – HUMAN RESOURCES
– COMMUNICATIONS
– RISK
– PROCUREMENT
– INTEGRATION
PROJECT MANAGEMENT
BODY OF KNOWLEDGE

Scope
Time
Cost
Quality
Human Resources
General Communications Application
Management Risk Area
Practices Procurement Practices
Integration
 PROJECT PLAN
• 1. Project Charter
• 2. Scope Statement
• 3. Work Breakdown Structure
• 4. Cost Estimates
• 5. Project Schedule
• 6. Project Organization & Staff Schedule
• 7. Risk Evaluation
• 8. Procurement Plan
• 9. Project Information Systems
• 10. Project Control Plan
 Scope Definition
• Having defined what it is that we are
attempting to do, we now need to
control the process which will enable us
to complete the Project to the
satisfaction of all Project Stakeholders.
• We look first at the Control of Time and
Cost.
 PROJECT INFORMATION
SYSTEMS
1.Planning, Scheduling and Controlling
Time and Cost
2.Progress Reporting and Forecasting
of Time Durations
3.Cost Reporting and Forecasting Total
Expenditures
4.Use of Computers in the Operation of
these Systems
 Project Management
Information Systems
• The development and use of “Systems”
which enable us to PLAN, MONITOR
and CONTROL Projects.
• This course concentrates in particular on
those systems which provide information
to control TIME and COST
 Project Control System
1. Definition of the Project -
Scope Statement
2. Activity/Task Definition -
Work Breakdown Structure
3. Activity Sequencing -
Network Diagram
4. Activity Duration Estimation
5. Network Analysis
6. Identification of Critical Path
7. Schedule Tabulation
8. Gantt Chart Schedule
9. Resource Schedule
10. Cost Schedule
11. Least Cost and/or Least
Duration Calculations
12. Final Production Plan and
Schedule
13. Schedule Monitoring
System - Earned Value
Analysis
14. Forecasting System -
“What if?” Analysis
15 Revised and Updated Plan
 TIME and COST
MANAGEMENT
• Necessity for a Time and Cost
Management System

• Overview of Time and Cost Management

• Time and Cost Management Processes

• Schedules
 Necessity for Time and Cost
Management Systems

• It is for the benefit of the Project

“Stakeholders” that we need to
manage Project Time and Cost.
• Who are the Project
“Stakeholders”?
 Project “Stakeholders”
• Owner • Competitors
• End User • Suppliers
• Project “Sponsor” • Creditors
• Project Organization • Financial Institutions
• Project Manager • Government Agencies-
• Functional Managers – Federal, Provincial, Local
• Project Team • General Public- “Intervenor
• Designers Groups”
• Consultants – Consumer,
• Contractors Environmental, Political
• Sub-contractors • Local Community
 Why is Control of Time and Cost
essential for the following ?:

1.The Owner / Client

2.The Project Management Team

3.The Consultants

4.The Contractors
 Time and Cost Control
1. The Owner / Client
(Owner, Owners Project Manager, Financial Advisors, etc.)

• Must know when the new Project / Product etc. is

going to be available to:
– a) arrange to move staff and/or equipment
– b) arrange to terminate existing leases
– c) arrange to sell, dispose of, or otherwise deal with
existing premises/facilities/equipment
– d) assess the financial implications of b) and c)
– e) arrange for finance to be available as required
– f) plan for the start of production and/or productive use
of the new facility, product, etc.
– g) advise customers of change of circumstances
 Time and Cost Control
2. The Project Management Team

• Must know the ongoing status of the Project so that

they may:
– a) constantly inform the Owner/Client of the situation
regarding both Time and Cost and advise on possible
options
– b) assess the implications of changes in the Project scope
that may arise during the life of the Project
– c) plan ongoing and future work on the Project
– d) assess their financial status in terms of allocation of
resources to the Project
– e) plan for future work after this Project is complete
 Time and Cost Control
3. Consultants / Contractors
• Must know the ongoing status of the Project in
respect to Time and Cost so that they can:
– a) plan ongoing and future operations on the Project
– b) arrange for resources to be available as required
– c) arrange for finance to be available to fund ongoing
operations
– d) assess the profitability of their operations, and take
action if not satisfactory
– e) make use of current information to plan, schedule and
provide estimates for other/future Projects
– f) to plan future work after this Project is finished