Project Managent - Power Point
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PROJECT MANAGEMENT
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Presentation at CEPT UniversityTo
Post Graduate Students
byJay Pandya, P.E.
January - April 2012
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PROJECT MANAGEMENT
CONTENT• Introduction
• Definition
• History
• Lifecycle
• Stakeholders and Their Roles
• Organization
• Delivery Alternates
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PROJECT MANAGEMENT
CONTENT contd.
• Project Control
• Work Breakdown Structure
• Scope Management
• Budget and Cost Control
• Schedule Control
• Quality Control
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PROJECT MANAGEMENT
CONTENT contd.
• Change Orders Management
• Documents Management
• Software
• Project Reporting
• Project Governance
• Risk Management
• Success Factors
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INTRODUCTION
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It’s the Law
Project Management Law #1
“A Capital Project is rarely installed on time, or within budget and the Owner is not happy with Quality of Design and Construction”
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Introduction
• 90% of projects do not meet time/cost/quality targets.
• Only 9% of large, 16% of medium and 28% of small company projects were completed on time, within budget and delivered measurable business and stakeholder benefits*.
• There are many reasons for such failures. *Standish Group Chaos Report, 1995
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Introduction contd.
As per a Major Accounting Firm survey of 252 organizations, technology is not the most critical factor. Inadequate project management implementation constitutes 32% of project failures, lack of communication constitutes 20% and unfamiliarity with scope and complexity constitutes 17%.
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Introduction contd.
Accordingly 69% of project failures are due to lack and/or improper implementation of project management methodologies
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DEFINITION
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Definition
• Project , defined:
A Project is a Unique Endeavor with –
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Definition
• Project , defined:
A Project is a Unique Endeavor with –
Defined Scope of Work
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Definition
• Project , defined:
A Project is a Unique Endeavor with –
Defined Scope of Work
Specific Start and End
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Definition
• Project , defined:
A Project is a Unique Endeavor with –
Defined Scope of Work
Specific Start and End
Defined Budget
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Definition contd.
• Management – Discipline of :– Planning– Organizing– Securing– Managing Resources
• Process of using a series of Objectives to achieve specific goals
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Definition contd.
• Project Management Challenges– Competing Demands for –
ScopeBudgetTimeQualityRisk
– Stakeholders with Differing Needs and Expectations
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HISTORY
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It’s the Law
Project Management Law #2
“A person that doesn’t learn from history is doomed to repeat it”
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Project Management History
• The Great Pyramids of Giza – Completed – 2570 BC – Records show – Managers for each of the four faces – Responsible for overseeing their Completion (WBS)
• The Design is simple on the outside but complex on the inside
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Project Management History contd.
• Great Wall of China – 208 BC – Qin Dynasty (221 BC – 206BC)
• Force was Organized into three Groups – Soldiers, Common People and Criminals
• Qin Shihuang ordered millions of people for this Project
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• Taj Mahal – Construction took approximately 22 Years from 1631 to 1653.
• Approximately 22000 laborers and 1000 Elephants were used in construction of this monument.
Project Management History contd.
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• Eiffel Tower – Entrance Arch for the World’s Fair – Constructed during 1887 – 1889 and was Inaugurated on March 31, 1889.
• Approximately 300 workers were involved. • 18,038 pieces of Steel and 2.5 m rivets were
required.
Project Management History contd.
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• Gantt Charts – Developed by Henry Gantt 1917
• Worldwide Importance in 1920s • Used on the Hoover Dam Project Started in
1931 • Still being used today
Project Management History contd.
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• Hoover Dam – 726.4 ft high • Second tallest Dam in USA • Five Years to Build – 1931 to 1936 • 3,250,000 cft. Of Concrete was used
Project Management History contd.
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• Empire State Building – 102 Story Building • 1,250 ft. from Base to the Top Floor and
1472 ft. to the Antenna Spire • Excavation Started on January 22, 1930 • Steel and Masonry were Completed on
May 1, 1931 • Approx. 15 Months to erect.
Project Management History contd.
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• Project Management in Modern sense began in the 1950s. Time and Motion Study, Work Study, Industrial Engineering etc.
Project Management History contd.
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• American Association of Cost Engineers was formed in 1956 – Cost and Schedule Control
• Critical Path Method (CPM) was developed in 1957 – DuPont – Complex Process Plant – Turnaround – Shutdown and Restart
• Project Evaluation and Review Technique (PERT) – US Navy’s Polaris – 1958 – Polaris Mobile Submarine Launched Ballistic Missile Project
Project Management History contd.
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LIFECYCLE
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It’s the Law
Project Management Law #3
“The work expands to fill the time available ”
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Lifecycle
• Program Study• Planning• Design / Engineering• Procurement• Construction• Commissioning & Closeout
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Lifecycle contd.
• Program Study – – Define Owner Goals, needs– Scope Charter– Program Budget – Capital and Operating Costs– Program Schedule – Capital and Project Life– Financing Strategy– Risk Evaluation– Due Diligence – Go/No Go Decision
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Lifecycle contd.
• Project Planning – – Scope Definition –
(Scope Statement at the highest level)– Concept Development– Project Delivery Strategy– Project Site & Infrastructure Plan
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Lifecycle contd.
• Project Planning contd. –– Project Budget & Cash Flow Development– Develop Risk Management Strategy– Master Schedule Development– Financing Feasibility & Funding Resources– Regulatory review & Approval
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COST Vs. TIMEOpportunities to control Cost and Schedule occur early in the project.
100%
Project Time0%
100%
Start
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ost
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Cash Flow
StrategicPlanning
TacticalImplementation/
Reactive Position
Complete
Lifecycle contd.
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It’s the Law
Project Management Law #4
“The more you plan, the luckier you get”
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Lifecycle contd.
• Design - Engineering– Design Criteria & Standards– Schematic Design – Process Standardization– Constructability Review– Value Engineering
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Lifecycle contd.
• Design – Engineering contd.– Identify Long Lead Items– Input of Operation & Maintenance– Develop Detailed Design & Construction
Documents– Scope Control as Design Develops (Scope
Creep)– Periodic Progress Reports – Budget, Schedule,
Progress, Problems and Recommended Solutions
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Lifecycle contd.
• Procurement– Contracting Strategy – Insure Adequate Competition– Bid Process – RFP, Pre-Bid Meetings, Bid
Submittal, Bid Evaluation, Negotiations, Contract Award
– Subcontract Evaluation & Subcontractor Bonding
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Lifecycle contd.
• Procurement contd.– Long Lead Items Procurement Management– Monitoring of Consultant Contracts– Contract Compliance– Pre – Construction Meeting
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Lifecycle contd.
• Construction– Pre-Construction Meetings– Subcontract Execution Plans– Shop Drawings & Submittal Requirements– Shop Drawings & Fabrication Management– Construction Schedule Development /
Monitoring
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Lifecycle contd.
• Construction contd.– Quality Control & Assurance– Safety Planning & Monitoring– Cost Control & Budget Monitoring– Contractors Coordination
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Lifecycle contd.
• Commissioning and Closeout
– Commissioning Planning
– Punch List Development
– Pressure / Loop / Equipment Function Testing
– Turnover Requirements
(such as Maintenance Procedures , As Built
Drawings, Catalogues, Spare Parts and
Warranties).
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Lifecycle contd.
• Commissioning & Closeout contd. – Project Document Archive
– Regulatory Agencies Approvals– Closeout Audit
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STAKEHOLDERS AND THEIR ROLES
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It’s the Law
Project Management Law #5
“Too many cooks spoil the broth”
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Stakeholders And Their Roles
• Stakeholders are those individuals and organizations that are actively involved in the Project and who influence the Project outcome
• Different Stakeholders have different Roles
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Stakeholders And Their Roles
• Stakeholders include:– Owners– Operations & Maintenance– Financer– Specialty Consultants– Project Manager/Construction Manager– Architects– Engineers
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• Stakeholders include contd.– Contractors– Subcontractors– Suppliers– Regulatory Agencies
Stakeholders And Their Roles contd.
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Stakeholders And Their Roles contd.
• Each Stakeholder has Differing Needs and Expectations
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Project Stakeholder Roles
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Programing PlanningDesign &
Engineering Procurement Construction Commission &
Closeout
Owners X X X X X X Oper. & Maint X X X X
Financer X X Specialty
Consultants X X X X X X
PM / CM X X X X X Architects X X X X Engineers X X X X X
Contractors X X X Subcontractors X X
Suppliers X X X X Regulatory
Agencies X X X X
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• Roles: – Owners
Program StudyPlanningDesign and EngineeringProcurementConstructionCommission and Closeout
Stakeholders And Their Roles contd.
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Stakeholders And Their Roles Contd.
• Roles:– Operations and Maintenance
Design and EngineeringProcurementConstructionCommission and Closeout
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Stakeholders And Their Roles Contd.
• Roles: – Financer
Program StudyPlanning
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Stakeholders And Their Roles Contd.
• Roles: – Specialty Consultants
Program StudyPlanningDesign and EngineeringProcurementConstructionCommission and Closeout
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Stakeholders And Their Roles Contd.
• Roles:
– Project Manager/Construction Manager
Planning
Design and Engineering
Procurement
Construction
Commission and Closeout
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Stakeholders And Their Roles Contd.
• Roles: – Architects
Planning
Design and Engineering
Procurement
Construction
Commission and Closeout
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Stakeholders And Their Roles Contd.
• Roles: – Engineers
PlanningDesign and EngineeringProcurementConstructionCommission and Closeout
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Stakeholders And Their Roles Contd.
• Roles:– Contractors
ProcurementConstructionCommission and Closeout
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Stakeholders And Their Roles Contd.
• Roles: – Subcontractors
ConstructionCommission and Closeout
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Stakeholders And Their Roles Contd.
• Roles:– Suppliers
Design and EngineeringProcurementConstructionCommission and Closeout
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Stakeholders And Their Roles Contd.
• Roles:– Regulatory Agencies
PlanningDesign and EngineeringConstructionCommission and Closeout
• Managing Stakeholders' Expectations – a Challenge – Conflicting Interests
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ORGANIZATION
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Organization
Management Functions – • Planning• Organizing• Leadership• Control
To Accomplish Project Goals And Objectives
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Organization Contd.
Create An Organization Structure Which Includes –• Policies• Procedures• Reporting Patterns• Communication Channels
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Organization Contd.
Organizations Like Any Complex System Are Hierarchical – Composed Of Lower Level To Higher Order Structures – • Technical Core Level• Organizational Level• Institutional Level
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Organization Contd.
The Most Appropriate Organization Structure Depends On – • Project Goals• Type Of Project• Environment/Culture
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Organization Contd.
• Organizations – – Project Organizations are Normally Part Of Larger
Organizations– Company Or Project Based Organizations– Different Levels and Types Of Organization
Structures– Every Stakeholder – Part Of The Project
Organization Structure– Defined By Roles, Responsibility And Authority
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Organization Contd.
• Factors to be Considered In Developing An Organization Structure – – Single Point Of Accountability and Authority– Command Structure– Reporting Relationships– Communication– Coordination Among Stakeholders
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Organization Contd.
• Factors to be Considered In Developing An Organization Structure contd. –– Culture– Functional v. Matrix– Constant State Of Flux– Resource Allocation– Formal/Informal
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Organization Contd.
• Organization Structure Types & Responsibilities–– Owner/ Company Level– Project Level– Design / Engineering Level– Procurement Level
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Organization Contd.
• Organization Structure Types & Responsibilities contd. –– Construction/Site Office– Subcontractor– Commissioning– Closeout
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Organization Contd.
• Organization Structure At Company Level – Project Management Finance Design/Engineering Procurement Personnel
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Organization Contd.
• Organization Structure At Company Level – Information System Project Control Business Development
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DELIVERY ALTERNATES
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Delivery Alternatives
DESIGN ENGINEERING PROCUREMENT
COMMISSIONINGCONSTRUCTION
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Traditional Delivery
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Delivery Alternatives contd.
• Traditional Delivery– No Overlap Between Phases– Owner’s Representative:
CoordinationMonitoring
– Architect / Engineer: InspectionCompliance with Contract Documents
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Delivery Alternatives contd.
• Traditional Delivery– Single Prime Contractor with Subcontractors– Contracting Alternatives
Lump SumUnit PriceTime & Material
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Delivery Alternatives contd.
DESIGN
ENGINEERING
PROCUREMENT
COMMISSIONING
CONSTRUCTION
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Fast Track Delivery
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Delivery Alternatives contd.
• Fast Track Delivery– Overlap Between Phases
Compresses TimeReduces Budget
– Owner as PM / CM or
– Consultant PM / CMAgentFixed Fee
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Delivery Alternatives contd.
• Fast Track Delivery– Multiple Prime Contractors with
Subcontractors
– Contracting AlternativesMultiple Lump SumGMPUnit PriceTime & Material
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Delivery Alternatives contd.
OWNER SCOPE & BUDGET DEVELPOMENT
DESIGN-BUILD CONTRACTOR
TRADITIONAL or FAST TRACK DELIVERY
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Design Build Delivery
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Delivery Alternatives contd.
• Design-Build Delivery– Owner Issues One Contract Only– Minimum Involvement of Owner after Scope
Development – Design-Build Contractor Responsible for All
Subsequent Phases– Design Benefits from Contractor’s Expertise
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Delivery Alternatives contd.
PUBLIC OWNER
PRIVATE ORGANIZATION – SPVInvestor / Banker
Project Developer
Operations & Maintenance
FAST TRACK DELIVERY93
Public / Private Partnership Delivery (PPP)Partn
ership
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Delivery Alternatives contd.
• Public Private Partnership (PPP) – Brings The Public And Private Sectors Together
As Partners In a Contractual Agreement For A Defined Period (Normally Asset Life)Public Sector Pays For Those ServicesRight To Generate Revenue From The Project
– Objectives – Increase The Availability Of InfrastructureGreater Efficiency – Lower Cost and Higher Level Of Service
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Delivery Alternatives contd.
• PPP allows – – Private Financial Resources Available To Public
Sector– Private Sector Technical Expertise, Experience
And Efficiency Available To Public Sector– Project Related Risks Transferred To Private
SectorFinancialTechnicalOperational
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Delivery Alternatives contd.
• PPP Formation – – Private Sector Forms A Special Company Known As
Special Purpose Vehicle (SPV) To – DevelopBuild OperateMaintenance
– SPV Usually Made up Of – Investor/Banker/Landing InstitutionEngineering and Construction CompanyOperation And Maintenance Compny
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Delivery Alternatives contd.
• PPP– Benefits –
Project AccelerationCost Effective Design and ConstructionRisk And ResponsibilityUsers Rather Than Taxpayers Pay
– Potential Problems – Lack Of ControlsFear Of SPV Failing Or Not Meeting Service
Requirements
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PROJECT CONTROL
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It’s the Law
Project Management Law #13
“If you fail to plan… you are planning to fail”
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Project Control
DEVELOP A PLAN
IMPLEMENT THE PLAN
ANALYZE PERFORMANCE
FORECAST FUTURE PERFORMANCE
REPORT VARANCES
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UPD
ATE
PLAN
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Project Control contd.
• Project Control: Keeping These Project Elements On Track – – Scope– Budget/Cost– Schedule– Financial
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Project Control contd.
• Project Control Elements (Contd.) –– Quality– Risk– Change– Communication
• Project Control Begins With Planning And Ends With Project Closeout
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WORK BREAKDOWN STRUCTURE
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Work Breakdown Structure
• What it is:– Organized Hierarchical Representation Of The
Project Scope Broken-down Into Sufficient Detail To Support – BudgetingCost Estimating Cost ControlSchedule ControlAssignment of Roles And Responsibilities
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Work Breakdown Structure contd.
• What it is contd.:– Method Of Reducing The Project Into Lower
Levels Of Greater Detail – Project Manager Should Have The Responsibility Of
Determining Number Of LevelsCore Team Should be Involved In Determining Number
Of LevelsNumber Of Levels Depend On The Size And
Complexity Of The Project
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Work Breakdown Structure Contd.
• Work Breakdown Structure Development Approach – – Top-Down Approach –
Specify All Work Assignments To Complete The ProjectSpecify All Tasks To Complete Each AssignmentSubtasks/Activities To Complete Each TaskContinue This Process Until You Reach Adequate
Detail For The Entire Project
• Work Breakdown Structure Is A Backbone Of The Project Control Process
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SCOPE MANAGEMENT
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Scope Management
• Project Scope – – Work That Must Be Accomplished To Deliver A
Product With Specified Functions And Features – Main Points Of A Project Which Define
Projects’ Goals– All The Work And Only The Work Required To
Complete The Project SuccessfullyAccomplish Project ObjectivesAchieve The Goal
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Scope Management contd.
• Project Scope Contd. –– Definition of Scope
Level of DetailClarity
– Technology IssuesExistence of Required TechnologyLicensing
– Site Issues
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Scope Management contd.
• Scope Management Process – – Project Initiation– Scope Planning– Scope Definition– Scope Verification– Scope Change Control
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Scope Management contd.
• Scope Management Process cont.– – Initiation Input –
Project DescriptionStrategic PlanSelection CriteriaHistorical Information
– Initiation Output – Charter – Project Description And Business Needs Being
AddressedIdentify The Project ManagerConstraints Assumptions
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Scope Management contd.
• Scope Management Process cont.– – Planning Input – Same As Initiation– Planning Output –
Scope Statement – Project Justification, Description, Deliverables, Objectives
Supporting DetailsAssumptionsScope Management Plan
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Scope Management contd.
• Scope Management Process cont.– – Scope Definition Input –
Output Received From Planning Statement Supporting Details, Assumptions and Management Plan
– Scope Definition Output –Work Breakdown StructureScope Statement Update
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Scope Management contd.
• Scope Management Process cont.– – Scope Verification Input –
Project StatusDocumentationWork Breakdown StructureScope StatementProject Plan
– Scope Verification Output – Formal Acceptance Of The Project
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Scope Management contd.
• Scope Management Process cont.– – Scope Change Control –
Scope CreepContingency ManagementCorrective ActionLessons LearnedAdjusted Baseline
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BUDGET AND COST CONTROL
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It’s the Law
Project Management Law #19
“Anything can be changed… until there is no time (or $$) left to change anything”
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Budget And Cost Control
• Cost Estimate – – Program Level – Conceptual– Utilize Work Breakdown Structure Levels– Schematics– Value Management
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Budget And Cost Control contd.
• Cost Estimate contd. –– Design Development– Construction Documents Level (Bid Documents)– Change Order Estimates– Special Estimates
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Budget And Cost Control contd.
• Considerations In Cost Estimating –– Historical Data– Industry Standards– Lessons Learned – Economic Trends
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Budget And Cost Control contd.
• Budget Preparation – – Top Down Process– Responsibility for Budget Development– Budget Development Issues
Past ExperienceLevel of Scope DetailFactors ConsideredEmerging Technologies
– Budget and Reality
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Budget And Cost Control contd.
• Budget Preparation Contd. –– Sources Of Funds :
InternalExternal
– Availability from each SourceAmountTimingReliability
– Currency Exchange Rate Issues
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Budget And Cost Control contd.
• Budget Preparation Contd. –– Different Budget Levels– Utilize Work Breakdown Structure Levels – Line Item Budgets– Historical Data– Contingency
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Budget And Cost Control contd.
• Cost Control – – Cost Monitoring and Control – Bottom up
Process– Cost Management Plan– Cost Tracking– Comparison against The Baseline Estimate– Trending
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Budget And Cost Control contd.
• Cost Control contd. –– Cost Updates– Estimated Cost To Complete– Accounting / Cost Control Software – Cost Reporting– Corrective Actions
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SCHEDULE CONTROL
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It’s the Law
Project Management Law #23
“Everything takes longer than you think”
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Schedule Control
• Project Schedule – – Goal Definition vs. Timing– Define Major Scope Elements– High Order Schedule Considerations
Site AcquisitionConceptual Design DevelopmentProcurement IssuesConstruction PhaseCommissioning
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Schedule Control contd.
• Scheduling Tools – – Activity List With Start And End Dates– Bar Chart Schedules– Arrow Diagramming Method (ADM)– Precedence Diagramming Method (PDM)– Line Of Balance(LOB)/Linear Scheduling
Method(LOM)– Location Based Scheduling
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Schedule Control contd.
• Project Master Schedule
• Different Schedule Levels for Different Management Levels
• Design & Engineering Schedule
• Procurement Schedule
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Schedule Control contd.
• Construction Schedule
• Commissioning & Closeout Schedule
• Integrated Project Schedule
• Base Line Schedule
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Schedule Control contd.
• Pre-Bid Schedule
• Schedule Update
• Short Term Look-Ahead Schedules
• Detailed Schedule for Specific Project Area
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Schedule Control contd.• Example: Conceptual Master Schedules
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Schedule Control contd.
• Software
• Fundamental Requirements For Any Software
• Optional Requirements – Cost, Resource etc.
• Contract Requirements
• Implementation of Contract Requirements
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It’s the Law
Project Management Law #29
“The 80 / 20 Rule: the first 80% of the work takes 20% of the time, but the last 20% of the
work takes 80% of the time”
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QUALITY CONTROL
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It’s the Law
Project Management Law #31
“You don’t get what you expect, you get what you inspect”
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Quality Control contd.
• Quality Control – – Process Which Reviews All The Factors
Involved In The Project – Emphasis On – Elements Such As Controls, Job Performance, Integrity
Criteria, DocumentationCompetence Such As Knowledge, Experience,
Qualifications, SkillsSoft Elements Such As Organization Culture,
Motivation, Team Spirit, Confidence
– Inspect The Work Accomplished To Ensure Its Alignment With The Project Scope
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Quality Control contd.
• Quality Control by Contractor:– Quality Control Program/Manual– Materials Testing– Inspections– Reports & Documentation
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Quality Control contd.
• Quality Assurance by Owner:– Oversee Implementation Of Q/C Procedures– Inspection by Owner
You Get What You Inspect And Not What You Expect– Records review– Documentation review
• Collaboration Software
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Quality Control
“There is never enough time to do it right…. but there is always time to do it over”
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CHANGE ORDER MANAGEMENT
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It’s the Law
Project Management Law #17
“If project content is allowed to change freely, the rate of change will exceed the rate of progress ”
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Change Order Management
• Change Order – – Work that is Added Or Deleted From The
Original Contract Scope Of Work Which Alters The Contract Amount Or Completion Date
– Common to Most Projects – Prime Reason for The Project Budget And Schedule Overrun
– Change Orders Can Only Be Mitigated, They Cannot Be Eliminated
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Change Order Management contd.
• Common Reasons For Change Orders –– Increase/Alteration Of Owner’s Needs– Omissions/ Errors In Contract Documents– Changes In Regulatory Requirements– Differing Site Conditions– Differing Work Performance Conditions
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Change Order Management contd.
• Change Order Process – – Change Identification– Change Request By Owner/AE/Contractor– Contract Document Review & Scope
Identification– Change Estimate By The Contractor/AE/PM/CM– Change Order Proposal – Cost Amount & Time– Proposal Review – Negotiations – Determination – Change Order Approval/Denial
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Change Order Management contd.
• Change Order Monitoring –– Periodic Review Of Contract– Change Order Log Containing –
Approved Change OrdersOutstanding But Waiting To Be ApprovedProposals Submitted But No Other Action TakenChanges Identified And Proposals In ProgressPotential/Disputed Change Orders
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Change Order Management contd.
• Change Order Control –– Detailed Review of Scope At The Planning Stage– Clearly Define The Scope During The Planning Stage To
Avoid Any Ambiguity– Involvement Of Operations And Maintenance
Personnel During The Scope Development And Design Development And Construction Documents Stages
– Ensure Coordination Of Various Disciplines During Design Development And Construction Documents Stage
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Change Order Management contd.
• Change Order Control contd. –– Review Of Contract Requirements By The Legal As
well As Technical Personnel– A Thorough Investigation Of Subsurface And Site
Conditions AS Well As Any Constraints– Conduct Meetings with Regulatory Agencies,
Determine Their Requirements And Incorporate Them Into Contract Requirements
– Conduct Pre-Bid And Pre Construction Meetings With Contractors And Review Contract Requirements In Detail
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Change Order Management contd.
• Change Order Control Contd. –– Select Financially Sound And Experienced
Contractor– Implement Contract Requirements Strictly With
Respect To :SubmittalsChange Order ProposalsCoordination MeetingsProgress Reports
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DOCUMENTS MANAGEMENT
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It’s the Law
Project Management Law #37
“When the weight of the paperwork equals the weight of the aircraft, the plane is ready to fly”
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Documents Management
• Documents Management – Record Keeping – – Backbone Of Successful Project Management Process– Tool For The Communication – Formal/Informal– During The Entire Project Period, All Stakeholders
Should Establish And Maintain Good, Accurate And Complete Records
– Easier To Maintain If Planned Properly With The Advancements In The Telecommunication And Photographic Industry
– Extremely Important Source For The Dispute Resolution
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Documents Management contd.
• The Project Record Keeping System Should:– Identify The Documents Type– Utilize The Standard System– Establish Project Record Index For Quick
Document Retrieval – Preserve Records Daily For Each Project
Element
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Documents Management contd.
• The Project Record–Keeping System Should Normally Consist Of:– Correspondence– Project Execution Plan– Project Procedures Manual– Budget Documents– Project Baseline Schedule
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Documents Management contd.
• The Project Record–Keeping System Should Normally Consist Of:– Project Cost Estimate– Project Risk Assessment– Project Quality Control Plan– Project Procurement and Material Control Plan– Materials Purchase Orders and Delivery
Schedules
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Documents Management contd.
• The Project Record–Keeping System Should Normally Consist Of:– Engineering Contract– Value Engineering Analysis– Engineering Drawing Log– Engineering Services Invoices– Project Cost and Schedule Reports
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Documents Management contd.
• The Project Record–Keeping System Should Normally Consist Of:– Constructability Reviews– ROW Logs– Construction and/or Letters of Intent and Term
Sheets– Construction Contracts– Subcontracts
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Documents Management contd.
• The Project Record–Keeping System Should Normally Consist Of:– Project Safety Plan– Project Security Plan– Construction Contract Invoices– Subcontractor Invoices– Meeting Minutes
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Documents Management contd.
• The Project Record–Keeping System Should Normally Consist Of:– Daily Field Reports– Material Invoices– Change Orders– Commissioning Logs– Closeout And Warranty Reports
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SOFTWARE
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It’s the Law
Project Management Law #41
“GIGO”
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Software
• Major Categories – – Engineering– Procurement– Planning And Control– Construction– Collaboration
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Software
• Planning And Control – – Cost Engineering– Finance & Accounting– Scheduling– Resource Control– Bulk Material
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Software
• Project Control Software Examples– Prima Vera– MS Project– ARTEMIS– Prologue
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PROJECT REPORTING
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It’s the Law
Project Management Law #43
“You can fool all of the people some of the time, and you can fool some of the people all
of the time, but you can’t fool all of the people all of the time”
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Project Reporting
• Project Reporting Purpose – – Status – Communicate Progress Against Plan And
Highlight Any Variances– Coordination – Assist All levels Of Management
For Coordination– Corrective Action – Timely Information Could
Assist The Management In Taking Corrective Action And Avoid Disaster
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Project Reporting contd.
• Status Reports – – ALL Management Levels Within Management– Level Of Detail And Frequencies Differ Depending
On The Management Level– Summary Reports And Less Frequent For The Top
Management– Action Oriented More Frequent (Weekly Or Daily)
And Detailed For The Team Members
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Project Reporting contd.
• Status Reports Should Address – – Where Is The Project – Work Accomplished To
Date And During The Last Period– Where Should The Project Be – Compare The
Performance Against The Plan– How Do You Plan To Get There – Identification Of
Problem Areas And Recommended Corrective Actions
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Project Reporting contd.
• Status Reports Should Address Contd. –– When Do You Plan To Get There – Schedule Of
Corrective Actions– Assistance Needed – Financial, Manpower,
Equipment or Any Other Assistance Required To Take Corrective Actions
– Overall Project – When And At What Cost
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Project Reporting contd.
• Project Status Report Should Also Address –– Overall Project– Engineering– Procurement– Construction– Commissioning– Closeout
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Project Reporting contd.
• Information Contained In The Project Status Report – – Project Identification– Financial – Approved Budget, Current Cost Paid
And Committed To Date, Estimated Cost to Complete And Total Estimated Cost
– Schedule – Major Milestone Information, Original And Current Approved, Projected Schedule Completion,
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Project Reporting contd.
• Information Contained In The Project Status Report Contd. –– Progress Since Last Period And Major
Accomplishments– Approved Scope Changes– Issues– Plans For The Next Period– Assistance Needed– Lessons Learned
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PROJECT GOVERNANCE
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Project Governance
• Project Goals– Owner defined– Realistic– Adequately Communicated
• Accountability– Clear Definition of Roles and Responsibilities– Buy-in by Stakeholders
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Project Governance contd.
• Stakeholders– Stakeholder Goals align with Project Goals– Appropriate Policies & Procedures– Project Control Tools
• Relationships– Defined by Responsibilities– Coordination of Contract Documents
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Project Governance contd.
• Planning– Organization (Command Structure)– Resource Allocation– Coordination among Stakeholders– Government Regulations
• Monitoring– Design Stages & Procurement– Construction– Budget / Schedule
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RISK MANAGEMENT
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It’s the Law
Project Management Law #47
“If you don’t attack the risks, the risks will attack you”
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Risk Management
• Identify Project Risk
• Assess Project Risk
• Mitigate Project Risk
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Risk Management contd.
• Identify Risks– Planning Risks
Technical Feasibility of ConceptInsufficient Scope DefinitionAggressive Project ScheduleInaccurate / Overly Optimistic BudgetingFailure to account for Regulatory Requirements
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Risk Management contd.
• Identify Risks contd.– Design & Engineering Risks
Coordination Among Engineering DisciplinesInsufficient Input from Operations & MaintenanceScope CreepConstructabilityControl of Design Budget & Schedule
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Risk Management contd.
• Identify Risks contd.– Procurement Risks
Transparency of Contractor Selection ProcessMisevaluation of Prime or Sub ContractorsProper Contract Formation & ElementsLong Lead Item Procurement Issues
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Risk Management contd.
• Identify Risks contd.– Construction Risks
Improper Mobilization Planning & ExecutionDiffering Site ConditionsAvailability of Skilled LaborSpecialized Construction Equipment IssuesInadequate Coordination of the TradesQuality Assurance / ControlChange Order Management
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Risk Management contd.
• Identify Risks contd.– Construction Risks contd.
Rite of Way IssuesCommunity RelationsSafety ManagementSubcontractor / Supplier IssuesGrowth of Budget & ScheduleCommunication Issues
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Risk Management contd.
• Identify Risks contd.– Commissioning & Closeout Risks
Adequacy of Commissioning PlanCommissioning Communication & CoordinationTimely & Accurate Development of Punch ListsAvailability of Specialized Commissioning CrewsContamination of Equipment During ConstructionIncomplete Punch List Execution Inaccurate As-Built Drawings & Process PlansIncomplete Documentation of Installed
Equipment
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Risk Management contd.
• Assess Project Risks– Probability of Risk Occurrence– Evaluate Risk Impact on:
BudgetScheduleFunctionalityRegulatory ReviewRelationships
– Prioritize Risks for Resource Allocation
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Risk Management contd.
• Mitigate Project Risks– Obtain Appropriate & Adequate Insurance– Develop Robust Information Flow
Comprehensive Reporting: Daily, Weekly & Monthly
Institutionalize Risk Awareness & Discussion
– Monitor Costs for Abnormal Trends
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Risk Management contd.
• Mitigate Project Risks– Keep Schedules Current; Identify Anomalies– Develop Quality Control Systems– Monitor Safety Performance– Incentive Plans – Owner & Contractor Personnel– Proactive vs. Reactive
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Risk Management contd.
• Mitigate Project Risks– Co-ordination during Design and Construction– Top Management Commitment– Competent Staff– Line Management Commitment– Contract Requirements Implementation
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Risk Management contd.
• Conclusions– Pro-active rather than Reactive– Forward Looking– Open Communication
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It’s the Law
Project Management Law #51
“Project Risk can never be eliminated, it can only be mitigated”
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SUCCESS FACTORS
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It’s the Law
Project Management Law #49
“Success depends on People, Procedures & Tools”
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Success Factors
• Functionality
• Quality
• Budget
• Schedule
• No Residual Problems – Disputes
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Functionality
• Implies performance consistent with Original Concept
• Requires complete and accurate communication among the Project Participants
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Functionality• Performance consistent with Original Concept
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How the Project Manager scoped
the Project
How the Engineer designed it
How the Procurement
Dept. ordered it
How the Contractor installed it
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Functionality
What the Owner actually wanted
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Functionality
• Communication:– Clear– Concise– Meets Participants’/Stakeholders’
expectations– Properly Documented
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Assuring Project Success
• Organization & PM Team – Parent Organization / Culture– Customer Organization / Commitment– Qualification / Dedication of Team Members
• Planning– Goal Definition / Concept Development– Project Delivery Strategy– Project Resource Plan
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Assuring Project Success
• Implementation
• Monitoring / Updating (all of above)
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It’s the Law
Project Management Law #53
“Things always work out in the end…
…If they haven’t worked out yet, you’re not at the end”