MODIBBO ADAMA UNIVERSITY, YOLA

DEPARTMENT OF BUILDING

COURSE COMPACT

Course Title: BUD 904: Information and Communication Technology

Course Overview:
This PhD course explores the advanced applications of Information and Communication
Technology (ICT) in construction management. Students will delve into computerised
management systems, financial modelling of projects, network scheduling using cutting-edge
project management software, expert systems for construction applications, and the latest
developments in Computer-Aided Design/Computer-Aided Manufacturing (CAD/CAM),
including robotics.

Course Objectives:
1. Understand the role of Information and Communication Technology in construction
management.
2. Explore advanced computerised management systems for efficient project
management.
3. Develop proficiency in financial modelling of construction projects using spreadsheet
software.
4. Gain expertise in network scheduling using the latest project management software.
5. Investigate the application of expert systems in construction management.
6. Explore the latest developments in CAD/CAM, including robotics, and their
implications for the construction industry.

Course Content:

Module 1: Information and Communications Technology

a) Information
b) Communication Technology
c) DBMS

Module 2: Computerised Management Systems

a) Overview of Computerized Management Systems in Construction
b) Implementation and Integration of Management Information Systems (MIS) in
Construction Projects

Module 3: Financial Modeling of Projects

a) Principles of Financial Modeling for Construction Projects
b) Advanced Techniques in Financial Analysis and Decision Making Using Spreadsheet
Software

Module 4: Network Scheduling with Project Management Software

a) Overview of Project Management Software for Network Scheduling
b) Advanced Techniques in Critical Path Method (CPM) and Resource Allocation

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Module 5: Expert Systems for Construction Applications
a) Introduction to Expert Systems and Artificial Intelligence in Construction
b) Applications of Expert Systems in Risk Management, Quality Control, and Decision
Support

Module 6: CAD/CAM Developments and Robotics

a) Evolution of CAD/CAM in the Construction Industry
b) Robotics and Automation in Construction: Applications and Challenges

Assessment:
• Assignments and Case Studies
• Presentations and Seminars
• Final Examination

Course Duration: 8 weeks (2 units)

Prerequisites: Master's degree in Construction Management or related field, basic

understanding of project management principles and information technology.

Course Delivery: Lectures, research projects, and discussions.

References:
1. Kymmell, W. (2008). Building Information Modelling: Planning and Managing
Construction Projects with 4D CAD and Simulations. McGraw-Hill.
2. Hardin, B. and McCool, D. (2015). BIM and Construction Management: Proven
Tools, Methods, and Workflows. John Wiley & Sons
3. Lynch, P. (2011) Financial Modelling for Project Finance. Euromoney Institutional
Investor PLC
4. Cartelli, A. and Palma, M. (2009). Encyclopedia of Information Communication
Technology. IGI Global
5. Schwalbe, K. (2011).Information Technology Project Management. Course
Technology, Cengage Learning
6. Abdul Razak, R. (2017). Handbook of Construction Management: scope, schedule,
and cost control. Taylor Francis, CRC Press.
7. Nam, J. (2016). Construction Scheduling with Primavera P6. AuthorHouse.
8. CADD (2011). Project Planning 8t Management Primavera Project Management
Workbook. CADD Centre.
9. Radhakrishnan, P., Subramanyan, S., and Raju, V. (2008). CAD/CAM/CIM. New Age
International (P), Publishers
10. Laudon, K. C. and Laudon, J. P. (2013). Essentials of Management Information
System. Person Education, Inc – Prentice Hall.

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LECTURE MODULES 1: INFORMATION TECHNOLOGY
This introductory note offers an overview of Information Technology (IT), its definitions,
purposes, benefits, and applications. Here's a condensed representation of the key points:

Introduction to Information Technology:

Information is crucial for any organisation, serving both design and management functions in
construction projects. While the Nigerian construction industry is increasingly adopting
information technology, its full potential remains largely untapped.

Definitions of Information Technology:

Information Technology (IT) encompasses the management and processing of information
through hardware, software, and data, including services for maintaining operational resources.
It involves the use of computers and software to manage information, as well as the study,
design, development, implementation, and support of information systems. IT includes
equipment and systems for data acquisition, storage, manipulation, and transmission,
facilitating the creation, exchange, and utilization of various forms of information.

Purpose/Functions of Information Technology:

IT serves multiple purposes, including improving organizational operations, achieving
profitability, optimizing processes, solving problems, supporting decision-making, enabling
effective communication, and managing information throughout its lifecycle.

Benefits of Information Technology:

IT offers several benefits, such as high processing speed, consistency in task execution,
efficient storage and retrieval of data, reliability in task execution, and enhanced
communication capabilities, including wireless connectivity.

Application of Information Technology:

IT finds applications across various sectors, including tourism, education, entertainment,
business, science, architecture, engineering, construction, and personal computing.
These notes provide a solid foundation for understanding the role and significance of
Information Technology in diverse fields, highlighting its potential for improving efficiency,
effectiveness, and communication in organisations and industries.

Components of Information Systems

Information systems consist of several key components: computer hardware and software
(equipment), databases (data), telecommunications systems, human resources (people), and
procedures.

People
People play various roles in information systems, including:
• Systems Analyst
• Programmer
• Technician
• Engineer
• Network Manager
• MIS (Manager of Information Systems)
• Data Entry Operator

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Equipment
Equipment encompasses both hardware and software. When considering equipment, think of
both components as integral parts of the system.

Procedures
Procedures are documented sequences of actions taken to achieve specific outcomes. They can
range from simple tasks to complex operations such as performing backups, shutting down
systems, and patching software.

Data
Data refers to raw, unorganized, discrete facts and figures that can be processed to generate
meaningful information.

Computer Software
Computer software is categorized into two main types: system software and application
software.

System Software: The primary system software is the operating system, which manages
hardware, files, and system resources, providing a consistent interface for controlling the
computer, often via a GUI.

Application Software: Application software is designed for specific tasks, available as ready-
to-use packages or customized solutions. Examples include general-purpose software like
spreadsheets and word processors, as well as industry-specific applications like package
tracking systems. Companies may also rent specialized software from application service
providers (ASPs) over the web.

Databases
Databases store collections of interrelated data organized for easy retrieval. Examples include
employee records and product catalogues. Customer databases are especially valuable for
designing and marketing products.

Telecommunications
Telecommunications connect computer systems and facilitate information transmission.
Network configurations vary based on organizational needs:
• LANs (Local Area Networks): Connect computers at a single site.
• WANs (Wide Area Networks): Connect computers at multiple sites.
• The Internet: A global network connecting millions of computers.

Human Resources and Procedures

Qualified personnel are essential for developing, operating, and maintaining information
systems. Training is crucial for maximizing system capabilities. Procedures for using and
maintaining systems are documented and must be established for tasks like running payroll
programs.

Types of Information Systems

Information systems are classified into five categories:
1. Office Information Systems (OIS): Enhance workflow and communication using
hardware, software, and networks.
2. Transaction Processing Systems (TPS): Capture and process day-to-day transactions.

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 3. Management Information Systems (MIS): Generate reports for decision-making,
integrating with TPS.
4. Decision Support Systems (DSS): Aid in decision-making by providing information,
models, or analysis tools.
5. Expert Systems: Computer programs that emulate human expertise in specific fields.

Office Information Systems (OIS)

OIS uses technology to streamline office tasks and communication. It includes tools for
creating documents, scheduling, and accounting, supported by hardware like computers,
scanners, and fax machines.

Management Information Systems (MIS)

MIS generates accurate, timely information for decision-making. It integrates with TPS to
produce detailed, summary, and exception reports, supporting management activities.

Decision Support Systems (DSS)

DSS helps users make decisions by providing analytical tools and models. It supports
unstructured and semi-structured decisions, allowing for simulations and projections.

Transaction Processing Systems (TPS)

TPS processes data from daily transactions, initially using batch processing and now
predominantly online transaction processing (OLTP). They are critical for operational
activities and support other information systems.

Expert Systems
Expert systems emulate human expertise in narrow fields, using knowledge bases and inference
rules to make decisions. They are part of the broader field of artificial intelligence (AI).

Enterprise-Wide Systems
Enterprise-wide systems integrate various functions across an organization:
• ERP (Enterprise Resource Planning): Manages ongoing activities.
• CRM (Customer Relationship Management): Manages customer information.
• CMS (Content Management System): Organises and allows access to documents and
files.

Information Requirements for Functional Units of Enterprises

Different levels of management require specific information:
• Executive Management: Strategic decisions.
• Middle Management: Tactical decisions.
• Operational Management: Day-to-day operations.
• Non-management Employees: On-the-job decisions.

Information Management (IM)

IM involves collecting, processing, presenting, and distributing information. It encompasses
all systems and processes for managing corporate information throughout its life cycle.

Definitions of IM
1. Collecting, processing, and communicating information.
2. Providing relevant information to facilitate decision-making.
3. Planning, budgeting, and controlling information.

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 4. Defining, evaluating, protecting, and distributing data within an organization.
Information management ensures that the right information reaches the right person at the right
time, supporting effective decision-making and situational understanding.

Information Management Systems

Information management encompasses various specialised systems designed to manage,
store, retrieve, and utilize information efficiently. The adoption and effective utilization of
information management systems by organisations can significantly enhance their operational
efficiency, data accuracy, and decision-making capabilities. These systems include:

a) Web Content Management (WCM): Manages digital content on websites.

b) Document Management (DM): Manages the lifecycle of documents within an
organization.
c) Records Management (RM): Ensures the systematic control of records from creation
to disposal.
d) Digital Asset Management (DAM): Manages digital assets such as images, videos,
and audio files.
e) Learning Management Systems (LMS): Manages educational content and learning
processes.
f) Learning Content Management Systems (LCMS): Combines features of CMS and
LMS for managing educational content and learning processes.

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Types of Information Management Systems

a) Content Management System (CMS)

A CMS facilitates the creation, management, distribution, publishing, and discovery of
corporate information. Often referred to as 'web content management' (WCM), these
systems focus on managing online content for corporate websites or intranets. Key
features include:
i. User-friendly interfaces for content creation and editing.
ii. Workflow management for content approval processes.
iii. Version control to track changes over time.
iv. Metadata management for improved search and retrieval.

b) Enterprise Content Management System (ECMS)

An ECMS extends the capabilities of a CMS by incorporating additional functionalities to
manage a wider range of organizational information. This system integrates:
i. Document Management: Storing and organizing electronic documents.
ii. Records Management: Ensuring compliance with record-keeping standards.
iii. Digital Asset Management: Handling multimedia files.
iv. Collaboration Tools: Facilitating teamwork and document sharing.

c) Document Management System (DMS)

A DMS is designed to manage the creation, storage, and flow of documents within an
organization. It provides:
i. Centralised Repository: A single location for storing all documents.
ii. Workflow Automation: Streamlines document approval and review processes.
iii. Metadata Management: Enhances document retrieval.
iv. Security Features: Protects sensitive information through access controls.

d) Records Management System (RMS)

An RMS manages the lifecycle of records as defined by standards like the Australian
Standard on Records Management (AS 4390). It includes:
i. Capture: Digitizing physical records and storing electronic records.
ii. Maintenance: Ensuring records are accurate and accessible over time.
iii. Access: Providing retrieval mechanisms for both physical and electronic records.
iv. Disposal: Securely destroying records that are no longer needed.

e) Digital Asset Management (DAM) System

A DAM system supports the management of digital assets, focusing on
multimedia resources such as images, videos, and audio. Key features include:
i. Asset Storage: Centralized repository for all digital assets.
ii. Retrieval: Advanced search capabilities using metadata and keywords.
iii. Reuse: Tools for repurposing assets in different contexts.
iv. Rights Management: Controls for managing permissions and licenses.

f) Brand Management System

A brand management system is a specialized DAM that focuses on managing
advertising and promotional materials. It helps ensure consistency and compliance
with brand guidelines by:
i. Organizing Marketing Assets: Storing and categorizing promotional content.

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 ii. Workflow Automation: Streamlining the creation and approval of marketing
materials.
iii. Distribution Management: Ensuring assets are used correctly across different
channels.

g) Library Management System (LMS)

A library management system provides a comprehensive solution for managing a
library's operations, including:
i. Asset Tracking: Keeping records of all library materials.
ii. Lending Management: Automating the checkout and return process.
iii. Administrative Support: Facilitating daily administrative tasks.
iv. User Services: Enhancing patron access to library resources.

h) Digital Imaging System

Digital imaging systems automate the creation of electronic versions of paper
documents, typically as PDFs or TIFFs. These systems are used as inputs to records
management systems, offering benefits such as:
i. Improved Accessibility: Electronic documents are easier to search and retrieve.
ii. Space Savings: Reduces the need for physical storage.
iii. Enhanced Manipulation: Electronic documents can be edited and managed more
efficiently.

i) Learning Management System (LMS)

An LMS automates the administration of training and learning programs, providing
functionalities such as:
i. Student Registration: Handling enrollment processes.
ii. Resource Management: Organizing training materials.
iii. Performance Tracking: Recording and analyzing learner progress.
iv. Course Administration: Managing schedules, assessments, and certifications.

j) Learning Content Management System (LCMS)

An LCMS combines the capabilities of a CMS and an LMS, allowing for the
management of both educational content and learning processes. It supports:
i. Content Creation: Developing and organizing training materials.
ii. Delivery: Distributing content to learners through various formats.
iii. Administration: Overseeing course schedules, assessments, and learner progress.
iv. Collaboration: Enabling interaction between educators and learners.

k) Geographic Information System (GIS)

A GIS is a specialized system for managing spatial data. It captures, stores, retrieves,
analyzes, and displays location-referenced data, offering capabilities such as:
i. Mapping: Visualizing spatial information on maps.
ii. Analysis: Performing spatial analysis to identify patterns and relationships.
iii. Data Integration: Combining spatial data with other types of data.
iv. Decision Support: Providing insights for planning and decision-making.

Importance of Information Management

Effective information management is crucial for several reasons:
i. Consistency: Ensures data is recorded uniformly across the organization.

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 ii. Efficiency: Enhances the overall functioning of the organization by streamlining
processes.
iii. Decision-Making: Provides timely and accurate information for managerial decisions.
iv. Understanding: Improves understanding of the contexts in which decisions are made.
v. Reliability: Increases the reliability of data used in decision-making.
vi. Accuracy: Adherence to procedures improves the accuracy of data management and
storage.

Benefits of Information Management

Implementing robust information management practices offers numerous benefits:
i. Improved Decision-Making: Accurate data leads to better decisions.
ii. Information Access: Enhances access to information while protecting against
improper use.
iii. Resource Efficiency: Reduces waste by providing the right information at the right
time.
iv. Historical Insights: Allows review of past decisions or data to inform future actions.
v. Competitive Advantage: Provides a strategic edge over competitors.
vi. Stakeholder Trust: Increases trustworthiness and credibility with stakeholders.

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LECTURE MODULE 2 - TELECOMMUNICATION AND
COMPUTER NETWORKS
Telecommunication refers to a wide range of technologies that transmit information over
distances. This includes mobile phones, landlines, satellite phones, and Voice over Internet
Protocol (VoIP). Other examples include radio, television, and networks. Although commonly
associated with modern technology, telecommunications also encompass ancient methods such
as smoke signals used by American Indians to send messages over long distances using visual
signals.

Definitions

Telecommunication: Telecommunication is the transmission of information over significant

distances for communication purposes.

Network: A network is a collection of computers and devices interconnected by

communication devices and transmission media, enabling the sharing of resources, managing
data, and storing rapidly changing information.

Communications: Communications describe the process of transferring data, instructions, or

information from one computer to another through a communication channel or medium.

Components Required for Successful Communications

Requirements for Successful Communications

• Sending Device (Sender or Encoder): Initiates an instruction to transmit data,

instructions, or information.
• Communication Channel: The path over which signals are sent, which can be analog
or digital.
• Communication Device: Receives signals from the communication channel, converts
them to a form understood by the receiving device, and connects the sending device to
the communication channel.
• Receiving Device (Receiver or Decoder): Accepts the data, instructions, and
information.

Uses of Networks/Role in Business

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Facilitating Communications

• Sending emails, voice mails, faxes, and researching on the internet.

• Telecommuting, video conferencing, and making phone calls.
• Transferring funds through Electronic Fund Transfer (EFT), inter-branch banking, and
money wiring services.

Sharing Resources

• Sharing hardware resources such as printers.

• Sharing data through Electronic Data Interchange (EDI) and information.
• Sharing software and verifying credentials like a blue cross card.

Intranet

An intranet is a private computer network using Internet Protocol technology to securely share
parts of an organization's information or network operating system within the organization. It
is designed to be accessible only by authorized members, employees, or others with permission.
Intranets can share information, support working in groups, and facilitate teleconferences.

Uses of Intranet

• Delivering tools and applications for collaboration, project management, and customer
relationship management.
• Serving as platforms for corporate culture changes and discussions.
• Providing secure, less expensive alternatives to private networks.
• Enabling company-wide access to updated information and documents.

Benefits

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 • Workforce Productivity: Easier access to information and applications.
• Time Savings: Information distribution on an as-needed basis.
• Improved Communication: Vertical and horizontal communication within the
organization.
• Web Publishing: Easy maintenance and access to corporate documents.
• Business Operations and Management: Supporting decision-making processes.
• Cost-effectiveness: Reduced need for physical documents.
• Enhanced Collaboration: Accessible information for teamwork.
• Cross-platform Capability: Compatibility with various operating systems.
• Built for One Audience: Tailored access based on roles within the company.
• Immediate Updates: Real-time information changes.
• Supports Distributed Computing Architecture: Integration with management
information systems.

EXTRANET

An extranet is a computer network that allows controlled access from the outside for specific
business or educational purposes. It extends a company's intranet to users outside the company,
such as partners, vendors, and suppliers.

Uses of Extranet

• Exchanging large volumes of data through Electronic Data Interchange (EDI).

• Sharing product catalogues with trade partners.
• Collaborating on joint development efforts.
• Providing services managed by one company on behalf of affiliated companies.

Advantages

• Secure data exchange.

• Facilitation of collaborative projects.
• Efficient service provision to a group of companies.

Disadvantages

• Potential high implementation and maintenance costs.

• Security concerns when hosting valuable information.

INTERNET
The Internet is a vast, international network linking millions of users globally. It is commonly
used for sending and receiving emails, accessing information, and communicating worldwide.
It is distinguished from the World Wide Web, which is a subset of the Internet used for
accessing web pages via browsers using the HTTP protocol.

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COMPUTER NETWORKS

A computer network is a collection of interconnected computers and devices that share

resources and facilitate communication. Networks vary widely in scope, including Local Area
Networks (LAN), Wide Area Networks (WAN), and others.

Purpose

• Facilitating Communications: Efficient communication through email, instant

messaging, and video conferencing.
• Sharing Hardware: Networked computers can access shared resources like printers.
• Sharing Files and Information: Authorized access to data stored on networked
computers.
• Sharing Software: Running applications on remote computers.
• Information Preservation: Ensuring data is available and secure.

Advantages

• Faster and easier access to information.

• Improved communication.
• Global reach for advertising and marketing.
• Facilitation of e-commerce and e-business.

Disadvantages

• Potential exposure to harmful content.

• Increased risk of plagiarism.

NETWORK CLASSIFICATIONS

Networks are categorized by scope or scale, such as:

• LAN (Local Area Network)

• WLAN (Wireless Local Area Network)
• WAN (Wide Area Network)
• MAN (Metropolitan Area Network)
• SAN (Storage Area Network, System Area Network, Server Area Network, Small Area
Network)
• CAN (Campus Area Network, Controller Area Network, Cluster Area Network)
• PAN (Personal Area Network)
• DAN (Desk Area Network)

Local Area Network (LAN)

A LAN connects computers and devices in a limited geographical area like a home, school, or
office. Nodes on a LAN share resources and typically use wired connections, though wireless
LANs (WLANs) are also common. LANs are owned and managed by a single organization
and use technologies like Ethernet and Token Ring.

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Figure 3 – A Library Network

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LECTURE MODULE 3 - DATABASE MANAGEMENT SYSTEMS
A Database Management System (DBMS) is computer software designed to manage databases
based on a variety of data models. In other words, it is essentially nothing more than a
computerized record-keeping system like that of a filing cabinet. The users will have the
following facilities: add new files, insert new data, retrieve data, update data, delete data, and
delete files.

A computer database relies upon software to organize the storage of data. This software is
known as a database management system (DBMS). Database management systems are
categorised according to the database model that they support. The model tends to determine
the query languages that are available to access the database. A great deal of the internal
engineering of a DBMS, however, is independent of the data model and is concerned with
managing factors such as performance, concurrency, integrity, and recovery from hardware
failures. In these areas, there are large differences between products

Traditional/File Processing Approach versus Database Approach

Almost all application programs use either the file-processing approach or the database
approach to store and manage data.

1. Traditional/File Processing Approach

This is an approach to storing and managing data where each department within an
organization typically has its own set of files. Traditional file-based system is a file-based
system, in which we manually or through computer handle the database such as updating,
inserting, deletion or adding new files to the database, etc.

Employee
Employee filefile
Prog 1

Stores file

Material supplier file

Prog 2

Purchase order file

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Advantages of Traditional File Processing System
ü No need for external storage
ü No need for a highly technical person to handle the database.
ü The processing speed is high as compare to DBMS.
ü Files are often designed specifically for their particular application
ü Files are designed to meet the needs of a given program (e.g. Prog 1 uses the
employee file only).
ü The focus is on procedures (what needs to be done by the programs Prog 1 and Prog 2)
ü The records in a file may not relate to records in any other file. (e.g. the employee file
in no way related to the Warehouse file).
ü Companies have usually been using file processing for many years

Disadvantages of the traditional approach

ü Provide less security.
ü Less integrity
ü High complexity in updating database records
ü Redundancy is high – Each department has its files, therefore:
• The same fields are stored multiple times causing wasted resources
• The chance for errors is increased (e.g. different spelling in different locations
causing inconsistency)
ü Isolated data – Resulting in difficulty in accessing data stored in different files. (e.g.
Prog 1 cannot access directly those files designed for Prog 2)
ü Poor data control – with no centralized control at the data element level it is common
for the same data element to have multiple names
ü Data had to be kept sorted (e.g. to locate a particular item)
ü File structure changes severely impact existing programs.

Exercise: Find the employees making less than $23000 who a) work in a warehouse with
A floor area larger than 30000 square feet. b) have issued an order to supplier “S6”. This
would not be possible in the traditional approach if the files were separate.

2. The Database Approach

In this approach, many programs and users share the data in the database. Users access
data using software called a Database Management System (DBMS). The focus is on the data
and not on procedures or programs that use the data. The data resource is separate from the
programs.

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 Employee file

Prog 1 Stores file

DBMS
Material supplier file

Prog 2

Definitions of Database
1. A database is an organized collection of data. The data is organized in a manner to allow
access, retrieval and use of that data.
2. A database is a single organized collection of structured data, stored with a minimum
of duplication of data items to provide a consistent and controlled pool of data. This
data is common to all users of the system but is independent of programs, which use
the data.
3. It is a structured collection of records or data that is stored in a computer system
ü Fields - This represents 1 unit of information in a database – e.g. Title of DVD,
Genre

A field (also known as attribute), contains a specific piece of information within a

record. A field name uniquely identifies each field. In the example employee table
above the “lastname” field would contain all of the last names of the employees in
the table. It is an attribute or characteristic of an entity. (An entity is an object or
event about which someone chooses to collect data. It may be a person, place, event
or thing. E.g. Student, car, library book, employee, bank account etc.)

ü Records - Contains information relating to 1 item of data in a DB

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 A record is a group of related fields. It is a collection of data items. A record
contains information about a given person, place, event or thing. A record in an
employee table would contain specific information about a particular employee.

Character
A number, letter, punctuation mark, or other symbol that is represented by a single byte in
the ASCII and EBCDIC coding schemes.

Tables/File
A table is a group of related records. It captures all the records of a particular type of entity.
E.g. the employee table has all the employee records. The structure of the table is described
by the fields, that is, the type of data that will be held in the table.

As stated earlier, a Computer Database is a structured collection of records or data that is

stored in a computer system. The structure is achieved by organizing the data according to a
database model. The model in most common use today is the relational model. Other models
such as the hierarchical model and the network model use a more explicit representation of
relationships

A computer database relies upon software to organize the storage of data. This software is
known as a database management system (DBMS). Database management systems are
categorised according to the database model that they support. The model tends to determine
the query languages that are available to access the database. A great deal of the internal
engineering of a DBMS, however, is independent of the data model and is concerned with
managing factors such as performance, concurrency, integrity, and recovery from hardware
failures. In these areas, there are large differences between products.

Database Management System (DBMS)

Definitions
1. A DBMS is an item of complex software, which constructs and maintains a database in
a controlled way. It allows us to use the computer to create a database to which we can
change, add and delete data in the database. It also allows us to sort and retrieve data
and create forms, queries and reports using the data in the database.

2. A DBMS is application software that allows the creation, access, and management of a
database. It consists of a collection of interrelated data and a collection of programs to
access that data. A DBMS is usually purchased from a software vendor and is how an
application programmer or end-user views and manipulates data in a database.

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 3. DBMS is computer software designed to manage databases based on a variety of data
models

Advantages
ü Security can be improved
ü Integrity can be improved
ü Redundancies can be improved!
ü Better services to users
ü Cost of delivering and maintaining the system is lowered
ü Standards can be enforced
ü Faster response to query processing

Disadvantages
ü Confidentiality, privacy and security
ü Data quality concerns
ü Data integrity concerns
ü Enterprise vulnerability may be higher
ü The cost of using DBMS

Examples of DBMS’s
ü Microsoft Access
ü Oracle
ü DB2
ü Visual Foxpro
ü Informix
ü Ingres
ü Paradox
ü Sybase
ü SQL Server
ü Approach
ü GemStone
ü D3
ü Essbase
ü FastObjects
ü InterBase
ü JdataStore
ü Adabas
ü Versant

Database Types

ü Personal – used for recording self-information and for one’s access. A database
created to store phone contacts and addresses and friends would be a good example.
ü Departmental - a unit in an organisation which provides some functional

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 application of the data in the department’s domain
ü Workgroup – used by teams working on tasks that needs access to the same data
ü Enterprise - Centralized data that is shared by many users throughout the organization

Other Common examples of databases in society

ü Payroll
ü Employee data
ü Inventory management/Stock
ü Sales
ü Customer data
ü Supplier data
ü Library book management
ü Banking
ü Student record keeping

System Architecture of a DBMS

Files Types in Database

Master File
• A master file or master table contains a group of common records. Item Data, Customer
Data, and Supplier Data are examples of tables.
• Contains information about an organization’s business situation. Most transactions and
databases are stored in the master file. File maintained by the Contractor that contains all
essential account information.
• A file of relatively permanent data or information that is updated periodically.

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• A file of data which is the principal source of information for a job which is updated or
amended as necessary(computer science) a computer file that is used as the authority in a
given job and that is relatively permanent

Transaction File -
• It is the collection of transaction records. It helps to update the master file and also serves
as audit trail and transaction history.
• (computer science) a computer file containing relatively transient data about a particular
data processing task
• A collection of transaction records. The data in transaction files is used to update the
master files, which contain the data about the subjects of the organization (customers,
employees, vendors, etc.). Transaction files also serve as audit trails and history for the
organization. Where before they were transferred to offline storage after some time, they
are increasingly being kept online for routine analysis

Additional Content

Languages used in database systems

(Data definition and Data manipulation)

Some databases have their computer languages associated with them, which
allow the user to access and retrieve data. Other databases are only accessed via
languages such as COBOL. Data descriptions must be standardized, for this reason

Data Description/Definition Language (DDL) is provided which must be used to

specify the data in the database. Similarly, a Data Manipulation Language
(DML) is provided which must be used to access the data. The combination of the
DDL and DML are often called a Data Sub-Language (DSL) or a query language.

21
Data Definition Language - The DDL is that portion of the DBMS, which allows
us to create and modify the structure of the database and the database tables. The
functions of a DDL may therefore include:
ü Creating Database structures
ü Creating table structures
ü Associating fields with table structures
ü Associating data types with field structures etc.

Data Manipulation Language - The DML is that portion of the DBMS, which
allows us to store, modify, and retrieve data from the database. There are two
types of DMLs: procedural DML and nonprocedural DML.

Procedural DMLs - require that the user specify the data that is needed from
the database and how to obtain it. Procedural DMLs are more difficult to use since
they require that the user be proficient in using the language commands to
manipulate the structure and the contents of the data file. On the other hand, they
are more flexible since they allow the user to determine the method that is used for
accessing and manipulating the structure and contents of a file.

Nonprocedural DMLs - require that the user specify the data that is needed from the
database, but it does not allow the user to tell how to obtain it. Nonprocedural DMLs
are easier to use since they do not require a detailed knowledge of the language
commands, which are needed to manipulate the structure and the contents of a data
file. On the other hand, they lack flexibility since the programmer has no way of
determining the method for accessing and manipulating the contents of the data file.
Please note that it is the nonprocedural DML of a 4th fourth-generational language
that allows it to exhibit structural and data independence.

Query Language
The implementation of a query language is very vital for a DBMS. The query
language allows the end user to generate ad-hoc queries, which are immediately
answered. In most languages, the DML and the query language are the same.

Today, many DBMSs also provide support for a standardized query language that
may be different from the DML of the language. This is known as the Structured
Query Language (SQL).

Functions/features common to most DBMS’s

Data Dictionary/ Repository

ü Contains data about each field and table in the database (data about data is called
metadata)

22
 ü Should only be updated by skilled personnel
ü Is used to perform validation checks
ü Allows users to specify a default field value

File retrieval and maintenance

ü Many tools provided
ü Involves adding new records, updating existing records and deleting unwanted
records
ü It also provides the interface between the user and the data

Query Language
ü Allows users to specify data to be displayed, printed or stored
ü Consists of simple English-like statements
ü Each has its own grammar and vocabulary
ü Usually quickly learned by a non-programmer

Form
ü A window used to enter and change data
ü When well designed validates data as entered, thus reducing data entry errors

Report Generator/Writer
ü Allows users to design a report on the screen
ü Normally used only to retrieve data

Data Security
ü A DBMS provides means to ensure that only authorized users access users at
permitted times
ü Most DBMSs allow different levels of access privileges

Backup and Recovery

ü A DBMS provides a variety of techniques to restore a damaged or destroyed database
to usable form.
ü A Backup or copy of the entire database should be made on a regular basis
ü Some DBMSs maintain a log of activities

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LECTURE MODULE 4 - DATABASE ADMINISTRATION
Managing a company’s database requires a lot of coordination. These database activities are
performed by:

Database Analyst (DA)

ü Focuses on meaning and usage of data.
ü Decides the placements of fields and defines relationships among data

Database Administrator (DBA)

ü Creates and maintains data dictionary
ü Manages DB security
ü Monitors performance
ü Performs backup and security

A database administrator (DBA) is a person who is responsible for the environmental aspects
of a database. Managing a company’s database requires a great deal of coordination. The role
of coordinating the use of the database belongs to the database administrator (DBA). The duty
of a database administrator varies depending on job description, corporate and IT policies and
the technical features and capabilities of the database management system’s (DBMS’s) being
administered. They nearly always include disaster recovery (backups and testing of backups),
performance analysis and tuning, and some database design or assistance thereof.

Database administrators work with database management systems software and determine
ways to organize and store data. They identify user requirements, set up computer databases,
and test and coordinate modifications to the computer database systems. An organization’s
database administrator ensures the performance of the system, understands the platform on
which the database runs, and adds new users to the system. Because they also may design and
implement system security, database administrators often plan and coordinate security
measures. With the volume of sensitive data generated every second growing rapidly, data
integrity, backup systems, and database security have become increasingly important aspects
of the job of database administrators.

The administrative and other controls carried out by the DBA therefore include
the following:
ü Select and implement the DBMS
ü Develop database models (e.g. Entity relationship diagrams)
ü Create and maintain the data dictionary1. This includes documentation of the data
dictionary.
ü Ensures that the database structure is documented
ü Supervise the addition of new data

Provides manuals describing the facilities the database offers and how to make
use of these facilities. Provides the facilities for retrieving data and for structuring

24
reports are appropriate to the needs of an organisation.
ü Ensures that the data in the database meets the information requirements of the
organization (designs the database)
ü Manages the security of the database. (Includes backup and recovery)
ü Recoverability - Checks backup and recovery/restore procedures
ü Perform archiving (backup and remove historical data from current files)
ü Availability – ensures that the database is running when necessary
ü Use query languages to obtain reports of the information in the database
ü Periodic appraisal of the data to ensure it is complete, accurate and not duplicated
(Monitor performance).
ü Verifies database integrity
ü Appraise the performance of the database and take corrective actions if performance
degrades.

Although not strictly part of a database administrator's duties, the logical and physical design
of databases is sometimes part of the job. These functions are traditionally thought of as
being the duties of a database analyst or database designer.

Types of databases/Database models

Every database and DBMS is based on a specific data model. The data model consists of
the rules that define how the database organizes data and how users view the organization of
data.

Databases are classified according to the approaches taken to database organization. The
classes are:

25
 NETWORK
DATABASE

HIERARCHICAL
DATABASE
Purchase order file

RELATIONAL
DATABASE
OBJECT ORIENTED DATABASE

A data model is a representation of data and its interrelationships which describe

ideas about the real world. The hierarchical and network database models store its
data in a series of records, which have a set of field values attached to it. They collect
all the instances of a specific record together as a record type. These record types are
the equivalent of tables in the relational model, and with the individual records being
the equivalent of rows. Links between the record types are created using Parent-child
relationships.

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Hierarchical Model
A hierarchical system is organized in the shape of a pyramid, with each row of objects
linked to objects directly beneath it. Hierarchical systems pervade everyday life.

Examples of hierarchical systems in society are:

ü The army has generals at the top and privates at the bottom
ü The classification of plants and animals according to species, family,
genus etc.

Examples of hierarchical systems in computers are:

ü File system – a hierarchy of folders and sub-folders in which files are
placed.
ü Menu-driven system – systems of main menus and sub-menus below.
(E.g. when you click on File another menu comes up under it).

The hierarchical model is the oldest of the database models, and unlike the network,
relational and object-oriented models, does not have a well-documented history of its
conception and initial release. It is derived from the Information Management Systems
of the 1950s and 60's. It was adopted by many banks and insurance companies who
are still running it as a legacy system to this day. Hierarchical database systems can
also be found in inventory and accounting systems used by government departments
and hospitals.

The hierarchical model is a tree structured model and consists of many record types
with one being the root. The root record type exists at the top of the tree. All data must
be accessed through the root. One-to-many relationships exist between records in the
hierarchy with one being the parent and the other the child. Each child has a unique
parent, and a parent can have many children. This child/parent rule assures that data
is systematically accessible. To get to a low-level table, you start at the root and work
your way down through the tree until you reach your target.

Hierarchical structures were widely used in the first mainframe database

management systems. However, due to their restrictions, they often cannot be used to
relate structures that exist in the real world. Hierarchical relationships between
different types of data can make it very easy to answer some questions, but very
difficult to answer others. If a one-to-many relationship is violated (e.g., a patient can
have more than one physician) then the hierarchy becomes a network. The hierarchical
model is no longer used as the basis for current commercially produced systems,
however, there are a large number of legacy (old) installations. These legacy systems
are likely to be phased out over time, as the number of qualified staff declines due to
retirement and retraining.

27
Examples of hierarchical databases include:
Ø IMS - Information Management Systems by IBM
Ø System 2000 by MRI Systems Corp.
Ø Adabas
Ø Caché
Ø Multidimensional_hierarchical_toolkit
Ø Mumps_compiler
Ø GT.M

Advantages of the Hierarchical Model

ü Data is unified since all records stem from the root
ü Easier to secure the database since you can access data through only one path
ü Good for large volumes of one-to-many relationships

Disadvantages of the Hierarchical Model

ü Software dependence (Changes to the database structure requires
modification to all programs which access the database)
ü Adding, updating, and deleting records is more efficient and accurate
ü You cannot add a record to a child table until it has already been incorporated
into the parent table. This might be troublesome if, for example, you wanted
to add a student who had not yet signed up for any courses. Cannot (difficult)
show many-to-many relationships
ü One-to-many relationships can result in redundant data
ü Not flexible enough to support ad-hoc queries
ü Data can only be accessed through the right path
ü It is not user-friendly as users have to know the structure to access data
through the right path

Comparison of Databases and Traditional File Processing Systems

If some major changes were to be made to the data, the application programs may
need to be rewritten. In a database system, the database management system provides
the interface between the application programs and the data. When changes are made
to the data representation, the metadata maintained by the DBMS is changed but the
DBMS continues to provide data to application programs in the previously used way.
The DBMS handles the task of transformation of data wherever necessary.

This independence between the programs and the data is called data independence.
Data independence is important because every time some change needs to be made to
the data structure, the programs that were being used before the change would
continue to work. To provide a high degree of data independence, a DBMS must
include a sophisticated metadata management system.

28
In DBMS, all files are integrated into one system thus reducing redundancies and
making data management more efficient. In addition, DBMS provides centralised
control of the operational data.

Some of the advantages of data independence, integration and centralized control are:

1. Redundancies and inconsistencies can be reduced (Efficiency)

In conventional data systems, an organization often builds a collection of
application programs often created by different programmers and requiring
different components of the operational data of the organization. The data in
Conventional Data Systems (Traditional File Management System) is often not
centralised. Some applications may require data to be combined from several
systems. These several systems could well have data that is redundant as well as
inconsistent (that is, different copies of the same data may have different values).
Data inconsistencies are often encountered in everyday life. For example, we have
all come across situations when a new address is communicated to an organization
that we deal with (e.g. a bank, Telecom, or a gas company), and we find that some
of the communications from that organization are received at the new address
while others continue to be mailed to the old address. Combining all the data in a
database would involve a reduction in redundancy as well as inconsistency. It also
is likely to reduce the costs for collection, storage and updating of data.

2. Better service to the Users (Efficiency)

A DBMS is often used to provide better service to the users. In conventional
systems, the availability of information is often poor since it normally is difficult
to obtain information that the existing systems were not designed for. Once several
conventional systems are combined to form one centralized database, the
availability of information and its up-to-date data is likely to improve since the
data can now be shared and the DBMS makes it easy to respond to unforeseen
information requests.

Centralizing the data in a database also often means that users can obtain new and
combined information that would have been impossible to obtain otherwise. Also,
the use of a DBMS should allow users who do not know programming to interact
with the data more easily.

The ability to quickly obtain new and combined information is becoming

increasingly important in an environment where various levels of government are
requiring organizations to provide more and more information about their
activities. An organization running a conventional data processing system would

29
 require new programs to be written (or the information compiled manually) to
meet every new demand.

3. Flexibility of the system is improved (Efficiency)

Changes are often necessary to the contents of data stored in any system. These
changes are more easily made in a database than in a conventional system in that
these changes do not need to have any impact on application programs.

4. The cost of developing and maintaining systems is lower (Cost)

It is much easier to respond to unforeseen requests when the data is centralized in
a database than when it is stored in conventional file systems. Although the initial
cost of setting up a database can be large, one normally expects the overall cost of
setting up a database and developing and maintaining application programs to be
lower than for similar services using conventional systems since the productivity
of programmers can be substantially higher in using non-procedural languages
that have been developed with modern DBMS than using procedural languages.

5. Standards can be enforced (Data Quality)

Since all access to the database must be through the DBMS, standards are easier to
enforce. Standards may relate to the naming of the data, the format of the data, the
structure of the data etc. This might not be so when using Traditional File Storage
Systems.

6. Security can be improved

In conventional systems, applications are developed in an ad hoc manner. Often
different systems of an organization would access different components of the
operational data. In such an environment, enforcing security can be quite difficult.
Setting up a database makes it easier to enforce security restrictions since the data
is now centralized. It is easier to control what has access to what parts of the
database. However, setting up a database can also make it easier for a determined
person to breach security. We will discuss this in the next section.

7. Integrity can be improved (Validity)

Since the data of the organization using a database approach is centralized and
would be used by several users at a time, it is essential to enforce integrity controls.
Integrity may be compromised in many ways.

If several users are allowed to update the same data item at the same time, there is
a possibility that the result of the updates is not quite what was intended. For
example, in an airline DBMS, we could have a situation where the number of
bookings made is larger than the capacity of the aircraft that is to be used for the
flight. Controls therefore must be introduced to prevent such errors from occurring

30
 because of concurrent updating activities. However, since all data is stored only
once, it is often easier to maintain integrity than in conventional systems.

8. Enterprise requirements can be identified (Data Handling)

All enterprises have sections and departments and each of these units often
considers the work of their unit as the most important and therefore considers their
needs as the most important. Once a database has been set up with centralized
control, it will be necessary to identify enterprise requirements and balance the
needs of competing units. It may become necessary to ignore some requests for
information if they conflict with higher higher-priority needs of the enterprise.

9. Data model must be developed (Data Handling)

Perhaps the most important advantage of setting up a database system is the
requirement that an overall data model for the enterprise be built. In conventional
systems, it is more likely that files will be designed as needs of particular
applications demand. The overall view is often not considered. Building an overall
view of the enterprise data, although often an expensive exercise is usually very
cost-effective in the long term.

10. Faster response to query processing – provision of results of searches

(Timeliness)
Databases today allow users to retrieve information stored across many database
tables, doing this by creating relationships between tables and allowing multiple
sets of criteria to be used to search field (s) in tables and extract the results.
Databases over their conventional filing systems allow for quicker updating of
multiple records based on a criteria or set of criteria based on the use of Update
Queries.

Network Model
The network model is a database model conceived as a flexible way of representing
objects and their relationships. Its original inventor was Charles Bachman, and it
was developed into a standard specification published in 1969 by the Conference on
Data Systems Languages (CODASYL) Consortium. In many ways, the Network
Database model was designed to solve some of the problems with the Hierarchical
Database Model. Where the hierarchical model structures data as a tree of record
types, with each record type having one parent record and many children, the
network model allows each record type to have multiple parent and child records,
forming a lattice structure. This allows the model to support many-to-many
relationships. There is no root record type. Data can therefore be accessed through
more than one path. For example, in the diagram below, (Figure 6), an order can be
accessed through either the salesperson or the customer as the order has the

31
salesperson and customer as its parents. Another way of saying it is that the child of
the salesperson and customer is order. The path to Parts is either Salesperson, Order,
Parts or Customer, Order, Parts. You can therefore access parts by either knowing
who the salesperson is or through the order by knowing, for example, the order #.

The chief argument in favour of the network model, in comparison to the

hierarchical model, was that it allowed a more natural modelling of relationships
between entities.

Although the model was widely implemented and used, it failed to become
dominant for two main reasons. Firstly, IBM chose to stick to the hierarchical model
in their established products such as IMS and DL/I. Secondly, it was eventually
displaced by the relational model, which offered a higher-level, more declarative
interface.

Examples of network databases include:

ü Codasyl
ü Total
ü VAX-DBMS
ü IMAGE of Hewlett Packard
ü DMS-1100 of UNIVAC
ü SUPRA of Cincom

Advantages of the Network Model

ü Many-to-many relationships are easily represented
ü It is more flexible as you can access data through more than 1 path

Disadvantages of the Network Model

ü Software dependence. (Changes to the database structure requires
modification to all programs which access the database)
ü Uses more processing time than the hierarchical structure
ü Users must have knowledge of the structure of the database in order to
navigate
ü Hard to design, use and maintain

Relational
ü Stores data in tables that consist of rows and columns.
ü Each row has a primary key
ü Each column has a unique name
ü Relational DB developer calls file a relation, record a tuple, and field an
attribute

32
 ü Relational DB user calls file a table, record a row, and field a column
ü Most include Structured Query Language (SQL) a query language that allows
users to manage, update and retrieve data.
ü Examples: Access, Sybase, Visual FoxPro, Oracle, DB2

Relational databases consist of tables called relations. Relations are made up of

tuples and attributes. The rows are called tuples. The columns are called attributes.
Relationships between relations are implicit in the overlapping attributes. All have
the same simple format making them easy to set out under column headings. Each
row normally has a unique identifying key. Most relational databases include
Structured Query Language (SQL) a query language that allows users to manage,
update and retrieve data.

Advantages of the Relational Model

ü Structural independence (i.e. Changes to the database structure. DOES NOT
require modification to all programs which access the database
ü Powerful and flexible query mechanism that makes adhoc queries possible
ü Easy representation of all types of relationships
ü Unification of data that minimizes redundancy and maximizes security

Disadvantages of the Relational Model

ü Requires more space and processing power
ü Requires more planning if the database structure is to be designed Properly

Object-Oriented
ü Stores data in objects (An object contains data plus the actions that process the
data)
ü Can usually store more types of data than Relational databases
ü Can usually access data faster than the Relational DB
ü Stores unstructured data more efficiently than the Relational DB

Example; FastObjects, GemStone

What is an Object?
An object generally is any item that can be individually selected and manipulated.
This can include shapes and pictures that appear on a screen as well as less tangible
software entities. In object-oriented programming, an object is a self-contained entity
that consists of both data and procedures to manipulate the data. In other words, an
object is an item that contains data, as well as the actions that read or process the
data.

33
Real-world objects share two characteristics: They all have states and behaviour. For
example, dogs have state (name, colour, breed, hungry) and behaviour (barking,
fetching, wagging tail). Bicycles have state (current gear, current pedal, two wheels,
number of gears) and behaviour (braking, accelerating, slowing down, changing
gears). Software objects are modelled after real-world objects in that they too have
states and behaviour. You might want to represent real-world dogs as software
objects in an animation program or a real-world bicycle as a software object in the
program that controls an electronic exercise bike. You can also use software objects
to model abstract concepts.

What is a Class?
A class is a category of objects. For example, there might be a class called shape that
contains objects which are circles, rectangles, and triangles. The class defines all the
common properties (characteristics) of the different objects that belong to it. A class
is a special programming construct that allows us to create objects. In other words, a
class provides the blueprint for the creation of an object. The class must specify a
description of the data that is stored and a description of the operations that the
object can provide.

As indicated above, each object must have a state and a set of methods, which are
encapsulated (contained) inside the object. The state refers to the data that is stored
inside the object, while the methods/behaviours refer to the set of
operations/functions, which the object can perform. For example, a user can click on
a button, put the mouse over the button, right-click or double-click on the button.
Click, double click, right-click, mouse over etc are therefore examples of methods.
When the user clicks on the button, the relevant code for the particular user action is
executed. Each object must have a set of well-defined public interfaces, which a
client may use to get the object to perform a specific operation.

Examples of objects.
An object-oriented database can contain many classes of objects, these include:
ü Command buttons
ü List boxes
ü Data windows
ü Windows
ü Menus
ü Text boxes
ü Pictures
ü Audio clips
ü Video clips (animation)
ü Students
ü ·Courses

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 ü Employees

What is an object-oriented database (OODB)?

Object-oriented databases or object database management systems grew out of research
during the early to mid-1980s into having intrinsic database management support for graph-
structured objects. The term "object-oriented database system" first appeared around 1985.

An object-oriented database stores data in objects. The most significant characteristic of

object-oriented database technology is that it combines object-oriented programming with
database technology to provide an integrated application development system. Object-
oriented databases are designed to work well with object-oriented programming languages
such as Java, C#, and C++.

An object contains data, as well as actions that read or process the data. A Member object, for
example, might contain data about a member such as Member ID, First Name, Last Name,
Address, and so on. It also could contain instructions on how to print the member record or
the formula required to calculate a member's balance due. A record in a relational database,
by contrast, would contain only data about a member.

Object-oriented databases have several advantages compared with relational databases. They
can store more types of data, access this data faster, and allow programmers to reuse objects.
An object-oriented database stores unstructured data more efficiently than a relational
database. Unstructured data includes photographs, video clips, audio clips, and documents.
When users query an object-oriented database, the results often display more quickly than the
same query of a relational database.

If an object already exists, programmers can reuse it instead of recreating a new object -
saving on program development time. For example, if a Close button exists on a screen, the
programmer only needs to write the code once, and then place the same button on each
screen. This is called inheritance as discussed below.

The following are features of an object-oriented database:

Inheritance – the ability to create new objects by allowing them to automatically

obtain the data members and the data operations of an existing class without rewriting the
code that is present in the existing class.

Polymorphism (many forms) – the ability to have multiple classes of objects using the
same interfaces although the implementation details may vary from object to object. For
example, you can have a function/subroutine that calculates the area of an object.

The way it calculates area depends on the type of object that is called the function. This is
because the formula for area is different for circles, rectangles, triangles etc. In other words,

35
there is one function called CALCULATE_AREA and multiple objects will call this
function, but the function behaves differently from object to object.

Encapsulation – the ability of an object to hide its internal representation from the
program that uses it. This is accomplished by defining public interfaces and by
specifying that these public interfaces must be used when accessing the internal
data.

Information hiding - an object has a public interface that other objects can use to
communicate with it. The object can maintain private information and methods that
can be changed at any time without affecting other objects that depend on it. You
don't need to understand a bike's gear mechanism to use it.

Examples of object-oriented databases include:

ü FastObjects
ü GemStone
ü KE Texpress
ü ObjectStore
ü Versant

Examples of applications appropriate for an object-oriented database include the

following:

A multimedia database stores images, audio clips, and/or video clips. For example, a
geographic information system (GIS) database stores maps. A voice mail system
database stores audio messages. A television news station database stores audio and
video clips.

A groupware database stores documents such as schedules, calendars, manuals, memos, and
reports. Users perform queries to search the document contents. For example, you can search
people's schedules for available meeting times.

A computer-aided design (CAD) database stores data about engineering, architectural, and
scientific designs. Data in the database includes a list of components of the item being
designed, the relationship among the components, and previous versions of the design drafts.

A hypertext database contains text links to other types of documents. A hypermedia

database contains text, graphics, video, and sound. The Web contains a variety of
hypertext and hypermedia databases. You can search these databases for items such as
documents, graphics, audio and video clips, and links to Web pages.

A Web database links to an e-form on a Web page. The Web browser sends and

36
receives data between the form and the database. OODBs add database functionality to object
programming languages. A major benefit is the unification of the application and database
development into a seamless data model and language environment. As a result, applications
require less code, use more natural data modelling, and code bases are easier to maintain.
Object developers can write complete database applications with a modest amount of
additional effort. According to Rao (1994), "The object-oriented database (OODB) paradigm
is the combination of object-oriented programming language (OOPL) systems and persistent
systems. The power of the OODB comes from the seamless treatment of both persistent data,
as found in databases, and transient data, as found in executing programs." Data is a database
is said to be persistent (constant) because you can read a record at one point in time and read
the record at another point in time and the record is still there. In other words, the record is
not transient (temporary).

In contrast to a relational DBMS where a complex data structure must be flattened out to fit
into tables or joined together from those tables to form the in-memory structure,
OODBs have no performance overhead to store or retrieve a web or hierarchy of
interrelated objects. This one-to-one mapping of object programming language objects to
database objects has two benefits over other storage approaches: it provides higher
performance management of objects, and it enables better management of the complex
interrelationships between objects. This makes object DBMSs better suited to support
applications such as financial portfolio risk analysis systems, telecommunications service
applications, World Wide Web document structures, design and manufacturing systems, and
hospital patient record systems, which have complex relationships between data.

Hybrid object-relational database (ORD)

An object-relational database (ORD) or object-relational database management
system (ORDBMS) combines features of the relational and object-oriented data models. It is
a relational database management system that allows developers to integrate the database
with their own custom data types and methods. The term object-relational database is
sometimes used to describe external software products running over traditional DBMSs to
provide similar features; these systems are more correctly referred to as object-relational
mapping systems.

Whereas RDBMS or SQL-DBMS products focused on the efficient management of data

drawn from a limited set of data types (defined by the relevant language standards), an
object-relational DBMS allows software developers to integrate their own types and the
methods that apply to them into the DBMS. The goal of ORDBMS technology is to allow
developers to raise the level of abstraction at which they view the problem domain.

Object-relational database management systems (ORDBMSs) add new object storage

capabilities to the relational systems at the core of modern information systems. These
new facilities integrate management of traditional fielded data, complex objects such as
time-series and geospatial data and diverse binary media such as audio, video, images,

37
and applets. An applet is an application that has limited features, requires limited memory
resources, and is usually portable between operating systems.

By encapsulating methods with data structures, an ORDBMS server can execute complex
analytical and data manipulation operations to search and transform multimedia and other
complex objects. As an evolutionary technology, the object-relational (OR) approach has
inherited the robust transaction- and performance-management features of its relational
ancestor and the flexibility of its object-oriented cousin. Database designers can work with
familiar tabular structures while assimilating new object-management possibilities.

Examples of Object-relational databases include:

ü DB2
ü JDataStore
ü Oracle
ü Polyhedra
ü PostgreSQL

What is Object Definition Language (ODL)?

Object-oriented and object-relational databases often use a query language called object
query language (OQL) to manipulate and retrieve data. These databases also have an object
definition language (ODL). ODL is used to define and manipulate the objects in the database.
ODL must specify a description of the data that is stored in objects as well as a description of
the operations that the object can provide.

For example, an object could be defined as being a command button. Code could be written
to manipulate the button in various ways such as: raise the button, move its location, bring it
into focus, enlarge it etc.

Representation of an object-oriented database.

In the sample website below, the object-oriented database contains buttons and a map. When
the user clicks on a particular area of the map, information on that area will appear. When the
user clicks on a button, there is a link to another web page. When the user puts their mouse
over a button, a description of the button appears.

The advantages of databases

ü Reduced data redundancy – most data items are stored in only one file which greatly
reduces duplicate data. There is also an economic advantage in not duplicating data
ü Data definition and documentation are standardized. (e.g. the dates in the database are
all reported in the same format)
ü Improved data integrity – data modification is accomplished by changing only one
file, reducing the probability of introducing inconsistencies
ü Shared data –
Ø Data belongs to and are shared, usually over a network, by the entire
organization.

38
 Ø Information supplied to managers is more valuable because it is based on a
comprehensive collection of data instead of files, which contain only the data
needed for one application. (Total availability).
Ø The integration of different business systems is greatly facilitated.
Ø Security settings are usually used to define who have access to what level.
ü Easier record-keeping
ü Easier and Faster Access to data
Ø Non-technical users can access and maintain data if afforded the necessary
privileges
Ø As well as routine reports, it is possible to obtain ad-hoc reports to meet
requirements.
ü Reduced development/programming time (e.g. a programmer will take less time to
create a payroll system).

The disadvantages of databases

ü Require more memory, storage and processing power
ü Data are more vulnerable than in file processing systems

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LECTURE MODULE 5 - INFORMATION TECHNOLOGY
FOR BUSINESS ORGANISATIONS

Office automation & Suites

The term office automation refers to all tools and methods that are applied
to office activities which make it possible to process written, visual, and sound data
in a computer-aided manner. Office automation is intended to provide elements
which make it possible to simplify, improve, and automate the organisation of the
activities of a company or a group of people (management of administrative data,
synchronisation of meetings, etc.).

Considering that company organizations requires increased communication, today,

office automation is no longer limited to simply capturing handwritten notes. In
particular, it also includes the following activities:
• exchange of information
• management of administrative documents
• handling of numerical data
• meeting planning and management of work schedules

In its basic form, information within business organisations exists as letters, memos,
graphs, records, messages, and so on. When that information is electronically
transferred, raw data is exchanged between two or more office employees, either at
the same or different locations.

In order to process information, office automation systems must allow input of new
information and the retrieval of stored information. Input of new information refers
to the physical transfer of text, video, graphics, and sound into a computer. Input
can be typed into the computer or scanned (digitally reproduced) from another
document or source. New advances in input devices frequently allow direct
handwritten input or voice dictation. Input of pre-existing information means
retrieving the electronic materials from an existing storage area. These storage areas
can be finite and local, such as the hard drive on the office PC, or as seemingly
infinite and global as the Internet, the worldwide collection of computer networks
that is growing every year.

However, office automation affects the job itself, the flow of information through an
organization, the process of management and even the corporate structure. It entails:
Ø Paperless office – email, electronic filing, file security, internet, intranet
Ø Electronic conferencing

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 Ø Software – word processing, spreadsheet, powerpoint, databases, business
systems, desktop publishing
Equipment
Ø Fax machines
Ø Computers, workstations
Ø Printers
Ø Scanners, Cameras

Office suite tools

The term "office suite" refers to all software programs which make it possible to meet
office needs. In particular, an office suite therefore includes the following software
programs:
• word processing
• a spreadsheet
• a presentation tool
• a database
• a scheduler
The main office suites are:
• AppleWorks
• Corel WordPerfect
• IBM/Lotus SmartSuite
• Microsoft Office
• Sun StarOffice
• OpenOffice (freeware)

Features of office automation

Facsimile
Facsimile is the full interpretation for fax. It is a system of transmitting and
reproducing graphic matter (as printing or still pictures) by means of signals sent
over telephone lines In other words, it refers to both a document sent over a
telephone line, and device that transmits and receives documents over telephone
lines.

Voice mail
It is communications technology that functions much like an answering machine,
allowing callers to leave a voice message for an individual. More elaborately, it
refers to a centralized system of stored telephone messages that can be retrieved
later. The term is also used more broadly to denote any system of conveying a stored
telecommunications voice message, including using an answering machine.
Most cell phones have voicemail as a basic feature, and manyland line phones and

41
corporate PBXs have their own voicemail options. Note, PBX is an acronynm for
Private branch exchange, a telephone exchange that serves a particular business or
office.
Voice messaging
Voice mail is a service that functions much like an answering machine, allowing a
person to leave a voice message for one or more persons. Voice messaging is
using voice mail as an alternative to electronic mail, in which voice messages are
intentionally recorded, not because the recipient was not available.

Telemarketing
Selling over the telephone. It is a method of direct marketing in which
a salesperson solicits prospective customers to buy products or services, either over
the phone or through a subsequent face to face or Web conferencing appointment
scheduled during the call.
Telemarketing can also include recorded sales pitches programmed to be played over
the phone via automatic dialing. Telemarketing has come under fire in recent years,
being viewed as an annoyance by many.

Teleconferencing
Conferencing is where people meet and see and speak to each other.
Teleconferencing is conferencing via telecommunication channels. The user is able to
see and hear a person at the other end of the line in another location.
Teleconferencing requires a camera, microphone, speakers and the appropriate
communication software. Once this technology catches on it will be very popular
and be a huge money maker. Teleconferencing minimizes the time and cost spent
traveling (no hotel fees, jet lag etc.) The world becomes smaller place (global
marketplace). You can have business meetings with all the desired people when and
where need to.

Telecommuting
Commuting is traveling from one location to the other, such as from work to home.
Telecommuting is where a person does not have to travel to work but works from
home and connects to his office via telecommunication channels. (i.e.
commuting/going to work via telecommunication channels)
Advantages
ü Less traffic on the roads, less pollution etc.
ü Reduction in expenses such as work clothes, gas etc.
ü Reduction in the need for parking spaces and offices for staff
Disadvantages
ü Persons who are not disciplined enough will not be productive as they will talk
on the phone, watch tv, eat etc instead of work.

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 ü Anti-social behaviour will result as there is limited social interaction.
ü This will not be possible with all jobs

Electronic fund transfer

This system permits the movement of money by means of electronic signals relayed
between computers via such means as telephone lines and radio waves. Designed
primarily to reduce banking costs by decreasing paperwork, EFT virtually eliminates
the use of cash, checks, and conventional credit cards. In such a system, salaries,
social security payments, and other income are credited directly to a user's account.
Payment of utility bills, rent, or home mortgage loans are likewise made directly,
with the amount of the outlays deducted from the balance of the account.

E-commerce
E-commerce (electronic-commerce) refers to business over the Internet. It entails the
buying and selling of goods and services on the Internet, especially the World Wide
Web. The terms "e-business" and "e-tailing" are often used synonymously with e-
commerce. They refer to the same idea; they are just used to confuse people trying to
learn computer terms. In practice, the term e-commerce and a newer term, e-
business, are often used interchangably.

E-commerce can be divided into:

ü E-tailing or "virtual storefronts" on Web sites with online catalogs, sometimes

gathered into a "virtual mall"
ü The gathering and use of demographic data through Web contacts
ü Electronic Data Interchange (EDI), the business-to-business exchange of data
ü E-mail and fax and their use as media for reaching prospects and established
customers (for example, with newsletters)
ü Business-to-business buying and selling
ü The security of business transactions

Note, for online retail selling, the term e-tailing is sometimes used. In other words, it is the
conducting of business online, including shopping, banking, investing.

Web sites such as Amazon.com, Outpost.com, and eBay are all e-commerce sites.
The two major forms of e-commerce are Business-to-Consumer (B2C) and Business-
to-Business (B2B). While companies like Amazon.com cater mostly to consumers,
other
companies provide goods and services exclusively to other businesses.

Electronic mail
E-mail, short for electronic mail, is the transmission of messages over
communications networks. The messages can be notes entered from the keyboard

43
or electronic files stored on disk. Most mainframes, minicomputers, and computer
networks have an e-mail system. Some electronic-mail systems are confined to a
single computer system or network, but others have gateways to other computer
systems, enabling users to send electronic mail anywhere in the world. Companies
that are fully computerized make extensive use of e-mail because it is fast,
flexible, and reliable.

Most e-mail systems include a rudimentary text editor for composing messages,
but many allow you to edit your messages using any editor you want. You then
send the message to the recipient by specifying the recipient's address. You can
also send the same message to several users at once. This is called broadcasting.
Sent messages are stored in electronic mailboxes until the recipient fetches them.
To see if you have any mail, you may have to check your electronic mailbox
periodically, although many systems alert you when mail is received. After
reading your mail, you can store it in a text file, forward it to other users, or delete
it. Copies of memos can be printed out on a printer if you want a paper copy.
All online services and Internet Service Providers (ISPs) offer e-mail, and most
also support gateways so that you can exchange mail with users of other systems.
Usually, it takes only a few seconds or minutes for mail to arrive at its destination.
This is a particularly effective way to communicate with a group because you can
broadcast a message or document to everyone in the group at once.

Internet
The Internet is a large, international computer network linking millions of users
around the world that use the TCP/IP protocols. It is used daily by many
individuals for the main purposes of sending and receiving electronic mail (email),
obtaining information on almost any subject, or to communicate with
others around the world. Access to the Internet is obtained by subscription, and an
Internet address is needed to receive or to send a message. Such addresses have a
specific format that specifies the name of the user, the machine they are working
on, and where that machine is located.

Advantages
ü Better communication – email, chat rooms etc.
ü Easier, faster access to information
ü Less travelling – e.g. to a library, store
ü More convenient – e.g. shopping, paying bills

Disadvantages
ü Exposure of children to pornography, pedofiles, harmful information
ü ·Can be addictive for some persons

44
ü Persons unable to socialize

45
 LECTURE MODULE 6: INTRODUCTION TO
COMPUTERISED MANAGEMENT SYSTEMS
Computerized Management Systems (CMS) revolutionise project management in the
construction industry by integrating technology, processes, and human resources. The
implementation and integration of Management Information Systems (MIS) play a crucial role
in enhancing project management capabilities and improving overall project outcomes.
Construction firms need to embrace CMS and MIS solutions to achieve greater efficiency,
transparency, and accountability in project execution, ultimately leading to improved project
success rates and stakeholder satisfaction. Thus, in this lecture module, we'll delve into the
overview of CMS in construction and explore the implementation and integration of
Management Information Systems (MIS) in construction projects. Furthermore, we will
explore how CMS facilitate different aspects of project management, including project
planning and scheduling, document management, financial management, communication and
collaboration, risk management, quality control, and reporting and analytics.

a) Overview of Computerised Management Systems in Construction:

1. Evolution of CMS in Construction:

a) Historically, construction projects relied on manual methods for managing tasks,
schedules, and resources.
b) With technological advancements, CMS emerged to streamline processes, minimise
errors, and improve project outcomes.
c) Early CMS focused on basic functions like scheduling and budgeting. At the same time,
modern systems encompass various capabilities, including BIM (Building Information
Modeling) integration, supply chain management, and real-time data analytics.

2. Key Components of CMS:

a) Project Planning and Scheduling: CMS enable detailed planning of project tasks,
resource allocation, and scheduling to optimise project timelines.
b) Document Management: Centralised document repositories facilitate efficient storage,
retrieval, and sharing of project-related documents, drawings, and specifications.
c) Financial Management: CMS tracks project costs, budgets, and expenditures,
providing stakeholders with real-time financial insights and cost control measures.
d) Communication and Collaboration: Integrated communication tools enable seamless
collaboration among project stakeholders, enhancing transparency and reducing
communication gaps.
e) Risk Management: CMS helps identify, assess, and mitigate project risks through
proactive risk management strategies and contingency planning.
f) Quality Control: Quality management modules ensure adherence to quality standards
and regulations by monitoring and controlling quality throughout the project lifecycle.
g) Reporting and Analytics: CMS generate customizable reports and analytics dashboards,
offering stakeholders valuable insights into project performance, trends, and areas for
improvement.

3. Enhancing Project Management Through Computerised Management Systems

Computerised Management Systems (CMS) play a vital role in enhancing project management
effectiveness in construction projects. CMS empower project teams to achieve greater
efficiency, transparency, and success by facilitating project planning and scheduling, document

46
management, financial management, communication and collaboration, risk management,
quality control, reporting and analytics. Embracing CMS enables construction firms to
overcome challenges, mitigate risks, and deliver high-quality projects on time and within
budget

1. Project Planning and Scheduling:

CMS enable detailed planning of project tasks, resource allocation, and scheduling to optimise
project timelines.

a) Features:
i. Gantt charts and critical path analysis tools for visualising project schedules and
identifying key milestones.
ii. Resource management modules for allocating resources efficiently and
avoiding conflicts.
iii. Integration with Building Information Modeling (BIM) software for enhanced
coordination and clash detection.

b) Benefits:
i. Improved project timeline accuracy and predictability.
ii. Enhanced resource utilization and productivity.
iii. Proactive identification of scheduling conflicts and bottlenecks.

2. Document Management:
Centralised document repositories facilitate efficient storage, retrieval, and sharing of project-
related documents, drawings, and specifications.

a) Features:
i. Cloud-based storage solutions for secure and accessible document storage.
ii. Version control mechanisms to track document revisions and ensure document
integrity.
iii. Role-based access control to manage permissions and ensure data security.

b) Benefits:
i. Reduced document retrieval time and improved document accessibility.
ii. They enhanced collaboration and information sharing among project
stakeholders.
iii. Improved document traceability and compliance with regulatory requirements.

3. Financial Management:
CMS tracks project costs, budgets, and expenditures, providing stakeholders with real-time
financial insights and cost control measures.

a) Features:
i. Budgeting and forecasting modules for setting project budgets and predicting
financial outcomes.
ii. Expense tracking and invoice management functionalities to monitor project
expenditures.
iii. Integration with accounting software for seamless financial data exchange.

b) Benefits:

47
 i. Real-time visibility into project finances and cost trends.
ii. Improved cost control and budget adherence.
iii. It has enhanced financial reporting and compliance with financial regulations.

4. Communication and Collaboration:

Integrated communication tools enable seamless collaboration among project stakeholders,
enhancing transparency and reducing communication gaps.

a) Features:
i. Project portals and discussion forums for facilitating communication among
team members.
ii. Instant messaging and video conferencing tools for real-time collaboration.
iii. Document sharing and commenting functionalities for asynchronous
collaboration.

b) Benefits:
i. Enhanced transparency and accountability in project communication.
ii. Reduced miscommunication and project delays.
iii. Improved stakeholder engagement and satisfaction.

5. Risk Management:
CMS helps identify, assess, and mitigate project risks through proactive risk management
strategies and contingency planning.

a) Features:
i. Risk register modules for capturing and prioritising project risks.
ii. Risk assessment tools for evaluating the likelihood and impact of identified
risks.
iii. Mitigation planning functionalities for developing risk response strategies.

b) Benefits:
i. Early identification and mitigation of project risks.
ii. Improved project resilience and readiness to address unforeseen challenges.
iii. Reduced project disruptions and delays.

6. Quality Control:
Quality management modules ensure adherence to quality standards and regulations by
monitoring and controlling quality throughout the project lifecycle.

a) Features:
i. Quality inspection checklists and templates for standardising quality assurance
processes.
ii. Non-conformance management functionalities for documenting and resolving
quality issues.
iii. Audit trail capabilities to track quality-related activities and ensure
accountability.

b) Benefits:
i. Consistent delivery of high-quality project outcomes.
ii. Enhanced customer satisfaction and reputation.

48
 iii. Improved compliance with quality standards and regulations.

7. Reporting and Analytics:

CMS generate customizable reports and analytics dashboards, offering stakeholders
valuable insights into project performance, trends, and areas for improvement.

a) Features:
i. Pre-defined report templates for standard project performance metrics.
ii. Data visualisation tools for creating interactive dashboards and visualising
trends.
iii. Ad-hoc reporting capabilities for generating customised reports based on
specific stakeholder requirements.

b) Benefits:
i. Informed decision-making based on real-time project data and analytics.
ii. Improved project performance tracking and monitoring.
iii. Identification of opportunities for process improvement and performance
optimisation.

3. Benefits of CMS in Construction:

a) Improved Efficiency: Automation of routine tasks, streamlined processes, and
centralized data management improve overall project efficiency.
b) Enhanced Communication: CMS facilitate seamless communication and collaboration
among project teams, leading to fewer misunderstandings and delays.
c) Cost Savings: Real-time monitoring of project costs, resource utilization, and budget
adherence helps identify cost-saving opportunities and prevent budget overruns.
d) Risk Mitigation: Proactive identification and management of project risks minimize the
likelihood of disruptions and delays.
e) Quality Assurance: Robust quality management modules ensure compliance with
quality standards and regulations, enhancing overall project quality and customer
satisfaction.
f) Data-Driven Decision-Making: Access to real-time project data and analytics enables
informed decision-making and timely adjustments to project plans and strategies.

b) Implementation and Integration of Management Information Systems

(MIS) in Construction Projects:

1. Role of MIS in Construction Projects:

a) Management Information Systems (MIS) play a crucial role in collecting, processing,
and disseminating project-related information to support decision-making at all levels.
b) In construction projects, MIS integrate various subsystems, including financial
management, project scheduling, resource management, and document control, to
provide comprehensive project management capabilities.

2. Challenges in MIS Implementation:

a) Complexity: Construction projects involve multiple stakeholders, diverse activities, and
complex workflows, posing challenges for MIS implementation and integration.
b) Data Integration: Integrating data from disparate sources and formats into a unified
system can be challenging, requiring robust data management and integration
strategies.

49
 c) Change Management: Resistance to change among project stakeholders and workforce
may hinder the successful implementation of MIS, emphasizing the importance of
change management strategies and stakeholder engagement.
d) Cost and Resource Constraints: Limited budgets and resources may constrain the
adoption of advanced MIS solutions, necessitating careful cost-benefit analysis and
prioritization of key functionalities.

3. Best Practices for MIS Implementation:

a) Needs Assessment: Conduct a thorough assessment of project requirements, stakeholder
needs, and existing processes to identify the most suitable MIS solution.
b) Customisation and Scalability: Choose an MIS solution that can be customized to align
with project-specific requirements and scalable to accommodate future growth and
changes.
c) Training and Support: Provide comprehensive training and ongoing support to project
stakeholders and end-users to ensure effective utilization of the MIS solution.
d) Integration with Existing Systems: Ensure seamless integration of the MIS with existing
systems and software applications to maximize interoperability and data exchange.
e) Data Security and Privacy: Implement robust data security measures to protect
sensitive project information and ensure compliance with data privacy regulations.

50
 LECTURE MODULE 7: FINANCIAL MODELING OF
PROJECTS
Introduction
In the ever-changing and competitive landscape of the construction industry, companies must
use every tool at their disposal to stay ahead. One such strategic tool is financial modelling, a
critical element in fiscal management, risk mitigation, and planning. Financial modelling for
construction projects is a critical process that helps in planning, executing, and monitoring
projects effectively. By understanding the principles and key components of financial
modelling, project managers and financial analysts can ensure the financial viability and
success of construction projects. Regular updates and continuous improvement of the financial
model are essential to adapt to changing circumstances and maintain accuracy.

The Importance of Financial Modelling in Construction

Financial modelling is vital for the construction industry due to its ability to forecast future
performance, enhance long-term financial planning, and analyze the impact of strategic
decisions. By applying financial decision-making through robust models, companies can:

• Assess project viability,

• Manage financial risks,
• Establish a foundation for sustainability and growth.

Understanding Financial Modelling for Construction Businesses

Financial modelling for construction businesses involves creating an elaborate planning system
that extends beyond standard financial statements. It incorporates revenue and profit drivers,
as well as unique industry challenges, to appraise project viability, and investment
opportunities, and manage cash flow and costs effectively.

COMPONENTS OF A FINANCIAL MODEL FOR A CONSTRUCTION BUSINESS

An effective financial model for a construction business should consider historical
performance, operational strategy, market conditions, industry trends, and projections. Key
components include:

1. Revenue Forecasting: This involves understanding each construction contract's

nuances and implications on future revenue streams, including anticipated growth rates,
historical performance, project acquisition probabilities, market conditions, and timing
of revenue recognition.

2. Cost Forecasting: Every construction project has a unique cost structure, including
variable and fixed costs, direct and indirect expenses, and identification of the
breakeven point. Factors include material costs, labour costs, equipment costs,
subcontractor costs, and overhead expenses like salaries, utilities, insurance, and office
rent.

3. Debt Structuring: Construction projects often require substantial financing. A financial

model evaluates different financing scenarios, analyzes debt covenants, and ensures
optimal debt management.

51
 4. Investment Analysis: Large-scale construction involves significant investment. A
financial model should provide insights into the payback period, return on investment
(ROI), and internal rate of return (IRR) for each project or investment.

5. Capital Expenditure Management: Construction businesses are capital-intensive. A

financial model helps identify optimal capital expenditure funding policies, considering
longer payment terms to conserve cash flow against higher interest payments and a
larger debt balance.

6. Working Capital Analysis: Effective management of working capital ensures the

business can pay staff, and suppliers, meet tax obligations, and repay borrowings. High-
profile industry collapses highlight the importance of managing working capital flows,
considering seasonality and long collection cycles.

7. Financial Statements and Ratios: A financial model synthesizes data into financial
statements such as profit & loss, balance sheet, and cash flow statements. It also
scrutinizes financial ratios like gross margin, EBITDA margin, liquidity ratios, and
leverage ratios.

The Implementation Process

To develop a robust financial model, follow these steps:

1. Data Collection: Gather historical data and market research. Understand cost drivers,
pricing strategies, and revenue patterns.
2. Develop Assumptions: Build realistic and defendable assumptions based on collected
data for financial forecasting.
3. Construct the Model: Use software like Microsoft Excel to create the model structure,
incorporating assumptions and financial elements.
4. Testing and Validation: Run various scenarios to test the model's sensitivity to changes
in assumptions.
5. Final Review and Use: Share the model with stakeholders, incorporate feedback, and
begin using it for decision-making processes.

Best Practices for Financial Modelling

1. Use conservative assumptions and consider worst-case scenarios.
2. Engage industry experts to validate assumptions and methodologies.
3. Analyze economic trends, market conditions, and regulatory impacts.
4. Ensure the model is user-friendly with clear documentation.
Benefits of Financial Modelling for Construction Companies
1. Strategic Planning and Competitive Edge: Financial models help simulate the impact
of strategic decisions, providing a competitive advantage through data-driven
strategies.
2. Improved Decision-Making for Major Projects: They illuminate risks and funding
gaps, guiding leaders through complex decisions.
3. Enhanced Reporting and Negotiations: They streamline board preparations and
strengthen negotiations with stakeholders.

52
 4. Sustainability and Corporate Responsibility: They incorporate sustainability elements,
aligning with corporate responsibility and the industry's emphasis on sustainable
practices.

Key Highlights
i. Combines accounting, finance, and business metrics to forecast future results.
ii. Projects a company’s future financial performance.
iii. Useful for valuing companies and determining growth strategies.

Uses of Financial Models

i. Raising capital (debt/equity)
ii. Making acquisitions
iii. Organic business growth
iv. Selling/divesting assets
v. Budgeting and forecasting
vi. Capital allocation
vii. Business valuation
viii. Financial statement analysis

Principles of Financial Modeling for Construction Projects

1. Understanding Financial Models:
• Definition: A financial model is a tool built in spreadsheet software to forecast
a business's financial performance.
• Purpose: It helps in making informed business decisions, estimating project
costs, and assessing project feasibility and profitability.

Key Components of a Construction Project Financial Model

1. Project Timeline: Detailed project phases and schedules.
2. Cost Estimates: Initial cost estimates for materials, labour, equipment, and other
resources.
3. Revenue Projections: Expected income from the project, including milestones and
payment schedules.
4. Financing Structure: Information on funding sources, including loans, equity, and
grants.
5. Cash Flow Analysis: Inflows and outflows of cash over the project’s duration.
6. Profit and Loss Statement: Summary of revenues, costs, and profits over time.
7. Balance Sheet: A snapshot of the project’s financial position at different stages.

Steps in Building a Financial Model for Construction Projects

1. Data Collection: Gather historical data, industry benchmarks, and project-specific
details.
2. Assumption Setting: Define key assumptions such as inflation rates, interest rates, and
project-specific risks.

53
 3. Model Structuring: Organize the model logically with separate sheets for inputs,
calculations, and outputs.
4. Input Data: Enter the collected data and assumptions into the model.
5. Calculation: Implement formulas to calculate costs, revenues, cash flows, and financial
metrics.
6. Scenario Analysis: Test different scenarios to assess the impact of varying assumptions
on the project’s financial outcomes.
7. Validation and Testing: Check the model for errors and validate it against known
benchmarks or historical projects.

Best Practices in Financial Modeling for Construction Projects

1. Consistency: Ensure consistent use of units, periods, and naming conventions.
2. Transparency: Maintain clarity by documenting assumptions and providing clear
explanations of calculations.
3. Flexibility: Design the model to accommodate changes and updates easily.
4. Accuracy: Use reliable data sources and regularly update the model with actual project
data.

B) Advanced Techniques in Financial Analysis and Decision Making Using

Spreadsheet Software

1. Spreadsheet Software Tools

a) Microsoft Excel: Most widely used tool for financial modeling.

b) Google Sheets: Collaborative spreadsheet software.
c) Specialised Add-ons: Tools like Solver, Data Analysis ToolPak, and financial
modelling templates.

2. Advanced Excel Functions for Financial Analysis

a) Financial Functions: NPV (Net Present Value), IRR (Internal Rate of Return), XNPV,
and XIRR.
b) Statistical Functions: AVERAGE, MEDIAN, STDEV.P, and TREND.
c) Logical Functions: IF, AND, OR, and nested IF statements.
d) Lookup Functions: VLOOKUP, HLOOKUP, INDEX, and MATCH.

3. Techniques for Scenario and Sensitivity Analysis

a) Data Tables: One-variable and two-variable data tables for analyzing the impact of
input changes.
b) Scenario Manager: Create and compare multiple financial scenarios.
c) Goal Seek: Determine the necessary input value to achieve a desired financial outcome.
d) Monte Carlo Simulation: Use random sampling to model and analyze the impact of risk
and uncertainty in financial forecasts.

4. Visualisation and Reporting

a) Charts and Graphs: Use line charts, bar charts, and pie charts to visualize financial
data.
b) Conditional Formatting: Highlight key financial metrics and variances.

54
 c) Dashboards: Create interactive dashboards for a comprehensive view of project
performance.
d) Pivot Tables: Summarize large datasets and extract meaningful insights.

5. Integrating Financial Models with Decision-Making Processes

a) Risk Assessment: Identify, analyze, and mitigate financial risks using the model.
b) Performance Monitoring: Track project performance against financial benchmarks and
milestones.
c) Decision Support: Use model outputs to support strategic decisions and optimize
project outcomes.
d) Continuous Improvement: Regularly update the model with actual data and refine
assumptions to improve accuracy.

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 LECTURE MODULE 8: NETWORK SCHEDULING WITH
PROJECT MANAGEMENT SOFTWARE
Introduction

Network scheduling is a crucial aspect of project management, focusing on the optimal

sequencing of project activities. Utilising modern project management software significantly
enhances the efficiency and accuracy of network scheduling. This lecture will cover an
overview of project management software for network scheduling and delve into advanced
techniques in the Critical Path Method (CPM) and resource allocation.

To ensure successful project delivery, optimised resource usage, and timely completion, project
managers must have a good understanding of the available tools and techniques, including
advanced methods in CPM and resource allocation.

Highlights on Key Concepts

1. Project Management Software: Essential for efficient network scheduling and project
execution.
2. Critical Path Method (CPM): Key technique for identifying the longest sequence of
dependent tasks and optimizing project timelines.
3. Advanced CPM Techniques: Include float analysis, crash analysis, and fast-tracking.
4. Resource Allocation: Critical for optimizing the use of resources and ensuring project
efficiency.
5. Software Integration: Enhances project management capabilities through automation
and comprehensive data analysis.

Mastering these concepts and utilising appropriate software tools, can enable Project managers
to significantly improve their scheduling and resource management processes, leading to more
successful project outcomes.

a) Overview of Project Management Software for Network

Scheduling
Definition and Purpose

i. Project Management Software: Tools designed to assist project managers and teams
in planning, executing, and closing projects efficiently.
ii. Network Scheduling: A technique used to plan and control the sequence of project
activities to ensure timely project completion.

Key Features of Project Management Software

i. Task Management: Creating, assigning, and tracking tasks and subtasks.

ii. Gantt Charts: Visual representations of project schedules, showing task durations and
dependencies.
iii. Critical Path Analysis: Identifying the longest sequence of dependent tasks and
determining the shortest possible project duration.

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 iv. Resource Management: Allocating and optimizing resources (human, equipment,
materials).
v. Collaboration Tools: Facilitating communication and collaboration among project
team members.
vi. Progress Tracking and Reporting: Monitoring project progress and generating
performance reports.

Popular Project Management Software Tools

i. Microsoft Project: Comprehensive project management tool with robust scheduling

and resource management features.
ii. Primavera P6: Widely used in large-scale construction and engineering projects,
known for its powerful scheduling capabilities.
iii. Asana: User-friendly tool suitable for smaller projects, emphasizing task management
and team collaboration.
iv. Trello: Visual project management tool based on Kanban boards, ideal for agile project
management.

Benefits of Using Project Management Software

i. Improved Planning and Scheduling: Enhanced ability to create accurate project

schedules and timelines.
ii. Increased Efficiency: Automation of routine tasks and better resource allocation.
iii. Enhanced Collaboration: Centralized platform for team communication and
document sharing.
iv. Real-Time Tracking: Up-to-date information on project progress and potential
delays.
v. Better Decision-Making: Data-driven insights into project performance and
resource utilisation.

b) Advanced Techniques in Critical Path Method (CPM) and

Resource Allocation

Critical Path Method (CPM)

a) Definition: CPM is a project modelling technique used to predict project duration by

identifying the longest sequence of dependent activities (critical path) and the earliest
and latest they can start and finish without delaying the project.

b) Steps in CPM:
1. Activity Definition: List all project activities.
2. Activity Sequencing: Determine dependencies between activities.
3. Network Diagram: Create a visual representation of activities and their
dependencies (e.g., activity-on-node (AON) diagrams).
4. Duration Estimation: Estimate the time required for each activity.
5. Critical Path Identification: Calculate the longest path through the network
diagram.

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 6. Schedule Adjustment: Identify and address critical activities to avoid project
delays.

c) Advanced Techniques in CPM

1. Float Analysis: Determining total float (slack) for each activity to identify
scheduling flexibility.
2. Crash Analysis: Shortening the project duration by reducing the time of critical
path activities through additional resources.
3. Fast Tracking: Performing critical path activities in parallel instead of
sequentially to reduce project duration.

Resource Allocation

a) Definition: The process of assigning and managing resources (human, financial,

material) to project activities to optimize efficiency and effectiveness.
b) Resource Leveling: Adjusting the project schedule to address resource constraints and
avoid over-allocation.
c) Resource Smoothing: Modifying activities within their float limits to reduce resource
demand fluctuations.

Techniques for Effective Resource Allocation

a) Resource Histograms: Visual representations of resource usage over time to identify

periods of over or under-allocation.
b) Multi-Project Resource Scheduling: Allocating resources across multiple projects,
balancing workloads, and avoiding conflicts.
c) Priority Rules for Resource Allocation: Establishing criteria for assigning resources to
activities (e.g., shortest task first, most critical task first).

Implementing Advanced CPM and Resource Allocation in Software

a) Automated Scheduling: Using software algorithms to generate optimized project

schedules and critical paths.
b) Scenario Analysis: Testing different resource allocation scenarios to determine the
most efficient project plan.
c) Integration with Other Tools: Combining project management software with resource
management, time tracking, and financial systems for comprehensive project control.

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Expert Systems for Construction Applications
The following lecture notes provide an overview of expert systems and AI in construction,
highlighting their applications in risk management, quality control, and decision support.

a) Introduction to Expert Systems and Artificial Intelligence in Construction

Introduction
Overview of Expert Systems
• Definition: Expert systems are advanced computer programs designed to simulate the
decision-making abilities of a human expert. They provide solutions to complex
problems by reasoning through bodies of knowledge, represented primarily in the form
of "if-then" rules.

• Components:
• Knowledge Base: Contains specialized knowledge and rules from human
experts in the field.
• Inference Engine: Applies logical rules to the knowledge base to infer new
information or make decisions.
• User Interface: Facilitates interaction between the user and the system, allowing
users to input data and receive output.
Overview of Artificial Intelligence (AI)
• Definition: AI involves the creation of intelligent machines capable of performing tasks
that typically require human intelligence. This includes learning from experience,
understanding natural language, recognizing patterns, and making decisions.

• Key Areas of AI:

• Machine Learning (ML): Algorithms that allow computers to learn from data
and improve their performance over time without being explicitly programmed.
• Natural Language Processing (NLP): Enables machines to understand and
interpret human language.
• Computer Vision: Allows machines to interpret and make decisions based on
visual data.
• Robotics: The design and use of robots to perform tasks, often in collaboration
with AI for enhanced functionality.

Importance of Expert Systems and AI in Construction

• Enhanced Decision-Making: Expert systems and AI provide construction managers
with the tools to make informed decisions based on comprehensive data analysis and
simulations.
• Efficiency and Productivity: Automating complex tasks and optimizing resource
allocation lead to increased efficiency and productivity on construction projects.

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 • Risk Management: These technologies help in identifying, assessing, and mitigating
risks, thereby reducing potential delays and cost overruns.
• Quality Control: AI and expert systems ensure that construction processes and
outcomes meet the required quality standards by facilitating accurate and consistent
inspections.
Historical Context and Evolution
• Early Development: Expert systems emerged in the 1960s as rule-based systems aimed
at replicating the decision-making process of human experts.
• Advancements: Integration with AI technologies like machine learning and natural
language processing has significantly expanded their capabilities, making them more
robust and versatile.
• Modern Applications: Today, expert systems and AI are widely used in various sectors,
including construction, for tasks such as project management, risk assessment, and
quality control.
Applications in Construction
Project Management
• Scheduling: AI-driven project management tools can create and adjust project
schedules dynamically, considering real-time data and potential delays.
• Resource Allocation: Optimize the use of materials, labor, and equipment to ensure that
resources are used efficiently and effectively.
Risk Management
• Prediction and Prevention: Use historical data and AI algorithms to predict potential
risks and suggest preventative measures.
• Real-Time Monitoring: Implement sensors and IoT devices to continuously monitor
construction sites and identify potential issues before they escalate.
Quality Control
• Automated Inspections: Use computer vision and AI to perform detailed inspections of
construction work, ensuring adherence to quality standards.
• Defect Detection: Early identification of defects in materials or workmanship, reducing
the need for costly rework.
Decision Support
• Scenario Analysis: Evaluate various project scenarios to understand potential outcomes
and make informed decisions.
• Data-Driven Insights: Leverage big data and AI to gain insights into project
performance, helping to optimize processes and improve outcomes.
Future Trends
• Integration with IoT: Increased use of Internet of Things (IoT) devices for real-time
data collection and analysis, enhancing the capabilities of AI and expert systems.
• Advancements in AI: Ongoing improvements in AI algorithms and technologies will
lead to more accurate and reliable expert systems.
• Widespread Adoption: As the benefits of expert systems and AI become more apparent,
their adoption in the construction industry is expected to grow, leading to more
efficient, safe, and high-quality construction projects.

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