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Trainings by Vidya Bhagwat
Chetan ThakrePMP, BE, MBA, PGDPC
Real Estate Project Management
Facilities Management Construction Management
Residential Commercial Retail Hospitality Industrial
Effective Project Management
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Program Content
Module 1 Fundamentals Of Real Estate Project Management
Chapters1.1 Introduction To Real Estate Project Management
1.2 Project Management Process Groups & Knowledge Areas
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Program ContentModule 2 Essential Knowledge Areas For Real Estate Project Management
Chapters
2.1 Integration Management : One View For Project Success
2.2 Scope Management : Delivering Promise2.3 Time Management : Managing Delays 2.4 Cost Management : Managing Money 2.5 Quality Management : Gateway For Customer Satisfaction2.6 HR Management : Managing People On Project2.7 Communication Management : Right Information At Right Time 2.8 Risk Management : Proactive Issue Management2.9 Procurement Management : Effective Supplier Management2.10 Stakeholder Management : Managing People Influencing Project
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Trainings by Vidya Bhagwat
Chapter 1.1 Introduction To Real Estate Project Management
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This chapter gives you basic concepts in project management. Understanding basic project management concepts is very important for real estate professionals as: Project management is the backbone of any real estate company. Hence you
are directly or indirectly responsible for project success in your organization. Project is series of several inter-dependent tasks. You might be responsible for
certain task(s) but your actions have wider implications on the project. You must clearly understand this many to many relationship.
Project management processes are different from construction management (technical processes). As a good real estate professional, you must have knowledge both areas.
This course material is based on PMI’s ® (Project Management International) best practice framework. This globally renowned and widely successful project management methodology. It will give you clear understanding all dimensions of real estate project management.
Objective of This Chapter
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Project management practices in Indian Real Estate and Infrastructure sector are not well developed . Hence the project delivery performance is also low.
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Land AcquisitionManaging Government Agencies
Cost Escalations
Labour Supply Issues
Improper Risk Management
Poor CommunicationGaps In Project Integration
Quality Issues
Some Of The Key Challenges In Indian Real Estate Sector Which Need To Be Taken Into Account
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Forecasted Demand Of Project Management Professionals In Indian Construction Sector
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Key Drivers For Professional Approach For Real Estate Project Management
Growing customer expectations
Industry competition and external pressure
Shift from unorganized to organized industry
Entry of foreign players
Inner Drive To Grow
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Why You Must Know About Project Management Project management is the backbone of any real estate
company. Hence you are directly or indirectly responsible for project success in your organization.
Project is series of several inter-dependent tasks. You might be responsible for certain task(s) but your actions have wider implications on the project. You must clearly understand this many to many relationship.
Project management processes are different from construction management (technical processes). As a good real estate professional, you must have knowledge both areas.
This course material is based on PMI’s ® (Project Management International) best practice framework. This globally renowned and widely successful project management methodology. It will give you clear understanding all dimensions of real estate project management.
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How This Study Material Is Going To Help YouThis program trains you for leadership in managing real estate and construction projects. You will have far superior project management knowledge than those who have not completed this course. Some of the key benefits : Effective project phasing to have better management control Developing work plan and managing resources (time, budget,
information and project staff) controlling quality Effective risk management (Risk identification and action plans
to mitigate risks) Effective allocation of responsibilities and monitoring work Effective site organization and administration Effective people management and managing team dynamics
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Trainings by Vidya Bhagwat
Chapter 1.2
Introduction To Real Estate Project Management
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Trainings by Vidya Bhagwat
What Is Project ?
Project is a temporary endeavour undertaken to create a unique product or service.
• Example : construction of building, construction of fencing ,
installation of facilities management .
• But maintenance work for the building or facilities
management is not project but called operations
management
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Trainings by Vidya Bhagwat
The temporary nature indicate that a project has definite
beginning and end. Hence meeting dead lines is extremely
important for project success
The end is reached when the project objectives are
achieved or when the project is terminated
Temporary dose not necessarily mean that the project is
short. Duration of project depends on scope and complexity
Temporary dose not refer to product , service or result
created by project.
The project creates unique product, service or result which
may be tangible or intangible. Hence understanding
requirements for each project are important
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Trainings by Vidya Bhagwat
Project
Projects To attain its objectives and terminate Start and end date
Operations To sustain the business Ongoing
ExampleConstruction of new building
Example Selling apartments in the building
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Strategic Management
Project Management Operational Management
Acquire tools for creation & augmentation of organization value. Bestow tools to worthy
persons to generate profit
Create Desired Value For The Organization Use created value to generate profit & revenue
Three Main Functions In An Organization
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Real Estate Project Management is the application of knowledge, skills, tools and techniques to execute projects effectively and efficiently to meet both process and product requirements.
Example of project management activities– Identifying structural requirements– Meeting promised quality standards– Managing relation with owners– Managing compelling project constraints
What Is Real Estate Project Management
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Civil Engineer plays pivotal role in designing , structural decision making and construction. Some of the key responsibilities of civil engineer are mentioned below but not limited to :
Understanding the site topography and positioning the building on the site
Planning the routing and the site drainage, access roads and utility connections
Understanding the local geology and soil conditions, including the location of the water table
Selecting and designing a foundation system and the rock or soil layer on which the building will be founded
Role Of Civil Engineer In Real Estate Project
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Selecting a structural system that is compatible with the building architecture and designing it to be capable of resisting all the occupancy and environmental loads (snow, earthquake, wind, etc.). This includes the selection and the design of a floor system and may also include the design of the building envelope, or the separation between the interior and the exterior environments of a building. The structural system must also be compatible with the other engineered systems in the building (e.g. HVAC, building envelope)
Once the design is finalized and approved, the next step is to define the specifications of all the materials used in the building, prepare a quantity take-off, and prepare an estimate of the construction cost
The plans and other technical documents serve as the basis for conducting the bidding process and the selection of a contractor and possibly, specialty subcontractors.
Role Of Civil Engineer In Real Estate Project
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Civil engineers are also involved in the planning, scheduling and inspection of construction, including testing and interpretation of tests. They may also be involved in the site layout and the selection of construction methods. Construction safety is also one of their concerns
The architectural design, design of engineering systems and possibly landscaping is the role of other professionals, such as architects, mechanical engineers, fire protection engineers, electrical engineers, lighting specialists, acoustics specialists, etc.
Civil Engineer Plays Very Critical Role In Real Estate Project Management
Role Of Civil Engineer In Real Estate Project
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Knowledge : refers to what project manager knows about project management and real estate product management
Performance : refers to what project manager is able to do or accomplish while applying project management knowledge
Personal : refers to how project manager behaves when performing the project related activities includes attitudes, core personality characteristics etc
Interpersonal skills : refers to project manager’s ability to communicate and manage other stake holders
Project Management Skills
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Does Project Size Matter
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Project Management Small companies managing one or few independent projects at a time. Example – Construction of single building
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Program Management is the process of managing several related projects, often with the intention of improving an organization's performance
The action related to these interdependencies may include• Resolving resource constraints• Aligning organizational / strategic direction• Resolving issues and change management
Program Management
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Program Management
Example - Multiple Projects In A Township"Live the dream“ – DSK Dream City
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Portfolio refers to projects, programs , sub portfolios and operations managed as a group to achieve strategic objectives.
The projects and programs or projects of a portfolio may not necessarily interdependent or directly related.
Focuses on ensuring that projects and programs are reviewed to prioritize resource allocation and that the management of portfolio is consistent with and aligned to organizational strategies
.
Portfolio Management
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Portfolio Management Example - Company Projects Under Various Categories i.e. Residential, Commercial, Industrial , FM etc “Highest quality standards for project execution, materials and services, collaborates only with the best-in-class associate” - Godrej Properties
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The project management office is a management structure that standardizes the project related governance processes and facilitate sharing of resources , methodologies, tools and techniques.
The primary function may include but not limited to
• Managing all shared resources
• Identify and developing project management methodology, best practices and standards
• Coaching, mentoring, training
• Coordinate communication across projects
• Role : supportive or controlling or directive
Project Management Office
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The difference in the role of project managers and PMO includes following
The project manager focuses on specified project objectives while PMO manages major program scope changes
The project manager controls the assigned resources for the project, while the PMO optimizes the use of shared resources
The project manager manages constraints of individual project, while the PMO manages interdependencies among projects at the enterprise level
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Portfolios, Programs And Projects
PMO
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Project Governance is an oversight function that is aligned with organization’s governance model and that encompasses the project life cycle. It provides framework to project manager and team with structure, processes, decision making model and tools for managing the project.
Example : Company which deliver very high end premium projects will need to make sure that all activities starting from contacting customer, quality of construction up to delivery of the property to customer must follow same high class standards
Importance Of Project Governance
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Project governance framework includes Success and deliverable acceptance criteria Process to identify , escalate & resolve the issues Relationship among project team & stakeholders Project organization chart that with project roles Processes &procedures for communication Project decision making processes Guidelines for aligning project governance and organizational
strategy Project life cycle approach
Project Governance
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Organizational Influences On Project Management
As projects are done by a group in the organization and for the organization, naturally organization influences projects. Ability of project team to deliver project successfully is influence by four factors
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Organizational Influences On Project Management
Organizational Cultures And Style
Organizational structures
Enterprise Environmental Factors (EEFs)
Organizational process assets (OPAs)
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Organizational Cultures And Styles Shared visions, mission, values & beliefs Regulations, policies, methods, and procedures; Motivation and reward systems Risk tolerance View of leadership, hierarchy & authority Code of conduct, work ethic, and work hours; and Operating environments.
• Organizational Communications
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PM Authority Resource Availability
Project Budget Managed By
PM Role PM Admin Staff
Little Or None Functional Mgr Part Time
Organizational Structure : Functional
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PM Authority Resource Availability
Project Budget Managed By
PM Role PM Admin Staff
Little Or None Functional Mgr Part Time
Organizational Structure : Weak Matrix
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PM Authority Resource Availability
Project Budget Managed By
PM Role PM Admin Staff
Low To Moderate Mixed Full Time Part Time
Organizational Structure : Balanced Matrix
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PM Authority Resource Availability
Project Budget Managed By
PM Role PM Admin Staff
Moderate To High Project Mgr Full Time
Organizational Structure : Strong Matrix
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PM Authority Resource Availability
Project Budget Managed By
PM Role PM Admin Staff
High To Almost Total Project Mgr Full Time
Organizational Structure : Projectised
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Organizational Influences On Project Management
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EEF refers to condition not under the control of project team, that influence, constrain or direct the project. EEF are considered as inputs in most of the planning processes.
• Internal or External
• positive or negative influence on the outcome
Enterprise Environmental Factors (EEFs)
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These include The culture, structure, and processes All industry and/or government standards Company or organization infrastructure Human resource guidelines and policy. Authorization systems, policies, and guidelines. Market and overall economic conditions. Risk tolerance of stakeholders. Political climate. The communications channels Project management information systems
Enterprise Environmental Factors
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Organizational process assets (OPA)are the plans , processes, policies, procedures and knowledge bases used by performing organization.
Processes And Procedures
Corporate Knowledge Base
Organizational Process Assets
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OPAs are often updated for future projects and also in the current projects. Whereas it is very difficult to change EEF during the course of your project.
Hence you use OPAs to improve the management of your project. You manage project within the constraint and guidelines established by the EEFs
Organizational Process Assets
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Project life cycle is the series of phases that the project passes through from its initiation to its closure.
Each project may be divided into many phases to improve management control.
Collectively, the project phases are known as the project life cycle.
Usually they are sequential. These are unique to the industries Each phase is marked by completion of one or more
deliverables. Phase-end reviews are called phase exits, stage gates, or kill points.
Project Life Cycle And Project Phases
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Each project may be divided into many phases to improve management control.
These are unique to the industries
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Phase To Phase Relationships : Sequential
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Phase To Phase Relationships : Overlapping
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The ability to influence the final characteristics of the project’s product without significantly impacting cost is highest at the start and decreases as the project progresses
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Predictive Life Cycle (Fully Plan Driven) : In this case project scope, time and cost required to deliver the scope are determined as early in the project life cycle as practically possible.
Project Life Cycle And Types Of Project Life Cycle
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• Iterative And Incremental Life Cycle : Iterative life cycles are one in which project phases (also called iterations) intentionally repeat one or more project activities as the project team’s understanding of the product increases.
Project Life Cycle And Project PhasesTypes Of Project Life Cycle
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• Adaptive Life Cycle ( Change Driven Or Agile Methods) : Intended to respond to high level of change and ongoing stakeholder involvement. Adaptive method is also iterative an incremental but differs in that the iterations are vary rapid (usually within duration of 2 to 4 weeks) and are fixed in time and cost. Adaptive projects generally perform small incremental improvements that will deliver value to stakeholders
Project Life Cycle And Project PhasesTypes Of Project Life Cycle
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