Overview on construction management

CONSTRUCTION MANAGEMENTfor

MANAGEMENT CONSULTING

John L. Kmetz, DBAFaculty Director of International Programs,College of Business and Economics, and

Associate ProfessorDepartment of Business Administration

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PROJECT MANAGEMENT OVERVIEW

WHAT IS A “PROJECT?”

“An assigned person (or an ad-hoc team of people)and specified resources working together with goal-related authority and responsibility relationships toaccomplish an end purpose.” (John Kmetz)

“A temporary endeavor undertaken to create aunique product or service.” (Project ManagmentInstitute)

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OVERVIEW

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WHAT IS “PROJECT MANAGEMENT?”

Project management is a provenmethodology for defining projects, schedulingprojects, and tracking project progressagainst goals.

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2. The fundamental characteristics of project managementare:

• clear objectives and task definition• detailed planning• detailed scheduling of tasks• commitments of people, equipment, and resources (time

and money)• management commitment to project support• continuous tracking, updating, and review of schedule

and constraints• continuous communication with team members and

managers

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3. Project management is not:

• reorganization into a “full” project company or matrixstructure

• only for technical or engineering activities

• an entirely new set of skills and behaviors unlikeanything done in “normal” management

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WHO CAN USE PROJECT MANAGEMENT?

Anyone —

• many organizations are “streams of projects”

• many organizations use projects for specificobjectives

• most project management activities are notunique

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STEPS IN APPLYING PROJECT MANAGEMENT

1. State (write) your goal. What will be the outcome of theproject ?

• know the project scope—“my desk” or “many desks”?

2. Develop a “Work Breakdown Structure” (WBS) to identifytasks —

• a checklist for simple projects (small, low risk)• a matrix (flexible, not necessarily good for scheduling)• a formal WBS (larger projects, higher risk)

The WBS will change over time, but MS Project maintains it.

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First aid and medical

Camping equipment

Normal clothing

Sport and leisure clothing (special)

Sport and leisure equipment

Equipmentand

clothing

Cooking and camp kitchen

Food procurement

Menus and quantities

Meals

Vehicle maintenance

Routing and road conditionsCar

transport

Communications

Budgets and finance

Itinerary, schedules, alternate plans

House maintenance during absence

Car loading and camp setup

Systemengineering

Campingtrip

project

• Car loading plan• Camp setup and breakdown plan• Personnel assignments

• Notify police and neighbors• Garden and pet maintenance• Mail, milk, paper, and other routine deliveries• Emergency action plan for neighbor/caretaker• Camp site plan with alternates• Fiscal tradeoffs for alternates• Daily activity schedules

• Transportation budget• Daily expenses budget• Record of costs

• Planned local addresses• Message plan• Emergency communication plan

• Spare parts to be carried• Initial repairs and servicing• Periodic maintenance

• Normal route navigation• Alternate route navigation• Verification of road conditions• Auto club information and maps

• Post daily menus• Alternate menus• Update replishment shopping list• Perishables Initial stock

Replenishment• Nonperishables Duration stock

Replenishment• Kitchen untensils procurement• Assembly of kitchen gear (checklist)• Cooking assignments• Cleanup assignments• Equipment checklist• Procurement and maintenance

of special equipment

• Checklist (each member)• Procurement and/or maintenance

• Travel clothing• Cold weather clothing• City and hotel clothing• Laundering plan• Tent and maintenance• Sleeping gear and maintenance • Portable furniture

• First aid item checklist• Regular medicines checklist• Prepare first aid kit

CampingTrip WorkBreakdownStructureSource: B.N. Abramsonand R.D. Kennedy,Managing SmallProjects. TRWSystems Journal, 1969.

Project Work PackageLevel

Work Units Job/Task Numbers

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CAMPING TRIP WBS IN MATRIX FORMAT

Tasks Dad Mom #1 son #1 daughter #1 dog1.1.1 X1.1.2 X1.1.3 X1.2.1 X1.2.2 X X1.2.3 Xetc.

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CAMPING TRIP WBS IN OUTLINE FORMAT

1.0 System engineering1.1 Car loading and camp setup

1.1.1 Car loading plan1.1.2 Camp setup and breakdown plan1.1.3 Personnel assignments

1.2 House maintenance during absence1.2.1 Notify police and neighbors1.2.2 Garden and pet maintenance1.2.3 Mail, milk, paper, other routine deliveries

1.3 Itinerary, schedules, alternate plans

Etc.

2.0 Car transport

3.0 Meals

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3. Schedule the tasks

• estimated time to accomplish

• sequencing — what order of completion, whatdependencies (predecessors)

These are the “big three:” tasks, times, andpredecessors.

When you have all these, you can start putting yourproject together. Without all of them, you can’t.

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4. Allocate people and equipment to tasks

5. Allocate budget to tasks

6. Use Gantt chart and PERT chart to communicate projectplan

• MS Project does both, starts with a Gantt chart

7. Get commitments — people and management

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8. Assess constraints and risks

9. Iterate steps 2 through 8 as often as needed to get “solid”project plan

• Use software to its best advantage — eliminate drudgeryand keep the plan current!

10. Keep people informed throughout the project

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ASSESSING CONSTRAINTS AND RISKS


Constraints —

• total cost of project• total time to completion

Risks —

• Technical risk — can we really do this?• Cost risk — can we do it for this amount of money?• Schedule risk — can we do it by the promised date?• Process risk — can the organization adapt to the

process effects of project management?

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PROJECT MANAGEMENT OVERVIEWTHE GANTT CHART

Developed by Henry Gantt around 1910

Graph showing time on the horizontal axis, activities on thevertical axis:

• shows “flow” or progression of tasks from start (left) tofinish (right)

• shows duration of each activity in time units• enables calculation of time required for entire project• extremely simple — only “form” needed is a piece of

paper (perhaps turned sideways)• powerful tool for relatively simple projects• automatically maintained (default view) by Microsoft

Project• MS Project relatively user-friendly, easy to learn• software useful for project tracking and reporting

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THE GANTT CHART

Gantt charts have some limitations:

• not well suited to detailed plans for large, complexprojects

• does not provide insight of PERT or CPM models

• can be difficult to visualize starting points of tasks withmore than one predecessor activity

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THE PERT MODEL

PERT — Project Evaluation and Review Technique:

• developed in 1960s by Booz, Allen & Hamilton forU.S. Navy Polaris missile project

• network model• improvement over Gantt chart alone for complex

projects• requires detailed task list for network construction —

identification, order (predecessors, concurrent,following)

• requires time estimates for each task (stochastic —Beta distribution)

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THE PERT MODEL

Advantages of PERT over Gantt charts:

• sequence of project activities made explicit

• critical path easily determined

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THE PERT MODEL

The critical path:

• The critical path is the longest path through anetwork of tasks

• It is “critical” because any delay along thatpath delays completion of the entire project

• MS Project automatically prepares a networkand uses the critical path to allocate resourcesand determine project completion time

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The Critical Path:an example

Assume you have purchased a vacationhouse to be custom-built in prefabricatedsections and erected on a prepared site.

A diagram showing the steps in theprocess and the linkages between themfollows:

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12 1wkPlumbing,electrical

13 2wkPreliminterior

1 1wkApprove

plans

2 3wkObtainpermits

3 1wkExcavatefound’n

4 1wkRough utilities

5 2wkFound’nfloors,walls

6 1wkRough

1st floor

7 1wkPrep.

hookups

14 3wkFinal

assembly

15 2wkSide &finish

8 3wkRoughframe

9 2wkExteriorsheath

10 1wk Doors &windows

11 1wkShip to

site

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Paths through a network

A “path” is a complete sequence of activities fromthe beginning to the end of the network

• there are as many paths as there are differentpossible ways of going end-to-end through thenetwork

• all paths must be completed• the length of each path is the sum of the times

for all activities on the path• the longest path through the network is the

critical path

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1 1wkApprove

plans

2 3wkObtainpermits




6 1wkRough

1st floor

7 1wkPrep.

hookups

14 3wkFinal

assembly

15 2wkSide &finish

8 3wkRoughframe

9 2wkExteriorsheath


11 1wkShip to

site

1-2-3-5-6-7-14-15 =

14 wks

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1 1wkApprove

plans

2 3wkObtainpermits




6 1wkRough

1st floor

7 1wkPrep.

hookups

14 3wkFinal

assembly

15 2wkSide &finish

8 3wkRoughframe

9 2wkExteriorsheath


11 1wkShip to

site

1-2-3-4-5-6-7-14-15 =

15 wks

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1 1wkApprove

plans

2 3wkObtainpermits




6 1wkRough

1st floor

7 1wkPrep.

hookups

14 3wkFinal

assembly

15 2wkSide &finish

8 3wkRoughframe

9 2wkExteriorsheath


11 1wkShip to

site

1-2-8-9-10-11-14-15 = 16 wks

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1 1wkApprove

plans

2 3wkObtainpermits




6 1wkRough

1st floor

7 1wkPrep.

hookups

14 3wkFinal

assembly

15 2wkSide &finish

8 3wkRoughframe

9 2wkExteriorsheath

10 1wkDoors &windows

11 1wkShip to

site

1-2-8-9-12-13-10-11-14-15 = 19 wkscritical path

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Time / Stage of Life Cycle

Revenuefrom Productor Service /Effort Neededfor Project

The Project Life Cycle

Start-up Maximum effort Wind-down


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MANAGEMENT OF THE CONSULTINGPROJECT

There is (or should be) a natural relationshipbetween consulting projects and PM:

• Definition and control of the scope of work iscritically important

• Clear planning and relationships between tasksand resources is critical

• Scope and timing of deliverables is critical• Client interface milestones are vital, and must be

managed carefully• Documentation of project changes is vital• A “post-mortem” of every project is worth its

weight in gold, literally!

Overview on construction management

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