CHAPTER 2FUNDAMENTALS / BASIC CONCEPT

• What is a project?• What is project management?• What are the Key Elements that must be

considered no matter what the size and complexity of the project?

• Document management• Why is it important to determine project size?

DEFINITION OF PROJECT

• A project involves a network of inter-relatedactivities that are planned and thenexecuted in a certain sequence to create aunique product or service within a specifictime frame.

• Project is a temporary or one off activities tocreate unique product, service, result oroutcome within specific time frame.

PROJECT CHARACTERISTICS

• Specific goals and purposes• Well defined objectives and deliverables• Specific start and finish• Not repetitive / non-routine• Inter-related activities / works• Progressive elaboration / detailing• Uncertain and risk• Consumption of resources

EXAMPLES OF PROJECTS

Building Construction

Research Project

EXAMPLES OF PROJECTExamples Project Outputs Project Cost Project Time

LAN Project Facility with internet connections and

computer networking

Ten to hundreds thousands

Less than a year

Development of a dialysis Centre

Facility to treat kidney patients

Millions to tens of millions

1 – 2 Years

Housing development

Houses of different types, sizes, costs and

facilities

Tens of millions to hundreds of

millions

2 – 3 years

KLIA Project(Mega Size)

Airport complete with all facilities for

travellers

Billions 3 – 5 years

COMPARISON OF ROUTINE WORK WITH PROJECTS

Routine, Repetitive Work

Taking class notes

Daily entering sales receipts into the accounting ledger

Responding to a supply-chain request

Practicing scales on the piano

Routine manufacture of an Apple iPod

Attaching tags on a manufactured product

ProjectsWriting a term paper

Setting up a sales kiosk for a professional accounting meeting

Developing a supply-chain information system

Writing a new piano piece

Designing an iPod that is approximately 2 X 4 inches, interfaces with PC, and stores 1 mil songs and movie

Wire-tag projects for General Electric and Walmart

PROJECTS TEND TO BE LARGE• Projects tend to be large

– The Channel Tunnel, or Chunnel– Denver International Airport– Panama Canal expansion project (Estimate USD5.25,

Actual 17)– Three Gorges Dam, China (Estimate USD22.5, Actual 37)

• Projects are getting larger over time– Flying: balloons planes jets rockets reusable

rockets

• The more we can do, the more we try to do

PROJECT LIFE CYCLE• Planning and Scoping• Management• Organization• Stakeholder• Risk• Issues• Resource• Quality • Status Reporting• Evaluation• Closure/termination or

handing over

1–10

PROJECT LIFE CYCLE

PROJECT LIFE CYCLE

TIME DISTRIBUTION OF PROJECT EFFORT

RISK DURING AT THE START OF THE LIFE CYCLE

Three Project Objectives: The “Triple Constraint”

• Time• Cost• Scope

Time, cost, and performance are all related to a project

DEFINITION OF PM

"Project management is the application ofknowledge, skills, tools and techniques to

project activities to meet project requirements.“ - PMI -

Project Management Organizations

• The Project Management Institute (PMI), founded in 1969, is the major project management organization

• Grew from 7,500 members in 1990 to over 320,000 in 2010

• Other organizations– Association for Project Management– International Project Management Association

Project Management Getting Smaller

• More people are seeing the advantages of project management techniques

• The tools have become cheaper• The techniques are becoming more

widely taught and written about

PM SCOPE

1. Planning2. Organizing3. Leading4. Controlling5. Supervising6. Implementing7. Coordinating

PROJECT SCOPE

RECENT CHANGES IN MANAGING ORGANIZATIONS

• Consensual management• Systems approach• Projects are established in order to

accomplish set goals

PROJECT SUCCESS

• Project efficiency• Impact on the customer• Business impact on the organization• Opening new opportunities for the future

DOCUMENTATIONPROJECT PHASE : INITIATION

Document Project Proposal/Brief

Feasibility Report Project Business Case

Purpose Converts an idea or policy into the details of a potential project.

A result of a feasibility study, to determine whether the initiative has sufficient merit to continue.

A one-off, start-up document used by senior management to assess the justification of a proposed project, or the development options for a project that has already received funding.

Owner Project Proposer or Project Sponsor

Project Proposer or project sponsor

Project Sponsor

Approval by •CEO•Manager•Business Dev.

•CEO•Manager•Business Dev.

•CEO•Manager•Business Dev.

DOCUMENTATIONPROJECT PHASE : MANAGEMENT PROJECT PHASE :

FINALISATION

Document Project Business Plan

Project Execution Plan

Benefit/Realization Plan

Purpose High level management to decide and refer to ensure project delivery

The 'road map' used by the Project Team to deliver the agreed project outputs.

Describes how the project outputs will be utilized by the business unit(s) in order for the benefits of the project to be realized.

Owner Top Management Project Manager Top Management

Approval by •CEO•Manager•Business Dev.

•CEO•Manager•Business Dev.

•CEO•Manager•Business Dev.

PM DELIVERABLES1. Project Contract2. Statement of Work (SOW)3. Project Management Plan4. Project Documentation Plan5. Work Breakdown Structure6. Project Organization7. Project Job Description8. Project Master Schedule9. Project Management Team10. Project Budget11. Project Status Report

CASE STUDY BURJ AL KHALIFA DUBAI

CASE STUDY

PANTAI 2 STP (SEWAGE TRANFORMATION PLAN)

MRT PROJECT