PLANNING ENGINEERING AND

PROJECT MANAGEMENT

LECTURE 01

COL

Humayun Sattar
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TOPICS COVERED

WHAT IS A PROJECT? PROJECT MANAGEMENT

WHAT IS A PROJECT?
A TEMPORARY ENDEAVOR UNDERTAKEN TO CREATE A UNIQUE PRODUCT OR

SERVICE.

Multi Tube Storey Train Flyover System in Singapur

Under Ground Hotel 12 Km Long Bridge in Sea in China

Under Water Hotel

PROJECT
A PROJECT CAN BE CONSIDERED TO BE ANY SERIES OF ACTIVITIES AND TASKS THAT : HAVE A SPECIFIC OBJECTIVE TO BE COMPLETED WITHIN CERTAIN SPECIFICATIONS (SCOPE) HAVE DEFINED START AND END DATES (SCHEDULE) HAVE FUNDING LIMITS (BUDGET) CONSUME RESOURCES (EQUIPMENT, MATERIAL etc)
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Project and Operations

Shared Characteristics

Performed by people Constrained by limited resources Planned, executed, and controlled. Temporary and Unique Attain objective and then terminate Ongoing and repetitive Sustain the business Adopt a new set of objectives and the work continues.

Projects

Operations

PROJECT OBJECTIVE
AN OBJECTIVE IS DEFINED AS THE TARGET. IT SPECIFIES THE CRITICAL RESULTS THAT MUST BE ACHIEVED UPON COMPLETION OF A PROJECT.

PROJECT SCOPE
THE WORK THAT MUST BE DONE IN ORDER TO DELIVER A PRODUCT/SERVICE WITH THE SPECIFIED FEATURES AND FUNCTIONS.

PROJECT SCHEDULE
PROJECT SCHEDULE SHOWS THE TIME FRAME OF START AND COMPLETION DATES OF ACTIVITIES CONSTITUTING THE PROJECT.

PROJECT COST
AN ESTIMATE OF THE PROJECT COST ENABLES THE ORGANIZATION TO EVALUATE THE FEASIBILITY OF THE PROJECT AND TO MANAGE THE CAPITAL REQUIREMENTS OF THE PROJECT.

RESOURCE REQUIREMENTS
ALL TYPES OF RESOURCES SHOULD BE ESTIMATED AND THE AVAILABILITY OF THE REQUIRED RESOURCES FOR PROJECT COMPLETION MUST BE WORKED OUT.

THE TERM RESOURCE IS USED FOR THOSE ITEMS THAT ONE CAN RENT, HIRE OR BUY IN ORDER TO MEET THE GOALS AND OBJECTIVES OF A PROJECT. RESOURCES AVAILABLE TO THE PROJECT MANAGER ARE:

PERSONNEL EQUIPMENT MATERIALS INFORMATION / TECHNOLOGY FACILITIES MONEY etc

PROJECTS ARE EVERYWHERE, THEY ARE AN INTEGRAL PART OF MODERN LIFE. LIKE INDUSTRIAL CONSTRUCTION EDUCATIONAL

GOVERNMENTAL
DEFENCE ENVIROMENTAL SOFTWARE DEVELOPMENT SECTORS HAVE DIFFERENT TYPES OF PROJECTS.

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PROJECT MANAGEMENT (PM)

WHY? DOING MORE WITH LESS MAXIMUM AMOUNT OF CHANGE USING MINIMUM AMOUNT OF RESOURCES Facts about Construction Industry

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Cost and Time Overrun in Construction Projects

A cost overrun is defined as difference in cost between the final cost of the project and the contract award amount Time overrun is difference of planned and actual time of completion.
9 out of 10 projects have cost/time overrun. Overruns of 50 to 100 percent are common. An industry study by the Standish Group (2004) found that average cost overrun was 43 percent, 71 percent of projects were over budget, over time. Data collected from 20 countries of 5 continents for the projects of last 70 years.
Standish Group (2004) and Bramble, Barry B. and Callahan, Michael T. (1987) Construction Delay Claims, Wiley Law Publications, 2nd Edition, U.S.A

Examples of Cost and Time Overrun in Some Famous Construction Projects

The Big Dig or Central Artery/Tunnel Project USA
A 5.6 km tunnel, The Big Dig was the most expensive highway project in the U.S. Initial cost -$2.8 billion in 1985. Final cost - $14.6 billion in 2007. Cost overrun - $11.8 billion Delay 12 years. Reasons Land acquisition Removal/relaying of existing/ new services. Design and scope problems. Finances problem
Source: The Big Dig Central Artery/Tunnel Project (CA/T) Interstate Tunnel 90 USA http://en.wikipedia.org/wiki/File:Tunnel-large.jpg

The Sydney Opera House

The Sydney Opera House is a multi-venue performing arts centre in Sydney Australia Initial cost in 1957 was $7 million. Final cost in 1973, was $102 million. Cost overrun-$95 million Delay 10 years Reasons Design and scope problems Finances problem

Source: The Sydney Opera House Australia http://upload.wikimedia.org/wikipedia/commons/3/38/Sydney_opera_ house_side_view.jpg and Jones, Peter: Ove Arup: Masterbuilder of the Twentieth Century. Yale University Press 2006

The Channel Tunnel

The Channel Tunnel is a 50.5-kilometre (31.4 mi) under sea rail tunnel linking United Kingdom with France beneath the English channel at the strait of Dover. Initial cost in 1975 was 2600 million Final cost in 1994 was 4650 million Cost overrun- 2050 Million Delay- 18 years Reasons Inconsistent government policies (UK & France) Inconsistent cash flow
Geological/design problems Source:The Channel Tunnel Britan-France http://upload.wikimedia.org/wikipedia/commons/4/4f/Course_Channeltun nel_en.svgWilson pp. 1421 and Gilbert, Jane (2006-12-01). "`Chunnel' workers link France and Britain". The Daily Post (New Zealand) (APN New

The Scottish Parliament Building

The Scottish Parliament Building is the home of the Scottish parliament at Holyrood. Initial cost in 1999 was 40 million. Final cost in 2004, was 414 million. Cost overrun- 374 million Delay 3 years Reasons
Corruption Inconsistent Cash flow Design problems Inconsistent policies Land acquisition Source:Isobel White; Iqwinder Sidhu. "House of Commons Research Paper - Building the Scottish Parliament, The Holyrood Project"and The Scottish Parliament Building Scotland http://upload.wikimedia.org

The Olympic Stadium

The Olympic Stadium is a multi purpose stadium in the Montreal Canada. Initial cost in 1973 was C$134 million . Final cost in 1987, was C$925 million. Cost overrun- C$791 million Delay 11 years Reasons
Technical/design problems Inconsistent cash flow Consultant incompetency Source:The Olympic Stadium Montreal, Quebec, Canada http://upload.wikimedia.org/wikipedia/commons/a/a9/Le_Stade_Oly mpique_3.jpgESPN.com: MLB - Merron: The Disastrous 'Big Owe

The Hallands Tunnel

The Hallands Tunnel also known as the Hallands Ridge Tunnel or Scanlink, is a 8.5km railway tunnel under construction in Sweden. Initial cost in 1992 was SEK 1 billion . Final cost in 2015, will be more than SEK 10 billion . Cost overrun- SEK 9 billion Delay 20 years Reasons Goelogical design problems Wrong constructional material usage Contractor and consultant incompetency
Source: The Hallands Tunnel http://upload.wikimedia.org/wikipedia/commons/4/4a/Hallandsastunneln0 1_2006-07-08.jpg.

Denver International Airport

Denver International Airport the largest international airport in the USA, and the third largest international airport in the world. Initial cost in 1989 was $2800 million . Final cost in 1995, was $4800 million. Cost overrun- $2000 million Delay 2 years Reasons Poor planning/estimation Repeated design changes Inconsistent cash flow
Source: Denver International Airport USA http://upload.wikimedia.org/wikipedia/commons/8/87/DIA.jpgDenver International Airport Construction and Operating Costs". University of Colorado at Boulder Government Publications Library. 1997-07-05.

Eastern Span Replacement Of The San Francisco Oakland Bay Bridge

Work on the eastern span replacement of the San Francisco Oakland Bay Bridge due to damage in earthquake. Initial cost in 1997 was $1100 million . Final cost in 2005, was $6200 million. Cost overrun- $4100 million Delay 6 years Reasons Design Problems Wrong estimation Cash flow problems Material prices hike
Source:Steve Rubenstein and Jim Herron Zamora (2004-12-16). "Oakland takes dim view of bid to rename Bay Bridge". San Francisco Chronicle. And http://upload.wikimedia.org/wikipedia/commons/c/c3/EasternSFO_OAKBrF

Ghazi Barotha Hydropower Project Pakistan

It is a run of river project for electricity generation with a 52 km long power channel near Attock Pakistan. Initial cost in 1998 was Rs 90000 million . Final cost in 2004, was Rs128000 million. Cost overrunRs38000 million Delay 6 years Reasons Inconsistent cash flow Consultant & contractors incompetency Non availability of machinery Land acquisition Corruption
Source: The Ghazi Barotha Hydropower project Power channel and Power House

Discussion/

Q&A

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