Chapter 1 Introduction to Project Management PDF

Construction Process Management ECE10304 CHAPTER 1 Introduction to Construction Management and Organization Dr. Soleen Jaber Learning Objectives – Construction Management Construction Project Construction Project Development Phases Role of Cons...

Construction Process Management ECE10304 CHAPTER 1 Introduction to Construction Management and Organization Dr. Soleen Jaber Learning Objectives – Construction Management Construction Project Construction Project Development Phases Role of Construction Project Manager Construction Project Manager Competency Requirements Forms of construction business Levels of Construction Management What is Management Importance of Management Levels of construction management Efficiency- Effectiveness Matrix What is Construction Management Participants in Construction Industry Definition and Characteristics of Organization Types of Organization Organization Breakdown Structure Attributes of a Project 2  What is a Project? “Unique process consisting of a set of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements, including constraints of time, cost, quality and resources” A Project is a planned set of activities A Project has a scope A Project has time, cost, quality and resource constraints 3  Attributes of a Project Has a well-defined objective A Project is a planned set of activities A Project has a scope A Project has time, cost, quality and resource constraints Composed of a series of interdependent tasks Utilizes various resources Has a specific time frame May be a unique or one-time endeavor Has a customer Involves a degree of uncertainty Focus on Efficiency and Effectiveness 4  Construction Project A construction project is a high value, time bound, construction mission of creating a construction facility with predetermined performance objectives. Five main factors that define a construction project are : Scope Quality Resources Completion time Cost Refer R1 – Page 18,21 5 Construction Project Performance Objectives There are many factors that determine the outcome of a construction project but the five main parameters that can sufficiently define a construction project are: scope, quality, resources, completion time and cost. 1. Scope defines the deliverables. The deliverables are measured in terms of the quantities of work and the nature of the tasks involved in the execution of the project. The quantity of work is surveyed from the design and drawings. Nature of tasks determines the complexity of the work. Complexity increases as the number of dissimilar tasks increase and it decreases if the tasks are repetitive (or similar in nature). 2. Quality of the product to be achieved in accomplishing tasks is stated in terms of construction design, drawings and specifications. 3. Resources are necessary to perform the work. Resource productivity measures the efficiency with which the resources are utilized. 4. Completion time depends upon the speed with which the project is to be executed. 5. Cost is the budgeted expenditure, which the client has agreed to commit to creating/acquiring the desired construction facility.  Construction Project Phases 1. Inception 2. Feasibility 3. Project planning 4. Construction procurement 5. Construction 6. Post construction close up Refer R1 – Page 65 7 8  Role of a Construction Project Manager Construction project managers oversee all phases of the building process, making sure the project is completed on time and within scope and budget. 1.Governance 2.Leadership 3.Liaison - Communication 4.Monitoring 5.Disseminator 6.Resource allocation 7.Negotiator Refer R1 – Page 45 9  Construction Project Manager Competency Requirements Project management knowledge and skills Environment knowledge and skills Leadership and interpersonal skills Technical skills Refer R1 – Page 57,58 10  Levels of construction management 1. Top level –Senior Engineers 2. Middle level – Junior Engineers 3. Lower level – Tradesmen & Labourers 11 Ref [ Online] : https://www.slideshare.net/dattseg/1-introduction-cm-2014 Levels of Management The roles and responsibilities are shown below 1 2 Learning Objectives – Construction Management What is Management Importance of Management Levels of construction management Efficiency- Effectiveness Matrix What is Construction Management Participants in Construction Industry Definition and Characteristics of Organization Types of Organization Organization Breakdown Structure Attributes of a Project 1 3 What is Management? The concept of management has acquired special significance in the present competitive and complex business world The process of leading team work to achieve the goals at a specific times, Efficient and purposeful It coordination and administration of task to achieve goals management is absolutely Such as to set the organisation strategies essential for the survival of a and coordinating the effort of staff to achieve the objectives business unit Management can be defined as “ the process of getting activities completed efficiently and effectively with and through other people” 14 What is Management? The resources are: men, money, materials, machines, methods and markets (these are the six basic inputs in management process (six M's of management) and the output is in the form of achievement of objectives) It is the end result of inputs and is available through efficient management process 15  Importance of Management Optimum utilization of resources: Management facilitates optimum utilization of available human and physical resources, which leads to progress of a business enterprise. Even wastages of all types are eliminated or minimized Competitive strength: Management develops competitive strength in an enterprise. This enables an enterprise to develop and expand its assets and profits Cordial industrial relation: Management develops cordial industrial relations, ensures better life and welfare to employees and raises their morale through suitable incentives Motivation of employees: It motivates employees to take more interest and initiatives in the work assigned and contribute for raising productivity and profitability of the enterprise 1 6  Introduction of new techniques: Management facilitates the introduction of new machines and new methods in the conduct of business activities. It also brings useful technological developments and innovations in the management of business activities Effective management: Society gets the benefits of efficient management in terms of industrial development, justice to different social groups, consumer satisfaction and welfare and proper discharge of social responsibilities Expansion of business: Expansion, growth and diversification of a business unit are possible through efficient management Brings stability and prosperity: Efficient management brings success, stability and prosperity to a business enterprise through cooperation among employees. 1 7  Develops team spirit: Management develops team spirit and raises overall efficiency of a business enterprise. Ensures effective use of managers: Management ensures effective use of managers so that the benefits of their experience, skills and maturity are available to the enterprise. Ensures smooth functioning: Management ensures smooth, orderly and continues functioning of an enterprise over a long period. It also raises the efficiency, productivity and profitability of an enterprise. Reduces turnover and absenteeism: Efficient management reduces labor turnover and absenteeism and ensures continuity in the business activities and operations. Creates sound organization: A dynamic and progressive management guarantees development of sound Organization, which can face any situation - favorable or unfavorable with ease and confidence 1 8  Basic purpose of Management : Efficiency and Effectiveness Management can be defined as “ the process of getting activities completed efficiently and effectively with and through other people” Efficiently using resources wisely and in a cost-effective way And Effectively Making the right decisions and successfully implementing them 19 Functions of a Manager 2 0 Planning: the need "to assess the future and make provision for it." That includes a flexible action plan that considers a firm's resources, work in progress, and future market trends. Organizing: laying out lines of authority and responsibility for employees. This covers recruitment and training, coordinating activities, and making employees' duties clear. Commanding: getting the most from people. So, managers must know their employees' skills, delegate to tap into these skill sets, and set a good example. Coordinating: in a well-coordinated organization, departments know their responsibilities, the needs of other teams, and their obligations to them. Controlling: continually checking that rules, plans and processes are working as well as they should be. 21  Management theories  Taylor’s Scientific Management- develop each job performance, select appropriate workers, training, support.  Henry Fayol Administrative Management; centralization, authority, order and rules.  Max Weber Bureaucratic Management; firm rules, policies and procedures, fixed hierarchy  Classical management perspective ❖ Taylor’s scientific management; - grew out of the industrial revolution’s labor shortage at the beginning of the 20th century. it calls for the application of the scientific method to work in order to determine the best method for accomplishing each task. scientific management suggests that workers should be scientifically selected based on their qualifications and trained to perform their jobs in the optimal manner. scientific management advocates genuine cooperation between workers and management based on mutual self-interest. scientific management suggests that management should take complete responsibility for planning the work and that workers' primary responsibility should be implementing management's plans. ❖ Henry Fayol’s administrative management A heory that focuses on managing the total - organization rather than individuals. He argued that management was an universal process consisting of functions, which he termed planning, organizing, commanding, coordinating, and controlling. Focusing on administrative over technical skills ❖ Max Weber Bureaucratic Management; He proposed that a form of organization, called a bureaucracy, characterized by division of labor, hierarchy, formalized rules, impersonality, and the selection and promotion of employees based on ability, would lead to more efficient management. It proposes that the most appropriate way to run an organization is to structure it into a rigid hierarchy of individuals governed by strict rules and regulations.  What is Construction Management Construction Management (CM) is the overall planning, coordination and control of any construction project from start to end It is aimed at understanding clients requirements to build a project which is financially and functionally viable Time, Cost and Quality are the three pillars of CM 26  Participants in Construction Industry The various participants in construction industry are Clients Architects Structural Engineers Service Engineers Contractors / Sub Contractors Quantity Surveyors / Estimator Contract Managers Project Managers / Planning Engineers 2 7  Participants in Construction Industry The role of an Architect are enumerated below They make a projection on the total costs of labor and materials The architect presents a proposal to the client that includes a visual demonstration of the proposed project as well as the estimated cost. When a client agrees to the proposal, the architect creates building specifications and leads the development of drawings Architects also draft and coordinate building contracts with construction companies that execute the designs created by the architect After production begins, the architect shifts into oversight mode and spends time on the job site 28  Participants in Construction Industry The role of a Structural Engineer are enumerated below Analyse configurations of the basic structural components Liaise with other designers, including architects, to agree on safe designs and their fit with the aesthetic concept of the construction Examine structures at risk of collapse and advising how to improve their structural integrity Make drawings, specifications and computer models of structures for building contractors Liaise with construction contractors to ensure that newly erected buildings are structurally sound Use computers and computer-aided design (CAD) technology for simulation purposes 2 9  Participants in Construction Industry Building Services Engineers design, install and maintain the services that are needed to allow the building to do what it's designed to. These services include: Acoustics Health and safety Heating Lifts and escalators Lighting Power and supply Building security 30 Participants in Construction Industry The role of a Contractor / Sub Contractor are listed below Make sure the client is aware of the client duties before any work starts Plan, manage and monitor all work carried out by themselves and their workers, taking into account the risks to anyone who might be affected by it (including members of the public) and the measures needed to protect them Check that all workers they employ or appoint have the skills, knowledge, training and experience to carry out the work Provide appropriate supervision, information and instructions to workers under their control Ensure suitable welfare facilities are provided from the start for workers under their control, and maintain them throughout the work 31 Participants in Construction Industry The role of a Quantity Surveyor / Estimator are listed below Conducting feasibility studies to estimate materials, time and labour costs Preparing, negotiating and analysing costs for tenders and contracts Advising on a range of legal and contractual issues Valuing completed work and arranging for payments 32  Participants in Construction Industry The role of a Contract Manager are listed below Contract drafting, evaluation, negotiation and execution Serve as the Single Point of Contact (SPOC) for customers on contractual matters Maintain contractual records and documentation such as receipt and control of all contract correspondence, customer contact information sheets, contractual changes, status reports and other documents for all projects Develop and implement procedures for contract management and administration in compliance with company policy Handle on-going issue and change management Monitor transaction compliance (milestones, deliverables, invoicing etc.) Ensure contract close-out, extension or renewal 33  Participants in Construction Industry The role of a Project Manager are listed below Planning and Defining Risk Analysis Scope Managing Risks and Issues Activity Planning and Monitoring and Reporting Sequencing Progress Resource Planning Team Leadership Developing Schedules Strategic Influencing Time Estimating Business Partnering Cost Estimating Working with Vendors Developing a Budget Scalability, Interoperability Documentation and Portability Analysis Creating Charts and Controlling Quality Schedules Benefits Realisation 3 4 Definition of Organization An Organization is a collection of people working together in a coordinated and structured fashion to achieve one or more goals An Organization is a person or group of people intentionally organized to accomplish an overall, common goal or set of goals Business organizations can range in size from one person to tens or thousands 35 Roles of Organization Organizations exist to allow accomplishment of work that could not be achieved by people alone or individually As long as the goals of an organization are appropriate, society will allow them to exist and they can contribute to society 36 Types of Organization The following are the different types of organizations Organization by Enterprise Function An enterprise organization is a large business that has the size and resources to dominate a specific market and is characterized by being high revenue and having many employees. Organization by Territory or Geography With geographical organization structures, each local division acts as its own business. All members of the business works in the same location. This makes it easier for employees to coordinate meetings with each other and meeting the challenges of the specific geographic location. A geographical organisational structure suits businesses that have offices or units in different regions or geographical areas. 37  Organization by Product A framework in which a business is organized in separate divisions, each focusing on a different product or service and functioning as an individual unit within the company. Matrix Organization A company structure where teams report to multiple leaders. The matrix design keeps open communication between teams and can help companies create more innovative products and services 38 39 Types of Organization Organization by Enterprise Function In this type of organizations, various functions like sales, production, finance, human resource, marketing etc are grouped together 40 Types of Organization Organization by Territory or Geography In this type of organizations, grouping is done based on the area or territory that they operate 41 Types of Organization Matrix Organization It is a combination of functional and product organization 42 Organizational Breakdown Structure OrganizationalBreakdown Structure (OBS) indicates the organizational relationships and is used as the framework for assigning work responsibilities The OBS is structured by Responsible Department and then by Performing Department at the lowest level This Performing Department level is where the responsibility exist and all the resources needed to accomplish the project will be assigned 43 Organizational Breakdown Structure A Typical OBS in Construction Industry is shown below 44 45