business economics and entrepreneurship aleš tomek hal johnston
TRANSCRIPT
BUSINESS ECONOMICS AND ENTREPRENEURSHIP
Aleš Tomek
Hal Johnston
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
2
List of Lessons
1. Emerging Trends AT & HJ2. Business Strategies AT & HJ3. Financial Management AT & HJ4. Risk Management AT & HJ5. Project Management AT & HJ
6. Advanced Systems AT & HJ 7. Standard Contracts AT & HJ 8. Cash Flow Planning AT & HJ9. Sustainability Concepts AT & HJ
10. Summary AT & HJ
Topic for TodayProject Management
Hal Johnston
Faculty of Civil Engineering
Department of Economics and Management
Czech Technical University in Prague
Project Management for Superior PerformancePart 1 - Introduction
Czech Technical University in Prague
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Objectives
• Today we will present the following:
– Reasons for a different type of management for project-based firms
– Attributes of construction projects requiring special management techniques
– Goals and objectives of construction projects
– Management techniques that can be used to successfully meet the goals and objectives of construction projects
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Introduction to Project Management
• Management is a discipline
– Large, broad-based field
• Project management
– Management of several projects
• Separate entities
– Finite time frame
• Associated with completion date
– Primary purpose: to achieve project goals
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Attributes of Construction Projects
• Include:
– Specific parameters (e.g., budget)
– Finite durations
– Located away from company
– Each project requires separate management
– Single source of responsibility
– Separate cost accounting element
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Attributes of Construction Projects (cont’d.)
– Single project can have thousands of parts, systems, and equipment
– Substantial purchases may be required
– Substantial subcontracting is used
– Construction companies have numerous projects at the same time
– Single owner or customer
– Each site is controlled by the contractor
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Goals and Objectives of Construction Projects
• Project goals
– Example: successful and profitable
• Objectives
– Definable tasks that support goals
• Time frame and level of quality
• Cost control and safety program effectiveness
• Customer satisfaction
• Effective management of subcontractors
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Management Techniques to Achieve Project Goals and Objectives
• Management techniques
– Necessary to control project building
• In order to achieve objectives
– Wide variety
– Takes a team to design and build facilities
• Managers control all variables
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Organization of the Project Delivery System
• Needs to be cost-effective
– Personnel varies according to project
• Project duration, size, and contract type
• Amount of self-performed work
• Personnel available and crew size
• Multiple areas of work and contracts
• Reporting requirements to the customer
• Extent of cost control and reporting required
• Public versus private work and market
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Leadership
• Attributes:
– Vision of entire project
– Plans for achieving completed project
– Insistence of meeting financial goals
– Understand crews and provide motivation
– Communication– Maintain relationships
with upper management
– Critical decision timing– Company loyalty
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Problem Solving
• Considerations:
– Full impact on subcontractors, suppliers, and contractor
– Cost impact
– Time impact
– Best solution for project conditions
– Best method of resolving conflicts
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Reporting and Record Keeping
• Provides:
– Communication between field and home office
– Communication with client and consultants
– Systematic and regular analysis of current conditions by field personnel
– Historical record for project documentation
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Planning and Scheduling
• Enables completion on a finite date
– Plan: organizes the project
– Schedule: tool for communicating the plan
• Flexible
– Can be modified to changing conditions
• Initial planning: project management basis
• Continual planning and scheduling: addresses conditions that arise
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Cost Control
• Containing construction costs
– Within budget established by cost estimate
• Involves use of comparison
– May indicate a need to change methods, techniques, or crew composition
• Can help achieve additional profits
• Ensures accurate cost database
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Flow of Cost InformationDelmar/Cengage Learning
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Quality Management
• Has become an important part of project management’s tasks
– Quality has several meanings
• Meeting expected level of material
• Maintaining the level of workmanship
• Earning general customer satisfaction
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Safety Management
• Proactive safety management program
– Economic benefits
• Workers’ compensation premiums
• Insurance premiums
– Tied to company-wide performance record
– Goal: prevent all jobsite accidents
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Contract Compliance
• Submittals include:
– Material and permanent equipment submittals
– Shop drawings
– Project meetings
– Change control, documentation, and compensation
– Progress payments and project closeout
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Computerized Record Keeping
• Helps compile, organize, and analyze project progress information
– Time, cost, and project data recorded on the jobsite
• Timely production of quality, usable information
• Facilitates problem solving and communication during the project
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Summary
• Construction organizations:
– Rely on project management to manage profit centers
• Goals of a construction project:
– To be successful and profitable
• Variety of techniques used
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
23
End of Part 1 of topicsQuestions?
Project Management for Superior Performance
Part 2 - The Project Team
Czech Technical University in Prague
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Objectives
• Part 2 will introduce the following:
– Traditional delivery system and the relative roles within that system
– Roles and responsibilities of the participants in the traditional system for the owner, architect, and contractor
– Construction management form of the construction delivery system and the relationships of the roles within that system
– Design-build delivery system with examples of the roles and responsibilities within that system
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Roles, Responsibilities, and Authority of Project Participants
• Delivery systems
– Provide a matrix of organization
• Formal and informal contractual relationships between participants
• Standard contractual forms are available for each delivery system
– Professional and trade associations
• Produce and endorse contractual agreements
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
The Traditional Contract Project Delivery System
• Referred to as “design-bid-build”
– Primary contractual parties:
• Owner, architect, and contractor
– Neither the architect nor the contractor does 100% of the work assigned
• Each makes an agreement with others involved to accomplish specific areas of work
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
The Traditional Construction Delivery SystemDelmar/Cengage Learning
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
The Traditional Contract Project Delivery System (cont’d.)
• Methods of compensation:
– Lump-sum contract
– Cost, plus a fee
– Cost plus, with guaranteed maximum price
– Unit price contract
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Responsibilities of the Contractual Parties
• Owner:
– Paying for the work and project coordination
– Site, scope, and documents
• Architect:
– Project design and construction documents
• Contractor:
– Labor, material, equipment, expertise, and means to complete the project
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
The Owner’s Roles During the Construction Phase
The Owner’s Organization for the Construction ProjectDelmar/Cengage Learning
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
The Architect’s Roles During the Construction Phase
Architect’s OrganizationDelmar/Cengage Learning
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
The Contractor’s Roles During the Construction Phase
Contractor’s Project OrganizationDelmar/Cengage Learning
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Contractor’s Project Organization, Project Manager,and Superintendent ParallelDelmar/Cengage Learning
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Other Roles in the Construction Process
• Significant roles played by other entities
– Majority are regulatory agencies
List of Typical InspectionsDelmar/Cengage Learning
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Communications in the Traditional System
Communication Matrix, Traditional SystemDelmar/Cengage Learning
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
The Construction ManagementDelivery System
• Contractor-based management systems
– Applied early in the project
• Provides more tools and controls
• Forms of CM:
– Agency CM
– CM-at-Risk, CM/GC, Multiple Prime, or Guaranteed Maximum Price (GMP)-CM
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes Organization of the CM Delivery System (Agency CM)Delmar/Cengage Learning
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Roles of the CM Project Team
Construction Management RolesDelmar/Cengage Learning
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Communications in the CM Delivery System
Communications in the Construction Management SystemDelmar/Cengage Learning
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
The Design-Build Delivery System
• Single-source procurement
– Design and construction provided for GMP
• “Cost not to exceed” price
• Often includes a cost-savings split clause
– Design-build firm
• Facilitator for designers and constructors
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
NotesDesign-Build Organization IDelmar/Cengage Learning
Design-BuildOrganization IIDelmar/Cengage Learning
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
NotesDesign-BuildOrganization IIIDelmar/Cengage Learning
Design-Build Organization IVDelmar/Cengage Learning
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Communications in the Design-Build Delivery System
Design-Build CommunicationsDelmar/Cengage Learning
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Engineering-Procurement-Construction
• Referred to as E-P-C
– Common for heavy construction facilities
• Industrial plants, power plants, refineries, etc.
• E-P-C firm provides:
– Engineering
– All materials and equipment
– Construction
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
Summary
• Primary construction delivery systems:
– Traditional system (i.e., design-bid-build)
– CM system
– Design-build system
• Each system is effective in certain situations
– Project communications vary
European Erasmus Mundus Master Course
Sustainable Constructions under Natural Hazards
and Catastrophic Events
Introduction
Properties
Thermal
Mechanical
Transfer of heat
Unprotected Protected
Elemental analyses
Classification Beams
Columns
Critical temp.
Summary
Worked example
Notes
47
End of part 2 - topicQuestions?