Construction Management PDF

CONSTRUCTION M A N A G E M E N T Page 01 PROJECT MANAGEMENT PROJECT MANAGEMENT DEFINED… defined by the Project Management Institute’s (PMI) guide to Project Management Body of Knowledge (PMBOK) as the application of knowledge, skills, tools, and techni...

CONSTRUCTION M A N A G E M E N T Page 01 PROJECT MANAGEMENT PROJECT MANAGEMENT DEFINED… defined by the Project Management Institute’s (PMI) guide to Project Management Body of Knowledge (PMBOK) as the application of knowledge, skills, tools, and techniques to project activities in which resources such as man, machine, material, and money are organized to undertake a scope of work, of given specification and quality, within constraints of cost and time, and to manage the risks involved in undertaking the same so as to deliver the expected benefits as defined by quantitative and qualitative objectives. CONSTRUCTION CONTRACTORS CONSTRUCTION CONTRACTORS Builders who supervise the execution of construction projects are traditionally referred to as contractors, or more appropriately called constructors. CONSTRUCTION CONTRACTORS The general contractor coordinates various tasks for a project. The specialty contractors such as mechanical or electrical contractors perform the work in their specialties. Material and equipment suppliers often act as installation contractors; they play a significant role in a construction project since the conditions of delivery of materials and equipment affect the quality, cost, and timely completion of the project. CONSTRUCTION M A N A G E M E N T Page 01  TOOLS AND TECHNIQUES OF MANAGEMENT 1. GANTT CHARTS is a tool, which takes the form of a horizontal bar chart, used for planning and scheduling simple projects.  TOOLS AND TECHNIQUES OF MANAGEMENT 1. GANTT CHARTS Henry Gantt developed this tool for displaying the progression of a project. Page 08  TOOLS AND TECHNIQUES OF MANAGEMENT 1. GANTT CHARTS The advantage of Gantt chart is its simplicity, making it very popular Can be useful for initial project planning, which then gives way to the use of networks called PERT and CPM.  TOOLS AND TECHNIQUES OF MANAGEMENT 1. GANTT CHARTS Gantt charts facilitate the process of creating a project timeline. If you’re using the online Gantt chart in Project Manager, you simply need to add tasks and due dates to automatically create interactive project plans. Then you can adjust your project schedules as needed and link dependent tasks by clicking and dragging items on the timeline. TOOLS AND TECHNIQUES OF MANAGEMENT  TOOLS AND TECHNIQUES OF MANAGEMENT 2. PERT/CPM PERT - Program Evaluation and Review Technique CPM – Critical Path Method  TOOLS AND TECHNIQUES OF MANAGEMENT 2. PERT/CPM is a control tool for defining the parts of construction job and then putting them together in a network form. pinpoints the particular work operations whose completion times are responsible for controlling the complete date. provides a means of speeding up a project without excessive costs for overtime. Without the use of PERT/CPM when speeding up the project overtime expenditures may be in total waste.  TOOLS AND TECHNIQUES OF MANAGEMENT 2. PERT/CPM gives a time leeway or float available for each of the non- critical work operations. The information on float time will give the project manager that opportunity to maneuver in their planning and control of the operations. establishes time boundaries for operations with possibilities of shifting resources, equipment and manpower to meet time requirements.  TOOLS AND TECHNIQUES OF MANAGEMENT 2. PERT/CPM PERT/CPM indicates the earliest starting date for each work operations and sub-contracts for supply and delivery of materials. It shows the most advantageous scheduling for all operations. This gives planning information as to time and cost in choosing methods, equipment, crew and work hours. It offers a means of assessing the effect on the overall project variations in one operations such as change orders.  TOOLS AND TECHNIQUES OF MANAGEMENT 2. PERT/CPM In case of change order where the owner would not want to extend the contract time, PERT/CPM offers a means of re-scheduling the operations but still to be completed at the least increase in cost. With the critical path schedule as revised to reflect the change order, any claim if any, for additional payment will be understood both by the owner and the contractor.  TOOLS AND TECHNIQUES OF MANAGEMENT 2. PERT/CPM  TOOLS AND TECHNIQUES OF MANAGEMENT 2. PERT/CPM  TOOLS AND TECHNIQUES OF MANAGEMENT 2. PERT/CPM 4 5 3 DURATION:? 4 3 7 3 4  TOOLS AND TECHNIQUES OF MANAGEMENT 2. PERT/CPM 4 5 3 DURATION: 20 DAYS 4 3 7 3 4  TOOLS AND TECHNIQUES OF MANAGEMENT 2. PERT/CPM - 7 A 11 A 6 B 9 DURATION: ? C 5 CRITICAL PATH? D 8 a. A-B-D-F-H E 8 b. A-C-E-G-H F,G 14  TOOLS AND TECHNIQUES OF MANAGEMENT 2. PERT/CPM - 7 A 11 A 6 B 9 DURATION: 49 C 5 CRITICAL PATH? D 8 a. A-B-D-F-H E 8 b. A-C-E-G-H F,G 14  TOOLS AND TECHNIQUES OF MANAGEMENT 2. PERT/CPM - 7 A 11 A 6 B 9 DURATION: 49 C 5 CRITICAL PATH? D 8 a. A-B-D-F-H E 8 b. A-C-E-G-H F,G 14  TOOLS AND TECHNIQUES OF MANAGEMENT 2. PERT/CPM Fundamental Elements of PERT/CPM Networking  TOOLS AND TECHNIQUES OF MANAGEMENT 2. PERT/CPM Fundamental Elements of PERT/CPM Networking Activity – Actual work between events Events –Is a point in time signifying the beginning or end of one or more activities - indicated on the network as a circle, square or any form of geometrical symbols with a number written therein for identification. Dummy Activity – does not represent actual work efforts and do not consume time.It is used to distinguish between two or more parallel activities.  TOOLS AND TECHNIQUES OF MANAGEMENT 2. PERT/CPM Fundamental Elements of PERT/CPM Networking Duration of an activity – is the time it takes an activity to be finished. It is the span of time from the early start to its early finish or from its late start to its late finish. Path – is a sequence of activities that leads from starting node to the finishing node. Critical Activities – the longest path is the critical path (has a zero slack or float) and its activities are called critical activities.  TOOLS AND TECHNIQUES OF MANAGEMENT 3. WORK BREAKDOWN STRUCTURE (WBS) a way to organize work into smaller, more manageable pieces. According to the Project Management Body of Knowledge (PMBOK), WBS is a “deliverable-oriented hierarchical decomposition of the work to be executed by the team.”  TOOLS AND TECHNIQUES OF MANAGEMENT 3. WORK BREAKDOWN STRUCTURE (WBS) The WBS is a graphic representation of every task in the project. At the top is the final product with a line that goes down the page to a box (or boxes) that represent the larger tasks that lead to that completed project. Each of these boxes is then attached with lines that go under it to smaller tasks.  TOOLS AND TECHNIQUES OF MANAGEMENT 3. WORK BREAKDOWN STRUCTURE (WBS)  TOOLS AND TECHNIQUES OF MANAGEMENT 4. RISK MATRIX A risk matrix is another key project management tool that any project manager should know. They’re a simple tool that helps you to figure out the likelihood and severity of potential project risks. By having the means to access risk this way, you can chart their impact on the project. This allows project managers to assign a priority to the risk and determine the response if it becomes an issue in the project. For these reasons, you should always use a risk matrix, risk log or other risk management tools when planning your projects, regardless of the project management techniques you choose.  TOOLS AND TECHNIQUES OF MANAGEMENT 4. RISK MATRIX  TOOLS AND TECHNIQUES OF MANAGEMENT 5. TIMESHEETS Teams need to get paid and timesheets are a tool that helps accomplish that. As in any employment, timesheets are a way to track the number of hours a person has worked over the course of a specific time, usually a week or biweekly. In project management, timesheets do more than just facilitate payment. They’re used as project controls to record the amount of time that the team member has spent on their specific tasks, though they can also track time on a project or for a particular client.  TOOLS AND TECHNIQUES OF MANAGEMENT 5. TIMESHEETS  TOOLS AND TECHNIQUES OF MANAGEMENT 6. PROJECT REPORTS are simply documentation that detail either an overview or details of a project. There are many different types of project reports, each serving a different purpose, but all give a project manager data on the progress and performance of their project.  TOOLS AND TECHNIQUES OF MANAGEMENT 6. PROJECT REPORTS project management technique is that it’s a communication tool. As noted, it communicates valuable project details to the project manager. But it also provides the project manager with a means of updating the project stakeholders, all of whom have a vested interest in the project’s success.  TOOLS AND TECHNIQUES OF MANAGEMENT 6. PROJECT REPORTS MANAGEMENT THEORY Page 05 WHAT IS MANAGEMENT THEORY? ARE COLLECTIONS OF IDEAS THAT INFLUENCE HOW AN ORGANIZATION, BUSINESS OR TEAM IS GUIDED AND RUN. LEADERS IN COMPANY MANAGEMENT ARE PRIMARILY RESPONSIBLE FOR LAYING OUT STRATEGIES TO HELP THEIR TEAMS MEET THEIR GOALS  BENEFITS OF MANAGEMENT THEORY By studying established management theories managers may be able to find ways to increase productivity and improve their team members’ performance, simplify decision making and increase collaboration. Page 10 TYPES OF MANAGEMENT THEORIES 1. Scientific management theory 2. Administrative management theory 3. Bureaucratic management theory 4. Human relations theory TYPES OF MANAGEMENT THEORIES 1. Scientific management theory 2. Administrative management theory 3. Bureaucratic management theory 4. Human relations theory 5. Systems management theory 6. Contingency management theory 7. The X and Y theories 8. Classical management theory TYPES OF MANAGEMENT THEORIES 1. Scientific management theory 2. Administrative management theory 3. Bureaucratic management theory 4. Human relations theory 5. Systems management theory 6. Contingency management theory 7. The X and Y theories 8. Classical management theory 9. Modern management theory 10. Quantitative management theory 11. Holistic management theory 12. Knowledge worker theory SCIENTIFIC MANAGEMENT FREDERICK WINSLOW TAYLOR One of the earliest of these theorists. He started the Scientific Management movement, and he and his associates were the first people to study the work process scientifically. SCIENTIFIC MANAGEMENT FREDERICK WINSLOW TAYLOR In 1909, Taylor published "The Principles of Scientific Management." In this, he proposed that by optimizing and simplifying jobs, productivity would increase. SCIENTIFIC MANAGEMENT is a method of improving efficiency in the workforce. As its name implies, this management theory uses scientific methods to assess work processes.  SCIENTIFIC MANAGEMENT FOUR PRINCIPLES OF SCIENTIFIC MANAGEMENT 1. Replace working by "rule of thumb," or simple habit and common sense, and instead use the scientific method to study work and determine the most efficient way to perform specific tasks.  SCIENTIFIC MANAGEMENT FOUR PRINCIPLES OF SCIENTIFIC MANAGEMENT 2. Rather than simply assign workers to just any job, match workers to their jobs based on capability and motivation, and train them to work at maximum efficiency.  SCIENTIFIC MANAGEMENT FOUR PRINCIPLES OF SCIENTIFIC MANAGEMENT 3. Monitor worker performance, and provide instructions and supervision to ensure that they're using the most efficient ways of working.  SCIENTIFIC MANAGEMENT FOUR PRINCIPLES OF SCIENTIFIC MANAGEMENT 4. Allocate the work between managers and workers so that the managers spend their time planning and training, allowing the workers to perform their tasks efficiently. 2. ADMINISTRATIVE MANAGEMENT THEORY HENRI FAYOL This 19th-century theory was developed by mining engineer and senior executive Henri Fayol, who believed that managers should utilize a specific set of values to get the most out of their workforce.  2. ADMINISTRATIVE MANAGEMENT THEORY attempts to find a rational way to design an organization as a whole. The theory generally calls for a formalized administrative structure, a clear division of labor, and delegation of power and authority to administrators relevant to their areas of responsibilities. 2. ADMINISTRATIVE MANAGEMENT THEORY HENRI FAYOL Fayol outlined 14 principles for managers to use to organize and interact with their teams:  3. Unity of command 2. ADMINISTRATIVE MANAGEMENT THEORY 4. Unity of Direction 5. Equity 6. Order FAYOL OUTLINED 147.PRINCIPLES Discipline 1. Division of work 8. Initiative 2. Authority and responsibility 9. Renumeration 3. Unity of command 10. Stability 4. Unity of Direction 11. Scalar Chain 5. Equity 12. Subordination of interest 6. Order 13. Esprit de corps 7. Discipline 14. Centralization and decentralization 2. ADMINISTRATIVE MANAGEMENT THEORY 1. DIVISION OF WORK Delegating responsibilities of a project to different team members allows them to focus on one specialized task, instead of dividing their attention across many. 2. ADMINISTRATIVE MANAGEMENT THEORY 2. AUTHORITY AND RESPONSIBILITY A balance between authority, or the right to make management decisions, and the employee’s responsibility over their tasks should exist to obtain the best results. 2. ADMINISTRATIVE MANAGEMENT THEORY 3. DIVISION OF WORK This principle asserts that employees receive direction from a single supervisor to avoid conflicting requests and to maintain hierarchy. 2. ADMINISTRATIVE MANAGEMENT THEORY 4. UNITY OF DIRECTION This principle ensures that employees working on the same project are working toward the same objectives. Departmental managers are responsible for coordinating and communicating clear directions to their teams. 2. ADMINISTRATIVE MANAGEMENT THEORY 5. EQUITY The equity principle was meant to cultivate an environment where everyone is treated equally and with kindness. 2. ADMINISTRATIVE MANAGEMENT THEORY 6. ORDER This principle ensures that things run smoothly, by pairing the right person with the right job, improving the working atmosphere and boosting productivity. 2. ADMINISTRATIVE MANAGEMENT THEORY 7. DISCIPLINE This principle encourages order within the organization, and outlines rules that the workforce should follow. It also encompasses managers showing disciplined behavior and leading by example. 2. ADMINISTRATIVE MANAGEMENT THEORY 8. INITIATIVE This principle allows for employees to develop and launch initiatives that inspire them, as long as they do not conflict with organizational rules or values. 2. ADMINISTRATIVE MANAGEMENT THEORY 9. REMUNERATION This refers to fair remuneration, or payment, for employees, promoting productivity and loyalty. It can also encompass the value employers feel that they are getting from their workforce. 2. ADMINISTRATIVE MANAGEMENT THEORY 10. STABILITY The stability principle asserts that employees must feel they have job security to function efficiently, which will encourage them to stay at the company longer and be more productive. 2. ADMINISTRATIVE MANAGEMENT THEORY 11. SCALAR CHAIN This ensures that employees know who to contact to communicate up the management chain and establishes company hierarchy. 2. ADMINISTRATIVE SUBORDINATION OF MANAGEMENT THEORY 12. INTEREST Harmony must exist throughout an organization. Managers should prioritize the interests of the organization as a whole over any one individual’s needs. 2. ADMINISTRATIVE MANAGEMENT THEORY 13. ESPRIT DE CORPS This phrase expresses a feeling of pride. Managers should look for ways to encourage teamwork, generate enthusiasm among their teammates and direct reports, and reward outstanding performance to make this feeling grow. 2. ADMINISTRATIVE MANAGEMENT THEORY CENTRALIZATION AND 14. DECENTRALIZATION Centralization typically has a select few making decisions for the many, often at the highest levels of leadership. 2. ADMINISTRATIVE MANAGEMENT THEORY CENTRALIZATION AND 14. DECENTRALIZATION Decentralization is when decisions are made by an organization as a whole. 2. ADMINISTRATIVE MANAGEMENT THEORY CENTRALIZATION AND 14. DECENTRALIZATION According to Fayol’s philosophy, an effective organization delegates the ability to make decisions to different employees, thereby maintaining balancing centralization and decentralization. 3. BUREAUCRATIC MANAGEMENT THEORY MAX WEBER In creating his bureaucratic management theory, German sociologist Max Weber thought that the ideal business structure was based on a hierarchy with a clear chain of command. 3. BUREAUCRATIC MANAGEMENT THEORY A clear division of labor with specialized employees for each task. A hierarchal structure where clear communication, delegation and responsibility are prioritized. Worker selection based on education, their experience and their technical skill alone. 3. BUREAUCRATIC MANAGEMENT THEORY Consistent regulations and rules where everyone knows what is expected of them and their work. Impersonal working relationships, so favoritism, nepotism or outside forces cannot influence decision making. Achievement-based advancement to recognize hard work and competence while disregarding personality traits or rewarding personal favors. 4. HUMAN RELATIONS THEORY GEORGE ELTON MAYO Developed by Australian psychologist and researcher George Elton Mayo, this management theory was the result of experiments for how to improve workplace conditions and productivity. 4. HUMAN RELATIONS THEORY GEORGE ELTON MAYO Mayo’s work advanced the theory that employees may be more motivated by receiving personal attention and having a sense of belonging than they are by favorable working conditions or compensation alone. 5. SYSTEMS MANAGEMENT THEORY Ludwig von Bertalanffy WAS AN AUSTRIAN BIOLOGIST KNOWN AS ONE OF THE FOUNDERS OF GENERAL SYSTEMS THEORY.  5. SYSTEMS MANAGEMENT THEORY Asserts that for a large organizational system to function at an optimal level, its multiple components must all work together in harmony.  5. SYSTEMS MANAGEMENT THEORY That means the employees, departments, work groups and business units all play a crucial role in the system’s success. To ensure success, collaboration between managers and business units should be prioritized. 6. CONTINGENCY MANAGEMENT THEORY FRED FIEDLER Developed in the 1960s, the Fiedler’s contingency theory is based on the belief that managers need to be flexible, as different situations demand different leadership traits. 6. CONTINGENCY MANAGEMENT THEORY FRED FIEDLER Rather than applying a single theory to every situation in every organization, variables like the organization’s size, technology used and leadership at all business levels should be considered. 7. THE X AND Y THEORIES DOUGLAS MCGREGOR In his book, The Human Side of Enterprise, social psychologist Douglas McGregor introduced the X and Y theories 7. THE X AND Y THEORIES DOUGLAS MCGREGOR His conclusion was that managers are guided by their perception of their team members’ motivations, and therefore use two different theories.  7. THE X AND Y THEORIES THEORY X A more authoritarian approach, Managers who conclude employees are apathetic or not happy in their work  7. THE X AND Y THEORIES THEORY Y Managers who see employees as responsible, self-motivated and committed, which leads to a more collaborative work environment.  7. THE X AND Y THEORIES McGregor’s conclusion was that large organizations may rely on Theory X as a means of keeping everyone focused on meeting their organization’s goals, while smaller businesses tend to use Theory Y, which he preferred, and may be a better fit for their inclusive and creative culture.  8. CLASSICAL MANAGEMENT THEORY Max Weber, Frederick Taylor, and Henri Fayol, the founders of classical management theory.  8. CLASSICAL MANAGEMENT THEORY Focusing exclusively on the economics of workforce management, classical management theory tends to view employees as parts of a machine.  8. CLASSICAL MANAGEMENT THEORY The rationale behind this theory is that the physical needs of workers can be met with compensation, so social needs or job satisfaction are not prioritized.  9. MODERN MANAGEMENT THEORY In sharp contrast to the classical, the modern management theory is built on the idea that employees don’t work for money alone, but are motivated by happiness, satisfaction and work that supports their lifestyles.  10. QUANTITATIVE MANAGEMENT THEORY Quantitative management theory was developed post World War II, resulting from a need to make strategic and tactical decisions backed by data.  10. QUANTITATIVE MANAGEMENT THEORY This approach to management prioritizes disciplined thinking, and centers around finding an optimal solution to a problem and focused decision making.  10. QUANTITATIVE MANAGEMENT THEORY Mathematical models may be used to collect data to assist in those decisions, coupled with scientific reasoning strategies.  11. HOLISTIC MANAGEMENT THEORY Sometimes called the integral theory or the organizations as learning systems theory, the holistic management theory is based on the idea that businesses are stronger when all parts are integrated and working together.  11. HOLISTIC MANAGEMENT THEORY management’s responsibility is to provide transparency, provide clear goals and align their workforce toward a common purpose.  11. HOLISTIC MANAGEMENT THEORY learning and change are the order of the day, with an emphasis on teamwork, information sharing and empowerment of the individual. 12. KNOWLEDGE WORKER THEORY Developed by Peter Drucker, the knowledge worker management theory became popular in the latter half of the 20th century as organizations began incorporating his ideas of balancing business needs with community.  12. KNOWLEDGE WORKER THEORY the employee is seen as an asset, with skills that must be managed and developed. Management is responsible for training employees or providing learning pathways through outside resources to close skill gaps.