Executive Diploma in Building and Facilities Management [Program Code: EDBFM]
Module 2: Principal and Practices of Project Management
By: Mohd Fadrul bin Hussin Email: bard_1699@yahoo.com Handphone: 017-2680556
Module 2: Principal and Practices of Project Management
Why Project Management is here?
Classes: 20th , 27th March, 3rd ,10th April 2011 Exam: 17th April 2011
Marking: Attendance Assignment Final Exam
: 5% : 35% : 60%
Module 2: Principal and Practices of Project Management
Focuses on Construction Project Management
Coverage: 1. Concept and Definition of Project management Project Management Objectives Project Manager Roles 2. Project Initiation Phases of a Project 3. Feasibility Study of Project 4. Development and Organization of Projects Contractual Approaches 5. Preconstruction Site Investigation and Estimating 6. Project Budgeting 7. Bidding and Award 8. Project Planning and Scheduling Work Breakdown Structure (WBS) Bar Chart Precedence Diagrams Linier Scheduling Program Evaluation and Review Technique (PERT)
Module 2 Principal and Practices of Project Management
Focuses on Construction Project Management
Coverage: 9. Resources Allocation and Leveling 10. Project Tracking 11. Design Coordination 12. Construction Phase 13. Safety and Health in Construction 14. Project Close Out 15. Claims, Liability and Dispute Resolution 16. Life Cycle Costing
References
Harold Kerzner (2001), Project Management, A System Approach to Planning, Scheduling and Controlling, Seventh Edition, John Wiley & Sons, Inc. Donald S. Barrie and Boyd C. Paulson (1992), Professional Construction Management, Third Edition, McGraw-Hill International Editions Garold D. Oberlander (1993), Project Management for Engineering and Construction, McGraw-Hill International Editions George J. Ritz (1999), Total Construction Project Management, McGraw-Hill International Editions Prasanna Chandra (2000), Projects Planning Analysis Selection Implementation and Review, Fourth Edition, Tata McGraw-Hill Jimmie W. Hinze (2008), Construction Planning and Scheduling, Third Edition, Pearson International Edition
Khairani Ahmad (2009), Construction Economics, Prentice Hall
Project Management Institute (2008), A Guide To The Project Management Body of Knowledge, PMBOK Guide, Fourth Edition. Project Management Institute, Inc.
What is Project Management?
What is Project Management? Project and Management Project: A series of activities which to be completed within the available resources, predetermined specifications and within specific time frame. Management: An art of getting things done through other people.
Project Management Objectives
Cost
Feasibility and Function
Time
Quality
Objective Triangles
Time Control
Project planning and programming Programme monitoring Documentation management Tender packaging to best serve the project Shop drawings and on-site control Monitoring contractors performance Contract administration Delays and time extension claims Fit-out procurement and control Developing pro-active planning to offset potential problems
Cost Control
Estimating
project cost Value analysis to reduce costs Cash-flow modeling Forecasting and cost control Variation control Tender and contracts letting Progress claims Claims mitigation Contractors preliminaries control
Quality Control Review of plans and specifications for constructibility and claims avoidance Management of design brief Change order and variation control management Inspection and quality assurance Defects correction Monitoring contractor safety
Feasibility Control
Evaluate
marketability Evaluate rental and capitalization rates Consider operational and life-cycle costs Estimate total project development costs Undertake risk assessment and sensitivity analysis Review project feasibility during development progress Achieve Clients return on investment
Function Control end-users requirement and objectives Review plans and specifications for design functionality Review plans and specifications for operational functionality Review and achieve Clients objectives
Consider
Project Management Process
Process Input
Personnel Money Materials Policy Procedures Plans & Specifications Information systems and reports
feedback
Output
Organization Personnel Resources Work activities Facilities Services Schedules Budget Activities Data
Project management team
Importance of Project Owner Commitment
Ability to influence project quality, cost and schedule
Cost to implement changes in project quality, cost and schedule
High
High
Low
Owners project definition Preliminary engineering design Detailed engineering design Procurement of special equipment/material Contract construction work
Low
Why Project Management is Important?
Current market situation has led to a new challenge to Project Manager Property market is becoming consumers/end users driven market
Property market is getting more competitive
More sophisticated end user requirements To reduce unnecessary and avoidable costs to the Clients To achieve Clients return on investment
? Project Management = Risk Management
What is Risk Management?
Risk management is a means of dealing with uncertainty
Projects:
One-off,
Change-inducing: indicates degree of inherent uncertainty
Source of uncertainty:
Constraints of resources Use of new and untried technology
Sources of Risk
There are two main categories that sources of risk fall into:
External
Factors beyond the project managers or companys control legislative requirements, e.g. safety, the environment, consumer protection, public opinion, market behavior
Internal
Factors within the control of the project manager and company product design, human behavior, corporate dispute, communication failure
The Link with Project Management
Early Project Management concentrated on managing cost & schedule little known about technical risk Constantly changing technological environment There is a need to consider risk to understand the technical, cost and scheduling risk inherent in a project and to understand and limit their impact
Planning focuses on what is known
Risk management focuses on the future on the known unknowns and on the unknown unknowns
The Link with Project Management
The traditional view PM
RM
Risk Management is the raison detre of project management
RM PM
Risk Management pervades all risk areas of project management but some may be delegated to external sources
PM
RM
The Link with Project Management
All 3 views are valid and will apply in certain circumstances
Important message: risk management should be an integral part of the
whole project management process
Level of implementation can vary, depending on:
Size of the project
Type of project Who the customer is Relationship with corporate plan
Corporate culture
Dealing with Uncertainty
Break project down into small elements Techniques for technical project: Use modeling, prototypes and demonstration to explore what-ifs Testing : working and non-working models
Use experts
Clear lines of responsibility and communication Start early, use resources efficiently, ensure awareness of schedule
Project Life Cycle
Two reasons for starting risk management early in the life of a project:
Project approval project approval implies acknowledgement and acceptance of the risks
Early fixes are cheap fixes
A simple statement of risks that have been foreseen is useful at the project definition stage
Life Cycle Risk Analysis
Life-cycle phases
Project approval Preliminary And detailed planning Execution Closure
Total project risk
Risks Amount at stake
Amount At Stake $
Typical risk events per phase
Unavailable Subject Matter Experts Poor definition of problem No feasibility study Unclear objectives Buy-in (by competitive bidding) No risk management plan Hasty planning Poor specifications Unclear S.O.W No management support Poor role definition Inexperience team Unskilled labor Material availability Strike Whether Changes in scope Changes in schedule Regulatory requirements OSHA compliance No control systems in place Poor quality Unacceptable to customer As-built changes Cash flow problems
Project Management Institute
www.pmi.org
Guide to Project Management Body of Knowledge
PMBOK Guide
Project Management Professional; PMP
Project Management Institute (PMI)
9 Project Management Knowledge Areas 1. Project Integration Management
2. Project Scope Management
3. Project Time Management 4. Project Cost Management 5. Project Quality Management 6. Project Human Resource Management 7. Project Communication Management 8. Project Risk Management 9. Project Procurement Management
