Project Managent - Power Point

PROJECT MANAGEMENT
Presentation at CEPT University To Post Graduate Students
by Jay Pandya, P.E. January - April 2012

2
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
Its 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
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%.
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:
Defined Scope of Work
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Definition
Project , defined:
Defined Scope of Work Specific Start and End
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Definition
Project , defined:
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
Scope Budget Time Quality Risk
Stakeholders with Differing Needs and Expectations

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HISTORY
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Its the Law

Project Management Law #2 A person that doesnt 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.
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Eiffel Tower Entrance Arch for the Worlds 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.
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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
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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
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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.
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Project Management in Modern sense began in the 1950s. Time and Motion Study, Work Study, Industrial Engineering etc.
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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 Navys Polaris 1958 Polaris Mobile Submarine Launched Ballistic Missile Project
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LIFECYCLE
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Its 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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Lifecycle contd.
COST Vs. TIME
Opportunities to control Cost and Schedule occur early in the project.
100% 100%
Strategic Planning Tactical Implementation/ Reactive Position
Opportunity to Influence Project Goals
(Cost, Schedule, and Quality)
Cash Flow
0%
Start
Project Time
Complete
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Its 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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Its 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 And Their Roles contd.

Stakeholders include contd.
Contractors Subcontractors Suppliers Regulatory Agencies
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Each Stakeholder has Differing Needs and Expectations
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Project Stakeholder Roles

Programing Planning
Design & Engineering
Procurement
Construction
Commission & Closeout
Owners Oper. & Maint Financer Specialty Consultants PM / CM Architects Engineers Contractors Subcontractors Suppliers Regulatory Agencies
X X
X X
X X
X X
X
X X X
X
X X X
X
X X X X
X
X X X X X
X
X
X X X X X
X X X
X X
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Roles:
Owners Program Study Planning Design and Engineering Procurement Construction Commission and Closeout
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Stakeholders And Their Roles Contd.

Roles:
Operations and Maintenance Design and Engineering Procurement Construction Commission and Closeout
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Roles:
Financer Program Study Planning
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Roles:
Specialty Consultants Program Study Planning Design and Engineering Procurement Construction Commission and Closeout
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Roles:
Project Manager/Construction Manager
Planning Design and Engineering Procurement Construction
Commission and Closeout
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Roles:
Architects
Planning Design and Engineering
Procurement
Construction Commission and Closeout
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Roles:
Engineers Planning Design and Engineering Procurement Construction Commission and Closeout
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Roles:
Contractors Procurement Construction Commission and Closeout
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Roles:
Subcontractors Construction Commission and Closeout
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Roles:
Suppliers Design and Engineering Procurement Construction Commission and Closeout
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Roles:
Regulatory Agencies
Planning Design and Engineering Construction Commission 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
Traditional Delivery
DESIGN
ENGINEERING
PROCUREMENT
CONSTRUCTION
COMMISSIONING
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Delivery Alternatives contd.

No Overlap Between Phases Owners Representative:
Coordination Monitoring
Architect / Engineer:
Inspection Compliance with Contract Documents
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Single Prime Contractor with Subcontractors Contracting Alternatives
Lump Sum Unit Price Time & Material
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Fast Track Delivery
DESIGN ENGINEERING PROCUREMENT CONSTRUCTION COMMISSIONING
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Fast Track Delivery
Overlap Between Phases
Compresses Time Reduces Budget
Owner as PM / CM or Consultant PM / CM
Agent Fixed Fee
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Fast Track Delivery
Multiple Prime Contractors with Subcontractors Contracting Alternatives
Multiple Lump Sum GMP Unit Price Time & Material
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Design Build Delivery
OWNER SCOPE & BUDGET DEVELPOMENT
DESIGN-BUILD CONTRACTOR
TRADITIONAL or FAST TRACK DELIVERY

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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 Contractors Expertise
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Public / Private Partnership Delivery (PPP)
PUBLIC OWNER
PRIVATE ORGANIZATION SPV

Investor / Banker Project Developer Operations & Maintenance
FAST TRACK DELIVERY

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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 Services Right To Generate Revenue From The Project
Objectives
Increase The Availability Of Infrastructure Greater Efficiency Lower Cost and Higher Level Of Service
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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 Sector
Financial Technical Operational
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PPP Formation Private Sector Forms A Special Company Known As Special Purpose Vehicle (SPV) To
Develop Build Operate Maintenance
SPV Usually Made up Of

Investor/Banker/Landing Institution Engineering and Construction Company Operation And Maintenance Compny
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PPP Benefits
Project Acceleration Cost Effective Design and Construction Risk And Responsibility Users Rather Than Taxpayers Pay
Potential Problems
Lack Of Controls Fear Of SPV Failing Or Not Meeting Service Requirements
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PROJECT CONTROL
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Its 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
UPDATE PLAN
IMPLEMENT THE PLAN ANALYZE PERFORMANCE REPORT VARANCES FORECAST FUTURE PERFORMANCE
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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
Budgeting Cost Estimating Cost Control Schedule Control Assignment 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 Levels Core Team Should be Involved In Determining Number Of Levels Number 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 Project Specify All Tasks To Complete Each Assignment Subtasks/Activities To Complete Each Task Continue 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 Successfully
Accomplish Project Objectives Achieve The Goal
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Scope Management contd.

Project Scope Contd.
Definition of Scope
Level of Detail Clarity
Technology Issues
Existence of Required Technology Licensing
Site Issues
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Scope Management Process
Project Initiation Scope Planning Scope Definition Scope Verification Scope Change Control
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Scope Management Process cont.
Initiation Input
Project Description Strategic Plan Selection Criteria Historical Information
Initiation Output
Charter Project Description And Business Needs Being Addressed Identify The Project Manager Constraints Assumptions
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Planning Input Same As Initiation Planning Output
Scope Statement Project Justification, Description, Deliverables, Objectives Supporting Details Assumptions Scope Management Plan
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Scope Definition Input
Output Received From Planning Statement Supporting Details, Assumptions and Management Plan
Scope Definition Output

Work Breakdown Structure Scope Statement Update
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Scope Verification Input
Project Status Documentation Work Breakdown Structure Scope Statement Project Plan
Scope Verification Output

Formal Acceptance Of The Project
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Scope Change Control
Scope Creep Contingency Management Corrective Action Lessons Learned Adjusted Baseline
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BUDGET AND COST CONTROL
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Its 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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Considerations In Cost Estimating
Historical Data Industry Standards Lessons Learned Economic Trends
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Budget Preparation
Top Down Process Responsibility for Budget Development Budget Development Issues
Past Experience Level of Scope Detail Factors Considered Emerging Technologies
Budget and Reality

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Budget Preparation Contd.
Sources Of Funds :
Internal External
Availability from each Source

Amount Timing Reliability
Currency Exchange Rate Issues

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Budget Preparation Contd.
Different Budget Levels Utilize Work Breakdown Structure Levels Line Item Budgets Historical Data Contingency
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Cost Control
Cost Monitoring and Control Bottom up Process Cost Management Plan Cost Tracking Comparison against The Baseline Estimate Trending
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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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Its 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 Acquisition Conceptual Design Development Procurement Issues Construction Phase Commissioning
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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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Project Master Schedule Different Schedule Levels for Different Management Levels Design & Engineering Schedule Procurement Schedule
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Construction Schedule Commissioning & Closeout Schedule Integrated Project Schedule Base Line Schedule
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Pre-Bid Schedule Schedule Update Short Term Look-Ahead Schedules Detailed Schedule for Specific Project Area
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Example: Conceptual Master Schedules
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Software Fundamental Requirements For Any Software
Optional Requirements Cost, Resource etc.

Contract Requirements Implementation of Contract Requirements
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Its 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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Its the Law

Project Management Law #31 You dont 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, Documentation Competence Such As Knowledge, Experience, Qualifications, Skills Soft 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 by Contractor:
Quality Control Program/Manual Materials Testing Inspections Reports & Documentation
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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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Its 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 Owners Needs Omissions/ Errors In Contract Documents Changes In Regulatory Requirements Differing Site Conditions Differing Work Performance Conditions
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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 Monitoring
Periodic Review Of Contract Change Order Log Containing
Approved Change Orders Outstanding But Waiting To Be Approved Proposals Submitted But No Other Action Taken Changes Identified And Proposals In Progress Potential/Disputed Change Orders
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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
148

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
149

Change Order Control Contd.
Select Financially Sound And Experienced Contractor Implement Contract Requirements Strictly With Respect To :
Submittals Change Order Proposals Coordination Meetings Progress Reports
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DOCUMENTS MANAGEMENT
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Its the Law

Project Management Law #37 When the weight of the paperwork equals the weight of the aircraft, the plane is ready to fly
152
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
153
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
154

The Project RecordKeeping System Should Normally Consist Of:
Correspondence Project Execution Plan Project Procedures Manual Budget Documents
Project Baseline Schedule

155

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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Engineering Contract Value Engineering Analysis Engineering Drawing Log Engineering Services Invoices Project Cost and Schedule Reports
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Constructability Reviews ROW Logs Construction and/or Letters of Intent and Term Sheets Construction Contracts Subcontracts
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Project Safety Plan Project Security Plan Construction Contract Invoices Subcontractor Invoices
Meeting Minutes
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Daily Field Reports Material Invoices Change Orders Commissioning Logs
Closeout And Warranty Reports

160
SOFTWARE
161
Its 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
164
Software
Project Control Software Examples
Prima Vera
MS Project
ARTEMIS
Prologue
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PROJECT REPORTING
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Its 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 cant fool all of the people all of the time
167
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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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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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 Status Report Should Also Address
Overall Project Engineering Procurement Construction Commissioning Closeout
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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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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
179
Its the Law

Project Management Law #47 If you dont 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 Concept Insufficient Scope Definition Aggressive Project Schedule Inaccurate / Overly Optimistic Budgeting Failure to account for Regulatory Requirements
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Identify Risks contd.
Design & Engineering Risks
Coordination Among Engineering Disciplines Insufficient Input from Operations & Maintenance Scope Creep Constructability Control of Design Budget & Schedule
183

Procurement Risks
Transparency of Contractor Selection Process Misevaluation of Prime or Sub Contractors Proper Contract Formation & Elements Long Lead Item Procurement Issues
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Construction Risks
Improper Mobilization Planning & Execution Differing Site Conditions Availability of Skilled Labor Specialized Construction Equipment Issues Inadequate Coordination of the Trades Quality Assurance / Control Change Order Management
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Construction Risks contd.
Rite of Way Issues Community Relations Safety Management Subcontractor / Supplier Issues Growth of Budget & Schedule Communication Issues
186

Commissioning & Closeout Risks
Adequacy of Commissioning Plan Commissioning Communication & Coordination Timely & Accurate Development of Punch Lists Availability of Specialized Commissioning Crews Contamination of Equipment During Construction Incomplete Punch List Execution Inaccurate As-Built Drawings & Process Plans Incomplete Documentation of Installed Equipment
187

Assess Project Risks
Probability of Risk Occurrence Evaluate Risk Impact on: Budget Schedule Functionality Regulatory Review Relationships Prioritize Risks for Resource Allocation
188

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
189

Keep Schedules Current; Identify Anomalies Develop Quality Control Systems Monitor Safety Performance Incentive Plans Owner & Contractor Personnel Proactive vs. Reactive
190

Co-ordination during Design and Construction Top Management Commitment Competent Staff Line Management Commitment Contract Requirements Implementation
191

Conclusions
Pro-active rather than Reactive Forward Looking Open Communication
192
Its the Law

Project Management Law #51 Project Risk can never be eliminated, it can only be mitigated
193
SUCCESS FACTORS
194
Its the Law

Project Management Law #49 Success depends on People, Procedures & Tools
195
Success Factors
Functionality Quality
Budget
Schedule No Residual Problems Disputes
196
Functionality
Implies performance consistent with Original Concept Requires complete and accurate communication among the Project Participants
197
Functionality
Performance consistent with Original Concept
How the Project Manager scoped the Project
How the Engineer designed it
How the Procurement Dept. ordered it
How the Contractor installed it
198
Functionality
What the Owner actually wanted
199
Functionality
Communication:
Clear Concise Meets Participants/Stakeholders expectations Properly Documented
200
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
201
Assuring Project Success

Implementation Monitoring / Updating (all of above)
202
Its the Law

Project Management Law #53 Things always work out in the end If they havent worked out yet, youre not at the end
203

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PROJECT MANAGEMENT

Presentation at CEPT University To Post Graduate Students

by Jay Pandya, P.E. January - April 2012

Its the Law

Process of using a series of Objectives to achieve specific goals

Stakeholders with Differing Needs and Expectations

Its the Law

Project Management History

Project Management History contd.

Project Management History contd.

Project Management History contd.

Project Management History contd.

Project Management History contd.

Project Management History contd.

Project Management History contd.

Project Management History contd.

Its the Law

Opportunity to Influence Project Goals

(Cost, Schedule, and Quality)

Its the Law

Shop Drawings & Submittal Requirements

Cost Control & Budget Monitoring

Regulatory Agencies Approvals Closeout Audit

STAKEHOLDERS AND THEIR ROLES

Its the Law

Stakeholders And Their Roles

Stakeholders And Their Roles

Stakeholders And Their Roles contd.

Stakeholders And Their Roles contd.

Project Stakeholder Roles

Commission & Closeout

Stakeholders And Their Roles contd.

Stakeholders And Their Roles Contd.

Stakeholders And Their Roles Contd.

Stakeholders And Their Roles Contd.

Stakeholders And Their Roles Contd.

Commission and Closeout

Stakeholders And Their Roles Contd.

Stakeholders And Their Roles Contd.

Stakeholders And Their Roles Contd.

Stakeholders And Their Roles Contd.

Stakeholders And Their Roles Contd.

Stakeholders And Their Roles Contd.

Planning Design and Engineering Construction Commission and Closeout

Managing Stakeholders' Expectations a Challenge Conflicting Interests

Delivery Alternatives contd.

Delivery Alternatives contd.

Delivery Alternatives contd.

Delivery Alternatives contd.

Delivery Alternatives contd.

Delivery Alternatives contd.

TRADITIONAL or FAST TRACK DELIVERY

Delivery Alternatives contd.

Delivery Alternatives contd.

PRIVATE ORGANIZATION SPV

FAST TRACK DELIVERY

Delivery Alternatives contd.

Delivery Alternatives contd.

Delivery Alternatives contd.

SPV Usually Made up Of

Delivery Alternatives contd.

Its the Law

Project Control contd.