Module 1 Principles of Construction Management [PDF]

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CE168P/A1 Principles of Construction Management



Module 1 Introduction to Construction Management



Project Management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. Meeting or exceeding stakeholder needs and expectations invariably involves balancing competing demands among:



Scope, time, cost, and quality. Stakeholders with differing needs and expectations. Identified requirements (needs) and unidentified requirements (expectations)



The term project management is sometimes used to describe an organizational approach to the management of ongoing operations. This approach, more properly called management by products, treats many aspects of ongoing operations as projects in order to apply project management to them.



Although an understanding of project management is obviously critical to an organization that is managing by projects in detailed discussion of the approach itself is outside the scope of this document.



Construction Management refers either to the study and practice of the managerial and technological aspects of the construction industry (including construction, construction science, construction management, and construction technology), or to a business model where one party to a construction contract serves as a construction consultant, providing both design and construction advice.



Management Objectives



Functions



or



Planning is the ongoing process of developing the business' mission and objectives and determining how they will be accomplished. Planning includes both the broadest view of the organization, e.g., its mission, and the narrowest, e.g., a tactic for accomplishing a specific goal.



Organizing



is establishing the internal organizational structure of the organization. The focus is on division, coordination, and control of tasks and the flow of information within the organization. It is in this function that managers distribute authority to job holders.



Staffing is filling and keeping filled with qualified people all positions in the business. Recruiting, hiring, training, evaluating and compensating are the specific activities included in the function. In the family business, staffing includes all paid and unpaid positions held by family members including the owner/operators



Leading or Directing is influencing people's behavior through motivation, communication, group dynamics, leadership and discipline. The purpose of directing is to channel the behavior of all personnel to accomplish the organization's mission and objectives while simultaneously helping them accomplish their own career objectives.



Controlling



is a four-step process of establishing performance standards based on the firm's objectives, measuring and reporting actual performance, comparing the two, and taking corrective or preventive action as necessary.



Eight M’s of Management MANPOWER (MEN) – skills, talents, team MONEY – cost, budget, finance MACHINES – tools, equipment, systems MATERIALS – facilities, supplies METHODS – traditional, scientific MOMENT – time MANAGEMENT – management information systems MOTHER NATURE – environment



Project is defined as an endeavor wherein people, supplies, and money are coordinated in an unusual way to undertake a unique scope of work of a given standards and specifications, within constraints of cost and time, so as to accomplish beneficial change defined by quantitative objectives. This connotes that a project has specific objectives, time boundaries, and an explicit budget that limits the amount of human, financial and material resources that can be used to complete a unique venture.



The Six Main Characteristics of a Project are: 1. It is a temporary endeavor with a specified beginning and end and it involves definable sequences of steps of activities 2. It uses resources like manpower, equipment, and money that have been specifically apportioned to each phase of the project. 3. It produces a unique outcome, wherein such outcome also has specific goals of quality and performance.



4. It follows a planned and organized scheme to meet their goals and objectives 5. It depends largely on a group of people called Project Team to get it done. 6. It always has a unique set of stakeholders.



Project success can be measured as follows: 1. Stakeholder needs and Customer Satisfaction. Customers are satisfied when you provide a deliverable that meets their needs and exceeds their expectations. The project team must identify early the project stakeholders, determine their requirements and find ways in managing and influencing those requirements in order to ensure a successful project.



2. Organizational Approval. Identifying and satisfying the needs of the organization, wherein these needs will result in making a profit or developing capability in a new area of technology.



3. Gained Experience and Knowledge by the Project Team and the Organization. The team and the organization learn something as a result of the projects so that next time they can build their success and avoid mistakes. The success of projects varies according to the nature of the project, and culture of the organizations the person involved.



Key success factors for project implementation: 1. Project Mission Project Mission represents the overall goal of the project. Goals and objectives must be clear and concise where all team members know and fully understand. Without clear goals and agreement among all stakeholders, it will create chaos and devastating effects.



No project can be successful unless everybody concurs that they want the same thing done. The aim of identifying the mission of the project is to: Set direction for the project Identify expected outputs Ensure that the final deliverables will satisfy the customer Define constraints on the project



2. Top Management Support Developing and maintaining a good relationship with the top management is a key to making the overall project and its execution successful. The project managers need the support from the top management to supply all resources needed and remove organizational obstacles, since they rarely have enough authority of their own to execute the decisions and policies necessary to complete a project.



The top management is: An important ally in the project Shares the team to be successful Provides authority for the project to proceed Gives approval to changes



Assist in overcoming organizational and political obstacles



3. Project Schedule/Plan.



Project planning and scheduling organizes and summarizes the tasks necessary to complete the project. The following criteria are to be considered before the project schedule/plan is made:



Charter of the project



Scope, goals, and objectives of the project Major milestones Detailed plan listing the major activities needed to be completed for each milestone Outline of the risks and concerns



4. Client Consultation and Acceptance Projects exist to satisfy a customer. Project teams often have difficulty identifying the customer, understanding clearly what the customer needs and wants, and then translating that set of wants into customer requirements that the customer can understand and agree to.



The best way to ensure that the deliverable from the customer meets the customer needs and wants is to involve the customer in project process, particularly in the early stages when the scope of the project is being defined. This helps to avoid dissatisfied customers, continual change to scope, and it also creates customer buy-in and ownership for the project and its result.



5. Project Teams and Technical Tasks Project teams are responsible in accomplishing the technical tasks in the project. These tasks are the major activities that will make sure that the mission of the projects are realized. Team typically go through a team building process.



The five stages of team building are: Forming Stage – wherein team members are hired and get to know each other Storming Stage – team members know and question project objectives



Norming Stage – project policies and procedures are in-place Performing Stage – team members work effectively Disbanding Stage – team members are released from the project



6. Monitoring and Feedback Monitoring the current status of the project allows the project manager to track the progress of the project against the project plan. Tracking and getting feedbacks is not only done in the team meetings but also in the review meetings with key stakeholders.



A need for continuous monitoring of the environment within and around the project will ensure that the :



Final deliverables meet the customer acceptance criteria Project is on time and budget



7. Communication Communication is a challenge in project implementation, but it is particular challenge when it involves many people working in the organization. Lines of communication between the team, customer and other stakeholders must be established.



There are two kind of communication. Internal Communication Internal communication happens primarily through team meetings, voice mail and e-mail. The project manager must establish a schedule for a team meeting using good meetingmanagement techniques. Effective meetings go a long way to establish productive lines of communication.



External Communication. External communications are those between the project manager, sponsor, and customer. In addition to the interactions that occur in developing and approving the project, the sponsor and customer need on-going updates on project status and change requests.



8. Trouble-shooting All projects experience problems during the implementation stages. The process of handling these problems is a big challenge for the project teams. A project manager is informed on problems being encountered in the project and he allocates it to the person that he thinks is responsible.



Project Management Knowledge Areas 1. Project Integration Management gives a detailed account on the processes required to ensure that the various elements of the projects are properly coordinated. It consists of project plan development, project plan execution, and integrated change control.



2. Project Scope Management gives detailed account on the processes required to ensure that the project includes all work and only the work required, to complete the project successfully. It consists of initiation, scope planning, scope definition, scope verification, and scope change control.



3. Project Time Management gives detailed account on the processes required to ensure timely completion of the project. It consists of activity definition, activity sequencing, activity duration estimating, schedule development, and schedule control.



4. Project Cost Management gives a detailed account on the processes required to ensure that the project is completed within the approved budget. It consists of resource planning, cost estimating, cost budgeting, and cost control.



5. Project Quality Management gives a detailed account on the processes required to ensure that the project will satisfy the needs for which it was undertaken. It consists of quality planning, quality assurance, and quality planning, quality assurance, and quality control.



6. Project Human Resource Management gives a detailed account on the processes required to make the most effective use of the people involved with the project. It consists of organizational planning, staff acquisition, and team development.



7. Project Communications Management gives a detailed account on the processes required to ensure timely and appropriate generation, collection, dissemination, storage, and ultimate disposition of project information. It consists of communications planning, information distribution, performance reporting, and administrative closure.



8. Project Risks Management gives a detailed account on the processes required concerned with identifying, analyzing, and responding to project risk. It consists of risks management planning, risk identification, qualitative risk analysis, quantitative risk analysis, risk response planning, and risk monitoring and control.



9. Project Procurement Management gives a detailed account on the processes required to acquire goods and services from outside the performing organization. It consists of procurement planning, solicitation planning, solicitation, source selection, contract administration, and contract close-out.



References: Fryer, Barry, Fryer, Marilyn, et. al. The Practice of Construction Management, Balackwell Pub. 2004 Gould, Frederick E. Construction Project Management. Prentice Hall. 2009.



Levy, Sidney M. Project Management in Construction. Prentice Hall. 2000. Nunnaly, S. W. Construction Methods and Management. Prentice-Hall. 2001.



References: Oberlender, Garold P.Project Management for Engineering, McGraw-Hill. 1993.



Sarausad, Fidel R. Construction Project Management User’s Manual. 2004 Schexnayder, Clifford J. Construction Management Fundamental. McGraw-Hill. 2004. Tiongson, Alicia, et. al., NCPDP – Construction Management Handbook,”Introduction to Construction Industry”. First Edition. Construction Manpower Development Foundation, Inc. 1998



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