FUNDAMENTALS OF

PROJECT MANAGEMENT

Lecture No.2A
Peter Harris
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What is project management?

Process

by which projects are defined,

planned, monitored, controlled and
delivered such that the agreed benefits
are realised

Key challenges for PM

..
people
TIME
health &
safety

COST

environment/
sustainability
QUALITY/FUNCTION

Constraints
Time, cost, quality
Technical and other performance
parameters, legal environment

Input
Business need,
problem or
opportunity

Output
Management
of the project

Project
deliverables
and/or service
charge

Mechanism
People, tools and techniques and equipment
organisation

THE PROJECT MANAGEMENT PROCESS

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About PM
PM

should be carried out through

the project lifecycle
PM process provides the single
point of integrative responsibility
Someone needs to be clearly
designated as accountable for
success
PM needs to think ahead, make
decisions about remaining work,
cannot control the past.
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PM should be carried out throughout

the project lifecycle
1.
2.
3.
4.
5.

Initiating
Planning
Executing
Monitoring and controlling
Closing

Most efficient way of introducing change achieved by:

Understanding

the need
Determining the business case/success criteria
Defining what has to be accomplished
Developing a plan and working to the plan
Utilising resources in a team environment
Ensuring that the sponsor is accountable for the
successful delivery
Using PM techniques to plan, monitor and maintain
progress
Employing people skilled in PM
Typically projects involve teams working together
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PROJECT MANAGEMENT
1.Project
2. Project
Integration
Scope
Management
Management
Project Plan
Initiation
Development Scope Planning
Project Plan
Scope
Execution
Definition
Overall Change Scope
Control
Verification
Scope Change
Control

(PMBOK)
3. Project Time

Management
Activity definition
Activity
sequencing
Activity duration
estimating
Schedule
Development
Schedule Control

PROJECT MANAGEMENT (PMBOK)

4. Project Cost
Management
Resource
Management
Cost
Estimating
Cost
Budgeting
Cost Control

5. Project
Quality
Management
Quality
Management
Quality
Assurance
Quality
Control

6. Project
Human
Resource
Management
Organizational
Planning
Staff
Acquisition
Team
Development
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PROJECT MANAGEMENT (PMBOK)

7. Project
Communication
Management
Communications
Planning
Information
Distribution
Performance
Reporting
Administrative
Closure

8. Project Risk
Management
Risk
identification
Risk
Quantification
Risk Response
Development
Risk
Response
Control

9. Project
Procurement
Management
Procurement
planning
Solicitation
Planning
Solicitation
Source Selection
Contract
Administration
Contract Close
Out
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FIRST ERA: FORMATION 1955-1970

Development
of
PM
as
a
Schedule urgency/difficult
discipline
Network Scheduling (PERT)
Earned

Value Analysis
Configuration management
Value Engineering
Work breakdown structures

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PERT Programme Evaluation & Review

Technique
1.
2.
3.
4.
5.
6.

Identify the specific activities and

milestones
Determine the proper sequence of the
activities
Construct a network diagram
Estimate the time required for each
activity
Determine the critical path
Update the PERT chart as the project
progresses
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PERT
Deals with uncertainty in activity
completion times
Optimistic times
Most likely times
Pessimistic times

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Earned Value Analysis

Links

time to cost in one chart

Can be monitored monthly
1. Schedule variance
2. Cost variance
Can be used to calculate the final
outcome
Can identify losses in one part of the
project if WBS is monitored

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Configuration management
Technical management model that
focuses on establishing and maintaining
consistency of a products performance
and its functional and physical attributes
with its requirements, design, and
operational information throughout its
life.

15

Value Engineering
Is an organized approach to
providing the necessary
functions at the lowest cost +
highest value

16

Work breakdown structure

Fundamental PM technique for defining
and organising the total scope of the
project, using a hierarchical tree
structure

17

18

WBS provides for:

Responsibility

matrix
Network scheduling
Costing
Risk analysis
Organisation structure
Co-ordination of objectives
Control

19

SECOND ERA: 1970 mid 1980s

Projects

constrained:
Vietnam/OPEC/environmental
movement
PM expanded into new sectors
High failure rate of many major
projects
Often poor definition and/or impact of
external factors
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THIRD ERA: Mid 1980s - present

Several major changes have had huge
impact:
Total

Quality Management
Financial Engineering (PFI/BOT)
Environmental factors/sustainability
Information Technology
Better educated sponsor

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Swiss Re Tower, The Gherkin architect Norman

Foster

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The 2012 Construction

commitments Six principles through which the
construction industry will endeavour to
achieve a better industry and achieve best
practice Strategic Forum for Construction
http://www.strategicforum.org.uk/pdf/201
2ConCom.pdf
What are the 6 principles?
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The 2012 Construction

commitments
1.

Procurement and integration

A successful procurement policy requires

ethical sourcing, enables best value to be
achieved and encourages the early involvement
of the supply chain. An integrated project team
works together to achieve the best possible
solution in terms of design, buildability,
environmental performance and sustainable
development. 2012 Const Com.pdf
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2. Client leadership
Client leadership is vital to the
success of any project and
enables the construction industry
to perform at its best

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3. Design quality
The design quality should be creative,
imaginative, sustainable and capable of
meeting delivery objectives. Quality in design
and construction utilising the best of modern
methods will ensure that the Olympic sites
meet the civic needs of all stakeholders, both
functionally and architecturally, for 2012 and
beyond.

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4. Commitment to people
Valuing people leads to a more
productive
and engaged workforce, facilitates
recruitment
and retention of staff and engages
local
communities positively in
construction
projects.
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5. Sustainability
Sustainability lies at the heart of
the delivery
of the Games. A sustainable
approach will
bring full and lasting
environmental, social
and economic benefits through
regeneration
and legacy.
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6. Health and safety

Health and safety is integral to the
success of
any project, from design and
construction to
subsequent operation and
maintenance.

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Development of Professional
Bodies

International PM Association committed

to making PM global profession
Necessary to establish:
PM Body of Knowledge
Structure for career progress
Accreditation bodies

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Other key documents

CIOB

Code of Practice for Project

Management
RICS Project Management
Agreement & Conditions of
Contract
APM Standard terms for the
appointment of a PM
BS6079 Guide to Project
Management
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Conclusions
Development

of generic PM as a discipline
Control of cost, time & performance
PM become more holistic embracing:
political/social/environmental issues
achieving success, delivering value,
shortening time to market, optimising
performance
Success through teamwork/diminishing
uncertainty/enhancing value
Reviewed Body of Knowledge
PM is not easy, demands people with
experience
Primarily concerned with motivation of
people
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Seminar questions
1. What issues have led to the
introduction of the clients project
manager in the construction
industry?
2. What qualities are required of a
successful project manager?
4. How do clients control their
investments and when?
5. How can the contractor control the
project?
6. How can a contract contribute to
effective project management?
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