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Dr f Dejahang (BSc CEng, BSc (Hons) Construction Mgmt, MSc, MCIOB, PhD)
027PROJECT
MANAGEMENT &BUSINESS PLANNING PROCESS
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PROJECT MANAGEMENT BUSINESS PLANNING PROCESS
Building and civil engineering projects carry uncertainty and risk.
Organisations under take RISK when they need to achieve their business objectives more effectively.
Expand ONLY when the potential benefits out weight the risk involved.
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PROJECT MANAGEMENT BUSINESS PLANNING PROCESS
All projects should therefore arise from a need to fulfil two main factors such as:
1. Specific Strategic Objectives
2. Achieve competitive advantages
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PROJECT MANAGEMENT BUSINESS PLANNING PROCESS
The business planning process has
four essential steps:
Remember ‘MOST’
Mission Statement States the reason for the
organisations existence; Initiates the business planning
process;
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PROJECT MANAGEMENT BUSINESS PLANNING PROCESS
Objectives are: The position; In quantities terms; In qualitative terms; that the organisation wishes to
reach; Must be in a stated period of time.
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PROJECT MANAGEMENT BUSINESS PLANNING PROCESS
Strategies to consider: Design to achieve the objectives such as: A set of budgets Clear goals Achievable targets Statement for needs.
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PROJECT MANAGEMENT BUSINESS PLANNING PROCESS
Covering all aspects of the business
such as: People Premises Organisations Capital Cash.
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PROJECT MANAGEMENT BUSINESS PLANNING PROCESS
Tactical plansIndividual plans to achieve items such as: Defined goal Operations and Projects
The plan describes how the organisation will
achieve each element of the strategic plan.
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Tactical plans
1• Defined goal
2• Operations and Projects
3
• Achieve each element of the strategic plan
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PROJECT MANAGEMENT BUSINESS PLANNING PROCESS
DEFINE THEBUSINESSMISSION
SET LONG TERMOBJECTIVES 5-10YEARS TO ACHIEVETHE MISSION
DEVELOP STRATEGIESTO ACHIEVE THEOBJECTIVES-INTERMIDIATE GOALS,BUDGETS,STRATEGIC PLANS
SHORT TERMGOALS, INDIVIDUALPLANS FORPROJECTS/OPERATIONS
MMMISSION LLLLLLL
OOBJECTIVES
SSTRATEGIES
STACTICS
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PROJECT MANAGEMENT BUSINESS PLANNING PROCESS
Another way to look at Business plan Remember ‘COST’ C Commitment by all concerned to the
project O Objectives being clear to all-Scope and
Mission S Strategy to meet the objectives-Milestone
Plan T Tactical-activities found necessary to
achieve to each milestone and solve Problems
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Project conception process
POLITICAL LEGAL INSTITUTIONAL
SOCIOLOGICAL TECHNOLOGICAL ECONOMIC
INFORMATION, ENERGY,MATERIAL
MOTIVATION START
POINT
INFORMATION, ENERGY,MATERIAL
Disposal of assets
Adaptation to external influence
Exam
ples
of
init
ial F
easi
ble
Dec
isio
ns
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Project inception process
POLITICAL LEGAL INSTITUTIONAL
SOCIOLOGICAL TECHNOLOGICAL ECONOMIC
INFORMATION, ENERGY, MATERIAL
INFORMATION, ENERGY, MATERIAL
Construct a new building
Exam
ple
s of
init
ial F
easi
ble
Dec
isio
ns
Goal Time
SatisfactionofObjectiveRequired TheAcquisitionofRealProperty
A contribution to the client's objective through the acquisition of real property
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P7Project inception process
POLITICAL LEGAL INSTITUTIONAL
SOCIOLOGICAL TECHNOLOGICAL ECONOMIC
INFORMATION, ENERGY, MATERIAL
INFORMATION, ENERGY, MATERIAL
Final Finish Point
Fini
sh s
pect
rum
Goal Time
The realisation of a new building
The project realisation process
ConstructA NewBuilding
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FUNCTION OF PROJECT MANAGEMENT
FUNCTION OF PROJECT MANAGEMENT
The basic Management Principles described by Henri Fayol are:
To plan To organise To co-ordinate To control To lead
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FUNCTION OF PROJECT MANAGEMENT
FUNCTION OF PROJECT
MANAGEMENT
To leadTo controlTo co-ordinate
To organiseTo plan
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FUNCTION OF PROJECT MANAGEMENT
The function of Project Management
in more detail are: To establish the clients objectives and
priorities issues such as: brief formulation; client organisation; approval powers.
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FUNCTION OF PROJECT MANAGEMENT
Design Project Organisation
Such as: organisation chart; decision point; Relationships; feed back.
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FUNCTION OF PROJECT MANAGEMENT
Integrate Client into the project client organisation integrated into
project organisation; people responsibilities; decision processes.
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FUNCTION OF PROJECT MANAGEMENT
Selection and appointment of
Contributors identify contributors; identify input required; identify when input required and duration; record types of appointment.
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FUNCTION OF PROJECT MANAGEMENT
Full brief formulation process Establish need, budget, cost plan,
cost limit, procurement route. Start value engineering. Programme formulation. The overall project programme.
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FUNCTION OF PROJECT MANAGEMENT
The phase or stage programme
The design programme. The procurement programme. The construction programme. The commissioning programme.
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FUNCTION OF PROJECT MANAGEMENT
Activation of the relationships between contributors
Ensure contributors are brought in and integrated into the project organisation.
Ensure contributors can perform as required.
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FUNCTION OF PROJECT MANAGEMENT
Establish appropriate information and communication structure by:
establishing a full project procedures manual containing;
description of formal communication cannel;
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FUNCTION OF PROJECT MANAGEMENT
change requests and instructions; drawings framework; co-ordination project information
system; Address index of all contributors.
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FUNCTION OF PROJECT MANAGEMENT
Convening and chairing meetings of
contributors at all stages such as:
Judging the need and frequency; Who needs to attend; Agenda setting; Minutes and action.
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FUNCTION OF PROJECT MANAGEMENT
Monitoring and controlling Pro-active role; Obtaining feedback and under taking
analysis; Testing outcomes to objectives and
taking corrective action; Forecasting; Integrating and controlling
contributors.
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FUNCTION OF PROJECT MANAGEMENT
Managing completion Commissioning programme; Training of user; As built drawings-user maintenance
manuals; Strategy for occupation or disposal.Evaluation of outcomes Success in achieving objectives; The final feedback loop;
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FUNCTION OF PROJECT MANAGEMENT
SYSTEMATIC APPROACH TO ANY
PROJECT Royal Institute of British Architects
(RIBA PLAN OF WORK)
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TACTICAL PLANS
M is s io n 5y e a rs
o b j e c tiv e s
S tra te g ie s
T a c tica lp la n s
T a c tica lle v e l( a c t iv itie s )
S tra te g ic le v e l( m ile s to n e s )
I n te g ra tiv ele v e l
( p u rp o s e a n do b j e c tiv e s
R E L A T I O N S H I P B E T W E E N C O R P O R A T E P L A N A N D P R O J E C T P L A N
P ro j e c t M is s io n , S co p e , O rg a n iz a tio n
M ile s to n e sE v e n t o r ie n ta te d
A ctiv ity o r ien ta te d
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RIBA PLAN OF WORK
Appraisal
1 Carry out studies to determine the feasibility of the Client's requirement.
2 2A Review with client alternative design and construction approaches and the cost Implications.
3 2B Provide information for report on cost implications.
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RIBA PLAN OF WORK
B Strategic Brief
1 Receive strategic brief prepared by the client.
C Outline Proposals
1 Commence development of Strategic Brief into Project Brief
2 Prepare Outline Proposal
3A Provide an approximation of construction costs. OR
3B Provide information for cost planning.
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RIBA PLAN OF WORK
4 Obtain Client approval to Outline Proposals and approximate construction cost.
5 Co-operate with Planning Supervisor where applicable.
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RIBA PLAN OF WORK
D Detailed Proposals
1 Complete developments of Project Brief.
2 Develop the Detailed Proposal from
approved Outline Proposals.
3A Prepare a cost estimate. OR
3B Provide information for preparation of
cost estimate.
4 Consult statutory authorities.
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RIBA PLAN OF WORK
5 Obtain Client approval to the Detailed Proposal showing spatial arrangements, material and appearance, and a cost estimate.
6 Prepare and submit application for full planning permission.
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RIBA PLAN OF WORK
E Final Proposals 1 Design Final Proposals from approved
Detailed Proposals. 2A Revise cost estimate. 2B Provide information for revision of cost
estimate. 3 Consult statutory authorities on
developed design proposals.
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RIBA PLAN OF WORK
4 Obtain Client approval to type of construction, quality of materials, standard of workmanship and revised cost estimate.
5 Advise on consequences of any subsequent changes on cost and programme.
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RIBA PLAN OF WORK
F Production Information
1 Prepare production information for tender purposes.
2A Prepare schedules of rates and/or quantities and/or schedules of works for tendering purposes and revise cost estimate. OR
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RIBA PLAN OF WORK
2B Provide information for preparation of tender pricing documents and revision of cost estimate.
3A Prepare and make submissions under building acts and/or regulations for other statutory requirements. OR
3B Prepare and give building notice under building acts and/or regulations (not applicable in Scotland).
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RIBA PLAN OF WORK
4 Prepare further production information for construction purposes.
G Tender documents 1 Prepare and collate tender documents in
sufficient detail to enable a tender or tenders to be obtained.
2 Where applicable pass final information to Planning Supervisor for pre-tender Health and Safety Plan.
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RIBA PLAN OF WORK
3A Prepare pre-tender costs. OR 3B Provide information for preparation of
pre-tender cost estimate
H Tender Action
1 Contribute to appraisal and report on
tenders negotiations.
2 If instructed revise production information to meet adjustments in the tender sum.
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RIBA PLAN OF WORK
J Mobilisation
1 Provide production information as requested for the building contract and for construction.
K Construction to Practical Completion
1 Make visits to the works in connection with the Architect's design.
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RIBA PLAN OF WORK
2 Provide further information reasonable required for construction.
3 Review design information from contractors or specialists.
4 Provide drawings showing the building and main lines of drainage and other I information for the Health and Safety File.
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RIBA PLAN OF WORK
5 Give general advice on operation and maintenance of the building.
L After Practical Completion.
1 Identify defects and make final inspections.
2A Settle Final Account. OR
2B Provide information required by others for settling final account.