1. PROJECT
MANAGEMENT
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2. Project Management Overview
• What is a project?
• What is project management?
• What is project success?
• What factors determine project success?
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3. What is a Project?
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4. What is a Project?
“A project is usually a one-time activity with a well-defined set of desired end
results…complex enough that the subtasks required careful coordination and
control in terms of timing, precedence, cost and performance.”
Project Management: A Managerial Approach
Jack R. Meredith and Samuel J. Mantel, Jr.
1995
The assignment of resources to accomplish specific results (deliverables) with a
well-defined schedule and budget.
Accenture (1999)
“something that is contemplated, devised, or planned; a plan; a scheme; an
undertaking”
The Macquarie Concise Dictionary
Third Edition (1998)
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5. Project Characteristics
A Project…
 Has specific objectives
 Has a start and end date
 Has a budget
 Has an ‘owner’/’sponsor’
 Produces specific deliverables
 Can vary vastly in size, complexity and duration
 May be a phase within a larger project or a phase within a
program
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6. What is an Operation?
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7. Operations and Projects
• Operations and projects share many characteristics:
• Performed by people.
• Constrained by limited resources.
• Planned, executed, and controlled.
• Operations may include activities such as:
• Financial management and control
• Continuous manufacture
• Product distribution
• Projects may include activities such as:
• Developing a new product or service.
• Effecting a change in structure, staffing, or style of an organization.
• Developing or acquiring a new or modified information system.
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8. Projects are Temporary
• Temporary means that every project has a definite beginning
and a definite end.
• The end is reached:
• When the project’s objectives have been achieved, or
• When it becomes clear that the project objectives will not or cannot
be met and the project is terminated.
• Temporary does not necessarily mean short in duration:
• many projects last for several years.
• The duration of a project is finite:
• projects are not ongoing efforts.
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9. The Product of a Project is Unique
• A product or service may be unique even if the category it belongs to is large.
• For example, many thousands of office buildings have been
developed, but each individual facility is unique—different
owner, different design, different location, different
contractors, and so on.
• Because the product of each project is unique, the
characteristics that distinguish the product or service must be
progressively elaborated.
• Progressively means “proceeding in steps; continuing steadily
by increments”
• Elaborated means “worked out with care and detail; developed
thoroughly”
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10. Comparative Overview
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11. What is Project Management ?
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12. What is Project Management?
• Project management is the application of knowledge,
skills, tools, and techniques to project activities in order to
meet or exceed stakeholder needs and expectations from a
project
• Meeting stakeholder needs and expectations involves
balancing competing demands among:
• Scope, time, cost, and quality.
• Stakeholders with differing needs and expectations.
• Identified requirements (needs) and unidentified requirements
• (expectations).
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13. What is Project Success?

14. Factors in Project Success
• Project Management Philosophy
• Project Management Role and Responsibility
• Project Management Principles and Practices
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15. Project Management Philosophy
• The “Golden Rule” of Project Management is three
words:
• Plan
• Organize
• Control
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16. Project Management Roles and Responsibilities
• Project Execution
• Maintain Customer Relations
• Create a Positive Environment
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17. • Project Execution Strategy
• Project Management
• Quality
• Safety
• Risk Management
• Design/Develop/Program
• Implementation
• Documentation
• Training
Project Execution Plan

18. Maintain Customer Relations
• Develop Communication
• Ensure Timely Participation
• Include the Customer on the
Project Team
• Develop Trust and Confidence

19. Safety
Maintain a positive and safe working environment
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20. Project Management Principles and Practices
• Define Project Objectives
• Develop Project Execution Plan
• Define Baselines for Control
• Manage Risk
• Close out Effectively
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21. Define S.M.A.R.T. Project Objectives
• S pecific
• M easurable
• A ssignable
• R ealistic
• T ime related
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22. The Four Cornerstones of Project Management
Cost
Scope
Schedule
Quality

23. The Four Cornerstones of Project Management
Cost
Scope
Schedule
Quality

24. Scope
Poor scope definition is the major contributing factor
to cost overruns in the engineering and construction
industry.
CAUTION
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25. Cost Influence Relative Time

26. Initial Scoping Effort
• Sets the baseline for cost and schedule
• Must involve the right people
• Must include implementation
• Identifies items not included
• Maximum influence on project cost
• Breaks project into manageable pieces
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27. Drawings Estimate
Cost
Reports
Contracts
• Facility
• Services
Bill
of
MaterialsWBS Element/
Work Package
Schedule
The WBS
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28. Successful Work Breakdown
• Status and completion is easily measured
• Definite beginning and end
• It is familiar with prior experience
• Manageable work assignments
• One continuous stream of work from start to finish
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29. Steps for constructing a WBS
• Divide the project into major objectives
• Partition objectives into activities
• Divide activities with missing characteristics into
subactivities
• Repeat #3 until all subactivities have desired
characteristics
• Lowest subactivities are the basis of work
packages
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30. The effect of “creeping scope” is
a major cause of cost overruns
Cost
Creeping scope

31. To manage creeping scope
• Keep scope documents current
• Freeze design after the estimate has been
approved
• Allow only those changes that are justified by
benefit
• Use an effective change management procedure
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32. The Four Commandments of Good Project Scope
Written
Well defined
Clearly understood
Achievable
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33. Cornerstones of Project Management
Cost
Scope
Schedule
Quality

34. Aspects of Cost
• Estimate Basis for Control
• Cost Control Application of control procedures
to follow financial progress
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35. Estimate Requirements
• Define project cost integrate scope, schedule, and
resources
• Define estimate basis
• Identify potential risks
• Identify contingency/escalation
• Identify items not included
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36. Elements of Cost Control
• Establish the baseline (estimate)
• Measure variation from baseline
• Take corrective action
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37. Cost Control System
• Detailed project scope/work package
• Control estimate
• Chart of accounts
• Cost status report
• Forecasting process
• Change management procedure
• Cash flow forecast
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38. Project Control
Project
Day 1
--------------
To do list:
Kick off meeting
Project schedule

39. Integration of Cost and Time

40. Basic Elements of the Control System
• A project plan: Scope, schedule, estimates
• A monitoring system which measures performance
against plan
• A reporting system which identifies deviations from
the plan
• A system which communicates deviations to the
right people
• Corrective actions
• Forecasting the project outcome
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41. Key Control Philosophies
• Define the baseline for control
• Divide project into manageable pieces
• Remember: Ability to influence cost is maximum
early in the project
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42. Key Control Philosophies
• Define and manage risk/opportunity
• Integrate scope and estimated cost into schedule
• Make informed decisions
• Anticipate deviations/changes
• Adopt the “end product” approach
• Plan ahead from phase to phase
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43. Basic Project Control Steps
• Define the project scope
• Develop a project plan consistent with:
• project scope
• estimates (cost constraints)
• schedule (constraints
• resources available
• Report progress and compare with budget and forecast
• Control by taking corrective action
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44. Cornerstones of Project Management
Cost
Scope
Schedule
Quality

45. Schedule
• Planning - Identification of the sequence of events
necessary to complete the project
• Scheduling - Determination of timing and
assembly of project activities to give overall
completion time
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46. Front End Schedule
A way to get the project started right
Design
Program
Install / Test
System Turnover
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47. Basis for Project Schedule
• Project objectives
• Project scope
• Project milestones
• Project estimate (budget)
• Resource availability
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48. The Critical Path
• Identifies project priorities
• Shows activity relationships
• Enables schedule analysis
• Reflects project strategy
• Promotes teamwork
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49. Cornerstones of Project Management
Cost
Scope
Schedule
Quality

50. Design
Basis
Continuous Improvement
Quality Assurance
Quality
Control
Total Project
Quality
Management
Total Project Quality Management
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51. Project Quality Improvement
• Develop a quality management plan early in the
project
• Include representatives from all affected
organizational units on the project team
• Initiate the project effectively through kick-off and
alignment meetings
• Review performance and measure success
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52. Project Quality Improvement
• Define scope and review periodically
• Limit scope changes
formal change procedure
require justification
• Complete more engineering up-front before defining
cost and scheduling
• Obtain constructability, operability and maintainability
input to design
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53. Cost of Quality
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54. Risk Management
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55. Manage Risk
• What is risk?
• Sources of risk
• Kinds of risk
• Risk Management Process
• Identify risks
• Define consequences
• Develop a mitigation plan
• Document
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56. Sources of Risk
Technical
Financial
Socio-Economic
Contractual
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57. Risk Management Process
Identify Risk
Analyze Risk
Respond to Risk
Document Risk
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58. Sources of Help to Identify Risk
• Site investigations
• Contract documents
• Schedule
• Team brainstorming
• Body of experience
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59. Risk Control Methods
• Avoid
• Reduce
• Share
• Insure
• Accept
• with contingency
• without contingency
• Contain
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60. Risk Containment
• Clearly define insurance responsibilities in
contracts
• Use qualified personnel
• Document and communicate project
strategy
• Define roles and responsibilities
• Prepare contingency plans for critical
activities
• Use up-front team building
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61. Risk Containment
• Use qualifies contractors and vendors
• Preconstruction work briefings
(especially safety)
• Rehearse critical activities or use
mock-ups
• Use strong project control systems
• Manage contingency
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62. Project Close-out

63. Project Closeout - Major Phases
• Obtain client acceptance
• Document the project
• Conduct the post implementation audit
• Issue the final report
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64. Plan the Work…
Work the Plan
Successful Project Management
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65. Exercise - Plan a Project
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