2. 2
WHAT IS PROJECT MANAGEMENT
Project management is the application of processes,
methods, knowledge, skills and experience to achieve the
project objectives.
Project management is the application of knowledge, skills
and techniques to execute projects effectively and efficiently.
It’s a strategic competency for organizations, enabling them
to tie project results to business goals
3. 3
CONSTRUCTION INDUSTRY
Man has indulged in some form of construction activities from dawn of
civilization
Even during ancient times man created architectural marvels like Egypt
Pyramid, Great Wall of china, Angorwat temples and so on.
In present world, technical break through have revolutionized
construction industry.
Modern constructions include high rise buildings, dams, irrigation
networks, power plants, Industrial plants, infrastructure facilities like
like roads, bridges, railways, airports and seaports etc.
Market of construction business is both domestic as well global
4. 4
CONSTRUCTION- DOMESTIC MARKET
Construction is everlasting activity across the globe
Industry is profitable like any other business and fluctuates according to the
law of demand and supply
Construction activities constitutes 6-9% of GDP (gross domestic product)
More than half of fixed capital formation as infrastructure and public utilities
capital works
Construction activities contributes to the economic growth of the country
Growth rate of construction outstrips that of population and GDP
Construction generates more employment than any other sector
5. 5
CONSTRUCTION- INTERNATIONAL MARKET
During 80’s middle east accounted for over 1/3 of global construction
market
Asia and Africa held only 20% of global construction market
Developed countries like USA, German, Russia have dominated in
construction of power and process plants which requires high degree
of sophisticated technology.
Developing countries like south korea and India have concentrated
more on the repetitive and routine types of construction works.
6. 6
CONSTRUCTION- PARTICIPANTS /
STAKEHOLDERS
Construction Business Promoters – Govt./Public/Private
Project / Construction management consultant firms
Architect – Engineering associates
Construction manpower and training agencies
Construction Materials developing, manufacturing, trading firms
Construction Plant and Machineries
Banking and Finance Institutions
Risk Insurances and Legal services companies
Construction quality assurance, research and development companies
Contractors and Contracting firms
8. 8
CONSTRUCTION PROJECTS
Major construction works are time bound and employ huge resources
of men, material and machineries and money.
They involve heavy investments and require high level of technology
and need an effective management of resources
Construction project refers to high value, time bound, special
construction mission with pre-determined performance objectives.
9. 9
CONSTRUCTION PROJECTS – ROLE OF PM
Project Manager aims to achieve the project mission by
Managing Time and Progress
Cost and Cash flow
Quality and Performance
Organization behavior
Organization resources
Planning resources
Scheduling resources
Organizing resources
Directing resources
Monitoring resources
Controlling resources
Time / Cost / Quality/ Environment constraints
With
By
Within
10. 10
PROJECT CATEGORIES
Building Construction – building business serves mankind by providing shelter,
services for habitation etc. like residential, commercial, educational, hospital,
hotel and recreational buildings. Designed by architects / engineers
Infrastructure Construction – Capital intensive and heavy equipment oriented
works which requires large quantities of materials like earth, steel and concrete
like dams, canals, highways, airports, railways and bridges etc.
Designed by specialist engineering firms financed by govt./public
sector
Industrial Construction – construction of manufacturing, processing and
industrial plants like steel mills, petro refineries, factories etc.
Special purpose projects – Environmental works, Emergencies, remedial works
and complex key operations
Project classifications –
• Long , Medium, Short and special short term projects
• Mega, Large, Medium and small value projects
11. 11
PROJECT OBJECTIVES
6 Factors determines the outcome of the project
1. Size of project - number of tasks to be executed / quantities of work
2. Complexity of project – variety in the nature of task
3. Quality – accomplishing the task with standard specifications
4. Productivity - Planned effort for production / actual effort employed per unit
5. Completion time – speed with which the project to be executed
6. Cost – Expenditure which client has agreed
12. PROJECT OBJECTIVES
If there is no repetition of task with unique quality and cost -12 units
If there is repetition of 4 task then earliest completion time -6 units
Increase in the repetition of similar tasks will increase the resource
productivity. Experience gained due to repetition will reduce the overall cost.
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13. 13
PROJECT OBJECTIVES
In project pre-determined productivity standard, specified completion
time and construction cost become the project objectives
Planning and controlling the project objectives of time, cost and
setting up of resource productivity standards to achieve the objectives
are the functions of project management
The planning and controlling methodology employed
“ Project Management Techniques ”
is called
15. CTQs
Agree Schedule/Base Specs
15
Project initiation/ set
up process plan
Design Development/ Value
Engg
Tendering
Bid Award
Project Plan
Coordination
QS Control
Communication
Scheduling
Commssn’g
De-snagging
Occupation
Stage 1
Pre-design / Strategy
Client Brief/ Preplanning / overall scoping
Commercial Closure
Project
Team
Stage 2
Pre-construction
Stage 4
Post Const
EHS/compliances
Stage 3
Construction
PROJECT LIFECYCLE
16. • Preparation of Project Brief
• Project Budget
• Appointment of Consultants
• Project Procedures
• Project Planning Strategy
• Master Schedule
• Value Engineering
• Design Review
• Design Process Mgmt.
• Document Control Imp.
• Project Cost Plan
• Pre-Construction Cost Mgmt.
• Interface with Authorities
• Contract Documentation
• Constructability Review
• Value Engineering
• Schedule Management
• Pre-Construction Works
• Document Review
• Procurement Strategy
• Pre-Qualification
• Bid Documentation
Process
• Bid Process
• Contract Award
• Contract Documentation
• Start-up Management
• Construction Scheduling
• Value Engineering
• Site Organization
• Construction Management
• Value Engineering
• Submittal Process
• Site Logistics
• Construction Cost Mgmt
• Quality Assurance
• Performance Measurement
• Correspondence Documentation• Billing Administration
• Change Order Management
• Claims Management
• Punch-Listing
• Commissioning Management
• Closeout Training Programs
• O&M Manuals and “As Built”
Drawings Collations
• Financial close out
• Admin close out
Pre-Design Design Construction Close-out
Tendering &
Procurement
B
U
I
L
D
I
N
G
&
INFRASTRUCTURE
PROCESS
• Preparation of Process Brief
• Appointment of Consultants
• Project Planning Strategy
• Master Schedule
• P&ID Review
• Process design Coordination
• Pre-Construction Works
• Bid Process Assistance
• Documentation Support
• Process Equipment Logistics
• Process Implementation Mangt.
• Coordination & Integration with
construction infrastructures
• Integration, fine tuning, Problem
Solving, Infrastructure support
• Commissioning Management
Stage 1 Stage 2
Performance Baseline
Stage 4 Stage 5
Efforts of Core
Team
Stage 3
Cumulative Cash
Flow
Cost Performance
baseline
Expected cash
flow
Process Life
Project Life
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