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Project Performance Management
AED:665
Lecturer
Anam Fatima
P.E. (Construction Management)
PhD Scholar-Architectural Engineering)
BSc. (Architectural Engineering),MS (Construction Engineering & Management)
Department of Architectural Engineering and Design
University of Engineering and Technology
Lahore
Terminology
Basic Terminology
 Project
 Subprojects
 Program
 Processes
 Project Management
Construction Management
Many definitions for
these words have been
proposed.
Sample definitions are
contained in the
following slides.
Project Characteristics
A Project…
 Has specific objectives
 Has a start and end date
 Has a budget
 Has an ‘owner’/’sponsor’
 Produces specific deliverables
 Can vary vastly in size, complexity and duration
 May be a phase within a larger project or a phase
within a program
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What is a Project? (Definition #1)
(Guide to the Project Management – Body of Knowledge,
the Project Management Institute, 3rd. Ed., 2004, p. 5)
TYPES OF PROJECT
• Mega Project
• Big Project
• Small Project
• Public Sector Project
• Private Sector Project
• Infrastructure Project
• Building Project
• Dam Project
• Health Project
• Power Sector Projects
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Some Basic Difference Between Privately Owned and Publicly Owned Projects
[Description Private Public
Purpose Provide goods and / or services at a profit;
maximize profit or minimize cost
Protect health, Protect lives and property; Provide
services (at no profit); Provide jobs
Sources of capital Private investors and lenders Taxation; Private lenders
Method of financing Individual ownership; Partnerships;
Corporation
Direct payment of taxes; Loans without interest;
Loans at low interest; Self-liquidating bonds; Indirect
subsidies; Guarantee of private loans
Multiple purpose Moderate Common (e.g. reservoir project for flood control,
electrical power generation, irrigation, recreation,
education)
Project life Usually relatively short (5 to 20 years) Usually relatively long (20 to 60 years)
Relationship of suppliers of
capital to project
Direct Indirect, or none
Nature of “benefits” Monetary or relatively easy to equate to
monetary terms
Often non-monetary, difficult to quantify, difficult to
equate to monetary terms
Beneficiaries of project Primarily, entity undertaking project General Public
Effect of politics Little to moderate Frequent factors; Short-term tenure groups; Financial
and residential restrictions, etc.
Measurement of efficiency Rate of return on capital Very difficult; No direct comparison with private
projects
Subprojects are smaller, more
manageable components of larger, more
complex projects
Subprojects have their own goals and
outputs or deliverables which together
constitute the final deliverable.
Subprojects have, analogous to the
main project in which they are
integrated, their own scope, schedules,
costs, human resources, risks etc.
Subprojects are comprised of project team members and are headed by
subproject managers who, similar to the project manager, must have
excellent decision-making, communication and other requisite skills, and
be in a position to manage the implementation of the subproject work
effectively and efficiently.
What are Subprojects?
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Subprojects
Example:TheBeijingOlympicGames2008
Events
Venues, Facilities
Accommodation
Transport
Media Facilities
and Coordination
Telecommunications
Security
Arrangements
Medical Care
Human Resources
and Volunteers
Cultural Olympiad
Pre-Games Training
IT-Projects
Opening and Closing
Ceremonies
Public Relations
Financing
Test Games and
Trial Events
Sponsorship
Management
The Beijing Olympic
Games 2008 was a highly
complex project which
comprised several
distinct work areas, each
of which could be con-
sidered as subprojects,
in their own right, and
which all had to be in-
tegrated and coordinated
within the framework of
the overall Olympic
project.
WhatisProjectManagement?
(Robert K. Wysocki / Robert Beck Jr. / David B. Crane, Effective Project
Management, 2. ed., John Wiley & Sons, 2002, p. 79).
What is Project Management?
• Project management is the application of knowledge, skills,
tools, and techniques to project activities in order to meet or
exceed stakeholder needs and expectations from a project
• Meeting stakeholder needs and expectations involves
balancing competing demands among:
• Scope, time, cost, and quality.
• Stakeholders with differing needs and expectations.
• Identified requirements (needs) and unidentified requirements
(expectations).
The Triple Constraint of Project
Management
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Managing triple constraint
1. Builds the dashboard you use for controlling the project.
2. Without this dashboard, you have no way of knowing where the
project is currently headed, how far off course it is, or what action to
take to get it back on course.
3. If you neglect this function, you and all project stakeholders are
subject to unhappy surprises.
4. Uncontrolled projects rarely reach their goal.
Manage the Triple Constraint
Scope
(Performance)
Cost
(Budget)
Time
(Schedule)
Client
Agreement
Advantages of Using Formal
Project Management
• Better control of financial, physical, and human
resources
• Improved customer relations
• Shorter development times
• Lower costs
• Higher quality and increased reliability
• Higher profit margins
• Improved productivity
• Better internal coordination
• Higher worker morale
DefiningProjectSuccess?
“Completion of a project within constrains of time, cost
and performance .”
Today project success definition has been modified and
includes project completion;
• Within time allocated time period
• Within budgeted cost
• At the proper performance or specification level
• Within client’s expectation and satisfaction
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Mega ProjectsPerformance
Mega Projects
0.7
1.2
1.6
2.0
2.6
2.7
3.0
3.6
8.6
9.8
1.2
2.2
13.9
3.3
7.3
5.7
4.5
6.8
31.0
18.7
- 5.0 10.0 15.0 20.0 25.0 30.0 35.0
Construction of Parliament Lodges at Islamabad
Development of Sector 1-16 Islamabad
Chashma Right Bank Irrigation Projects
On-FarmWater Management Project
Additional 415 MW Combined Cycle Pow er Unit at Guddu.
3 x 30 MW EB.C.Lakhra
Balochistan Primary Education Project
Bulk Water Supply from Khanpur Dam to Islamabad/Raw alpindi.
Left Bank Outfall Drain (LBOD) Stage-1
Third KV Jamshoro-Multan Second 500 KV Multan-Lahore Gilgit Transmission Line
Rs (Billions)
Revised
Approved
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Project Performance
Measurement ??????
Expectations Observations
Assessments
Consequences
The ProjectManagementBody of Knowledge
The Project Management Institute’s Body of
Knowledge – PMBOK – is perhaps the most
widely acknowledged and popular project
management standard in existence. It is the
basis for the PMI’s coveted PMP certification
examinations.
Presently in its forth version (2008), PMBOK
offers a comprehensive and sophisticated best
practices and process-based standard which
can be applied to different categories of
projects. At the heart of the PMBOK are the
nine areas of knowledge and five process
groups which find application over the project
life-cycle.
The10 PMBOKAreas& 5 Process
Groups
Integration Management
Scope Management
Time Management
Cost Management
Quality Management
Human Resource Management
Communication Management
Risk Management
Procurement Management
Project
Management
Knowledge
Areas
(PMBOK)
Initiation
Planning
Implementation
Monitoring, Evaluation
& Control
Closure
P
R
O
C
E
S
S
E
S
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2
Stakeholder Management
TheFive ProjectProcessGroups
Initiation
Planning
Implementation
Monitoring, Evaluation
& Control
Closure
Defines and authorizes the project (or a
phase of the project).
Refines the project goal, scope,
requirements etc. and develops the project
master plan.
Brings together all required resources to
undertake the project in accordance with
the master plan.
Formalizes acceptance of the project
output by the project customer and brings
the project to its end.
Monitors the project to identify and assess
shortfalls and variances and initiate
corrective action if needed.
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PMBOKArea:IntegrationManagement
Project Integration Management includes the
processes which are needed to identify,
define, combine, unify and coordinate the
various project management processes in the
project process groups ( processes include
develop the project charter, develop project
management plan, direct and manage project
execution, monitor and control project work,
perform integrated change control & close
project or phase).
Integration is crucial for project completion,
meeting stakeholder expectations and needs,
making choices where to concentrate
resources over time, dealing with issues and
coordinating project activities.
PMBOKArea:ScopeManagement
Project Scope Management includes the
processes required to ensure that the
project includes all – and only the – work
needed for its successful completion. In
other words, scope management asks what
is included in the project.
Completion of the project scope is
measured against the project management
plan where the requirements and
specifications of the project output are
given.
Processes covered under Project Scope
Management are Collect Requirements,
Define Scope, Create WBS, Verify Scope &
Control Scope.
PMBOKArea:TimeManagement
Project Time Management
includes the processes required
to ensure the completion of the
project within the time-frame
which has been allocated for it.
Processes covered under
Project Time Management are
Define Activities, Sequence
Activities, Estimate activity
Resources, Estimate Activity
Durations, Develop Schedule &
Control Schedule .
PMBOKArea:CostManagement
Project Cost Management
includes the processes which
are required to plan, manage
and control costs so that the
project can be completed
within the budget allocated
for it.
Processes covered under
project Cost Management are
Estimate Costs, Determine
Budget, Control Costs.
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PMBOKArea:QualityManagement
Project Quality Management includes the
processes for ensuring that the project
satisfies the needs and requirements for
which it was undertaken in the first place.
Project Quality Management addresses both
the project output (goal-focus) as well as the
management of the project (process-focus). It
recognizes the importance of customer
satisfaction, prevention over inspection,
management responsibility and continuous
improvement.
Processes covered under Project Quality
Management are plan quality, perform quality
assurance, and perform quality control.
PMBOKArea:HumanResource
Management
Project Human Resource Management
includes the processes needed to
organize and manage the project team.
Human resources are considered an
organization’s “most important asset” and
the same applies to projects.
Processes covered under Project Human
Resource Management are develop
human resource plan, acquire project
team, develop project team & manage
project team.
PMBOKArea:CommunicationsManagement
Project Communications Management
includes the processes needed to ensure
timely and appropriate generation, collection,
dissemination, storage, and ultimate
disposition of project information.
Considered the “life-blood” of a project,
communication is often a challenging
undertaking and difficulties in (or a total
breakdown of) communication can severely
impede a project.
Processes covered under Project
Communication Management are identify
stakeholders, plan communications,
distribute information, manage stakeholder
expectations & report performance.
PMBOKArea:RiskManagement
Project Risk Management includes the
processes needed to manage the risks
on the project with a view to reducing the
likelihood of a negative impact on
attainment of the project goal, the project
cost and time, and the project
stakeholders.
Processes covered under Project Risk
Management are plan risk management,
identify risks, perform qualitative risk
analysis, perform quantitative risk
analysis, plan risk responses & monitor
and control risks.
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PMBOKArea:Procurement
Management
Project Procurement Management includes
the processes for acquiring or purchasing the
materials, products, goods and services which
are needed to perform the project work.
Project Procurement Management includes
the contract management and change control
processes required to administer contracts or
purchase orders issued by the project team.
Processes covered under Project Procurement
Management are plan procurements, Conduct
procurements, administer procurements &
close procurement .
TheProjectLife-Cycle
Initiation
Planning
Implementation
Closure
Monitoring,
Evaluation
&
Control
Overviewof ProjectInitiation
 Awareness of the need for change (situation, context) and
recognition by stakeholders that only a project can bring about the desired
change
 Consideration of project options
 Collection of basic information to perform a preliminary project feasibility
assessment and determine possible project costs and outcomes (positive
and negative)
 Preparation of a formal project proposal for consideration by the project
sponsors
 Undertake a detailed project feasibility study if required
 Decide whether project should be pursued, put on-hold for a future time or
rejected
 Make contracts with key stakeholders, issue project charter and assign
resources for the project
 Move the project into the (detailed) planning phase
PHASE
I:
Project
Initiation
&
Definition
Limitationsof the ProjectInitiation
Phase
In the project initiation phase, a typical and serious
limitation is the lack of availability of “quality
information” which exists about the project – especially
for complex projects and projects of a kind which have
not been attempted before.
At initiation a project’s feasibility, outcomes, scope,
requirements and specifications, cost, time and risks,
stakeholders, resource needs etc. are often not known
with a high degree of precision with the result that the
project may take longer, cost more and generally be
more difficult to do than first thought when it was
considered and accepted.
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ProjectPlanning
Project Planning reduces
uncertainty and increases
understanding of the project
as well as boosting efficiency
in the way it is being carried
out.
Many project failures are
attributed to mistakes and
shortcomings which
occurred in the project’s
planning phase.
Project plan:
• A project plan, according to the Project Management Body of
Knowledge, is: "...a formal, approved document used to guide
both project execution andproject control. The primary uses of
the project plan are to document planning assumptions and
decisions, facilitate communication among stakeholders, and
document approved scope, cost, and schedule baselines. A
project plan may be summarized or detailed."[1]
• PRINCE2 defines:
• "...a statement of how and when a project's objectives are to be
achieved, by showing the major products, milestones, activities
and resources required on the project."
ProjectPlanning:A Sentenceto
Remember
ProjectPlanning
Project Scope Plan
Project Communication Plan
Project Cost Plan
Project Time Plan
Project Quality Plan
Project Risk Plan
Project Human Resource Plan
Project ProcurementPlan
Project Integration Plan
PMI Standard
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ProjectImplementation
Project Implementation (or
Execution) follows up on the
phases of project planning and
initiation.
Project Implementation
integrates human resources
and other project resource
inputs (financial, physical,
informational etc.) to carry out
the project management plan
which is the main deliverable of
project planning phase.
ProjectClosure/ Termination
The closure or termination of a project marks the final phase
of the project’s life-cycle:
Natural Closure / Orderly Termination – The project ends
after its goal has been met and it has been performed
(ideally) within schedule, within budget and according to the
prescribed technical performance standards (project success).
Unnatural Closure / Premature Termination – The project
ends prematurely because it has not accomplishing its goal
due to one or more reasons (project failure).
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Ethics& ProjectImplementation
In its 71-page study Building
Towers, Cheating Workers the
US-based Human Rights
Watch has documented
numerous cases of
maltreatment and abuses of
project construction workers in
the United Arab Emirates.
The issue of maltreatment of
project construction wor-kers
in the United Arab Emirates
has also been independantly
investigated and substantiated
by other organizations and
individuals.
ProcessGroupOverlappingRelationship
Initiation Planning Implementation Closure
Monitoring, Evaluation & Control
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ProcessGroupOverlappingRelationship ClassAssignment1-A
Write down few lines on PPM in regard of PM.
-How these are related????
Download any construction project and write
down importance of PPM on that on a half page
review.
ClassAssignment1-B
Construct a Project Sample project performance
measurement plan
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