Chapter 1a - Purpose & Function of Project Mgnt

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Project ManagementChapter 1

INTRODUCTION


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Introduction

Organizations perform work. Work generallyinvolved either operations or projects,although the two may overlap. Operation andprojects share many characteristics; forexample, there are:

Performed by peopleConstrained by limited resources

Planned, executed and controlled.


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Introduction

Operation and projects differprimarily in that:

Operations are ongoing andrepetitiveWhile projects are temporary

and unique.


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Project Definition

A project can be anynew structure, plant,process, system orsoftware, large or small,or the replacement,refurbishment, renewalor removal of an

existing one. It is one-off investment.

Project: is a temporaryendeavor undertaken tocreate a unique productor service.This

undertaking must havea defined scope, aspecific beginning, andend, and produce sometype of deliverable to an

internal or externalcustomer. A project hasspecific goals (implicitand explicit) anddefined roles andresponsibilities.


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What is Project Management? Application of knowledge, skills, tools, and

techniques to project activities in order to meetor exceed stakeholder needs and expectationsfrom a project.

From A Guide to Project Management Body of Knowledge 2000

An Art or a Science? Applicable across all industries & organizations


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What is ProjectManagement?

"The planning, monitoring and control of all aspects of a project and the motivation of all those involved in it to achieve the project objectives on time and to

the specified cost, quality and performance." Source: BS 6079: 1996 Guide to project management Project management is the overall planning,implementation, control and coordination of theproject from inception to completion to meet defineneeds to the required standards within time and tobudget

Source:Payne, Chelsom and Reavill. 1995 Management for Engineers


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Why Project Management? Companies have experienced:

Better controlBetter customer relations

Shorter development timesLower costsHigher quality and reliabilityHigher profit margins

Sharper orientation toward resultsBetter interdepartmental coordinationHigher worker morale

Chapter 1-10


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Why Project Management?

Companies have also experienced somenegatives:

Greater organizational complexityIncreased likelihood of organizational policyviolationsHigher costsMore management difficultiesLow personnel utilization

Chapter 1-11


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Project Management = Control


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Controls

TIME

COSTQUALITY

FUNCTION

FEASIBILITY


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TIME

COST

QUALITY

BALANCE


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1 Integration Management2 Scope Management3 Time Management4 Cost Management,

5 Quality Management6 Human Resource Management7 Communications Management8 Risk Management9 Procurement Management

Scope of Project Management


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Objectives of a Project

3 Project Objectives:Performance

TimeCost

Expectations of clients are not an

additional target, but an inherent part of the project specifications

Chapter 1-3


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Objectives of a Project

3 Project Objectives:

Chapter 1-4


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The Definition of a Project

Must make a distinction between terms:Program - an exceptionally large, long-range

objective that is broken down into a set of projectsTask - set of activities comprising a projectWork Packages - division of tasksWork Units - division of work packages

In the broadest sense, a project is a specific,finite task to be accomplished

Chapter 1-8


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Characteristics of a Project

Have a purposeHave a life cycleInterdependenciesUniqueness

Conflict

Chapter 1-9


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FIT-OUTAND COMMISSIONING

Final Fit-Out Commission Services Opening Planning Tenancy Works Stocking and Opening

CONSTRUCTION

Preliminary Access andSite Works

Major Building Works Completion of Structureand Services Installation

DETAILED DESIGN ANDDOCUMENTATION

Establish Working Details Develop Tender Documents Develop ConstructionDocuments

Approvals / Permits

DESIGN DEVELOPMENT

Select and appoint architect Establish Team Progress Design Set Tender Parameters Define Control Mechanism Value management appraisal Planning Approval

STATEMENT OF CLIENT NEEDS

Define organisation Data Collection Corporate Objectives Operational Requirements Management Requirements

FEASIBILITY STUDY

Identify Options Define and cost options Strategic Planning Analyse commercial &

functional objectives Review and Decide

PROJECT DEFINITION

Define Organisation Define Communications Define control needs Define Project Staffing Define Design Requirements

(Sketch Plans) Define Total Cost Budget Define Total Time Budget Review Feasibility Publish Brief

IMPLEMENTATION AND CONTROL

Status Report Cash Flow Forecasts Management Reporting

Monitor Progress Monitor Costs Refine Budgets Review Feasibility

CONCEPT EVALUATION DESIGN CONSTRUCTION

PROCEDURE FOR CAPITAL WORKS PROJECTS

PHASE IV

PHASE VIII

PHASE VII

PHASE VI

PHASE V

PHASE III

PHASE 11

PHASE 1

P O S T C O M P L E T I O N

OBTAINAPPROVAL TO

PROCEED

OBTAINAPPROVAL TO

PROCEED

ProjectPhases


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The Project Life Cycle

Stages of a Conventional Project:Slow beginning

Buildup of sizePeak Begin a decline

Termination

Chapter 1-12


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Chapter 1-13


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Time distribution of project effort is characterized byslow-rapid-slow

Chapter 1-14


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Other projects also exist which do notfollow the conventional project life cycle

These projects are comprised of subunitsthat have little use as a stand alone unit,yet become useful when put together

Chapter 1-15


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The Project Life CycleUnlike the more conventional life cycle, continued inputs of effort atthe end of the project produce significant gains in returns

Chapter 1-16


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It is essential for the Project Manager tounderstand the characteristics of the life

cycle curve for his project

The distinction between the two life cycles

plays a critical role in the development of budgets and schedules for the project

Chapter 1-17


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Risk during project life cycleWith most projects there is some uncertainty

about the ability to meet project goalsUncertainty of outcome is greatest at thestart of a projectUncertainty decreases as the project movestoward completion

Chapter 1-18


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Risk During Project Life Cycle

Uncertainty decreases as the project moves towardcompletion

Chapter 1-19


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Summary

The three primary forces behind projectmanagement are:

1. The growing demand for complex,customized goods and services2. The exponential expansion of human

knowledge3. The global production-consumptionenvironment

Chapter 1-22


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Summary

The three prime objectives of projectmanagement are:

1. To meet specified performance2. To do it within specified costs3. Complete on schedule

Terminology follows in this order:program, project, task, work package,work unit

Chapter 1-23


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Summary

Projects often start slow, build up speedwhile using considerable resources, and

then slow down as completion nearsThis text is organized along the projectlife cycle concept:

Project Initiation (Chapters 2-6)Project Implementation (Chapters 7-11)Project Termination (Chapters 12-13)

Chapter 1-25