Project Management/Energy Management

Dr Sina Rezvani

Objectives of the workshop

At the end of the workshop you should be able to know:

What are the main reasons for project failure/success?

Key project management principlesWhat are project success metrics in Environmental

Engineering Design / Energy Management ?

Describe the nature of a project?

A project is a sequence of unique, complex, and connected processes and activities having one goal or

purpose and that must be completed by a specific time, within budget, and according to specifications.

• Projects involve risks• Different phases• Involves people and groups with different expertise or

backgrounds• Projects don’t fall from sky (Problem)• Requires planning and coordination of interrelated activities• Feasibility studies

Project inception

• Projects don’t fall from sky, they are created

• Feasibility studies / Project evaluation• Planning • Coordination of interrelated activities• Resource allocation

Steady state,

Homoestasis

Sustainability

Equilibrium

Failure often results from flawed perceptions of what is involved in

successfully managing complex system development from inception through

completion.

Kevin Forsberg: Visualizing Project Management

Source: Humor in Systems Analysis

Project limitations• Controllable:

– Specifications– Deadlines– Budget– Skills– Experience

• Beyond our control: – Environmental– Political– Global

Why projects fail?• The goal of the project needs to be defined

clearly• Lack of change management

(changes to project are not controlled) The ‘moving goalposts’ syndrome.

• Poor or non-existent planningA solid plan is one of the key steps of the effective project

management.

• The project is not resourced as planned Resources are not available at the time, or are not booked in advance

Why projects fail? Cont…Quality criteria is not defined or measuredLack of ownership - It is not clear who is

responsible for the project outcomeThe progress is not monitored and

controlled properly.Lack of coordination of activitiesThe project is not led properlyThe project reporting is inadequate or

does not exist

On time, on budget and as defined

Tip-of-the Iceberg syndrome

Things you should know• Define your project clearly• Proper project planning in terms of process• Responsibilities • Communication plan + implementation• Quality plan + implementation through monitoring• Contingency plans + implementation if required• Managing plans (Project manager)• Identifying risks and possible problems• Problem solving (something will go wrong at some

point)

What is your project?

General project life cycle

– Problem perception– Problem definition– Ideas and suggestions– Decision making process– Planning– Implementation– Validation– Feedback– Correction

Problem

Implementation Formulation

Evaluation Identification

The project cycle

In-house R&DSmall Construct.

Large Construct.

Aerospace/Military MIS

Interpersonal skills Low Low High High High

Organisational structure Low Low Low Low High

Time management difficulties Low Low High High High

Number of meetings Excessive Low Excessive Excessive High

PM's supervisor Middle M. Top M. Top M. Top M. Middle M.

Project Sponsor present Yes No Yes Yes Yes

Conflict intensity Low Low High High High

Cost control level Low Low High High Low

CLASSIFICATION OF PROJECTS

LIFE-CYCLE PHASE DEFINITIONS

Engineering Manufacturing IT Construction

Start-up Formation Conceptual Data gathering

Definition Buildup Planning Planning

Main Production Definition Basic Eng.

Termination Phase-out Design Major review

Final Audit Implementation Detailed Eng.

Conversion Construction

Commissioning

Project Plan

• Why?

• What?

• When?

• Who?

• How?

• How Much?

• Objectives

• Products

• Milestones

• Responsibilities

• Approach

• Resources & Effort

Project management strategy

Project responsibilities

Brief Generation Process• Initial phase

– Identifying user requirements/needs– Setup working group (chair, responsibilities…)

• Statement of needs– Meetings/workshops– Draft statement of needs

• Function, timing, priorities, land, – Review and confirm the needs

• Business case– Physical and financial resources and impacts – Draft, review and confirm business case– Set and confirm targets

Statement of needs• Activities and Functions

– Functions: Number of rooms, open areas, space requirements, heights, frequency of use, special needs, maintenance, visitors, people movements, access areas, deliveries, parking, site availability, etc.

– Features: Wall, floor ceiling materials and finishes, relationships, etc.

• Environmental Condition/Control– Temperatures, humidity, fume extraction, light, dust, energy needs,

landscapes, visual impact, water usage, etc.

• Security / Safety Issues– Privacy, radiation, access, fire, noise, wastes, chemicals, special needs

(museums, hospitals, manufacturing areas) etc.

• Services– Air conditioning, heating/steam, ventilations, lighting, boilers, CHP,

gas/electricity/water supply, effluents, IT, storage,

Functional Briefing (FB) Stage• Based on agreed statement of needs

– Translated into researched and comprehensive FB

• FB is used to generate – a clear definition of the project

• Main objectives, client, functions, flexibility, services, specific requirements, prioritisation, feasibility, impacts

– Budget and cost estimations (different costs)– Project schedule

• FB requires – Experts and multidisciplinary skills– Conceptual analysis– Knowledge base / large experience base– Plan of the proposed building according to agreement– Final approval

Primary goal from entrepreneurial point of view

• Maximize profits • Minimize costs• Competitiveness• Economic growth• Short pay back times• Low operating costs• Demand-Supply balance• Short term planning• GDP approach to everything

Primary goal from functionality point of view

• System according to specification• High availability /reliability• Good performance attributes• High lifetime• Low maintenance• Additional functionality (be careful with this one)• Easy to use but complex enough to perform more

complicated jobs• Ergonomics

Primary goal from social point of view(HDI approach)

• Improving standard of life• Better health care/standards• Human development• Social cohesion / abolishment of prejudices• Nurturing a growing culture• Education/training/sciences• General happiness (lower mental disorders ..)• Lower crime rates, elimination of corruption• Justice/fairness (competition) /human rights• Universal participation/grassroot activities • Humanitarian activities• Cultural development

Primary goals from environ. point of viewRequires long-term planning

• Sustainability issues• Preservation of resources (e.g. by improving efficiencies,

renewable energy …)• Reducing GHG emissions/ pollutions/waste (water, air

soil etc.)• Preserving geological heritages / ecosystems• Biodiversity / reforestation• Population dynamics /urban developments/ land use• Maintaining environmental balance• Protecting water / food resources (pest control,

fertilizers, rerouting water etc.)

Heating options

• Low energy house / building• Passive house• Heat recovery• Insulation• Alternative ways of heating

– Biomass– Geothermal– Solar

Project Authorisation

• Project initiation• Project Feasibility analysis• The Project Business Case

– Created usually by the sponsor– SMART objectives

• Project Charter– Formally authorises the project

• Project strategy /Scoping

Project specific information• Project perception

– Problem identification, goals and objectives• Human resource Management

– Stakeholders: Team members, sponsors, managers, other peoples

– Responsibility matrix and levels (Organ. charts) – Leadership, management, communication,

ownership• Management of Non-human resources

– Identifying materials, tools, machines etc.– Procurement plant, supply chain management

Project specific information (cont.)• Project management approach

– Process: Project strategy (TD or BU), planning, best practice guidelines, monitoring progress, flexibility, contingencies

– Project schedule: Task dependencies, time allocations (deliverable, milestones, ..), budgets

• Project monitoring– Checklists /recording progress– Cost / time estimation versus real values– Evaluating the work of people and the quality of non-human

resources– Quality control mechanisms: tests, inspections, problem

identifications, spotting bottlenecks– Reports: Feedback, useful for future projects

Project specific information (cont.)

• Project performance– Benefits to customers, operators, people, – Quantify benefits: Environ., social, R&D, scientific

etc.– Operating and maintenance – Breakeven electricity selling prices / payback time– Renewable energy directives, emission trading

schemes (ETS), other financial incomes

Understand your project through a Mind Maps

Address the main project aspects in a diagram• Problem perception• Project/problem definition• Feasibility aspects• Complexity versus simplicity• Goals / main ideas / project differentiation/

innovation• Project management: Structure, team,

planning, organisation, control, timing

Civil and building engineering

• Project management ProcessLocation, scale of work, environmental

impact, magnitude of serviceInitial project design, simulations, tests,

prototyping, benchmarking: System selection, risk reduction, cost estimation

Decision making process: Shareholders, loans, planning permission

Designing the work: Specifications, milestones, resources, cost optimisation, contacts (according to ICE)

Construction: control mechanisms, resource allocation, actual work

Commissioning: Tests

Parties involved

• Promoter/employer: finance and initiate the project

• Contractors: Implementing the work, (invited to tender), providing resources

• Agent: In charge of giving the day-to-day instruction, directing construction work on site

• Plant manager: plant availability• Foreman: Keep the work moving ahead• Skilled personnel: Welders, brick layers,

carpenters, concrete gangs etc.

Engineers• Engineer + advisors: Supervisory role (works in

partnership with contractors)Consulting engineer: Feasibility analysisSection engineer (sub-agent): Setting out

works and progress report Independent engineer (as described by ICE):

impartial role of communicating between both sides

Resident engineer (Project manager): appointed by the employer to supervise the completion of work according to the spec. , administer the contract

Further jobs• Quantity surveyor: Manages costs

relating to building, payment applications

• Office manager: Misc activities• Site accountant: Transactions• Plant operators: Drivers, crane

operators,

Executing

InitiatingPlanning

Controlling

Closing

Simplified Process

R&D

• Phase 1: Proposal• Phase 2: Analysis• Phase 3: Design• Phase 4: Development• Phase 5: Implementation• Phase 6: Post-implementation

Project planning• Historical Records – need to collect and

use for planning, estimating and risk• Meetings to consult on project scopes• Work Breakdown Structures• Do not introduce benefits that are not

stated in requirements• Needs of all stakeholders should be taken

into account during all projects• Team Members must be involved in

project planning• Project Manager must be pro-active

Implementation

• The application of knowledge, skills, tools and techniques to project activities

• Meeting the expectations of stakeholder

• Performance parameters:– Scope, time, cost, and quality– Requirements vs. unidentified needs

Resources

Time (Schedule, Deadline)

Costs

Success

Management– Defining– Planning– Organising– Staffing– Executing– Controlling– Directing– Completing– Documentation– Feedback

Human resource planning• Definition:

– “The process for ensuring that the HR requirements of an organisation are identified and plans are made for satisfying those requirements.”

• Activities involved:Identify and acquire the right number of

people with the proper skills.Motivate them to achieve high

performance.Create interactive links between business

objectives and people-planning activities.

Aims of HRP• Attract and retain the number of people required

with the appropriate skills, expertise and competencies

• Anticipate the problems of potential surpluses or deficits of people;

• Develop a well trained and flexible workforce to contribute to the organisation’s ability to adapt to an uncertain and changing environment;

• Reduce dependence on external recruitment when key skills are in short supply by formulating retention, as well as employee development strategies;

• Improve the utilisation of people by introducing more flexible systems of work.

Practice

• Resourcing strategy• Scenario planning• Estimating future requirements• Labour turnover• Action planning

‘HARD’ and ‘SOFT’ HRPHard HRP

– Quantitative analysis to ensure that the right number and sort of people are available when needed

Soft HRP– Ensuring the availability

of people with the right type of attitudes and motivation who are committed to the organisation and engaged in their work and who behave accordingly

Soft HRP

• Soft HRP is based on assessments of the requirement for these qualities and measurements of the extent to which they exist, by:

– Using staff surveys– Analysing outcomes of performance

management reviews– Analysing opinions generated by focus

groups

The HRP Process

Four main categories of staff:

• Existing staff• New recruits• Potential staff• Leavers

JOB→↓ SEQUENCE

A B C D E

1 W - 2 L - 2 L - 2 L - 3 T - 1

2 D - 2 W - 6 T - 4 T - 3 L - 1

3 T - 4 L - 4 W - 5 Pa - 3 Pa - 3

4 D - 2 D - 2 L - 4 Pe - 3

5The sequence cannot

be altered

Pa - 3

A small engineering firm employs 6 people: Louis (Lo), David (D), Walter (W), Tom (To), Pa: Patrick, Pe: Peter

20 days to complete 5 Jobs/OrdersDetermine whether a solution is possible. Use a bar chart format to demonstrate your answer

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

A

B

C

D

E

Louis

Tom

Walter

David

Patrick

Peter

Accumulation of work Louise Tom Walter David Patrick Peter

1 7 1 2 0 0 0

2 1 7 6 2 0 0

3 4 4 5 0 6 0

4 4 0 0 4 0 3

5 0 0 0 0 3 0

16 12 13 6 9 3

Plan restructured

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Lo

To

W

D

Po

Pa

A  

B  

C  

D  

E  

Exercise 2

Order Operation Duration

1. Excavate base 1 day

2. Concrete blinding ½day

3. Reinforcement to base 1

4. Concrete base 1

5. Reinforcement to column 1

6. Formwork to column 2

7. Concrete column 1

8. Strike formwork ½day

Prepare a plan in bar chart form for the construction of 3No. Columns.

a. You have only the use of 1No. of each resource b. Unlimited resources

Solution

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Excavate Base

Concrete Blinding

Reinforce to Base

Concrete Base

Reinforce to columns

Formwork to columns

Concrete Column

Strike framework

Solution

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Excavate Base

Concrete Blinding

Reinforce to Base

Concrete Base

Reinforce to columns

Formwork to columns

Concrete Column

Strike framework

Solution

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Excavate Base

Concrete Blinding

Reinforce to Base

Concrete Base

Reinforce to columns

Formwork to columns

Concrete Column

Strike framework

WBS

• Functional decomposition of a system• Breaks the project into chunks of work at

a level of detail that meets planning and scheduling needs

• Object oriented WBS• Task oriented WBS

http://www.successfulprojects.com/

Project Selection 1.1.1.1.1

Project Organization

1.1.1.1.2

Project Planning 1.1.1.1.3

Chapter 1 1.1.1.1

Budget & Cost

1.1.1.2.1

Scheduling 1.1.1.2.2

Project Controls 1.1.1.2.3

Auditing 1.1.1.3.1

Administrative

Closeout

1.1.1.3.2

Writing Text Book

1.1.1

Editing Text Book

1.1.2

Publishing Text Book

1.1.3

Project Management- An Introduction

1.1

BEST Management Books

1.

Chapter 2 1.1.1.2

Chapter 3 1.1.1.3

Editing Chapter 1

1.1.2.1

Editing Chapter 2

1.1.2.2

Editing Chapter 3

1.1.2.3

Project Selection 1.1.1.1.1

Project Organization

1.1.1.1.2

Project Planning 1.1.1.1.3

Chapter 1 1.1.1.1

Budget & Cost

1.1.1.2.1

Scheduling 1.1.1.2.2

Project Controls 1.1.1.2.3

Auditing 1.1.1.3.1

Administrative

Closeout

1.1.1.3.2

Writing Text Book

1.1.1

Editing Text Book

1.1.2

Publishing Text Book

1.1.3

Project Management- An Introduction

1.1

BEST Management Books

1.

Chapter 2 1.1.1.2

Chapter 3 1.1.1.3

Editing Chapter 1

1.1.2.1

Editing Chapter 2

1.1.2.2

Editing Chapter 3

1.1.2.3

WBS ≠ Organisational chart

Preparing a WBS• Iterative consideration of the

project’s purpose• Functional/performance design

criteria• Project scope, technical

performance requirements• Conceptual stage: A high-level WBS• Specifications at lower levels• Think deliverables• Clear vision of the end product

Assumptions

Aggregation of all subordinate works Decomposition to the level of production Each element => a single tangible deliverable Avoid duplication of efforts

Each subordinate element => Only one single parent Logical partitioning of deliverables Deliverables unique and distinct from their peers Deliverables: optimised in size, controllable Costs, resources and manpower Consolidation of the whole project cost

Level of details• Improving the accuracy of the estimation• Defining a responsibility for each deliverable• Number of deliverables for each WBS elements• Accuracy of the work processes timing• Cost definition• Time gaps in the execution of the work processes• Resource requirements changes over time within a WBS

element?• Prerequisites among internal deliverables• Objective criteria for measuring progress• Risks • Dependencies between deliverables• Aggregation of a portion of the work as a unit

Exercise 3

1. Build a WBS for the construction of a single family home. 1b. Assign WBS codes to the element

1c. Use the codes to estimate the overall project cost(use rough cost assumptions for each sub projects)

Solution

Total cost: Add up the cost of sub-elements

1 ACME Housing Corporation 1.1 New Home Construction

1.1.1 Concrete 1.1.1.1 Pour

Foundation1.1.1.2 Install Patio

1.1.1.3 Pour Stairway

1.1.2 Framing1.1.2.1 Frame

Exterior Walls1.1.2.2 Frame

Interior Walls1.1.2.3 Install

Roofing Trusses1.1.3 Plumbing

1.1.3.1 Install Water Lines

1.1.3.2 Install Gas Lines

1.1.3.3 Install B/K Fixtures

1.1.4 Electrical1.1.4.1 Install

Wiring1.1.4.2 Install

Outlets/Switches1.1.4.3 Install

Fixtures1.1.5 Interior

1.1.5.1 Install Drywall

1.1.5.2 Install Carpets

1.1.5.3 Install Painting

1.1.6 Roofing

1.1.6.1 Install Felt

1.1.6.2 Install Shingles

1.1.6.3 Install Vents

Organization Breakdown Structure (OBS)

CONCRETE

PERF DEPT 6010

M. Manning

MASONRY

PERF DEPT 6020

T. Greams

TEST

PERF DEPT 6030

K. Neumann

CIVIL

RESP DEPT

R. Kelly

CARPENTRY

PERF DEPT 5010

R. Sites

ROOFING

PERF DEPT 5020

Y. Taylor

DRYWALL

PERF DEPT 5030

D. Smith

STRUCTURAL

RESP DEPT

P. Tate

PERF DEPT 4010

S. Johnson

HOOKUP/TIE-INPERF DEPT 4020

P. Ottis

ELECTICAL

RESP DEPT

J. Sims

WATER/SEWER

PERF DEPT 3010

K. Wells

GAS

PERF DEPT 3020

R. Oriely

PLUMBING

RESP DEPT

R. Lee

PROJECT OFFICE

RESP DEPT

B. Smithers

WIRING

Responsibility Assignment Matrix

Performing Dept. Manager

Pour Foundation

1.1.1.1Install Patio

1.1.1.2

Pour Stairway 1.1.1.3

Frame Exterior Walls

1.1.2.1

Frame Interior Walls

1.1.2.2

Install Roofing Trusse 1.1.2.3

Install Water Lines

1.1.3.1

Install Gas Lines

1.1.3.2

Install B/K Fixtures 1.1.3.3

CONCRETE DEPT 6010 Manning 200 125 85MASONRY DEPT 6020 Greams 50TEST DEPT 6030 Neumann 20 10 5CARPENTRY DEPT 5010 Sites 300 250 175ROOFING DEPT 5020 Taylor 100DRYWALL DEPT 5030 Smith 275WIRING DEPT 4010 JohnsonHOOKUP/TIE-IN DEPT 4020 OttisWATER/SEWER DEPT 3010 Wells 100 15GAS DEPT 3020 Oriely 125 25

1.1.3PLUMBINGCONCRETE

1.1.1FRAMING

1.1.2

Duration - Estimation

• Similarity to other activities• Historical data• Expert advice• Mathematical models

Duration is a Cause of Variation

• Sources of variation:– Varying skill levels– Unexpected events– Efficiency of work time– Mistakes and misunderstandings

Relationships

• Network diagram

• Finish to start

• Predecessor Task: A

• Successor Task: B• Activity A Must Be Finished Before B Can Start

• Arrow head indicates dependency relationship: Task B cannot begin until Task A is complete

A B

Consider lag and lead time

D

E

F

G

FrameHVAC

Rough Electric

H

Sheet Rock

Exercise 3: Dependencies

1. Activity C and D both follow AActivity E follows CActivity F follows D Activity E and F precede B

2. Activity G and F precede HActivity G and D precede J Activity M and H precede LActivity F follows A Activity A and D start at the same timeActivity J and L finish at the same time Activity K and A precede L

construction of a single family home.

Building a house

Time ImmediateRequiredPredecessor

Activity Description (in days) ActivitiesA Excavate --B Lay foundation AC Rough plumbing BD Frame/walls BE Finish exterior DF Install HVAC DG Rough electric DH Sheet rock C, E, F, GI Install cabinets HJ Paint HK Final plumbing IL Final electric JM Install flooring K, L

NWDInstall

Cabinets

A B

C

D

E

F

G

H

I

J

K

L

M

Excavate

Lay Foundation

Rough Plumbing

Frame

Finish Exterior

HVAC

Rough Electric

Sheet Rock

Paint

Final Plumbing

Final Electric

InstallFlooring

Time ImmediateRequiredPredecessor

Activity Description (in days) ActivitiesA Excavate 3 --B Lay foundation 4 AC Rough plumbing 3 BD Frame 10 BE Finish exterior 8 DF Install HVAC 4 DG Rough electric 6 DH Sheet rock 8 C, E, F, GI Install cabinets 5 HJ Paint 5 HK Final plumbing 4 IL Final electric 2 JM Install flooring 4 K, L

CPM

• Most important chain of tasks in a project• The start of each task depends on the

completion of the previous task.• The tasks are carried out by a person or

a group.• If CPM is completed later as it was

scheduled the entire project completion will be delayed.

CPM in construction

• Sequence of construction operation• Predict construction completion time• Identification of critical activities• Project time reduction measures• Balanced scheduling of manpower• Progress report• Project evaluation

Milestones• Milestones are significant events on a project that normally have

zero duration• You can follow the SMART criteria in developing milestones that

are:– Specific– Measurable– Assignable– Realistic– Time-framed

CPM: Definition• CPM is a project network analysis technique used to predict total

project duration• A critical path for a project is the series of activities that determines

the earliest time by which the project can be completed• The critical path is the longest path through the network diagram

and has the least amount of slack or float

Finding CPM

• First develop a good project network diagram

• Add the durations for all activities on each path through the project network diagram

• The longest path is the critical path

CPM

• EST, LST, EET, LET• Critical path• Buffer time=LST-EST or LET-EET

PERT

• Programme• Establishing project baseline• Bottlenecks• Evaluating progress• Resource levelling

Project duration

Shortening project time

• Shorten durations of critical tasks by adding more resources or changing their scope

• Crashing tasks by obtaining the greatest amount of schedule compression for the least incremental cost

• Fast tracking tasks by doing them in parallel or overlapping them

  Activity Pred. Duration Cost Trade/Plant

N. Cr. N. Cr.

1 A Start 4 3 4 7 Excavator

2 B Start 5 3 7 10 Concrete Gang

3 C Start 6 4 3 6 Excavator

4 D Start 3 2 8 12  

5 E A 4 3 5 8 Concrete Gang

6 F B, D 2 1 6 10  

7 G C 4 3 9 14 Concrete Gang

8 H D 5 3 5 8  

9 I E 6 4 4 7 Excavator

10 J E 6 4 8 11  

11 K A, F 2 1 4 6 Concrete Gang

12 L J, K, G 4 3 6 9 Concrete Gang

13 M G, H 3 2 3 5 Excavator

Total 72 ?

A.4.EX

B.5.CG

C.6.EX

D.3

START

E.4.CG

F.2

G.4.CG

H.5

I.6.EX

J.6

K.2.CG L.4.CG

M.3.EX

END

0 4

0 5

0 3

0 6

4 8

5 7

3 8

6 10

8 14

8 14

7 9 14 18

10 13

18

14 18

15 18

12 18

8 14

12 14

10 14

10 15

4 8

10 12

0 4

7 10

4 10

5 10

  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

  A.EX A.EX A.EX A.EX E.CG E.CG E.CG E.CG J J J J J J L.CG L.CG L.CG L.CG

B.CG CG CG CG                              

C.EX         EX EX EX EX EX EX                

D                                    

F                                    

G.CG                 CG CG CG CG            

H                                    

I.EX                     EX EX EX EX EX EX    

K.CG                         CG CG        

M.EX                                 EX EX

Conf. 0 0 0   0 0 0 0 0 0 0 0 0 0 0 0 0 0

Cost

• Overall cost: £72k• Task B and M crashed: £5K• Overall cost: £77k

OverlappedTasks or fasttracking

Shortenedduration thrucrashing

Original schedule

Activity Preceding Duration Resources1 A Start 2 42 B A 1 2 23 C A 1 3 24 D A 1 5 35 E B 2 2 26 F B,C, D 2, 3, 4 4 37 G D 4 6 48 H E 5 4 29 I E, F 5,6 2 2

10 J F, G 6, 7 4 311 K H, I , J 8, 9, 10 2 2

A.2.4

B.2.2

C.3.2

D.5.3

START

E.2.2

F.4.3

G.6.4

H.4.2

I.2.2

J.4.3

K.2.2 END

0 2

2 4

2 5

2 7

4 6

7 11

7 13

6 10

11 13

13 17

17 19

17 19

13 17

15 17

13 1711 13

7 13

9 13

2 7

6 9

7 9

0 2

  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

  A4 A4 D3 D3 D3 D3 D3 G4 G4 G4 G4 G4 G4 J3 J3 J3 J3 K2 K2

B.2.2     B2 B2                              

C.3.2     C2 C2 C2                            

E.2.2         E2 E2                          

F.4.3               F3 F3 F3 F3                

H.4.2               H2 H2 H2 H2                

I.2.2                       I2 I2            

  4 4 7 7 7 5 3 9 9 9 9 6 6 3 3 3 3 2 2

  1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

  A4 A4 D3 D3 D3 D3 D3 G4 G4 G4 G4 G4 G4 J3 J3 J3 J3 K2 K2

B.2.2     B2 B2                              

C.3.2     C2 C2 C2                            

E.2.2           E2 E2                        

F.4.3               F3 F3 F3 F3                

H.4.2                       H2 H2 H2 H2        

I.2.2                               I2 I2    

  4 4 7 7 5 5 5 7 7 7 7 6 6 5 5 5 5 2 2

Task No. TaskPredecess

or Resources

Duration Cost in k£

Normal Crash Normal Crash

1 Start None None 0 days 0 day 0 0

2 A Start 4 workers 2 days 1 day 8 12

3 B Start 1 Excavator 5 days 3 days 25 30

4 C A 1 Concrete Gang 4 days 3 days 24 36

5 D A, B 1 Concrete Gang 3 days 2 days 20 26

6 E C, D 1 worker 3 days 2 days 3 4

7 F D 3 workers 6 days 4 days 18 25

8 G E 1 Joiner team 4 days 3 days 16 20

9 H F 4 worker 2 days 1 day 8 11

10 I F 1 Joiner team 3 days 2 days 4 6

11 End G, H, I Milestone 0 days 0 day 0 0

1 excavator, 1 concrete gang, 1 joiner team and 4 workers

£142K

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

B D F I

1EX 1CG 3L 1J

A2.4L 4L 4L

C.4.1.CG CG CG CG CG

E.3.1L L L L

G.4.1J J J J J

H2.4L 4L 4L

Gantt Chart• Visual scheduling tool• Graphical representation of information in WBS• Show dependencies between tasks, personnel,

and other resources allocations• Track progress towards completion

Building a Gantt Chart

• Dependencies: Show dependencies between activities with arrows– E.g., activity 2 cannot start until activity 1 is complete

Activity 1

Activity 2

Milestone

Time Frame: day 1 day 2 day3… day 23

9 ideas of project excellence pex• Project Management: What is the project like? How is it managed?• Project Results: What does the project achieve? What comes out of it?• Customer Satisfaction:

– customer = king, customer decides on quality perception– understand customer needs and wishes.

• Employees’ development and participation– The complete potential of employees can only be released in an

atmosphere of confidence and openness.• Partnership with suppliers: Confidence and cooperation• Leadership• Ethics and social responsibility• Processes and facts: Activities are conducted systematically as processes• Results: To obtain lasting outstanding results, the expectations and

demands of all parties involved have to be well-balanced.

Economic viability of energy projects

Cost estimation

1. Exergy cost Analysis Evaluation of the cost for each stream Internal cost/ not market cost

2. Parametric estimation Based on historical data Mathematical modelling of available key features

3. Factored Cost estimate/Bottom-up approach Work breakdown structure Allocation of costs to individual elements

4. Analogous system estimate/Top-down approach Case based approach/inferential cost estimation of the entire system Comparison and extrapolation Cost adaptation and optimisation Cost breakdown

5. Vendor quotes Costs are obtained from vendors.

6. Cost scaling Factors used to scale up/down costs

Factored cost estimation

• Costly: significant effort (time/money) required• Insight into major cost contributors.

• Relationships among cost elements

• Not responsive to "what if" requirements

• Possibility to forget important elements

),(1 1 111

ji

m

j

n

i

m

jij

k

llljj

n

iii prhqprbc

Investment costs + fixed engineering costs + Soft costs + variable engineering costs

• Based on actual historical data• Relies on extrapolation and expert judgement• Relies on single data point• Difficult to identify appropriate analogues• Quick way of estimation• Readily understood• Select adaptation method• Combined with Parametric and scaling methods • Complexity factors (CF)

• Assess the complexity of the new subsystem compared to that of the selected analogues

• Make a quantitative judgment for a value of the complexity factor

Analogous System Estimate

Cost scaling (CS)Cost scaling (CS)

YBYB

YAYA C

I

IC

•CYA = Cost in year A

•CYB = Cost in year B

•IYA = Cost index for year A

•IYB = Cost index for year B

B

S

B

AA CC

•CA = Cost at capacity A

•CB = Cost at capacity B

•A = Equipment or plant capacity A

•B = Equipment or plant capacity B

•S= Scaling factor

(Values can be found: Haselbarth, Galagher)

Building cost index

• Steel frame construction cost index• Concrete frame construction CI• Brick construction CI• Labour cost index• ENR (Engineering News Records)

Estimating Building costs: Calin M Popescu et al.

The time value of Money

• Devaluation impacts– Time changes the value

of money

• Inflation rate (external growth)– Cost of good increases

• Net present value– Discounted cash flow

niFP

1

1

ni

FP1

1

𝐼𝑛𝑐𝑜𝑚𝑒=(8760×𝑃𝑜𝑤𝑒𝑟×𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑓𝑎𝑐𝑡𝑜𝑟 ×𝐵𝐸𝑆𝑃 )+𝑀𝑖𝑠𝑐 .

𝐸𝑥𝑝𝑒𝑛𝑑𝑖𝑡𝑢𝑟𝑒𝑠=𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒𝑂∧𝑀+ 𝑓𝑖𝑥𝑒𝑑𝑂∧𝑀+𝑖𝑛𝑠𝑢𝑟𝑎𝑛𝑐𝑒+ 𝑓𝑢𝑒𝑙𝑐𝑜𝑠𝑡

Economic feasibility of an energy project

𝑇𝑜𝑡𝑎𝑙𝐷𝑖𝑟𝑒𝑐𝑡 𝑃𝑙𝑎𝑛𝑡𝑐𝑜𝑠𝑡=∑𝑖=1

𝑘

𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡𝐶𝑜𝑠𝑡+𝑖𝑛𝑠𝑡𝑎𝑙𝑙𝑎𝑡𝑖𝑜𝑛𝑐𝑜𝑠𝑡𝑠

𝐸𝑛𝑔𝑖𝑛𝑒𝑒𝑟𝑖𝑛𝑔𝑎𝑛𝑑𝑝𝑟𝑜𝑐𝑢𝑟𝑒𝑚𝑒𝑛𝑡 𝑐𝑜𝑠𝑡=𝑇𝐷𝑃𝐶+𝑖𝑛𝑑𝑖𝑟𝑒𝑐𝑡 𝑐𝑜𝑠𝑡𝑠

𝑇𝑜𝑡𝑎𝑙 𝑝𝑙𝑎𝑛𝑡𝑐𝑜𝑠𝑡=𝐸𝑃𝐶+𝑐𝑜𝑛𝑡𝑖𝑛𝑔𝑒𝑛𝑐𝑖𝑒𝑠+𝑂𝑤𝑛𝑒𝑟 ′ 𝑠𝑐𝑜𝑠𝑡𝑠