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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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The Project Life Cycle
Chapter 1-13
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The Project Life Cycle
Time distribution of project effort is characterized byslow-rapid-slow
Chapter 1-14
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The Project Life Cycle
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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The Project Life Cycle
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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The Project Life Cycle
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