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027 PROJECT MANAGEMENT & BUSINESS PLANNING PROCESS. Dr f Dejahang ( BSc CEng, BSc (Hons) Construction Mgmt, MSc, MCIOB, PhD). PROJECT MANAGEMENT BUSINESS PLANNING PROCESS. Building and civil engineering projects carry uncertainty and risk.
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027 PROJECT MANAGEMENT &BUSINESS PLANNING PROCESS Dr f Dejahang (BSc CEng, BSc (Hons) Construction Mgmt, MSc, MCIOB, PhD)
PROJECT MANAGEMENT BUSINESS PLANNING PROCESS • Building and civil engineering projects carry uncertainty and risk. • 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.
PROJECT MANAGEMENT BUSINESS PLANNING PROCESS • All projects should therefore arise from a need to fulfil two main factors such as: • Specific Strategic Objectives • Achieve competitive advantages
PROJECT MANAGEMENT BUSINESS PLANNING PROCESS The business planning process has four essential steps: Remember ‘MOST’ Mission Statement • States the reason for the organisations existence; • Initiates the business planning process;
PROJECT MANAGEMENT BUSINESS PLANNING PROCESS Objectives are: • The position; • In quantities terms; • In qualitative terms; • that the organisation wishes to reach; • Must be in a stated period of time.
PROJECT MANAGEMENT BUSINESS PLANNING PROCESS Strategies to consider: • Design to achieve the objectives such as: • A set of budgets • Clear goals • Achievable targets • Statement for needs.
PROJECT MANAGEMENT BUSINESS PLANNING PROCESS Covering all aspects of the business such as: • People • Premises • Organisations • Capital • Cash.
PROJECT MANAGEMENT BUSINESS PLANNING PROCESS Tactical plans Individual plans to achieve items such as: • Defined goal • Operations and Projects The plan describes how the organisation will achieve each element of the strategic plan.
PROJECT MANAGEMENT BUSINESS PLANNING PROCESS Another way to look at Business plan • Remember ‘COST’ • C Commitment by all concerned to the project • O Objectives being clear to all-Scope and Mission • S Strategy to meet the objectives-Milestone Plan • T Tactical-activities found necessary to achieve to each milestone and solve Problems
FUNCTION OF PROJECT MANAGEMENT FUNCTION OF PROJECT MANAGEMENT • The basic Management Principles described by Henri Fayol are: • To plan • To organise • To co-ordinate • To control • To lead
FUNCTION OF PROJECT MANAGEMENT The function of Project Management in more detail are: • To establish the clients objectives and priorities issues such as: • brief formulation; • client organisation; • approval powers.
FUNCTION OF PROJECT MANAGEMENT Design Project Organisation Such as: • organisation chart; • decision point; • Relationships; • feed back.
FUNCTION OF PROJECT MANAGEMENT Integrate Client into the project • client organisation integrated into project organisation; • people responsibilities; • decision processes.
FUNCTION OF PROJECT MANAGEMENT Selection and appointment of Contributors • identify contributors; • identify input required; • identify when input required and duration; • record types of appointment.
FUNCTION OF PROJECT MANAGEMENT Full brief formulation process • Establish need, budget, cost plan, cost limit, procurement route. • Start value engineering. • Programme formulation. • The overall project programme.
FUNCTION OF PROJECT MANAGEMENT The phase or stage programme • The design programme. • The procurement programme. • The construction programme. • The commissioning programme.
FUNCTION OF PROJECT MANAGEMENT Activation of the relationships between contributors • Ensure contributors are brought in and integrated into the project organisation. • Ensure contributors can perform as required.
FUNCTION OF PROJECT MANAGEMENT Establish appropriate information and communication structure by: • establishing a full project procedures manual containing; • description of formal communication cannel;
FUNCTION OF PROJECT MANAGEMENT • change requests and instructions; • drawings framework; • co-ordination project information system; • Address index of all contributors.
FUNCTION OF PROJECT MANAGEMENT Convening and chairing meetings of contributors at all stages such as: • Judging the need and frequency; • Who needs to attend; • Agenda setting; • Minutes and action.
FUNCTION OF PROJECT MANAGEMENT Monitoring and controlling • Pro-active role; • Obtaining feedback and under taking analysis; • Testing outcomes to objectives and taking corrective action; • Forecasting; • Integrating and controlling contributors.
FUNCTION OF PROJECT MANAGEMENT Managing completion • Commissioning programme; • Training of user; • As built drawings-user maintenance manuals; • Strategy for occupation or disposal. Evaluation of outcomes • Success in achieving objectives; • The final feedback loop;
FUNCTION OF PROJECT MANAGEMENT SYSTEMATIC APPROACH TO ANY PROJECT • Royal Institute of British Architects (RIBA PLAN OF WORK)
RIBA PLAN OF WORK Appraisal • Carry out studies to determine the feasibility of the Client's requirement. • 2A Review with client alternative design and construction approaches and the cost Implications. • 2B Provide information for report on cost implications.
RIBA PLAN OF WORK B Strategic Brief • Receive strategic brief prepared by the client. C Outline Proposals 1 Commence development of Strategic Brief into Project Brief 2 Prepare Outline Proposal 3A Provide an approximation of construction costs. OR 3B Provide information for cost planning.
RIBA PLAN OF WORK • 4 Obtain Client approval to Outline Proposals and approximate construction cost. • 5 Co-operate with Planning Supervisor where applicable.
RIBA PLAN OF WORK D Detailed Proposals 1 Complete developments of Project Brief. 2Develop 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.
RIBA PLAN OF WORK • 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.
RIBA PLAN OF WORK E Final Proposals • 1 Design Final Proposals from approved Detailed Proposals. • 2A Revise cost estimate. • 2B Provide information for revision of cost estimate. • 3 Consult statutory authorities on developed design proposals.
RIBA PLAN OF WORK • 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.
RIBA PLAN OF WORK F Production Information 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
RIBA PLAN OF WORK • 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 • 3B Prepare and give building notice under building acts and/or regulations (not applicable in Scotland).
RIBA PLAN OF WORK • 4 Prepare further production information for construction purposes. G Tender documents • Prepare and collate tender documents in sufficient detail to enable a tender or tenders to be obtained. • Where applicable pass final information to Planning Supervisor for pre-tender Health and Safety Plan.
RIBA PLAN OF WORK • 3A Prepare pre-tender costs. OR • 3B Provide information for preparation of pre-tender cost estimate H Tender Action 1 Contribute to appraisal and report on tenders negotiations. 2 If instructed revise production information to meet adjustments in the tender sum.
RIBA PLAN OF WORK J Mobilisation 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.
RIBA PLAN OF WORK • 2 Provide further information reasonable required for construction. • 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.
RIBA PLAN OF WORK • 5 Give general advice on operation and maintenance of the building. L After Practical Completion. 1 Identify defects and make final inspections. 2A Settle Final Account. OR 2B Provide information required by others for settling final account.