project management
DESCRIPTION
Project Management presentation to renewable energyTRANSCRIPT
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Project Management/Energy Management
Dr Sina Rezvani
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Objectives of the workshop
At the end of the workshop you should be able to know:
What are the main reasons for project failure/success?
Key project management principlesWhat are project success metrics in Environmental
Engineering Design / Energy Management ?
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Describe the nature of a project?
A project is a sequence of unique, complex, and connected processes and activities having one goal or
purpose and that must be completed by a specific time, within budget, and according to specifications.
• Projects involve risks• Different phases• Involves people and groups with different expertise or
backgrounds• Projects don’t fall from sky (Problem)• Requires planning and coordination of interrelated activities• Feasibility studies
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Project inception
• Projects don’t fall from sky, they are created
• Feasibility studies / Project evaluation• Planning • Coordination of interrelated activities• Resource allocation
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Steady state,
Homoestasis
Sustainability
Equilibrium
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Failure often results from flawed perceptions of what is involved in
successfully managing complex system development from inception through
completion.
Kevin Forsberg: Visualizing Project Management
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Source: Humor in Systems Analysis
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Project limitations• Controllable:
– Specifications– Deadlines– Budget– Skills– Experience
• Beyond our control: – Environmental– Political– Global
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Why projects fail?• The goal of the project needs to be defined
clearly• Lack of change management
(changes to project are not controlled) The ‘moving goalposts’ syndrome.
• Poor or non-existent planningA solid plan is one of the key steps of the effective project
management.
• The project is not resourced as planned Resources are not available at the time, or are not booked in advance
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Why projects fail? Cont…Quality criteria is not defined or measuredLack of ownership - It is not clear who is
responsible for the project outcomeThe progress is not monitored and
controlled properly.Lack of coordination of activitiesThe project is not led properlyThe project reporting is inadequate or
does not exist
On time, on budget and as defined
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Tip-of-the Iceberg syndrome
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Things you should know• Define your project clearly• Proper project planning in terms of process• Responsibilities • Communication plan + implementation• Quality plan + implementation through monitoring• Contingency plans + implementation if required• Managing plans (Project manager)• Identifying risks and possible problems• Problem solving (something will go wrong at some
point)
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What is your project?
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General project life cycle
– Problem perception– Problem definition– Ideas and suggestions– Decision making process– Planning– Implementation– Validation– Feedback– Correction
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Problem
Implementation Formulation
Evaluation Identification
The project cycle
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In-house R&DSmall Construct.
Large Construct.
Aerospace/Military MIS
Interpersonal skills Low Low High High High
Organisational structure Low Low Low Low High
Time management difficulties Low Low High High High
Number of meetings Excessive Low Excessive Excessive High
PM's supervisor Middle M. Top M. Top M. Top M. Middle M.
Project Sponsor present Yes No Yes Yes Yes
Conflict intensity Low Low High High High
Cost control level Low Low High High Low
CLASSIFICATION OF PROJECTS
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LIFE-CYCLE PHASE DEFINITIONS
Engineering Manufacturing IT Construction
Start-up Formation Conceptual Data gathering
Definition Buildup Planning Planning
Main Production Definition Basic Eng.
Termination Phase-out Design Major review
Final Audit Implementation Detailed Eng.
Conversion Construction
Commissioning
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Project Plan
• Why?
• What?
• When?
• Who?
• How?
• How Much?
• Objectives
• Products
• Milestones
• Responsibilities
• Approach
• Resources & Effort
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Project management strategy
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Project responsibilities
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Brief Generation Process• Initial phase
– Identifying user requirements/needs– Setup working group (chair, responsibilities…)
• Statement of needs– Meetings/workshops– Draft statement of needs
• Function, timing, priorities, land, – Review and confirm the needs
• Business case– Physical and financial resources and impacts – Draft, review and confirm business case– Set and confirm targets
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Statement of needs• Activities and Functions
– Functions: Number of rooms, open areas, space requirements, heights, frequency of use, special needs, maintenance, visitors, people movements, access areas, deliveries, parking, site availability, etc.
– Features: Wall, floor ceiling materials and finishes, relationships, etc.
• Environmental Condition/Control– Temperatures, humidity, fume extraction, light, dust, energy needs,
landscapes, visual impact, water usage, etc.
• Security / Safety Issues– Privacy, radiation, access, fire, noise, wastes, chemicals, special needs
(museums, hospitals, manufacturing areas) etc.
• Services– Air conditioning, heating/steam, ventilations, lighting, boilers, CHP,
gas/electricity/water supply, effluents, IT, storage,
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Functional Briefing (FB) Stage• Based on agreed statement of needs
– Translated into researched and comprehensive FB
• FB is used to generate – a clear definition of the project
• Main objectives, client, functions, flexibility, services, specific requirements, prioritisation, feasibility, impacts
– Budget and cost estimations (different costs)– Project schedule
• FB requires – Experts and multidisciplinary skills– Conceptual analysis– Knowledge base / large experience base– Plan of the proposed building according to agreement– Final approval
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Primary goal from entrepreneurial point of view
• Maximize profits • Minimize costs• Competitiveness• Economic growth• Short pay back times• Low operating costs• Demand-Supply balance• Short term planning• GDP approach to everything
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Primary goal from functionality point of view
• System according to specification• High availability /reliability• Good performance attributes• High lifetime• Low maintenance• Additional functionality (be careful with this one)• Easy to use but complex enough to perform more
complicated jobs• Ergonomics
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Primary goal from social point of view(HDI approach)
• Improving standard of life• Better health care/standards• Human development• Social cohesion / abolishment of prejudices• Nurturing a growing culture• Education/training/sciences• General happiness (lower mental disorders ..)• Lower crime rates, elimination of corruption• Justice/fairness (competition) /human rights• Universal participation/grassroot activities • Humanitarian activities• Cultural development
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Primary goals from environ. point of viewRequires long-term planning
• Sustainability issues• Preservation of resources (e.g. by improving efficiencies,
renewable energy …)• Reducing GHG emissions/ pollutions/waste (water, air
soil etc.)• Preserving geological heritages / ecosystems• Biodiversity / reforestation• Population dynamics /urban developments/ land use• Maintaining environmental balance• Protecting water / food resources (pest control,
fertilizers, rerouting water etc.)
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Heating options
• Low energy house / building• Passive house• Heat recovery• Insulation• Alternative ways of heating
– Biomass– Geothermal– Solar
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Project Authorisation
• Project initiation• Project Feasibility analysis• The Project Business Case
– Created usually by the sponsor– SMART objectives
• Project Charter– Formally authorises the project
• Project strategy /Scoping
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Project specific information• Project perception
– Problem identification, goals and objectives• Human resource Management
– Stakeholders: Team members, sponsors, managers, other peoples
– Responsibility matrix and levels (Organ. charts) – Leadership, management, communication,
ownership• Management of Non-human resources
– Identifying materials, tools, machines etc.– Procurement plant, supply chain management
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Project specific information (cont.)• Project management approach
– Process: Project strategy (TD or BU), planning, best practice guidelines, monitoring progress, flexibility, contingencies
– Project schedule: Task dependencies, time allocations (deliverable, milestones, ..), budgets
• Project monitoring– Checklists /recording progress– Cost / time estimation versus real values– Evaluating the work of people and the quality of non-human
resources– Quality control mechanisms: tests, inspections, problem
identifications, spotting bottlenecks– Reports: Feedback, useful for future projects
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Project specific information (cont.)
• Project performance– Benefits to customers, operators, people, – Quantify benefits: Environ., social, R&D, scientific
etc.– Operating and maintenance – Breakeven electricity selling prices / payback time– Renewable energy directives, emission trading
schemes (ETS), other financial incomes
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Understand your project through a Mind Maps
Address the main project aspects in a diagram• Problem perception• Project/problem definition• Feasibility aspects• Complexity versus simplicity• Goals / main ideas / project differentiation/
innovation• Project management: Structure, team,
planning, organisation, control, timing
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Civil and building engineering
• Project management ProcessLocation, scale of work, environmental
impact, magnitude of serviceInitial project design, simulations, tests,
prototyping, benchmarking: System selection, risk reduction, cost estimation
Decision making process: Shareholders, loans, planning permission
Designing the work: Specifications, milestones, resources, cost optimisation, contacts (according to ICE)
Construction: control mechanisms, resource allocation, actual work
Commissioning: Tests
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Parties involved
• Promoter/employer: finance and initiate the project
• Contractors: Implementing the work, (invited to tender), providing resources
• Agent: In charge of giving the day-to-day instruction, directing construction work on site
• Plant manager: plant availability• Foreman: Keep the work moving ahead• Skilled personnel: Welders, brick layers,
carpenters, concrete gangs etc.
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Engineers• Engineer + advisors: Supervisory role (works in
partnership with contractors)Consulting engineer: Feasibility analysisSection engineer (sub-agent): Setting out
works and progress report Independent engineer (as described by ICE):
impartial role of communicating between both sides
Resident engineer (Project manager): appointed by the employer to supervise the completion of work according to the spec. , administer the contract
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Further jobs• Quantity surveyor: Manages costs
relating to building, payment applications
• Office manager: Misc activities• Site accountant: Transactions• Plant operators: Drivers, crane
operators,
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Executing
InitiatingPlanning
Controlling
Closing
Simplified Process
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R&D
• Phase 1: Proposal• Phase 2: Analysis• Phase 3: Design• Phase 4: Development• Phase 5: Implementation• Phase 6: Post-implementation
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Project planning• Historical Records – need to collect and
use for planning, estimating and risk• Meetings to consult on project scopes• Work Breakdown Structures• Do not introduce benefits that are not
stated in requirements• Needs of all stakeholders should be taken
into account during all projects• Team Members must be involved in
project planning• Project Manager must be pro-active
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Implementation
• The application of knowledge, skills, tools and techniques to project activities
• Meeting the expectations of stakeholder
• Performance parameters:– Scope, time, cost, and quality– Requirements vs. unidentified needs
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Resources
Time (Schedule, Deadline)
Costs
Success
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Management– Defining– Planning– Organising– Staffing– Executing– Controlling– Directing– Completing– Documentation– Feedback
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Human resource planning• Definition:
– “The process for ensuring that the HR requirements of an organisation are identified and plans are made for satisfying those requirements.”
• Activities involved:Identify and acquire the right number of
people with the proper skills.Motivate them to achieve high
performance.Create interactive links between business
objectives and people-planning activities.
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Aims of HRP• Attract and retain the number of people required
with the appropriate skills, expertise and competencies
• Anticipate the problems of potential surpluses or deficits of people;
• Develop a well trained and flexible workforce to contribute to the organisation’s ability to adapt to an uncertain and changing environment;
• Reduce dependence on external recruitment when key skills are in short supply by formulating retention, as well as employee development strategies;
• Improve the utilisation of people by introducing more flexible systems of work.
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Practice
• Resourcing strategy• Scenario planning• Estimating future requirements• Labour turnover• Action planning
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‘HARD’ and ‘SOFT’ HRPHard HRP
– Quantitative analysis to ensure that the right number and sort of people are available when needed
Soft HRP– Ensuring the availability
of people with the right type of attitudes and motivation who are committed to the organisation and engaged in their work and who behave accordingly
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Soft HRP
• Soft HRP is based on assessments of the requirement for these qualities and measurements of the extent to which they exist, by:
– Using staff surveys– Analysing outcomes of performance
management reviews– Analysing opinions generated by focus
groups
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The HRP Process
Four main categories of staff:
• Existing staff• New recruits• Potential staff• Leavers
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JOB→↓ SEQUENCE
A B C D E
1 W - 2 L - 2 L - 2 L - 3 T - 1
2 D - 2 W - 6 T - 4 T - 3 L - 1
3 T - 4 L - 4 W - 5 Pa - 3 Pa - 3
4 D - 2 D - 2 L - 4 Pe - 3
5The sequence cannot
be altered
Pa - 3
A small engineering firm employs 6 people: Louis (Lo), David (D), Walter (W), Tom (To), Pa: Patrick, Pe: Peter
20 days to complete 5 Jobs/OrdersDetermine whether a solution is possible. Use a bar chart format to demonstrate your answer
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
A
B
C
D
E
Louis
Tom
Walter
David
Patrick
Peter
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Accumulation of work Louise Tom Walter David Patrick Peter
1 7 1 2 0 0 0
2 1 7 6 2 0 0
3 4 4 5 0 6 0
4 4 0 0 4 0 3
5 0 0 0 0 3 0
16 12 13 6 9 3
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Plan restructured
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Lo
To
W
D
Po
Pa
A
B
C
D
E
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Exercise 2
Order Operation Duration
1. Excavate base 1 day
2. Concrete blinding ½day
3. Reinforcement to base 1
4. Concrete base 1
5. Reinforcement to column 1
6. Formwork to column 2
7. Concrete column 1
8. Strike formwork ½day
Prepare a plan in bar chart form for the construction of 3No. Columns.
a. You have only the use of 1No. of each resource b. Unlimited resources
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Solution
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Excavate Base
Concrete Blinding
Reinforce to Base
Concrete Base
Reinforce to columns
Formwork to columns
Concrete Column
Strike framework
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Solution
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Excavate Base
Concrete Blinding
Reinforce to Base
Concrete Base
Reinforce to columns
Formwork to columns
Concrete Column
Strike framework
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Solution
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Excavate Base
Concrete Blinding
Reinforce to Base
Concrete Base
Reinforce to columns
Formwork to columns
Concrete Column
Strike framework
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WBS
• Functional decomposition of a system• Breaks the project into chunks of work at
a level of detail that meets planning and scheduling needs
• Object oriented WBS• Task oriented WBS
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Project Selection 1.1.1.1.1
Project Organization
1.1.1.1.2
Project Planning 1.1.1.1.3
Chapter 1 1.1.1.1
Budget & Cost
1.1.1.2.1
Scheduling 1.1.1.2.2
Project Controls 1.1.1.2.3
Auditing 1.1.1.3.1
Administrative
Closeout
1.1.1.3.2
Writing Text Book
1.1.1
Editing Text Book
1.1.2
Publishing Text Book
1.1.3
Project Management- An Introduction
1.1
BEST Management Books
1.
Chapter 2 1.1.1.2
Chapter 3 1.1.1.3
Editing Chapter 1
1.1.2.1
Editing Chapter 2
1.1.2.2
Editing Chapter 3
1.1.2.3
Project Selection 1.1.1.1.1
Project Organization
1.1.1.1.2
Project Planning 1.1.1.1.3
Chapter 1 1.1.1.1
Budget & Cost
1.1.1.2.1
Scheduling 1.1.1.2.2
Project Controls 1.1.1.2.3
Auditing 1.1.1.3.1
Administrative
Closeout
1.1.1.3.2
Writing Text Book
1.1.1
Editing Text Book
1.1.2
Publishing Text Book
1.1.3
Project Management- An Introduction
1.1
BEST Management Books
1.
Chapter 2 1.1.1.2
Chapter 3 1.1.1.3
Editing Chapter 1
1.1.2.1
Editing Chapter 2
1.1.2.2
Editing Chapter 3
1.1.2.3
WBS ≠ Organisational chart
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Preparing a WBS• Iterative consideration of the
project’s purpose• Functional/performance design
criteria• Project scope, technical
performance requirements• Conceptual stage: A high-level WBS• Specifications at lower levels• Think deliverables• Clear vision of the end product
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Assumptions
Aggregation of all subordinate works Decomposition to the level of production Each element => a single tangible deliverable Avoid duplication of efforts
Each subordinate element => Only one single parent Logical partitioning of deliverables Deliverables unique and distinct from their peers Deliverables: optimised in size, controllable Costs, resources and manpower Consolidation of the whole project cost
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Level of details• Improving the accuracy of the estimation• Defining a responsibility for each deliverable• Number of deliverables for each WBS elements• Accuracy of the work processes timing• Cost definition• Time gaps in the execution of the work processes• Resource requirements changes over time within a WBS
element?• Prerequisites among internal deliverables• Objective criteria for measuring progress• Risks • Dependencies between deliverables• Aggregation of a portion of the work as a unit
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Exercise 3
1. Build a WBS for the construction of a single family home. 1b. Assign WBS codes to the element
1c. Use the codes to estimate the overall project cost(use rough cost assumptions for each sub projects)
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Solution
Total cost: Add up the cost of sub-elements
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1 ACME Housing Corporation 1.1 New Home Construction
1.1.1 Concrete 1.1.1.1 Pour
Foundation1.1.1.2 Install Patio
1.1.1.3 Pour Stairway
1.1.2 Framing1.1.2.1 Frame
Exterior Walls1.1.2.2 Frame
Interior Walls1.1.2.3 Install
Roofing Trusses1.1.3 Plumbing
1.1.3.1 Install Water Lines
1.1.3.2 Install Gas Lines
1.1.3.3 Install B/K Fixtures
1.1.4 Electrical1.1.4.1 Install
Wiring1.1.4.2 Install
Outlets/Switches1.1.4.3 Install
Fixtures1.1.5 Interior
1.1.5.1 Install Drywall
1.1.5.2 Install Carpets
1.1.5.3 Install Painting
1.1.6 Roofing
1.1.6.1 Install Felt
1.1.6.2 Install Shingles
1.1.6.3 Install Vents
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Organization Breakdown Structure (OBS)
CONCRETE
PERF DEPT 6010
M. Manning
MASONRY
PERF DEPT 6020
T. Greams
TEST
PERF DEPT 6030
K. Neumann
CIVIL
RESP DEPT
R. Kelly
CARPENTRY
PERF DEPT 5010
R. Sites
ROOFING
PERF DEPT 5020
Y. Taylor
DRYWALL
PERF DEPT 5030
D. Smith
STRUCTURAL
RESP DEPT
P. Tate
PERF DEPT 4010
S. Johnson
HOOKUP/TIE-INPERF DEPT 4020
P. Ottis
ELECTICAL
RESP DEPT
J. Sims
WATER/SEWER
PERF DEPT 3010
K. Wells
GAS
PERF DEPT 3020
R. Oriely
PLUMBING
RESP DEPT
R. Lee
PROJECT OFFICE
RESP DEPT
B. Smithers
WIRING
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Responsibility Assignment Matrix
Performing Dept. Manager
Pour Foundation
1.1.1.1Install Patio
1.1.1.2
Pour Stairway 1.1.1.3
Frame Exterior Walls
1.1.2.1
Frame Interior Walls
1.1.2.2
Install Roofing Trusse 1.1.2.3
Install Water Lines
1.1.3.1
Install Gas Lines
1.1.3.2
Install B/K Fixtures 1.1.3.3
CONCRETE DEPT 6010 Manning 200 125 85MASONRY DEPT 6020 Greams 50TEST DEPT 6030 Neumann 20 10 5CARPENTRY DEPT 5010 Sites 300 250 175ROOFING DEPT 5020 Taylor 100DRYWALL DEPT 5030 Smith 275WIRING DEPT 4010 JohnsonHOOKUP/TIE-IN DEPT 4020 OttisWATER/SEWER DEPT 3010 Wells 100 15GAS DEPT 3020 Oriely 125 25
1.1.3PLUMBINGCONCRETE
1.1.1FRAMING
1.1.2
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Duration - Estimation
• Similarity to other activities• Historical data• Expert advice• Mathematical models
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Duration is a Cause of Variation
• Sources of variation:– Varying skill levels– Unexpected events– Efficiency of work time– Mistakes and misunderstandings
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Relationships
• Network diagram
• Finish to start
• Predecessor Task: A
• Successor Task: B• Activity A Must Be Finished Before B Can Start
• Arrow head indicates dependency relationship: Task B cannot begin until Task A is complete
A B
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Consider lag and lead time
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D
E
F
G
FrameHVAC
Rough Electric
H
Sheet Rock
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Exercise 3: Dependencies
1. Activity C and D both follow AActivity E follows CActivity F follows D Activity E and F precede B
2. Activity G and F precede HActivity G and D precede J Activity M and H precede LActivity F follows A Activity A and D start at the same timeActivity J and L finish at the same time Activity K and A precede L
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construction of a single family home.
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Building a house
Time ImmediateRequiredPredecessor
Activity Description (in days) ActivitiesA Excavate --B Lay foundation AC Rough plumbing BD Frame/walls BE Finish exterior DF Install HVAC DG Rough electric DH Sheet rock C, E, F, GI Install cabinets HJ Paint HK Final plumbing IL Final electric JM Install flooring K, L
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NWDInstall
Cabinets
A B
C
D
E
F
G
H
I
J
K
L
M
Excavate
Lay Foundation
Rough Plumbing
Frame
Finish Exterior
HVAC
Rough Electric
Sheet Rock
Paint
Final Plumbing
Final Electric
InstallFlooring
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Time ImmediateRequiredPredecessor
Activity Description (in days) ActivitiesA Excavate 3 --B Lay foundation 4 AC Rough plumbing 3 BD Frame 10 BE Finish exterior 8 DF Install HVAC 4 DG Rough electric 6 DH Sheet rock 8 C, E, F, GI Install cabinets 5 HJ Paint 5 HK Final plumbing 4 IL Final electric 2 JM Install flooring 4 K, L
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CPM
• Most important chain of tasks in a project• The start of each task depends on the
completion of the previous task.• The tasks are carried out by a person or
a group.• If CPM is completed later as it was
scheduled the entire project completion will be delayed.
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CPM in construction
• Sequence of construction operation• Predict construction completion time• Identification of critical activities• Project time reduction measures• Balanced scheduling of manpower• Progress report• Project evaluation
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Milestones• Milestones are significant events on a project that normally have
zero duration• You can follow the SMART criteria in developing milestones that
are:– Specific– Measurable– Assignable– Realistic– Time-framed
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CPM: Definition• CPM is a project network analysis technique used to predict total
project duration• A critical path for a project is the series of activities that determines
the earliest time by which the project can be completed• The critical path is the longest path through the network diagram
and has the least amount of slack or float
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Finding CPM
• First develop a good project network diagram
• Add the durations for all activities on each path through the project network diagram
• The longest path is the critical path
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CPM
• EST, LST, EET, LET• Critical path• Buffer time=LST-EST or LET-EET
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PERT
• Programme• Establishing project baseline• Bottlenecks• Evaluating progress• Resource levelling
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Project duration
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Shortening project time
• Shorten durations of critical tasks by adding more resources or changing their scope
• Crashing tasks by obtaining the greatest amount of schedule compression for the least incremental cost
• Fast tracking tasks by doing them in parallel or overlapping them
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Activity Pred. Duration Cost Trade/Plant
N. Cr. N. Cr.
1 A Start 4 3 4 7 Excavator
2 B Start 5 3 7 10 Concrete Gang
3 C Start 6 4 3 6 Excavator
4 D Start 3 2 8 12
5 E A 4 3 5 8 Concrete Gang
6 F B, D 2 1 6 10
7 G C 4 3 9 14 Concrete Gang
8 H D 5 3 5 8
9 I E 6 4 4 7 Excavator
10 J E 6 4 8 11
11 K A, F 2 1 4 6 Concrete Gang
12 L J, K, G 4 3 6 9 Concrete Gang
13 M G, H 3 2 3 5 Excavator
Total 72 ?
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A.4.EX
B.5.CG
C.6.EX
D.3
START
E.4.CG
F.2
G.4.CG
H.5
I.6.EX
J.6
K.2.CG L.4.CG
M.3.EX
END
0 4
0 5
0 3
0 6
4 8
5 7
3 8
6 10
8 14
8 14
7 9 14 18
10 13
18
14 18
15 18
12 18
8 14
12 14
10 14
10 15
4 8
10 12
0 4
7 10
4 10
5 10
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
A.EX A.EX A.EX A.EX E.CG E.CG E.CG E.CG J J J J J J L.CG L.CG L.CG L.CG
B.CG CG CG CG
C.EX EX EX EX EX EX EX
D
F
G.CG CG CG CG CG
H
I.EX EX EX EX EX EX EX
K.CG CG CG
M.EX EX EX
Conf. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
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Cost
• Overall cost: £72k• Task B and M crashed: £5K• Overall cost: £77k
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OverlappedTasks or fasttracking
Shortenedduration thrucrashing
Original schedule
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Activity Preceding Duration Resources1 A Start 2 42 B A 1 2 23 C A 1 3 24 D A 1 5 35 E B 2 2 26 F B,C, D 2, 3, 4 4 37 G D 4 6 48 H E 5 4 29 I E, F 5,6 2 2
10 J F, G 6, 7 4 311 K H, I , J 8, 9, 10 2 2
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A.2.4
B.2.2
C.3.2
D.5.3
START
E.2.2
F.4.3
G.6.4
H.4.2
I.2.2
J.4.3
K.2.2 END
0 2
2 4
2 5
2 7
4 6
7 11
7 13
6 10
11 13
13 17
17 19
17 19
13 17
15 17
13 1711 13
7 13
9 13
2 7
6 9
7 9
0 2
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
A4 A4 D3 D3 D3 D3 D3 G4 G4 G4 G4 G4 G4 J3 J3 J3 J3 K2 K2
B.2.2 B2 B2
C.3.2 C2 C2 C2
E.2.2 E2 E2
F.4.3 F3 F3 F3 F3
H.4.2 H2 H2 H2 H2
I.2.2 I2 I2
4 4 7 7 7 5 3 9 9 9 9 6 6 3 3 3 3 2 2
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
A4 A4 D3 D3 D3 D3 D3 G4 G4 G4 G4 G4 G4 J3 J3 J3 J3 K2 K2
B.2.2 B2 B2
C.3.2 C2 C2 C2
E.2.2 E2 E2
F.4.3 F3 F3 F3 F3
H.4.2 H2 H2 H2 H2
I.2.2 I2 I2
4 4 7 7 5 5 5 7 7 7 7 6 6 5 5 5 5 2 2
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Task No. TaskPredecess
or Resources
Duration Cost in k£
Normal Crash Normal Crash
1 Start None None 0 days 0 day 0 0
2 A Start 4 workers 2 days 1 day 8 12
3 B Start 1 Excavator 5 days 3 days 25 30
4 C A 1 Concrete Gang 4 days 3 days 24 36
5 D A, B 1 Concrete Gang 3 days 2 days 20 26
6 E C, D 1 worker 3 days 2 days 3 4
7 F D 3 workers 6 days 4 days 18 25
8 G E 1 Joiner team 4 days 3 days 16 20
9 H F 4 worker 2 days 1 day 8 11
10 I F 1 Joiner team 3 days 2 days 4 6
11 End G, H, I Milestone 0 days 0 day 0 0
1 excavator, 1 concrete gang, 1 joiner team and 4 workers
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£142K
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
B D F I
1EX 1CG 3L 1J
A2.4L 4L 4L
C.4.1.CG CG CG CG CG
E.3.1L L L L
G.4.1J J J J J
H2.4L 4L 4L
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Gantt Chart• Visual scheduling tool• Graphical representation of information in WBS• Show dependencies between tasks, personnel,
and other resources allocations• Track progress towards completion
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Building a Gantt Chart
• Dependencies: Show dependencies between activities with arrows– E.g., activity 2 cannot start until activity 1 is complete
Activity 1
Activity 2
Milestone
Time Frame: day 1 day 2 day3… day 23
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9 ideas of project excellence pex• Project Management: What is the project like? How is it managed?• Project Results: What does the project achieve? What comes out of it?• Customer Satisfaction:
– customer = king, customer decides on quality perception– understand customer needs and wishes.
• Employees’ development and participation– The complete potential of employees can only be released in an
atmosphere of confidence and openness.• Partnership with suppliers: Confidence and cooperation• Leadership• Ethics and social responsibility• Processes and facts: Activities are conducted systematically as processes• Results: To obtain lasting outstanding results, the expectations and
demands of all parties involved have to be well-balanced.
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Economic viability of energy projects
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Cost estimation
1. Exergy cost Analysis Evaluation of the cost for each stream Internal cost/ not market cost
2. Parametric estimation Based on historical data Mathematical modelling of available key features
3. Factored Cost estimate/Bottom-up approach Work breakdown structure Allocation of costs to individual elements
4. Analogous system estimate/Top-down approach Case based approach/inferential cost estimation of the entire system Comparison and extrapolation Cost adaptation and optimisation Cost breakdown
5. Vendor quotes Costs are obtained from vendors.
6. Cost scaling Factors used to scale up/down costs
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Factored cost estimation
• Costly: significant effort (time/money) required• Insight into major cost contributors.
• Relationships among cost elements
• Not responsive to "what if" requirements
• Possibility to forget important elements
),(1 1 111
ji
m
j
n
i
m
jij
k
llljj
n
iii prhqprbc
Investment costs + fixed engineering costs + Soft costs + variable engineering costs
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• Based on actual historical data• Relies on extrapolation and expert judgement• Relies on single data point• Difficult to identify appropriate analogues• Quick way of estimation• Readily understood• Select adaptation method• Combined with Parametric and scaling methods • Complexity factors (CF)
• Assess the complexity of the new subsystem compared to that of the selected analogues
• Make a quantitative judgment for a value of the complexity factor
Analogous System Estimate
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Cost scaling (CS)Cost scaling (CS)
YBYB
YAYA C
I
IC
•CYA = Cost in year A
•CYB = Cost in year B
•IYA = Cost index for year A
•IYB = Cost index for year B
B
S
B
AA CC
•CA = Cost at capacity A
•CB = Cost at capacity B
•A = Equipment or plant capacity A
•B = Equipment or plant capacity B
•S= Scaling factor
(Values can be found: Haselbarth, Galagher)
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Building cost index
• Steel frame construction cost index• Concrete frame construction CI• Brick construction CI• Labour cost index• ENR (Engineering News Records)
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Estimating Building costs: Calin M Popescu et al.
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The time value of Money
• Devaluation impacts– Time changes the value
of money
• Inflation rate (external growth)– Cost of good increases
• Net present value– Discounted cash flow
niFP
1
1
ni
FP1
1
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𝐼𝑛𝑐𝑜𝑚𝑒=(8760×𝑃𝑜𝑤𝑒𝑟×𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑓𝑎𝑐𝑡𝑜𝑟 ×𝐵𝐸𝑆𝑃 )+𝑀𝑖𝑠𝑐 .
𝐸𝑥𝑝𝑒𝑛𝑑𝑖𝑡𝑢𝑟𝑒𝑠=𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒𝑂∧𝑀+ 𝑓𝑖𝑥𝑒𝑑𝑂∧𝑀+𝑖𝑛𝑠𝑢𝑟𝑎𝑛𝑐𝑒+ 𝑓𝑢𝑒𝑙𝑐𝑜𝑠𝑡
Economic feasibility of an energy project
𝑇𝑜𝑡𝑎𝑙𝐷𝑖𝑟𝑒𝑐𝑡 𝑃𝑙𝑎𝑛𝑡𝑐𝑜𝑠𝑡=∑𝑖=1
𝑘
𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡𝐶𝑜𝑠𝑡+𝑖𝑛𝑠𝑡𝑎𝑙𝑙𝑎𝑡𝑖𝑜𝑛𝑐𝑜𝑠𝑡𝑠
𝐸𝑛𝑔𝑖𝑛𝑒𝑒𝑟𝑖𝑛𝑔𝑎𝑛𝑑𝑝𝑟𝑜𝑐𝑢𝑟𝑒𝑚𝑒𝑛𝑡 𝑐𝑜𝑠𝑡=𝑇𝐷𝑃𝐶+𝑖𝑛𝑑𝑖𝑟𝑒𝑐𝑡 𝑐𝑜𝑠𝑡𝑠
𝑇𝑜𝑡𝑎𝑙 𝑝𝑙𝑎𝑛𝑡𝑐𝑜𝑠𝑡=𝐸𝑃𝐶+𝑐𝑜𝑛𝑡𝑖𝑛𝑔𝑒𝑛𝑐𝑖𝑒𝑠+𝑂𝑤𝑛𝑒𝑟 ′ 𝑠𝑐𝑜𝑠𝑡𝑠