1.2 Project Management Fundamentals (7)mm

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CERTIFICATE COURSE IN QUANTITY

SURVEYING- FOUNDATION LEVEL

UNIT-1: INTRODUCTION –
PROJECT MANAGEMENT
FUNDAMENTALS

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Project Management Fundamentals
 A project is defined as a temporary endeavour undertaken to create a new
product or service to achieve specified objectives within the assigned resources.
A project is a mission. Projects are usually a part of an overall strategic program.
A program at the macro level comprises one or more projects. Some examples of
projects include:
 · Constructing a building or facility.
 · Developing a new product or service.
 · Designing a new transportation system.
 · Running a campaign for political office.
 In general, the term 'construction project' refers to a high-value, time-bound,
special construction mission with pre-determined performance objectives.
Construction projects employ huge resources of men, materials and machines.
The construction project mission is accomplished within complex project
environments by putting together human and non-human resources to form a
temporary organization (like the special mission task force of the army), headed
by a project manager.

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Project Management Fundamentals………….
Project time basis Project cost basis

 Long-range strategic program /  Mega value projects (over $ 500


projects (over 5 years ) million)
 Medium duration projects ( 3 to 5  Large value projects ($ 100 million
years ) to $500 million)
 Normal duration projects ( 1 to 3  Medium value projects ($ 10 million
years ) to $ 100 million)
 Special short-term projects ( less  Small value projects (less than $ 10
than 1 year ) million)

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Project Management Fundamentals………….
 Project Unique Mission
 Each project has a specified mission or a purpose that has to be achieved
within time, budget and quality specifications. Its organization is temporary.
 Each project mission is unique as no two projects are ever alike. Projects
differ from each other in one or more influencing factors such as the client, the
contractors, quality specifications, resources employed, responsibilities
delegated and the project environments.
 Project Life Cycle
 Each construction project has a pre-determined duration with a definite
beginning and an identifiable end. Each project is divided into several phases.
 A project starting point is the time when the idea or the need is conceived by
the client and its end marks the time when the mission is accomplished. The
time between the start and completion of a project represents the project life
cycle.
 Collectively, a project life cycle comprises of the project phases, from the
beginning to the end of the project. These phases in a project life cycle, for
management control, are called 'project initiation or scope formulation',
'project planning', 'project execution', 'project control', and 'project close-up'.
The project management process starts after the scope is formulated.
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Project Management Fundamentals………….

The Project Life Cycle of a Constructed Facility


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Phases in a Project Life Cycle

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Project Management Fundamentals………….
 Project initiation phase.
 This aims at the formulation of the project scope and the implementation
strategy, if the project is approved for implementation. The end of this phase
marks the client go ahead / no–go decision.
 The project charter outlines the project scope, objectives, preliminary plans,
and organisation for the execution of the project.
 The end of the initiation phase marks the start of the project management
process.
 Planning phase.
 The objective of this phase is to develop a workable plan to accomplish the
project mission. In its broader sense, planning involves intellectual thinking in
advance as to what is to be done, where it is to be done, how it is to be done,
when it is to be done, what is needed to do it, who is to do it and how to
ensure that it is done; all the thinking is channelized to generate and evaluate
options for evolving the action plan.
 Planned thinking follows a systematic approach. Planning techniques are the
tools used to systematize and transform the mental planned thinking into an
integrated project plan with the aim of reaching specified goals. Major
contracts are finalized at the end of this phase.

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Project Management Fundamentals………….
 Executing phase.
 This concerns with coordinating and managing people and other resources to
carry out the plan.
 It is the client project manager who is accountable to the client for the entire
construction phase. He ensures smooth functioning at site and makes
decisions when the site faces problems. He manages the entire construction
process so as to achieve the assigned project objectives.
 At site, the contractor’s construction managers execute their assigned works.
They operate to achieve the contractor's objectives, which includes optimizing
profit.
 Client project manager manages the contractors employed at site with the
help of his supervisory team that reports to him for decisions.

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Project Management Fundamentals………….
 Controlling phase.
 Project plan indicates the path to achieve objectives. During the implementation
phase, the project control aims to track the progress of work as per the planned
schedule and take corrective actions including re-planning, when necessary, to
achieve the project objectives.
 Project control follows a system concept. Each organizational unit in a project,
usually referred to as Responsibility Centre, can be viewed as a sub-system.
These sub-systems are highly inter-dependent and interactive.
 Each sub-system accounts for its performance and reports the deviation
between the actual and the planned to the Project Control Centre. This
Control Centre, manned by the project monitor, is the heart of the system; it
receives the performance data from the responsibility centres and using
scientific tools and techniques, transforms this data into information
suggesting remedial courses of actions for achieving the objectives. This
information, when fed at the appropriate levels, results in steering the
organizational effort towards the attainment of the project objectives.

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 Closing phase.
 This formalizes the acceptance of the project and brings it to an orderly end.
 After completion by the contractor, it is the project team of the client that
hands over the project to him.
 The team also prepares a project completion report which includes the scope
and schedule of work, the important events, the contract executed, the
addresses of the suppliers of materials and equipment, the equipment
maintenance manual, the as-built drawings, the costs involved, the problems
encountered during execution, the lessons learned and the minor defects
noticed at the time of handing over.
 Note. The project phases are not discrete, one–time events; they do overlap at
varying levels of intensity throughout the project life cycle.

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Typical Construction Project Life Cycle Pattern : Cumulative Effort v/s Time

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 Project Objectives
 Each project is assigned pre-determined objectives. Project objectives depend
upon many factors that determine the outcome of a project.
 The six main parameters that can sufficiently define construction project
objectives are work scope, complexity, quality, productivity, completion time
and cost.
 The evaluation of the inter-relationships among the six project parameters is a
complicated process. However, in a given project, the scope of work in terms
of size, repetition and quality gets specified and these parameters can thus be
treated as constants.
 Productivity standards for each resource item needed to execute a work in a
given time is estimated and this forms the basis for determining the time and
cost of the project.
 The value of the three parameters, i.e., time, cost and resources productivity
depends upon the effectiveness and efficiency with which the project is
managed. Therefore, in a project with pre-defined scope of work and quality
standards, completion time, production cost and resources productivity
become the project objectives.
 The planning and controlling methodology employed for time, resources and
costs is called Project Management Techniques.
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Project Management Fundamentals………….

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 Project Environments
 Most of the construction projects, containing numerous inter-dependent and inter-
related activities, have one or more of the following characteristics associated
with them:
 Initially the details of work are not precisely defined.
 Scope of work gets modified during execution.
 Nature of work varies from job to job.
 Work sites are located in remote areas.
 Places of work are spread out.
 Resource requirement and organization of work differ with each task.
 Performance is affected by unexplored site geology, uncertain weather and
unforeseen natural calamities.
 Impact of events and changes in the external environment like changes in
economic policies, rapidly changing technology, fast– moving economic
conditions and susceptible political environments add new dimensions to the
complex nature of construction projects.

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Project Management Fundamentals………….
 The environmental changes, difficulties, uncertainties and risks pose never
ending resource management problems. These problems raise issues about
how much required, where the resources are going to come from, when
should they be inducted at the site, where should they be housed, how their
utilization an be optimized, and when they should be demobilized. The studies
reveal that most of the construction projects face time and cost overruns due
to management failures.
 Project management implies the application of knowledge, skills, tools and
techniques to project activities in order to meet or exceed stakeholder needs and
expectations from a project with given scope, time, cost and quality constraints. It
aims at achieving the specified objectives efficiently and effectively by managing
human energies and optimizing the non-human resources.
 The project manager aims to achieve his mission, efficiently and effectively, to
the client satisfaction by:
 Managing : Time and progress, cost and cash flow, quality and performance
and organization behaviour.
 With : assigned organization resources.
 By : Planning, scheduling, directing, monitoring and controlling resources.
 Within : Quality, time, cost, and environmental constraints.

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Project Management Fundamentals………….
 Modern projects differ from the past practices. The fast–changing environment of
the present era imposes numerous financial, legal, ethical, environmental, and
logistical constraints.
 They interact technically, economically and socially within the environment as
well as with other organizations, structures and systems.
 The success of a project depends upon the efficiency and effectiveness with
which project management utilizes the planned resources of men, materials,
machines, money and time.
 In the modern context, a project mission is considered successfully accomplished
if the project is completed:
 Within the allocated time period.
 Within the budgeted cost.
 At the proper performance or specification level.
 With acceptance by the customer/user.
 When you can use the customer’s name as a reference.
 With minimum or mutually agreed upon scope changes.
 Without disturbing the main flow of the organization.

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Project Management Fundamentals………….
 Project stakeholders or participants are the individuals and organizations who are
actively involved in project execution or successful project completion. Key
stakeholders on a typical project include:
 Business Promoters/Owners.
 Architect-Engineering Associates.
 Construction Management Consultant
 Input Suppliers.
 Contractors.
 Project Manager.

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Project Management Fundamentals………….

Basic Ingredients in Project Management

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 Construction tasks include numerous inter-dependent and inter-related activities.


Universally, the construction of capital intensive facilities is undertaken by
'projectising' them, i.e., organizing the major works into one or more construction
projects for implementation.
 A Guide to the Project Management Body of Knowledge (PMBOK Guide) is a
book which presents a set of standard terminology and guidelines (a
body of knowledge) for project management. The Fifth Edition (2013) is the
document resulting from work overseen by the Project Management Institute
(PMI). Earlier versions were recognized as standards by the
American National Standards Institute (ANSI) which assigns standards in the
United States (ANSI/PMI 99-001-2008) and the
Institute of Electrical and Electronics Engineers (IEEE 1490-2011) It provides the
fundamentals of project management, irrespective of the type of project be it
construction, software, engineering, automotive.
 The Project Management Body of Knowledge (PMBOK) recognises 5 basic
process groups and 10 knowledge areas typical of almost all projects.

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Project Management Fundamentals………..
 The basic concepts are applicable to projects, programmes and operations. The
five basic process groups are:
 Initiating.
 Planning.
 Executing.
 Monitoring and Controlling.
 Closing.
 The ten knowledge areas are:
 Project Integration Management.
 Project Scope Management.
 Project Time Management.
 Project Cost Management.
 Project Quality Management.
 Project Human Resource Management.
 Project Communications Management.
 Project Risk Management.
 Project Procurement Management.
 Project Stakeholder Management (added in the 5th edition).

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Project Management Fundamentals………….

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Project Management Fundamentals………….

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Project Management Fundamentals………….

 Processes overlap and interact throughout a project or phase. Processes are


described in terms of:
 Inputs (documents, plans, designs, etc.).
 Tools and Techniques (mechanisms applied to inputs).
 Outputs (documents, products, etc.).
 The 47 project management processes identified in PMBOK Guide Fifth Edition
are grouped into 10 knowledge areas. The mapping among 47 processes , 10
knowledge areas and 5 process groups are outlined below.

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Project Management Fundamentals………….

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Project Management Fundamentals………….

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