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