SPECS1234

NATIONAL COLLEGE OF SCIENCE AND TECHNOLOGY
Amafel Bldg. Aguinaldo Highway, Dasmarinas, Cavite

College of Engineering and Architecture
A. CONSTRUCTION MANAGEMENT
Construction management or also called as construction project management

(CPM) is the overall planning, coordination and control of a project from beginning to
completion. CPM is aimed at meeting a client’s requirement in order to produce a
functionally and financially viable project.
The management of construction projects requires knowledge of modern

management as well as an understanding of the design and construction process.
Construction projects have a specific set of objectives and constraints such as a required
time frame for completion. While the relevant technology, institutional arrangements or
processes will differ, the management of such projects has much in common with the
management of similar types of projects in other specialty or technology domains such
as aerospace, pharmaceutical and energy developments.
Generally, project management is distinguished from the general management

of corporations by the mission-oriented nature of a project. A project organization will
generally be terminated when the mission is accomplished. According to the Project
Management Institute, the discipline of project management can be defined as follows:
Project management is the art of directing and coordinating human and material
resources throughout the life of a project by using modern management techniques to
achieve predetermined objectives of scope, cost, time, quality and participation
satisfaction.
By contrast, the general management of business and industrial corporations

assumes a broader outlook with greater continuity of operations. Nevertheless, there
are enough similarities as well as differences between the two so that modern
management techniques developed for general management may be adapted for
project management.
Construction is the process of preparing and forming buildings and building

systems. Construction starts with planning, design, and financing and continues until the
structure is ready for occupancy.
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Construction management or construction project management is the

overall planning, coordination, and control of a construction process from beginning to
completion. Construction project management is aimed at meeting a client's requirement
in order to produce a functionally and financially viable project.
Owner’s Rep / Project Manager Company or person planning, organizing and

managing the process of design and construction
Program Manager Person who manages a retail store rollout program,

planning organizing and managing design and construction process.
Figure 1.1 Relations in Construction Management Chart
Source: https://www.icsc.org/
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Construction Manager
• At Risk (Construction Manager as Contractor)

• Agency
• The difference is just in level of risk assumed
General Contractor
Company appointed to execute construction works and deliver the building as

per agreed cost, schedule and quality
PREQUALIFICATIONS AND SELECTION
A. Pre-Qualification Questions
• Company
• People
• Legal
• Track Record
• Contractual
B. Selection Methods
• Bidding the Job

• Negotiated Agreement
Considerations
• Relevant experience, references, general reputation

• Financial stability of company / credit reports, bonding capability
• Schedule control
• Quality of performed works on representative projects
• Prior experience with contractor, strategic relationship
• Litigations
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Company
• Does the size of the company match the size of the project?
• What is the safety record of a company?
• EMR / experience modification rate
• 1more safe
• 1 less safe
Personnel who will be working on project
• Do they have experience on this particular job?

• What do former client say about superintendent?
• What is a current team workload?
Price
• Best possible work at the lowest possible price

• Pay a little more for company with grater experience
• Extremely high and low bids should be eliminated quickly
PROJECT
Is made up of a group of interrelated work activities constrained by a specific

scope, budget, and schedule to deliver capital assets needed to achieve the strategic
goals of an Agency. This Handbook is intended for management of capital projects
involving construction of facilities or systems. The word project is synonymous with the
words capital project throughout this Handbook. Project Manager’s Role A project’s
execution is planned and controlled by the project manager. The project manager is
assigned by the Agency, i.e., the Agency’s executive management. The project
manager must have adequate authority to exercise the responsibility of forming and
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managing a team for support of the project. The project manager must have prior
experience managing similar projects in the past. If an Agency cannot commit such an
individual with adequate time and resources, the Agency is well advised to outsource
project management services for management of the project. The project manager may
be tasked with management of multiple projects that may require assignment of
additional project managers for support. In such cases the project manager is taking on
the role of a program manager. Figure 1.2 shows typical project activities without a
project manager. It shows the multiple interactions an Agency faces without a project
manager to manage the work activities involved in delivering a new capital asset.
Figure 1.2 Project Organization without Project Manager Chart
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Figure 1.3 Project Organization with Project Manager Chart
Figure 1.3 depicts a typical project organization with a project manager. It shows
how a project management organization is structured with the assignment of a project
manager to manage project work activities.
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Characteristics of Projects
Projects are defined by their scope, budget, and schedule. For example, an
Agency is to undertake a project to design and build a new maintenance facility for its
fleet of buses (scope), at an estimate of $30 million (preliminary budget) over a three-
year period (schedule). The schedule specifies a defined beginning and end. Projects
go through a life cycle of phases between their beginnings and ends that for construction
projects are typically: initiation, planning, design, construction, commissioning, and
closeout. Scope: Each project is unique and must have a written requirements document
that takes into consideration operational needs, level of service, regulatory requirements
such as Americans with Disabilities Act, and quality of deliverables. The scope evolves
as new information becomes available through the project life cycle. For example, in the
early planning phases of the maintenance facility project, the scope is to have five
service bays. Later, as the design progresses, the exact location and the type of service
in each bay can be determined. Scope refinement should not be confused with scope
creep. Scope creep occurs when the Agency determines part way through the project
that operational projections now call for six rather than five service bays. Changing to
six bays after the project is underway is a serious change in scope that could impact the
budget (larger facility, more land, redesign) and delay the schedule (re plan, redesign,
longer construction). Scope refinement is a necessary process in the project life cycle
while scope creep results from lack of clarity on the Agency’s requirements in the original
scope for the needs, level of service, and level of quality for the deliverables. Schedule:
All projects must have a definite beginning and end. The Agency’s Capital Improvement
Plan (CIP) usually provides approximate dates for the beginning of a project and the end
date when it is due to go into operation. Once there is a well-defined scope, the Agency
needs to determine the time it will take to complete the project by developing the project
schedule. Developing the schedule involves breaking down the work into manageable
activities needed to accomplish the scope of each deliverable, estimating the duration
of each activity, and placing them in a logical sequence.
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B. PRE-CONSTRUCTION PLANNING
Pre-construction services can provide owners with a formal approach for

developing cost, scope, and schedule to execute the construction on time and in control.
The pre-construction, or design phase, is central to the success of the entire

project. Yes, the entire project’s success is built upon the process before the first brick
is even set in place. We develop a thorough process of understanding the project, outline
a strategy, and assemble a dedicated team to get the job done. Before the project
begins, we develop a thorough understanding of the chief’s business goals and align
the project goals accordingly. Learn what the pre-construction phase is and what it takes
to truly have the project under control.
What does the process entail?
Meeting with the client is imperative to the process because they are defining
the project, and we get a better sense of whom we are working with. Finding out the
objectives and resolving any questions that the client may have is important as well.
The outcomes of the pre-construction effort.
The main outcome is a firm and plausible schedule, project scope, and cost
estimate for the business owner. The cost estimate is dependent on how accurate the
client requires it. The following can also be provided via the pre-construction process.
• Procurement plan
• Execution plan
• Project scope
• Engineering
• Evaluations as specified by client
• Basis of design
• Integrated Project Schedule
• Risk analysis
• Utility requirements
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• Cash curve
• Constructability review
• Equipment list
• Options for alternative cost-saving equipment
• Analysis of different equipment approaches
• City/county requirements
• General arrangements
• Site plan and site evaluation
• Evaluation of decisions to be made such as expansion/upfit versus new
facility
• Analysis of the cost impact of materials and product
• Suggestions such as ways to save money and/or expedite the project
timeline
B.1 PROJECT ORGANIZATION
The management of construction projects requires knowledge of modern

management as well as an understanding of the design and construction process.
Construction projects have a specific set of objectives and constraints such as a required
time frame for completion. While the relevant technology, institutional arrangements or
processes will differ, the management of such projects has much in common with the
management of similar types of projects in other specialty or technology domains such
as aerospace, pharmaceutical and energy developments.
Generally, project management is distinguished from the general management

of corporations by the mission-oriented nature of a project. A project organization will
generally be terminated when the mission is accomplished. According to the Project
Management Institute, the discipline of project management can be defined as follows:
Project management is the art of directing and coordinating human and material
resources throughout the life of a project by using modern management techniques to
achieve predetermined objectives of scope, cost, time, quality and participation
satisfaction.
9
By contrast, the general management of business and industrial corporations
assumes a broader outlook with greater continuity of operations. Nevertheless, there
are sufficient similarities as well as differences between the two so that modern
management techniques developed for general management may be adapted for
project management.
The basic ingredients for a project management framework may be represented

schematically in Figure 2-1. A working knowledge of general management and familiarity
with the special knowledge domain related to the project are indispensable. Supporting
disciplines such as computer science and decision science may also play an important
role. In fact, modern management practices and various special knowledge domains
have absorbed various techniques or tools which were once identified only with the
supporting disciplines. For example, computer-based information systems and decision
support systems are now common-place tools for general management. Similarly, many
operations research techniques such as linear programming and network analysis are
now widely used in many knowledge or application domains. Hence, the representation
in Figure 2-1 reflects only the sources from which the project management framework
evolves.
Figure 2.1 Basic Ingredients in Project Management
Source: https://www.cmu.edu/
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Specifically, project management in construction encompasses a set of

objectives which may be accomplished by implementing a series of operations subject
to resource constraints. There are potential conflicts between the stated objectives with
regard to scope, cost, time and quality, and the constraints imposed on human material
and financial resources. These conflicts should be resolved at the onset of a project by
making the necessary tradeoffs or creating new alternatives. Subsequently, the
functions of project management for construction generally include the following:
1. Specification of project objectives and plans including delineation of scope, budgeting,

scheduling, setting performance requirements, and selecting project participants.
2. Maximization of efficient resource utilization through procurement of labor, materials and
equipment according to the prescribed schedule and plan.
3. Implementation of various operations through proper coordination and control of
planning, design, estimating, contracting and construction in the entire process.
4. Development of effective communications and mechanisms for resolving conflicts
among the various participants.
The Project Management Institute focuses on nine distinct areas requiring project
manager knowledge and attention:
1. Project integration management to ensure that the various project elements are
effectively coordinated.
2. Project scope management to ensure that all the work required (and only the required
work) is included.
3. Project time management to provide an effective project schedule.
4. Project cost management to identify needed resources and maintain budget control.
5. Project quality management to ensure functional requirements are met.
6. Project human resource management to development and effectively employ project
personnel.
7. Project communications management to ensure effective internal and external
communications.
8. Project risk management to analyze and mitigate potential risks.
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9. Project procurement management to obtain necessary resources from external sources.
These nine areas form the basis of the Project Management Institute's certification
program for project managers in any industry.
Trends in Modern Management
In recent years, major developments in management reflect the acceptance to various

degrees of the following elements: (1) the management process approach, (2) the
management science and decision support approach, (3) the behavioral science approach
for human resource development, and (4) sustainable competitive advantage. These four
approaches complement each other in current practice and provide a useful groundwork for
project management.
The management process approach emphasizes the systematic study of management

by identifying management functions in an organization and then examining each in detail.
There is general agreement regarding the functions of planning, organizing and controlling.
A major tenet is that by analyzing management along functional lines, a framework can be
constructed into which all new management activities can be placed. Thus, the manager's
job is regarded as coordinating a process of interrelated functions, which are neither totally
random nor rigidly predetermined, but are dynamic as the process evolves. Another tenet is
that management principles can be derived from an intellectual analysis of management
functions. By dividing the manager's job into functional components, principles based upon
each function can be extracted. Hence, management functions can be organized into a
hierarchical structure designed to improve operational efficiency, such as the example of
the organization for a manufacturing company shown in Figure 2-2. The basic management
functions are performed by all managers, regardless of enterprise, activity or hierarchical
levels. Finally, the development of a management philosophy results in helping the manager
to establish relationships between human and material resources. The outcome of following
an established philosophy of operation helps the manager win the support of the
subordinates in achieving organizational objectives.
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Figure 2.2 Illustrative Hierarchical Structure of Management Functions
The management science and decision support approach contribute to the

development of a body of quantitative methods designed to aid managers in making
complex decisions related to operations and production. In decision support systems,
emphasis is placed on providing managers with relevant information. In management
science, a great deal of attention is given to defining objectives and constraints, and to
constructing mathematical analysis models in solving complex problems of inventory,
materials and production control, among others. A topic of major interest in management
science is the maximization of profit, or in the absence of a workable model for the
operation of the entire system, the suboptimization of the operations of its components.
The optimization or suboptimization is often achieved by the use of operations research
techniques, such as linear programming, quadratic programming, graph theory, queuing
theory and Monte Carlo simulation. In addition to the increasing use of computers
accompanied by the development of sophisticated mathematical models and
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information systems, management science and decision support systems have played
an important role by looking more carefully at problem inputs and relationships and by
promoting goal formulation and measurement of performance. Artificial intelligence has
also begun to be applied to provide decision support systems for solving ill-structured
problems in management.
The behavioral science approach for human resource development is important

because management entails getting things done through the actions of people. An
effective manager must understand the importance of human factors such as needs,
drives, motivation, leadership, personality, behavior, and work groups. Within this
context, some place more emphasis on interpersonal behavior which focuses on the
individual and his/her motivations as a socio-psychological being; others emphasize
more group behavior in recognition of the organized enterprise as a social organism,
subject to all the attitudes, habits, pressures and conflicts of the cultural environment of
people. The major contributions made by the behavioral scientists to the field of
management include: (1) the formulation of concepts and explanations about individual
and group behavior in the organization, (2) the empirical testing of these concepts
methodically in many different experimental and field settings, and (3) the establishment
of actual managerial policies and decisions for operation based on the conceptual and
methodical frameworks.
Sustainable competitive advantage stems primarily from good management

strategy. As Michael Porter of the Harvard Business School argues:
Strategy is creating fit among a company's activities. The success of a strategy

depends on doing many things well - not just a few - and integrating among them. If
there is no fit among activites, there is no distinctive strategy and little sustainability.
In this view, successful firms must improve and align the many processes underway to
their strategic vision. Strategic positioning in this fashion requires:
• Creating a unique and valuable position.

• Making trade-offs compared to competitors
• Creating a "fit" among a company's activities.
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Project managers should be aware of the strategic position of their own
organization and the other organizations involved in the project. The project manager
faces the difficult task of trying to align the goals and strategies of these various
organizations to accomplish the project goals. For example, the owner of an industrial
project may define a strategic goal as being first to market with new products. In this
case, facilities development must be oriented to fast-track, rapid construction. As
another example, a contracting firm may see their strategic advantage in new
technologies and emphasize profit opportunities from value engineering.
Strategic Planning and Project Programming
The programming of capital projects is shaped by the strategic plan of an

organization, which is influenced by market demands and resources constraints. The
programming process associated with planning and feasibility studies sets the priorities
and timing for initiating various projects to meet the overall objectives of the
organizations. However, once this decision is made to initiate a project, market pressure
may dictate early and timely completion of the facility.
Among various types of construction, the influence of market pressure on the

timing of initiating a facility is most obvious in industrial construction. Demand for an
industrial product may be short-lived, and if a company does not hit the market first,
there may not be demand for its product later. With intensive competition for national
and international markets, the trend of industrial construction moves toward shorter
project life cycles, particularly in technology intensive industries.
In order to gain time, some owners are willing to forego thorough planning and
feasibility study so as to proceed on a project with inadequate definition of the project
scope. Invariably, subsequent changes in project scope will increase construction costs;
however, profits derived from earlier facility operation often justify the increase in
construction costs. Generally, if the owner can derive reasonable profits from the
operation of a completed facility, the project is considered a success even if construction
costs far exceed the estimate based on an inadequate scope definition. This attitude
may be attributed in large part to the uncertainties inherent in construction projects. It is
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difficult to argue that profits might be even higher if construction costs could be reduced
without increasing the project duration. However, some projects, notably some nuclear
power plants, are clearly unsuccessful and abandoned before completion, and their
demise must be attributed at least in part to inadequate planning and poor feasibility
studies.
The owner or facility sponsor holds the key to influence the construction costs of
a project because any decision made at the beginning stage of a project life cycle has
far greater influence than those made at later stages, as shown schematically in Figure
2-3. Moreover, the design and construction decisions will influence the continuing
operating costs and, in many cases, the revenues over the facility lifetime. Therefore,
an owner should obtain the expertise of professionals to provide adequate planning and
feasibility studies. Many owners do not maintain an in-house engineering and
construction management capability, and they should consider the establishment of an
ongoing relationship with outside consultants in order to respond quickly to requests.
Even among those owners who maintain engineering and construction divisions, many
treat these divisions as reimbursable, independent organizations. Such an arrangement
should not discourage their legitimate use as false economies in reimbursable costs
from such divisions can indeed be very costly to the overall organization.
Figure 2.3 Ability to Influence Construction Cost Over Time
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Finally, the initiation and execution of capital projects places demands on the
resources of the owner and the professionals and contractors to be engaged by the
owner. For very large projects, it may bid up the price of engineering services as well as
the costs of materials and equipment and the contract prices of all types. Consequently,
such factors should be taken into consideration in determining the timing of a project.
Effects of Project Risks on Organization
The uncertainty in undertaking a construction project comes from many sources

and often involves many participants in the project. Since each participant tries to
minimize its own risk, the conflicts among various participants can be detrimental to the
project. Only the owner has the power to moderate such conflicts as it alone holds the
key to risk assignment through proper contractual relations with other participants.
Failure to recognize this responsibility by the owner often leads to undesirable results.
In recent years, the concept of "risk sharing/risk assignment" contracts has gained
acceptance by the federal government. Since this type of contract acknowledges the
responsibilities of the owners, the contract prices are expected to be lower than those
in which all risks are assigned to contractors.
In approaching the problem of uncertainty, it is important to recognize that

incentives must be provided if any of the participants is expected to take a greater risk.
The willingness of a participant to accept risks often reflects the professional
competence of that participant as well as its propensity to risk. However, society's
perception of the potential liabilities of the participant can affect the attitude of risk-taking
for all participants. When a claim is made against one of the participants, it is difficult for
the public to know whether a fraud has been committed, or simply that an accident has
occurred.
Risks in construction projects may be classified in a number of ways. One form of

classification is as follows:
1. Socioeconomic factors
o Environmental protection
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o Public safety regulation
o Economic instability
o Exchange rate fluctuation
2. Organizational relationships
o Contractual relations
o Attitudes of participants
o Communication
3. Technological problems
o Design assumptions
o Site conditions
o Construction procedures
o Construction occupational safety
The environmental protection movement has contributed to the uncertainty for

construction because of the inability to know what will be required and how long it will
take to obtain approval from the regulatory agencies. The requirements of continued re-
evaluation of problems and the lack of definitive criteria which are practical have also
resulted in added costs. Public safety regulations have similar effects, which have been
most noticeable in the energy field involving nuclear power plants and coal mining. The
situation has created constantly shifting guidelines for engineers, constructors and
owners as projects move through the stages of planning to construction. These moving
targets add a significant new dimension of uncertainty which can make it virtually
impossible to schedule and complete work at budgeted cost. Economic conditions of the
past decade have further reinforced the climate of uncertainty with high inflation and
interest rates. The deregulation of financial institutions has also generated unanticipated
problems related to the financing of construction.
Uncertainty stemming from regulatory agencies, environmental issues and

financial aspects of construction should be at least mitigated or ideally eliminated.
Owners are keenly interested in achieving some form of breakthrough that will lower the
costs of projects and mitigate or eliminate lengthy delays. Such breakthroughs are
seldom planned. Generally, they happen when the right conditions exist, such as when
innovation is permitted or when a basis for incentive or reward exists. However, there is
a long way to go before a true partnership of all parties involved can be forged.
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During periods of economic expansion, major capital expenditures are made by
industries and bid up the cost of construction. In order to control costs, some owners
attempt to use fixed price contracts so that the risks of unforeseen contingencies related
to an overheated economy are passed on to contractors. However, contractors will raise
their prices to compensate for the additional risks.
The risks related to organizational relationships may appear to be unnecessary

but are quite real. Strained relationships may develop between various organizations
involved in the design/construct process. When problems occur, discussions often
center on responsibilities rather than project needs at a time when the focus should be
on solving the problems. Cooperation and communication between the parties are
discouraged for fear of the effects of impending litigation. This barrier to communication
results from the ill-conceived notion that uncertainties resulting from technological
problems can be eliminated by appropriate contract terms. The net result has been an
increase in the costs of constructed facilities.
The risks related to technological problems are familiar to the design/construct

professions which have some degree of control over this category. However, because
of rapid advances in new technologies which present new problems to designers and
constructors, technological risk has become greater in many instances. Certain design
assumptions which have served the professions well in the past may become obsolete
in dealing with new types of facilities which may have greater complexity or scale or
both. Site conditions, particularly subsurface conditions which always present some
degree of uncertainty, can create an even greater degree of uncertainty for facilities with
heretofore unknown characteristics during operation. Because construction procedures
may not have been fully anticipated, the design may have to be modified after
construction has begun. An example of facilities which have encountered such
uncertainty is the nuclear power plant, and many owners, designers and contractors
have suffered for undertaking such projects.
If each of the problems cited above can cause uncertainty, the combination of
such problems is often regarded by all parties as being out of control and inherently
risky. Thus, the issue of liability has taken on major proportions and has influenced the
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practices of engineers and constructors, who in turn have influenced the actions of the
owners.
Many owners have begun to understand the problems of risks and are seeking
to address some of these problems. For example, some owners are turning to those
organizations that offer complete capabilities in planning, design, and construction, and
tend to avoid breaking the project into major components to be undertaken individually
by specialty participants. Proper coordination throughout the project duration and good
organizational communication can avoid delays and costs resulting from fragmentation
of services, even though the components from various services are eventually
integrated.
Attitudes of cooperation can be readily applied to the private sector, but only in
special circumstances can they be applied to the public sector. The ability to deal with
complex issues is often precluded in the competitive bidding which is usually required
in the public sector. The situation becomes more difficult with the proliferation of
regulatory requirements and resulting delays in design and construction while awaiting
approvals from government officials who do not participate in the risks of the project.
Organization of Project Participants
The top management of the owner sets the overall policy and selects the
appropriate organization to take charge of a proposed project. Its policy will dictate how
the project life cycle is divided among organizations and which professionals should be
engaged. Decisions by the top management of the owner will also influence the
organization to be adopted for project management. In general, there are many ways to
decompose a project into stages. The most typical ways are:
• Sequential processing whereby the project is divided into separate stages and each
stage is carried out successively in sequence.
• Parallel processing whereby the project is divided into independent parts such that
all stages are carried out simultaneously.
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• Staggered processing whereby the stages may be overlapping, such as the use of
phased design-construct procedures for fast track operation.
It should be pointed out that some decompositions may work out better than
others, depending on the circumstances. In any case, the prevalence of decomposition
makes the subsequent integration particularly important. The critical issues involved in
organization for project management are:
• How many organizations are involved?

• What are the relationships among the organizations?
• When are the various organizations brought into the project?
There are two basic approaches to organize for project implementation, even though
many variations may exist as a result of different contractual relationships adopted by the
owner and builder. These basic approaches are divided along the following lines:
1. Separation of organizations. Numerous organizations serve as consultants or

contractors to the owner, with different organizations handling design and construction
functions. Typical examples which involve different degrees of separation are:
o Traditional sequence of design and construction
o Professional construction management
2. Integration of organizations. A single or joint venture consisting of a number of
organizations with a single command undertakes both design and construction
functions. Two extremes may be cited as examples:
o Owner-builder operation in which all work will be handled in house by force
account.
o Turnkey operation in which all work is contracted to a vendor which is
responsible for delivering the completed project
Since construction projects may be managed by a spectrum of participants in a

variety of combinations, the organization for the management of such projects may vary
from case to case. On one extreme, each project may be staffed by existing personnel
in the functional divisions of the organization on an ad-hoc basis as shown in Figure 2-
4 until the project is completed. This arrangement is referred to as the matrix
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organization as each project manager must negotiate all resources for the project from
the existing organizational framework. On the other hand, the organization may consist
of a small central functional staff for the exclusive purpose of supporting various projects,
each of which has its functional divisions as shown in Figure 2-5. This decentralized set-
up is referred to as the project-oriented organization as each project manager has
autonomy in managing the project. There are many variations of management style
between these two extremes, depending on the objectives of the organization and the
nature of the construction project. For example, a large chemical company with in-house
staff for planning, design and construction of facilities for new product lines will naturally
adopt the matrix organization. On the other hand, a construction company whose
existence depends entirely on the management of certain types of construction projects
may find the project-oriented organization particularly attractive. While organizations
may differ, the same basic principles of management structure are applicable to most
situations.
B.2 DESIGN STRUCTURE MATRIX
A Design Structure Matrix (DSM) is defined as a compact, matrix representation

of a project network. A DSM provides an idea about various activities of any process
that are interrelated, what information is required to start an activity, what activity will be
followed by any previous activity, manages complex projects, does task sequencing and
iterations (Yassine). Steward has also defined DSM as “a methodology to handle
dependencies and relations between items”. Browning (2001b) explains that “DSM is a
representation and analysis tool for the system modelling. A DSM displays the
relationships between components of a system in a compact, visual and analytically
advantageous format”.
A DSM is also known as “Dependency Structure Matrix” (Danilovic and

Browning, 2007). However, there are other terms also like the Problem-Solving Matrix
(PSM) and Design Precedence Matrix. It is a management tool applied in Project
Management. It provides a project representation that allows for feedback and cyclic
task dependencies. A DSM is a square matrix having identical rows and column labels.
The diagonal is shaded. There are marks on the off diagonal, which show the
interrelationships.
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Columns = Input sources and Rows = Output sinks.
Yassine explains that all the marks above the diagonal are feedback marks. The
Feedback marks are the required input that is not available at the time of executing a
task. These inputs are assumed which can be raised later. It is advisable to reduce these
feedback marks. A DSM cannot show all the aspects at a glance like Gantt chart or flow
chart, but it conveniently highlights iteration and rework. Browning (2002) explains that
after a DSM is prepared, the marks that are below the diagonal are the key drivers of
cost and schedule risks. Browning, T. R. and Eppinger (2002) state that DSM provides
as easy way to document potential “process failure modes” and their effect on other
activities. The binary marks can be replaced by numbers that reflect relative probability
of information change, iterations et
Figure 2.4 Types of Design Structure Matrix
Source: http://www.hrpub.org/
Browning (2001a) elaborates that there are two main categories of DSM. These
are Static DSM and Time-based DSM.
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The Static DSM can further be classified into Component Based and People
Based DSMs. Whereas the Time-Based DSM can be classified as Activity Based and
Parameter Based DSMs (Fig.2.) In case of Static DSM, the system elements exist
simultaneously whereas in Time Based DSM, the ordering indicates flow through time.
This study is focused on Activity Based DSM. These are used for modelling
processes and activity networks based on activities, their information flow and other
dependencies. Civil Engineering and Architecture 4(3): 91-111, 2016 95
Creating Design Structure Matrix
Yassine has defined the following steps that can be adopted for creating a DSM.
Stage 1 - Building/Creating the Design Structure Matrix
• Decompose the system into components/activities. (With the help of existing

documentation or structured expert interviews). As a result, we get a Set of Activities.
• Expert opinion about inputs, outputs and strength of interactions. As a result, we get
the Dependency and Independency of various activities.
• Enter marks in the Design Structure Matrix (x or •)
Stage 2- Project Redesign
• Partitioning - (Reordering) such that feedback marks eliminated/reduced/closer to

the diagonal.
• Tearing – Choose feedback marks that if removed from matrix will render matrix
lower triangular. The removed marks are called tears.  DSM Banding – Addition of
light and dark bands to show independent (parallel or concurrent) activities.
(Grose,1994).
• Clustering – Forms subsets that are mutually exclusive. These are team formations
or independent modules. (Sharman and Yassine, Yu et al.
Steward explained about tearing that the least damaging assumptions are made first
and their marks are temporarily removed or “torn” from DSM. The block is then
24
repartitioned. In case sub diagonal marks remain, the next least damaging assumptions
are made. The process is repeated till no feedback marks remain.
Yu et al. added that in the process of clustering, the interactions or links between
separate clusters is eliminated or minimized. Several clustering techniques may lead to
optimal solutions under certain assumptions. Eppinger elaborates about numeric DSM
as an extension for binary DSM, using numbers in the off-diagonal entries. The numbers
are used in such a manner that they represent the strength of dependencies, in ease of
making assumptions etc. However, in his paper He also suggested certain level
numbers for “x” marks. According to him, the numbers can be chosen as; 1= high
dependency, 2= medium dependency, 3= low dependency. In such cases, the lower
dependency marks are to be teared first.
C. DEVELOPMENT/DEVELOPING THE PROJECT PLAN
A project plan takes into account the approach the team will take and helps the
team and stakeholders document decisions made regarding the objective, scope,
schedule, resources, and deliverables.
Figure 3.1 Types of Design Structure Matrix
Source: https://www.usability.gov/
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It is important to include usability activities in your project plan, so you can build
in the time and resources to carry out those activities. Review the step-by-step
usability guide to better understand which activities fit your needs to include in your plan.
Define the Scope and Stay on Track
The project scope identifies what needs to be accomplished for the project to be
considered complete. For a project to stay on track, it’s important to avoid scope
creep. Scope creep refers to when there are things incrementally added the project plan
that are individually doable when piled together endanger successful completion of the
project as previously defined. Scope creep can be on the business front or the technical
front.
Set Measurable Objectives
Think about your website and define objectives that consider what your
organization hopes to achieve. When you set meaningful objectives and set targets to
reach, you have the ability to measure success after the site launches.
There are two types of goals/ objectives to consider:
• User goals are users’ task scenarios. They explore what users come to the website
to achieve.
• Usability goals should measure your users’ ability to accomplish tasks on your site.
This will tell you whether your site is effective, efficient, and satisfying to your users.
An example objective, if you want users to get the answers to their own questions
without calling your agency or organization, is to reduce phone calls by X amount, saving
Y dollars. You can set similar objectives for reducing emails, increasing customer
satisfaction, and increasing subscriptions to online newsletters.
5 steps in Developing a Project plan
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Step #1. Agree on the Baselines
A baseline is a measure that lets establish performance expectations, analyze

current state of work, and forecast the outcome. Baselines are used by project managers
to define work and measure ongoing performance against the expectations.
Scope, Schedule and Cost are the three constraints used to prepare the
baselines of any project. Accordingly, the scope, schedule and cost baselines determine
what type and amount of work to perform, within what time frame, and with what
monetary resources involved.
Before a project is started, it is critical to discuss and agree on the baselines with
key stakeholders. The project manager will need to prepare a documented description
of the constraints and then hold a meeting with the stakeholders to describe the scope,
outline the schedule and present cost estimates. This person will also briefly discuss
baseline management plans that explain how any variances to the baselines will be
addressed throughout the project.
Having agreed on the baselines, the project manager can proceed with outlining
baseline management plans, which are subsidiary to the project plan. Those plans
explain how to manage risks, quality, issues, communications, changes etc.
Step # 2. Identify Stakeholder Roles and Responsibilities
Every person or organization involved in a project is expected to perform some

role and carry out certain responsibilities. All those people/organizations involved are
called stakeholders. A description of stakeholders’ role and responsibilities will explain
“who does what job“.
Here’s a common list of stakeholder roles and responsibilities:
• Sponsor, a person representing a sponsoring organization that owns the project

and provides necessary investments. The sponsor provides strategic guidance,
oversight and control
• Project Manager, a person who develops the project plan, controls the execution
stage and reports on results
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• Team, a group of people who perform the tasks and jobs defined by the plan
• Customer, a person or organization that specifies product expectations and
receives the end product
• Expert, who clarifies the product requirements and provides expert advice
• User, who may participate in the planning process and who actually uses the end
product
Along with these roles, there can be others such as quality engineers, business
analytics, procurement staff, etc.
When the stakeholders and their roles and responsibilities are identified, the next
step to developing a project plan is to present the baselines to the stakeholders. The
best way to do it is to perform a meeting, for instance the kick-off meeting. Here’s
an example agenda for the kick-off meeting. During such a meeting the project manager
will present the project to the team and other stakeholders, explain how decisions are
made, describe what implementation approach will be used, and highlight other
concerns critical to the planning process.
Tip: First, identify people and organizations that take stake in your project and
thus have an interest in it. Then, create a stakeholder list that specifies names of those
people and organizations. Next, create an organizational chart that explains what role
and related duties every stakeholder will carry out. Finally, hold a kick-off meeting to
gather all stakeholders and discuss your project with them.
Step #3. State the Scope
A project plan is always based on a statement of scope that defines what

outcome of the project will be. The scope statement is the major document used to
communicate the project to the stakeholders and get the buy-in and agreement from the
sponsor.
As a document, the scope statement highlights these topics:
• The business need and problem to be addressed by the project

• The objectives that relate to the problem
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• The approach that will be used to achieve the objectives and solve the problem
• The benefits to be gained upon success
• The deliverables (including acceptance criteria) to be produced upon project
completion
• The key milestones that explain what intermediate results to receive throughout the
project life-cycle
• Other components that define the nature and size of work
Step #4. Developing the Baseline Management Plans
As mentioned at the first step, the project manager outlines subsidiary plans for
managing quality, issues, changes and other matters. At the forth step, the manager
should develop the plans in detail and then communicate them to the team and other
stakeholders.
The baseline management plans should address the following matters:
• Time
• Cost
• Quality
• Communications
• Procurement
• Issues
• Changes
• Risks
• Human Resources
• Scope
Step #5. Communicate the Plan
Finally, when the baselines are established, all the subsidiary plan are
developed, the scope is stated, and the roles and responsibilities are identified, it is time
to develop and communicate the general plan that leads team effort and determines the
course of action throughout the project life-cycle.
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The project plan is the output of the planning process, which includes all the
tools, solutions and decisions identified at the previous four steps. This document
determines how to manage issues, risks, changes, quality, staff, communications,
procurement, cost, time. It also clarifies how to integrate all those matters and keep the
project running smoothly.
C.1 WORK BREAKDOWN STRUCTURE (WBS)
A work breakdown structure (WBS) is a key project deliverable that organizes

the team's work into manageable sections. The Project Management Body of
Knowledge (PMBOK) defines the work breakdown structure as a "deliverable oriented
hierarchical decomposition of the work to be executed by the project team." The work
breakdown structure visually defines the scope into manageable chunks that a project
team can understand, as each level of the work breakdown structure provides further
definition and detail. Figure 1(below) depicts a sample work breakdown structure with
three levels defined.
Figure 3.2 Work Breakdown Structure
Source: https://www.workbreakdownstructure.com/
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An easy way to think about a work breakdown structure is as an outline or map

of the specific project. A work breakdown structure starts with the project as the top-
level deliverable and is further decomposed into sub-deliverables using the following
outline hierarchy.
Figure 3.3 Work Breakdown Structure Deliverable
Source: https://www.workbreakdownstructure.com/
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The project team creates the project work breakdown structure by identifying the
major functional deliverables and subdividing those deliverables into smaller systems
and sub-deliverables. These sub-deliverables are further decomposed until a single
person can be assigned. At this level, the specific work packages required to produce
the sub- deliverable are identified and grouped together. The work package represents
the list of tasks or "to-dos" to produce the specific unit of work. If you've seen detailed
project schedules, then you'll recognize the tasks under the work package as the "stuff"
people need to complete by a specific time and within a specific level of effort.
From a cost perspective, these work packages are usually grouped and assigned
to a specific department to produce the work. These departments, or cost accounts, are
defined in an organizational breakdown structure and are allocated a budget to produce
the specific deliverables. By integrating the cost accounts from the organizational
breakdown structure and the project's work breakdown structure, the entire organization
can track financial progress in addition to project performance.
Why use a Work Breakdown Structure?
The work breakdown structure has a number of benefits in addition to defining

and organizing the project work. A project budget can be allocated to the top levels of
the work breakdown structure, and department budgets can be quickly calculated based
on each project's work breakdown structure. By allocating time and cost estimates to
specific sections of the work breakdown structure, a project schedule and budget can
be quickly developed. As the project executes, specific sections of the work breakdown
structure can be tracked to identify project cost performance and identify issues and
problem areas in the project organization. For more information about Time allocation,
see the 100% Rule.
Project work breakdown structures can also be used to identify potential risks in
a given project. If a work breakdown structure has a branch that is not well defined, then
it represents a scope definition risk. These risks should be tracked in a project log and
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reviewed as the project executes. By integrating the work breakdown structure with an
organizational breakdown structure, the project manager can also identify
communication points and formulate a communication plan across the project
organization.
When a project is falling behind, referring the work breakdown structure will
quickly identify the major deliverables impacted by a failing work package or late sub-
deliverable. The work breakdown structure can also be color coded to represent sub-
deliverable status. Assigning colors of red for late, yellow for at risk, green for on-target,
and blue for completed deliverables is an effective way to produce a heat-map of project
progress and draw management's attention to key areas of the work breakdown
structure.
Work Breakdown Structure Guidelines
The following guidelines should be considered when creating a work breakdown

structure:
• The top level represents the final deliverable or project

• Sub-deliverables contain work packages that are assigned to an organization’s
department or unit
• All elements of the work breakdown structure don’t need to be defined to the same
level
• The work package defines the work, duration, and costs for the tasks required to
produce the sub-deliverable
• Work packages should not exceed 10 days of duration
• Work packages should be independent of other work packages in the work
breakdown structure
• Work packages are unique and should not be duplicated across the work breakdown
structure
• Tools to Create a Work Breakdown Structure
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Creating a Work Breakdown Structure is a team effort and is the culmination of

multiple inputs and perspectives for the given project. One effective technique is to
organize a brainstorming session with the various departments that will be involved with
the project. Project teams can use low-technology tools like a white board, note cards,
or sticky note pads to identify major deliverables, sub-deliverables, and specific work
packages. These cards can be taped to a wall and reorganized as the team discusses
the major deliverables and work packages involved in the project.
The low-technology approach is easy to do; however, it does not work well with
distributed teams or translate easily into an electronic format. There are several tools
available that support mind mapping, brainstorming, and work breakdown structures.
Match Ware Mind View is an easy-to-use mind mapping software package that
supports work breakdown structures, project outlines, Gantt charts, and exports easily
into Microsoft Project for further schedule definition.
C.2 PROJECT BUDGET & COST BREAKDOWN
Is a cost allocation to the lowest level of the Work Breakdown Structure (WBS).
The CBS is a breakdown of the costs of the various components of the structure
including all works or services done by the subcontractors. The CBS is used to
continuously compare the actual costs with the budget and integrate to the cost control
system.
OVERVIEW OF COST ESTIMATING
Cost estimating is the practice of forecasting the cost of completing a project with
a defined scope. It is the primary element of project cost management, a knowledge
area that involves planning, monitoring, and controlling a project’s monetary costs.
(Project cost management has been practiced since the 1950s.) The approximate total
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project cost, called the cost estimate, is used to authorize a project’s budget and manage
its costs.
Professional estimators use defined techniques to create cost estimates that are
used to assess the financial feasibility of projects, to budget for project costs, and to
monitor project spending. An accurate cost estimate is critical for deciding whether to
take on a project, for determining a project’s eventual scope, and for ensuring that
projects remain financially feasible and avoid cost overruns.
Cost estimates are typically revised and updated as the project’s scope becomes
more precise and as project risks are realized — as the Project Management Body of
Knowledge (PMBOK) notes, cost estimating is an iterative process. A cost estimate may
also be used to prepare a project cost baseline, which is the milestone-based point of
comparison for assessing a project’s actual cost performance.
Key Components of a Cost Estimate
A cost estimate is a summation of all the costs involved in successfully finishing

a project, from inception to completion (project duration). These project costs can be
categorized in a number of ways and levels of detail, but the simplest classification
divides costs into two main categories: direct costs and indirect costs.
• Direct costs are broadly classified as those directly associated with a single area
(such as a department or a project). In project management, direct costs are
expenses billed exclusively to a specific project. They can include project team
wages, the costs of resources to produce physical products, fuel for equipment, and
money spent to address any project-specific risks.
• Indirect costs, on the other hand, cannot be associated with a specific cost center
and are instead incurred by a number of projects simultaneously, sometimes in
varying amounts. In project management, quality control, security costs, and utilities
are usually classified as indirect costs since they are shared across a number of
projects and are not directly billable to any one project.
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A cost estimate is more than a simple list of costs, however: it also outlines the
assumptions underlying each cost. These assumptions (along with estimates of cost
accuracy) are compiled into a report called the basis of estimate, which also details
cost exclusions and inclusions. The basis of estimate report allows project
stakeholders to interpret project costs and to understand how and where actual costs
might differ from approximated costs.
Beyond the broad classifications of direct and indirect costs, project expenses
fall into more specific categories. Common types of expenses include:
Labor: The cost of human effort expended towards project objectives.
Materials: The cost of resources needed to create products.
Equipment: The cost of buying and maintaining equipment used in project work.
Services: The cost of external work that a company seeks for any given project
(vendors, contractors, etc.).
Software: Non-physical computer resources.
Hardware: Physical computer resources.
Facilities: The cost of renting or using specialized equipment, services, or locations.
Contingency costs: Costs added to the project budget to address specific risks.
CREATE PROJECT COST ESTIMATES AT CRITICAL POINTS IN THE TIMELINE
Cost estimates are critical to successful project management, so teams are

expected to produce a reasonably accurate and reliable estimate during the conception
and definition phase of a project. Estimates are adjusted for accuracy during the
planning phase, as project stakeholders and sponsors may ask for revisions before they
are willing to authorize a budget. After this early stage, the accuracy of estimates is
systematically increased.
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Cost estimating is an ongoing process, and estimate revisions are normal in
order to ensure accuracy throughout project execution. Typically, work scheduled in the
near future will have the most accurate estimates, while work scheduled farther away in
time have less accurate estimates. This approach is known as rolling wave planning.
Detailed cost estimates are usually broken down into greater levels of detail and
supplementary information. These outputs typically include:
• Activity cost estimates for the activities that make up a project.

• Supporting details, which include assumptions underlying estimates, cost data
sources, and cost element sensitivity.
• Requested changes, which a newer, more accurate cost estimate may prompt.
• Updates to the cost management plan, such as those necessitated by changes to
the project scope.
• Inputs for subsequent planning processes that use cost estimates.
THE CONTINUUM OF ACCURACY IN PROJECT COST ESTIMATIONS
Project cost estimates are classified into categories based on how well the scope
is defined at the time of estimation, on the types of estimation techniques used, and on
the general accuracy of estimates. These categories are not standardized, but they are
all based on the recognition that a cost estimate can only be as accurate as the project
scope is detailed. In its estimating manual, the American Society of Professional
Estimators (ASPE) classifies cost estimates in order of increasing accuracy on a five-
level scale. Level 1 is an order of magnitude estimate and Level 5 is a final bid. The U.S.
Department of Energy uses a similar five-class scale, but in the reverse accuracy order
(Class 5 as an order of magnitude estimate and Class 1 as a definitive estimate).
AACE International (formerly the Association for the Advancement of Cost

Engineering) offers a helpful chart summarizing key points. Here’s an overview of the
cost estimate categories:
• Order of magnitude estimates: An order of magnitude estimate, or ASPE Class 5,

is an extremely rough cost estimate created before a project has been defined. It is
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based only on expert judgment and the costs of similar past projects. An order of
magnitude estimate is typically presented as a range of costs spanning -25% to
+75% of the actual project cost. It is only used in high-level decision making to screen
projects and determine which ones are financially feasible.
• Intermediate estimates: An intermediate estimate can be created using stochastic
or parametric techniques when a project is defined to some limited extent. Like an
order of magnitude estimate, its main purpose is determining project feasibility based
on the general project concept.
• Preliminary estimates: Created when a project’s deliverables are about halfway
defined, a preliminary estimate uses somewhat detailed scope information to
incorporate unit costs. Preliminary estimates are accurate enough to be used as a
basis for project financing. Some project budgets are authorized based on the
preliminary estimate.
• Substantive estimates: A substantive estimate uses a reasonably finalized project
design to create a fairly accurate cost estimate based mainly on unit costs. At this
point, the project’s objectives and deliverables are established, so a substantive
estimate is accurate enough to create a bid or tender to complete a project.
Substantive estimates may also be used to control project expenditure.
• Definitive estimates: Drafted when a project’s scope and constituent tasks are
almost fully defined, a definitive estimate makes full use of deterministic estimating
techniques, such as bottom-up estimating. Definitive estimates are the most
accurate and reliable and are used to create bids, tenders, and cost baselines.
Of course, even definitive estimates do not remain static through project

execution. Since all estimates are based on numerous assumptions and are contingent
upon risks of all magnitudes, cost estimates are often updated if these base assumptions
change significantly or additional risks are realized. When this happens, the project cost
baseline is revised accordingly so that you can continue to assess project performance
accurately.
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Estimates of all types are created using a combination of estimation techniques
(with varying levels of accuracy). As we have seen, the most accurate estimates rely
more on deterministic methods than on conceptual methods.
MAJOR COST ESTIMATING TECHNIQUES: BEST USES FOR EACH
To create accurate estimates, cost estimators use a combination of estimating

techniques that allow for varying levels of accuracy. While the cost estimator always
aims to create the most accurate estimate possible, they may have to start with less
accurate estimates and revise once project scope and deliverables are fleshed out. The
most widely used cost estimating techniques are:
• Analogous estimating: Like expert judgment, analogous estimating — also called

top-down estimating or historical costing — relies on historical project data to form
estimates for new projects. Analogous estimating draws from a purpose-built archive
of historical project data, often specific to an organization. If an organization
repeatedly performs similar projects, it becomes easier to draw parallels between
project deliverables and their associated costs, and to adjust these according to the
scale and complexity of a project.
Analogous estimating can be quite accurate if used to form estimates for

similar projects and if experts can precisely assess the factors affecting costs. For
example, a similar project conducted three years ago might be used as the basis for
a new project cost estimate. Adjust the estimate upward for inflation, downward for
the amount of resources required, and upward again for the project’s level of
difficulty. These adjustments are typically stated as percentage changes — a new
project might require 10 percent more preparation time and 15 percent more on
resources. However, project management professional Rupen Sharma stresses the
need to make sure that projects really are comparable since projects that appear
similar, such as road construction, can actually cost vastly different amounts
depending on other factors — say, local landscapes and climates.
• Bottom-up estimating: Also called analytical estimating, this is the most accurate
estimating technique - if a complete work breakdown structure is available. A work
breakdown structure divides project deliverables into a series of work packages (each
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work package comprised of a series of tasks). The project team estimates the cost
of completing each task, and eventually creates a cost estimate for the entire project
by totaling the costs of all its constituent tasks and work packages — hence the
name bottom-up. Bottom-up estimates can draw from the knowledge of experienced
project teams, who are better equipped to provide task cost estimates.
While deterministic estimating techniques such as bottom-up estimating are

undoubtedly the most accurate, they can also be time-consuming, especially in large
and complex projects with numerous work breakdown structure components. It is
not unusual for definitive estimates to also use techniques such as stochastic,
parametric, and expert-judgment-based estimating (if these have proved suitably
accurate in early estimates). That said, bottom-up estimating is also the most
versatile estimating technique and you can use it for many types of projects.
• Parametric estimating: For projects that involve similar tasks with high degrees of
repeatability, use a parametric estimating technique to create highly accurate
estimates using unit costs. To use parametric estimating, first divide a project into
units of work. Then, you must determine the cost per unit, and then multiply the
number of units by the cost per unit to estimate the total cost. These units might be
the length in feet of pipeline to be laid, or the area in square yards of ceiling to be
painted. As long as the cost per unit is accurate, estimators determine quite precise
and accurate estimates.
However, as project management professional Dick Billows, Chief Executive

Officer of 4PM.com, cautions, parametric estimating does not work well with creative
projects or those with little repeatability. It is difficult, for example, to come up with
an accurate cost per chapter for editing a book written by 12 different authors, since
each chapter is likely to require a different amount of work. Similarly, a writer penning
a fantasy novel on commission may find herself struggling to advance the story at
some points and fully immersed in its flow at others. Therefore, parametric
estimating is a good choice only for skill-based projects with uniform, repeatable
tasks.
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Figure 3.4 Parametric Cost Estimating Template
Source: https://www.smartsheet.com/
41
Figure 3.5 Comparation of Analogous, Bottom-Up and Parametric

estimating
• Cost of quality: The cost of quality is a concept used in project management - and
more broadly in product manufacturing - to measure the financial cost of ensuring
that products meet agreed-upon specifications. It usually includes the costs of
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preventing, identifying, and addressing defects. As an aspect of quality

management, the cost of quality is usually an indirect project cost.
• Delphi cost estimation: An empirical estimation technique based on expert
consensus, Delphi estimation can help resolve discrepancies among expert
estimates. A coordinator has experts prepare anonymous cost estimates with
rationales; once these anonymous estimates are submitted, the coordinator
prepares and distributes a summary of the responses and experts create a new set
of anonymous estimates. This exercise is repeated for several rounds. The
coordinator may or may not allow the experts to discuss estimates after each round.
As the exercise progresses, the estimates should converge (indicating growing
consensus between the estimators). When an estimate consensus has been
reached, the coordinator ends the exercise and prepares a final consensus-based
estimate.
• Empirical costing methods: Empirical costing methods draw from previous project
experiences using software- or paper-based systems. These methods work well for
projects that are similar and frequently conducted in certain industries. A project
manager wanting to obtain an empirical cost estimate completes a form detailing the
project’s characteristics and parameters, and the system estimates a cost based on
the kind of project. Since empirical costing methods draw from existing data and are
increasingly automated, they are accurate, time-effective choices for less
complicated projects. The Royal Institution of Chartered Surveyors’ Building Cost
Information Service (BCIS), which computes rebuilding costs for houses, is an
example of an empirical costing method.
• Expert judgment: Most commonly used in order of magnitude and intermediate
estimates, expert judgment estimating is conducted by specialists who know how
much similar projects have cost in the past. As such, it relies mainly on drawing
parallels between past and future projects to create and adjust estimates. Since any
two projects are unlikely to be identical and project work is typically complex, expert
judgment estimates are presented as a range. While a wide range typically means
these estimates have limited use, project management professional Billows points
out that such broad estimates are only meant to indicate project feasibility and
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provide a ballpark figure to hold project managers accountable. In this regard, they
“are better than commitments you can’t keep,” Billows says.
• Reserve analysis: Reserve analysis is an umbrella term for a number of methods
used to determine the size of contingency reserves, which are budgetary allocations
for the incidence of known risks. One outcome of reserve analysis is a technique
called padding, which involves increasing the budgeted cost for each scheduled
activity beyond the actual expected cost by a fixed percentage. Critical path activities
may have larger percentages assigned as padding. The Project Management
Institute (PMI) also suggests other methods for managing contingency reserves,
including the use of zero-duration activities that run in tandem with scheduled
activities and the use of buffer activities that contain both time and cost contingency
reserves.
• Resource costing: Resource costing is a simple mathematical method to compute
the costs of hiring resources for a project. It is easily done by multiplying the hourly
cost of hiring a resource by the number of projected employment hours.
• Three-point estimating: Three-point estimating has roots in a statistical method
called the Program Analysis and Review Technique (PERT), which is used to analyze
activity, project costs, or durations by determining optimistic, pessimistic, and most
likely estimates for each activity. Three-point estimating uses a variety of weighted
formula methods to compute expected costs/durations from optimistic, pessimistic,
and most likely costs/durations. One commonly used formula for creating estimates
is:
Expected value = [Optimistic estimate + Pessimistic estimate + (4 x Most likely estimate)] ÷ 6
The standard deviation is also calculated to create confidence intervals for estimates:
Standard deviation = (Pessimistic estimate – Optimistic estimate) ÷ 6
Three-point estimating can construct probability distributions of estimates in a

number of fields. In project cost estimating, estimators may create a three-point estimate
of cost using optimistic, pessimistic, and most likely costs. Alternatively, for projects that
measure deliverables in units of time with fixed costs, estimators may use expected
durations as the number of units and determine costs via parametric estimates.
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However, remember that three-point estimates are only as good as their initial
optimistic, pessimistic, and most likely estimates - if these are not accurate, the expected
values are useless.
Figure 3.6 Three-Point Cost Estimating Template
• U.S. Government Accountability Office (GAO) 12-step process: The GAO

recommends a 12-step process for creating high-quality cost estimates. Essentially
a deterministic estimating technique, the 12-step process is a systematic approach
where estimators select an appropriate estimating technique for each component of
a work breakdown structure, fully identify the assumptions underlying estimates, and
conduct risk and uncertainty analyses for estimates.
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• Using cost estimating software: Project management software can simplify, speed
up, and enhance cost estimating. You can use a variety of project management
software to create cost estimates or to determine the levels of uncertainty involved
in cost estimates via probabilistic modeling.
The Monte Carlo method is one example of this modeling approach. It refers to
the risk analysis simulations performed by researchers working on the atomic bomb
and named after the gambling resort in Monaco. The Monte Carlo method produces
a range of potential outcomes and offers probabilities for their occurrence based on
different variables.
• Vendor bid analysis: This estimating technique is used to supplement internally
constructed estimates. It allows estimators to compare their own estimates with
those stated in bids submitted by vendors, and can provide a useful point of
comparison and external perspectives on what a project should cost.
WHAT MAKES A GOOD COST ESTIMATE?
The usefulness of a cost estimate depends on how well it performs in areas like
reliability and precision. There are several characteristics for judging cost estimate
quality. These include:
• Accuracy: A cost estimate is only as useful as it is accurate. Aside from selecting

the most accurate estimating techniques available, accuracy can be improved by
revising estimates as the project is detailed and by building allowances into the
estimate for resource downtime, project assessment and course correction, and
contingencies.
• Confidence level: Since even the best estimates contain some degree of
uncertainty, it is important to communicate the amount of potential variability in any
estimate to stakeholders. Confidence levels can communicate estimates as ranges,
such as those produced by three-point estimating techniques or Monte Carlo
simulations.
• Credibility: Stakeholders or sponsors preparing to authorize budgets want to know
that estimates are founded in established fact or in practical experience. Increase
•
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the credibility of an estimate by incorporating expert judgment and by using set

values for variables, such as unit costs and work rates.
• Documentation: Since project managers are eventually held accountable to cost
estimates, it is important that the assumptions underlying estimates are identified
and recorded in writing, and that regular budget statements are provided. Thorough
documentation precludes misunderstandings and helps stakeholders understand
the reasons behind estimate revisions.
• Precision: To reduce the variation in cost estimates due to techniques used,
estimators should compare and corroborate estimates. Cost estimating software
makes this fairly easy.
• Reliability: Reliability is a concept based on the extent to which historical cost
estimates for a certain type of project have been accurate. For new projects that are
similar to successfully-completed past projects, analogous estimating techniques
will allow reliable estimates.
• Risk detailing: All projects can be affected by negative risks, so it is important to
build allowances into cost estimates. Thorough risk identification and allocation of
contingency reserves is the most common approach. Estimates should be
overestimated rather than underestimated, and estimators should establish
tolerance levels for cost deviation.
• Uniformity: For performing organizations that conduct many projects of the same
type, expect unit costs to be reasonably consistent across projects and only adjusted
for inflation. This type of unit cost uniformity is possible for organizations that have
undertaken several similar projects, which enables them to create reference lists for
recommended unit costs.
• Validity: Confirming the validity of a cost estimate involves checking the underlying
data for accuracy. Improve validity by relying on established cost literature, and on
cost indices when up-to-date literature is unavailable.
• Verification: Cost verification is the act of checking that mathematical operations
used in an estimate were performed correctly. Cost verification is much easier if
estimates are properly documented.
In their book Project Management for Business, Engineering, and Technology,

project management experts John M. Nicholas of Loyola University and Herman Steyn
47
of University of Pretoria, South Africa, say the best estimates are made by teams that
include designers, builders, suppliers (this is opposed to estimates from more
homogenous teams). They describe these diverse estimating teams as concurrent
engineering teams.
THE MOST LIKELY CAUSES OF INACCURATE PROJECT COST ESTIMATES
Alternatively, factors that undermine cost estimations include poor raw data or
assuming that resources are 100 percent utilized. Some of the most common pitfalls for
cost estimators are:
• Lack of experience with similar projects: Accuracy in cost estimating tends to

increase as estimators, project teams, and organizations gain experience working
with similar projects. Inexperienced estimators and project teams may not be familiar
with the scope of a project, which may lead to inaccuracies with - even with
deterministic estimating techniques. At an organizational level, the use of analogous
estimating techniques is typically not reliable if the organization has not conducted
similar projects before.
• Length of the planning horizon and of the project: Professional estimators stress
the importance of not making premature estimates. As we have discussed, accurate
estimating depends on the degree to which a project is defined. For large, complex
projects, approaches such as rolling wave planning mean that future work is less
well defined. It is important that cost estimating practices reflect this and that cost
estimates are revised as more up-to-date information becomes available. For mega
projects that take several years to complete, it’s important to take currency value
fluctuation and political climates into account.
• Human resources: Creating accurate estimates becomes more difficult as the
number of human resources involved in a project increases. While it is standard
practice to assume that any resource will only be productive 80% of the time and to
create estimates accordingly, it becomes harder to account for costs in managing
and organizing people. This is especially noticeable in project activities that involve
building consensus or coordinating tasks across many people.
48
Difficulty also arises when estimating costs of human resources via resource
costing or parametric estimating. Both estimating techniques revolve around the concept
of unit-based costing, but the complexities of managing people make it difficult both to
obtain accurate unit costs and to forecast the task completion time accurately. Further,
it’s unlikely that workers’ skill levels will be identical (even if they are classified as such),
so some time deviation is inevitable. This shows the value of systematically
overestimating instead of underestimating, especially when dealing with human
workers.
Several other common mistakes can affect the accuracy of estimates:
• Not fully understanding the work involved in completing work packages: This is
sometimes a problem for inexperienced project teams who have not worked on
similar projects before.
• Expecting that resources will work at maximum productivity: A more appropriate
rule of thumb is to assume 80% productivity.
• Dividing tasks between multiple resources: Having more than one resource
working on a task typically necessitates additional planning and management time,
but this extra time is sometimes not taken into account.
• Failing to identify risks and to prepare adequate contingency plans and reserves:
Negative risks can both raise costs and extend durations.
• Not updating cost estimates after project scope changes: Updated cost estimates
are an integral part of scope change management procedures, as project scope
changes render prior estimates useless.
• Creating hasty, inaccurate estimates because of stakeholder pressure: Since
project managers are held accountable for estimates, order of magnitude estimates
is a much better choice than numbers pulled out of thin air.
• Stating estimates as fixed sums, rather than ranges: Point estimates are
misleading. All estimates have inherent degrees of uncertainty, and it is important to
adequately communicate these via estimate ranges.
• Making a project fit a fixed budget amount: The scope of a project should determine
its budget, not the other way around. As Trevor L. Young explains in his book How
to be a Better Project Manager, estimating is a “decision about how much time and
49
resource are required to carry out a piece of work to acceptable standards of

performance.” The reverse approach — planning projects to fit budgets — is likely
to result in projects that fail to meet requirements and to deliver results.
OTHER PROJECT MANAGEMENT FIELDS TIE TO COST ESTIMATING
The job of estimating project costs and ongoing budget control is not done in a
vacuum. Several other project management specialties influence it, and the cost
estimation, in turn, has impact on those other project aspects. Some of these are:
• Communications management: Routinely update project team members and

stakeholders with project activities. Project team members who do not understand
their roles cost the project time and money. Likewise, stakeholders who do not
receive regular project progress updates may request costly management changes
at non-optimal times.
• Human resource management: Inadequately trained or unprepared project staff can
be a liability in terms of both time and money.
• Procurement management: Ineffective procurement management can increase
project costs, especially for projects performed over extended lengths of time. For
example, fluctuating resource prices and changing economic and political conditions
may make it more expensive to procure necessary goods or services.
• Quality management: Establish quality requirements for project deliverables before
execution begins, and communicate these requirements to all project team
members. A lack of clarity on quality requirements can prove costly during the quality
control process, when defects or noncompliance must be addressed (often at
substantial cost).
• Risk management: All projects face risks. Adequate risk identification and
preparation of contingency plans and reserves are vital to prevent risks from causing
cost overruns.
• Time management: Project costs are directly related to the time taken to complete
a project, and so a failure to construct an accurate and viable project schedule will
likely cause cost overruns.
50
HOW COST ESTIMATION IS APPLIED IN KEY INDUSTRIES
Regardless of the size and scope of your project, standardized cost estimating
will help produce accurate estimates. That said, the industry, sector, and type of project
can have a bearing on how you develop your estimates. Therefore, it’s worth examining
how cost estimating is done in some key industries and more complex use cases.
Construction
Construction costs span two major cost categories: those incurred in the actual
construction and development of a facility and those incurred in the operations and
maintenance of the facility throughout its life cycle.
The first category includes things like the cost of land, labor, equipment, and
materials needed to build a facility, the cost of architectural design and engineering, and
the cost of facility inspection. The second category includes maintenance and repair
costs, land rent and utilities costs, and the cost of operations and employing operations
staff.
One factor that looms large in cost estimation for construction projects is the need
for contingencies. Since construction projects are typically large-scale and performed
over extended periods of time, adequate contingency planning is vital. Contingencies in
construction projects include:
• Schedule adjustments, which are not unusual for such large-scale projects. Given
the large costs of equipment and labor in construction projects, delays and schedule
extensions can increase costs considerably.
• Changes in equipment and labor costs, which are also not uncommon in lengthy
projects.
• Environmental changes, such as changes in climate — again not uncommon in
lengthy projects.
• Changes in design development, which, though rare, are not unheard of. These
depend on the quality of pre-execution project planning and uncontrollable
circumstances such as natural events.
51
Cost estimates for construction projects fall into three classes:
• Design estimates: Created during project planning and design, these include a
number of estimates ranging in accuracy from screening through conceptual to
definitive.
• Bid estimates: This is a finalized definitive estimate used to conduct competitive
bidding.
• Control estimates: Use these to measure cost performance during project
execution; they are susceptible to revisions during a project.
An important aspect of cost estimation in construction projects is determining the

relationship between project scale and average cost per unit. Typically, estimators using
empirical data to establish these relationships will find that there are economies or
diseconomies of scale. That is, the average cost per unit changes as the scale of the
project increases. Estimators seek to take advantages of economies of scale to minimize
unit costs.
Information Technology
In producing cost estimates for information technology projects, many of the

conventional cost estimation practices do not adapt well to agile project development,
given this approach’s emphasis on changing project scopes.
However, since the primary input in agile processes is labor - not resources -
and that Agile development supports fixed-time iterations, use parametric estimating
techniques to create accurate cost estimates. Agile development teams divide work into
manageable portions for each iteration and can thus charge fixed costs depending on
the number of developers needed to complete the work scheduled for each iteration.
Even here, however, there may be difficulties. Fixed price cost estimating works
well for adaptation work, which focuses mainly on amending already designed IT
products. Developmental work, on the other hand, is more difficult to estimate, given
that it involves product design. Because agile methods encourage scope changes, it is
difficult to pre-plan the amount of time to spend on design. Therefore, cost overruns for
developmental work are quite common.
52
On the whole, therefore, cost estimation for IT development projects (involving

both developmental and adaptation work) is best conducted as a combination of top-
down and bottom-up estimating. Adaptation, which is generally well defined, can be
estimated using bottom-up estimating techniques since its scope is fixed.
Developmental work, which does not have a fixed scope, is better estimated using top-
down techniques such as expert judgment and analogous estimating.
Engineering
Civil engineering projects (such as for highways and bridges) sometimes have
added pressure from increased public interest in their progress and especially their cost
performance. This can be problematic when critics fail to appreciate the iterative nature
of cost estimating and draw misleading comparisons between inaccurate preliminary
estimates and control estimates. This problem is compounded by the fact that civil
engineering projects typically feature large degrees of uncertainty in estimates —
usually due to a combination of project length, natural conditions, and, in some
instances, political conditions in the region. As such, organizations such as The
Institution of Engineers of Ireland suggest that public and that more definitive estimates
clearly state project scopes and underlying assumptions.
Civil engineering projects that run over extended periods of time may also have
to contend with scope changes requested by changing political administrations. In some
developing countries, these projects might struggle to retain political support as
governments change, and it is not uncommon for there to be problems with
administrative corruption. As such, civil engineering projects place special importance
on adequate risk identification, and contingency reserves for these projects tend to be
generous. It is also important to undertake project planning in a way that minimizes the
likelihood of future scope changes, since these can easily cause cost overruns.
Service Industries
Project costing in service industries can present a unique set of challenges.

Since the emphasis is on knowledge-based work (for which expected durations and
rates of work can be difficult to forecast), simple, unit-based estimating techniques are
53
unsuitable. Instead, service industry projects typically compute labor and resource costs
separately, and add overhead costs to these when creating estimates.
Costs for service industry projects are broadly divided into three categories: labor
costs, resources, and overheads. In most cases, labor and resource costs are simply
billed as they are incurred on a per-job basis. Billing for overheads, however, is more
complicated, especially since increased automation has in recent years increased the
size of overhead costs for many service industries. Service industries adopt a variety of
costing techniques to manage billing for overhead costs, including:
• Job order costing: Applies a fixed overhead fee to each job.

• Activity-based costing: Assigns overheads in proportion to service activities via cost
drivers.
• Actual costs plus: Assigns a percentage of a company’s actual costs as overheads
to each job.
• Set costs: Charges each job a predetermined fixed fee.
Set costs jobs are, of course, the easiest to estimate. For the other costing
techniques, the separation of resource costs from labor costs can improve the accuracy
of estimates as long as service providers can accurately assess the extent of labor
involved in each project — which can be imprecise.
COMMONLY USED TOOLS FOR COST ESTIMATING
Cost estimates were traditionally developed using spreadsheets and formulas.

But in recent years, cost-estimating software has proliferated, and now includes
programs designed for specific fields such as construction estimations. Because it’s
important to update cost estimates as scope or other factors change, estimation
software often integrates with other project management applications.
One such tool is Smart sheet, a work management and automation platform that
enables enterprises and teams to work better. With Smart sheet’s familiar spreadsheet
interface and robust project management features, you can create and manage cost
54
estimates and project plans all in one sheet. Once the project is underway, update cost
estimates as scope, resources, or timing changes.
C.3 SCHEDULE AND RISK ANALYSIS
Schedule Risk Analysis (SRA) is a simple yet effective technique to connect the
risk information of project activities to the baseline schedule, in order to provide
sensitivity information of individual project activities to assess the potential impact of
uncertainty on the final project duration and cost.
Since estimates about activity time and cost are predictions for the future and
human beings often tend to be overly optimistic or, on the contrary, often add some
reserve safety to protect themselves against unexpected events, knowledge about the
potential impact of these estimation errors on the project objective is a key add-on to
the construction of a project’s baseline schedule.
Figure 3.7 Baseline structure and Uncertainty steps of a schedule risk

analysis
Source: http://www.pmknowledgecenter.com/
55
Figure 3.8 Monte-Carlo simulation and Simulation output steps of a

schedule risk analysis
Source: http://www.pmknowledgecenter.com/
Each step will be briefly explained along the following sections, and can be
summarized as follows:
1. Baseline schedule: Construct an activity timetable

2. Define uncertainty: Define activity time and cost probability distributions
3. Run Monte-Carlo simulations: Run multiple project progress simulations
4. Interpret the simulation results: Interpret the sensitivity measures
56
Step 1. Baseline schedule
The construction of a project baseline schedule involves the definition of start and
finish times for each project activity, using earliest and latest start calculations with or
without the presence of limited resources. There is a wide range of techniques available
(PERT, CPM, etc...) which will not be discussed in this article.
The project baseline schedule serves as a point of reference to which the

simulated project progress of step 3 is compared to. Although it is generally accepted
that it is very unlikely that everything will go according to plan, the baseline schedule
plays a central role in schedule risk analysis and the lack of it would lead to incomparable
data or even biased results
Step 2. Define risk/uncertainty
Since time and cost estimates are often, if not always, subject to a margin or
error, people feel more comfortable with a range of duration and cost estimates for
project activities. Range estimates and risk assessment require analytical skills and basic
knowledge of statistics which is often perceived as mathematically complex and
sometimes theoretical and hence far from practice. However, a basic understanding of
probability and distribution functions already allows the project manager to improve
estimating the effects of unexpected events on the project outcome.
Step 3. Monte-Carlo simulations
Monte-Carlo simulation is a simple technique to quickly generate multiple runs

simulating real project progress. Each simulation run generates a duration and cost for
each project activity given its uncertainty profile defined in step 2. During each simulation
run, the simulation engine records all project schedules and critical paths during progress
57
in order to be able to measure the degree of activity sensitivity and the expected impact
of activity variation on the project objective, as reported in step 4.
Step 4. Sensitivity results
The output of a schedule risk analysis is a set of measures that define the degree
of activity criticality and sensitivity. These measures refine the black-and-white view of
the critical path (which defines that an activity is either critical or not) to a degree of
sensitivity, as follows:
• Criticality Index (CI): Measures the probability that an activity is on the

critical path.
• Significance Index (SI): Measures the relative importance of an activity.
• Schedule Sensitivity Index (SSI): Measures the relative importance of
an activity taking the CI into account.
• Cruciality Index (CRI): Measures the correlation between the activity
duration/cost and the total project duration/cost.
Each measure gives the project manager an indication of how sensitive the
activity is towards the final project duration or total cost.The values of the sensitivity
measures are available upon completion of the simulation run and are used as triggers
to focus on the risky activities which probably require higher attention in order to
achieve successful project fulfillment.
58
REFERENCES
WEBLIOGRAPHY:
• Ilveskoski, O., & Niittymaki, S. (2015, April). Construction Management Study

Book. Retrieved from:
https://www.theseus.fi/bitstream/handle/10024/88140/HAMK_CONSTRUCTI
ONMANAGEMENT_2015_ebook.pdf?sequence=1
• Delos Santos, J. (2017, February 3). What Is Construction Project
Management? Retrieved from https://project-management.com/what-is-
construction-project-management/
• Proforma Construction. (2016, April 25). Step 1: The Pre-Construction Phase
(Design Development). Retrieved from https://www.proformaco.com/pre-
construction-phase-design-development/
• Affairs, A. S. (2013, December 12). Develop a Project Plan. Retrieved from
https://www.usability.gov/how-to-and-tools/methods/develop-plan.html
• Shadan, K., & Fleming, G. (2012, March). Construction Project Management
Handbook. Retrieved from
https://www.transit.dot.gov/sites/fta.dot.gov/files/FTA_Report_No._0015.pd
f
• Work Breakdown Structure (WBS). (2009). Retrieved from
https://www.workbreakdownstructure.com/
• ThePD. (2015, November 5). CBS (Cost Breakdown Structure). Retrieved from
https://www.theprojectdefinition.com/cbs-cost-breakdown-structure/
• TheSmartSheet. (2019, January 10). The Ultimate Guide to Project Cost
Estimating. Retrieved from https://www.smartsheet.com/ultimate-guide-
project-cost-estimating
59
• Khan, S. (2016). Application of Design Structure Matrix (DSM) for Managing

Projects on the Basis of Constructability. Retrieved from
http://www.hrpub.org/download/20160530/CEA2-14805394.pdf
• Hendrickson, C. (1998). Project Management for Construction. Retrieved from
https://www.cmu.edu/cee/projects/PMbook/02_Organizing_For_Project_Ma
nagement.html
• OR-AS. (n.d.). Schedule Risk Analysis: How to measure your baseline schedule's
sensitivity? Retrieved from
http://www.pmknowledgecenter.com/dynamic_scheduling/risk/schedule-
risk-analysis-how-measure-your-baseline-schedule’s-sensitivity
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NATIONAL COLLEGE OF SCIENCE AND TECHNOLOGY

Amafel Bldg. Aguinaldo Highway, Dasmarinas, Cavite

Construction management or also called as construction project management

The management of construction projects requires knowledge of modern

Generally, project management is distinguished from the general management

By contrast, the general management of business and industrial corporations

Construction is the process of preparing and forming buildings and building

Construction management or construction project management is the

Owner’s Rep / Project Manager Company or person planning, organizing and

Program Manager Person who manages a retail store rollout program,

Figure 1.1 Relations in Construction Management Chart

• At Risk (Construction Manager as Contractor)

Company appointed to execute construction works and deliver the building as

PREQUALIFICATIONS AND SELECTION

• Bidding the Job

PREQUALIFICATIONS AND SELECTION

• Relevant experience, references, general reputation

PREQUALIFICATIONS AND SELECTION

Personnel who will be working on project

• Do they have experience on this particular job?

PREQUALIFICATIONS AND SELECTION

• Best possible work at the lowest possible price

Is made up of a group of interrelated work activities constrained by a specific

Figure 1.2 Project Organization without Project Manager Chart

Figure 1.3 Project Organization with Project Manager Chart

Pre-construction services can provide owners with a formal approach for

The pre-construction, or design phase, is central to the success of the entire

What does the process entail?

The outcomes of the pre-construction effort.

B.1 PROJECT ORGANIZATION

The management of construction projects requires knowledge of modern

Generally, project management is distinguished from the general management

The basic ingredients for a project management framework may be represented

Figure 2.1 Basic Ingredients in Project Management

Specifically, project management in construction encompasses a set of

1. Specification of project objectives and plans including delineation of scope, budgeting,

Trends in Modern Management

In recent years, major developments in management reflect the acceptance to various

The management process approach emphasizes the systematic study of management

Figure 2.2 Illustrative Hierarchical Structure of Management Functions

The management science and decision support approach contribute to the

The behavioral science approach for human resource development is important

Sustainable competitive advantage stems primarily from good management

Strategy is creating fit among a company's activities. The success of a strategy

• Creating a unique and valuable position.

Strategic Planning and Project Programming

The programming of capital projects is shaped by the strategic plan of an

Among various types of construction, the influence of market pressure on the

Figure 2.3 Ability to Influence Construction Cost Over Time

Effects of Project Risks on Organization

The uncertainty in undertaking a construction project comes from many sources

In approaching the problem of uncertainty, it is important to recognize that

Risks in construction projects may be classified in a number of ways. One form of

The environmental protection movement has contributed to the uncertainty for

Uncertainty stemming from regulatory agencies, environmental issues and

The risks related to organizational relationships may appear to be unnecessary

The risks related to technological problems are familiar to the design/construct

Organization of Project Participants

• How many organizations are involved?

1. Separation of organizations. Numerous organizations serve as consultants or

Since construction projects may be managed by a spectrum of participants in a

B.2 DESIGN STRUCTURE MATRIX

A Design Structure Matrix (DSM) is defined as a compact, matrix representation

A DSM is also known as “Dependency Structure Matrix” (Danilovic and