Introduction to the Topic:
Hello Future Engineers! The success of the construction project doesn't fully rely on the
amount of available resources - manpower and materials. A success of the construction
project will be determined on how the project organization managed these resources
throughout the entire project timeline. Let's discuss!
Intended Learning Outcomes:
At the end of the session the students should be able to:
1. Learn and understand the fundamental concepts on Project and Project
Management;
2. Learn and understand the fundamental concepts on Construction Project
Organization;
3. Familiarize with the Different Roles of Stakeholders in a Construction Project
Organization.
PROJECT MANAGEMENT
A project is temporary endeavor undertaken to create a unique:
1. Product
2. Service
3. Result
.... and progresses elaborately.
Project management is defined as the art and science
of coordinating people, equipment, materials, money, and schedules to complete
a specified project on time and within approved cost. Project management is also
the application of knowledge, skills, tools, and techniques to projects activities to
meet project objectives.
PROGRAM & PORTFOLIOS
Portfolio Management - All projects , programs, related or unrelated, driven by an
organizational alignment.
Program Management - A group of related projects, driven by a shared business need.
What's the difference between the two?
Program management manages similar projects while portfolio
management manages dissimilar projects or programs. The scope of program
management is broader than the project scope, and a portfolio has an organization-
wide scope, which changes with the strategic objectives of the organization.
PROJECTS vs OPERATIONS
Operations
- On-going
- Repetitive
- Sustain the Business
Projects
- Temporary
- Unique
- Create new product and services
Operations Manager
Prioritize Service Continuity, is concerned with capacity and service delivery.
Project Manager
Protects the Project Outcome i.e. new Product, Services, is concerned with scope,
schedule, cost, quality.
PROJECT PERFORMANCE BASELINES AND CONSTRAINTS
Figure above is shown as an equilateral triangle to represent an important principle of
project management: a balance is necessary between the scope, budget, and schedule.
For any given project there is a certain amount of work that must be performed and an
associated cost and schedule for producing the work. Any increase in the scope of
work requires a corresponding increase in budget and schedule. Conversely,
any decrease in scope of work results in a corresponding decrease in budget and
schedule. This principle applies between any and all of the three components of a
project. For example, any adjustment in budget and/or schedule requires a
corresponding adjustment in scope. This simple concept of a balance between scope,
budget, and schedule is sometimes not fully recognized during early project
development as well as during design and construction.
All project performance are measured against:
1. Scope - represents the work to be accomplished, i.e., the quantity and quality of
work.
2. Schedule - refers to the logical sequencing and timing of the work to be performed.
3. Cost/Budget - budgets are used to anticipate all costs and expenses of the building
process.
4. Quality - defined as degree of conformity to standards, delivering projects with no
defects.
5. Resources - necessary to meet the objectives of the project, and to satisfy the
client's requirements. Examples of resources in a construction project are Materials,
Labors, Tools, and Equipment.
6. Risks - is exposure to the possibility of economic or financial loss or gain, physical
damage or injury, or delay, as a consequence of the uncertainty associated with
pursuing a particular course of action.
Technical Risks include poor design, inadequate site investigation, and uncertainty
over the source and availability of materials and appropriateness of specifications.
Logistical Risks include availability of resources such as construction equipment,
spare parts, fuel and labor and availability of sufficient transportation facilities.
Construction Risks include uncertain productivity of resources, weather or seasonal
implications and industrial relations problems.
Financial Risks include inflation, availability and fluctuation of foreign exchange, delay
in payment, repatriation of funds and local taxes.
Political Risks include constraints on the availability and employment of expatriate
staff, customs and import restrictions and procedures, difficulties in disposing of plant
and equipment and insistence on using of local firms and agents.
7. Customer Satisfaction - measures how products or services supplied by a
company meet or surpass a customer's or owner's expectation.
CONSTRUCTION PROJECT ORGANIZATION
ORGANIZATIONAL PROJECT MANAGEMENT
ORGANIZATIONAL PROJECT MATURITY MODEL
PROJECT MANAGEMENT OFFICE
There are 3 different forms of PMO: Supportive, Controlling, and Directive.
THE STAKEHOLDER
DIFFERENT TYPES OF ORGANIZATIONAL STRUCTURE
End of Discussion.
Reference: [Link] (Links to an external site.)
Other Reference:
Pellicer, Eugenio (2014). Construction management. West Sussex, United Kingdom:
John Wiley & Sons
Godwin, William (2013). International construction contracts: a handbook with
commentary on the FIDIC design-build forms. West Sussex, United Kingdom: Wiley-
Blackwell
Ritz, George J. (2013). Total construction project management. New York, New York:
McGraw-Hill Education
portfolio > program > project