Project and Risk Management report 2500 word on (Burj Khalifa, Dubai)

What is project management?

project – “a temporary endeavour undertaken to create a unique product, service, or result.

Project Performance objectives

The Iron Triangle:

Project management is the application of processes, methods, skills, knowledge and experience to achieve specific project objectives according to the project acceptance criteria within agreed parameters. Project management has final deliverables that are constrained to a finite timescale and budget.” APM

what the different between PM and management? PM have result and ending time, on the other hand Management is ongoing processes.

What PM do exactly? Initiates

Plans

Executes

Controls

Closes and evaluates

WHAT PM CONSTRACTION DO? The main duty of the construction supervisor is to motivate and coordinate activities of other workers to get the job done on time. Supervisors serve as the link between workers and top management levels of the organization. They operate at the first line of management.

The responsibilities of the construction supervisor include making sure that;

1. All work meets the right quality

2. Cost does not overrun budget due to mistakes

3. Work is completed on time

The supervisor instructs workers on what to do

• Motivates workers to accomplish all objectives

• Encourages teamwork spirit

• Ensures workers are disciplined

• Deals with all manner of conflicts arising at the work site

• Promotes a good relationship between the workers and the

general public

• Ensures plans and schedules are adhered to by regular

inspection and quality control

· • Trains and develops the workforce to meet new challenge

Identify project life cycle phases?

What is phases? Its group of activity?

Initiates:

the agreement between the PM and the stockholders what this project about what is deliver who’s benefit.

Planning: feasibility and design. Time and quality. Is the project profitable.

Executes:

· Implementation / Construction

· Commissioning / Contracting

· Operation & Maintenance

Closing:

· Decommissioning

· Release

What do you observe?

The project managers’ activities correspond to the phases in the project life cycle.

What the Project Management process? The waterfall process?

1- CONTRACT: Agree the success criteria and major constrains with the customers. (What do you want to define in the first document?

2- Quality – what do you want to deliver?

3- Time – When do you want to deliver?

4- Cost – How much is it going to cost?

5-

2. Break down the objectives into tasks

3. Estimate time and costs for each task -+ 10% not the average.

Break down structure.

4. Assess dependencies and draw critical path – how long will the project take?

Critical path diagram

5. Consider crashing or overlapping critical tasks.

How can you do this?

1-Money up on some of the tasks

2-Reduce the quality of some outputs

Which activities can you crash?

ONLY the ones on the critical path, NONE of the floating tasks.

6. Draw Gantt for the whole project - Only after doing the network diagram.

How to draw the Gantt chart?

First: critical path

Then: floating tasks

Why is the Gantt diagram important?

Communication

Resource Planning

Monitor progress

7. Calculate resource requirement over time: adjust using float of non-critical tasks.

8. Assess risks and prepare action plans.

What might go wrong?

How can we make it less likely?

How can we make it less serious?

9. Monitor progress to the Gantt chart

deeper consideration of the critical tasks.

Have monthly meeting to monitor the progress.

10. Monitor cumulative costs – monitor finance

11. Re-schedule – if needed

More money or more time.

12-REVIEW: Learn.

What right and what wrong.

Time management

What are the main three project parameters that a PM should control?

Time, cost and quality. time management is to know how much will spent on activity and who is working on this activity. Using precedence diagrams and timescale.

Network analysis is also known as critical path method

How is a project organised?

Initiating, planning, executing and closing.

For each of those element have many activits 1 define activity , identify task and produce project deliverables.

How can we represent the activities?

in a diagram 1- arrow diagram

2. Precedence Diagram

Precedence Diagram more useful as the focus is on an ACTIVITY on the NODE which can include data

First of all we need to break down the activity and to be defined.

Second to know how long each activity will take, we can use this information to understand the duration of the project.

Third a network schedule of the activity need to be completed.

Lastly present the activity on a activity box.

Scheduling in Activity Box

More time more money more quality more money.

Early Start – The earliest time that an activity can start according to the logical constraints.

Duration – The estimated time to undertake the activity.

Early Finish – The earliest time that an activity can finish according to logical constraints.

Late Start – The latest time that an activity can start according to logical constraints and without affecting the overall project duration.

Float – The time by which an activity may be delayed without affecting the overall project duration.

Late Finish – The latest time that an activity can finish according to logical constraints and without affecting the overall project duration.

Once we defined the duration we can defined the early start and finish.

The difference between the earliest start time and latest start time is defined as float.

Approaches 1- How long it will take to complete the sequenced work? 2- back pass Which is the latest date that an activity can commence without affecting the end date? critical path is concise of activity that should not be delayed

Forward Pass

Once a PM has got the plan of the project, the activities and the related duration, he needs to understand how long it will take to complete the sequenced work.

How can the PM do it? Forward Pass

The PM considers a process that includes subsequent activities.

Where an activity has two or more preceding activities it is the latest time which is transferred.

How should you start building your FP?

Start with the first activity > what time is the early start for the first activity? what is the early finish?( The DURATION of the activity!)

FP - Example

Activity	Duration (days)	Preceeding Activity
A	5	Start
B	15	A
C	5	A
D	8	A
E	2	D
F	8	B, C, E

design the FP

Early Start + Duration = Early Finish

FP – Results

We found that the quickest we can carry out the work (EARLY FINISH) is 28 days.

However, what we don’t know is which of the activities are critical and if we can potentially move (float) any of the activities.

To understand what kind of flexibility we have, we need to identify the latest dates that an activity can commence without affecting the end date.

Back Pass

The FP approach consider the first activity with the Early start and the Early finish.

What does the Back Pass approach consider?

The early finish of the last activity in the network is transferred to the late finish.

The duration is then subtracted from the late finish to obtain a late start.

Where an activity has two or more succeeding activities, it is the earliest date that is transferred.

This process is repeated throughout the network until all late start and finish dates have been identified.

design the BP

Late Finish – Duration = Late Start

Have a look on it again early start +duration = early finish …

Float - Example

We now have:

Early Start & Early Finish;

Late Start & Late Finish.

Considering (1) and (2), we can understand what kind of flexibility (FLOAT) we have in the network.

Why is this important?

Because we can make decision trying to maximise the utilisation of resources. what is float & example.

There is two type of float free float and total float free float mean the amount of time a task can be delayed without affecting the succeeding task how the free float calculate?

By subtracting the Early Finish of an activity from the Early Start of its subsequent activity.

Total Float – this is the amount of time which an activity can be delayed without affecting the end date of the project.

(Latest Finish – Earliest Finish = Float)

How do we plan activities considering time constraints & flexibility?

By critical path.

And what we need to do critical path?

1- early start of each activity

2- late start of each activity

3- float

Cost management:

What the Project Cost Management Process?

· Resource Planning: Determining what resources and quantities of each should be used.

· Cost Estimation. Developing an approximation of the costs of the resources

· Estimation Approaches.

· Budgeting. - allocating the over cost estimate to individual work items

· Earned Value Analysis

· Cost Control - Controlling changes to the project budget

The steps

1- Resource planning evaluation of which include physical , human , financial information required to complete the work using table .

Inputs:

Work Breakdown Structure

Historical Information

Scope Statement

Resource Pool Description

Organisational Policies

· Using tools of: Expert Judgement

· Alternatives Identification

Output:

Will be resource required.

Example:

Resources	Units	Time (Months)
Project Manager	1	12
Project staff	2	11
Administrator	1	12
Driver	1	10
Technical Advisor	1	8
Specialist	1	10

So, the first step is to identify and plan the resources.

The second step is to estimate the costs.

It is a predicted process to quantify cost underplays and the resources required by the scope of the project.

The cost is committing cabooses is generally applied during each phase of the project lifecycle.

Step 2: Estimate Costs

· Inputs

Work Breakdown Structure

Resource Requirements

Resource Rates

Activity Duration Estimates

Historical Information

Chart of Accounts

Tools & Techniques:

· Analogous Estimating

· Parametric Modeling

· Bottom-up Estimating

· Computerized Tools

Outputs:

Cost Estimates

Supporting Detail Cost

Management Plan

And the resource reads like salaries of people or the cost of each one of the material are going to use We need also the activity duration estimates because to cooperate, to see the extent of the cost of stuff we need, how long the are with us .

cost estimation, it is important to understand that it will be an iterative process. not going to be the same when we start the project

cost estimation:

· Estimation in a project context is the approximation of time and cost required to complete the scope of work to the defined quality requirements.

· All estimates are predictions of the future and so are fundamentally educated guesses.

· Project professionals work to make estimates as realistic as possible.

· It is also vital to document assumptions underpinning an estimate to ensure the basis of estimates are understood and as a vital input to risk analysis and contingency determination.

Why Estimating Time and Cost Are Important?

To support good decisions.

To schedule work.

To determine how long the project should take and its cost.

To determine whether the project is worth doing.

To develop cash flow needs.

To determine how well the project is progressing.

To develop time-phased budgets and establish the project baseline.

Factors Influencing the Quality of Estimates:

People

Planning Horizon: The longer you look at in the future, the less accurate would be your estimates. So, for a very long project, projects were very long life cycles You can see that the estimates would be much less accurate.

People: Also, the quality of estimates depend on the people who are making those estimates, use people who are familiar with the tasks.

Project Structure and Organization: how complex the project is for complex projects

external to the projects like changing in economic and economic environment to win prices of goods and services can change.

The Estimating Funnel: estimates improve as a projector progresses through its life cycle is often called as they're estimating the funnel.

Estimating is most difficult at the start of the project when there is lots of uncertainty

about what is to be done, when, by whom etc.

The idea that estimates improve as the project progresses through the life cycle is often called the estimating funnel.

Estimation Approaches:

Top-Down Estimating:

Parametric: Uses a statistical relationship between historic data and other variables to calculate an estimate.

Analogous: The comparison with similar historical projects to determine the likely estimate.

Bottom-Up Approaches:

Analytical (Activity Based): The addition of detailed estimates for labour and non-labour resources to complete the activities in scope.

Delphi: The generation of a cost through team consensus.

Top-Down Approach:

A top-down approach is frequently used for creating rough order of magnitude (ROM) estimates, otherwise known as ball-park estimates.

In a top-down approach to estimating, the estimator reviews the overall scope of a project to identify the major elements of work and characteristics (drivers) that could be estimated separately from other elements.

Typically, the estimator might consider a natural flow down through the work breakdown structure (WBS), or product breakdown structure (PBS).

The estimate scope may be considered as a whole, or broken down to different high levels of WBS as required.

Top-Down Approach:

Analogous (AKA Comparative) Estimating:

Analogous estimating uses information from previous similar projects as a basis for estimating the current project.

When estimating costs, the technique relies on the actual costs of previous similar projects as a basis for estimating the cost for the current project

Adjustments may need to be made when applying historical information to the current project to reflect (project size, type, location, inflation, etc.)

Analogous estimating is generally less costly, less time-consuming but less accurate.

It is more useful in the earlier phases of the project then later phases.

Parametric Estimating:

Parametric estimating uses a statistical relationship between historical data and other variables called parameters to calculate estimates.

These parameters might include such things as:

Square footage in building construction, or Lines of code in software development.

This technique can produce more accurate estimates than analogous estimating provided that the underlying data built into the statistical model being used is accurate and applies to the current project.

Bottom-Up Approach:

A bottom-up approach requires a good definition of the task to be estimated, and is frequently referred to as detailed estimating, grass-roots or as an engineering build-up.

Bottom-up estimating involves the estimation of work at the lowest possible level of detail (work packages/activities/tasks).

These estimates are then aggregated to arrive at summary totals.

The advantage this approach accrues from the progressive decomposition we do in a WBS because it is usually much easier to estimate the cost of work packages accurately, than to estimate larger work components accurately.

Bottom-Up Approach example:

We use the lower level of details.

Analytical Estimating:

· This is a method to estimate all individual work packages or activities with appropriate level of detail.

· The accuracy of the technique is improved when individual work packages or activities are defined in more detail.

· Resources (effort, material, equipment) are assigned to activities and using suitable rates, estimates can be calculated.

· These estimates are then rolled up to higher-level estimates.

Analytical Estimating:

· Projects use activities & activities use resources.

1. Assign costs to activities that use resources.

2. Identify cost drivers associated with this activity.

3. Compute a cost rate per cost driver unit or transaction.

4. Multiply the cost driver rate times the volume of cost driver units used by the project.

· These estimates are then rolled up the WBS/PBS to higher-level estimates; and eventually a total project cost.

Delphi Method:

· The Delphi technique is quite an old but efficient estimating method.

· It follows an interactive approach which relies on exchange of ideas.

· The team is composed of a group of experts in their respective domains, who answers the queries in two or more rounds.

· Every time a facilitator provides a summary of the collected ideas, which is revised by the experts if required.

· The process of opinion and revaluation goes on until a final consensus is reached.

Three Point Estimates:

· Due to the inherent uncertainty in any estimate value and the information used to compile it, recommended practice is to express the uncertainty through three-point estimates.

· Project professionals often use three-point estimates, to communicate the range of potential duration, cost or benefit and to make a judgement about any most-likely point in that range. These are:

· A minimum value (MN).

· A most likely value (ML).

· A maximum value (MX).

Three Point Estimates:

· The three-point estimates are superior to single-point estimates that hide the assumptions underpinning the estimate.

· A popular technique that employs three-point estimating is PERT (Program Evaluation and Review Technique), pioneered by the US Navy in the Polaris Submarine Missile Program.

· A weighted average or an expected value (E) is calculated as:

(MN + 4 ML + MX)/6

· This can be done to convert a 3P estimate to a single point estimate for use in a schedule or budget.

Range Estimating Template:

Multiple Estimation as a Source for Confidence used in complex project.

To increase the confident.

Top-Down Vs. Bottom-UP:

Step 3: Cost Budgeting:

Inputs:

· Cost Estimates

· Work Breakdown Structure

· Project Schedule

Tools & Techniques

· Cost Estimating tools and Techniques

Outputs:

· Cost Baseline

Example of a Budget Based on Bottom-Up Approach:

Example of a Time-Phased Budget:

Step 4: Cost Control:

· Inputs

Cost Baseline

Performance Reports

Change Requests

Cost Management Plan

· Tools &Techniques

Cost Change Control System

Performance Measurement

Additional Planning

Computerised Tools

· Outputs

· Revised Cost Estimates

· Budget Updates

· Corrective Action

· Estimate at Completion

· Lessons Learned

Earned Value Analysis: (control and monitor the cost)

Earned value analysis is the optimal way of tracking actual spend and actual work achieved using the same units.

Earned value analysis is superior to separate tracking of spend or work achieved as it provides opportunities to look at:

Efficiency of spend through the cost performance indicator (CPI); and

Productivity through the schedule performance indicator (SPI).

Insights Available Through Earned Value Analysis:

Earned Value Analysis:

· 4 types of variances;

· Cost (spending) variance (CV) – difference between budgeted cost of work performed (earned value) (BCWP) and actual cost of that work (ACWP).

· Schedule variance (SV) – difference between earned value (BCWP) and cost of work we scheduled to perform to date (BCWS)

· Time variance (TV) –difference between time scheduled for work performed (STWP) and actual time to perform it (ATWP)

Earned Value Analysis:

Variances:

CV = BCWP – ACWP (negative value - cost overrun)

SV = BCWP – BCWS (negative value - behind schedule)

TV = STWP – ATWP (negative value - delay)

Index (Ratios):

Cost Performance Index (CPI) = BCWP/ACWP

Schedule Performance Index (SPI) = BCWP/BCWS

Time Performance Index (TPI) = STWP/ATWP

Earned Value Analysis – Example

· Assume that operations on a Work Package cost RM 1,500 to complete. They were originally scheduled to finish today. At this point, we actually spent RM1,350. We estimate that we have completed two thirds (2/3) of the work.

· What are the cost and schedule variances?

Earned Value Analysis – Solution =

CV = BCWP – ACWP = 1500 (2/3) – 1350 = - 350

SV = BCWP – BCWS = 1500 (2/3) – 1500 = - 500

CPI = BCWP/ACWP = 1500(2/3)/1350 = 0.74

SPI = BCWP/BCWS = 1500(2/3)/1500 = 0.67

Spending higher than budget, and given what we have spent, we are not as far along as we should be (have not completed as much work as we should have)

Six Possible Arrangements:

Possible to have one of indicators to be favourable while the other unfavourable.

Might be ahead of schedule and behind costs

There Six possibilities as shown.

Solution:

Progress Monitoring and Reporting:

Primary progress and performance tracking is best done by PM and team.

In many organisations with established project controls, monitoring of progress in terms of time, cost and risk is performed in a project management office (PMO).

Typically presented quantitively and use ‘traffic-light’ approaches to flag areas that are in control or out of control to varying degrees.

Progress Monitoring and Reporting:

Summary we looked at project cost management. we divided into field forty steps, resource planning, then cost estimating and will cost estimated. @ cost estimating we looked at approaches. Top down approach. Put them up. Approach methods including estimating by analogy Which is basically you compared with a previous similar project or a metric estimating where parametric estimate on the statistical relationship based on mini bus to project And after that, we looked at budgeting cost to budgeting and more importantly how to develop what time phase to budget and do into the discussion by looking at cost to control. And any final analysis and how it is useful during the execution phase of projects.

Sustainability

Lecture plan:

Definitions

Sustainability and Project Management

Tools for Sustainable Project Management

Certifications

Sustainable development

‘development that meets the needs of the present without compromising the ability of future generations to meet their own needs’

“Our common future “ - Brundtland Commission Report, 1987

Sustainability and equity

Sustainable development

Equity within a generation?

Equity between generations

Equity between generations

http://mytutorial.srtcube.com/sustainable-development/environment-science/826-482#7725

Weak vs Strong Sustainability

Sustainability and Project Management

http://mytutorial.srtcube.com/sustainable-development/environment-science/826-482#7725

What is sustainable project management?

What is sustainable project management?

Sustainable Project Management is the planning, monitoring and controlling of project delivery and support processes, with consideration of the environmental, economical and social aspects of the life-cycle of the project’s resources, processes, deliverables and effects, aimed at realising benefits for stakeholders, and performed in a transparent, fair and ethical way that includes proactive stakeholder participation.

Sustainability and Project management

Top 8 core key PM values and sustainability

Some project management aspects related to sustainability

Aspect	Example
Human Rights	discrimination of vulnerable groups, civil rights, and fundamental rights and principles at work
Labor Practices	conditions of work, health and safety, and development and training
The Environment	sustainable resource use, pollution prevention, and climate change mitigation
Fair Operating Practices	anti-corruption, fair competition, and respect for property rights
Consumer Issues	fair contractual practices, dispute resolution, and fair marketing
Community Involvement and Engagement	employee training and skills development, wealth and income creation, and community involvement

Tools for sustainable project management

Life cycle assessment - LCA?

‘the collection and assessment of the inputs and outputs of any potential environmental impacts caused by the product system throughout its life cycle’

United Nations’ Sustainable development goals

United Nations’ Sustainable development goals

Standards

Certifications

BREEAM (Building Research Establishment Environmental Assessment Method)

Conclusion

Ethics

The principles that guide a person or society, created to decide what is good or bad, right or wrong, in a given situation

Law

The law may be understood as the systematic set of universally accepted rules and regulation created by an appropriate authority

Personal values

Where might our personal values come from?

· Personal belief

· Personal experience

· Continuing (professional) development - Reading? Philosophy?

Engineering Council’s principles

1. Honesty and integrity

2. Respect for life, law, the environment and public good

3. Accuracy and rigour

4. Leadership and communication

1. Honesty and integrity

act in a reliable and trustworthy manner

· be alert to the ways in which their work and behaviour might affect others and respect the privacy, rights and reputations of other parties and individuals

· respect confidentiality

· declare conflicts of interest

· avoid deception and take steps to prevent or report corrupt practices or professional misconduct

· reject bribery and improper influence

2. Respect for life, law, the environment and public good

· act in a reliable and trustworthy manner

· be alert to the ways in which their work and behaviour might affect others and respect the privacy, rights and reputations of other parties and individuals

· respect confidentiality

· declare conflicts of interest

· avoid deception and take steps to prevent or report corrupt practices or professional misconduct

· reject bribery and improper influence

· 3. Accuracy and rigour

· always act with care

· perform services only in areas in which they are currently competent or under competent supervision

· keep their knowledge and skills up to date

· assist the development of engineering knowledge and skills in others

· present and review theory, evidence and interpretation honestly, accurately, objectively and without bias, while respecting reasoned alternative views

· identify, evaluate, quantify, mitigate and manage risks not knowingly mislead or allow others to be misle

· 4. Leadership and communication

· be aware of the issues that engineering and technology raise for society, and listen to the aspirations and concerns of others

· promote equality, diversity and inclusion

· promote public awareness and understanding of the impact and benefits of engineering achievements

· be objective and truthful in any statement made in their professional capacity

· challenge statements or policies that cause them professional concern

Institution code of conduct

Company policy

From ethics to sustainability (or vice-versa)

Aspect	Example
Human Rights	discrimination of vulnerable groups, civil rights, and fundamental rights and principles at work
Labor Practices	conditions of work, health and safety, and development and training
The Environment	sustainable resource use, pollution prevention, and climate change mitigation
Fair Operating Practices	anti-corruption, fair competition, and respect for property rights
Consumer Issues	fair contractual practices, dispute resolution, and fair marketing
Community Involvement and Engagement	employee training and skills development, wealth and income creation, and community involvement

TIME

COST

QUALITY