In the name of Allah the Most Gracious the Most Merciful

CE-301
Construction Engineering
and Management

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 LECTURE 1

FUNDAMENTALS OF PROJECT
MANAGEMENT

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 What is a Project?

PROJECT

A PROJECT can be considered to be any

series of activities that:
have a specific objective to be completed
within certain specifications
have defined start and end dates
have funding limits (if applicable)
consume resources
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 Components of a Project

A project consists of three components:

 Scope (the work to be accomplished)

 Budget (costs, measured in rupees and/or
labour-hours of work)
 Schedule (logical sequencing and timing
of the work to be performed)

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 MANAGEMENT
Management may be defined as a process (a
systematic way of doing things) consisting of
planning (thinking of actions in advance),
organising (co-ordinating the human & material
resources of the organization), actuating
(motivating & directing sub-ordinates) and
controlling (attempt to ensure that there is no
deviation from the norm or plan), performed to
determine and accomplish the objectives by the
use of people and resources.

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 PROJECT MANAGEMENT

The management of a project generally

follow these steps:
Step 1: PROJECT DEFINITION
(to meet the needs of the end user)
 Intended use by the owner after
completion of construction
 Conceptual configurations and
components to meet the intended use

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 PROJECT MANAGEMENT

STEP 2: PROJECT SCOPE

(to meet the project definition)
 Define the work that must be
accomplished
 Identify the quantity, quality, and tasks that
must be performed

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 PROJECT MANAGEMENT

STEP 3: PROJECT BUDGETING

(to match the project definition and scope)
 Define the owner’s permissible budget
 Determine direct and indirect costs plus
contingencies

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 PROJECT MANAGEMENT

STEP 4: PROJECT PLANNING

(the strategy to accomplish the work)
 Select and assign project staffing
 Identify the tasks required to accomplish
the work

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 PROJECT MANAGEMENT

STEP 5: PROJECT SCHEDULING

(the product of scope, budgeting, and
planning)
 Arrange and schedule activities in a logical
sequence
 Link the costs and resources to the
scheduled activities

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 PROJECT MANAGEMENT

STEP 6: PROJECT TRACKING

(to ensure the project is progressing as
planned)
 Measure work, time, and costs that are
expended
 Compare “actual” to “planned” work, time,
and cost

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 PROJECT MANAGEMENT

STEP 7: PROJECT CLOSE-OUT

(final completion to ensure owner
satisfaction)
 Final testing, inspection, and payment
 Turn over of the project to the owner

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 FUNCTIONS OF MANAGEMENT

• Newman & Summer recognizes only four

functions of management, namely, organising,
planning, leading and controlling.
• Henri Fayol identifies five functions of
management, viz. planning, organizing,
commanding, co-ordinating and controlling.
• Luther Gulick states seven such functions under
the catch word ‘POSDCORB’ which stands for
Planning, Organising, Staffing, Directing, CO-
ordinating, Reporting and Budgeting.
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 FUNCTIONS OF MANAGEMENT

Five basic functions of management:

• Planning
• Organising
• Staffing
• Directing
• Controlling

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 FUNCTIONS OF MANAGEMENT

• PLANNING
Planning is the formulation of a course of action
to guide a project to completion. It starts at the
beginning of a project, with the scope of work,
and continues throughout the life of a project.
Successful project planning is best
accomplished by the participation of all parties
involved in a project. There must be an explicit
operational plan to guide the entire project
throughout its life.
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 FUNCTIONS OF MANAGEMENT

• ORGANIZING
Organizing is the arrangement of resources in a
systematic manner to fit the project plan. A
project must be organized around the work to be
performed. There must be a breakdown of the
work to be performed into manageable units,
that can be defined and measured. The work
breakdown structure of a project is a multi-level
system that consists of tasks, subtasks, and
work packages.
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 FUNCTIONS OF MANAGEMENT
• STAFFING
Staffing is the selection of individuals who have
the expertise to produce the work. The persons
that are assigned to the project team influence
every part of a project. Most managers will
readily agree that people are the most important
resource on a project. People provide the
knowledge to design, coordinate, and construct
the project. The numerous problems that arise
throughout the life of a project are solved by
people.
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 FUNCTIONS OF MANAGEMENT

• DIRECTING
Directing is the guidance of the work required to
complete a project. The people on the project
staff that provide diverse technical expertise
must be developed into an effective team.
Although each person provides work in his or
her area of expertise, the work that is provided
by each must be collectively directed in a
common effort and in a common direction.

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 FUNCTIONS OF MANAGEMENT
• CONTROLLING
Controlling is the establishment of a system to
measure, report, and forecast deviations in the
project scope, budget, and schedule. The
purpose of project control is to determine and
predict deviations in a project so that corrective
actions can be taken. Project control requires
the continual reporting of information in a timely
manner so that management can respond during
the project rather than afterwards. Control is
often the most difficult function of project
management. 20
Project Planning vs Project Scheduling

 What is Project Planning ?

o Process of selecting a method/ order of
work to be used on a project among the
various methods/ sequences possible.
 What is Project Scheduling ?
o Determination of the timing and sequence
of operations in the project and their
assembly to give the overall completion
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time.
 Project Planning Objectives

 Project Planning Objectives

o What
o How
o Who
 Project Planning is Making Decisions
 Project Planning Operations

 Fundamental to the Planning Process is

a Chain of Following Operations
o Information Search and Analysis
o Development of Alternatives
o Selection of Alternatives
o Execution and Feedback
 Project Planning Fundamentals
 Foundation for Several Other Related
Functions i.e. Estimation, Scheduling,
Project Control, Claims
 Planning Process is Generally 80%
Memory of Historic Procedures and 20%
Creative Thoughts.
 Baseline for Project Control
 Owning of a Project Plan
CHARACTERISTICS OF A GOOD PLAN

• Be based on clearly defined OBJECTIVES

• Provide an appropriate WORK BREAKDOWN
STRUCTURE
• Allocate RESPONSIBILITY clearly
• Provide detailed TARGETS / OBJECTIVES /
ESTABLISH STANDARDS
• Be APPROPRIATE
• Be PRACTICABLE
• Be FLEXIBLE
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CHARACTERISTICS OF A GOOD PLAN

• Be DEFINITE
• Be ORDERLY
• Provide CONTINUITY OF WORK
• Provide a BALANCE OF WORK where possible
• EXPLOIT E EXISTING RESOURCES to the
maximum
• Have CONSULTED with all interested parties,
and APPROVAL obtained.

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 Assignment 1

 Define and Explain Terms “Planning and

Scheduling”
 Prepare a Plan for Your Choice of Activity.
Document your Assumptions Concerning
Resources, Sequence, and Timings.
 Examples of Activity are:
o Building your Home
o Buying or repairing your Car
o Opening your new Business
o Building a new road