Project management in construction.

Prepared By,

Navneet Kumar Jha

BITS ID : 2014HT74039

PROJECT MANAGEMENT IN CONSTRUCTION

IMPROVING PROJECT PERFORMANCE

INTRODUCTION

• Objective for the presentation is to analyse the various factors in the

project management in construction which lead to success and

failure of the projects.

• Learning from projects by understanding the essential elements of

the project management (e.g. the Leadership Role of the Project

Manager, Project Planning, Risk Management) , Analysis of project

management done in various projects worldwide

what is project management ??

• Project management is the application of knowledge , skills ,

tools and techniques to project activities in order to meet or

exceed stakeholders needs and expectations from a project.

• Need of balancing competing demands among scope , time ,

cost , quality , stakeholders with different needs and

expectations and identified (needs) and unidentified

requirements (expectations).

ATTRIBUTES TO PROJECT MANAGEMENT

• Project Managers.

• Determining Project Objectives.

• Managing Budget and Resources.

• Reporting Progress.

• Evaluating efficiency and effectiveness.

RESPONSIBILITIES OF PROJECT MANAGER

• Planning thoroughly through all the aspects of the project.

• Controlling the manpower of the organization.

• Optimise the technical versus cost trade offs in specific areas

where optimisation is required.

• Monitor performance , costs and efficiency of all elements of the

project.

• Completing the project on schedule and within costs .

COMPETENCIES OF A PROJECT MANAGER

Planning / organizing .

Controlling.

Stress Tolerance.

End customer orientation.

Personal Chemistry.

Analytical skills.

Leadership Quality / Managing people.

Managing performance.

Sensitivity.

WHY DO PROJECTS GO WRONG ??

• Project goals are not clearly defined.

• Constraints on the completion of the project arising from the

different objectives of

Short time scale.

Resource Availability.

Quality factors

Human factors.

CONSTRAINTS OF PROJECT MANAGEMENT

• Cost

• Scope

• Quality

• Customer satisfaction.

• Time.

• Risk

• Resources.

PROJECT MANAGEMENT PROCESS

• Project Initiation.

• Project planning.

• Project scheduling and execution.

• Monitoring and control.

• Close Out of the project.

SUCCESSFUL PROJECTS CASE STUDIES

• AL WAHDA MASTER DEVELOPMENT , ABU DHABI.

Vibrant bussiness and shopping destination.

EC Harris International Ltd. Was involved in every element from master planning of development to the concept development and upto realization stage.

• Objectives of EC Harris international Limited.

Project Management gateway approach. (Design verification checks ,value engineering , Risk Management).

Categorise roles , responsibilities , communication protocols.

RESOURCES

• Truly International Project Team.

• Dynamic Team who were happy to multi task in their daily roles.

• Proper Risk Management team.

• Proper co-ordination among the team.

CHALLENGES

• Due to economic slowdown in 2008 , steel and cement prices

rocketed and whose availability was un predictable. Proper early

planning let the supply lines continue.

AQUEDUCTS AND LARGE DIAMETER TRUNK MAINS

CLEAN & MAINTAIN PROGRAMME, UNITED UTILITIES

• OBJECTIVES :

Plan , design , develop and implement a major programme of

inspection , maintenance and repairs on two main aqueducts.

Clean and refurbish six large diameter trunk mains reducing

levels of iron and Manganese.

• RESOURCES :

Huge exercise in logistics , resource health and safety planning.

Project centric team members.

Governance board was established to review the project status

and risks.

KEY CHALLENGES

• Water supply interruption to the customers to be avoided.

• Fresh approach for the company to project prioritisation,

resource planning , risk management, integration and

scheduling.

• nature, scale and uncertainty of unforeseen events, such as

extremes of weather, major bursts, and third party damage, and

issues that required reactive maintenance put pressure on the

overall annual budget and caused project priorities to be

frequently re-assessed.

SUCCESS ACHIEVED :

• £8 million efficiency savings.

• Improved customer service standards.

• Better water quality.

• Reduced health and safety risk to employees and third parties by upgraded

access.

• Improved structural integrity of the aqueducts.

• Improved regional network response to incidents such as bursts, with faster

diversions, and altered flow rates to minimise water loss .

• Maintain customer supplies without major discolouration.

• Delivered with no lost time accidents and no significant impact on customer

levels of service.

BUILDING BETTER COMMUNITIES: MANAGING

RECONSTRUCTION AFTER THE INDIAN OCEAN TSUNAMI

• A global business providing management and consultancy services to the

property, transportation and infrastructure, environment and energy and

management and industrial sectors, was called in by the Canadian Red

Cross (CRC) to re-house more than 11,000 people made homeless by the

tsunami in Aceh, Indonesia.

• The company oversaw the reconstruction of 21 villages – 17 of which had to

be relocated – and the design and rebuilding of nearly 4,000 flood and

earthquake-resistant homes.

CHALLENGES:

• According to WSP the pressure to build, in the numbers covered

by the project, in a variety of remote locations with many

unknowns, coupled with a need to complete urgently, was ‘a

challenge of a lifetime’.

• When the company arrived in Aceh in mid- 2006, it found all

contracts behind schedule, confused objectives and programmes .

• No project management unit, poor availability of materials, difficult

access because of flooding, damaged roads and bridges.

• Disaffected communities who refused to take part in planning

because previous promises had been broken.

PROJECT SUCCESSES:

• Relationships were forged with local communities using patience,

listening skills, response to their preferences, and good

communication including a poster that depicted the road to

reconstruction.

• Nearly 4,000 houses were built and handed over to beneficiaries

across 21 villages in 2009 and positive feedback was received.

• The government was appreciative and applauded CRC for

delivering strong, robust durable houses amongst the highest

quality standards in the relief effort.

• WSP continued to maintain a presence for a year to ensure that,

at least for some time after the houses had been handed over,

professional and management capacity was available to iron out

issues.

• Build understanding and capacity about quality and safety from

future hazards.

DAWLISH SEA WALL EMERGENCY WORKS

CHALLENGES

• Nature’s unpredictability.

• Managing the interface between six main contractors on a scheme

with unclear scope and immense pressure to deliver as soon as

possible.

• To establish relationships with local people who had been

evacuated and with Teignbridge District Council as well as

managing the involvement of the Marine Management Organisation

and Crown Estates to ensure necessary licenses were in place.

• The importance of the work to the public and businesses was

never under‐estimated.

• Commit to a date in the first days as the scope was not only

unclear but increasing all the time, yet people needed to know

so they could make plans.

• Issues with those living alongside the line not only being

disturbed by the work but also impacted by the physical damage

to their homes, land and property.

• Need to manage their expectations of what the project team

could deliver.

SUCCESS ACHIEVED

• The rail link to South and West Devon and Cornwall re‐ opened on

time to an extremely ambitious programme, allowing Dawlish and

beyond to be reconnected to their railway and the rest of the UK.

• The team received good feedback from local councils and the public,

including letters and cards of thanks from local residents. For the

project team, the immediate success of achieving the goal has also

led to long term networking and relationships, leading to opportunities

for collaboration on future projects.

• Prime Minister David Cameron, praised the ‘orange army’ of engineers

as they have become known, for their “herculean effort” in completing

the repairs.

DELIVERY OF THE ROTARY WING STRATEGY 2009-2015,

UK MINISTRY OF DEFENCE

• CHALLENGES

• New Wildcat and Chinook Mk6 helicopters were to be purchased while existing Puma, Apache, Chinook and Merlin helicopters required upgrading and modernising.

• Investment was needed to ensure training aids such as flight simulators reflected the upgraded fleet while maximising training effect and efficiencies.

• Revised support arrangements for each of the core future helicopters had to be implemented and full ownership of all Merlins was to be transferred to the Royal Navy.

RESOURCES

• Dedicated project teams were established to deliver defined

elements and ensure that the transition to deliver the

strategy was coherent with ‘business as usual’.

• A strong project management culture was established

within each team through a monthly review drumbeat and

forward-looking metrics aimed at avoiding future pitfalls.

RESULTS

• Through the programme approach, five potent new helicopter

capabilities have been delivered to the UK’s armed forces within

the approved time and cost, while making substantial savings in

supporting military equipment.

• The £1 billion funding gap has been closed and £440 million has

been saved from the forecast cost of supporting the fleet for the

next five years without impacting upon military effectiveness.

GREEN PARK STATION STEP-FREE ACCESS PROJECT,

TRANSPORT FOR LONDON

CHALLENGES

• Despite the complexity, and a number of difficult issues to

manage particularly early in the project, the project managers

used multi-disciplinary design reviews, risk workshops and

programme workshops to maintain the direction of the project

and improve the quality of decision making.

• Because of its duration, and the limited works that could be

progressed until they were complete, the tunnelling works were

on the critical path.

RESULTS

• The changes made by the project allowed Green Park Station to perform as promised during the London 2012 Olympics and contribute to making sure the Games were as accessible as possible.

• The project was completed three months ahead of schedule and substantially under budget, without using any of the risk or contingency initially allowed.

• All this has been achieved while maintaining the highest standards of safety through continuous improvement. As of June 2012, the project had undertaken more than 400,000 man-hours with zero lost-time injuries.

THE CONSTRUCTION PROGRAMME FOR THE LONDON 2012

OLYMPIC AND PARALYMPIC GAMES, OLYMPIC DELIVERY

AUTHORITY

CHALLENGES

• Huge levels of public interest in London 2012 .

• ODA (Olympic Development Authority ) recognised the project

could only be delivered in partnership and with the support of a

large coalition of organisations, many of whom had differing

interests.

• Ensure complete alignment between internal and external

objectives.

SUCCESS

• The ODA has successfully achieved its objectives, both for the

delivery of the physical infrastructure of the Olympic Park, and

also for significant achievements in its priority themes, such as

health and safety and sustainability.

POWERLINES UNDERGROUNDING PROJECT,

LONDON 2012

KEY OBJECTIVES OF THE PROJECT

• Deliver a quality project. , remove, mitigate and manage risk; ensure the safety and well being of all personnel and workers engaged on or affected by the project; demonstrate value for money; keep London and customer supplies ‘switched on’.

SUCCESS

• Teamwork and trust were absolutely key. All parties worked as one, focusing on the challenges in hand and buy-in to the common goal rather than on protecting contractual positions. The fact that individual success would only happen if everyone was successful was understood and drove positive behaviours (there were no contractual incentives to link these parties). Organisation and governance were recognised as key aspects to the successful delivery of the project.

TRANSFORMING DUBLIN AIRPORT PROGRAMME,

TURNER & TOWNSEND

• CHALLENGES

• There was the sheer scale of the job of transforming Dublin Airport.

• Need to ensure that the airport stayed in full operation while work progressed – and that

key matters such as safety and passenger wellbeing are not compromised.

• Success

• Turner & Townsend successfully met the needs of the client by implementing a

programme management approach.

• Resulted in the transformation of Dublin Airport into a 21st Century Gateway to Ireland on

time and within budget.

• Stakeholder feedback on the finished product has been extremely encouraging .

WORLD’S MAJOR PROJECT FAILURE EXAMPLES

• BRITISH PETROLEUM

• Explosion cause the oil spill which was one of the worst ever oil disaster in the

history of the modern world.

• Reasons for Project Failure

• Extreme geographic location

• Weak risk management

• Lack of timely decisions

• Sluggish response in critical situation

• Undermining the situation

• Lack of planning

CASE STUDY: THE MILLENNIUM DOME

• Millennium Dome is a Dome shaped mega structure, built in the Greenwich

peninsula in south east London which was later closed because it failed to attract

the number of visitors which was expected to visit the place.

Reasons for failure

• Lack of vision.

• Poor execution.

• Lack of sufficient operational expertise.

• Poor marketing strategies.

• Financially mismanaged project.

• Lack of contingency plan.

RECOMMENDATIONS AFTER CASE STUDY:

• Management structure to be properly structured.

• Project costs

• projects should only proceed if they are clear with full life cycle

assessment cost of the project.

• Risk Analysis.

• Risk analysis of the project is necessary so that a project

manager should understand the cost which could arise in the later stages of

the project and prepare a plan for it.

• Project Income.

The project manager should keep in mind the

uncertainties related to this type of income. This can only be done

with the help of careful and practical assumptions.

• Contingency planning should be there.

• Proper financial management should be done prior to moving

with the project further.

CONCLUSISON

• Project failure is preventable with good project planning. When a project

starts to fail there are techniques to recognize and trained Project managers

minimize the extend of project failure or recover the failed projects as early

as possible.

• Project manager needs to be trained in such techniques so that he/she not

only recover the failed projects but also reduce the chances of failure.

COLUMBIA SHUTTLE

• Columbia Shuttle Disintegrates after re-entry into the earths

atmosphere.

Lessons learnt with respect to the columbia shuttle launch

project management

• “recency effect.”

It occurs when decision makers rely on only the most recent

information.

• Conservatism

A situation in which new information is ignored or given too little weight.

• overconfidence.

During the flight, engineers, concerned that the foam strike may have

caused a problem, asked the Mission Management Team (MMT) to request

satellite imagery of the spacecraft. Management, however, was apparently

confident that there was no safety issue.

• selective perception

In which management of the shuttle program had shifted from an

engineering focus to a managerial focus.

HURRICANE KATRINA

• On August 29, 2005 hurricane Katrina raced across the Gulf of Mexico and made

landfall in New Orleans, Louisiana. When it was over, a category 5 storm had

breached the levees, flooded eighty percent of the city, killed 1,500 people, and left

over 80 billion in damages. It was the costliest natural disaster in US history.

• What followed was a project failure of enormous proportions. It failed in

planning, it failed in execution and it failed in meeting even the most basic

needs of those caught in the middle of this tragic disaster.

• Four project management failures stand out.

• Communication

• Selective Perception

• Leadership

• Difficult Relationships

LESSONS LEARNT

• We need to be careful in generalizing the project failure lessons that can be learned

from a once-in-a-hundred-year tragedy, but the magnitude of the failure was so great

that it becomes a caricature of what can go wrong in more conventional projects.

• The more constituents involved, the greater will be the communication challenge.

Unless managed effectively, far too much time can be devoted to resolving

jurisdictional conflicts and not enough time on the real issues. Too many constituents

can sabotage a project.

• Be careful of selective perception. When it goes unchecked it can be effective in

miminizing interruptions, but the consequnces of locking out new data can be

disastrous.

• Either clear leadership lines must be established, or a collaborative environment .

similar to what can emerge in high performance teams must be created and

managed.

• • Difficult relationships must be addressed. Once they surface they are unlikely to go

away.

KEY REASONS OF PROJECT FAILURE

• Lack of senior management.

• Unclear project objectives.

• Scope creep.

• Gaps in communication.

• Lack of visibility of all projects.

CONCLUSION FROM DATA COLLECTION AND DATA

ANALYSIS

• PROJECT DELAYS IN CONSTRUCTION ARE DUE TO

1. Less number of labours against requirement.

2. Skill of labour is very poor or less.

3. Lack of project planning and scheduling by contractor.

4. Delay due to receiving permissions from government authorities.

5. Delay due to transporting material from supplier to site.

6. Complete absence of good site management and supervision by contractor.

7. Lacking of quality and quantity of work.