Project Management Concepts

Learning Objectives
Definition of a project, project management and its
attributes
Why project management?
Key constraints within which a project must be
managed
How a project is born
Life of a project
Steps involved in the project management process
Benefits of project management

What is a PROJECT?
Aprojectisanendeavortoaccomplish
aspecificobjectivethroughaunique
setofinterrelatedtasksandthe
effectiveutilizationofresources.
(Gido&Clements,2003)

What is a PROJECT?
Atemporaryendeavorundertakento
createauniqueproductorservice.
(PMBOK,1987)

What is MANAGEMENT?
Managementisaprocessofoneor
moreindividualcoordinatingothers
activitytoachieveresultwhichcannot
bedonebyindividualwhoworkalone.
(Donelly,Gibson&Ivancevich,1987)

What is PROJECT MANAGEMENT?

Theapplicationofknowledge,
skills,tools,andtechniquesto
projectactivitiesinordertomeet
orexceedstakeholderneedsand
expectationsfromaproject.
(PMBOK,1987)

Examples of Projects
Planningawedding
Designingandimplementingacomputersystem
Hostingaconference
Designingandproducingabrochure
Buildingashoppingmall
Holdingahighschoolreunion
Performingaseriesofsurgeriesonanaccidentvictim
Convertingabasementtoafamilyroom

Why Project Management?

Plus
Responsive to client
and environment
Fast problem
resolution
Quick decision
making

Minus
Organizational
complexity
Policy violations
Lower personnel
utilization

Attributes of a Project
Hasawelldefined
objective
Involvesadegreeof
uncertainty
(conflict)
Hasaspecific
timeframe

Composedofaseries
ofinterdependent
tasks

PROJECT

Maybeauniqueor
onetimeendeavor

Utilizesvarious
resources

Hasacustomer

Factors That Constrain The

Achievement of a Project Objective
COST
SCHEDULE

SCOPE
CUSTOMER
SATISFACTION

Unforeseen Circumstances
Unforeseencircumstancesmayjeopardize
achievementoftheprojectobjective.
Thechallengefacingtheprojectmanageristo
prevent,anticipate,and/orovercomesuch
circumstances.

The Project Life Cycle

Projectsarebornwhenaneedisidentifiedby
thecustomer.
Projectlifecyclesvaryinlength,fromafew
weekstoseveralyears.
Notallprojectsformallygothroughallfour
phasesoftheprojectlifecycle.

The Project Life Cycle

EFFORT
Identifya
need

Developa
proposed
solution

Performthe
project

Terminatethe
project

TIME

Phases of the Project Life Cycle

1
The first phase involves the identification of a
need, problem, or opportunity.
Theneedandrequirementsareusuallywritten
bythecustomerintoadocumentcalleda
requestforproposal(RFP).

Phases of the Project Life Cycle

2
The second phase is the development of a proposed
solution to the need or problem.
This phase results in the submission of a proposal.
The customer and the winning contractor negotiate and
sign a contract (agreement).

Phases of the Project Life Cycle

3
The third phase is performing the project.
Different types of resources are utilized
Results in the accomplishment of the project
objective

Phases of the Project Life Cycle

4
The final phase is terminating the project.
Perform close-out activities
Evaluate performance
Invite customer feedback

Project Phasing
Idea

P1
Inception
Phase

Need and intention to built (incl. initial

thought on facility)
Feasibility studies & Technical &
economic study
Project Budget
Project brief design, technical, cost,
quality, time parameters
External & Internal Stakeholders

External Project Environment

Stakeholders
competing demands...
EXTERNAL PROJECT ENVIRONMENT
Shareholders

Financiers

(Main) Client
Clients
Representatives

Corporate Enterprise

Professional
Associations
Government
Agencies

and its business purpose

Project
Sponsor

Primary
End Users

Consulting
Engineers

Project
Manager

Secondary
End Users

Legislative
Authorities

and
Project Team

Government
Ministries
Public
Media

General
Construction

Local Authorities
Local
Municipality

Internal Project Environment

Corporate Policy
Facility Planning & Standards

Co
mp

Board of
Dire ctors

Finance /Accounting/Paym ents

Audit
Le gal
M arke ting

Corporate Enterprise

eti
ng

and its business purpose

Project
Sponsor

Es tim ating
Proje ct Adm in

Contract
Adm in
Labour Re lations
Trade Coordination
Shop Draw ings

Consulting
Engineers

...

Ene rgy pre se rvation

Acous tics/Noise
Conve ying
Quality As s urance

Project
Manager

Sche duling

nd
s

Ele ctrical & ICT

Operations
Us e r Coordination

de
ma

Architectural
Structural
M e chanical

Quality Ins pe ction

Proce ss , Evironm e ntal
& othe r Specialis ts

and
Project Team

General
Construction

Expe diting
He alth, Safe ty, Security & Environm e nt
Cost Control
Quality Control

Cons truction Supe rvis ion

Spe cial Suppliers
Trade Contractors
Bonds arrange m e nts &
Ins urances
M ajor Suppliers

Project Phasing
What

P2
Definition
Phase

Requirement capture from Internal & External

Stakeholders
Scope of Work, Deliverables, time & budget
Technical & Design Concept (incl. site condition, soil
investigation & functionality)
Project implementation strategy
Master Implementation Programme
Organizational structure, System & Procedure
QA/QC, Communication & information plan
HSSE
Document Control Centre

Project Phasing
How

P3
Design
Phase

Detail design development, materials search

Value engineering, maintenance awareness
Preparing procurement strategy, tender documentation
Detail cost estimate & budget, cost control system
Performance & technical specifications
Approval of the Client

Project Phasing
How to
Make

P4
Procurement
Phase

Tendering process & Award

Evaluation Criteria
Spreadsheet Presentation for Comparison of different
Tender Proposal / Pricing
Recommendation

Project Phasing
Do

P5
Construction
Phase

Site planning
Detail construction work programs (incl. interfacing)
Contract administration
Design & technical site review & adjustment
How to manage TCQIOP
QA/QC, HSSE implementation & control
Operational readiness & maintenance plan
Testing, commissioning, & handover (incl. CF)

Project Phasing
Preserve

P6
O&M
Phase

Operation & maintenance process (Client /

Operator Organization)
Defect liability management
Contract closing & final account (incl.
dispute, claims)
Post-project evaluation & documentation

The Project Management Process

Theprojectmanagementprocessmeansplanning
theworkandthenworkingtheplan.

The Project Management Process

(Cont.)
Clearly define the project objective.
Divide and subdivide the project.
Define the specific activities that need to be
performed.
Graphicallyportraytheactivitiesinanetwork
diagram.

The Project Management Process

(Cont.)

The Project Management Process

(Cont.)

The Project Management Process

(Cont.)
Makeatimeestimate.
Makeacostestimate.
Calculate a project schedule and budget.

The Project Management Process

(Cont.)

The Project Management Process

(Cont.)

Controlling Projects
Establishabaselineplan.
Monitorprogress.
Measureactualprogressandcompareittoplanned
progress.
Takecorrectiveactioniftheprojectisbehind
schedule,overrunningthebudget,ornotmeeting
technicalspecifications.

Controlling Projects

Benefits of Project Management

Satisfied customers
Additionalbusiness
Expansionofcareeropportunities
Satisfactionofbeingonawinningteam
Improvedknowledgeandskills
Whenprojectsaresuccessful,everybodyWINS