The British University in Egypt

Project Management &

Construction Economics
21ARCH16I
Dr. Ayman Ahmed Ezzat Othman
Ph.D., M.Sc., B.Sc., PMI, SAVE, ASCAAD
Professor of Construction and Project Management
Head of Architectural Engineering Department
The British University In Egypt
Is the New Capital a Is the New Alameen
Project? a Project?
Is the study model in Is getting your degree
your design module a a Project?
Project?
Could we consider producing a film a
project?
What is a
Project?

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Project is defined as:
a temporary
endeavor
undertaken to create
a unique product,
service, or result.
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Temporary
Project has a definite Beginning and
End.

The Project end is reached when:

◦ Objectives have been achieved.
◦ It becomes clear that the objective will
not or can’t be met.
◦ Temporary does not mean short duration

Projects are not ongoing effort.

Team is disbanded when project

ends.
Unique product, service, or
result :
The product, service, or result is
different in some way from other
products or services.

The Longaberger Company Bahá'í House of Worship 8

A product or service may be unique even
if the category it belongs to is large.

 Forinstance: hundreds of houses

developed are unique. Every one has a
different client, location, requirements,
budget, specification, etc.

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 Others defined a Project as:
Implementing a change, event,
solution, or a new venture
which uses a range of special
project management
techniques to plan and control
the scope of work in order to
deliver a product to satisfy the
client’s and stakeholders
needs and expectations
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Attributes of Projects
A project has a well-defined
objective
A project carried out through a
series of interdependent tasks
A project has a various resources
A project has a timeframe
A project may be unique or one-
time endeavor
A project has a customer
A project involves a degree of
uncertainty
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The Relationship between Project Management,
Programme Management and Portfolio
Management

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 Programme
Management

The management of a collection

of projects related to some
extent to achieve a common
objectives
 Portfolio
Management

The management of a number

of programmes that DO NOT
share a common objectives
 Projects &
Strategic Planning

Projects are often utilized as a means

of achieving an organization’s
strategic plan. Projects are typically
authorized as a result of one or more
of the following strategic
considerations:
Market demand:(e.g., a car company authorizing a project to
build more fuel-efficient cars in response to gasoline shortages).

Strategic opportunity/business need (e.g., a training

company authorizing a project to create a new course to increase
its revenues such as BIM Course),

Customer request (e.g., an electric utility authorizing a project

to build a new substation to serve a new industrial park),

Technological advance (e.g., an electronics firm authorizing a

new project to develop a faster, cheaper, and smaller laptop after
advances in computer memory and electronics technology),

Legal requirements (e.g., a chemical manufacturer authorizes

a project to establish guidelines for the handling of a new toxic
material).
Who is the Project
Manager?

He/She is the
person ultimately
responsible for the
success or failure
of a project.
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Causes of Project
Failure

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 Project Failure Factors (PFFs)
Poor project management.
Poor planning and scheduling.
Inaccurate cost estimation.
Unclear scope and goals.
Inefficient resources allocation.
Poor design, Frequent design
changes, Design errors.
Poor communication.
Lack of financial capacity.
Bureaucracy and corruption.
Leadership problems.
Lack of experience and
knowledge.
Delays in payment.
Lack of technical performance.
Subcontractor failure.
Poor contractor performance.
Poor quality.
Poor monitoring and tracking.
Poor site management
Poor management of expectations.
Weather and social environment.
Cultural Differences in global
projects.
Lack of proper contract
administration 19
 Factors of Project
Success

 Stakeholders are identified and their

expectations are met
 Senior management support
 There is clearly stated purpose and sound plan
 Goals and objectives are understood and
communicated
 Technically competent and committed team
 Excellent communication
 trust
 Attributes of a successful Project
Manager
 Ability to select and develop an operational team from
the standing start.
 Leadership and management ability.
 Ability to anticipate problems, solve problems and make
decisions.
 Ability to integrate the project stakeholders.
 Operational flexibility.
 Ability to plan, expedite and get things done.
 Ability to negotiate and persuade.
 Understand the environment within which the project is
being managed.
 Ability to review, monitor and control.
 Ability to administer the contract, scope of work and
scope changes.
 Ability to keep the client happy.
 The Pros and Cons of Becoming a
Project Manager
Pros:
 • It can often be a steppingstone to promotion.
 • It provides a strong sense of accomplishment.
 • There’s considerable variety: no two days are alike.
 • There’s significant freedom of choice.
 • It affords the opportunity to effect change across the
organization.

Cons:
 • It requires significant tolerance for politics.
 • It requires significant tolerance for ambiguity and
uncertainty.
 • There’s a lot of responsibility, but little or no authority.
 • You may feel “disconnected” from your technical
discipline.
 • You may be perceived by some as not having “a real
job.”
 WHAT ARE THE
SIMILARITIES &
DIFFERENCES BETWEEN
PROJECTS AND
OPERATIONS?
 Projects versus Operational Works

Similarities between Projects

and Operations
Both performed by people.
Both are constrained by limited resources.
Both are planned, executed and controlled.
 Differences bet. Projects and
Operations

The purpose of the project is to attain

its objective and then terminate.
The objective of an ongoing operation
is to sustain the business.
The project concludes when its
specific objective have been attained.
Operations adopt a new set of
objectives and the work conditions.
 The Vital 12
Advises for
Project Manager
Understand the Context of Project management
Recognise the project team conflict as progress
Understand who the stakeholders and what they
want.
Accept the political nature of organisations and
use it to your advantage.
Lead from the front, the view is better
Understand what “Success” means
Build and maintain cohesive team
Enthusiasm and despair both are infections
One look forward is worth two looks backwards
Remember what are you trying to do.
Use time carefully or it will use you.
Above all, plan, plan, plan.
What is Project
Management?
 The PMI defines project
management
as “the application of
knowledge, skills, tools and
techniques
to project activities to meet
or exceed stakeholders
needs and expectations from
a project”
 The APM defines project management
as “the most efficient way of introducing a
change ….. Achieved by
 Defining what has to be accomplished in terms of time,
cost and various technical quality performance
parameters.

 Developing a plan to achieve these and then working this

plan, ensuring that progress is maintained in line with
these objectives.

 Using appropriate project management techniques and

tools to plan, monitor and maintain progress.

 Employing persons skilled in project management

including a project manager as the single point of
responsibility for introducing a change and accountable for
its successful accomplishment.
Project management has two
major aspects:

ART

SCIENCE
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The art of project management
relates to the fact that projects
are really about people getting
things done. Project management
requires a keen knowledge of
human behavior and the
ability to skillfully apply
appropriate interpersonal skills.
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 The science of Project
Management involves
the knowledge,
understanding, and skillful
application of a prescribed
project management
processes.
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 These processes are intended
to guide project managers and
project teams in effectively
performing key process steps, such
as
identifying the true need,
defining the project objective,
creating and executing schedule,
and maintaining control throughout
the entire project.
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Types of
Projects

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• Business • Pure
Improvement Research
• Project Development • Change
Initiative

Quest Fog

Painting
by Movie
Numbers
• Construction • Film
Engineering Projects Production
• High certainty • System
Projects development

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Fog Type
• Fog type projects can be
described as walking in thick
fog.
• On these type of projects, the
project participants &
stakeholders are not sure
what is to be achieved or how
it is to be carried out.

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Movie Type
• Movie type projects are
projects where participants &
stakeholders have a high
degree of certainty of how
the project is to be carried
out but not what is to be
delivered.

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Quest Type
• Quest type projects are also
known as semi-closed
projects. On quest projects,
the project participants &
stakeholders have a high
degree of certainty of what
should be done, but they are
not sure of how to achieve it.

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Painting by Numbers
Type
• Painting by numbers projects
are know as closed projects.
The project participants and
most of the stakeholders
have a high degree of
certainty about what is to be
done and how to achieve it.

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 History of
Project
Management

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Could the Crusades have been
launched and the soldiers armed
and fed without effective project
management?

Could the Great Wall have been

built with ingenious natural
materials and a team of millions
over a span of a thousand years
without project management?

It is possible to say that the concept of project

management has been around since the beginning of
history.
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Project Management has
enabled leaders to plan bold
and massive projects and
manage funding, materials
and labour within a
designated time frame.

What leaders from the distant

past managed to accomplish
is amazing and without the
project management tools
available today. 43
During the industrial revolution business
and industry grew and expanded rapidly
across continents.

With the coming of automation, everything

was done on a larger scale.

The ability to manage projects in the way of

budgets, supplies and labour at various or
secondary locations was crucial and
motivated the investigation of new ideas to
streamline methods.

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The Father of Scientific
Management
In America in the early 1900's a pioneering
scientist named Frederick Taylor tested his
theories on worker productivity by creating a
methodology for the measuring and
performance of certain tasks by workers in
steel mills.

He was interested in discovering new and

better ways for workers to perform a job
rather than by simply insisting that they work
harder and longer. 45
Taylor's friend, Henry Gantt (1861-
1919) was the first to design charts and
diagrams to document and measure the
processes involved in Navy ship building
during WWI.

By charting and analysing each step in

the ship building process he was able to
see the big picture and extract
information about the relationships
between functions.

The Gantt chart became an important

tool for project management and has
been used for the last 100 years.
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Gantt Chart

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In 1916 Henri Fayol , A French
Industrialist presented a
management process consists of:

(1) Planning
(2) Organising
(3) Commanding
(4) Directing
(5) Controlling

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During the 1950's
 The development of Program Evaluation
and Review Technique (PERT).

 The development of the concept of

Critical Path Method (CPM)

 The development of the concept of

Single Point of Responsibility.

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During the 1960's
The development of Project management tools
such as:
 Matrix Organisation Structure
 Network Diagram
 Earned Value
 Project Life Cycle
 Configuration Management
 Value Engineering
 Work Breakdown Structure

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During the 1970s
 The establishment of the Project
Management Institute in the United
States and the Association of Project
Management in the UK.

These associations began to state the

roles of the profession and refine the
concepts and tools for managing
projects.

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During the 1980s
 Integrating time, cost and quality as a
triangle of balance requirements.

 Increasing the awareness of the effect of

external issues (such as stakeholders).

 The PMBOK was developed to offer an

integrated and structural approach rather
than an ad-hoc collection of tools and
techniques.
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The period between 1990s – 2000s
Increasing competition between
companies as a result of the GATT
(General Agreement on Tariffs and Trade)
agreement.

Companies adopted more flexible

organization structure through using a
Management by projects approach, where
they can assign their work to many small
project teams, which will be able quickly
respond to market demand, innovation
and new ideas. 53
 The concept of Total Quality Management
(TQM) was emerged which focuses on the
customer, continuous improvement, team
work and management through the Project
Life Cycle.

 The development of the concept of Project

Office not only as a place for managing
projects, but as a centre of excellence to
develop Project Management culture within
the company.

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Why Project
Management?

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(1) Better efficiency in
delivering services
Project management
provides a “roadmap” that
is easily followed and leads
to project completion.
Once you know where to avoid the
bumps and pots holes it stands to reason
that you’re going to be working smarter
and not harder and longer.
(2) Improved/increased/enhanced
customer satisfaction

Whenever you get a project done

on time and under budget, the
client walks away happy. And a
happy client is one you’ll see
again. Smart project
management provides the tools
that enable this client/manager
relationship to continue.
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 (3) Enhanced effectiveness in delivering
services
The same project management strategies
that allowed you to successfully complete
one project will serve you many times
over.
(4) Improved growth and development
within your team
Positive results not only command respect
but more often inspire your team to continue
to look for ways to perform more efficiently.
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(5) Greater standing and competitive edge
This is not only a good benefit of project
management within the workplace but outside
of it as well; word travels fast and there is
nothing like superior performance to secure
your place in the marketplace

(6) Opportunities to expand your services

A by-product of greater standing. Great
performance leads to more opportunities to
succeed.
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 (7) Better Flexibility
Perhaps one of the greatest benefits of
project management is that it allows for
flexibility.

Sure project management allows you to map

out the strategy you want to take to see your
project completed. But the beauty of such
organization is that if you discover a smarter
direction to take, you can take it. For many
small-to-midsize companies, this alone is
worth the price of admission. 60
 (8) Increased risk assessment

When all the players are lined up and your

strategy is in place, potential risks will jump
out and slap you in the face. And that’s the
way it should be. Project management
provides a red flag at the right time:
before you start working on project
completion.
 (9) Increase in Quality
Goes hand-in-hand with enhanced
effectiveness

(10) Increase in Quantity

Often the result of better efficiency, a simple
reminder regarding the benefits of project
management.

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 Thank You
Dr. Ayman A. E. Othman

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