Journeyman Welding

& Piping Services Intl.

Corporation
Fundamentals of Project
Management

Concept Of Project

Project General Services in the areas of Oil &

Gas Plant construction & maintenance onshore /
offshore etc. the term common to all.
Faster Mobilization.
Only Qualified Personnel to perform the job
Quality is our only guarantee to client
Safety Oriented group
Efficient & Reliable

Project ?...
It starts from a scratch with a define
mission, generates activities involving a
variety of human and non human
resources directed towards fulfillment of
the mission and stops once the mission is
fulfilled.
The project management

Characteristics Of Project
Objectives
Life span
Single entity
Team work
Life cycle
Uniqueness
Change
Successive principle

Characteristics Of Project
Ready personnel for any type of
mechanical construction
Faster mobilization local and overseas
project destination onshore/offshore
Quality personnel to be deployed
High level of sub contracting
Risk and uncertainty

Project Family Tree

PLAN

PROGRAMME

PROJECT

WORK PAKAGE

TASK

ACTIVITY

Project Manager
Filipino context- project manager and
projects.
Problems faced Everything is unknown and uncertain.
Scope comes clearly after passage of
time.

Who can be a project manager?..

Engineer
Vendors
Contractors
Government bodies etc.
Well experience individual for the project
Success criteria- completion of task, time
of completion, budget, performance of the
hardware build, etc.

Basic Education Of Project

Manager
Engineering for engineering projects.
Post Graduate course in project management.
Real education change the mental make up.
Some do it without education.
TIME COST QUALITY
Project management association.
Correspondence course with real experience.
Communication skills
I will always choose a lazy person to do a difficult job
becoz definitely he will find an easy way to do it
---Vince Menchavez

Roles And Responsibility Of Project

Manager

Defining and maintaining the integrity of a

project.
Development of project execution plan
Organization of project execution plan.
Setting targets and development of systems and
procedures for accomplishment of project
objectives and targets.
Negotiation for commitments.
Direction, coordination and control of project
activities.

Roles And Responsibility Of Project

Manager
Contract management
Non human resources management
including fiscal matters
Projectising and problem solving
Man management
Satisfaction of customers, private and the
government.
Achievement of project objectives, cash
surplus and higher productivity

Projects
Onshore project
Offshore project
Sub Contracting project
Supply Chain

Need of project manager

From first day start searching.

Some doesnt appoint, they are not aware of
benefits.
Difficulties in execution of plan
Unable to estimate losses and responsibility
Priority for corporate
No one free to become PM
Outside PM for short time
CEO dont have time
So no PM means NO TARGET of time , cost ,
quality, and performance

The Project Team

Diff project have diff staff needs.
Behavioral issues in managing team.
Team members.

The Project Team

Members / roles
Project engineer: in-charge of product design,
development, functional analysis, specification,
drawings, cost estimates, quality/reliability,
engineering changes and documentation.
Manufacturing engineer: production of the
product and process the engineer design,
manufacturing design, tooling, production
scheduling and tasks etc.

The Project Team

Field manager: responsible for installation, testing, and

support of production and process once it is deliver to
customers.
Contract administration: official paper work, keeping
track of customers changes, billings, complaints, legal
aspects, costs etc.
Project controller: daily accounts for budgets, cost
variances, labor charges, project suppliers, capital
equipments etc.
Support service manager: product support, sub
contracts, data processing and general management
support function.

Human Factors And The Project

Team
Technical fault or human problem?
Workmanship, professionalism.

Project life cycle

Every phase need appropriate attention at
their level.
Every phase is important
5 phases in project life cycle

Project life cycle phases

Conception phase :
Idea germinates
Try to overcome certain problems- funds,
plant, capacity, expertise etc
Solution to problems

Eg-

Project life cycle phases

Definition stage:
Areas to be examined
Raw material- quality and quantity
Plant size/capacity
Location and site
Technology /process selection
Project layout
Plant and machinery
Electrical instrumentation works
Civil engineering works
Utilities-fuel, power, water
Manpower/ org pattern
Financial analysis
Implementation scheduled

Project life cycle phases

Planning and organising phase:

Starts much earlier
Overlaps with definition stage and
implementation phase

Project life cycle phases

Planning and organising phase:

Project infrastructure and enabling services

System design and basic engineering package
Organisation and manpower
Schedules and budgets
Licensing and governmental clearance
Finance
System and procedure
Identification of project manager
Design basic, general conditions for purchase and
contracts
Site preparation and investigation
Construction resources and materials
Work packaging

Project life cycle phases

Implementation phase :
80-85 % of project work done in this phase
Project clean up phase:
Drawings, manuals, paper, documents handed
over to customer / management
Guarantee test runs
Project accounts closers, materials reconciliation
carried out, outstanding payments, due
collections etc.

Project life cycle curve

Level
of
contract

4% effort

8% effort
85% effort

Time

3% effort

Market Analysis
1.Situation analysis and specification of
objectives
Who are customers?
Total size of market
Yearly sales graph
Area
Potential customers
Channel of distribution
Immediate sales area

Market Analysis
2. Collection of secondary data
Census of target oil & gas company
National sample survey reports
Economic survey
Institution and other agency
Evaluation of secondary information

Market Analysis
3. Conduct market survey
Market and demand analysis
Define target population
Select sampling scheme and sample size
Develop questionaire
Recruit and train field investigation
Scrutinize the information gathered
Analyze and interpret the information

Market Analysis
4. Characterizations of the market
Effective demand in the past and present
Breakdown of demand
Price
Methods of distribution and sales promotion
Consumers
Supply and competition
Government policy

Market Analysis
5. Demand fore casting
6. Uncertainty in demand forecast
Data about past and present
Methods of forecasting
Environment drawings
7. Market planning
Market strategy

Technical Analysis
To insure that project is technically
feasible in the sense that all the inputs
required t set up the project are available.
To facilitate the most optimal formulation
of the project in the terms of technology,
size, location and so on.

Technical Analysis
Manufacturing process/ technology
Cement
Soap
Choice of technology
Plant capacity
Principle inputs
Investment outlay and production cost
Use by other units
Product mix
Latest developments
Ease of absorption
A.

Technical Analysis

Appropriateness of technology
Whether the technology utilises local raw material?
Whether the technology utilises local man power?
Whether the goods and services produced cater to the
basic needs?
Whether the technology protects ecological balance?
Whether the technology is harmonious with social and
cultural condition?

Technical Analysis
B. Technical arrangements
Technical know-how
Nature of support
Process and performance guarantees
Price of technology-one time licensing, periodic
royalty fee
R&D
Period of collaboration agreement
Sharing management control

Technical Analysis
C. Material and input utilities
Study of material and utilities
Four broad categories
1. Raw material
Agricultural products
Mineral products
Livestock and forest products
Marine products

Technical Analysis
2. Processed industrial materials and
components
3. Auxiliary materials and factory supplies
Chemicals, packing materials, paint, varnishes,
oils, grease, cleaning material, etc.
4. Utilities power, water, steam, fuel, etc

Technical Analysis
D. Product mix
E. Plant capacity
FNC-Feasible normal capacity
NMC- nominal maximum capacity
Technological requirements
Inputs consideration
Investment cost
Market conditions
Resources of the firm
Government policy

Technical Analysis
F. Location and site
Proximity of raw material and markets
Availability of infrastructure
Labour situation
Government policy
Other factors
Site selection

Technical Analysis
G. Machines and equipments
Constraints in selecting machineries and
equipment
Procurement of plant and machinery
H. Structures and civil works
Site preparation and development
Building and structures
Outdoor works

Technical Analysis
Projects charts and layouts:
General function layout- relationship between building,
equipment and civil works
Material flow diagram
Production line diagrams
Transport line diagrams
Utility consumptions diagrams
Communication layout
Organizational layout
Plant layout

PROJECT PLANNING

Project Planning
Initial project coordination:

Overall mission
Goals
Strategy of the organization
Outlining the scope of the project
Project lunch meeting
Technical scope is established
Basic area of performance responsibility accepted
Any tentative delivery dates or budgets set by the
organization are clearly noted
Risk management team is created

Project Plan Elements

Overview
Objectives
General approach- managerial and technical
Contractual aspects
Schedules
Resources
Personnel
Risk management plans
Evaluation methods

Project Planning In Action

Planning from start to completion
Sequence of things
9 Segments of projects are:
Concept evaluation
Requirement identification
Design
Implementation
Test
Integration
Validation
Customer test and evaluation
Operational and maintaince

ENVIRONMENT ANALYSIS
Environment impact assessment/
appraisal are considered to be the first
step in the process because they give an
opportunity to man to consider the effects
of his actions on the environment.
Example what you people do?.......
For/ against

Environment Analysis
Economic development is the result of the
interaction between natural resources and
technology supported by and designed for
people.
Example: nuclear power plant, petrol
engines, electricity, wind power solar
power etc.

Types And Dimensions Of

Projects
1.Cement, steel, paper, chemical etc.
Natural resources into saleable and
exchangeable products.
These projects inflict a large number of physical
changes and description on environment and
hence disturb the environment and ecological
system.
2. Produce render various kinds of services such
as health, education, transport, energy, defence,
law and order etc
Not much physical changes on the environment

Project Objectives
Intended objective
Unintended objective/ consequences
Social cost planned, unwanted, unanticipated.
Environmental analysis is the study of unintended
consequences on the environment done by
various projects
GOAL IS DEVELOPMENT WITHOUT DAMAGING
ENVIRONMENT

Stress On Environment

Eutrophic stress- release of various kinds os

waste into the rivers, lakes, other water bodies.
Exploitation stress- natural resources eg
agriculture, marine, forest
Distruptive stress- cutting of forests, factories,
industries in forest areas
Chemical and industrial

ERV
Environment resources/ values
Environmentalist developed this concept
Study of environment which benefits the mankind
4 important components are
Level 1- physical resources covering land, water and air.
Level-2- ecological resources consisting of aquatic,
terrestrial and endangered species
Level-3-human use values covering transport, agriculture,
water supply, recreation, mining, industry, flood control
etc.
Level-4- quality of life values covering socio economic,
cultural and aesthetic aspects

Environment 8 Attributes

Air
Water
Land
Ecology
Sound
Human aspects
Economics
Resources

Environment Appraisal Projects

Follow either
ER/Vs
EA
Impact vary on the nature of project
Impact analysis depend upon
Nature and size, type of projects such as manufacturing,
mining, logging, power, chemicals, sugar etc
Technology
Location / eco region such as urban or rural areas,
coastal, river valley, forest hill areas of any eco system.

Meaning And Scope EIS & EIA

EIA-Env Impact Assessment

EIS-Env Impact System

Helps in achieving objectives

NO ONE HAS ANY RIGHT TO USE THE
PRECIOUS RESOURCES RESULTING
IN GREATER LOSS THAN GAIN TO
SOCIETY- Funda of EIA & EIS

EIA

An activity designed to identify, predict,

interpret and communicate information
about the impact of an action on mans
health and well being . In turns, the action
is include any engineering projects,
legislative proposals, policy programme or
operational procedure with environmental
implication

EIS

A report based on studies disclosing the

likely or certain environmental
consequences of a proposed actions, thus
ascertain the decision makers, the public
and the government to environment risks
involved; findings enables better informed
decisions to be made, perhaps to reject or
defer the proposal action or permit it
subject it subject to specific conditions

Objective of EIS

To identify and describe (Qty) the environmental

R/Vs and EA which will be effected by the
proposed project under existing or with or
without project conditions.
Describe measure and assess the +ve and ve
effect which will increase ER/Vs or decrease it
Direct or indirect
Short term or long term
Alternatives which can reduces the effects

Guidelines On The Scope And

Contents Of EIS & EIA

Description of the project proposed action, technical

details
Proposed action to the land use plans, policies and
controls in affected areas
Probable impact of the proposal project on the EA and in
what quantity
Alternative to the proposed project
Adverse Env effect which cannot be avoided
Relationship between local short term use of resources
and maintainers of an enhancement of long term
productivity

Methodology for conducting an EIS

study
Quanitifying methods
Meaning parameters are rear and not well developed
Major problems in the study are
Diffused nature of impact both over time and space and
lags in impacts after caused worked
An environmental effect is the joint product of several
pollutants
Inadequate of techniques to estimate the impacts and
their
Costs
Since the impact are imperceptible people are not aware
of the impacts

Steps in Environment Approach

Make a rapid or quick scanning or appraisal of the basic
environmental resources eg. District level
Project surroundings zone using maps
Identify areas and describe all the environmental
attributes that will give us a total description of the Env
before the start of the project
Ranking of attributes depending upon their significance
Carry out item by item review of effects of the proposed
project on the already identify ER/Vs
Arrange/ group effects
Prepare remedial plans
Corrective
Compensatory
Enhancing

WBS-Work Breakdown Structure

Subdivided into smaller and smaller work

elements.
Hierarchical process is called the WBS
All the elements of the project in a hierarchical
framework and establishes their relationship to
the project items.
OBS-organization breakdown structure
Organizational units and individuals are
assigned responsibility for accomplishing
objectives.

WBS-Work Breakdown Structure

Level

Hierarchical breakdown
Project

Deliverable

Sub deliverable

Lowest sub deliverable

Cost account

Work package

Description
Complete project

Major deliverable

Supporting deliverable

Low management
responsibility level
Grouping of work package
For monitoring progress
And responsibility
Identify work activities

WBS- work breakdown structure

To review, each work package in the WBS
Defines work (what)
Identifies time to complete a work package (how long)
Identifies a time phased budget to complete a work
package (cost)
Identifies resources needed to complete a work package
(how much)
Identifies a single person responsible for units of work
(who)
Identifies monitoring points for measuring progress

TIME VALUE
OF
MONEY

Time LINE

A time line shows the timing and the

amount of each cash flow stream.

12%

12%

12%

12%

12%

12%

Time value of money

PV = present value
FVn= future value n years hence
Ct=cash flow occurring at the end of year t
A=a stream of constant periodic cash flow over
given period of time
r= Interest rate or discount rate
g= expected growth rate
n= number of periods over which cash flow
occur

Future value of single amount

1st
1000
100
2nd
1100
110
3rd
1210
121
1331
Formula
FV n =PV (1+r)n

Compound and Simple Interest

Compound interest formula
Future value= PV [1+No. of years *interest
rate]
PV = FV n [1/ (1+r)n ]

Doubling Period
0.35 +____69__
interest rate
Growth Rate
(1+g)

Present Value Of Uneven Series

PV n= A1/(1+r)+ A2/(1+r) n +..

Future Value Of An Annuity

An annuity is as stream of constant cash
flow (payment or receipt) occurring ar
regular intervals of time.
LIC