PROJECT MANAGEMENT

TRAINING
Lecture 01
Basic Concepts
• Project: According to PMBOK “ project is a
temporary endeavor undertaken to create a
unique product, service, or result”
• Project Management: According to PMBOK
“project management is application of
knowledge, skills, tools, and techniques to
project activities to meet the project
requirements”
Session 1 Overview

1 • Schedule Management

2 • Cost Management

• Communication and
3 Team Management
1. Schedule and Time Management
• Schedule Estimation
Tools & Techniques
• Critical Path Method
• Resource
Optimization
• Schedule
Compression
Techniques
Estimation Tools & Techniques
• EXPERT JUDGMENT
• Expertise should be considered from individuals or groups with specialized knowledge
or training in the following topics:
o Schedule development, management, and control;
o Expertise in estimating; and
o Discipline or application knowledge.

• ANALOGOUS ESTIMATING
o Analogous estimating is a technique for estimating the duration or cost of an
activity or a project using historical data from a similar activity or project.
o Analogous estimating uses parameters from a previous, similar project, such as
duration, budget, size, weight, and complexity, as the basis for estimating the
same parameter or measure for a future project.
o Analogous estimating is generally less costly and less time-consuming than other
techniques, but it is also less accurate.
Estimation Tools & Techniques

• BOTTOM-UP ESTIMATING

• Bottom-up estimating is a method of estimating project duration or cost by

aggregating the estimates of the lower level components of the WBS.
• When an activity’s duration cannot be estimated with a reasonable degree of
confidence, the work within the activity is decomposed into more detail. The
detail durations are estimated.
• These estimates are then aggregated into a total quantity for each of the activity’s
durations.
• Activities may or may not have dependencies between them that can affect the
application and use of resources. If there are dependencies, this pattern of
resource usage is reflected and documented in the estimated requirements of the
activity.
Estimation Tools & Techniques
•THREE-POINT ESTIMATING
• The accuracy of single-point duration estimates may be improved by considering estimation uncertainty and risk.
• Using three-point estimates helps define an approximate range for an activity’s duration:

• Most likely (tM). This estimate is based on the duration of the activity, given the resources likely to be assigned,
their productivity, realistic expectations of availability for the activity, dependencies on other participants, and
interruptions.
• Optimistic (tO). The activity duration based on analysis of the best-case scenario for the activity.
• Pessimistic (tP). The duration based on analysis of the worst-case scenario for the activity.

• Depending on the assumed distribution of values within the range of the three estimates, the expected duration,
tE, can be calculated. One commonly used formula is triangular distribution: tE = (tO + tM + tP) / 3.

• Triangular distribution is used when there is insufficient historical data or when using judgmental data.

• Duration estimates based on three points with an assumed distribution provide an expected duration and clarify
the range of uncertainty around the expected duration.
Critical Path Method-Objectives
Plan for the fastest completion of the project

Identify activities whose delays is likely to affect the

completion date for the whole project

Very useful for repetitive activities with well known

completion time

It gives the shortest time to complete a project

Critical Path Method-Example
 Critical Path Method-Basic Concepts
The forward pass
– calculate the earliest start dates of the Activities
to calculate the project completion date
The backward pass
– calculate the latest start dates for activities
to identify the critical path from the graph
Float: Time allowed for an activity to delay
Total float (without affecting project completion)
= latest start date – earliest start date
Free float (without affecting the next activity)
= earliest start date of next activity – latest end date of previous activity
 Critical Path Method-Example Solution

1 1 1 1 1 I
2
G H
1 5 6 8 9 0
1 1 1 1 1 2
5 3 2
B 6 C 8 1 5 6 8 9 0
1 A 2 3 5
Sta
rt 1 1
1 2 2 3 3 5 6 3 8 F
6 6
2 2
1 1
9 D 0 0
0
1
20
9 2
0

1 Finis
9 E h
1
1 2
3 0
8
20
A B C G F = 16
ABCDGHI=
20
ABCDGF=
16
A B C E =11
Resource Optimization
• Resource leveling
Resource Leveling is primarily driven by resource constraints, like
you do not have more than 45 hours of the given resource for a
week.
Resource Leveling is primarily driven by resource constraints, like
you do not have more than 45 hours of the given resource for a
week.
The allocation limits identified in resource leveling must be
applied.
The resource leveling is done first and then we do the resource
smoothing. Since we need to first accommodate the resource
constraints before we can optimize it.
Resource Optimization
• Resource Smoothing
We apply resource smoothing after doing resource leveling
and we make use of slack and will not result in change of
project duration.
Resource smoothing is more to do with desired limits, like we
do have 45 hours available for given resource, but we wish
that we allocate 38 hours per week, so we have some
breathing space.
The desired limit identified in resource smoothing may not be
applied in some cases, if we do not have slack.
We apply resource smoothing after applying resource leveling.
SCHEDULE COMPRESSION Techniques

– Crashing. A technique used to shorten the schedule duration for the

least incremental cost by adding resources.
• A few examples of crashing techniques are:
• Overtime
• More resources
• Monetary rewards
• Example
• You are constructing a room. According to the duration estimate, two
masons will take four days to complete it.
• You have to reduce the duration of this activity by crashing. You add two
more masons to complete the task in two days.
SCHEDULE COMPRESSION Techniques

– Fast tracking. A schedule compression technique in which activities or phases

normally done in sequence are performed in parallel for at least a portion of their
duration.
In fast-tracking, you review the critical path and list all vital activities. Then you
analyze which ones can be performed partially or fully parallel with other activities.
• Example
• Let’s say that you are building a school and construction work is about to finish.
Afterward, you will start carpentry and electrical works.
• When you review your progress, you see that you are behind schedule; you have to
move faster to complete the project on time.
• You will review the carpentry and electrical work activities and see if you can perform
them in parallel. Then, you can apply fast-tracking.
• In this case, you can start the electrical and carpentry work at the same time
2. Cost Management
• Cost Estimation
Tools & Techniques
• Construction
Project Cost
• (Direct & Indirect
Costs)
Cost Estimation Tools & Techniques
Rough Order of Magnitude Estimate (ROM)
• Used for initial project planning
• Based upon historic data
• Cost per unit of capacity
• cost per bed • cost per room • Within + or -
20% accuracy • Also known as top-down
estimate
Cost Estimation Tools & Techniques
Square Foot/Square Meter Estimate
• Based upon building use
• Used when only approximate size and basic
parameters are known
• Elevations
• Floor Plans
• Main systems
• Within + or - 15% accuracy
Cost Estimation Tools & Techniques
Unit Price Estimate
• Requires working drawings and specifications
• Can be done at various stages of drawings
and specifications
• During tendering based on BOQ
• Also known as bottom-up estimate
• Within + or - 5% accuracy
SF Estimate Exercise

Attached
Sources of Cost Information
• Current Records usually from a database
(organized & protected)
• Subcontractor Quotations
• Vendor Quotations
• Published Cost Data
• Old Estimates
• Experience
Construction Cost Types

Direct Costs

Indirect Costs

(Only Discussion See Handout 02)

3. Communication & Team Management
• Communication
and Its Methods
• Tips for Effective
Communication
• Team Conflict
Management
• Team Building
Activities
What is Communication?
Communication is all about
– Right information,
– In the right format,
– In the right amount,
– With the right target audience,
– At the right time,
– At the right frequency,
– And via the right communication channels.
Communication Methods
Tips for Effective Communication

• Make sure that the information has not only been received by the
receiver but it also has been understood.
• Make sure there are no barriers to interactions and communications
among stakeholders other than confidentiality or legal constraints, if any.
• Information exchange media should be chosen according to the situation.
For example, it must be carefully decided whether the medium should be
informal verbal or formal written.
• Project communications standards usually include a consistent writing
style, which must be followed for all written communications.
• Meeting management, facilitation, and presentation techniques must be
in compliance with project communications standards
Team Conflict Management

• Negative conflicts, such as personality conflicts

can prove to be disastrous to a project if not
resolved and managed quickly.
• However, Conflicts on a project are inevitable but
not all the conflicts are bad. For example,
differences of opinion on the design of a solution
can help the team consider multiple alternatives
and chose the best one.
• Conflicts can be resolved by following techniques
Team Conflict Management
Team Building Activities
Team-buildings activities are instrumental in

enhancing the team cohesiveness

 improving working relationships
 building trust among the team members.
Tuckman Team Development Model
QUESTIONS?