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• Contact info:
• Email: [email protected]
• http://www.naserchowdhury.com
• Mobile: +8801722246999
• Available normally:
> 8.30 pm (sms)
Course Overview
• Text Book available at
Sumon Library
169 New Market Dhaka 1205
Phone : 8614561
1. Project Management - Rajeev M. Gupta
2. PMBOK (pdf)
3. Principles of Construction Safety (pdf)
4. Project Management - R.B. Khanna
• Format:
Combination of lectures and in-class exercises
Grading
• Assignments & Quizzes
– Random assignment to individual/Group
– Demonstrate engagement with the course materials
– Watch video and Assessment
• Mid-term
– Short Notes; short Questions, Problem Solving
• Final exam
– Descriptive, Critical Thinking,
• Class Attendance
- Participations
Expectations
What I Expect from You
?
1
2
3
Today’s reality...
Construction Management is a
discipline and management
system specifically created to
promote the successful
execution of capital projects for
owners
• Workforce
• Material
• Subcontractors
• Information
• Equipment
• Time
• Construction plant
• Money
Construction is an unique industry
because:
• Not performed in controlled conditions, therefore
highly impacted by weather and other
environmental conditions
• Seasonality
• Each project is unique
• Remotes sites with various access problems
• Process is not as predictable
• Difficulty in applying automation
• High potential for encountering unforeseen
conditions
• Costs can vary according to conditions
Construction is an unique industry
because:
• Difficult to manage and supply utilities and other
resources.
• Technical innovations are adopted slower.
• Success is dependent upon the quality of its people.
• Very custom-oriented
• Product can be of mind-boggling size, cost, and
complexity
Problem Facing in Construction
Industry:
• Highly traditional and fragmented; slow to
embrace new technology
• Restrictive/outdated building codes
• Labor agreements and craft jurisdictional
issues
• Liability and legal considerations
• Lack of profit motive or other incentive
Problem Facing in Construction
Industry:
• Government regulations
• Environmental constraints
• NIMBY syndrome
• Global competition
Project Management
Optimize the three attributes of: quality, cost, and
time
Safety
Time Cost
Quality
4 Functions of Management
Planning
Process of identifying and selecting
appropriate organizational goals and courses of
action
Steps in Planning…
• Activities:
– Footings 80 $/sq ft
– Columns 1,550 $/unit
• Scheduled quantities:
– Footings 100 sq ft
– Columns 9 units
Fixed-Price Incentive
OWNER’S RISK
Cost-Plus Incentive
Cost-Sharing
0%
RISK Allocation Cost-Plus Percentage 100 %
Contract Documents
• Copies of subcontracts
• Shop drawings and support calculations
• Catalog cuts
• Material or equipment samples
• Schedule(s)
• Certified payrolls
• Certificates of insurance
• Environmental test reports
• Material test reports & certifications
CEE 4801 Project Planning and Management
Abu Naser Chowdhury PhD
Video Time!
Project and its Characteristics
activities
• Established to achieve specific objective
• Need leadership
Important Aspects of a Project:
• Starting Date
• Specific Goals and Conditions
• Defined responsibilities
• A Budget
• A Planning
• A fixed end date
• Parties involvement
Are these Projects?
• Building a wall
• Implementing a new system
• Mowing the lawn
• Planning a wedding
• Planning a fund raising
• Planning a student graduation
Project and Operation Mngt
Project Mngt Operation Mngt
Non-repetitive Repetitive
Multi-skilled or very highly Limited skills, a huge learning
specialized workforce effect
Scope, performance, time Profit generated, cost reduced
and cost quality of product/services
Subcontracting is essential Generally avoided
Very high risk as generally Generally avoided, use of
no chance of recursion improvement always here
Fixed, ceases with Continuous in nature
assignment Maintenance of existing things
Creation of new thing
Goal Vs Dream
Goal Vs Objective
Objectives of Project Management
C = f (P, T, S)
Time
Expectations
Cost Scope
Within Budget
Performan
ce
1. Concept Phase
2. Planning Phase
3. Implementation Phase
4. Termination Phase
CDEF
Overall 85% effort and 40% time of the overall project is consumed
during the implementation phase, whereas planning phase consume 9%
efforts and 30% of time.
Project Life Cycle and its phases…cont.
Influence of Change Vs Cost of Change
Banquet WBS
Work Breakdown Structure (WBS)
Automobile WBS
Level 1
Level 2
Level 3
Level 4
Level 5
Work Packages
Video Time!
WBS is more than…
Once the WBS has been drawn, a bottom-up cost estimate can
be produced starting at the lowest branch of the family tree. In
this method, each work package is costed and arranged in such
a way that the total cost of the packages on any branch must
add up to the cost of the package of the parent package on the
branch above
WBS Work Package – Level of Detail
Project Planning:
1. Setting goals.
2. Defining the project.
3. Tying needs into timed project activities.
4. Organizing the team.
Project Scheduling:
1. Tying resources to specific activities.
2. Relating activities to each other.
3. Updating and revising on regular basis.
Before Project
Project Controlling:
During Project 1. Monitoring resources, costs, quality and
budgets.
2. Revising and changing plans.
3. Shifting resources to meet demands.
Project Planning…
Gantt Chart
• Event
• Signals the beginning or ending of an activity
• Designates a point in time
• Represented by a circle (node)
• Network
• Shows the sequential relationships among activities using
nodes and arrows
⬥ Activity-on-node (AON)
nodes represent activities, and arrows show
precedence relationships
⬥ Activity-on-arrow (AOA)
arrows represent activities and nodes are events for
points in time
Situations in Network Diagram
B
A
A must finish before either B or C
C can start
A
C
Both A and B must finish before C
B can start
A
C Both A and b must finish before
B either of C or D can start
D
A
B
A must finish before B can start
Dummy both A and C must finish before D can
C start
D
Situations in Network Diagram
Activity-on-Node (AON):
• Uses nodes to represent the activity
• Uses arrows to represent precedence relationships
Interpreting Network into Bar Chart
From project networks, we determine
IMMEDIATE
ACTIVITY DESCRIPTION
PREDECESSORS
A Build internal components —
B Modify roof and floor —
C Construct collection stack A
D Pour concrete and install frame B
E Build high-temperature burner C
F Install control system C
G Install air pollution device D, E
H Inspect and test F, G
ANC
Example of PERT/CPM
A C F
Build Internal Construct Collection Install Control
Components Stack System
E H
Finis
Start Inspect
Build Burner h
and Test
B D G
Modify Roof Pour Concrete and Install Pollution
and Floor Install Frame Device
Time Activity
Probability of 1 in 100
of b Occurring
Activity Time
Most Most Most
Optimistic Likely Pessimistic
Time Time Time
(a) (m) (b)
Time Activity
A C F
2 2 3
E H
Start 4 2 Finish
B D G
3 4 5
How to find Critical Path?
1. Earliest start time (ES): the earliest time an activity can begin
without violation of immediate predecessor requirements
2. Earliest finish time (EF): the earliest time at which an activity can
end
3. Latest start time (LS): the latest time an activity can begin without
delaying the entire project
4. Latest finish time (LF): the latest time an activity can end without
delaying the entire project
How to find Critical Path?
• In the nodes, the activity time and the early and late start
and finish times are represented in the following manner
ACTIVITY
t
ES EF
LS LF
• Earliest times are computed as
Earliest finish time =
Earliest start time
+ Expected activity time
EF = ES + t
Earliest start = Largest of the earliest finish times of
immediate predecessors
ES = Largest EF of immediate predecessors
How to find Critical Path?
A t =2
ES = 0 EF = 0 + 2 =
2
Start
B t =3
ES = 0 EF = 0 + 3 =
3
How to find Critical Path?
A C F
2 2 3
0 2 4
2 4 7
E H
Start 4 2 Finish
4 13
8 15
B D G
3 4 5
0 3 8
3 7 13
• Latest times are computed as
A C F
2 2 3
0 2 4
2 4 7
0 2 10
2 4 E 13 H
Start 4 2 Finish
4 13
8 15
4 13
B D 8 G 15
3 4 5
0 3 8
3 7 13
1 4 8
4 8 13
How to find Critical Path?
B 0 3 1 4 1 No
C 2 4 2 4 0 Yes
D 3 7 4 8 1 No
E 4 8 4 8 0 Yes
F 4 7 10 13 6 No
G 8 13 8 13 0 Yes
H 13 15 13 15 0 Yes
CPM
A C F
2 2 3
0 2 4
2 4 7
0 2 10
2 4 E 13 H
Start 4 2 Finish
4 13
8 15
4 13
B D 8 G 15
3 4 5
0 3 8
3 7 13
1 4 8
Probability of Project Completion
variances of activities on
Project variance = ∑ the critical path
Probability of Project
Completion
ACTIVITY VARIANCE
A 4/36
B 4/36
C 4/36
D 16/36
E 36/36
F 64/36
G 64/36
H 4/36
15 16
Time
Weeks Weeks
Summary of CMP and PERT
CPM PERT
It defines Critical Path Method It denotes Programme Evaluation
and Review Technique
It was first developed by DuPont It was first developed by NASA
for its Chemical Plant Project for its ballistic missiles project
It uses deterministic time approach It uses probabilistic time approach
Some limitations
❖Not feasible for large and complex project
❖Cannot able to allocate resources
❖If any activity duration is determined wrong, then critical
path of the project will be wrong
❖If there are many other similar duration paths available in
the project, at that time it very difficult to identify the
critical path of the project
Some Definition
Backward Pass
Slack! Free Float and Total Float
Free Float: The amount of time that a schedule activity can
be delayed without delaying the early start date of any
immediately following schedule activities
Free Float = ESs – EFp - Lag
Total Float: The total amount of time that a schedule
activity may be delayed from its early start without delaying
the project finish date, or violating a schedule constraint.
It is the amount of time a task can be delayed without delaying the
project end date. Total Float = LS – ES or LF - EF
Slack or Float provide flexibility in the project schedule. When
leveraged properly, project managers can shift activities and
resources to meet the project objectives and priorities. It is the
amount of time an activity can be delayed without impacting other
activities or the project end date and changes over the course of the
project implementation
Free Float and Total Float…cont.
Free Float Example
Free Float and Total Float
A B E
2 1 4
0 2 2 3
0 3 7
2 9 10
10 C 14 D
6 6
2 8
8 14
2 8
8 F 14
2
2
4
12 14 G
H
2 3
0 14
2 17
12 14 14
17
Summary of Float
C = Cost
P = Performance
C = f (P, T, S)
T = Time
S = Scope
PERT – a cost accounting system
Assumptions:
Once started a work package is performed continuously until it
is finished
The cost associated with a work package are spread evenly
throughout its duration
Cost Overrun =
[Actual Expenditures to Date] - [Value of Work to Date]
Corrective Actions:
If a project is found to be
Behind the schedule and or
Experiencing cost overruns
PERT – a cost accounting system
problem activities.
Q = P/E
Where Q = Quality
P = Performance
E = Expectation
Variations in performance
Quality is defined as “A degree to which a set of inherent
characteristics fulfills the requirements”
The Fundamentals…
Quality
Quality is the ability of your product to be able to
satisfy your users
Quality Assurance
Quality Assurance is the process that
demonstrates your product is able to satisfy your
users
Aim of Quality Assurance
When good Quality Assurance is implemented
there should be improvement in usability and
performance and lessening rates of defects
Quality Assurance Plan
Quality:
The totality of features and
characteristics (attributes) of a product
or service that bear on its ability to
satisfy a given need
Inspection:
The process of measuring,
examining, testing, gauging or
otherwise comparing one more
characteristics of a product/service
with specified requirements
Quality Control and Assurance
Quality Control:
The actions which provide a mean
to control and measure the
characteristics of an item, process or
facility to established requirements
Quality Assurance:
All those plans and systemic actions
necessary to provide adequate
confidence that an item or facility
will perform satisfactory in service
Quality Control and Assurance
Quality Assurance
This is the prevention of defects
before they happen
Quality Control
This is the detection of defects after
the event
The Fundamentals…
Quality Control (QC) is part of quality
management focused on fulfilling quality
requirements ISO 9000:2000 (3.4.10)
QC is examining “control” materials of known
substances along with samples to monitor the
accuracy and precision of the complete
examination (analytic) process.
Aspects of Quality: Product Features
It is an improvement methodology
Developed by Walter Shewhard in 1939
Known as Shewhard Cycle. In Japan it is known as
Deming Cycle because Dr. Deming introduced it first in
1950.
It is quite straight forward, but not intuitive.
• 1970 • 2000
• 56 million workers • 105 million workers
• 3.5 million worksites • 6.9 million worksites
• 14,000 + deaths • 5,915 deaths
• 2.5 million workers • Workplace deaths have
disabled by accidents & been more than cut in
injuries half
• 10 times as many • Occupational injury and
person-days lost from illness rates have
job related disabilities declined by 40%
as from strikes
• 300,000 new
occupational disease
cases
OSHA
• Chemical
• Physical
• Biological
• Ergonomic
Chemical Hazards
• Death
• Fatal injury (broken leg, hips, amputation)
• Non-fatal injury (finger cut)
• Occupational accidents (MSD, hearing loss)
• Absence from work ( >1 day, > 3 days etc)
• Near misses
• Rate per 100 000 – number of injuries or causes of ill health
per 100 000 employees.
• Working days lost – days off work due to workplace injuries
& work-related ill health
Other health hazards
• Legal requirements
• Eye protection
• Respiratory protection
• Ear protection
• Face protection
• Head protection
• Hand protection
• Foot protection
• Body protection
• Fall protection
Personal Protective Equipment (PPE) on
Site
Most construction sites require at least:
• Hard hat
• Safety Boots
• Hi-viz jacket
• Safety Glasses
Accident?
Mishap or Near Miss
Injury?
Accident that Hurts Someone
• Proactive measures
– H & s safety policy
– H & s safety programme/plan
– H & s safety induction/training
– Tool-box talk
– Others
Construction Safety in BD!
Construction Safety in BD!
Construction Safety in BD!
Construction Safety in BD!
Construction Safety in BD!
CEE 4801 Project Planning and Management
Abu Naser Chowdhury PhD
Procurement
• Delayed tenders & late tenders are not accepted. But if, in case
of delayed tenders, if the rate quoted is very less, then it can be
accepted.
Sample
Points to remember while purchasing
/Procurement
• Proper specification
• Invite quotations from reputed firms
• Comparison of offers based on basic price, freight & insurance, taxes and
levies
Invent Transport
ory ation
Cost
of the
Custo Servic
mer e
Service
Material Management
OR
Primary
•Right price
•High turnover
•Low procurement Secondary
•& storage cost •Forecasting
•Continuity of supply •Inter-departmental harmony
•Consistency in quality •Product improvement
•Good supplier relations •Standardization
•Development of personnel •Make or buy decision
•Good information system •New materials & products
•Favorable reciprocal
relationships
Material Management
6 types of inventory
Inventory Control System
Engineering Economy:
It deals with the concepts and techniques of analysis
useful in evaluating the worth of systems, products, and
services in relation to their costs
Basic Concepts
• Cash flow
• Interest Rate and Time value of money
• Equivalence technique
Cash Flow
• Engineering projects generally have economic consequences
that occur over an extended period of time
• For example, if an expensive piece of machinery is
installed in a plant were brought on credit, the simple
process of paying for it may take several years
• The resulting favorable consequences may last as long as
the equipment performs its useful function
• Each project is described as cash receipts or disbursements
(expenses) at different points in time
Categories of Cash Flows
operation
$
amortization
Defender
Challenger
❖Is the project behind schedule though actual costs are lower than the planned
cost?
Mr. John: “This project is going well because it is in its 14th month and
has spent $4.5 million.”
• Some traditional measures of project “progress” are based
on only the actual resources consumed
– Time spent
– Money spent (Actual Cost)
Progress can be measured at any time of the project
Scheduled Monitored
(Plan) (Progress)
Time dS dM Time Delay
Scheduled Monitored
(Plan) (Progress)
Time dS dM Time Delay
Scheduled Monitored
(Plan) (Progress)
Time 18 months 20 months Time Delay
Costs $1.1 million $1.24 million Cost Overrun
Measurement of Project Progress
Program Progress
(schedule) (actual)
Progress Program
(actual) (schedule)
• ACWP
Actual Cost of Work Performed ($): the costs actually incurred in
accomplishing the work performed within the control time
• BCWP
Budgeted Cost of Work Performed ($): the monetary value of the
work actually performed within the control time (= Earned
Value)
Measurement of Project Progress
A clearer picture
Computation: CI = BCWPt/ACWPt
= Earned value/Actual Value
TIME VARIANCE
BCWS
ACWPt
BUDGET VARIANCE
BCWSt COST VARIANCE
SCHEDULE VARIANCE
BCWPt
ACWP
BCWP
t-p t t Time
Using Graphs to Track Progress and
Forecast Trends...Example
Bar Graph for a small project
S-Curve
S-Curve
60
Cumulative Cost
($ in thousands)
Cumulative
20 Budgeted Cost
Cumulative
Actual Cost
5 10 15 20 25 30 35 40 45 50
Elapsed Time (in weeks)
Example: Earned Value Analysis
Example: Integrating CI and SI
Reasons Often Cited for Cost and Schedule
Deviations
Figure:
Case 1: Behind Schedule & over spent
Case 2: Ahead Schedule & Spent Correctly
Case 3: Behind Schedule & Spent Correctly
Case 4: Ahead Schedule & Under Spent
Earned Value Analysis (EVA) and
Earned Value Management (EVM)
Earned Value Analysis (EVA) and
Earned Value Management (EVM)
Earned Value Analysis (EVA) and
Earned Value Management (EVM)
Earned Value Analysis (EVA) and
Earned Value Management (EVM)
RG Matrix
Cost Variance
A Project was planned to have total cost $200 lacs. Today, it is July
18th and work estimated till today was worth $100 lacs. The total
time estimated for the project was 250 days. The work which has
been completed today was budgeted for 90 lacs although 96 lacs
have been spent on the works.
Determine the cost and schedule variance and new estimated the
cost and time of complete project.
Acronym Term Interpretation
PV Planned Value What is the estimated value of the work planned to be done?
(BCWS = Budgeted Cost of Work Scheduled)
AC Actual Cost What is the actual cost incurred for the work accomplished?
(ACWP = Actual Cost of Work Performed)
BAC Budget at How much did we BUDGET for the TOTAL project effort?
Completion
ETC Estimate to From this point on, how much MORE do we expect it to cost
Completion to finish the project?
Estimate at Completion There are many ways to As of now, how much do we expect the total
(EAC) Calculate EAC, depending on project to cost? $____. See formulas at the
the assumptions made. left
3.) AC + (BAC – EV) - Actual to date plus remaining budget. Used when
current variances are thought to be a typical of
the future. AC plus the remaining value of work
to perform
Variance at BAC – EAC How much over or under budget will we be at the
Completion (VAC) end of the project
Original Plan
Today
PV BAC
Current
AC ETC EAC
Earned Value - Graphics
e Budget At
e d Valu
Schedule Variance
Plann Completion
e
alu
Cost Variance
Cumulative Value
dV
rne
Ea
o st
l C
a
tu
Ac
75 m
100 m
60 m
50 m
12 month
EAC – Which one should use?