MODULE 1 8th semester project PART 1.pptx

The student notes for architecture 8th semester

1. CONSTRUCTION PROJECT MANAGEmeNT_ Unit 1 CLASS 1

2. INTR0DUCTION Topic: Introduction to Project, its Stages and Construction Project management: Project, Organisation, need for management of building/construction projects, Principles and Objectives of Project Management, brief understanding about study areas in Project Management. Types of Construction Projects, Life Cycle Stages of a Project (Construction Project).

3. Management Management  is the administration of an organization, whether it be a business, a not-for-profit organization, or government body. Goals - Long-term aims that you want to accomplish. Objectives - Concrete attainments that can be achieved by following a certain number of steps. Goals and objectives are often used interchangeably, but the main difference comes in their level of concreteness. Objectives are very concrete, whereas goals are less structured.

4. Management FUNCTIONS Traditionally management functions are grouped under 5 categories Planning Organizing Staffing Directing or Leading Controlling Function of co-ordination is common to all these functions These functional area with some adjustments on account of special characteristics of construction project, are equally applicable in project management.

5. What is a Project ? A project is defined as a temporary endeavour undertaken to create a unique product/service/results. The product in case of construction project is the constructed facility such as building , bridge , highway , dam, canal , industries etc OR It’s a collection of activities that are related or connected for developing a product or a service Project has always Start and end time Project

6. CHARACTERISTICS OF PROJECTS Involving in single definable purpose or end item. Purpose is specified in terms of cost, schedule, and performance requirements Uniqueness A project requires doing things differently than before and never repeated. A temporary activity. Undertaken to accomplish a goal within specified time. Utilizing skills and talents from multiple professions and organizations Requires multiple skills that rely on task interdependencies which may introduce new and unique problems. Task and skill requirements change from project to project Possibly unfamiliar. Encompass new ideas, approaches or technology Failure of the project jeopardize the organization or its goal Process of working to achieve a goal. A project passes through several distinct phases, tasks, people, organizations and resources change as the project moves from one phase to the next. Distinguish project nature makes it necessary to employ a kind of management suitable – thus the emergence of PROJECT MANAGMENT

7. CONSTRUCTION MANAGEMENT VS PROJECT MANAGEMENT WHAT IS PROJECT MANAGEMENT? Project management is the application of processes, methods, knowledge, skills and experience to achieve the project objectives. Project management is the application of knowledge, skills and techniques to execute projects effectively and efficiently. It’s a strategic competency for organizations, enabling them to tie project results to business goals Also known as “ The use of integrated systems, resources and procedures by the Project Team to successfully accomplish the planning design and construction of the intended project to the satisfaction of the owner.” WHAT IS CONSTRUCTION MANAGEMENT? Act of Managing the Construction process in a project .

8. Construction managers will manage only the construction portion of the product . The CM is an expert in building trades including electrical, carpentry, plumbing and general construction. They oversee day-to- day operations from pre-construction through the project punch list. Essentially, a CM is a project manager with a specific area of knowledge . A construction manager is involved in personnel management at the construction site. The CM will ensure that materials are delivered on time, that tools are available and that resources are properly allocated . CONSTRUCTION Manager

9. CONSTRUCTION INDUSTRY Man has indulged in some form of construction activities from dawn of civilization. Even during ancient times man created architectural marvels like Egypt Pyramid, Great Wall of china, Angor wat temples and so on. In present world, technical break through have revolutionized construction industry. Modern constructions include high rise buildings, dams, irrigation networks, power plants, Industrial plants, infrastructure facilities like like roads, bridges, railways, airports and seaports etc. Market of construction business is both domestic as well global

10. CONSTRUCTION – DOMESTIC MARKET Construction is everlasting activity across the globe Industry is profitable like any other business and fluctuates according to the law of demand and supply Construction activities constitutes 8-10% of GDP (gross domestic product) More than half of fixed capital formation as infrastructure and public utilities capital works Construction activities contributes to the economic growth of the country Growth rate of construction outstrips that of population and GDP Construction generates more employment than any other sector

11. CONSTRUCTION – INTERNATIONAL MARKET During 80’s middle east accounted for over 1/3 of global construction market Asia and Africa held only 20% of global construction market Developed countries like USA, German, Russia have dominated in construction of power and process plants which requires high degree of sophisticated technology. Developing countries like south korea and India have concentrated more on the repetitive and routine types of construction works. The need of construction management The construction industry is the largest industry in the world. Growth in this industry in fact is an indicator of the economic conditions of a country. This is because the construction industry consumes a wide employment circle of labor. While the manufacturing industry exhibit high-quality products, timelines of service delivery, reasonable cost of service, and low failure rates, the construction industry, on the other hand, is generally the opposite. Most projects exhibit cost overruns, time extensions, and conflicts among parties

12. PARTICIPANTS / STAKE HOLDERS involved in construction project Construction Business Promoters – Govt./Public/Private Property Developer Project / Construction management consultant firms Architect – Engineering associates Construction manpower and training agencies Construction Materials developing, manufacturing, trading firms Quantity Surveyor Construction Plant and Machineries Banking and Finance Institutions Risk Insurances and Legal services companies Construction quality assurance, research and development companies Contractors and Contracting firms

13. Project planning and management Cost Management. Schedule/Time Management. Scope Management. Quality Management. Safety/Risk Program Management. Human Resource Management Material Management Project Procurement Management Contract Administration. Leadership Project management function

14. PROJECT OBJECTIVES 6 Factors determines the outcome of the project 1. Size of project - number of tasks or activities to be executed / quantities of work 2. Complexity of project – variety in the nature of task 3. Quality – accomplishing the task with standard specifications 4. Productivity - Planned effort for production / actual effort employed per unit 5. Completion time – speed with which the project to be executed 6. Cost – Expenditure which client has agreed

15. PROJECT management OBJECTIVES Control time, scope, cost and quality. Apply integrated systems and procedures to achieve the owner’s goals. Encourage professionalism, teamwork and “ownership”. Provide leadership to all project stakeholders. Manage and resolve key problems that affect scope of work.

16. Cost Control – Complete within the owner's budget. Time Control – Finish within the owner's required timeframe. Quality Control – Meeting final product expectations, objectives, standards and intended purpose. Scope – Complete in accordance with design, legal, contractual parameters. PROJECT management goals

17. ROLE OF PM Project Manager aims to achieve the project mission by Managing Time and Progress Cost and Cash flow Quality and Performance Organization behavior With Organization resources By Planning resources Scheduling resources Organizing resources Directing resources Monitoring resources Controlling resources Within Time / Cost / Quality/ Environment constraints

18. ROLE OF PM A person in-charge of overall project planning and execution of a project is called as Project Manager A project manager runs all aspects of the real estate project. This includes everything from the initial planning, site selection and analysis, design, procurement, construction and the physical move. Because the PM is responsible for the project budget and schedule, it is beneficial to have an independent resource. The PM will be keenly aware of anything that will extend the project schedule and inflate the project budget and aims to mitigate those risks. A project manager is brought on at the inception of a real estate project and therefore has a comprehensive understanding of the client’s goals. A project manager works very closely with the client to gain a comprehensive understanding of all aspects of the real estate project. More than knowing what the client needs out of their physical space, a project manager has the knowledge from the client to understand the specific needs so that the end result is precisely what the client wants. The main difference is the level of authority. A CM oversees all construction activities. A PM supervises the CM. The project manager has greater responsibility to the project, as he/she oversees more than the construction process. Therefore, a project manager will often supervise a construction manager.

19. ROLE OF PM Ensures that there are clearly stated, comprehensive agreements between parties . Ensures that there are clearly drawn, accurate and complete contract documents . Provides fair, fast, inclusive and timely decision‐making. Promotes and seeks agreement for pre‐ planned resolution procedures Provides personally effective people skills – Disagreeing without being disagreeable – Arguing issues, not eg Resorting to “ higher authority ” quickly. Providing proactive leadership to the project.

20. CHARACTERISTICS OF PROJECT manager A single person –Project Manager heads the project organization and operates independent of normal chain of command. PM is focal point for bringing together all efforts towards single objective Project requires variety of skills and resources . Actual work will be performed by different functional area or by outside PM is responsible for integrating people from different functional discipline PM directly controls the functional departments from start till end of activities. Project focus on delivering a particular product or service at certain time and cost to the satisfaction of technical requirements Decision making, accountability, outcomes and rewards are shared among members of project team and functional units

21. Project organization is temporary in nature . As the project ends the project organization is debanded and assigned to a new project Project Management sets numerous other support functions into motion such as personnel evaluation, accounting, procurement and information systems. Projects involve the efforts of different units from within and outside the organization , depending vertical chain of command for authority and communication is time consuming and causes frequent disruption and delay of work . In traditional organization the formal line of communication is often bypassed to expedite the work The virtue of these informal lines is recognized and formalized through the creation of horizontal hierarchy that augments the vertical hierarchy Hybrid org. form enables personnel in different work units to form highly integrated project groups . Traditional organizations have rigid, unchanging structures and cannot quickly adjust to change . CHARACTERISTICS OF PROJECT manager

22. Given the temporary nature of the project , an organization that works on a stream of projects must be flexible and able to alter its structure and resources to meet the shifting requirements. Project needs a support of many departments where no one is responsible for project goals. Project manager is assigned responsibility. Project goals have more emphasis than functional goal PMs are often depend upon people who are not “under” them but who are “assigned” under them from other part of organization. Task of PROJECT MANAGER is complicated and diverse than other type of managers CHARACTERISTICS OF PROJECT manager

23. TRADITIONAL AND MODERN APPROACH

24. TRADITIONAL ORGANISATIONAL BEHAVIOUR Traditional organization structured as pyramidal hierarchy with vertical superior – subordinate relationships departmentation along functional, product and geographical boundaries. Authority flows from highest level to the lowest level . Formal communications similarly directed downwards along the chain of command. Traditional functional organizations are very efficient and suited for stable environment (uniform product in unchanging market) Tend to be rigid and unsuitable for performing work that is unique or requires adaptation to unstable and dynamic environments

25. PROJECT CONSTRAINTS All the projects are traditionally carried out under various constraints like time, cost and scope These important factors “ triple constraints ” are often represented as triangle Each constraints forms the vertices with quality as the central theme. Project must be delivered within cost Project must be delivered on time Project must meet the agreed scope – no more, no less Project must also meet customer quality requirements. TRIPLE CONSTRAINTS

26. PROJECT MANAGEMENT - DIAMOND Triangle has given away as project management diamond . Cost, time, scope and quality are four vertices with customer expectation as central theme. No two customer expectations are same, so one should ask questions about customer requirements Cost: All projects have finite budget ; If you reduce the project cost you will either have to reduce its scope or increase its time. Time (schedule): Time is Money . When you reduce the project’s time, you will either have to increase its cost or reduce its scope. Scope: Many projects fail in this constraint because scope of project is either not fully defined or understood from start. When you increase a project scope, you will either have to increase its cost or time.

27. Project phases and life cycle

28. PROJECT MANAGEMENT FUNCTIONS Traditionally management functions are grouped under 5 categories Planning Organizing Procuring Directing or Leading Controlling

29. PLANNING Planning involves deciding in advance what is to be done. Schedule depicts when the planned activities to be carried out. Planning and scheduling involves following activities Crystallizing objectives Controlling and Synthesizing information Developing alternative course of action within specified constraints Comparing alternatives in terms of objectives feasibility and consequences Selecting and Scheduling optimum course of action . Establishing policies, procedures, methods, schedules, programs, systems, standards and budgets for accomplishing project objectives.

30. ORGANIZING Organizing is the process of establishing a structural relationship among functions of people, so as to formulate an effective machinery for streamlining the achievement of assigned objectives. Organizing involves following main tasks Dividing the work into component activities Designing job structure Defining performance targets and responsibilities Allocating resources Delegating authority commensurate with responsibility Establishing structural relationship to secure co-ordination.

31. PROCURING It implies managing and keeping manned , the positions created by organization structure and providing them the right quality resources at the right time. These resources include people, materials, machinery and money . Connected project management tasks are:- Prepare resource procurement schedule Developing specifications for required resources Deciding appropriate sources of procurement Budgeting resources and arranging approvals and purchases Preventing waste during resource holding at site Supplying on time required quality and quantity of resources

32. DIRECTING It involves influencing people so as to enable them to contribute to the organizational goals efficiently and effectively . Directing implies the following tasks Providing effective leadership Motivating participant’s behavior Communicating instructions and orders Providing a suitable climate for subordinates development

33. CONTROLLING Controlling involves the monitoring or performance and applying corrective measures in case of deviations from the plan. The process of control measures shall be sub divided as follows:- Specifying the factors to be controlled Stating the methods of measuring control factors Evolving systems for generating performance data Monitoring data received and formulating corrective options Applying corrective measures to put a plan on the scheduled path Re-planning when necessary.