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Dr f Dejahang (BSc CEng, BSc (Hons) Construction Mgmt, MSc, MCIOB, PhD) 027 PROJECT MANAGEMENT & BUSINESS PLANNING PROCESS.

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Presentation on theme: "Dr f Dejahang (BSc CEng, BSc (Hons) Construction Mgmt, MSc, MCIOB, PhD) 027 PROJECT MANAGEMENT & BUSINESS PLANNING PROCESS."— Presentation transcript:

1 Dr f Dejahang (BSc CEng, BSc (Hons) Construction Mgmt, MSc, MCIOB, PhD) 027 PROJECT MANAGEMENT & BUSINESS PLANNING PROCESS

2 PROJECT MANAGEMENT BUSINESS PLANNING PROCESS Building and civil engineering projects carry uncertainty and risk. Building and civil engineering projects carry uncertainty and risk. Organisations under take RISK when they need to achieve their business objectives more effectively. 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. Expand ONLY when the potential benefits out weight the risk involved.

3 PROJECT MANAGEMENT BUSINESS PLANNING PROCESS All projects should therefore arise from a need to fulfil two main factors such as: All projects should therefore arise from a need to fulfil two main factors such as: 1. Specific Strategic Objectives 2. Achieve competitive advantages

4 PROJECT MANAGEMENT BUSINESS PLANNING PROCESS The business planning process has four essential steps: Remember MOST Mission Statement States the reason for the organisations existence; States the reason for the organisations existence; Initiates the business planning process; Initiates the business planning process;

5 PROJECT MANAGEMENT BUSINESS PLANNING PROCESS Objectives are: The position; The position; In quantities terms; In quantities terms; In qualitative terms; In qualitative terms; that the organisation wishes to reach; that the organisation wishes to reach; Must be in a stated period of time. Must be in a stated period of time.

6 PROJECT MANAGEMENT BUSINESS PLANNING PROCESS Strategies to consider: Design to achieve the objectives such as: Design to achieve the objectives such as: A set of budgets A set of budgets Clear goals Clear goals Achievable targets Achievable targets Statement for needs. Statement for needs.

7 PROJECT MANAGEMENT BUSINESS PLANNING PROCESS Covering all aspects of the business such as: People People Premises Premises Organisations Organisations Capital Capital Cash. Cash.

8 PROJECT MANAGEMENT BUSINESS PLANNING PROCESS Tactical plans Individual plans to achieve items such as: Defined goal Defined goal Operations and Projects Operations and Projects The plan describes how the organisation will achieve each element of the strategic plan.

9 Tactical plans 1 Defined goal 2 Operations and Projects 3 Achieve each element of the strategic plan

10 PROJECT MANAGEMENT BUSINESS PLANNING PROCESS

11 Another way to look at Business plan Remember COST Remember COST CCommitment by all concerned to the project CCommitment by all concerned to the project OObjectives being clear to all-Scope and Mission OObjectives being clear to all-Scope and Mission SStrategy to meet the objectives-Milestone Plan SStrategy to meet the objectives-Milestone Plan TTactical-activities found necessary to achieve to each milestone and solve Problems TTactical-activities found necessary to achieve to each milestone and solve Problems

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14 P7

15 FUNCTION OF PROJECT MANAGEMENT The basic Management Principles described by Henri Fayol are: The basic Management Principles described by Henri Fayol are: To plan To plan To organise To organise To co-ordinate To co-ordinate To control To control To lead To lead

16 FUNCTION OF PROJECT MANAGEMENT To leadTo control To co- ordinate To organise To plan

17 FUNCTION OF PROJECT MANAGEMENT The function of Project Management in more detail are: To establish the clients objectives and priorities issues such as: To establish the clients objectives and priorities issues such as: brief formulation; brief formulation; client organisation; client organisation; approval powers. approval powers.

18 FUNCTION OF PROJECT MANAGEMENT Design Project Organisation Such as: organisation chart; organisation chart; decision point; decision point; Relationships; Relationships; feed back. feed back.

19 FUNCTION OF PROJECT MANAGEMENT Integrate Client into the project client organisation integrated into project organisation; client organisation integrated into project organisation; people responsibilities; people responsibilities; decision processes. decision processes.

20 FUNCTION OF PROJECT MANAGEMENT Selection and appointment of Contributors identify contributors; identify contributors; identify input required; identify input required; identify when input required and duration; identify when input required and duration; record types of appointment. record types of appointment.

21 FUNCTION OF PROJECT MANAGEMENT Full brief formulation process Establish need, budget, cost plan, cost limit, procurement route. Establish need, budget, cost plan, cost limit, procurement route. Start value engineering. Start value engineering. Programme formulation. Programme formulation. The overall project programme. The overall project programme.

22 FUNCTION OF PROJECT MANAGEMENT The phase or stage programme The design programme. The design programme. The procurement programme. The procurement programme. The construction programme. The construction programme. The commissioning programme. The commissioning programme.

23 FUNCTION OF PROJECT MANAGEMENT Activation of the relationships between contributors Activation of the relationships between contributors Ensure contributors are brought in and integrated into the project organisation. Ensure contributors are brought in and integrated into the project organisation. Ensure contributors can perform as required. Ensure contributors can perform as required.

24 FUNCTION OF PROJECT MANAGEMENT Establish appropriate information and communication structure by: Establish appropriate information and communication structure by: establishing a full project procedures manual containing; establishing a full project procedures manual containing; description of formal communication cannel; description of formal communication cannel;

25 FUNCTION OF PROJECT MANAGEMENT change requests and instructions; change requests and instructions; drawings framework; drawings framework; co-ordination project information system; co-ordination project information system; Address index of all contributors. Address index of all contributors.

26 FUNCTION OF PROJECT MANAGEMENT Convening and chairing meetings of contributors at all stages such as: Judging the need and frequency; Judging the need and frequency; Who needs to attend; Who needs to attend; Agenda setting; Agenda setting; Minutes and action. Minutes and action.

27 FUNCTION OF PROJECT MANAGEMENT Monitoring and controlling Pro-active role; Pro-active role; Obtaining feedback and under taking analysis; Obtaining feedback and under taking analysis; Testing outcomes to objectives and taking corrective action; Testing outcomes to objectives and taking corrective action; Forecasting; Forecasting; Integrating and controlling contributors. Integrating and controlling contributors.

28 FUNCTION OF PROJECT MANAGEMENT Managing completion Commissioning programme; Commissioning programme; Training of user; Training of user; As built drawings-user maintenance manuals; As built drawings-user maintenance manuals; Strategy for occupation or disposal. Strategy for occupation or disposal. Evaluation of outcomes Success in achieving objectives; Success in achieving objectives; The final feedback loop; The final feedback loop;

29 FUNCTION OF PROJECT MANAGEMENT SYSTEMATIC APPROACH TO ANY PROJECT Royal Institute of British Architects (RIBA PLAN OF WORK) Royal Institute of British Architects (RIBA PLAN OF WORK)

30 TACTICAL PLANS

31 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.

32 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 1 Commence development of Strategic Brief into Project Brief 2 Prepare Outline Proposal 2 Prepare Outline Proposal 3A Provide an approximation of construction costs. OR 3B Provide information for cost planning.

33 RIBA PLAN OF WORK 4 Obtain Client approval to Outline Proposals and approximate construction cost. 4 Obtain Client approval to Outline Proposals and approximate construction cost. 5 Co-operate with Planning Supervisor where applicable. 5 Co-operate with Planning Supervisor where applicable.

34 RIBA PLAN OF WORK D Detailed Proposals 1 Complete developments of Project Brief. 1 Complete developments of Project Brief. 2 Develop the Detailed Proposal from 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.

35 RIBA PLAN OF WORK 5 Obtain Client approval to the Detailed Proposal showing spatial arrangements, material and appearance, and a cost estimate. 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. 6 Prepare and submit application for full planning permission.

36 RIBA PLAN OF WORK E Final Proposals 1 Design Final Proposals from approved Detailed Proposals. 1 Design Final Proposals from approved Detailed Proposals. 2A Revise cost estimate. 2A Revise cost estimate. 2B Provide information for revision of cost estimate. 2B Provide information for revision of cost estimate. 3 Consult statutory authorities on developed design proposals. 3 Consult statutory authorities on developed design proposals.

37 RIBA PLAN OF WORK 4 Obtain Client approval to type of construction, quality of materials, standard of workmanship and revised cost estimate. 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. 5 Advise on consequences of any subsequent changes on cost and programme.

38 RIBA PLAN OF WORK F Production Information 1 Prepare production information for tender purposes. 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

39 RIBA PLAN OF WORK 2B Provide information for preparation of tender pricing documents and revision of cost estimate. 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 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). 3B Prepare and give building notice under building acts and/or regulations (not applicable in Scotland).

40 RIBA PLAN OF WORK 4 Prepare further production information for construction purposes. 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.

41 RIBA PLAN OF WORK 3A Prepare pre-tender costs. OR 3A Prepare pre-tender costs. OR 3B Provide information for preparation of pre-tender cost estimate 3B Provide information for preparation of pre-tender cost estimate H Tender Action 1 Contribute to appraisal and report on 1 Contribute to appraisal and report on tenders negotiations. 2 If instructed revise production information to meet adjustments in the tender sum.

42 RIBA PLAN OF WORK J Mobilisation 1 Provide production information as requested for the building contract and for construction. 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. 1 Make visits to the works in connection with the Architect's design.

43 RIBA PLAN OF WORK 2 Provide further information reasonable required for construction. 2 Provide further information reasonable required for construction. 3 Review design information from contractors or specialists. 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. 4 Provide drawings showing the building and main lines of drainage and other I information for the Health and Safety File.

44 RIBA PLAN OF WORK 5 Give general advice on operation and maintenance of the building. 5 Give general advice on operation and maintenance of the building. L After Practical Completion. 1 Identify defects and make final inspections. 1 Identify defects and make final inspections. 2A Settle Final Account. OR 2B Provide information required by others for settling final account.


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