No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under section 107 or 108 of the 1976 States Act United Copyright Clearance, without the prior written permission of the Publisher, or authorization by payment of the appropriate fee per copy to the Copyright Clearance Center, Inc., 222 Rosewood Drive, Danvers, MA or fax to web at www. .copyright.com. Limitation of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in the preparation of this book, they make no representation or warranty as to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose.
Bidding, Tenders, and Contracts 187
Project Life Cycle for Design Professional Project Life Cycle for Construction Manager Keep Commissioning Agent Services.
Project Risk Management 297
Quiz for Project Management 325
This book focuses on the application of practical tools and methods that are frequently and successfully used in project management for industrial projects. This book covers all project management topics from the perspective of industrial projects.
Introduction
Resource management is the most important area to be controlled by the project manager and team member. Chapter five also provides the key to understanding resource management for the project manager and team member.
Project Management
The Principle of Project Management
This should help clarify the difference in the perspective of the project manager and the operations manager. The operations manager, on the other hand, never wants daily production to stop and cannot dream of stopping work—unlike the project manager's goal of overall task completion.
Project Characteristics
The emphasis is on the owner's requirements and his expectations from the project. It gives the project manager the impetus to learn to work in changing circumstances as the nature of the project changes.
Project Life Cycle
- Initiation of the Project
- Feasibility Study
- Feed (Preliminary) Engineering
- Detail Engineering
- Decision Support Package
- Design Management
- Execution P h a s e
- Commissioning and Startup
In addition, the project leader draws up this document under the guidance of the project sponsor. The importance of this phase depends on the nature and size of the project itself.
Is this Project Successful?
The work will be a list of the parts that need to be repaired from the contractor, such as a plumbing system, paint and so on. This phase takes a period depending on the size of the project and can extend to months.
What is the plan and actual execution time?
You may see a tall building and think the project seems successful, but the project management is also successful.
What is the actual cost and budget?
Is the project performance according to the required specifications?
- Project Management Goals
Project integration management 2. Project scope management
- Project Human Resource Management
- Project Management Tasks
- Define the Project Target
- Define the Scope of Work
- Define the Time Frame
- Define the Available Resources
- Define the Cost
- Evaluate the Master Plan
- Accept the Master Plan
- Schedule Follow Up
- Cost Follow up
- Comparing Between Actual Work and Master Plan Cost
- Performance Evaluation
- Project Manager Skill
Creating a good organization, according to the needs of the project and the needs of. Therefore, the behavior of the project manager should be flexible according to the variables of the project.
Economic Risk Analysis
- Introduction
- Project Cash Flow
- To measure the return of the project and liquidity over the work of the project
- To calculate economic return by the net present value 3. To calculate the risk assessment of the project NPV
- To reduce taxes on the life of the project
- Depreciation Methods
- M e t h o d of N e t Present Value ( N P V )
It is calculated as a function of the volume of output produced by the project multiplied by the price for that product. In each of these cases, a delay can be expected between the technical completion of the project and the initial revenue stream.
Minimum Internal Rate of Return (MIRR)
Let the NPV be equal to zero so that it is calculated by the trial and error method. By knowing the NCF and setting the NPV equal to zero, the value of D emerges as the expected rate of interest that the company, organization, or individual investor will earn after implementing the project. This number is determined after studies and many surveys specific to each country according to the description of the political, social and economic condition of that country.
The internal minimum return number is a secret and confidential number for every company, as these numbers determine their investment.
Payout Method
Economic Risk Assessment .1 Probability Theory
- Probability Distribution of Variables
- Distribution for Uncertainty Parameters
- Choosing the Appropriate Probability Distribution
In the results of previous tests, we find that the samples have results less than or equal to 280 kg/cm2, which is about 2% of the number of tested samples. Table (3.11) shows the values of the area under the curve by knowing the value of z from the above equation. Figure (3.8) shows the area under the curve when you add or subtract the value of the standard deviation from the arithmetic mean.
But in the case of the last example, the number of drilling wells is between 1 and 25 wells.
Decision Tree
We find that the probability of rolling a 6 is one-sixth, but the expected value of the payout is £166.7, which is greater than zero (the expected value of risk). Therefore, our player found the expected value to be greater compared to the other player's view. By multiplying the probability by the present value (PV), one gets the expected value (EV).
If you add all the values together, you get the expected value of the project, which in this case is $4.6 million.
Monte-Carlo Simulation Technique
The distribution type of the random variable is selected from the various probability distributions provided by the program. The simulation model contains all the input data of the deterministic parameters, the random variables and the equations. The final output leads to displays by software at the end of the simulation and contains the statistical parameters of the variable Z, which describes the limit state equation of the cost and time.
It can also provide the frequency distribution of the value of outcomes of Z and determine the probability of increasing the cost to the limit of the budget.
Risk Adjusted Value (RAV)
By definition, the security equivalent is the value that a manager would simply be willing to accept in exchange for the risky investment. And the degree of risk aversion depends on two basic components: the wealth of the firm (ie, freedom from bankruptcy) and the level of the budget. The RAV also depends on the estimated value relative to the distribution of the NPV score.
If the mean value of the NPV that is calculated from the Monte-Carlo simulation is equal to 10 million dollars, then one standard deviation illustrates the dominance of the dispersion term, since.
Time Planning
Introduction
- Plan Single Point of Accountability (SPA)
- Starting the Plan
- Work B r e a k d o w n Structure (WBS)
In the planning process, everything that is to be achieved by the project is planned in accordance with the order and manner of the overall execution of the project. Now you have the main phases of the project and all the major phases have been agreed upon by the members of the project. There is a place to start at the beginning of the largest plaza in the north.
Having a common format across all project elements results in simpler cost tracking and forecasting.
Responsibilities of the Team
The project team should brainstorm the best way to manage and implement the project by reviewing the project execution methodology along with the order of commissioning. The WBS should be included in the project execution plan early in the selection phase and reviewed throughout to define and execute. As a project or construction manager, you face problems during a project and you need to solve them within a precise time frame.
Providing direct support from the project manager or official project sponsor at all key moments.
Expected Activity Time Period
Calculating the Activity Time Period
The capacity of 1 bulldozer is 120 m3/hour, and the capacity of 1 loader and 2 trucks is 75 m3/hour. Thus, the excavation time is approximately 9 days, and the removal of the remains approximately 15 days, bearing in mind that the number of working hours in the day when preparing the schedule is only 7 hours. Alternatively, after the excavation is complete, the pouring of ordinary concrete can begin, so that it will begin after 9 days, since there is no need to wait for the pouring of concrete until all the waste has been removed from the site.
Time Schedule Preparation
- Gantt Chart
- Arrow Diagram Method (ADM)
- Precedence Diagram Method (PDM)
- Critical Path Method (CPM)
- Program Evaluation a n d R e v i e w T e c h n i q u e (PERT)
- Example
- Application of the PERT Method
An activity's float is the amount of time the activity can be delayed without causing a delay to the project. The activities that are zero fluid are the activities that cannot be delayed without delaying the completion of the project. The external environmental factors surrounding the project may cause a deviation in the times for the planned activities.
The sum of all time periods on the critical path presents the average time period for the project.
Planning Overview
From the probability distribution tables, the probability that the project completion period is more than 26 days is 5%. The probability that the execution time for the project is equal to or less than 26 days is 95%, as shown in Figure (4.13). The planner plays a key role in controlling the project's outcome and flagging potential bottlenecks and problems for the project manager.
The main skill of the planner is the art of communicating with the project management team, cost engineer, construction supervisor and contractor.
Resource Management
Introduction
Project Organization
- Types of Organization
- Selecting the Best Organization
After the project ends, no further responsibility for the careers of individuals working on the project passes to the organization. There is strong communication between project members and between functional departments in the head office. The potential for conflict lies in the overlap between the project manager and the directors of different departments.
Determine which parts of the project business groups will act on and which will work with the others.
Based on full knowledge of the disadvantages and advantages of different organizations, one can select
- Roles and Responsibilities of the Project Manager
- Project M a n a g e r as a Leader
- Administrative Organization for Total Quality Management
- Team Member Selection
- Managing the Team
- Allocate Resources to Project Plan
- Example
- Relation Between Project Parties
- Document and Information Transfer
- Information Transfer
- Quality Control in the Design Phase
- Inputs and Outputs of the Design Phase
- Design Verification
- Change in the Design
- Approval of the Design
The ability to direct each project member to achieve project goals. Quality control occurs in the administrative organization and in its relations with the project manager and team members. This shows the form of information flow that the project manager receives from the owner.
The responsibility of the project manager and planner engineer is to follow up on actual performance of the relevant departments.
Cost Management
Introduction
Usually, cost estimates are calculated and verified in more than one phase of the project. This is because, with industrial facilities, a large part of the project construction cost depends on the equipment and machinery used in manufacturing. After the front-end engineering design (FEED) is completed, the accuracy of the estimated cost will be ±30%.
Based on the discussion above, the accuracy of the cost estimate is very critical and vital to the success of the project and becomes more critical over time.
Cost Types
- Cost Estimate
- Steel Structure Cost Estimate
- Detailed Cost
- Cost Estimate to Project Control
From the owner's perspective, the general tendency is to estimate costs based on the project's design and construction drawings. From figure (6.1) one can determine the proportions of the costs of main elements for the construction of a steel structure. The detailed cost estimate will be determined based on the detailed construction drawings of the project and the completed project.
Most construction companies have a procedure to calculate the construction cost of the project and develop appropriate pricing for the tender.
Economic Analysis of Project Cost
- Work Breakdown Structure (WBS)
- Organization Breakdown Structure (OBS)
- OBS/WBS Matrix
- Work Packages
The price of the contractor submitted with the offer with the schedule is determined by the estimate and is used to control costs in the implementation of the project. The resulting "breakdown structure" reveals all the elements of the project that must be considered during execution. The following table gives the values of planning costs in an engineering project for a period of 12 months.
From the previous table, calculate the cost control parameters after 6 months from the start of the project.
