lec 01 project management
TRANSCRIPT
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LECTURE 01
PLANNING ENGINEERING AND
PROJECT MANAGEMENT
COL
Humayun Sattar
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TOPICS COVERED
WHAT IS A PROJECT?
PROJECT MANAGEMENT
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WHAT IS A PROJECT?
A TEMPORARY ENDEAVOR UNDERTAKEN
TO CREATE A UNIQUE PRODUCT OR
SERVICE.
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4Under W
ater Hotel
Tube TrainUnder Ground Hotel
Multi Storey Flyover System in Singapur 12 Km Long Bridge in Sea in China
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PROJECT
A PROJECT CAN BE CONSIDERED TO BE ANY SERIESOF ACTIVITIES AND TASKS THAT :
HAVE A SPECIFIC OBJECTIVE TO BE COMPLETED
WITHIN CERTAIN SPECIFICATIONS (SCOPE)
HAVE DEFINED START AND END DATES (SCHEDULE)
HAVE FUNDING LIMITS (BUDGET)
CONSUME RESOURCES (EQUIPMENT, MATERIAL etc)
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Project and Operations
Shared Characteristics Performed by people Constrained by limited resources
Planned, executed, and controlled.
Projects Temporary and Unique
Attain objective and then terminate
Operations
Ongoing and repetitive Sustain the business
Adopt a new set of objectives and the workcontinues.
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PROJECT OBJECTIVE
AN OBJECTIVE IS DEFINED AS THE TARGET.
IT SPECIFIES THE CRITICAL RESULTS THAT MUSTBE ACHIEVED UPON COMPLETION OF A PROJECT.
PROJECT SCOPE
THE WORK THAT MUST BE DONE IN ORDER TO
DELIVER A PRODUCT/SERVICE WITH THESPECIFIED FEATURES AND FUNCTIONS.
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PROJECT SCHEDULE SHOWS THE TIME FRAME OF
START AND COMPLETION DATES OF ACTIVITIESCONSTITUTING THE PROJECT.
PROJECT COST
AN ESTIMATE OF THE PROJECT COST ENABLESTHE ORGANIZATION TO EVALUATE THE
FEASIBILITY OF THE PROJECT AND TO MANAGETHE CAPITAL REQUIREMENTS OF THE PROJECT.
PROJECT SCHEDULE
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THE TERM RESOURCE IS USED FOR THOSE ITEMS THAT ONECAN RENT, HIRE OR BUY IN ORDER TO MEET THE GOALS ANDOBJECTIVES OF A PROJECT.
RESOURCES AVAILABLE TO THE PROJECT MANAGER ARE:
PERSONNEL EQUIPMENT MATERIALS INFORMATION / TECHNOLOGY FACILITIES MONEY etc
ALL TYPES OF RESOURCES SHOULD BE ESTIMATED AND
THE AVAILABILITY OF THE REQUIRED RESOURCES FORPROJECT COMPLETION MUST BE WORKED OUT.
RESOURCE REQUIREMENTS
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PROJECTS ARE EVERYWHERE, THEY ARE AN INTEGRALPART OF MODERN LIFE. LIKE
INDUSTRIAL
CONSTRUCTION
EDUCATIONAL
GOVERNMENTAL
DEFENCE
ENVIROMENTAL
SOFTWARE DEVELOPMENT
SECTORSHAVE DIFFERENT TYPES OF PROJECTS.
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Cost and Time Overrun in ConstructionProjects
A cost overrun is defined as difference incost between the final cost of the project andthe contract award amount
Time overrun is difference of planned andactual time of completion. 9 out of 10 projects have cost/time overrun.
Overruns of 50 to 100 percent are common.
An industry study by the Standish Group (2004)found that average cost overrun was 43 percent,
71 percent of projects were over budget, overtime. Data collected from 20 countries of 5continents for the projects of last 70 years.
Standish Group (2004) and Bramble, Barry B. and Callahan, Michael T. (1987)Construction Delay Claims, Wiley Law Publications, 2nd Edition, U.S.A
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Examples of Cost and Time Overrun in SomeFamous Construction Projects
The Big Dig or Central Artery/Tunnel Project USA
A 5.6 km tunnel, The Big Digwas the most expensivehighway project in the U.S.Initial cost -$2.8 billion in
1985.Final cost - $14.6 billionin 2007.Cost overrun - $11.8 billionDelay12 years.Reasons Land acquisition
Removal/relaying ofexisting/ new services.
Design and scopeproblems.
Finances problem
Source:The Big Dig Central Artery/Tunnel Project (CA/T) Interstate Tunnel90 USA http://en.wikipedia.org/wiki/File:Tunnel-large.jpg
Th S d O H
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The Sydney Opera HouseThe Sydney Opera Houseis a multi-venue
performing arts centre inSydney Australia
Initial cost in 1957 was $7million.
Final cost in 1973, was
$102 million.
Cost overrun-$95 million
Delay10 years
Reasons
Design and scopeproblems
Finances problemSource: The Sydney Opera House Australiahttp://upload.wikimedia.org/wikipedia/commons/3/38/Sydney_opera_
house_side_view.jpgand Jones, Peter: Ove Arup: Masterbuilder of theTwentieth Century. Yale University Press 2006
http://upload.wikimedia.org/wikipedia/commons/3/38/Sydney_opera_house_side_view.jpghttp://upload.wikimedia.org/wikipedia/commons/3/38/Sydney_opera_house_side_view.jpghttp://upload.wikimedia.org/wikipedia/commons/3/38/Sydney_opera_house_side_view.jpghttp://upload.wikimedia.org/wikipedia/commons/3/38/Sydney_opera_house_side_view.jpg -
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The Channel TunnelThe Channel Tunnel is a50.5-kilometre (31.4 mi)under sea rail tunnel linkingUnited Kingdom with Francebeneath the English channelat the strait of Dover.Initial cost in 1975 was2600 million
Final cost in 1994 was4650 millionCost overrun- 2050 MillionDelay- 18 yearsReasons
Inconsistent governmentpolicies (UK & France) Inconsistent cash flow Geological/design problems
Source:The Channel Tunnel Britan-Francehttp://upload.wikimedia.org/wikipedia/commons/4/4f/Course_Channeltun
nel_en.svgWilson pp. 1421 and Gilbert, Jane (2006-12-01). "`Chunnel'workers link France and Britain". The Daily Post (New Zealand)(APN New
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TheScottish Parliament Building
The Scottish ParliamentBuilding is the home of theScottish parliament atHolyrood.Initial cost in 1999 was 40million.
Final cost in 2004, was 414million.Cost overrun- 374 million
Delay3 yearsReasons
Corruption
Inconsistent Cash flow Design problems Inconsistent policies Land acquisition
Source:Isobel White; Iqwinder Sidhu. "House of Commons Research
Paper - Building the Scottish Parliament, The Holyrood Project"and TheScottish Parliament Buildin Scotland htt : u load.wikimedia.or
http://www.parliament.uk/commons/lib/research/notes/snpc-03357.pdfhttp://www.parliament.uk/commons/lib/research/notes/snpc-03357.pdfhttp://www.parliament.uk/commons/lib/research/notes/snpc-03357.pdfhttp://www.parliament.uk/commons/lib/research/notes/snpc-03357.pdfhttp://www.parliament.uk/commons/lib/research/notes/snpc-03357.pdfhttp://www.parliament.uk/commons/lib/research/notes/snpc-03357.pdfhttp://www.parliament.uk/commons/lib/research/notes/snpc-03357.pdf -
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The Hallands TunnelThe Hallands Tunnel also
known as the HallandsRidge Tunnel or Scanlink, isa 8.5km railway tunnel underconstruction in Sweden.Initial cost in 1992 was SEK1 billion .
Final cost in 2015, will bemore than SEK 10 billion .Cost overrun- SEK 9 billion
Delay20 yearsReasons Goelogical design
problems Wrong constructional
material usage Contractor and
consultant incompetencySource: The Hallands Tunnel
http://upload.wikimedia.org/wikipedia/commons/4/4a/Hallandsastunneln01 2006-07-08. .
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Eastern Span Replacement Of The SanFrancisco Oakland Bay Bridge
Work on the eastern span
replacement of the SanFrancisco Oakland BayBridge due to damage inearthquake.Initial cost in 1997 was$1100 million .
Final cost in 2005, was$6200 million.Cost overrun- $4100 million
Delay6 yearsReasons Design Problems
Wrong estimation
Cash flow problems Material prices hike
Source:Steve Rubenstein and Jim Herron Zamora (2004-12-16). "Oakland
takes dim view of bid to rename Bay Bridge". San Francisco Chronicle. Andhttp://upload.wikimedia.org/wikipedia/commons/c/c3/EasternSFO_OAKBrF
http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2004/12/16/MNG80ACOTV1.DTLhttp://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2004/12/16/MNG80ACOTV1.DTLhttp://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2004/12/16/MNG80ACOTV1.DTLhttp://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2004/12/16/MNG80ACOTV1.DTL -
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Ghazi Barotha Hydropower Project Pakistan
It is a run of river project forelectricity generation with a52 km long power channelnear Attock Pakistan.Initial cost in 1998 was Rs90000 million .Final cost in 2004, wasRs128000 million.
Cost overrun- Rs38000millionDelay6 yearsReasons Inconsistent cash flow Consultant & contractors
incompetency Non availability of
machinery Land acquisition Corruption
Source: The Ghazi Barotha Hydropower project Power channel and PowerHouse
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Discussion/
Q & A
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