Dammam - Module 1

7/30/2019 Dammam - Module 1

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Construction Cost Management &Construction Cost Management &The Impact of the Project Schedule on CostThe Impact of the Project Schedule on Cost

Part 1: Fundamentals of Project ManagementPart 1: Fundamentals of Project Management

By Ted Garrison

Garrison Associates

www.TedGarrison.com

www.StrategicPlanningforContractors.com

www.NewConstructionStrategies.com
http://www.tedgarrison.com/http://www.strategicplanningforcontractors.com/http://www.newconstructionstrategies.com/http://www.newconstructionstrategies.com/http://www.strategicplanningforcontractors.com/http://www.tedgarrison.com/


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2(c) 2008 Garrison Associates

IntroductionIntroductionWhose fault are the problems in construction?

The real problem is:

You!

I n reali ty it s not about faul t but accountabi l i ty!


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Too Many People InToo Many People In

Construction Are Insane!Construction Are Insane!

Albert Einstein: Doing

the same thing over and

over and expecting toget different results.

Therefore, we need to

do something different!


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The ProgramThe Program

Part 1 Fundamentals of PM

Part 2 Defining the Project

Part 3 Cost Managements of Fundamentals Part 4 How Schedule Impacts Costs

Part 5 Risk Management

Part 6 Procurement and Subs

Part 7 Summary


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Part 1: Fundamentals of PMPart 1: Fundamentals of PM

Module 1: Challenges to the Industry

Module 2: Role of Project Management

Module 3: Information Measurement Theory

Module 4: What is the Key to Effective Project

Manager?


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Module 1: Challenges to theModule 1: Challenges to the

IndustryIndustry

The way to achieve success is first to have

definite, clear, practical ideal a goal, anobjective.

Second, have the necessary means to achieveyour ends wisdom, money, materials, and

methods.

Third, adjust your means to that end.

-Aristotle


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Typical PM Process

Enthusiasm.

Disillusionment.

Panic.

Search for the guilty.

Punishment of the innocent.

Praise for the non-participants.


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Are You the Obstacle toAre You the Obstacle to

Change?Change? #1 Failure to see the need for change:

#2 Fail to take action: (It takes courage)

Fear of loss of control Uncertainty about the future

Loss of competence

Loss of familiarity

Surprises

#3 Fail to finish: Harder than anticipated

Takes longer than anticipated.


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Obstacles to ChangeObstacles to Change

Our beliefs determine how we think and act.

Our beliefs may be in conflict with good ideas.

Successful people are more resistant to

change.

Often intelligent individuals attempt to solveproblems themselves.

Traditional ways are breaking down therefore need change.

Instead: Need greater collaboration throughdialogue!


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Industry Challenges

Rosabeth Moss Kanter

Secrecy

Blame

Isolation

Avoidance Passivity

Turf battles

Feelings of helplessness

Solution

Better communication

More collaboration

Greater respect


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Module 2: Role of Project

Management Project Management is a collection of skills that

when used effectively produces better results.

But you must understand that planning is morean art than a science.

One of the key roles of an effective projectmanager is being a decisive planner.

Objectives: Optimize the use of resources

Deliver high value

Minimize risk


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PM is a Management Process

That

Creates structure and purpose. (Planning)

Identifies & focuses resources. (Planning)

Identifies & sequences activities. (Planning)

Monitors and controls progress. (Execution)


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A Few Benefits of PM

A system that focuses on priorities.

20% of what you do generates 80% of the results.

Better management techniques.

Better tracking techniques.

Effective structures for communications.

Adds value for the customer.


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Functions of Management

(In reverse order of importance)

#1 - Planning

#2 Organizing

#3 Staffing

#4 Directing

# 5 - Controlling


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5 Phases of PM

D e f i n e

P la n

E x e c u te

M o n it o rA d j u s t

C o m p l e t e

E v a lu a te

T h e

L o o p


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Key Elements of a

Project Plan Project requirements (Defining-Part 2)

Work Breakdown Structure (WBS Part 3)

Schedule (Part 4) Gantt Chart

Network Diagram

Budget (Part 3)

Organizational chart (Planning)

Operating Procedures (Execution)


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Project Management Myth

Project Management is about tools!

Instead:

People problems cause difficulty in applyingtools.

Without people skills difficulty in

completing projects.

Leadership is needed instead of abusing,

manipulating, or beating on people.


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Project Management Myth

The workers arent as good as they need to be.

Managers tends to attribute problems to

workers instead of looking at systemsInstead:

6 Sigma statistics indicate that people are the

problem on 5% to 15%

Systems failures are the problems (Materials, machines, measurement, methods, and mother

nature)


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Causes of Problems

Too much work for available resources

Constantly changing priorities

Estimates based on guesswork

In other words Insufficient planning

Best positive way to eliminate variability is throughinclusive planning & empowerment.

When people participate in planning they tend torestrict behavior to behaviors & activities agreedupon.


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The AnswerThe Answer

Must examine the system

Project managers role is to offer solutions

We need to give project managers greater

responsibility (of course need to be

qualified)

Must listen to workers


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SMART GOALS

v Specific

vMeasurable

v Approved

v Realistic

v Time-bound


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Collaboration with Clients

It creates an environment of open dialogue through trust and mutual respect.

Allows you to learn more about your clients the

more you know about them the more valuableyou are to them.

It allows you time to learn and developinnovations that add value.

Collaboration is not about partnering or sharingrisk

But more on collaboration in Part 2


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A Few Trade Secrets of

Effective Project Management

A plan must be realistic dont promisewhat you cant deliver.

A good plan manages the expectations of allthe stakeholders.

Make sure your plan has a way to measurethe success of every thing the plan promises

often the schedule and budget are easierto measure than softer issues.


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A Few Trade Secrets of

Effective Project Management

Get buy in from the key team players.

It is just as important to eliminateunnecessary tasks, as it is to make sure youdont miss any focus on the most important20%.

Develop task lists for different types ofprojects it will save time and avoid mistakes.


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Project Checklist

Valuable tool to avoid forgetting

especially under pressure.

Should have one for each type of project.


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Module 3: InformationModule 3: Information

Measurement Theory (IMT)Measurement Theory (IMT)

(The material on IMT is copyright material of the Performance Based

Studies Research Group at Arizona State University and is provided with

their permission.)

IMT is a deductive logical explanation of an

event. It includes the use of relative and

related data to create information thatproduces the future outcome of an event.

Dean Kashiwagi, Ph.D. @ ASU


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Lessons Learned Through IMTLessons Learned Through IMT

Dont trust anyone!!!

Experience or information has value

How we look at life is subjective and may not

always be in our best interest

It is important to know what we dont know

It is important to be able to predict the future

outcome


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Lessons Learned Through IMTLessons Learned Through IMT

You can put yourself in a position where youhave no way to win

Even though you control your own destiny, itmay seem as if you do not if you are not usingthe right information

When you are in a bad spot, it really doesnt

matter if you didnt understand, had a badday, got caught in the wrong place at thewrong time, or deserved it, you are in a badspot


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Objectives of IMTObjectives of IMT

Minimize subjective decision-making

Minimize data required to accurately transferinfo

Identify relationships between information usage,processing speed, and performance

Identify structure that minimizes the

requirements for management Optimize processes by identifying and removing

entities which add no value or bring risk


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Deductive LogicDeductive Logic

Deductive logic is the redefining orreordering of existing information to definean outcome.

It simplifies complex situations, allowingindividuals to understand what is going on

with minimum information, or without atremendous amount of education ortechnical training.


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Initial

conditionsFinal

conditions

An EventAn Event

Time

Laws Laws


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The more information we have before the event, the

easier it becomes to predict the final outcome.

The less information we have before the event, theharder it becomes to predict the final outcome.

However, the lack of information will never change the

final outcome.

The information system should minimize decisionmaking and surprises need to do with minimalamount of info since too inefficient to collect all info.


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Perceive

Process

Apply

Change

Cycle of LearningCycle of Learning

100%

Information


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Perceive

Process

Apply

Change

Learning SpeedsLearning SpeedsAll Individuals Learn At Different SpeedsAll Individuals Learn At Different Speeds

100%

Information


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Types of IndividualsTypes of Individuals

Perceive

Process

Apply

Change

100%100%

InformationInformation

Pe

rceptionofInform

ation

Time

A

C

0%

100%

B


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The RealityThe Reality

The more perceptive individualThe more perceptive individual

perceive at a faster rate, changesperceive at a faster rate, changesat a faster rate, and makes moreat a faster rate, and makes more

accurate predictions.accurate predictions.


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Exercise on IndividualsExercise on Individuals

(Type A or Type C)(Type A or Type C)Perceives more information

Knows their constraints

Measures performance

Controls other people

Manager

Emotional

Long term planning

Works harder

Gets surprised

Prepared

Decision Making

Type A

Type A

Type A

Type C

Type C

Type C

Type A

Type C

Type C

Type A

Type C


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How Does This Relate toHow Does This Relate to

Effective PM?Effective PM?

All individuals are necessary in an event

No individuals are better or more

important

Clients must understand that they have individuals at different levels.All are important. All are necessary for the event.

Those who change at a slower rate are constrained by their capability.

The rate that an individual changes is always the right rate for thatindividual.

Information System must not threaten any individuals (or they willresist the system)


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IMT ReviewIMT Review

Events happen only one way

Events are predictable with all information.More information results in more accuratepredictions (but too inefficient to collect all

information)

An Information System should pass theminimal amount of information

There is no wrong event and everyone isneeded in the event

Reality is reality regardless of someones biasor perception


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IMT ReviewIMT Review

Measure yourself and your organizationperformance

Efficiency is doing less work

Dont make decisions (minimize decision )

Minimize the Type C characteristics tobecome more efficient


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Module 4: Whats the Key to

Effective Project Manager?

Project Management is about leadership,

not about tools!

Its about being proactive not waiting for things

to happen.

Its about being a visionary!


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7 roles of a Project Manager

1. Charismatic leader.

2. Proactive change agent.

3. Effective communicator.

4. Decisive planner.

5. Committed administrator.

6. Creative problem solver.

7. Dynamic entrepreneur.


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# Option A Check

A

Option B Check B

1 Do you administer? Or do you innovate?

2 Do you copy? Or do you originate?

3 Do you maintain? Or do you develop?

4 Do you focus on systems andstructures?

Or do you focus on the long-range perspective and people?

5 Do you worry about how

and when?

Or do you worry about what

and why?

6 Do you always worry about

the bottom line?

Or do you look for the horizon?

7 Do you maintain the status

quo?

Or do you challenge the status

quo?

8 Do you do things right? Or do you do the right things?

Total # of A checks Total # of B checks

Self-Evaluation


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StrategicStrategic vsvs Tactical ThinkingTactical Thinking

Strategic thinking looks at the big picture

and therefore focuses on the what.

The opposite of sub optimization

Focuses on doing the right thing

Improved effectiveness

Tactical thinking focuses on the how Focuses on doing things right Improved efficiency


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What It Takes to Be a Leader.

What is leadership?

Leadership: the art of getting someone

else to do something you want done

because he wants to do it.

General Dwight Eisenhower


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Why Is Leadership Important?

Leadership is no longer the domain of topexecutives but virtually every managementposition.

People dont like to be managed. They want tobe lead.

When its done right its a competitive

advantage.

Project intensity has made in a necessity.


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Difference Between

Leadership and Management

Leadership is about aligning people insteadof controlling.

Management focuses on maintaining

systems and processes through control.


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Necessary Skills of PMs

Basic tools of project management.

Advanced PM skills.

People skills.

Human resource skills.

Business skills.

Other skills.


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Project Managers

Responsibilities Understand and insure the establishment of the

Strategic Goal .

Make sure all stakeholders are identified.

Understand all stakeholders requirements.

Resolve any conflicts or contradictions in those

requirements.

Become a Rainmaker.


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Project Managers

Responsibilities

Develop a motivating climate:

Create a vision.

Develop mutual trust insure fairness.

Build rapport through mutual respect.

Create win-win environments


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Project Managers

Responsibilities

Develop a productive climate:

Insure team goals exist and are clear toeveryone.

Insure individual goals are established

and understood. Meaningful work

Be a supportive leader.


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Who Is the Most Important

Person in Your Company?

The person standing in front of

the customer at that moment!

Why?

Because at that moment that

person is the company!


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PMs Role Is to

Add Value for the Client Understand the client

Understand the clients true needs

Act like the expert you are suppose to be

Properly define the project

More than specifications and plans

Providing added value stops you from being a

commodity provider


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Project Manager as a

Rainmaker

Teach clients to want what they need

Deliver your product the way the client wants

Deliver your product when the client wants it

Give your client a little more than they expect

Remind client of the value received

Almost be a client advocate

Ask to do it again


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The Ability to Lead

The ability to lead requires three

elements: Competence

Credibility

Relationship


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Review Your Planning SkillsReview Your Planning Skills

1. I meet with others to coordinate plans,activities, and priorities.

2. I schedule for unexpected events and

interruptions.3. I involve the work group to establish goals

that support our projects direction.

4. I plan ahead to ensure that sufficient

resources are available?

5. I establish deadlines to review progresstoward accomplishing goals.


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Action Steps

Please turn to the inside of the front cover

of the resource guide. Write down 1 to 3

action steps that you want to immediately

implement from Part 1 of this program.

Documents

Dammam - Module 1