Project Management

Management

MANAGEMENT

Management refers to
activities involved in
organization or one
planning, organizing,
controlling

the tasks and

directing an
of its units:
leading, and

Doing Right Things

Doing Things Right

Management Functions

P
O
L
C

Organizing
Leading
GOALS

Planning
Controlling

Quality
Cost
Delivery
Service
Method

What is the Project ?

Unique process consisting of a set of coordinated
and controlled activities with start and finish dates,
undertaken to achieve an objective conforming to
specific requirements, including constraints of
time, cost, quality and resources
a project is a planned set of activities
a project has a scope
a project has time, cost, quality and resource
constraints

What is the project ?

Project :
Converting a vision, a dream or a need to reality.

A job that has a beginning and an end (Time)

A specified outcome (Scope)
At a stated level of Performance (Quality)
At a budget (Costs).

Project Characteristics :

Temporary : Has definite Start and Finish

Unique
: Product/Service is different in some
distinguishing way

What is Project Management ?

Definition : The art of planning, organising,
leading, reporting and completing a project through
people
A project is a planned undertaking
A project manager is a person who causes
things to happen
Therefore, project management is causing a
planned undertaking to happen

Stakeholder
a person or group of people who have a vested
interest in the success of an organization and the
environment in which the organization operates

Government
Funding Body
Shareholder
Customer/End User
Suppliers

HSE/Environmental Agency
Maintenance Team
Neighbours/Community
Fusion Community
Interfaces

Why Companies need PM ?

To handle projects effectively in an organization.

To define the project and agree with the customer
To plan and assess resource needs for the project
To estimate project cost and make proposals
To plan & schedule activities in a project.
To allocate the right resource at the right time.
To assess risk and failure points and make
backup plans.
To lead a project team effectively and communicate
well

Why People Learn PM ?

To explore the latest concepts and techniques of
project management.
To increase value/contribution to the organization.
To prove yourself skillful in managing projects.
To learn a new thought process that helps
organized thinking and structured approach.
To acquire a professional degree/ recognition and
increase job prospects.
Endless possibilities and benefits..

Project Management Plan

Tells How work will be done
The key to a successful project is on the planning.
All the detailed planning work for different aspects of
the project is integrated into one single plan known as
the Project Management Plan

INPUT
Goal
Team
Money
Time
Equipment

PROJECT

OUTPUT
DELIVERABLES

Gate 0

Project Justification
- Approve Project Definition

Gate 1

Strategic and Budgetary

Approval

Design Approval

Undertake Design

Gate 2 - Approval of

Final Documents

Readiness for

Gate 3 Manufacture

- Approval to
place Contract

Initiate Project
Prepare Technical Design
Ensure Machine Compatibility
Prepare
Safety Case Modification

Major
Project
Proposals

Project
set-up

Project
Definition

A ppoint Project Sponsor

A ssess Project Priority
A ssess Budget Implications
Est. Proj. Deliverables and Objectives
A ppoint Project Leader
A pprove Project Set-up
EFDA /CSU/JOC Management

Conceptual
Design

Undertake Tender

Scheme
Design

Detailed
Design

Tender
Invitation &
Assessment

Raise/Extend/Update initial TCD-R/PERF

Prepare Outline Conceptual Design
Define Design Constraints
Prepare
Interface Requirements Spec. (IRP)
Finalise Conceptual Design
Hold Conceptual Design Review (CDR)
Clear CDR Issues
Initiate Modification Safety Case
Update PMP
A pprove Proceed to Detailed Design

Extend TCD-Rs/PERFs
Prepare Sub-system Detailed Design
Hold
Detailed Design Review (DDR)
Clear Sub-system DDR Issues
Use TCD-I/MMA C for Sub-system DD A pproval
Prepare Final Documents including:
- Design Documents., Machine Compatibility
Documents., Safety Case Modification

Project Team/IRP/EFDA/CSU/JDC

Project Team/Interfaces/EFDA/CSU/JDC

PROJECT PROCESS

* This will include:

- Initial WBS, OBS and CBS
- Project Plan
- Risk and Procurement Strategies
** These will only take place here
for large projects demanding DO
effort for preliminary Conceptual
work

Draft Statement of Requirements (SoR)

Review & A pprove SoR
Identify
Resources
A ppoint Project
Team
Produce & Maintain
Procurement Plans
Undertake Project Risk A ssessment
Prepare Project Boundary Document
Develop Project Management Plan (PMP)*
Raise initial TCD-R/PERF**
Prepare Preliminary Conceptual Design**

- Technical Specification
- Drawings
- Contractual Requirements

Compile Tender Docs.***

Send out Invitations (ITTS)
Hold Clarification Meetings
Receive Tenders
Evaluate Tenders
A rrange site visits
A pprove changes to Specs.
Choose preferred Company

Raise/Extend Sub-system TCD-Rs/PERFs

A gree Classifications & Interfaces
Prepare Sub-system Scheme Design
Hold Sub-system Scheme Design Review (SDR)
Clear Sub-system SDR Issues
Update PMP
Use TCD-I/MMA C for Sub-system SD A pproval

Project Team/Contracts/EFDA

Project Team/Interfaces

Project Leader/Project Team/EFDA/CSU

Implement Project
Manufacture
Equipment

Project Team/Contractor/ICM

Readiness for Operation

Gate 4 - Acceptance of System

Complete Project
Install
Equipment

Raise Contract Documentation

Place Contract
Hold Kick off Meeting (KOM)
Clarify Issues (Quality Plan)
Monitor Progress
Witness key Procedures
Complete Release Note
A pprove Complete Package****
A pprove Release Note
Pack & Dispatch Equipment

**** This includes

supporting documentation

*** These will comprise:

Test &
Commission

Confirm
Completion

Project
Review

Test Equipment against Test Schedule

Commission Complete System
Undertake Post
Project Review

Project Team/ICM/EFDA /CSU

Project Team/CSU
Receive Equipment
Pre-test Equipment
Install equipment
Project Team/ICM

Confirm Technical Completion

Review Project Records
Complete
Handover Documents Resolve
Reservations
Obtain
A cceptance of Completed Project
Project Team/EFDA /CSU

Note: Overall Project

Management and Reporting will
be as defined in the Project
Management Plan (PMP)
Gates (Formal Decision Points)
See accompanying notes

PM Plan Establish the Project

Why

Why &
What

Who

When

How

How
much

Why is from the business case

Why & What are management statement of the success criteria
and should be agreed with the project sponsor
Who will do the work and stakeholder awareness of the project

When deals with schedules and phasing for the project

How which is the project manager vision to implement project
from beginning to end
How Much covers the costs and budgets of the project.

Project Management Overview

Project Management Process

VARIOUS STAGES OF PROJECT

PAVE A PATH
FOR SUCCESSFUL COMPLETION
STATUS UPDATING THROUGH
NETWORK AND
GIVING EARLY WARNINGS

DATA COLLECTION

PLANNING & SCHEDULING

THINKING

Key Point in Project Setup

Create Project Management Plan (PMP)
Be clear of scope and objectives
Establish clear statement of what is to be done
(WBS)
Establish Risks to be Managed
Establish Costs and Durations
Establish Resources Required

PM Process Group

Project Management Stages

PLANNING
SCHEDULING
CONTROLLING
CLOSING

Most important phase of the project

management.
Planning is an art and science of converting a set
of objectives to realization through a series of
steps executed in an organized and predicted
way so that there will be less requirement of
changes in the plan later on.
The old saying Plan the work, Work the plan

Project Management Stages

PLANNING

SCHEDULING
CONTROLLING
CLOSING

Scheduling Phase is the process of formalizing

the planned activities, assigning the durations,
resources and sequence of occurrence in
consultation with the team members.
Planning and Scheduling phases are under taken
before the actual project starts.

Project Management Stages

PLANNING
SCHEDULING

Controlling phase is undertaken during the

actual project implementation.

Project controlling is a mechanism established

to determine deviations from the project
base schedule, to re-plan & reschedule
CONTROLLING during implementation to compensate the
deviations on the basis of commissioning
minima, flow of resources like
CLOSING
finance, manpower, equipment &
application techniques.

Project Management Stages

PLANNING
SCHEDULING
CONTROLLING

CLOSING

Closing phase is the last phase of the project

which brings close out of the complete
project. Whatever the project requirements
are pre-defined, during this phase the total
delivery is made and it is accepted by the
customer.
Maximum conflicts can arise in the project
during this phase between those who have
worked to deliver the outcome (contractor)
and those who are accepting the results of
the work (customer).

PM Knowledge Area
1

Change

Integration
2

Document

Procure
ment

Scope

PM Knowledge
Areas

Time

Cost

Risk
8

Communi
Cation
7

Human
Resource
6

Quality
5

Project Management Body of

Knowledge (PMBOK)
Project Integration
1. Project Plan
Development
2. Project Plan Execution
3. Overall Change Control

Project Cost
1.
2.
3.
4.

Resource Planning
Cost Estimating
Cost Budgeting
Cost Control

Project Communication
1. Communication
Planning
2. Information Distribution
3. Performance Reporting

Project Time

Project Scope
1.
2.
3.
4.
5.

Initiation
Scope Planning
Scope Definition
Scope Verification
Scope Change Control

Project Quality
1. Quality Planning
2. Quality Assurance
3. Quality Control

Project Risk
1. Risk Identification
2. Risk Quantification
3. Risk Response
Development
4. Risk Resource Control

1.
2.
3.
4.
5.

Activity Definition
Activity Sequencing
Activity Duration Estimating
Schedule Development
Schedule Control

Project Human Resource

1. Organizational Planning
2. Staff Acquisition
3. Team Development

Project Procurement
1.
2.
3.
4.
5.
6.

Procurement Planning
Solicitation Planning
Solicitation
Source Selection
Contract Administration
Contract Close Out

Project Management Body of

Knowledge (PMBOK)
Project Integration
1. Project Plan
Development
Project
Charter
2. Project Plan Execution
3. Overall Change Control

Project Cost
1.
2.
3.
4.

Resource Planning
Cost Estimating
RAB
Cost Budgeting
Plan vs Actual
Cost Control

Project Communication
1. Communication
Panduan
Planning
2. Information
Distribution
Komunikasi
3. Performance Reporting

Project Time

Project Scope
1.
2.
3.
4.
5.

Initiation
Scope Planning
Scope Definition
Scope Verification
Scope Change Control

WBS

Project Quality
1. Quality
Planning
Spesifikasi
2. Quality
Plan Assurance
vs Actual
3. Quality Control

Project Risk
1. Risk Identification
2. Risk Quantification
Daftar
Risiko
3. Risk
Response
Plan vs Actual
Development
4. Risk Resource Control

1.
2.
3.
4.
5.

Activity Definition
Activity Sequencing
TimeDuration
Schedule
Activity
Estimating
Plan Development
vs Actual
Schedule
Schedule Control

Project Human Resource

1. Organizational
SDMPlanning
2. Staff Plan
Acquisition
vs Actual
3. Team Development

Project Procurement
1.
2.
3.
4.
5.
6.

Procurement Planning
Solicitation Planning
Solicitation
Kontrak / Legal
Source
Selection
Plan
vs Actual
Contract Administration
Contract Close Out

Perbedaan PMBOK 4th, ISO21500,

& PMBOK 5th

Project Integration Management

Project Integration Management supports various
elements of project management which are
identified, defined, combined and coordinated
Develop Project Charter
Develop Project Management Plan
Direct and Manage Project execution
Monitor and Control Project Work
Perform Integrate Change Control
Close Project or Close

Project Integration Management

Project Charter :
DOCUMENT that formally authorizes a project.
Provide information about internal and external parties involved in and
affected by the project.
Documenting initial requirements that satisfy the stake holders needs and
expectations.
ISSUED by a project initiator or sponsor, external to project organization,
at a level appropriate to project funding.
EMPOWERS the project manager to apply resources to project.
Summary level Milestone schedule and Summary level Budget

Project Scope Management

Project Scope Management includes the
processes required to ensure that the
project includes all the work required, and
only the work required to complete the
project successfully
Collect requirements
Define Scope
Create WBS
Verify Scope

Project Scope Management

WBS Work Breakdown Structure :
A deliverable-oriented hierarchical decomposition of work to
be executed by the project team to:
create required deliverables
accomplish project objectives
WBS organizes and defines the total scope and represents
specified in the current approved Scope Statement!
Process of subdividing project deliverables and project
work into more manageable components.
Lowest level of WBS is work package can be scheduled,
cost estimated, monitored, and controlled.

Typical WBS of a Project

OVERALL PROJECT

ENGINEERING

PROCUREMENT

CONSTRUCTION
SITE MOBILISATION

BASIC ENGINEERING

DETAILED
ENGINEERING

PLACEMENT OF
ORDER ON VENDORS

MANUFACTURING &
DELIVERY

PROJECT
ENGINERING

CIVIL WORK

Piling work

Civil work for

Main equipment

STRUCTURAL STEEL WORK

EQUIPMENT INSTALLATION
PIPING INSTALLATION
ELEC. INSTALLATION
EQUIPMENT
RECEIVED AT SITE

INSTRUMEN. INSTALLATION

( %)
INSULATION & PAINTING

KPL - WBS

COLD COMMISSIONING
HOT COMMISSIONING

Civil work for

Aux. Facilities

Project Time Management

Project Time Management ensures the
timely completion of the project.
Plan Schedule Management
Define Activities
Sequence Activities
Estimate Activity Resources
Estimate Activity Durations
Develop Schedule
Control Schedule

Project Time Management

Project Time Management

Schedule once finalized is set as a baseline
Progress of work are tracked against the baseline
Current progress is arrived from various (Engineering, Proc,
Manufacturing and Construction) Trackers developed for the
purpose. These schedules are called current schedules
Analysis and forecasting is done in progress reports.
Software :
Schedule using MS Project
Schedule using Primavera (P6)
Engineering Tracker
Manufacturing & Supply Tracker
construction tracker

Project Cost Management

Project cost Management includes the processes
involved in estimating, budgeting, and controlling
costs so that the project can be completed within
the approved budget.
Estimate cost
Convert it into budget
Load the cost into schedule
Perform earned value (EV) analysis
Perform estimate at complete (EAC)
Administer changes
Control cost

Project Quality Management

Project Quality Management ensures the project
will satisfy NEEDS for which it was undertaken.
Plan Quality
Perform Quality Assurance
Perform Quality control

What is Quality?
Conformance to specifications
Fitness for use

Project Quality Management

Plan Quality
Techniques
Cost benefit
analysis
Cost of quality
Benchmarking
Design of
experiments
Seven quality
tools
Statistical
sampling

Perform Quality
Assurance
Techniques
Quality
management and
control tools
Quality audits
Process analysis

Perform Quality
Control Techniques
Statistical sampling
Inspection
Seven quality tools
and techniques
Cause and effect
diagram
Flowcharts
Check sheets
Pareto diagrams
Histogram
Control charts
Scatter diagram

Project Human Resource

Management
Project Human Resource Management includes the
processes that organize, manage, and lead the
project team and to make most effective use of
people involved in the project.
Develop Human Resource Plan (Role &
Responsibility, Organization chart,
Staffing Management Plan)
Acquire project team
Develop project team
Manage project team
Organization Chart

Project Human Resource

Management

Project Communication
Management
Project communication management include
processes required to ensure timely and appropriate
generation, collection, distribution, storage, retrieval,
and ultimate disposal of project information.
Identify Stakeholders
Plan Communication
Distribute Information
Manage Stakeholders expectations
Report Performance
RACI

Project Communication
Management
Project Stakeholders :

Customers/users

Sponsor

Portfolio managers/portfolio review board

Program managers

Project management office

Project managers

Project team

Functional managers

Operations management

Sellers/business partners

Project Communication
Management

Project Risk Management

Project Risk Management is concerned with identifying,
analyzing and responding to project risks.
Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk responses
Monitor and Control Risks
Risk Register

Risk
Assessment

Risk
Control

Risk
Ranking

Risk
Mitigation

Project Procurement
Management
Project Procurement Management is needed to
acquire material, goods and services outside
performing organization to meet project scope.

Plan Procurements
Conduct Procurement
Administer Contracts
Close Procurement

Project Change Management

Projects generally dont go 100% as planned
resulting into variations from plans in scope, time,
cost, quality
Change control boards (CCBs)

Project Document
Management
Document management is very important (but largely
ignored) aspect of project management
This can be a sophisticated software or simple excel sheets
depending on the organization strategy
Once adopted its use should be fully exploited viz. 100%
documents should pass through it and document reviews
should be done as per the matrix defined
MIS of document status be generated at the end of period

Project Document
Management
Proper DMS ensures right information to all
stakeholders at all times
Avoid using obsolete drawings and designs for
execution
Serves a very good engine for future use of project
data
Example of a simple document management system
Document control log

S-Curve Monthly Progress Report

Progress reporting is done through different formats and curves.

31

What is S Curve
S- Curve is the graphic display of cumulative progress
plotted against time.
Ideal S - Curve is a sinusoidal curve based on the
following formulae:
Y = [1 - sin(x/xn*180 + 90 ) *50]
Y Percent progress
x Period at which s-curve value required
xn Total period
The name is derived from the 'S' like nature of the curve.
S-Curve

Progress distribution curve

Progress

Peak Period

Cumulative progress Curve

Plotted in a different scale

Starting Period
Finishing Period

Time
It is an ideal distribution curve. Depending upon the various
guiding factors it may vary.

S Curve or Project Life Cycle