Project Management

Jahid Hasan
Assistant Professor, Dept. of IPE, SUST
Project Management
 Learning Objective a project.
 By the end of this module,  The main tools used by
we understand- the project manager.
 What is involved in
managing a project?
 The different phases of a
project.
 The role of the project
manager in leading,
motivating and controlling
Project Management
 Definition of a project Key element of project Mgt
 A project is a collection of tasks (or 1. Information
jobs) aimed at a single objective(or set a. Plan/specification/design
of objective). b. Legal requirements
 It should culminate at a definable c. contractual obligations
end point, within finite time span 2. Equipment
and resource.
a. Availability
Project management is the
b. Capability
combination of function-
3. Materials
-Initiating(committing) fundamental,
a. Availability
-Planning(planning & organizing)
b. Specification
-Executing(organizing & leading)
4. People
-Controlling(controlling)
a. Availability (Project manager,
-Closing(winding-up)
Project team)
Of an integral system of task to ensure
b. Skills(Abilities, Attributes)
their completion.
Project Management
5. Time Committing the organization to the
a. Accurate Estimates project by –
b. Check points(milestone) a. Appointing management
c. Monitoring variance b. Define the project
6. Budgets c. Conducting a pre-feasibility study
a. Monitoring variance d. Approve the project.
[more than 50% project is completed by It is important to establish a sound
over estimated cost] basis for the project.
 Process for managing projects Ensure each requirement falls into a
One or more of the following
Initiating Planning Executing Closing
Categories. (SMART)
Controlling S (Specific),
When moving from one phase of a M (Measureable)[quantitative
project to another, it is sometimes A (Achievable) , R (Relevant), T(time
useful to follow standardized specific)
approval procedure such as the
stage gate method.

Project Management
 Planning  Controlling
There is need to- Install mechanisms which monitor and
measure.
-Identify tasks
-changes the project scope.
-Confirm resources
-progress towards milestones.
-Set schedule
-variance in time & cost.
-Define milestones.
-quality standards
-Identify & asses risks
-performance
-organize responsibilities
effectiveness
 Executing efficiency
The project manager must-  Closing
-Direct & lead activities
In finishing off a project, it must be done-
-Provide guidance & support
-Maintain motivation - sign off contract.
It can be done by
-by keeping the project team full informed.

-encouraging teamwork.
Project Management
-sign off contractor -inflation[labor value increase]
 Roles of Project Manager
-hand over deliverable
-prepare final reports
-conduct de-briefing
-update project data. Controll inform
progress client
-archive project data. Manag controll
 Common causes of project failure e risks budget

-failure to detail objectives & solve

requirements at commencement.[clear problem P.M.
cut idea about objectives] Manage keep mgt.
-inability to re-plan & reschedule. supplier inform

 Project Manager Manage Responsibility

-poor leadership. subcontractor
schedule &
resources

-lack of motivation & team -should be focused on objective.

commitment. -maintain team member motivation.
-inadequate measurement procedures. -ensure adequate control
-unsupportive organizational structure
Hidden effect
Project Management
XY theory
Managers believe that subordinates-

Dislike work Are willing to work

Are irresponsible Are self-motivated
Lack accountable Accept responsible
Persist change Area creative
Also

Model-I
P. M. Leadership Style
-Strong visible.
-Silent
-Team Member.

Management style
Project Management
Project Control Schedule
The project manager is responsible for Quality
ensuring that the three elements Process of controlling projects
 Cost
 Schedule
 Budget(total)
Are carefully juggled(increase or
decrease).
Measures of Project Success
Traditionally, PM have had their project
by measure of conformance-
Cost-as budgeted
Schedule-as planned
Quality-as specified
However, the modern project requires
more than conformance, it needs
performance.
Cost(no limit)
Project Management
time, cost and quality.
-CM is compatible with all project delivery
systems, including design-bid-build,
design-build, CM At-Risk and Public
Private Partnerships.
-Professional construction managers may be
reserved for lengthy, large-scale, high
budget undertakings (commercial real
estate, transportation infrastructure,
Construction Project Management industrial facilities, and military
Construction Project Management (CM) infrastructure), called capital projects.
is a professional service that uses
specialized, project management
techniques to oversee the planning,
design, and construction of a project,
from its beginning to its end.
A contractor is assigned to Functions of construction management
a construction project during the design or • Specifying project objectives and plans
once the design has been completed by a
including delineation of scope,
licensed architect. This is done by going
through a bidding process with different
budgeting, scheduling, setting
contractors. performance requirements, and selecting
project participants.
-selected by using one of three common
selection methods: • Maximizing the resource efficiency
through procurement of labor, materials
1.low-bid selection, best-value selection, or and equipment.
qualifications-based selection.
• Implementing various operations through
-construction manager should have the
ability to handle- proper coordination and control of
planning, design, estimating, contracting
- public safety, time management, cost and construction in the entire process.
management, quality
management, decision • Developing
making, mathematics, working drawings, effective communications and
and human resources. mechanisms for resolving conflicts.
 Types of construction
Agricultural: Examples include barns, equipment Industrial: Buildings and other constructed
and animal sheds, specialized fencing, items used for storage and product
storage silos and elevators, and water supply production, including chemical and power
and drains such as wells, tanks, and ditches. plants, steel mills, oil refineries and
Residential: Residential construction includes platforms, manufacturing plants, pipelines,
houses, apartments, townhouses, and other and seaports.
smaller, low-rise housing, small office types Heavy
Commercial: private commerce, trade, and services. civil: transportation infrastructure such as
Examples include office buildings, "big box" roads, bridges, railroads, tunnels, airports,
stores, shopping centers and malls, warehouses, and fortified military facilities. Dams are
banks, theaters, casinos, resorts, golf courses, and also included, but most other water-related
larger residential structures such as high-rise hotels infrastructure is considered environmental.
and condominiums. Environmental: Environmental construction
Institutional: government and other public was part of heavy civil, but is now separate,
organizations. Examples include schools, fire and dealing with projects that improve the
police stations, libraries, museums, dormitories, environment. Some examples are water and
research buildings, hospitals, transportation wastewater treatment plants, sanitary and
terminals, some military facilities, and storm sewers, solid waste management, and
governmental buildings. air pollution control.
 Selection methods
Bids • Low-bid selection: focuses on the price of a project.
A bid is given to the owner by Multiple construction management companies submit a bid
to the owner that is the lowest amount they are willing to do
construction managers that are willing the job for. Then the owner usually chooses the company
to complete their construction project. with the lowest bid to complete the job for them.
A bid tells the owner how much • Best-value selection: focuses on both the price and
money they should expect to pay the qualifications of the contractors submitting bids. This means
that the owner chooses the contractor with the best price and
construction management company in the best qualifications. The owner decides by using a request
order for them to complete the project. for proposal (RFP), which provides the owner with the
contractor's exact form of scheduling and budgeting that the
• Open bid: An open bid is used for contractor expects to use for the project.
public projects. Any and all • Qualifications-based selection: selection is used when the
contractors are allowed to submit their owner decides to choose the contractor only on the basis of
bid due to public advertising. their qualifications. The owner then uses a request for
qualifications (RFQ), which provides the owner with the
• Closed bid: A closed bid is used for contractor's experience, management plans, project
private projects. A selection of organization, and budget and schedule performance. The
owner may also ask for safety records and individual
contractors are sent an invitation for credentials of their members. This method is most often used
bid so only they can submit a bid for when the contractor is hired early during the design process
the specified project. so that the contractor can provide input and cost estimates as
the design develops.
 Construction Project stages
Payment contracts Design
• Lump sum: This is the most common The design stage involves four steps: programming and feasibility, schematic
type of contract. The construction design, design development, and contract documents. It is the responsibility of the
manager and the owner agree on the design team to ensure that the design meets all building codes and regulations.
overall cost of the construction project and -during the design stage that the bidding process takes place.
the owner is responsible for paying that • Conceptual/Programming and feasibility: The needs, goals, and objectives
amount whether the construction project must be determined for the building. Decisions must be made on the building
exceeds or falls below the agreed price of size, number of rooms, how the space will be used, and who will be using the
space. This must all be considered to begin the actual designing of the building.
payment. This phase is normally a written list of each room or space, the critical
• Cost plus fee: This contract provides information about those spaces, and the approximate square footage of each area.
payment for the contractor including the • Schematic design: Schematic designs are sketches used to identify spaces,
total cost of the project as well as a fixed shapes, and patterns. Materials, sizes, colors, and textures must be considered in
fee or percentage of the total cost. This the sketches. This phase usually involves developing the floor plan, elevations, a
contract is beneficial to the contractor site plan, and possibly a few details.
since any additional costs will be paid for, • Design development (DD): This step requires research and
even though they were unexpected for the investigation into what materials and equipment will be used as well as
owner. their cost. During this phase, the drawings are refined with information
• Guaranteed maximum price: This from structural, plumbing, mechanical, and electrical engineers. It also
contract is the same as the cost-plus-fee involves a more rigorous evaluation how the applicable building codes
contract although there is a set price that will impact the project.
the overall cost and fee do not go above. • Contract documents (CDs): Contract documents are the final
• Unit price: This contract is used when the drawings and specifications of the construction project. They are used
cost cannot be determined ahead of time. by contractors to determine their bid while builders use them for the
The owner provides materials with a construction process. Contract documents can also be called working
specific unit price to limit spending. drawings.
 Construction Project stages
Construction Project stages Procurement
Pre-construction The procurement stage is when labor, materials
The pre-construction stage begins when the owner gives a notice to and equipment needed to complete the
proceed to the contractor that they have chosen through the bidding
process. A notice to proceed is when the owner gives permission to project are purchased. This can be done by
the contractor to begin their work on the project. The first step is to the general contractor if the company does all
assign the project team which includes the project manager (PM), their own construction work. If the contractor
contract administrator, superintendent, and field engineer.
• Project manager: The project manager is in charge of the project
does not do their own work, they obtain it
team. through subcontractors. Subcontractors are
• Contract administrator: The contract administrator assists the contractors who specialize in one particular
project manager as well as the superintendent with the details of the aspect of the construction work such as
construction contract. concrete, welding, glass, or carpentry.
• Superintendent: It is the superintendent's job to make sure Subcontractors are hired the same way a
everything is on schedule including flow of materials, deliveries, and
equipment. They are also in charge of coordinating on-site general contractor would be, which is through
construction activities. the bidding process. Purchase orders are also
• Field engineer: A field engineer is considered an entry-level position part of the procurement stage.
and is responsible for paperwork.
Purchase orders: A purchase order is used in
During the pre-construction stage, a site investigation must take place. A
site investigation takes place to discover if any steps need to be various types of businesses. In this case, a
implemented on the job site. This is in order to get the site ready purchase order is an agreement between a
before the actual construction begins. This also includes any buyer and seller that the products purchased
unforeseen conditions such as historical artifacts or environment
problems. A soil test must be done to determine if the soil is in good meet the required specifications for the
condition to be built upon. agreed price.
Construction Project stages Construction Contracts
Construction A construction contracts is a mutual or legally binding
The construction stage begins with a pre-construction meeting agreement between two parties based on policies and
brought together by the superintendent. The pre-construction conditions recorded in document form. The two parties
meeting is meant to make decisions dealing with work involved are one or more owners, and one or more
hours, material storage, quality control, and site access. The contractors.
next step is to move everything onto the construction site The owner has full authority to decide what type of
and set it all up. contract should be used for specific development to
• A Contractor progress payment schedule is a schedule of contructed and to set forth legally-binding terms and
when (according to project milestones or specified dates) conditions in a contractual agreement.
contractors and suppliers will be paid for the current
progress of installed work. Six types-
• Progress payments are partial payments for work 1. Lump sum contract-an owner agrees to pay a
completed during a portion, usually a month, during a contractor a specified lump sum after the completion
construction period. Progress payments are made to general of work without a cost breakdown.
contractors, subcontractors, and suppliers as construction 2. Item rate/schedule contract-
projects progress. Payments are typically made on a monthly
basis but could be modified to meet certain milestones.
3. Lump sum and schedule contract-also a lump sum
Progress payments are an important part of contract contract requires a cost breakdown.
administration for the contractor. Proper preparation of the 4. Cost plus fixed fee contract-owners pays the
information necessary for payment processing can help the contractor an agreed amount over and above the
contractor financially complete the project. documented cost of work.
Owner occupancy 5. Cost plus percentage of cost contract-owners pays
• Once the owner moves into the building, a warranty period greater than 100 percent of the documented cost,
begins. This is to ensure that all materials, equipment, and usually requiring detailed expense accounting.
quality meet the expectations of the owner that are included
Project Management
for tracking progress.
Tools of Project Control
 Work breakdown structures
 Gantt Charts
 Performance tracking graphs
Manufacturing of Pen
 Network diagram- critical path
method.

Design (Team-1) Production (Team- Marketing (team-

2) 3)

Work breakdown structure

 To identify all tasks to be
accomplished.
 To identify a clear hierarchical
management information structure for
the project & the relationships of tasks
within it.
 To define the areas of responsibility,
staffing, costing etc. for each task.
Project Management

Rules for preparing a Work breakdown

structure
 Do it by using a group of individuals having
a diversity of expert.
 Include all elements against which funds are
to be expended.
 The bottom level blocks should be position
work packages
 The WBS should be like the branches of tree.
(a block at one level should divide into two or
more blocks at the next level & so on. Two
or more block never connect to the same
block at a lower level.)
Project Management
Disadvantage
 If it is not run effectively than highly
expertise may be required.
Gantt Charts
A simple & popular technique used for- Preparation of Gantt chart
-Planning  Develop the work breakdown
-Scheduling structure.
-Control  Determine the sequence of work
-Reporting packages
And it is also a good communication tool.  List the work packages in an activity
Gantt chart uses for list.
 Estimate work package duration
(i) Identify the précisor and successor
 Identify overlapping or simultaneous
(ii) Activity sequence
work packages.
(iii) Forecasted
 Enter work packages as horizontal
(iv) Activity plan
bars chart.
(sometimes do not get clearly information)  Determine milestones.
Project Management
Performance tracking Principle of network analysis
It is describe to monitor the relationship Three steps
between-  Present a logical diagram of all
(1) Planned activities showing their dependencies.
-Cost  Consider the limitations as available
-efforts resources.(estimate activity duration)
time elapsed And  Use these time estimates to analyze
(2) Actual the network.
-Cost Activity- a specific task or set of tasks that
are required by the projects, use up
-efforts
resources, and take time to complete.
time elapsed.
Event- the result of completing one or
Network Analysis more activities. An identifiable end
Two main methods state occurring at a particular time.
 Critical path method Events use no resources.
 Programme evaluation & review
Develop the work breakdown structure
Project Management
Network- the arrangement of all activities Three steps
(and, in some cases, events) in a  Present a logical diagram of all
project arrayed in their logical activities showing their dependencies.
sequence and represented by arcs and  Consider the limitations as available
nodes. resources.(estimate activity duration)
Path-the series of connected activities  Use these time estimates to analyze
between any two events in a network. the network.
Critical- activities, events or paths which, no resources.
if delayed, will delay the completion of
the project.
AON- rectangles(nodes) represent the
activities, hence it is called an activity-
node(AON).
AOA-the activities are shown on the
arrows and the (circular) nodes
represents events.
Project Management
Critical Path- the sequence of activities possible time at which an activity can
between a projects start and finish start without affecting the completion
that takes the largest time to of the project.
complete. Any delays of activities on Total Float(TF)- is the maximum freeway
the critical path will delay the entire available to an activity (n) such that it
project. will not delay completion the project.
Activity slack- the maximum length of Total Float(TF)=LSTn - ESTn
time of an activity can be delayed Free Float- is the maximum available to
without delaying the entire project. any activity such that it will not
Earliest Finish Time(EFT)- is the earliest affecting the float succeeding activity.
possible time at which an activity can Free Float=ESTn+1 –EFTn
finish.
EFT=EST+ t(duration)
Earliest Start Time(EST)- is the earliest
possible time at which an activity start.
Latest Finish Time(LFT)- is the latest
possible time at which an activity can
finish without affecting the completion
of project.
Latest Start Time(LST)- is the latest
Project Management
CPM Assumes- to complete the project to meet a
 The project network defines a correct revised due date by adding additional
sequence of work in terms of resources to certain activities &
technology & workflow. thereby reducing completion time.
 Activities are assumed to be Crash time- the shortest possible time to
independent of one another with complete the activity .
clearly start and finish time. Crash cost- the activity cost associated
 The activity time estimates are with the crash time.
accurate & stable. Procedure time-cost trade off
 Once activity is started it continuous 1. Determine least-cost procedure.
uninterrupted until it completed. & Determine cost slope for each activity.
 There is infinite resource capacity, at Cost to crash per week=
least for the initial (baseline) project
analysis.
CPM control elements
(i) Project completion time (duration)
(ii) Total cost of project
(iii) Number of critical path.
Time/cost trade off
Project Management
2. Analyze project with all activities
performed at normal durations.
3. Determine project normal durations &
associated direct cost.
4. Identify critical path.
5. Systematically reduce the critical
activities selecting the lowest cost
slop.
6.Determine project direct cost for each
now project duration.
7. Determine project indirect cost.
8. Add direct & indirect costs & identify
minimum total cost.
Project Management
2. Analyze project with all activities
performed at normal durations.
3. Determine project normal durations &
associated direct cost.
4. Identify critical path.
5. Systematically reduce the critical
activities selecting the lowest cost
slop.
6.Determine project direct cost for each
now project duration.
7. Determine project indirect cost.
8. Add direct & indirect costs & identify
minimum total cost.