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 ...
Describe the nature of a project?    A project is a sequence of unique, complex, andconnected processes and activities hav...
Project inception• Projects don’t fall from sky, they are  created• Feasibility studies / Project evaluation• Planning• Co...
Steady state,HomoestasisSustainabilityEquilibrium
Failure often results from flawed   perceptions of what is involved insuccessfully managing complex system  development fr...
Source: Humor in Systems Analysis
Project limitations• Controllable:  – Specifications  – Deadlines  – Budget  – Skills  – Experience• Beyond our control:  ...
Why projects fail?• The goal of the project needs to be defined  clearly• Lack of change management  (changes to project a...
Why projects fail? Cont… Quality criteria is not defined or measured Lack of ownership - It is not clear who is  respons...
Tip-of-the Iceberg syndrome
Things you should know•   Define your project clearly•   Proper project planning in terms of process•   Responsibilities• ...
What is your project?
General project life cycle–   Problem perception–   Problem definition–   Ideas and suggestions–   Decision making process...
The project cycle                   ProblemEvaluation                       Identification  Implementation             For...
CLASSIFICATION OF PROJECTS                                              Small        Large        Aerospace/              ...
LIFE-CYCLE PHASE DEFINITIONSEngineering        Manufacturing   IT               ConstructionStart-up           Formation  ...
Project Plan•   Why?        •   Objectives•   What?       •   Products•   When?                •   Milestones•   Who?     ...
Project management strategy
Project responsibilities
Brief Generation Process• Initial phase  – Identifying user requirements/needs  – Setup working group (chair, responsibili...
Statement of needs• Activities and Functions   – Functions: Number of rooms, open areas, space requirements, heights,     ...
Functional Briefing (FB) Stage• Based on agreed statement of needs   – Translated into researched and comprehensive FB• FB...
Primary goal from entrepreneurial              point of view•   Maximize profits•   Minimize costs•   Competitiveness•   E...
Primary goal from functionality point               of view• System according to specification• High availability /reliabi...
Primary goal from social point of view                   (HDI approach)•   Improving standard of life•   Better health car...
Primary goals from environ. point of view                Requires long-term planning• Sustainability issues• Preservation ...
Heating options•   Low energy house / building•   Passive house•   Heat recovery•   Insulation•   Alternative ways of heat...
Project Authorisation• Project initiation• Project Feasibility analysis• The Project Business Case  – Created usually by t...
Project specific information• Project perception  – Problem identification, goals and objectives• Human resource Managemen...
Project specific information (cont.)• Project management approach  – Process: Project strategy (TD or BU), planning, best ...
Project specific information (cont.)• Project performance  – Benefits to customers, operators, people,  – Quantify benefit...
Understand your project through a            Mind MapsAddress the main project aspects in a diagram• Problem perception• P...
Civil and building engineering• Project management Process   Location, scale of work, environmental    impact, magnitude ...
Parties involved• Promoter/employer: finance and initiate the project• Contractors: Implementing the work, (invited to  te...
Engineers• Engineer + advisors: Supervisory role (works in  partnership with contractors)    Consulting engineer: Feasibi...
Further jobs• Quantity surveyor: Manages costs  relating to building, payment  applications• Office manager: Misc activiti...
Simplified ProcessInitiating                      Planning     Controlling             Executing                   Closing
R&D•   Phase 1: Proposal•   Phase 2: Analysis•   Phase 3: Design•   Phase 4: Development•   Phase 5: Implementation•   Pha...
Project planning• Historical Records – need to collect and use  for planning, estimating and risk• Meetings to consult on ...
Implementation• The application of knowledge, skills,  tools and techniques to project  activities• Meeting the expectatio...
Resources                       SuccessTime                               Costs(Schedule, Deadline)
Management–   Defining–   Planning–   Organising–   Staffing–   Executing–   Controlling–   Directing–   Completing–   Doc...
Human resource planning• Definition:  – “The process for ensuring that the HR    requirements of an organisation are    id...
Aims of HRP• Attract and retain the number of people required with  the appropriate skills, expertise and competencies• An...
Practice•   Resourcing strategy•   Scenario planning•   Estimating future requirements•   Labour turnover•   Action planning
‘HARD’ and ‘SOFT’ HRPHard HRP                             Soft HRP   – Quantitative analysis to            – Ensuring the ...
Soft HRP• Soft HRP is based on assessments of the requirement for these  qualities and measurements of the extent to which...
The HRP ProcessFour main categories of staff:•   Existing staff•   New recruits•   Potential staff•   Leavers
A small engineering firm employs 6 people: Louis (Lo), David (D), Walter (W), Tom(To), Pa: Patrick, Pe: Peter20 days to co...
1   2   3   4   5   6     7       8   9   10   11   12   13   14   15   16   17   18   19   20ABCDE                       ...
Accumulation of work    Louise        Tom        Walter        David       Patrick       Peter1            7          1   ...
Plan                                     restructured     1   2   3   4   5   6   7   8       9   10   11   12   13   14  ...
Exercise 2      Order           Operation                          Duration      1.              Excavate base            ...
Solution                       1   2   3   4   5   6   7   8   9   10   11   12   13   14   15Excavate BaseConcrete Blindi...
Solution                       1   2   3   4    5   6   7   8   9   10   11   12   13   14   15Excavate BaseConcrete Blind...
Solution                       1   2   3   4   5   6   7   8   9   10   11   12   13   14   15Excavate BaseConcrete Blindi...
WBS• Functional decomposition of a system• Breaks the project into chunks of work at a  level of detail that meets plannin...
http://www.successfulprojects.com/
WBS ≠ Organisational chart                                                                               BEST Management  ...
Preparing a WBS• Iterative consideration of the project’s  purpose• Functional/performance design criteria• Project scope,...
Assumptions   Aggregation of all subordinate works   Decomposition to the level of production   Each element => a singl...
Level of details•   Improving the accuracy of the estimation•   Defining a responsibility for each deliverable•   Number o...
Exercise 31. Build a WBS for the construction of a single family home.         1b. Assign WBS codes to the element        ...
SolutionTotal 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 Foundation          ...
Organization Breakdown                             Structure (OBS)                        PROJECT OFFICE                  ...
Responsibility Assignment Matrix                                         CONCRETE                            FRAMING      ...
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...
Relationships• Network diagram• Finish to start• Predecessor Task: A                       A        B• Successor Task: B• ...
Consider lag and lead time
Sheet                          Rock                           H                    EFrame   D                   HVAC      ...
Exercise 3: Dependencies1.   Activity C and D both follow A     Activity E follows C     Activity F follows D     Activity...
construction of asingle family home.
Building a house                                 Time    Immediate                               Required PredecessorActiv...
NWD                    Rough                           Install     Final                   Plumbing                       ...
Time    Immediate                              Required PredecessorActivity   Description        (in days) Activities   A ...
CPM• Most important chain of tasks in a project• The start of each task depends on the  completion of the previous task.• ...
CPM in construction•   Sequence of construction operation•   Predict construction completion time•   Identification of cri...
Milestones• Milestones are significant events on a project that normally have zero  duration• You can follow the SMART cri...
CPM: Definition• CPM is a project network analysis technique used to predict total project  duration• A critical path for ...
Finding CPM• First develop a good project network diagram• Add the durations for all activities on each  path through the ...
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 t...
Activity   Pred.      Duration            Cost          Trade/Plant                           N.      Cr.     N.          ...
4        8                       8           14                                             E.4.CG                        ...
1        2        3        4      5        6        7        8        9        10        11        12        13        14 ...
Cost• Overall cost: £72k• Task B and M crashed: £5K• Overall cost: £77k
Originalschedule Shortened duration thru crashingOverlappedTasks or fasttracking
Activity   Preceding                  Duration       Resources 1   A          Start                                 2     ...
2           4   4            6    6            10                        B.2.2            E.2.2             H.4.2         ...
1    2    3    4    5    6    7    8    9   10   11   12       13       14   15   16   17   18   19        A4   A4   D3   ...
1    2    3    4    5    6    7    8    9   10   11   12   13   14   15   16   17   18   19        A4   A4   D3   D3   D3 ...
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    ...
Gantt Chart• Visual scheduling tool• Graphical representation of information in WBS• Show dependencies between tasks, pers...
•   Dependencies: Show dependencies between activities with arrows     – E.g., activity 2 cannot start until activity 1 is...
9 ideas of project excellence pex• Project Management: What is the project like? How is it managed?• Project Results: What...
Economic viability of energy projects
Cost estimation1. Exergy cost Analysis               Evaluation of the cost for each stream               Internal cost/...
Factored cost estimation              n              m                 k              n   m  c b              i   ri      ...
Analogous System Estimate•   Based on actual historical data•   Relies on extrapolation and expert judgement•   Relies on ...
Cost scaling        (CS)                                    •CYA = Cost in year A                                    •CYB ...
Building cost index•   Steel frame construction cost index•   Concrete frame construction CI•   Brick construction CI•   L...
Estimating Building costs: Calin M Popescu et al.
The time value of Money• Devaluation impacts                      1   – Time changes the value       P   F         n     o...
Economic feasibility of an energy            project
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  • Most famous Goal Statement:“I believe this nation should commit itself to the goal of sending a man to the moon before the end of the decade, and returning him safely to Earth” John F Kennedy, 1961
  • Brief => Primary objectives
  • Project management

    1. 1. Project Management/Energy Management Dr Sina Rezvani
    2. 2. 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 principles What are project success metrics in Environmental Engineering Design / Energy Management ?
    3. 3. Describe the nature of a project? A project is a sequence of unique, complex, andconnected 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
    4. 4. Project inception• Projects don’t fall from sky, they are created• Feasibility studies / Project evaluation• Planning• Coordination of interrelated activities• Resource allocation
    5. 5. Steady state,HomoestasisSustainabilityEquilibrium
    6. 6. Failure often results from flawed perceptions of what is involved insuccessfully managing complex system development from inception through completion. Kevin Forsberg: Visualizing Project Management
    7. 7. Source: Humor in Systems Analysis
    8. 8. Project limitations• Controllable: – Specifications – Deadlines – Budget – Skills – Experience• Beyond our control: – Environmental – Political – Global
    9. 9. 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 planning A 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
    10. 10. Why projects fail? Cont… Quality criteria is not defined or measured Lack of ownership - It is not clear who is responsible for the project outcome The progress is not monitored and controlled properly. Lack of coordination of activities The project is not led properly The project reporting is inadequate or does not exist On time, on budget and as defined
    11. 11. Tip-of-the Iceberg syndrome
    12. 12. 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)
    13. 13. What is your project?
    14. 14. General project life cycle– Problem perception– Problem definition– Ideas and suggestions– Decision making process– Planning– Implementation– Validation– Feedback– Correction
    15. 15. The project cycle ProblemEvaluation Identification Implementation Formulation
    16. 16. CLASSIFICATION OF PROJECTS Small Large Aerospace/ In-house R&D Construct. Construct. Military MISInterpersonal skills Low Low High High HighOrganisational structure Low Low Low Low HighTime management difficulties Low Low High High HighNumber of meetings Excessive Low Excessive Excessive HighPMs supervisor Middle M. Top M. Top M. Top M. Middle M.Project Sponsor present Yes No Yes Yes YesConflict intensity Low Low High High HighCost control level Low Low High High Low
    17. 17. LIFE-CYCLE PHASE DEFINITIONSEngineering Manufacturing IT ConstructionStart-up Formation Conceptual Data gatheringDefinition Buildup Planning PlanningMain Production Definition Basic Eng.Termination Phase-out Design Major review Final Audit Implementation Detailed Eng. Conversion Construction Commissioning
    18. 18. Project Plan• Why? • Objectives• What? • Products• When? • Milestones• Who? • Responsibilities• How? • Approach• How Much? • Resources & Effort
    19. 19. Project management strategy
    20. 20. Project responsibilities
    21. 21. 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
    22. 22. 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,
    23. 23. 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
    24. 24. 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
    25. 25. 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
    26. 26. 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
    27. 27. Primary goals from environ. point of view Requires 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.)
    28. 28. Heating options• Low energy house / building• Passive house• Heat recovery• Insulation• Alternative ways of heating – Biomass – Geothermal – Solar
    29. 29. 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
    30. 30. 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
    31. 31. 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
    32. 32. 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
    33. 33. Understand your project through a Mind MapsAddress 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
    34. 34. Civil and building engineering• Project management Process Location, scale of work, environmental impact, magnitude of service Initial 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
    35. 35. 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.
    36. 36. Engineers• Engineer + advisors: Supervisory role (works in partnership with contractors)  Consulting engineer: Feasibility analysis  Section 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
    37. 37. Further jobs• Quantity surveyor: Manages costs relating to building, payment applications• Office manager: Misc activities• Site accountant: Transactions• Plant operators: Drivers, crane operators,
    38. 38. Simplified ProcessInitiating Planning Controlling Executing Closing
    39. 39. R&D• Phase 1: Proposal• Phase 2: Analysis• Phase 3: Design• Phase 4: Development• Phase 5: Implementation• Phase 6: Post-implementation
    40. 40. 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
    41. 41. 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
    42. 42. Resources SuccessTime Costs(Schedule, Deadline)
    43. 43. Management– Defining– Planning– Organising– Staffing– Executing– Controlling– Directing– Completing– Documentation– Feedback
    44. 44. 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.
    45. 45. 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.
    46. 46. Practice• Resourcing strategy• Scenario planning• Estimating future requirements• Labour turnover• Action planning
    47. 47. ‘HARD’ and ‘SOFT’ HRPHard HRP Soft HRP – Quantitative analysis to – Ensuring the availability ensure that the right number of people with the right and sort of people are type of attitudes and available when needed motivation who are committed to the organisation and engaged in their work and who behave accordingly
    48. 48. 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
    49. 49. The HRP ProcessFour main categories of staff:• Existing staff• New recruits• Potential staff• Leavers
    50. 50. A small engineering firm employs 6 people: Louis (Lo), David (D), Walter (W), Tom(To), Pa: Patrick, Pe: Peter20 days to complete 5 Jobs/OrdersDetermine whether a solution is possible.Use a bar chart format to demonstrate your answer JOB→ A B C D E↓ SEQUENCE 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 5 Pa - 3 The sequence cannot be altered
    51. 51. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20ABCDE Louis Tom Walter David Patrick Peter
    52. 52. Accumulation of work Louise Tom Walter David Patrick Peter1 7 1 2 0 0 02 1 7 6 2 0 03 4 4 5 0 6 04 4 0 0 4 0 35 0 0 0 0 3 0 16 12 13 6 9 3
    53. 53. Plan restructured 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20LoToWDPoPa A B C D E
    54. 54. 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 ½dayPrepare a plan in bar chart form for the construction of 3No. Columns.a. You have only the use of 1No. of each resourceb. Unlimited resources
    55. 55. Solution 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15Excavate BaseConcrete BlindingReinforce to BaseConcrete BaseReinforce to columnsFormwork to columnsConcrete ColumnStrike framework
    56. 56. Solution 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15Excavate BaseConcrete BlindingReinforce to BaseConcrete BaseReinforce to columnsFormwork to columnsConcrete ColumnStrike framework
    57. 57. Solution 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15Excavate BaseConcrete BlindingReinforce to BaseConcrete BaseReinforce to columnsFormwork to columnsConcrete ColumnStrike framework
    58. 58. 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
    59. 59. http://www.successfulprojects.com/
    60. 60. WBS ≠ Organisational chart BEST Management Books 1. Project Management - An Introduction 1.1 Writing Editing Publishing Text Book Text Book Text Book 1.1.1 1.1.2 1.1.3 Chapter 1 Chapter 2 Chapter 3 Editing Editing Editing 1.1.1.1 1.1.1.2 1.1.1.3 Chapter 1 Chapter 2 Chapter 3 1.1.2.1 1.1.2.2 1.1.2.3 Project Project Project Budget & Scheduling Project Auditing AdministrativeSelection Organization Planning Cost 1.1.1.2.2 Controls 1.1.1.3.1 Closeout1.1.1.1.1 1.1.1.1.2 1.1.1.1.3 1.1.1.2.1 1.1.1.2.3 1.1.1.3.2
    61. 61. 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
    62. 62. 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
    63. 63. 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
    64. 64. Exercise 31. 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)
    65. 65. SolutionTotal cost: Add up the cost of sub-elements
    66. 66. 1 ACME Housing Corporation 1.1 New Home Construction 1.1.1 Concrete 1.1.1.1 Pour Foundation 1.1.1.2 Install Patio 1.1.1.3 Pour Stairway 1.1.2 Framing 1.1.2.1 Frame Exterior Walls 1.1.2.2 Frame Interior Walls 1.1.2.3 Install Roofing Trusses 1.1.3 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 Electrical 1.1.4.1 Install Wiring 1.1.4.2 Install Outlets/Switches 1.1.4.3 Install Fixtures 1.1.5 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
    67. 67. Organization Breakdown Structure (OBS) PROJECT OFFICE RESP DEPT B. Smithers CIVIL STRUCTURAL ELECTICAL PLUMBINGRESP DEPT RESP DEPT RESP DEPT RESP DEPT R. Kelly P. Tate J. Sims R. Lee CONCRETE CARPENTRY WIRING WATER/SEWERPERF DEPT 6010 PERF DEPT 5010 PERF DEPT 4010 PERF DEPT 3010 M. Manning R. Sites S. Johnson K. Wells MASONRY ROOFING HOOKUP/TIE-IN GASPERF DEPT 6020 PERF DEPT 5020 PERF DEPT 4020 PERF DEPT 3020 T. Greams Y. Taylor P. Ottis R. Oriely TEST DRYWALLPERF DEPT 6030 PERF DEPT 5030 K. Neumann D. Smith
    68. 68. Responsibility Assignment Matrix CONCRETE FRAMING PLUMBING 1.1.1 1.1.2 1.1.3 Frame Frame Install Install Pour Pour Exterior Interior Roofing Water Install Gas Install B/K Foundation Install Patio Stairway Walls Walls Trusse Lines Lines Fixtures Performing Dept. Manager 1.1.1.1 1.1.1.2 1.1.1.3 1.1.2.1 1.1.2.2 1.1.2.3 1.1.3.1 1.1.3.2 1.1.3.3CONCRETEDEPT 6010 Manning 200 125 85MASONRYDEPT 6020 Greams 50TESTDEPT 6030 Neumann 20 10 5CARPENTRYDEPT 5010 Sites 300 250 175ROOFINGDEPT 5020 Taylor 100DRYWALLDEPT 5030 Smith 275WIRINGDEPT 4010 JohnsonHOOKUP/TIE-INDEPT 4020 OttisWATER/SEWERDEPT 3010 Wells 100 15GASDEPT 3020 Oriely 125 25
    69. 69. Duration - Estimation• Similarity to other activities• Historical data• Expert advice• Mathematical models
    70. 70. Duration is a Cause of Variation• Sources of variation: – Varying skill levels – Unexpected events – Efficiency of work time – Mistakes and misunderstandings
    71. 71. Relationships• Network diagram• Finish to start• Predecessor Task: A A B• 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
    72. 72. Consider lag and lead time
    73. 73. Sheet Rock H EFrame D HVAC F Rough G Electric
    74. 74. Exercise 3: Dependencies1. Activity C and D both follow A Activity E follows C Activity F follows D Activity E and F precede B2. Activity G and F precede H Activity G and D precede J Activity M and H precede L Activity F follows A Activity A and D start at the same time Activity J and L finish at the same time Activity K and A precede L
    75. 75. construction of asingle family home.
    76. 76. Building a house Time Immediate Required PredecessorActivity Description (in days) Activities A Excavate -- B Lay foundation A C Rough plumbing B D Frame/walls B E Finish exterior D F Install HVAC D G Rough electric D H Sheet rock C, E, F, G I Install cabinets H J Paint H K Final plumbing I L Final electric J M Install flooring K, L
    77. 77. NWD Rough Install Final Plumbing Cabinets Plumbing C I K SheetExcavate Rock Lay M A B Foundation Finish H Exterior E Install Flooring J L Frame D HVAC Paint Final Electric F Rough Electric G
    78. 78. Time Immediate Required PredecessorActivity Description (in days) Activities A Excavate 3 -- B Lay foundation 4 A C Rough plumbing 3 B D Frame 10 B E Finish exterior 8 D F Install HVAC 4 D G Rough electric 6 D H Sheet rock 8 C, E, F, G I Install cabinets 5 H J Paint 5 H K Final plumbing 4 I L Final electric 2 J M Install flooring 4 K, L
    79. 79. 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.
    80. 80. 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
    81. 81. 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
    82. 82. 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
    83. 83. 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
    84. 84. CPM• EST, LST, EET, LET• Critical path• Buffer time=LST-EST or LET-EET
    85. 85. PERT• Programme• Establishing project baseline• Bottlenecks• Evaluating progress• Resource levelling
    86. 86. Project duration
    87. 87. 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
    88. 88. Activity Pred. Duration Cost Trade/Plant N. Cr. N. Cr.1 A Start 4 3 4 7 Excavator2 B Start 5 3 7 10 Concrete Gang3 C Start 6 4 3 6 Excavator4 D Start 3 2 8 125 E A 4 3 5 8 Concrete Gang6 F B, D 2 1 6 107 G C 4 3 9 14 Concrete Gang8 H D 5 3 5 89 I E 6 4 4 7 Excavator10 J E 6 4 8 1111 K A, F 2 1 4 6 Concrete Gang12 L J, K, G 4 3 6 9 Concrete Gang13 M G, H 3 2 3 5 Excavator Total 72 ?
    89. 89. 4 8 8 14 E.4.CG I.6.EX 0 4 8 14 4 8 12 18 A.4.EX J.6 0 4 8 14 0 5 5 7 7 9 14 18 18 B.5.CG F.2 K.2.CG L.4.CG END 5 10 10 12 12 14 14 18START 0 3 3 8 10 13 D.3 H.5 M.3.EX 7 10 10 15 15 18 0 6 6 10 C.6.EX G.4.CG 4 10 10 14
    90. 90. 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.CGB.CG CG CG CGC.EX EX EX EX EX EX EXDFG.CG CG CG CG CGHI.EX EX EX EX EX EX EXK.CG CG CGM.EX EX EXConf. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
    91. 91. Cost• Overall cost: £72k• Task B and M crashed: £5K• Overall cost: £77k
    92. 92. Originalschedule Shortened duration thru crashingOverlappedTasks or fasttracking
    93. 93. Activity Preceding Duration Resources 1 A Start 2 4 2 B A 1 2 2 3 C A 1 3 2 4 D A 1 5 3 5 E B 2 2 2 6 F B,C, D 2, 3, 4 4 3 7 G D 4 6 4 8 H E 5 4 2 9 I E, F 5,6 2 210 J F, G 6, 7 4 311 K H, I , J 8, 9, 10 2 2
    94. 94. 2 4 4 6 6 10 B.2.2 E.2.2 H.4.2 7 9 11 13 13 17 0 2 2 5 7 11 11 13 17 19START A.2.4 C.3.2 F.4.3 I.2.2 K.2.2 END 0 2 6 9 9 13 15 17 17 19 2 7 7 13 13 17 D.5.3 G.6.4 J.4.3 2 7 7 13 13 17
    95. 95. 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 K2B.2.2 B2 B2C.3.2 C2 C2 C2E.2.2 E2 E2F.4.3 F3 F3 F3 F3H.4.2 H2 H2 H2 H2I.2.2 I2 I2 4 4 7 7 7 5 3 9 9 9 9 6 6 3 3 3 3 2 2
    96. 96. 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 K2B.2.2 B2 B2C.3.2 C2 C2 C2E.2.2 E2 E2F.4.3 F3 F3 F3 F3H.4.2 H2 H2 H2 H2I.2.2 I2 I2 4 4 7 7 5 5 5 7 7 7 7 6 6 5 5 5 5 2 2
    97. 97. 1 excavator, 1 concrete gang, 1 joiner team and 4 workers Duration Cost in k£ PredecessTask No. Task or Resources 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
    98. 98. £142K
    99. 99. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 B D F I 1EX 1CG 3L 1JA2.4L 4L 4LC.4.1.CG CG CG CG CGE.3.1L L L LG.4.1J J J J JH2.4L 4L 4L
    100. 100. Gantt Chart• Visual scheduling tool• Graphical representation of information in WBS• Show dependencies between tasks, personnel, and other resources allocations• Track progress towards completion
    101. 101. • 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 Building a Gantt Chart
    102. 102. 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.
    103. 103. Economic viability of energy projects
    104. 104. Cost estimation1. Exergy cost Analysis  Evaluation of the cost for each stream  Internal cost/ not market cost2. Parametric estimation  Based on historical data  Mathematical modelling of available key features3. Factored Cost estimate/Bottom-up approach  Work breakdown structure  Allocation of costs to individual elements4. Analogous system estimate/Top-down approach  Case based approach/inferential cost estimation of the entire system  Comparison and extrapolation  Cost adaptation and optimisation  Cost breakdown5. Vendor quotes  Costs are obtained from vendors.6. Cost scaling  Factors used to scale up/down costs
    105. 105. Factored cost estimation n m k n m c b i ri j pj l ql hij (ri , p j ) i 1 j 1 l 1 i 1j 1Investment costs + fixed engineering costs + Soft costs + variable engineering costs • 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
    106. 106. Analogous System Estimate• 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
    107. 107. Cost scaling (CS) •CYA = Cost in year A •CYB = Cost in year B •IYA = Cost index for year A I YA •IYB = Cost index for year B CYA CYB I YB S •C = Cost at capacity A A A •C = Cost at capacity BC A C B • A B = Equipment or plant capacity A B • B = Equipment or plant capacity B •S= Scaling factor (Values can be found: Haselbarth, Galagher)
    108. 108. Building cost index• Steel frame construction cost index• Concrete frame construction CI• Brick construction CI• Labour cost index• ENR (Engineering News Records)
    109. 109. Estimating Building costs: Calin M Popescu et al.
    110. 110. The time value of Money• Devaluation impacts 1 – Time changes the value P F n of money 1 i• Inflation rate (external growth) – Cost of good increases• Net present value 1 P F n – Discounted cash flow 1 i
    111. 111. Economic feasibility of an energy project

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