This presentation is exactly per the title, an overview of project management. The presentation is generic but the examples are from engineering/construction projects. In the presentation we cover topics like difference between projects and operations, project owner and service provider, product life cycle and project life cycle.

1. Overview of project management in the engineering & construction environment
Project Management

2. The main topics
Overview of Project Management in Engineering & Construction Environment 2
Setting the scene - Definitions
Project management methodology
Life cycles – various perspectives
Project management functions and processes
Project success
Case Studies

3. Setting the Scene
Overview of Project Management in Engineering & Construction Environment 3

4. Operations and Projects
Overview of Project Management in Engineering & Construction Environment 4
Business-as-usual
Business change

5. Another View
Overview of Project Management in Engineering & Construction Environment 5
From PMI Publication

6. Project Owner vs. Service Provider
Overview of Project Management in Engineering & Construction Environment 6

7. Careers Perspective
Overview of Project Management in Engineering & Construction Environment 7
Something to think about: where do you see
yourself?

8. What is a project? (PMBOK® Guide)
Overview of Project Management in Engineering & Construction Environment 8
“A project is a temporary endeavor
undertaken to create a unique product,
service, or results”
The focus here is on the output for a project
Material from the PMBOK® Guide has been
reproduced with the permission of PMI

9. What is a project? (SUKAD)
Overview of Project Management in Engineering & Construction Environment 9
We add to the PMI definition:
A project is anything we create from scratch or a
major change to an existing system,
That requires (major) effort in terms of planning
and delivery, and
It creates value to the organization, realizing the
benefits expected when authorizing the project

10. Definition: Project Management
Overview of Project Management in Engineering & Construction Environment 10
“Project management is the application of
knowledge, skills, tools, and techniques to
project activities to meet project requirements”
PMBOK® Guide, Chapter 1

11. Project Management
Methodology
Overview of Project Management in Engineering & Construction Environment 11

12. Product Life Cycle
Overview of Project Management in Engineering & Construction Environment 12

13. Project Life Cycle
Overview of Project Management in Engineering & Construction Environment 13
Project
If this box represents a project?
Then, a project life cycle represents how to
transform an idea (concept, vision, goal) into
reality, producing benefits!
Idea
Closure

14. Phases and Stages
Overview of Project Management in Engineering & Construction Environment 14
Project Life Cycle
Phase 1 Phase 3Phase 2
Stage
1
Stage
2
Stage 3 Stage 4 Stage 5 Stage 6 Stage 7 Stage 8

15. Deliverables and Gates
Overview of Project Management in Engineering & Construction Environment 15
A Deliverable is the output of a given stage
A Gate is stage/phase Exit: decision point

16. The
Overview of Project Management in Engineering & Construction Environment 16

17. Customized: Construction Project
Overview of Project Management in Engineering & Construction Environment 17

18. Service Provider Perspective
Overview of Project Management in Engineering & Construction Environment 18

19. Project Management
Functions and Processes
Overview of Project Management in Engineering & Construction Environment 19

20. A process
Overview of Project Management in Engineering & Construction Environment 20
A process is a series of actions (using tools and
techniques) to bring about a result
Input is what we need before we start …
Output is what we get when done
To achieve output, we use tools and follow certain
techniques
Tools and
Techniques
Input Output

21. P-D-C-A
Overview of Project Management in Engineering & Construction Environment 21

22. P-D-C-A – 2
Overview of Project Management in Engineering & Construction Environment 22

23. PM process groups within a phase
Overview of Project Management in Engineering & Construction Environment 23
PMBOK Guide

24. The knowledge areas
Overview of Project Management in Engineering & Construction Environment 24
Integration
Scope
Time
Cost
Quality
HR
Communication
Risk
Procurement
Stakeholders

25. Process groups repeating along PLC
Overview of Project Management in Engineering & Construction Environment 25

26. PMBOK® Guide versus CAM2P™
Overview of Project Management in Engineering & Construction Environment 26

27. Small & simple projects
Overview of Project Management in Engineering & Construction Environment 27
Use the standard
model; and
modify as
necessary
Or, the modified
process groups

28. Medium & moderate projects
Overview of Project Management in Engineering & Construction Environment 28

29. Large & complex projects
Overview of Project Management in Engineering & Construction Environment 29

30. Overview of Planning and Control
Overview of Project Management in Engineering & Construction Environment 30

31. WBS: a critical initial step
Overview of Project Management in Engineering & Construction Environment 31
WBS
Q/SHE
Time
(Schedule)
Cost
(CBS)
People
(RBS)
Commu
nication
Risk
(RBS)
Procure
rement

32. Trip
France
Paris
Tour Eiffel Louvre
Arc de
Triumph
Nice
Italy
Rome
Coliseum
Venice
Spain
Another sample WBS: trip project
Overview of Project Management in Engineering & Construction Environment 32

33. Project Success
Overview of Project Management in Engineering & Construction Environment 33

34. SUKAD four dimensions of success
Overview of Project Management in Engineering & Construction Environment 34

35. This first dimension focus on the product of the project.
We measure success at the time of handover and final acceptance.
We measure it in comparison to project plan (design, specifications, standards, etc.)
The first dimension
Overview of Project Management in Engineering & Construction Environment 35
Close
(COR)
Initial
Ops
Idea
Concept/
Feasibility
Project
Definition
(Detailed Plan)
Project
Plan
Handover
Charter
Accept.
PM
PlanningPMPlan
1 2 3 4
Implementation
5 6
D1: Success of the Product

36. This second dimension focus on project management.
We measure at the time project close out.
We measure it in comparison to the project management plan (time, cost, etc.)
The second dimension
Overview of Project Management in Engineering & Construction Environment 36
D2: Success of Project Management
Close (COR)
Initial
Ops
Idea
Concept/
Feasibility
Project
Definition
(Detailed Plan)
Project
Plan
Handover
Charter
Accept.
PM
Planning
PMPlan
1 2 3 4
Implementation
5 6

37. The third dimension
Overview of Project Management in Engineering & Construction Environment 37
D3: Success of Project
Close (COR)
Initial
Ops
Idea
Concept/
Feasibility
Project
Definition
(Detailed Plan)
Project
Plan
Handover
Charter
Accept.
PM
Planning
PMPlan
1 2 3 4
Implementation
5 6
This third dimension focus on project delivery.
We might be able to measure at acceptance but often not possible until later.
We measure it in comparison to the project authorization (charter).

38. This fourth dimension focus on the project business case and objectives.
Most likely we cannot measure this at acceptance
We can only measure after completion; possibly months or years later.
We measure it in comparison to the Idea Statement (Business Case/Feasibility).
The fourth dimension
Overview of Project Management in Engineering & Construction Environment 38
Close (COR)
Initial
Ops
Idea
Concept/
Feasibility
Project
Definition
(Detailed Plan)
ProjectPlan
Handover
Charter
Accept.
PM
PlanningPMPlan
1 2 3 4
Implementation
5 6
D4: Success of The Idea – Business Objective

39. Case Studies
Overview of Project Management in Engineering & Construction Environment 39

40. Case Study: Project Success
Overview of Project Management in Engineering & Construction Environment 40
Pipe and valve vendors
Wanted to build a gym in warehouse facility
What would you do if you are the PM?
Most PM will build a gym
So if we build the gym, per specification, can
say we have achieved success?
How about completion per time and cost
parameters, is this success?

41. Case study, continued
Overview of Project Management in Engineering & Construction Environment 41
We asked the question: “Why are we building
a gym?”
The answer is: “We are building a gym to
improve employees health”
Is the project different? If yes – how?
Would you do anything different in term of
deliverables of the project?
From project success perspective, would that
make a difference to how to deliver project?

42. Case Study 2: “Building” Project
Overview of Project Management in Engineering & Construction Environment 42
Project was to build a certain “building”
Project completed
Significantly over budget (x10),
6 years later than planned
Is this project successful?
What could help us decide?

43. Case Study 2, continued
Overview of Project Management in Engineering & Construction Environment 43
How about this:
“The ----- is a great architectural work of the 20th
century that brings together multiple strands of
creativity and innovation in both architectural form
and structural design.”
“Outstanding Universal Value “ ----- is positioned as a
world-famous icon of architecture. The building is a
great artistic monument and an icon, accessible to
society at large.
Is this project successful?
Ref. UNESCO Website

44. Dimensions of success – CS2
Overview of Project Management in Engineering & Construction Environment 44

45. Case Study: Geotechnical
Overview of Project Management in Engineering & Construction Environment 45
Major project in Dubai – housing community
Preliminary sub-surface investigation
Consultant requested more – client refused
Result: 40+ villas are useless due to differential
settlement – causing cracks and other damage
Similar project in Abu Dhabi
Houses were sinking
Discovered underground voids collapsing with time

46. Case Study: Design Errors
Overview of Project Management in Engineering & Construction Environment 46
Building to house doctors clinics
Engineering did not fully understand purpose
Today, one can perform outpatient surgery in clinics
Results
Normal corridors and elevators
• Cannot bring in patient on stretchers
No UPS facilities

47. Two Mega Projects
Overview of Project Management in Engineering & Construction Environment 47

48. Projects’ Common Factors
Overview of Project Management in Engineering & Construction Environment 48
Both projects were about equal in value
Both ~ US$ 2 – 4 billion in today market
Both projects were joint/triple ventures
Both projects parts of larger programs
Included: major grass root facilities
Included: modifications within existing refineries
owned by one of the partners

49. Material Procurement & Sourcing
Overview of Project Management in Engineering & Construction Environment 49

50. Projects’ Differentiation Factors – 1
Overview of Project Management in Engineering & Construction Environment 50
Contract: commercial aspects
AP: reimbursable cost/cost plus incentive
• Incentive for Cost, Safety, and Schedule
UP: fixed price (initially open book)
Contract: execution approach
AP: EPCM + multiple construction contracts
• Engineering: UK // Construction: SE Asia
UP: EPCM + 1 general contractor
EPCM: Engineering, Procurement, and Construction Management

51. Projects’ Differentiation Factors - 2
Overview of Project Management in Engineering & Construction Environment 51
AP: was on a small island
About 60% of area reclaimed from sea
Engineering in Europe
UP: was inland
No major logistical challenges
Engineering office 2 hours away by car

52. Overview of Project Management in
Engineering & Construction Environment
52

53. 53
The USA
Project
Overview of Project Management in
Engineering & Construction Environment

54. Capital Investment Risk Continuum
(Contract Types Versus Risk)
Overview of Project Management in Engineering & Construction Environment 54
Figure not by the author – download from internet and source is lost
AP UP

55. Which project was
a success
Overview of Project Management in Engineering & Construction Environment 55

56. What made the difference?
Overview of Project Management in Engineering & Construction Environment 56
PM maturity: major contributing factor
Team size & experience: significant
Senior stakeholders involvement: crucial
Proper pre-planning; impact on change
Communication
For AP a major focus
For UP monthly reports an email

57. Once again: careers perspective
Overview of Project Management in Engineering & Construction Environment 57
Something to think about: where do you see
yourself?

58. Thank you
Overview of Project Management in Engineering & Construction Environment 58
@mounirajam
@SUKADgroup