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Overview of project management in engineering environment

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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.

Published in: Education

Overview of project management in engineering environment

  1. 1. Overview of project management in the engineering & construction environment Project Management
  2. 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. 3. Setting the Scene Overview of Project Management in Engineering & Construction Environment 3
  4. 4. Operations and Projects Overview of Project Management in Engineering & Construction Environment 4 Business-as-usual Business change
  5. 5. Another View Overview of Project Management in Engineering & Construction Environment 5 From PMI Publication
  6. 6. Project Owner vs. Service Provider Overview of Project Management in Engineering & Construction Environment 6
  7. 7. Careers Perspective Overview of Project Management in Engineering & Construction Environment 7 Something to think about: where do you see yourself?
  8. 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. 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. 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. 11. Project Management Methodology Overview of Project Management in Engineering & Construction Environment 11
  12. 12. Product Life Cycle Overview of Project Management in Engineering & Construction Environment 12
  13. 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. 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. 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. 16. The Overview of Project Management in Engineering & Construction Environment 16
  17. 17. Customized: Construction Project Overview of Project Management in Engineering & Construction Environment 17
  18. 18. Service Provider Perspective Overview of Project Management in Engineering & Construction Environment 18
  19. 19. Project Management Functions and Processes Overview of Project Management in Engineering & Construction Environment 19
  20. 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. 21. P-D-C-A Overview of Project Management in Engineering & Construction Environment 21
  22. 22. P-D-C-A – 2 Overview of Project Management in Engineering & Construction Environment 22
  23. 23. PM process groups within a phase Overview of Project Management in Engineering & Construction Environment 23 PMBOK Guide
  24. 24. The knowledge areas Overview of Project Management in Engineering & Construction Environment 24 Integration Scope Time Cost Quality HR Communication Risk Procurement Stakeholders
  25. 25. Process groups repeating along PLC Overview of Project Management in Engineering & Construction Environment 25
  26. 26. PMBOK® Guide versus CAM2P™ Overview of Project Management in Engineering & Construction Environment 26
  27. 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. 28. Medium & moderate projects Overview of Project Management in Engineering & Construction Environment 28
  29. 29. Large & complex projects Overview of Project Management in Engineering & Construction Environment 29
  30. 30. Overview of Planning and Control Overview of Project Management in Engineering & Construction Environment 30
  31. 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. 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. 33. Project Success Overview of Project Management in Engineering & Construction Environment 33
  34. 34. SUKAD four dimensions of success Overview of Project Management in Engineering & Construction Environment 34
  35. 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. 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. 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. 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. 39. Case Studies Overview of Project Management in Engineering & Construction Environment 39
  40. 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. 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. 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. 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. 44. Dimensions of success – CS2 Overview of Project Management in Engineering & Construction Environment 44
  45. 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. 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. 47. Two Mega Projects Overview of Project Management in Engineering & Construction Environment 47
  48. 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. 49. Material Procurement & Sourcing Overview of Project Management in Engineering & Construction Environment 49
  50. 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. 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. 52. Overview of Project Management in Engineering & Construction Environment 52
  53. 53. 53 The USA Project Overview of Project Management in Engineering & Construction Environment
  54. 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. 55. Which project was a success Overview of Project Management in Engineering & Construction Environment 55
  56. 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. 57. Once again: careers perspective Overview of Project Management in Engineering & Construction Environment 57 Something to think about: where do you see yourself?
  58. 58. Thank you Overview of Project Management in Engineering & Construction Environment 58 @mounirajam @SUKADgroup

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