Chapter 5- Project mgt.pptx

Chapter 5
Construction Project
Management body of
knowledge

Construction Project Management body of
knowledge
Project process management
Project scope management
Project quality management
Project stake holder management
Project communication management
Risk and Uncertainty management
2

• Project management is the application of knowledge, skills,
tools, and techniques to project activities to meet the project
requirements.
• This application of knowledge requires the effective
management of the project processes.
• A process is a set of interrelated actions and activities
performed to create a pre-specified product, service, or
result.
•Each process is characterized by its inputs, the tools and
techniques that can be applied, and the resulting outputs.
3
5.1 Project Process Management

•Project Life Cycle
• A project life cycle is the series of phases that a project passes
through from its initiation to its closure.
• The phases are generally sequential, and their names and numbers
are determined by the management, the nature of the project itself,
and its area of application.
• Phases are generally time bounded, with a start and ending or
control point.
4

•Project Life Cycle…
•The project life cycle can be determined or shaped by the
unique aspects of the organization, industry, or technology
employed.
•The life cycle provides the basic framework for managing
the project, regardless of the specific work involved.
5

•Project Life Cycle…
6
Generic Project
Life Cycle
Structure

• Some literatures presented project life cycle into four to five
phases with nearly similar functions under their classification.
Project Mgmt Organized by: Belachew Asteray (PhD) 7
5.1 Project Process Management…
Items Project Management Processes Authors
1 Identify a need, Develop a proposed Solution, Perform the Project, and
Terminate the project
Gido & Clements, 1999
2 Initiating, Planning, Executing, Controlling, and Closing PMIBoK, 2000
3 Feasibility or Conceptual, Definition, Execution and Close out Laufer, 1995
4 Conceptualization, Planning, Execution and Termination Meredith & Mantel, 2000
5 Early or Front - End Assessment, Implementation Knut Samset, 2001
6 Concept (Conceive), Planning (Design, Plan and Allocate), Execute,
Termination (Deliver, Review and Support).
Chapman & Ward, 1997:
Eight stages
7 Planning, Appraisal and Design; Selection, Approval & Activation;
Operation, Control and Hand over; and Evaluation and Refinement.
Goodman, 1984: 11 stages

• Construction Management Process System
• The construction process is defined as all processes which guides
towards the planned construction works.
• This means that the construction process as a concept covers sub
processes having different characteristics.
• These sub processes can be grouped under three major
classifications: Core processes, Administrative processes and Public
regulatory processes. These processes are termed Project
Processes.
8

Project Management Process Vs Life Cycle
9
Core
Processes
Concept
Definition
Concept
Development
Design of buildings,
Roads, etc & Physical
construction works
Maintenance
Period and
Defect Remedies
Administrative
Processes
Concept Evaluation
Project Approval
Budget Allocation
Monitoring,
Procurement and Other
Processes
Acceptance /
Hand Over
Public
Regulatory
Processes
Right-of-way (if necessary)
and
Regulatory Permits
Tender award
and
Changes and Variation
Final Approval
and
User Permit
Project
Closing
Project
Implementation
Project
Definition
Project
Development
Project cycle
Project cycle
Project process

10
Modified Project Management Process (Source: Wubishet, 2004)
Project Completion
Project Implementation
Project Definition
Project Formulation
& Basic Planning
Project
Design
Project
Construction
Project-Product
Transfer
Administrative Monitoring & Planning
Contract Administration
C
O
R
E
S
U
P
P
O
R
T

•The Project management process includes two separate
elements.
11
• The first includes two processes which
were meant for one of the elements that
PMBoK used to define a project.
• A project is temporary and hence has a
definite beginning and a definite end.
(Initiating and closing)
• The second one is built upon the bases of
the three well known traditional
management functions.
• Planning,
• Executing and
• Controlling.
• At the same time these processes are
made cyclic depending on the degree of
uniqueness.

 Scope: thesumoftheproducts,services,andresultstobe providedbyaproject
E.g.buildingforresidential,school,factory,forservice lifeof‘x’years
 Scope management–theprocess of identifying anddoing onlytheworksthatarenecessary
tocompleteaproject successfully. Avoidsdoing unapproved extrawork(scope creep)and
unnecessaryworks including“gold plating”,i.e., doingextra seeking for good name and/or
hiddenagenda
 Forcontractors scopehas to consider the whole activities: thedeliverables and the enablers
14
ConstructionProjectScope
5.2 Project Scope Management

 Approach inplanning Scope
 Creating(WorkBreakdownStructure(WBS):break the worksinto desired lowerlevels.
It isdividing thegeneral scope into type and hierarchy of 3 to 5 levels
 The hierarchical breaking down of the works may be done based on size,complexity,
proximity or/and phase of completion required by the specific contract
 WBS mayincludedividing the project work into areas, sectors or tasks, groups or a
combination of these whichmayfurther be divided into sub-project,functions (tasks),
work packages,activities and operations or processes
15
Planning ConstructionProjectScope

🞑 Source are Documents and Site investigation
 Document Study
 Using project’s plans (drawings), BoQs, specifications, contract conditions; relevant codes,
legal & regulatory documents;social, businessand natural environments; material sources.
 Site Investigation
 Identifying local inputs , utility lines, safety and health issues; site office location, social
(culture) and environmental factors; statusof work site (right-of-way)
 Competency required: Knowledge of the work, prior practice on similar work, experience in
decomposing works with respect to resource allocation, quality and cost control and discipline/desire
 The project manager (project lead team) needs to knowthe full picture of the worksincluding the
environment where it is to be implemented
16

 WBS preparation benefits
🞑 WBS helps not to miss work items of the scope and to:
Identify risks and address themproperly
Keep stakeholders informed and hence get their cooperation
Get commitment and focus of teams involved
Ensure better control
Control the impact of desired changes (control for scope creep and gold
plating)

RulesinperformingWBS
T
eam participation and systematic approach to splitting
Only the work required to make the project deliverable are the focus
Function or TASK group
1
EW
EXCAVN
LAYOUT EXCAVATION LEVE
LING
FILL CARTAWAY
MASONRY CONCR
E
TE
FWK R
E
-BAR CONCR
E
T
E
FINISHES E
L
E
C & SANT
Level -1
Level -2
L-3
Sample outcome of WBS

• In the project context, the term scope can refer to:
• Product scope: The features and functions that characterize a
product, service, or result
• Project scope: The work performed to deliver a product, service,
or result with the specified features and functions.
• Project Scope Management includes the processes required to
ensure that the project includes all the work required to complete
the project successfully.
• Managing the project scope is primarily concerned with defining
and controlling what is and is not included in the project.
17
Project Scope Management from PMBOK

• Project Scope Management processes include the following:
1. Plan Scope Management: The process of creating a scope
management plan documents how the project scope will be defined,
validated, and controlled.
2. Collect Requirements: The process of determining, documenting, and
managing stakeholder needs and requirements to meet project
objectives.
3. Define Scope: The process of developing a detailed description of the
project and product.
4. Create work breakdown structure (WBS): The process of
subdividing project deliverables and project work into smaller, more
manageable components.
5. Validate Scope: The process of formalizing acceptance of the
completed project deliverables.
6. Control Scope: The process of monitoring the status of the project and
product scope and managing changes to the scope baseline.
18

1. Plan Scope Management
• The key benefit of this process is that it provides guidance and
direction on how scope will be managed throughout the project.
19

2. Collect Requirements
• The key benefit of this process is that it provides the basis
for defining and managing the project scope including
product scope.
20

3. Define Scope
• The key benefit of this process is that it describes the product,
service, or result boundaries by defining which of the requirements
collected will be included in and excluded from the project scope.
21

4. Create Work Breakdown Structure (WBS)
• The key benefit of this process is that it provides a structured vision
of what has to be delivered.
• The WBS is a hierarchical decomposition of the total scope of work
to be carried out by the project team to accomplish the project
objectives and create the required deliverables.
22

5. Validate Scope
• The key benefit of this process is that it brings objectivity to the
acceptance process and increases the chance of final product,
service, or result acceptance by validating each deliverable.
23

6. Control Scope
• The key benefit of this process is that it allows the scope baseline to
be maintained throughout the project.
24

 Quality: isdefined asfitness for purpose specified by a designer/customer.
 May include desires for safety, functionality, aesthetics, reliability,
durability/service life, maintainability of a product .
 Quality system refers to established organized routines and procedures which
comprise elements set as standard.
 Quality System Pillars: quality assurance (used to verify) &/or which may be
set by the management, customer regulatory body; and quality control used to
identify and eliminate non-conformance
21
5.3 Project Quality Management

 Quality Assurance: is the application of planned, systematic, quality activities to
ensurethat theproject will employall processesneededto meetrequirement
 It is part of quality management focused on providing confidence that quality
requirementswill be fulfilled’ ISO9000
 The aim is to prevent defects focus on the process used to make the product.
It is a proactive quality process
 Improve development and test processes so that defect do not arise
 Preventive process
22

 Quality Control
 Control is concerned with comparing the work results with the
requirement to ensure that the result is acceptable
 Partofqualitymanagementfocusedonfulfillingquality requirements’ISO
 Performing QC involves monitoring specific project resultsto determine
the cause of unsatisfactory results
 QCObjective:to ascertain thestandard of a product that can meet the
requirement of the customer are produced
 Identifydefectsafteraproductisdevelopedandbeforeitisreleased
 Itisreactivequalityprocess,finds/detectdefectsaftertesting
 Correctiveprocess
23

 Inspection:
 Determining the acceptability of an output/product of a process at a
givenstage.
 It includes measuring, examining or testing and comparing whether the
resultsconformtotherelevant requirements.
 PlanningInspectionincludes:wheretoinspect,what resourcestouseand
extentofinspectionaredetermined.
 Hence,itisapplyingtoolsandtechniquesfortheworks andmanagement
objectivestoidentifylevelofconformity
24

29
Construction Quality Control
Who
Quality
Control
(QC)
Usually the contractor (or a third party) is responsible for
performing Quality Control (QC) making sure that the standards are
meet for production
Quality
Assurance
(QA)
 Usually the government or outside third party is responsible for performing
Quality Assurance (QA).
 QA is spot checking of contract compliance, test results, and ultimately
making sure that the quality control process is working
 A government organizations/clients or any executing agencies will have very
clear guidance on what is required per contract as far as the QA/QC is
concerned.
 Policy and Guidelines
 Standards and Specifications
 Rules and Regulations
 Terms and conditions of the contract

•Quality Management is an important project management
function.
•It is one of the critical attributes of project success, with
the others being cost, time and safety.
•Quality Management involves :
• Setting Quality Standards to achieve both technical and
managerial competence,
• Scheduling inspections,
• Managing any required rework,
• Documentation.
30
Construction Quality management from PMBOK

The basic approach to project quality management is intended to
be compatible with International Organization for Standardization
(ISO) quality standards.
In the context of achieving ISO compatibility, modern quality
management approaches seek to minimize variation and to
deliver results that meet defined requirements.
Project Quality Management processes include:
1. Plan Quality Management
2. Perform Quality Assurance
3. Control Quality
31

1. Plan Quality Management
• Plan Quality Management is the process of
•identifying quality requirements and/or standards for
the project and its deliverables, and
•documenting how the project will demonstrate
compliance with relevant quality requirements and/or
standards.
• The key benefit of this process is that it provides guidance
and direction on how quality will be managed and
validated throughout the project.
32

1. Plan Quality Management…
33

2. Perform Quality Assurance
• It is the process of auditing the quality requirements and the
results from quality control measurements to ensure that
appropriate quality standards and operational definitions are used.
• The key benefit of this process is that it facilitates the
improvement of quality processes.
Project Mgmt Organized by: Belachew Asteray (PhD) 34

3. Control Quality
•Control Quality is the process of monitoring and
recording results of executing the quality activities to
assess performance and recommend necessary changes.
•The key benefits of this process include:
(1) identifying the causes of poor process or product quality
and recommending and/or taking action to eliminate them; and
(2) validating that project deliverables and work meet the
requirements specified by key stakeholders necessary for
final acceptance.
35

•Stakeholders can be defined as either individuals or units
or organization itself for which they claim a stake in the
project such that they get benefit from or affected by the
whole processes of the project and its deliverables.
37
5.4 Project Stakeholder Management

Who are stakeholders of CI?
Project stakeholders or participants or parties:
• Are individuals and organizations who are actively involved in
project execution or successful project completion.
• Are those who have stakes or vested interest in construction
project
• Are those who has a telling effect on a project
38
5.4 Project Stakeholder Management…

The practice of planning, designing, constructing, and operating a facility is a collective
effort of different groups of professionals.
Depending on the size, complexity, and purpose of a particular construction project, the
project team may include:
• A Client or an Owner or Employer: Individuals, government, real estate developers etc.
• Financial institutions or other investors that provide the funding
• Local planning and code authorities
39

• Consultants or Licensed architects and engineers who provide design work and prepare
construction documents
• Contractors who provide construction services and install systems
• Marketing or leasing agents
• Facility managers who are responsible for operating the facility.
40

41
Stakeholder Ecosystem

42
Employer(s)
Financier(s)
Contractor(s)
Consultant(s)
Regulatory Bodies
Stakeholders'
in Public
Construction
Projects
The Construction
Industry
Project Organization(s)
Government(s)
Supplier(s)
Sub-contractor(s)
Sub-Consultant(s)
The Public
Financial Institutions
Other Interest Groups
Beneficiary(s)
Other sectors
Internal Stakeholders External Stakeholders
Stakeholders in Public Construction Projects

A. Client
• The client is the initiator and owner of the project.
• It is the most important party who is active from inception to completion
and event to post-occupancy maintenance.
43
Idea
Land
client
Capital

• Clients may be classified as Public sector clients and private sector clients.
• Public sector clients
 Central Government Offices (Ministries)
 Local Authorities (Regional or Town)
 Public Corporations
• Private sector clients
 These are private individuals & private companies
44

B. Consultant
• The consultant transfers the wish of the owner into realizable form and
makes the study, design and possibly the supervision.
• The main role of the consultant is to interpret the client’s project
requirement into a specific design.
C. Contractor
• The contractor is the one who performs the work
• These are groups established mainly as commercial companies, that contract
to construct development projects.
45

D. Public Sector Agencies
• Statutory Authorities
• _These bodies offer technical advice during design and construction in their respective
areas.
• E.g. ERA, EWWC, Fire Authority - requires meeting their specific requirements. Thus
early information to these authorities is required.
• Municipalities and Government Authorities
• These bodies offer the basic Land permit and building permit.
46

E. Insurance Companies: Contractors are required to provide bid bonds as a
condition of being allowed to bid, and then they must provide insurance too.
F. Banks: Banks provide the working capital contractors need to build the
project.
G. Suppliers: The quality of a construction project is very dependent on the
quality of the suppliers used by individual contractors.
H. Trade (labor) unions: are unions of the working class that look after unfair
treatment of workers (like payment issues, firing issues) as well as issues
related to occupational health and safety.
47

• The activities and roles of each player varies from project to project and
ownership.
• But, in general, the following figure shows the roles of each participant at
different stages of construction.
48
General Activity relationships among the Client, Consultant &
the contractor

49

• Project Stakeholder Management includes the processes required
• to identify the people, groups, or organizations that could impact or
be impacted by the project,
• to analyze stakeholder expectations and their impact on the project,
and
• to develop appropriate management strategies for effectively
engaging stakeholders in project decisions and execution.
• Stakeholder management focuses on continuous communication
with stakeholders to understand their needs and expectations,
addressing issues as they occur, managing conflicting interests and
fostering appropriate stakeholder engagement in project decisions
and activities.
50

•Stakeholder satisfaction should be managed as a key project
objective.
•Every project will have stakeholders who are impacted by
or can impact the project in a positive or negative way.
•The ability of the project manager to correctly identify and
manage these stakeholders in an appropriate manner can
mean the difference between success and failure.
51

•While some stakeholders may have a limited ability
to influence the project, others may have
significant influence on the project and its expected
outcomes.
•Project Stakeholder Management processes include :
1. Identify Stakeholder
2. Plan Stakeholder
3. Manage Stakeholder
4. Control Stakeholder
52

1. Identify Stakeholders
• Identify Stakeholders is the process of identifying the people, groups, or
organizations that could impact or be impacted by a decision, activity, or
outcome of the project, analyzing and documenting relevant information
regarding their interests, involvement, interdependencies, influence, and
potential impact on project success.
• The key benefit of this process is that it allows the project manager to
identify the appropriate focus for each stakeholder or group of stakeholders.
53

2. Plan Stakeholder Management
• Plan Stakeholder Management is the process of developing
appropriate management strategies to effectively engage
stakeholders throughout the project life cycle, based on the analysis
of their needs, interests, and potential impact on project success.
• The key benefit of this process is that it provides a clear, actionable plan to
interact with project stakeholders to support the project’s interests.
54

3. Manage Stakeholder Engagement
• It is the process of communicating and working with
stakeholders
•to meet their needs/expectations,
•address issues as they occur, and
•foster appropriate stakeholder engagement in project
activities throughout the project life cycle.
• The key benefit of this process is that it allows the project
manager to increase support and minimize resistance
from stakeholders, significantly increasing the chances to
achieve project success
55

56
Managing Project Stakeholders

4. Control Stakeholder Engagement
• It is the process of monitoring overall project stakeholder relationships and
adjusting strategies and plans for engaging stakeholders.
• The key benefit of this process is that it will maintain or increase the
efficiency and effectiveness of stakeholder engagement activities as the
project evolves and its environment changes.
57

• Project Communications Management includes the processes
that are required to ensure timely and appropriate
planning, collection, creation, distribution, storage, retrieval,
management, control, monitoring, and the ultimate
disposition of project information.
• Project managers spend most of their time communicating
with team members and other project stakeholders,
whether they are internal (at all organizational levels) or
external to the organization.
58
5.5 Project Communications Management

•The communication activities involved in these processes
may often have many potential dimensions that need to be
considered, including, but not limited to:
• Internal (within the project) and external (customer, vendors,
other projects, organizations, the public);
• Formal (reports, minutes, briefings) and informal (emails,
memos, discussions);
• Vertical (up and down the organization) and horizontal (with
peers);
• Official (newsletters, annual report) and unofficial (off the
record communications); and
• Written and oral, and verbal (voice inflections) and nonverbal
(body language).
59
5.5 Project Communications Management…

• Most communication skills are common for both general
management and project management, such as, but not limited to:
• Listening actively and effectively;
• Questioning and probing ideas and situations to ensure better understanding;
• Educating to increase team’s knowledge so that they can be more effective;
• Fact-finding to identify or confirm information;
• Setting and managing expectations;
• Persuading a person, a team, or an organization to perform an action;
• Motivating to provide encouragement or reassurance;
• Coaching to improve performance and achieve desired results;
• Negotiating to achieve mutually acceptable agreements between parties;
• Resolving conflict to prevent disruptive impacts; and
• Summarizing, recapping, and identifying the next steps.
60

•Effective communication creates a bridge between diverse
stakeholders who may have different cultural and
organizational backgrounds, different levels of expertise,
and different perspectives and interests, which impact or
have an influence upon the project execution or outcome.
•Project Communications Management processes include:
1. Plan Communications
2. Manage Communications
3. Control Communications
61

1. Plan Communications Management
• It is the process of developing an appropriate approach and plan for
project communications based on stakeholder’s information needs and
requirements, and available organizational assets.
• The key benefit of this process is that it identifies and documents the
approach to communicate most effectively and efficiently with
stakeholders.
62

2. Manage Communications
• It is the process of creating, collecting, distributing, storing,
retrieving, and the ultimate disposition of project information
in accordance to the communications management plan.
• The key benefit of this process is that it enables an efficient and
effective communications flow between project stakeholders.
63

3. Control Communications
• Control Communications is the process of monitoring and controlling
communications throughout the entire project life cycle to ensure the
information needs of the project stakeholders are met.
• The key benefit of this process is that it ensures an optimal information
flow among all communication participants, at any moment in time.
64

 Risk: possibility of meeting danger or suffering, harm, loss
 Uncertainty inherent in plans and the possibility of something
happening that can affect the prospects of achieving project goals
 Unlike the usual dictionary definition of “risk” which refers only to
undesirable events interpretation of risk include both downside and
upside variations in the values involved
2
5.6 Risk and Uncertainty Management

 Planning for Project Risk Management
🞑Planning risk involves paying attention when we don’t want project fail. Aside “acts of
God” most projects fail due to:
 Actually impossible—lies outside of technical capability available at the time
 Over constrained— possible but unrealistic time and resource
 Not competently managed –have the time and resourcesbut poorly managed . This
can succeed through giving adequate attention to project and risk planning
4
Planning Risk Management

Planning for Project Risk Management
🞑 Overall project planning process is essential since without this it is not possible to
know what may go right or wrong and manage proactively.
 Planninghelpsto discoverpossiblefailure areas and modes.
 At project level other activities may take priority than planning for risk; but without
planning there can be little risk management
5

7
Hazard
Should not be ignored
Risk management Too
high to be covered
with contingency
Not serious
Trivial
Not serious
Expect
Impact
Probability
Low High
Low
High
Realisticand honest estimate results from the parties’ trust and cooperation

8
Step1: Analyze the project to identify sourcesof
risks
Step 2: RiskAssessment(qualitative & Quantitative)
•Probability
•Severity
•controllability
Step 4: R
esponse Control
•Risk R
esponse Control
•Implement strategy
•Monitor and Adjust
•Apply change management
Step 3: R
esponse development
•Develop strategy
•Develop contingency plan manage
Response
developm
ent plan
Known
risks
RiskAssess
ment
Response
control

9
 Performing Quantitative Analysis of the Risks
🞑ProbabilityAnalysis: take the highranking risksfrom the qualitative analysis and
quantify their probabilities using
 Past data analysis using statistical distribution methods(objective)
 Delphi method: gathering opinions of individuals secretly till their subjective
estimations approaches to single figure
 Expert group discussion (this is also subjective)
 Require continuous probability distribution suchasnormal or triangular

10
🞑Prepare Response Plan to the Risks
The options of managing risks are to treat the Cause or Effect of a risk event
 Avoid
 Sharing
 Transferring to subcontractor, supplier, insurance
 Retain : risks that can’t be shared or transferred has to be owned. Better ability of
control isprevention, lesser cost, ability to manage external risks
 Mitigation (minimizing impact or occurrence)

•Uncertainties and Changes in undertaking a public
construction project come from many sources and often
involve many participants and resources.
•The perceptions and attitude of practitioners towards
uncertainties and changes matters a lot in effective
performance determinations.
72
Uncertainty and Risk Management from PMBOK

•Project Risk Management processes include:
1. Plan Risk Management
2. Identify Risks
3. Perform Qualitative Risk Analysis
4. Perform Quantitative Risk Analysis
5. Plan Risk Responses
6. Control Risks
73

1. Plan Risk Management
•Plan Risk Management is the process of defining how to
conduct risk management activities for a project.
•The key benefit of this process is it ensures that the
degree, type, and visibility of risk management are
commensurate with both the risks and the importance
of the project to the organization.
•The risk management plan is vital to communicate with
and obtain agreement and support from all stakeholders
to ensure the risk management process is supported and
performed effectively over the project life cycle.
74

2. Identify Risks
• Identify Risks is the process of determining which risks may
affect the project and documenting their characteristics.
• The key benefit of this process is the documentation of existing risks and the
knowledge and ability it provides to the project team to anticipate events.
75

3. Perform Qualitative Risk Analysis
• Perform Qualitative Risk Analysis is the process of prioritizing risks for
further analysis or action by assessing and combining their probability
of occurrence and impact.
• The key benefit of this process is that it enables project managers to reduce
the level of uncertainty and to focus on high-priority risks.
76

4. Perform Quantitative Risk Analysis
• Perform Quantitative Risk Analysis is the process of numerically analyzing
the effect of identified risks on overall project objectives.
• The key benefit of this process is that it produces quantitative risk
information to support decision making in order to reduce project
uncertainty.
77

5. Plan Risk Responses
• Plan Risk Responses is the process of developing options and actions to
enhance opportunities and to reduce threats to project objectives.
• The key benefit of this process is that it addresses the risks by their
priority, inserting resources and activities into the budget, schedule and
project management plan as needed.
78

6. Control Risks
• Control Risks is the process of implementing risk response plans,
tracking identified risks, monitoring residual risks, identifying new
risks, and evaluating risk process effectiveness throughout the project.
• The key benefit of this process is that it improves efficiency of the risk
approach throughout the project life cycle to continuously optimize risk
responses.
79

Chapter 5- Project mgt.pptx

More Related Content

What's hot

Similar to Chapter 5- Project mgt.pptx

Recently uploaded

Chapter 5- Project mgt.pptx