Chapter 1:

INTRODUCTION

2008 IEME: Scheduling and Project Management

Definition of a Project
The Project Management Institute (PMI 2000) defines a project as
a temporary endeavor undertaken to produce a unique product or
service.
Projects are unique, one-time operations designed to accomplish a
set of objectives in a limited time frame.
Any project must have a starting point and an ending point, and it
must have a deliverable product or service that is unique.
The project consists of a well-defined collection of tasks or
activities, that when completed, mark the end of the project.

2008 IEME: Scheduling and Project Management

 Examples
In Civil Engineering:

The design/construction of Bridges, Towers, Olympic stadium, shopping centers, dams, tunnelsare examples of construction
projects.

2008 IEME: Scheduling and Project Management

A 50.5 km (31.4 mi) undersea rail

tunnel
At its lowest point it is 75 m
(250 ft) deep
began construction in 1988,
opening in 1994
The cost overran predictions
by 80%.
Eleven tunnel boring machines working from both the UK and
France cut through chalk marl to construct two rail tunnels and a
service tunnel

At the peak of construction 15,000 people were employed with daily

expenditure over 3 million
Ten workers died during construction between 1987 and 1993, the
majority being killed in the first few months of boring.
Delays :
the ground conditions proved to be much worse than anticipated
affecting the performance of the tunnel boring machines
Design changes were imposed by the
Inter-Governmental Commission.
Addition of a cooling system.
Risk
major water inflow due to the
water pressure from the sea above
under weak ground conditions.

88-floor towers
Constructed largely of reinforced
concrete, with a steel and glass faade.
Costing a whopping US$1.2bn and
uniquely designed by
Cesar Pelli & Associates.
Completed in 1997.
It rises to 1,483ft (451.9m) in height
The towers are also joined at the
41st and 42nd floors (175m above street
level) by a 192ft-long (58.4m) doubledecker skybridge - linking the two sky
lobbies and facilitating the movement
between the two towers.
PETRONAS Twin Towers

The design was awarded

to a submission from the
Swiss architecture firm
Herzog & de Meuron in
April 2003, after a bidding
process that included 13 final
submissions
Beijing Stadium (Bird nest)
The US$423 million stadium is the world's largest steel structure
All 110,000 tons of steel were made in China Construction starts in
December 2003
17,000 construction workers worked on the stadium.
Changes in the design:Elimination of the retactable roof.

 Projects may involve considerable cost.

They must be carefully planned and coordinated.
Most are expected to be completed based on time, cost, and
performance targets. (these are the objectives of a project)

2008 IEME: Scheduling and Project Management

Why project management?

Project Management has emerged because the

characteristics of our turn-of-the-century
society demands the development of new
methods of management

Many forces have fostered the emergence and

expansion of Project Management

Forces Of Project Management

The three primary forces behind project management

are:
1. The exponential expansion of human knowledge
2. The growing demand for a broad range of
complex,
sophisticated, customized goods and services
3. The evolution of worldwide competitive markets
for the production and consumption of goods
and services
All 3 forces combine to mandate the use of teams to
solve problems that used to be solvable by individuals

Companies have experienced:

Better control
Better customer relations
Shorter development times
Lower costs
Higher quality and reliability
Higher profit margins
Sharper orientation toward results
Better interdepartmental coordination
Higher worker morale

Overview of Project Management

What is project management? A team-based approach for managing projects
How is it different from general operations management?
1-Limited time
2-Narrow focus, specific objectives.
3- Less bureaucratic.
What are the key metrics?
1-Time
2-Cost.
3-Performance objectives.
What are the key success factors?
1-Top-down commitment.
2-A respected and capable project manager.
3- Enough time to plan
4-Careful tracking and control.
5-Good communications.
2008 IEME: Scheduling and Project Management

What are the main tools?

1- Work breakdown structure. An initial planning tool that is needed to
develop a list of activities that must be done during a project.
2- Network diagram. A big picture visual aid that is used to estimate project
duration, identify activities that are critical for timely completion, identify
areas where slack time exists, and develop activity schedules.
3- Gantt charts. A visual aid used to plan and monitor individual activities.
4- Risk management. Analyses of potential failures or problems, assessment
of their likelihood and consequences, and contingency plans.

2008 IEME: Scheduling and Project Management

Behavioral Aspects of Project Management

The Nature of Projects
Projects go through a series of stages: -Project definition
-Project Planning
-Project Execution
-Project phase-out.

A variety of skill requirements are involved.

2008 IEME: Scheduling and Project Management

Behavioral Aspects of Project Management

The Nature of Projects
Example: Constructing a house.
1- An idea is presented and its feasibility is assessed
2- Plans must be drawn up and approved
3- Succession of activities occurs: starting with site preparation, then
laying the foundation, erecting the frame, roofing, constructing exterior
walls, wiring and plumbing, installing kitchen and bathroom fixtures
and appliances, interior finishing work, and painting and carpeting
work.

Projects typically bring together people with diverse knowledge and

skills.
2008 IEME: Scheduling and Project Management

Behavioral Aspects of Project Management

key Decisions in Project Management

Much of the success of projects depends on key

managerial decisions over a sequence of steps:

Deciding which projects to implement

Selecting the project manager
Selecting the project team
Planning and designing the project
Managing and controlling project resources
Deciding if and when a project should be terminated.

2008 IEME: Scheduling and Project Management

Behavioral Aspects of Project Management

key Decisions in Project Management:
Deciding which projects to implement
This involve determining the criteria that will be used to decide
which project to pursue.
Typical factors include:
Budget
Availability of appropriate knowledge and skill personnel
Cost-benefit considerations
Safety issues
Government-mandated actions.

2008 IEME: Scheduling and Project Management

Behavioral Aspects of Project Management

key Decisions in Project Management:
Selecting the project manager
The project manager is the central person in the project.
The project manger bears the ultimate responsibility for the
success or failure of the project.
He or she must be capable of working through others to
accomplish the objectives of the project.
The project manager is responsible for effectively managing
each of the following:
1- The work
4- Quality
2- The human resources
5- Time
3- Communications
6- Costs
2008 IEME: Scheduling and Project Management

Behavioral Aspects of Project Management

key Decisions in Project Management:
Selecting the project manager
The prime responsibilities of the project manager are portrayed
in what is known as a project management triangle

Co
st

le
du
he
Sc

Target
Performance
2008 IEME: Scheduling and Project Management

Behavioral Aspects of Project Management

key Decisions in Project Management:
Selecting the project manager
To effectively manage a project, the project manager must
employ a set of skills, they are:
The ability to motivate and direct team members
Make trade-off decisions
Expedite the work when necessary
Put out fires
Monitor time, budget, and technical details.
The ability to adapt to changing circumstances that may
involve changes to project goals, technical requirements, and
project team composition.
2008 IEME: Scheduling and Project Management

Behavioral Aspects of Project Management

key Decisions in Project Management:
Selecting the project team
The project team can greatly influence the success or
failure of a project.
Important considerations:
Persons knowledge and skill base
Person's ability to work with others
Enthusiasm for the project

2008 IEME: Scheduling and Project Management

Behavioral Aspects of Project Management

key Decisions in Project Management:
Planning and designing the project

Project planning and design require decisions on:

what is going to be done (the project performance goals, the
scope of the project)
How it will be done? (if some portions will be subcontracted or
outsourced)
Where it will be done?
Whom will do it?( resources)
When it will start and end? (timetable for project completion)
Clearly, a lack of clarity of scope before the project starts may
lead to heated arguments, to huge budget overruns, schedule
delays, and different parties dissatisfactions
2008 IEME: Scheduling and Project Management

Behavioral Aspects of Project Management

key Decisions in Project Management:
Managing and controlling project resources
This involves:
Managing personnel, equipment, and budget.
Establishing appropriate metrics for evaluating the project
Monitoring progress
Taking corrective action when needed.
Designing information system and deciding what project
documents should be generated.
2008 IEME: Scheduling and Project Management

Behavioral Aspects of Project Management

key Decisions in Project Management:
Deciding if and when a project should be terminated
Sometimes it is better to terminate a project than to invest any
more resources.
Important consideration here are:
The likelihood of success
The termination cost
Whether resources should be better used elsewhere.

2008 IEME: Scheduling and Project Management

Project Life Cycle

The size, length, and scope of projects vary widely according
to the nature and purpose of the project.
Nevertheless, all projects have something in common: they go
through a life cycle, which typically consists of four phases:
1. Definition: - Concept
- Feasibility Analysis.
2. Planning
3. Execution
4. Termination
2008 IEME: Scheduling and Project Management

Project Life Cycle

1.Goals
1. Activities
2.Feasibility
2. Schedule
3.Responsibilities 3. Resources
4.Teams
4. Risks
5. Budgets
6. Staff

1. Status reports
2. Changes
3. Quality

2008 IEME: Scheduling and Project Management

1. Transfer documents
2. Release resources
3. Reassign staff
4. Lessons learned

Project Life Cycle

Risk Management
Identification and assessment of risk factors, mechanism for
tracking risks, implementation of contingency plans
Examples of Risk Factors
Contractual risks
What do you do if the client becomes bankrupt?
Size of the project
What do you do if you feel the project is too large?
Complexity of the project
What do you do if the requirements are multiplying
during analysis? (requirements creep)
Personal
How do you hire people? Is there a danger of people
leaving the project?
Client acceptance
What do you do, if the client does not like the
developed prototype?
2008 IEME: Scheduling and Project Management

Risk during project life cycle

With most projects there is some uncertainty about the ability

to meet project goals

Uncertainty of outcome

is greatest at the start

of a project

Uncertainty decreases as the project moves toward completion

Uncertainty decreases as the project moves toward completion