Project planning

1. MIT OpenCourseWare
http://ocw.mit.edu
1.040 Project Management
Spring 2009
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2. 1.040/1.401
1.040/1.401
Project Management
Project Management
Spring 2009
Spring 2009
Course Introduction
Course Introduction
Fred Moavenzadeh
Department of Civil and Environmental Engineering
Department of Civil and Environmental Engineering
Massachusetts Institute of Technology
Massachusetts Institute of Technology

3. Outline
Outline
¾
¾ Introduction
Introduction
ƒ
ƒ Course Information
Course Information
ƒ
ƒ Lecture Outline
Lecture Outline
ƒ
ƒ T.A.
T.A.
ƒ
ƒ Students; Background, Interests, &
Students; Background, Interests, &
Expectations
Expectations

4. Project Management
Project Management
„
„ Focus of Class
Focus of Class –
– Construction Projects;
Construction Projects;
Primarily Infrastructure Projects
Primarily Infrastructure Projects

5. Topics
Topics
„
„ The Course is divided in three parts:
The Course is divided in three parts:
„
„ Part 1: Project Finance
Part 1: Project Finance
„
„ Part 2: Project Evaluation
Part 2: Project Evaluation
„
„ Part 3: Project Organization
Part 3: Project Organization
„
„ There will be a few Guest Lecturers
There will be a few Guest Lecturers

6. Term Project (1.401)
Term Project (1.401)
„
„ Step 1: Preliminary Project Proposals
Step 1: Preliminary Project Proposals
„
„ Step 2: Project Details
Step 2: Project Details
„
„ Step 3: Deliverables
Step 3: Deliverables
„
„ Report
Report
„
„ Presentation
Presentation

7. DESIGN CLOSEOUT
DEVELOP-
MENT
DIVESTMENT
OPERATIONS
Construction Phases
Construction Phases
& Class Topics
& Class Topics
FEASIBILITY
ANALYSIS
PROJECT
MANAGEMENT

8. Construction Phases
„ Strategic Planning, or conceptualization The need for a project is
identified, so that specific Objectives are achieved Alternative
projects (including the do-nothing option) are examined
„ System Design The approach for addressing the organization’s
strategic concerns is established during systems design The
requirements are translated into specific technical specifications
„ Detailed Design is the phase in which the optimal systems design
is translated into a detailed technical implementation scheme
„ Development refers to the implementation of the detailed design
„ Operations and Lifecycle Support represents the period during
which the project yields benefits to the organization
„ Divestment The initial design again determines the potential for
proper divestment in the context of the sociopolitical and natural
environment

9. Feasibility Studies and Preliminaries
Feasibility Studies and Preliminaries
„
„ Understanding project finance and evaluation
Understanding project finance and evaluation
„
„ Helps understand economic challenges faced by owner
Helps understand economic challenges faced by owner
and contractor
and contractor
„
„ Risk management
Risk management
„
„ Deciding on fundamentals of contract
Deciding on fundamentals of contract
„
„ Delivery systems (organizational method)
Delivery systems (organizational method)
„
„ Contract type (how pay?)
Contract type (how pay?)
„
„ Award method (how decide who hired?)
Award method (how decide who hired?)

10. DESIGN CLOSEOUT
DEVELOP-
MENT
DIVESTMENT
OPERATIONS
FEASIBILITY
ANALYSIS
PROJECT
MANAGEMENT
Construction Phases
Construction Phases

11. Design Phase
Design Phase
„
„ Estimation
Estimation
„
„ Successive estimates produced
Successive estimates produced
„
„ Planning & Scheduling
Planning & Scheduling
„
„ WBS
WBS –
– Web Based Scheduling
Web Based Scheduling
„
„ Deterministic & probabilistic scheduling
Deterministic & probabilistic scheduling
„
„ Resource planning
Resource planning
„
„ Simulation
Simulation

12. Project Dynamics
Project Dynamics
„
„ As
As-
-planned vs. as
planned vs. as-
-built (e.g., errors and changes)
built (e.g., errors and changes)
„
„ Significance of feedbacks
Significance of feedbacks -
- Counter
Counter-
-intuitive effects of
intuitive effects of
policies (e.g., overtime)
policies (e.g., overtime)

13. DESIGN CLOSEOUT
DEVELOP-
MENT
DIVESTMENT
OPERATIONS
FEASIBILITY
ANALYSIS
PROJECT
MANAGEMENT
Construction Phases
Construction Phases

14. Project Management
Project Management
1. The phases of
1. The phases of
-
- Development
Development
-
- Close Out
Close Out
Resource Scheduling
Simulation
Basics of Project Monitoring and Control
Changes and Claims
Earned Value Analysis
Quality Reviews and Audits

15. Project Management
Project Management
1. The phases of
1. The phases of
-
- Development
Development
-
- Close Out
Close Out
Resource Scheduling
Simulation
Basics of Project Monitoring and Control
Changes and Claims
Earned Value Analysis
Quality Reviews and Audits
Resource Scheduling
- How to allocate resources ($, time, etc.) to execute a given task efficiently
-Trade offs between conflicting/competing resources
Tools: graphical analyses, programming (linear, integer, heuristic, etc.)

16. Project Management
Project Management
1. The phases of
1. The phases of
-
- Development
Development
-
- Close Out
Close Out
Resource Scheduling
Simulation
Basics of Project Monitoring and Control
Changes and Claims
Earned Value Analysis
Quality Reviews and Audits
Simulation
- Involves mathematical description/representation of the management process
- Helps identify optimal schedules and decisions
- Helps to quickly determine impact of alternative schedules
-Tools: algorithms implemented on computers

17. Project Management
Project Management
1. The phases of
1. The phases of
-
- Development
Development
-
- Close Out
Close Out
Resource Scheduling
Simulation
Project Monitoring and Control
Changes and Claims
Earned Value Analysis
Quality Reviews and Audits
Project Monitoring and Control
-How to track your project costs, schedule (time), and other resources
- Helps ascertain whether targets are being met
- Needed so that due changes can be made to schedule as and when necessary

18. Project Management
Project Management
1. The phases of
1. The phases of
-
- Development
Development
-
- Close Out
Close Out
Resource Scheduling
Simulation
Basics of Project Monitoring and Control
Changes and Claims
Earned Value Analysis
Quality Reviews and Audits
Changes and Claims
-What are the causes of time delays, cost overruns, change orders?
- How can such problems be prevented or mitigated
- Conflict resolution

19. Project Management
Project Management
1. The phases of
1. The phases of
-
- Development
Development
-
- Close Out
Close Out
Resource Scheduling
Simulation
Basics of Project Monitoring and Control
Changes and Claims
Earned Value Analysis
Quality Reviews and Audits
Earned Value Analysis
-is a snapshot in time (as the project is in progress)
- compares work plan vs. actual work progress
- is a standard method of (a) measuring project progress at any given point in time,
(b) updating forecasts of completion date and final cost,
- Is an early warning system to detect deficient or endangered progress.

20. Project Management
Project Management
1. The phases of
1. The phases of
-
- Development
Development
-
- Close Out
Close Out
Resource Scheduling
Simulation
Basics of Project Monitoring and Control
Changes and Claims
Earned Value Analysis
Quality Reviews and Audits
Quality Reviews and Audits
-Quality Control (typically done by owner’s inspectors at the end of major production phases.
- Quality Assurance (typically done by contractor throughout the production, incl. raw materials
- Audits and QA/QC Reviews (retrospective in nature)

21. Project Management
Project Management
1. The phases of
1. The phases of
-
- Development
Development
-
- Close Out
Close Out
2. Related Topics
2. Related Topics
-
- Risk and Uncertainty, etc.
Risk and Uncertainty, etc.