Overview of project management in engineering environment

Overview of project management in the engineering & construction environment

Project Management

The main topics

Overview of Project Management in Engineering & Construction Environment 2

Setting the scene - Definitions

Project management methodology

Life cycles – various perspectives

Project management functions and processes

Project success

Case Studies

Setting the Scene

Operations and Projects

Business-as-usual

Business change

Another View

From PMI Publication

Project Owner vs. Service Provider

Careers Perspective

Something to think about: where do you see yourself?

What is a project? (PMBOK® Guide)

“A project is a temporary endeavor undertaken to create a unique product,

service, or results”

The focus here is on the output for a project

Material from the PMBOK® Guide has been reproduced with the permission of PMI

What is a project? (SUKAD)

We add to the PMI definition:

A project is anything we create from scratch or a major change to an existing system,

That requires (major) effort in terms of planning and delivery, and

It creates value to the organization, realizing the benefits expected when authorizing the project

Definition: Project Management

“Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements”

PMBOK® Guide, Chapter 1

Project Management Methodology

Product Life Cycle

Project Life Cycle

ProjectIf this box represents a project?

Then, a project life cycle represents how to transform an idea (concept, vision, goal) into

reality, producing benefits!

Phases and Stages

Project Life Cycle

Phase 1 Phase 3Phase 2

Stage 1

Stage 2 Stage 3 Stage 4 Stage 5 Stage 6 Stage 7 Stage 8

Deliverables and Gates

A Deliverable is the output of a given stage

A Gate is stage/phase Exit: decision point

Customized: Construction Project

Service Provider Perspective

Project Management Functions and Processes

A process

A process is a series of actions (using tools and techniques) to bring about a result

Input is what we need before we start …

Output is what we get when done

To achieve output, we use tools and follow certain techniques

Tools and TechniquesInput Output

P-D-C-A

P-D-C-A – 2

PM process groups within a phase

PMBOK Guide

The knowledge areas

Integration

Quality

Communication

Procurement

Stakeholders

Process groups repeating along PLC

PMBOK® Guide versus CAM2P™

Small & simple projects

Use the standard model; and modify as necessary

Or, the modified process groups

Medium & moderate projects

Large & complex projects

Overview of Planning and Control

WBS: a critical initial step

Time (Schedule)

Cost (CBS)

People (RBS)

Communication

Risk (RBS)

Procurerement

France

Tour Eiffel Louvre Arc de Triumph

Coliseum

Venice

Another sample WBS: trip project

Project Success

SUKAD four dimensions of success

This first dimension focus on the product of the project.We measure success at the time of handover and final acceptance.We measure it in comparison to project plan (design, specifications, standards, etc.)

The first dimension

Close (COR)

Initial Ops

Concept/ Feasibility

Project Definition (Detailed Plan)

PM Planning

1 2 3 4

Implementation

D1: Success of the Product

This second dimension focus on project management. We measure at the time project close out.We measure it in comparison to the project management plan (time, cost, etc.)

The second dimension

D2: Success of Project Management

Close (COR)

Initial Ops

PM Planning

1 2 3 4

Implementation

The third dimension

D3: Success of Project

Close (COR)

Initial Ops

PM Planning

1 2 3 4

Implementation

This third dimension focus on project delivery. We might be able to measure at acceptance but often not possible until later.We measure it in comparison to the project authorization (charter).

This fourth dimension focus on the project business case and objectives. Most likely we cannot measure this at acceptanceWe can only measure after completion; possibly months or years later.We measure it in comparison to the Idea Statement (Business Case/Feasibility).

The fourth dimension

Close (COR)

Initial Ops

PM Planning

1 2 3 4

Implementation

D4: Success of The Idea – Business Objective

Case Studies

Case Study: Project Success

Pipe and valve vendorsWanted to build a gym in warehouse facilityWhat would you do if you are the PM?Most PM will build a gymSo if we build the gym, per specification, can say we have achieved success?How about completion per time and cost parameters, is this success?

Case study, continued

We asked the question: “Why are we building a gym?”The answer is: “We are building a gym to improve employees health”Is the project different? If yes – how?Would you do anything different in term of deliverables of the project?From project success perspective, would that make a difference to how to deliver project?

Case Study 2: “Building” Project

Project was to build a certain “building”

Project completed

Significantly over budget (x10),

6 years later than planned

Is this project successful?

What could help us decide?

Case Study 2, continued

How about this:

“The ----- is a great architectural work of the 20th century that brings together multiple strands of creativity and innovation in both architectural form and structural design.”

“Outstanding Universal Value “ ----- is positioned as a world-famous icon of architecture. The building is a great artistic monument and an icon, accessible to society at large.

Is this project successful?Ref. UNESCO Website

Dimensions of success – CS2

Case Study: Geotechnical

Major project in Dubai – housing communityPreliminary sub-surface investigation

Consultant requested more – client refused

Result: 40+ villas are useless due to differential settlement – causing cracks and other damage

Similar project in Abu DhabiHouses were sinking

Discovered underground voids collapsing with time

Case Study: Design Errors

Building to house doctors clinicsEngineering did not fully understand purposeToday, one can perform outpatient surgery in clinics

ResultsNormal corridors and elevators

• Cannot bring in patient on stretchers

No UPS facilities

Two Mega Projects

Projects’ Common Factors

Both projects were about equal in valueBoth ~ US$ 2 – 4 billion in today market

Both projects were joint/triple venturesBoth projects parts of larger programsIncluded: major grass root facilities

Included: modifications within existing refineries owned by one of the partners

Material Procurement & Sourcing

Projects’ Differentiation Factors – 1

Contract: commercial aspectsAP: reimbursable cost/cost plus incentive

• Incentive for Cost, Safety, and Schedule

UP: fixed price (initially open book)

Contract: execution approachAP: EPCM + multiple construction contracts

• Engineering: UK // Construction: SE Asia

UP: EPCM + 1 general contractor

EPCM: Engineering, Procurement, and Construction Management

Projects’ Differentiation Factors - 2

AP: was on a small island

About 60% of area reclaimed from sea

Engineering in Europe

UP: was inland

No major logistical challenges

Engineering office 2 hours away by car

The USA Project

Overview of Project Management in Engineering & Construction Environment

Capital Investment Risk Continuum (Contract Types Versus Risk)

Figure not by the author – download from internet and source is lost

Which project was a success

What made the difference?

PM maturity: major contributing factorTeam size & experience: significantSenior stakeholders involvement: crucialProper pre-planning; impact on changeCommunicationFor AP a major focus

For UP monthly reports an email

Once again: careers perspective

Something to think about: where do you see yourself?

Thank you

@mounirajam@SUKADgroup

Overview of project management in engineering environment

Leadership & Management

A Collaborative Engineering Environment for …webserver2.tecgraf.puc-rio.br/~mgattass/teses/2010Te...A Collaborative Engineering Environment for Visualizing Engineering Simulations

Integrated engineering environment for the process Integrated engineering environment for the process ... FPSO projects will grow along with ... Integrated engineering environment

An Overview of the CapDEM Integrated Engineering Environment · An Overview of the CapDEM Integrated Engineering Environment Sylvia Lam DRDC Ottawa Shiva Poursina MLTS Inc. Ottawa

LAPS Engineering Overview

Session #8 engineering & environment

Engineering Specialist Overview

Drurys Engineering Overview

Cisco Base Environment Overview

Reservoir Engineering Overview

ENGINEERING & THE BUILT ENVIRONMENT

Requirements Engineering Overview

Faculty of Engineering and the Built Environment · Faculty of Engineering and the Built Environment POSTGRADUATE SCHOOL OF ENGINEERING MANAGEMENT The Engineering Management programmes

Lithuanian Business Environment Overview

Water Engineering & Environment (WEE)

Engineering the Environment: Regulatory Engineering at the ...Engineering the Environment: Regulatory Engineering at the U.S. Environmental Protection Agency, 1970-1980 Jongmin Lee

Managed learning environment overview

Project environment 1) Round trip engineering 2) Change management 3)Infrastructures. 4)Stakeholder environments. Overview of process Automation

Environment Law Overview

Business Environment Course Overview

Sigma Knowledge Engineering Environment