Module 2:Principal and Practices of Project Management

Executive Diploma in Building and Facilities Management[Program Code: EDBFM]

By:Mohd Fadrul bin Hussin

Email: bard_1699@yahoo.comHandphone: 017-2680556

Module 2:Principal and Practices of Project Management

Classes: 20th , 27th March, 3rd ,10th April 2011Exam:17th April 2011

Marking: Attendance : 5%Assignment : 35%Final Exam : 60%

Why Project Management is here?

Coverage:1. Concept and Definition of Project management

• Project Management Objectives• Project Manager Roles

2. Project Initiation• Phases of a Project

3. Feasibility Study of Project4. Development and Organization of Projects

• Contractual Approaches5. Preconstruction Site Investigation and Estimating6. Project Budgeting7. Bidding and Award8. Project Planning and Scheduling

• Work Breakdown Structure (WBS)• Bar Chart• Precedence Diagrams• Linier Scheduling• Program Evaluation and Review Technique (PERT)

Module 2:Principal and Practices of Project Management

Focuses onConstruction Project Management

Coverage:9. Resources Allocation and Leveling10. Project Tracking11. Design Coordination12. Construction Phase13. Safety and Health in Construction14. Project Close Out15. Claims, Liability and Dispute Resolution16. Life Cycle Costing

Module 2Principal and Practices of Project Management

Focuses onConstruction Project Management

Harold Kerzner (2001), Project Management, A System Approach to Planning, Scheduling and Controlling, Seventh Edition, John Wiley & Sons, Inc. Donald S. Barrie and Boyd C. Paulson (1992), Professional Construction Management, Third Edition, McGraw-Hill International Editions  Garold D. Oberlander (1993), Project Management for Engineering and Construction, McGraw-Hill International Editions George J. Ritz (1999), Total Construction Project Management, McGraw-Hill International Editions  Prasanna Chandra (2000), Projects Planning Analysis Selection Implementation and Review, Fourth Edition, Tata McGraw-Hill Jimmie W. Hinze (2008), Construction Planning and Scheduling, Third Edition, Pearson International Edition Khairani Ahmad (2009), Construction Economics, Prentice Hall

Project Management Institute (2008), A Guide To The Project Management Body of Knowledge, PMBOK Guide, Fourth Edition. Project Management Institute, Inc.

References

What is Project Management?

What is Project Management?

Project and Management

Project: A series of activities which to be completed within the available resources, predetermined specifications and within specific time frame.

Management: An art of getting things done through other people.

Objective Triangles

Time Quality

Cost

Feasibilityand

Function

Project Management Objectives

Project planning and programming Programme monitoring Documentation management Tender packaging to best serve the project Shop drawings and on-site control Monitoring contractor’s performance Contract administration Delays and time extension claims Fit-out procurement and control Developing pro-active planning to offset potential problems

Time Control

Cost Control

Estimating project cost Value analysis to reduce costs Cash-flow modeling Forecasting and cost control Variation control Tender and contracts letting Progress claims Claims mitigation Contractor’s preliminaries control

Quality Control

Review of plans and specifications for constructibility and claims avoidanceManagement of design briefChange order and variation control managementInspection and quality assuranceDefects correctionMonitoring contractor safety

Feasibility Control

Evaluate marketability Evaluate rental and capitalization rates Consider operational and life-cycle costs Estimate total project development costs Undertake risk assessment and sensitivity analysis Review project feasibility during development progress Achieve Client’s return on investment

Function Control

Consider end-user’s requirement and objectives Review plans and specifications for design functionality Review plans and specifications for operational functionality Review and achieve Client’s objectives

Project Management Process

FacilitiesServicesSchedulesBudgetActivitiesData

Output

Projectmanagement

team

OrganizationPersonnelResourcesWork activities

Process

Information systemsand reports

feedback

PersonnelMoneyMaterialsPolicyProceduresPlans &Specifications

Input

Owner’sproject

definition

Preliminaryengineering

design

Detailedengineering

design

Procurementof special

equipment/material

Contractconstruction

work

Low Low

High High

Ability to influence project quality, cost and

schedule

Cost to implement changes in project quality, cost and

schedule

Importance of Project Owner Commitment

Why Project Management is Important?

Current market situation has led to a new challenge to Project Manager

Property market is becoming consumers/end users driven market

Property market is getting more competitive

More sophisticated end user requirements

To reduce unnecessary and avoidable costs to the Clients

To achieve Client’s return on investment

Project Management = Risk Management?

What is Risk Management?

Risk management is a means of

dealing with uncertainty

Projects:

One-off,

Change-inducing: indicates degree of inherent uncertainty

Source of uncertainty:

Constraints of resources

Use of new and untried technology

Sources of Risk

There are two main categories that sources of risk fall into:

External

Factors beyond the project manager’s or company’s control – legislative requirements, e.g. safety, the environment, consumer protection, public opinion, market behavior

Internal

Factors within the control of the project manager and company – product design, human behavior, corporate dispute, communication failure

The Link with Project Management

Early Project Management concentrated on managing cost & schedule – little known about technical risk

Constantly changing technological environment

There is a need to consider risk – to understand the technical, cost and scheduling risk inherent in a project and to understand and limit their impact

Planning focuses on what is known

Risk management focuses on the future – on the known unknowns and on the unknown unknowns

The Link with Project Management

The traditional view

RMPM

Risk Management is theraison d’etre

of project management

RM

PM

Risk Management pervadesall risk areas of project managementbut some may be delegated to external sources

RM

PM

The Link with Project Management

All 3 views are valid and will apply in certain circumstances

Important message: risk management should be an integral part of the

whole project management process

Level of implementation can vary, depending on:

Size of the project Type of project Who the customer is Relationship with corporate plan Corporate culture

Dealing with Uncertainty

Break project down into small elements

Techniques for technical project:

Use modeling, prototypes and demonstration to explore “what-ifs”

Testing : working and non-working models

Use experts

Clear lines of responsibility and communication

Start early, use resources efficiently, ensure awareness of schedule

Project Life Cycle

Two reasons for starting risk management early in the life of a project:

Project approval – project approval implies acknowledgement and

acceptance of the risks

Early fixes are cheap fixes

A simple statement of risks that have been foreseen is useful at the project definition stage

Life Cycle Risk Analysis

Life-cycle phases

Projectapproval

PreliminaryAnd detailed

planning

Execution Closure

AmountAt

Stake$

Risks

Total project risk

Amount at stake

Typical risk events per phase

• Unavailable Subject Matter Experts

• Poor definition of problem

• No feasibility study

• Unclear objectives

• Buy-in (by competitive bidding)

• No risk management plan

• Hasty planning

• Poor specifications

• Unclear S.O.W

• No management support

• Poor role definition

• Inexperience team

• Unskilled labor

• Material availability

• Strike

• Whether

• Changes in scope

• OSHA compliance

• No control systems in place

• Changes in schedule

• Regulatory requirements

• Poor quality

• Unacceptable to customer

• As-built changes

• Cash flow problems

Project Management Institute

www.pmi.org

Guide to Project Management Body of KnowledgePMBOK Guide

Project Management Professional; PMP

Project Management Institute (PMI)“9 Project Management Knowledge Areas”

1. Project Integration Management

2. Project Scope Management

3. Project Time Management

4. Project Cost Management

5. Project Quality Management

6. Project Human Resource Management

7. Project Communication Management

8. Project Risk Management

9. Project Procurement Management