LECTURE 4

MODERN PROJECT MANAGEMENT

What do you understand about
project management?
 PROJECT MANAGEMENT BODY OF KNOWLEDGE

GENERAL
PROJECT MANAGEMENT PROGRAMME MANAGEMENT PROJECT
CONTEXT
STRATEGIC
PROJECT SUCCESS CRITERIA VALUE MANAGEMENT QUALITY
MANAGEMENT
STRATEGY/PROJECT RISK MANAGEMENT HEALTH AND SAFETY
ENVIRONMENT
MANAGEMENT PLANTECHNICAL
CONTROL COMMERCIAL ORGANISATIONAL PEOPLE
Work content and Design, Business case Life cycle design mgt Communication
scope management Implementation & Marketing and Opportunity Teamwork
Time hand-over sales Design and Leadership
Scheduling/Phasing Requirements mgt Financial mgt development Conflict mgt
Resource mgt Estimating Procurement Implementation Negotiation
Budgeting and cost Technology mgt Legal awareness Hand-over Personnel mgt
mgt Value Eng (Post) Project evaluation
Change control Modeling and review
Earned value mgt testing Organisation structure
Information mgt Configuration mgt Organisation roles

Opportunity Design Implement’n Hand-over Post-Project

identification Development Make, Built and Test, Evaluation
Concept/marketing Design, Modeling Test Commission Test, Commission
feasibility bid and Procurement Start-up Start-up

Source: APM, 2000

 PROJECT MANAGEMENT
• Most efficient way of introducing unique change
• PM
– Defining what has to be accomplished (time, cost,
and various technical and quality performance
parameters
– Developing a plan to achieve
– Using appropriate pm techniques and tools to
plan, monitor and maintain progress
– Employing persons skilled in pm
Source: BSI: 6079, 1996
 PM PROCESS
Constraints
Time, cost, quality, technical
and other performance
parameters, legal,
environment, etc

Input Outputs
Business need and Management of Project deliverables,
requirement the project products and/or services

Mechanisms
People, techniques and tools,
equipment, organisation

Source: APM, 2000

 PROGRAMME MANAGEMENT
• A portfolio of projects related to some
common objective
• An organisation’s business strategy which is to
be implemented through projects
• The interdependencies between a number of
projects
• Resource allocation amongst a portfolio of
projects
 PROJECT CONTEXT/ENVI
• Internal and external environment
• Political
• Ecological
• Organizational
• These context will shape the issues what
project management has to deal with and may
assist or restrict the attainment of the project
objective
 What is changing?
The work we do
• Continuing efforts • Single-Time Efforts
– Ongoing, repetitive work – Performed once within a
– Highly consistent reasonable period of
process time
– Predictable results – Requires significant
creativity and ingenuity
– Customised end results

Many of the fundamental practices of project management assume you are

performing a continuing effort
 What is changing?
The workers we employ
• Continuing efforts • Single-time efforts
– Task-based workers – Knowledge workers
– Single, defined skills – Multiple skills
– Well-defined duties – Simultaneous project
– Predictable career path assignments
– Just-in-time training – Customised career path
– Continuous education
Resource mgt must be redefined to support Single-time efforts
 What is changing?
The focus of management
• Continuing efforts • Single-Time Efforts
– Plan task sequence – Plan general strategy
– Lead as task expert – Lead as facilitator
– Organize staff into shifts – Organize skill types
– Control worker – Control quality

… for the worker … With the team

‘The role of management is no longer to make people work but to make it

possible for people to work’
- TomDelMarco
 What is changing?
The stability of project plans
• Continuing efforts • Single-Time Efforts
– Clearly defined – Unknown objectives and
objectives and scope scope
– Repetitive operation – General framework
– Significant early detail – Progressive, iterative
– Limited revision – Continuous revision
– Controlled on time – Controlled on
deliverable completion

The failure to recognise the reality of iterative, progressive plans forces an

organisation to react to avoidable ‘surprises’
 The modern application of project
management
• Unique disciplined-based processes
• Customized, changing final results
• Emphasis on discovery and creation processes
• Improvements to total process
• Preliminary initial plans with continuous revision
• Knowledge-based workers playing flexible roles
• Managed by team leaders and facilitators
Must anticipate significant number of known
unknown and unknown unknowns
The project management dilemma
• Traditional organization excelled in managing
continuing efforts
• Managed by people who were trained in
traditional business thought
• Fail to accommodate the realities of single-
time efforts
• Attempt to manage single-time efforts the
same as continuing efforts
 Modern project management
• New realities • Implications
– Shift to information age – New products and
– Dependence on Single- services
time efforts – Compensation for
– Programs for knowledge current contributions,
worker continuous education
– Increased demand for – PM fundamentals, PM
project managers framework for Single-
time efforts
 What is modern project
management?
• The corporate act of planning, leading, organizing and
controlling Single-time efforts
– Total organization involvement
– Repeatable PM framework
– Emphasize project initiation
– Rapid decision making
– Valid baseline agreements
– Progressive, iterative plans
– Deliverable-based control
– Accommodating unknowns
 Project success criteria
• Critical success factors- KPIs(Key Prfmce Index)
– Determined at the beginning of the project
– Reflect directly on the key objectives (goals) of the project
– Provide the basis for project management trade-off
decisions during the course of the project
• At completion of the project these KPIs
– Will be the most relevant measures to confirm the
acceptability of the project and its product by the project’s
stakeholders as being ‘successful’
– Can be measured in some way, at some time, on some
scale
 Strategy/Project Mgt Plan
• Importance for overall
– Planning
– Implementation of the project
– Monitoring
• The plan should include
– Definition of overall objectives
– Statements on how these should be achieved
– Estimates of the time required
– Budget
– Quality policy
– Health
– Safety and environment policies
– Risk mgt strategy
• Why, what, how , who, how much and when
 Value management (VM)
• Value- achieving a balance between the satisfaction
of many differing needs and the resources used in
doing so
• Cost vs benefits
• Parameters vs objectives
• Expenditures vs needs
• Investments vs outcome
• Performance divided by cost
• VM – refers to the overall process identifying key
issues and setting targets in terms of success criteria
 Risk Management
• RM- identification, assessment, allocation and
management of all project risks
• Risks, once identified, assessed and allocated
should be managed in order to minimized or
completely mitigate their effect on a project
• Response- remove, avoid, transfer or accept
the risks or lead to the abandonment of the
project
 Quality management
• Quality planning
– Preparation, checking, and recording of actions that are
necessary to achieve the standard of product or service
that the customer legislation requires
• Quality control
– The set of processes for planning and monitoring the
project to ensure that quality is being achieved
• Quality assurance
– The set of processes and procedures required to
demonstrate that the work has been performed according
to the quality plan
 TQM
• TQM- much broader and more ambitious
system for identifying what the client really
wants, defining the organization’s mission,
measuring throughout the whole process how
well performance meets the required
standards, and involving the total organization
in the implementation of a deliberate policy of
continuous improvement
 Discussion
Discuss about the advantages and disadvantages
of using project management consultant for
construction projects.
 References
• Project Management Body of Knowledge, Association of
Project Management, 2006.
• British standard Institute, Value Management, PrEN, 12973
• Chuck Tryon, www.TryonAssoc.com
• Thomson P.A. & Perry J.G (eds), Engineering Construction
Risks- A guide to project risk Analysis and risk management,
2nd edition, Thomas Telford, 1998
• Managing successful programmes, Office of Government
Commerce, 2007