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!

Idea

Clos

ure

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

The


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

Scope

Time

Cost

Quality

HR

Communication

Risk

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


WBS

Q/SHE

Time (Schedule)

Cost (CBS)

People (RBS)

Communication

Risk (RBS)

Procurerement

Trip

France

Paris

Tour Eiffel Louvre Arc de Triumph

Nice

Italy

Rome

Coliseum

Venice

Spain

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

Idea

Concept/ Feasibility

Project Definition (Detailed Plan)

Pro

ject

P

lan

Han

dov

er

Ch

arte

r

Acc

ept.

PM Planning

PM

Pla

n

1 2 3 4

Implementation

5 6

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

Idea



Pro

ject

P

lan

Han

dov

er

Ch

arte

r

Acc

ept.

PM Planning

PM

Pla

n

1 2 3 4

Implementation

5 6

The third dimension


D3: Success of Project

Close (COR)

Initial Ops

Idea



Pro

ject

P

lan

Han

dov

er

Ch

arte

r

Acc

ept.

PM Planning

PM

Pla

n

1 2 3 4

Implementation

5 6

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

Idea



Pro

ject

Pla

n

Han

dov

er

Ch

arte

r

Acc

ept.

PM Planning

PM

Pla

n

1 2 3 4

Implementation

5 6

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


53

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

AP UP

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

Leadership & Management

Overview of project management in engineering environment