1

Chapter 1 - Ma n a g e m e n t Co n ce p t
 Defin it io n o f M a n a g em en t 2

• “ t h e p r o ce s s o f r e a ch in g o r g a n iz a t io n a l g o a ls b y working with and through

people a n d o t h e r organizational resources”
- Ce r t o , 19 8 5

• “ t h e p r o ce s s o f p la n n in g a n d d e cis io n - m a k in g , o r g a n iz in g , le a d in g a n d
co n t r o llin g a n o r g a n iz a t io n ”
- Gr iffin , 19 8 7

• “ t h e p r o ce s s o f a cq u ir in g a n d co m b in in g h u m a n , fin a n cia l, in fo r m a t io n a l a n d
p h ys ica l r e s o u r ce s t o a t t a in t h e o r g a n iz a t io n ’s p r im a r y g o a l o f p r o d u cin g a
p r o d u ct o r s e r vice d es ir ed b y s o m e s eg m en t o f s o cie t y”
- Pr in g le , Je n n in g s a n d Lo n g n eck er , 19 8 8

• “ t h e process with and through other people t o achieve organizational

objective e ffe ct ive ly u s in g limited resources in flu ct u a t e o r d iffer en t
s it u a t io n ”
- Ro b e r t Kr eit n er

Chapter 1 - Ma n a g e m e n t Co n ce p t
 M a n a g em en t Co n cep t 3

An effort to use the limited resources to

achieve organizational goals
effectively

Chapter 1 - Ma n a g e m e n t Co n ce p t
 Ba s ic Co m p o n en t o f M a n a g em en t 4

Wo r k
w it h & t h r o u g h
o t h e r p e o p le

Organizational
Goals
Im p r e s s ive Lim it e d
a n d Efficie n t Re s o u r ce s

Diffe r e n t
Sit u a t io n
Fig u r e 1.1 Ba s ic Co m p o n e n t o f M a n a g e m e n t

Chapter 1 - Ma n a g e m e n t Co n ce p t
 Ba s ic M a n a g em en t Act ivit ies 5

• Defin e o b ject ives

• Defin e r es o u r ces n eed ed
PLANNING in t h e p r o ject
• Develo p s t r a t eg y

• Dis t r ib u t e r es o u r ces
• Su p er vis e im p lem en t a t io n
IMPLEMENTATION
• Co o r d in a t e a ct ivit ies
• Mo t iva t e w o r ker s

• Co m p a r e b et w een
p r o g r es s a n d p la n n in g
CONTROLLING • Rep o r t in g
• Set t le p r o b lem s

Fig u r e 1.2 Ba s ic M a n a g e m e n t Act ivit ie s

Chapter 1 - Ma n a g e m e n t Co n ce p t
 Defin it io n o f Pr o ject 6

• Un iq u e s et o f co o r d in a t e d a ct ivit ies , w it h definite starting and finishing

points , u n d er t a k en b y a n in d ivid u a l o r o r g a n iz a t io n t o m eet specific
objectives w it h in defined time, cost and performance parameters using
limited resources
Pu n m ia P.C d a n Kh a n d elw a l K.K, 19 8 9

• A n o vel u n d er t a k in g o r s ys t em a t ic p r o ces s t o cr ea t e a n ew p r o d u ct o r
s er vice t h e d eliver y o f w h ich s ig n a ls co m p let io n . Pr o ject s a r e t yp ica lly
co n s t r a in ed b y lim it ed r es o u r ces .

• A u n iq u e ven t u r e w it h a b eg in n in g a n d a n en d , u n d er t a ken b y p eo p le t o
m eet es t a b lis h ed g o a ls w it h in d efin ed co n s t r a in t s o f t im e, r es o u r ces a n d
q u a lit y.
• Sys t e m a t ic p r o ces s fo r a ch ievin g a d is t in ct o b ject ive. Th e ‘s ys t em '
co n s is t s o f a p er io d o f p la n n in g fo llo w ed b y a p er io d o f ' d o in g ' , a n d t h is
s ys t em is r ep ea t ed a t ever y level o f d et a il. Th es e t w o ' p er io d s ' a r e t h e
g en es is o f t h e p r o ject life cycle.

Chapter 1 - Ma n a g e m e n t Co n ce p t
 Defin it io n o f Pr o ject 7

Lim it ed
Un iq u e
r es o u r ces

Lim it ed
Co n s t r a in t s p er io d o f Tim e

No t
Defin ed g o a ls r ep et it ive

Project Characteristics

Fig u r e 1.3 Pr o je ct Ch a r a ct e r is t ics

Chapter 1 - Ma n a g e m e n t Co n ce p t
 Typ e o f Co n s t r u ct io n Pr o ject 8

Construction Project

Residential Building Industrial Heavy

construction construction construction construction

- Sin g le- fa m ily - Ret a il s t o r es - H ea vy- - Da m s , t u n n els

h o m es - Sch o o ls m a n u fa ct u r in g - Flo o d co n t r o l
- Mu lt i u n it - Un iver s it ies Pla n t s - Ir r ig a t io n
t o w n h o u s es - H o s p it a l - Nu clea r p o w er - Br id g es
- Ap a r t m en t s - Mo s q u es p la n t s - Air p o r t
- Co n d o m in iu m s - Office t o w er s - Min e - H ig h w a ys
- et c - et c d evelo p m en t s - H a r b o r s , et c

Fig u r e 1.4 Typ e o f Co n s t r u ct io n Pr o ject

Chapter 1 - Ma n a g e m e n t Co n ce p t
 Defin it io n o f Pr o ject M a n a g em en t 9

• Pla n n in g , co n t r o llin g a n d co o r d in a t in g a p r o ject fr o m b eg in n in g s t a g e t o

co m p let in g t h e o w n er ’s n eed w h ich en s u r e t h a t t h e p r o ject finish on
time, on budget and also on quality .
- Th e Ch a r t er ed In s t it u t e o f Bu ild in g , UK

• Th e p r o ces s w h ich p r o ject m a n a g er p la n a n d co n t r o l a ll t h e a ct ivit ies in a

p r o ject , u s e a n d d is t r ib u t e a ll o f r es o u r ces (m o n e y, t im e, in fo r m a t io n ,
m a t er ia l, a n d eq u ip m en t ) t o a ch ieve g o a ls , s t a n d a r d s , a n d o b ject ives t h a t
p r ed et er m in ed in t h e b eg in n in g o f p r o ject s t a g e (b a s ed o n t im e, co s t ,
r es o u r ces a n d q u a lit y).

Chapter 1 - Ma n a g e m e n t Co n ce p t
 Defin it io n o f Pr o ject M a n a g em en t 10

Pr o ject ’s
g o a ls

Pr o ject m a n a g em en t - On t im e
- On b u d g et
- On q u a lit y
- Go o d r ela t io n s h ip
- En vir o n m en t a l fr ien d ly
- Go o d s a fet y
Res u lt
- Go o d p er fo r m a n ce/ t ech n o lo g y

Fig u r e 1.6 Pr o je ct M a n a g e m e n t

Chapter 1 - Ma n a g e m e n t Co n ce p t
 Pr o ject Co n s t r a in t s 11

Re la t io n s h ip w it h Clie n t s

En vir o n m e n t a l Pe r fo r m a n ce
Is s u e s a n d Te ch n o lo g y

Re s o u r ce s

Qu a lit y

Sa fe t y La w
Fig u r e 1.5 Pr o ject Co n s t r a in t s

Chapter 1 - Ma n a g e m e n t Co n ce p t
 Pr o ject Ph a s es 12

Ye s
Fe a s ib ilit y Pr e lim in a r y De t a ile d
Clie n t ’s Ne e d De s ig n De s ig n
St u d y

P1 P2 No P3

De la ye d o r Ca n ce lle d P4

Note

P1 : co n s u lt a n t fo r fo r m u la t in g clie n t ’s n e e d
P2 : co n s u lt a n t fo r FS St a r t - u p ,
P3 : co n s u lt a n t fo r d e s ig n ’p r o je ct m a n a g e m e n t im p le m e n t a t io n , Co n s t r u ct io n
P4 : co n t r a ct o r , s u p p lie r a n d co n s u lt a n t fo r O&M
s u p e r vis io n

Fig u r e 1.7 Pr o ject Ph a s e s

Chapter 1 - Ma n a g e m e n t Co n ce p t
 Pr o ject Ph a s es 13

➢ Client’s Need
Objective
● Defin in g t h e clien t ’s n eed .

Activities :
● Defin e t h e clien t ’s n eed b a s ed o n lo ca t io n , t im e, b u d g et a n d
q u a lit y.
● Pr ep a r e p la n d r a ft in g , t im e s ch ed u le a n d co s t es t im a t io n
● Det er m in e q u a lit y s t a n d a r d

Chapter 1 - Ma n a g e m e n t Co n ce p t
 Pr o ject Ph a s es 14

➢ Feasibility study
Objective
● St u d y w h et h er a p r o ject is fea s ib le o r n o t b a s ed o n t ech n ica l,
eco n o m y, fin a n cia l & en vir o n m en t a l a s p ect s .

Activities :
● Pr ep a r e a r o u g h p r o ject p la n a n d co s t es t im a t io n
● Pr ed ict b en efit s t h a t w ill b e o b t a in ed
● Pr ep a r e a r ep o r t o f fea s ib ilit y s t u d y
● Do a n En vir o n m en t a l Im p a ct As s es s m en t (EIA)

Chapter 1 - Ma n a g e m e n t Co n ce p t
 Pr o ject Ph a s es 15

➢ Engineering and design

Objective
● Det er m in e la yo u t , p la n , co s t e s t im a t io n a n d co n s t r u ct io n
m et h o d w h ich w ill b e u s ed t o g et a p p r o va l fr o m o w n er a n d a ls o
o t h er p a r t ies .
● Pr ep a r e in fo r m a t io n fo r t e n d er d o cu m en t a n d co n s t r u ct io n
a ct ivit ies (p la n , s p ecifica t io n )

Activities :
● Ch eck t ech n ica l m a t t er s
● Get a n o w n er ’s a p p r o va l
● Pr ep a r e p r elim in a r y a n d d et a iled d es ig n p la n , t ech n ica l d r a w in g ,
s p ecifica t io n , s ch ed u le, b ill o f q u a n t it y, a n d fin a l co s t es t im a t io n

Chapter 1 - Ma n a g e m e n t Co n ce p t
 Pr o ject Ph a s es 16

➢ Procurement
Objective
● Ch o o s e t h e r ig h t p a r t ies t o im p lem en t a n y o f w o r ks in t h e
p r o ject ; s u ch a s : co n s u lt a n t , co n t r a ct o r , s u b - co n t r a ct o r , a n d
s u p p lier .

Activities :
● Pr e- s elect io n , a n a lyz e t h e ca n d id a t es fr o m t h eir r ep u t a t io n ,
exp er ien ce, m a n a g em en t , a n d a ls o fin a n cia l a s p ect .
● Pr ep a r in g a co n t r a ct d o cu m en t (d r a w in g , s p ecifica t io n , t im e
s ch ed u le a n d b ill o f q u a n t it y)

Chapter 1 - Ma n a g e m e n t Co n ce p t
 Pr o ject Ph a s es 17

➢ Construction
Objective
● Co n ve r t t h e d es ig n er s ’ p la n s a n d s p ecifica t io n s in t o p h ys ica l
s t r u ct u r es a n d fa cilit ies o n s ch ed u le, w it h in t h e b u d g et a n d
a cco r d in g t o t h e s t a n d a r d s o f q u a lit y a n d p er fo r m a n ce s p ecified
b y t h e d es ig n er .

Activities :
● Pla n a n d co n t r o l t h e t im e s ch ed u le, b u d g et , s it e o r g a n iz a t io n ,
la b o u r , eq u ip m en t a n d m a t er ia l
● Co o r d in a t e a ll o f t h e co n s t r u ct io n a ct ivit ies , n o t o n ly fo r
p er m a n e n t s t r u ct u r es b u t a ls o fo r t em p o r a r y s t r u ct u r es a n d it s
fa cilit ies
● Co o r d in a t e a ll o f t h e s u b - co n t r a ct o r s in vo lved

Chapter 1 - Ma n a g e m e n t Co n ce p t
 Pr o ject Ph a s es 18

➢ Start - up, implementation, Operation and

maintenance
Ob ject ive
● Gu a r a n t ee t h a t t h e fin is h ed p r o ject , in clu d in g it s fa cilit ies a r e
co m p lyin g t o t h e co n t r a ct d o cu m en t a n d p r o p er ly fu n ct io n ed .

Act ivit ies :

● Reco r d in g a ll o f t h e p r o ject d a t a
● Exa m in e t h e b u ild in g a n d d o s o m e m in o r co r r ect io n
● Tr a in t h e m a in t en a n ce s t a ff
● Pr ep a r in g a n o p er a t io n a n d m a in t en a n ce in s t r u ct io n m a n u a l

Chapter 1 - Ma n a g e m e n t Co n ce p t
 Pr o ject Execu t io n a n d M o n it o r in g 19

Fig u r e 1.9 Pr o je ct Pla n n in g , Sch e d u lin g a n d Co n t r o llin g

Chapter 1 - Ma n a g e m e n t Co n ce p t
 PROJECT PLANNING 20

1. Th e p r o ces s o f id en t ifyin g a ll t h e a ct ivit ies n eces s a r y t o

s u cces s fu lly co m p let e t h e p r o ject .
2. Det er m in in g t h e w o r k a b le w o r k s ch em e t o a ch ieve p r o ject
o b ject ives .
3. Id en t ify a ct ivit ies in vo lve.
4 . Tim e co n s u m in g effo r t a n d o ft en d ifficu lt .
5. Req u ir es k n o w led g e o f co n s t r u ct io n m et h o d s co m b in ed w it h
t h e a b ilit ies t o vis u a liz e d is cr et e w o r k elem en t s a n d t o
es t a b lis h t h eir m u t u a l in t er - d ep en d en cies .
6 . Exp er ien ces ca n h elp .
7. Effect ive p la n n in g – m in im iz e t h e im p a ct t h e u n fo r es een
p r o b lem t h a t co u ld im p ed e t h e p r o g r es s o f t h e p r o ject .
Chapter 1 - Ma n a g e m e n t Co n ce p t
 PROJECT SCH EDULING 21

1. H elp m a n a g er s in m a n a g in g t h eir p r o ject efficien t ly.

2. Pr o ces s t o id en t ify s eq u en ce o f w o r k o r a ct ivit ies in vo lve a n d
d et er m in e r ea lis t ic t im e fo r ea ch a ct ivit ies w it h s t a r t t im e a n d
fin is h t im e.
3. Pla n n in g is p r e- r eq u ir em en t t o p r o ject s ch ed u lin g (n o w a y t o
d et er m in e t h e a ct ivit ies s eq u en ces a n d s t a r t / fin is h d a t e o f
a ct ivit ies u n t il t h ey a r e id en t ified ).
4 . Aft er t h e a ct ivit ies id en t ify, t h en t h e s eq u en ce o f s t a r t , fin is h
a n d lin ka g e b et w een ea ch a ct ivit ies ca n b e d et er m in e.

Chapter 1 - Ma n a g e m e n t Co n ce p t
 NEEDS OF PLANNING 22

1. Exp er ien ces o n ly n o t en o u g h t o en s u r e t h e p r o ject ca n b e

co m p let ed a cco r d in g t o co n t r a ct d a t e.

2. Rea l t es t t o p la n n e r is h is / h er a b ilit y t o id en t ify a ll t h e w o r k

r eq u ir ed t o co m p let e a p r o ject .

3. Pla n n in g is t h e h ea r t o f g o o d p r o ject m a n a g em en t .

4 . Es t a b lis h t h e b e n ch m a r k fo r t h e p r o ject co n t r o l s ys t em t o
t r a ck t h e q u a n t it y, co s t a n d t im in g o f w o r k r e q u ir ed t o
s u cces s fu lly co m p let e t h e p r o ject .

Chapter 1 - Ma n a g e m e n t Co n ce p t
 BENEFITS ☺ 23

1. On Tim e d eliver y.

2. Pr o ject m eet s w it h Clien t ’s p la n n in g .

3. Pr es en t Go o d Co m p a n y im a g e.

4 . Sh o w s t h e co n t r a ct o r a b ilit y t o co m p et e a t g lo b a l s t a n d a r d s .

5. In d ica t e the Pr o fes s io n a lis m fo r Su p er io r Officer s an d

co n t r a ct o r s .

6 . Ca n Op t im iz e co n t r a ct o r s p r o fit s .

Chapter 1 - Ma n a g e m e n t Co n ce p t
 RESULTS OF PROJECT PLANNING 24

1. Finish the project on time .

2. Continuous flow of work (no delay / uninterrupted) .
3. Reduce amount of rework (least amount of changes) .
4. Minimize confusion and misunderstandings .
5. Increased knowledge of status of project by everyone .
6. Meaningful and timely reports to management .
7. You run the project instead of the project running you .
8. Knowledge of scheduled times of key parts of the project .
9. Knowledge of distribution of costs of the project .
10.Accountability of people, defined responsibility/ authority .
11.Clear understanding of who does what, when, and how much .
12.Integration of all work to ensure a quality project for the owner .

Chapter 1 - Ma n a g e m e n t Co n ce p t
 RESPONSIBILITIES OF PARTIES 25

1. Owner :
• Establish the project completion date , which governs the scheduling of
work for both the designer & contractor .
• Set priorities for the components that make - up the projects .
• Assists in the development of specifications and contract documents .
2. Designer :
• Develop a design schedule that meets the owner’s schedule .
• Include prioritization of work accordance with the owner’s needs and
should be developed with extensive input in design process .
3. Contractor :
• Develop a schedule for all construction activities in accordance with the
contract documents .
• Include procurement and delivery of materials to the job, coordination of
labour and equipment on the job, and interface the work of all sub -
contractors .
Chapter 1 - Ma n a g e m e n t Co n ce p t
 BASIC PRINCIPLES 26

INTEGRATED
SCOPE BUDGET SCHEDULE TOTAL
PROJECT PLAN

Ch a p t e r 1 - Ma n a g e m e n t Co n ce p t
 BASIC PRINCIPLES 27

IDENTIFY
ACTIVITIES

BREAKDOWN
COM M UNICATE THE
ACTIVITY
(WBS)

ASSIGN
THE
START
PROJECT
PLANNING
TEAM
(OBS)

Ch a p t e r 1 - Ma n a g e m e n t Co n ce p t
 KEY PRINCIPLES FOR PLANNING
AND SCH EDULING 28

1. Begin planning before starting work , rather than after starting

work .
2. Involve people who actually do the work in the planning and
scheduling process .
3. Include all aspects of the project ; scope, budget, schedule, and
quality .
4. Build flexibility in the plan, include allowance for changes and
time for reviews and approvals .
5. Remember the schedule is the plan for doing the work, and it
will never be precisely correct .
6. Keep the plan simple , eliminate irrelevant details that prevent
the plan from being readable .
7. Communicate the plan to all parties , any plan is worthless
unless it is known .
Chapter 1 - Ma n a g e m e n t Co n ce p t
 H ISTORICAL OF SCH EDULING
TECH NIQUES 29

Critical
Path
Bar Chart Method
Henry L/ E. I du
Gantt Pont de
Primavera
World War 1 Nemours
& Artemis
Company
Timeline
1956
Microsoft
Project
PERT etc
Booz,
Allen and
Hamilton
1957

Chapter 1 - Ma n a g e m e n t Co n ce p t
 SCH EDULING M ETH OD 30

1. Various method had been developed from time to

time .
2. Some method are very simple to use but have
limitation in their application .
3. Some techniques require training before user
familiarized with the system .
4. The factors that governed the choice of the technique
are :
i. Familiarity on the technique to be use
ii. Type and size of project
iii. Purpose of scheduling .

Chapter 1 - Ma n a g e m e n t Co n ce p t
 FAM ILIARITY ON TH E
TECH NIQUE TO BE USE 31

1. Main objective of schedule as a

communication tool .
2. Used by the various party or personnel within
or outside the organization that have stake in
the project .
3. To have a schedule technique which is
acceptable by all parties .

Chapter 1 - Ma n a g e m e n t Co n ce p t
 TYPE & SIZE OF TH E PROJECT 32

1. Size and complexity .

2. Customarily made to suit the actual need of
the project .
3. Repetitive task – Line of balance
4. Medium large project with numerous task – a
networking technique .
5. Small project – Gantt’s Chart

Chapter 1 - Ma n a g e m e n t Co n ce p t
 PURPOSE OF SCH EDULE 33

1. Project time and cost control .

2. Computer application - Various form of
reports can be generated from the schedule
throughout the project time .
3. Depends on capabilities and type of report
that each schedule software can deliver to suit
the need of the project .

Chapter 1 - Ma n a g e m e n t Co n ce p t
 6 STEPS IN PLANNING AND
SCH EDULING 34

3. DETERM INE TIM E /

2. PREPARE NETWORK
1. DEVELOP WBS COST & RESOURCES
DIAGRAM
REQUIRED

● Co n s id e r activities ● Co n s id e r w h ich ● Review Wo r k

t h a t r e q u ir e a ct ivit ie s Pa ck a g e o f t h e
t im e / co s t . im m e d ia t e ly WBS
● Co n s id e r a ct ivit ie s precede/follow ● Ob t a in in p u t fr o m
th at n eed to e a ch a ct ivit y p r o je ct t e a m
arran ge an d wan t ● Th e m em b er s
t o m o n it o r interrelationship
o f a ct ivit ie s is a
co m b in a t io n o f
h ow th e work m ust
be don e/ to be don e.

Ch a p t e r 1 - Ma n a g e m e n t Co n ce p t
 6 STEPS IN PLANNING AND
SCH EDULING 35

4 . COMPUTE TH E
SCH EDULE TO 5. ANALYZE COST AND
6 . COMMUNICATE
DETERM INE START, RESOURCES
FINISH & FLOAT TIM ES

● Pe r fo r m forward ● Co m p u t e cost/day ● Display time

Pass (e a r ly s t a r t & fo r e a ch a ct ivit y & s ch ed u le fo r
e a r ly fin is h ) en t ir e p r o ject a ct ivit ie s
● Pe r fo r m Backward ● Co m p u t e t h e labor - ● Display cost
Pass (la t e s t a r t & hours per day a n d s ch ed u le fo r
la t e fin is h ) o t h er r es o u r ces a ct ivit ie s
● De t e r m in e t h e t h a t a r e r eq u ir ed t o ● Display schedule
d iffe r en ce (s t a r t & co m p let e t h e fo r o t h e r r e s o u r ce s
fin is h ) t o d e t e r m in e p r o je ct .
float time & critical
activities.

Ch a p t e r 1 - Ma n a g e m e n t Co n ce p t
 EFFECTIVE SCH EDULING 36

1. Acceptance of commitments

2. Efficient Working methods

3. Estimating accuracy

4. Planning details

5. Job sequence

6. Flexibility

Chapter 1 - Ma n a g e m e n t Co n ce p t
39