Ministry of Transport URRAP-Training of Trainers for Contractors and Coordinators

1. Ministry of Transport URRAP-Training of Trainers for Contractors and Coordinators Project Management and Planning DAY 1- Friday August 02, 2013

2. Outline • Introduction • Overview of the Construction Industry • Project Management Framework

3. Outline • The Role of Effective Project Manager • Leadership and Human Resource Management

4. Outline • Contemporary themes of Construction planning • Scheduling • Resourcing • Monitoring and Control • Cash flow forecast and Control

5. Introduction • The prevailing facts of the road sector • Cost overrun • Time overrun • Quality reduction

6. Introduction

7. Introduction • Considerable shortcomings are related with failure of the contractor’s performance in all over project management (Abd. Majid and McCaffer, 1998, Frimpong et al. 2003, Assaf and Al-Hejji., 2006).

8. Introduction • Inefficiencies and ineffectiveness are part in day today activity in the construction sites • weak site organization; • Improper construction method; • Work discontinuity; • Rework: 10-15% contract value; • Improper resource allocation( Human, material, equipment) and under-utilization; • Poor cash flow: not to utilize advances properly, not to raise sufficient payment; • Attitude: not being self-contained…in identifying material sources, inaccurate setting outs, incomplete approval requests, resistance for changes…etc.

9. Overview of the Construction Industry

10. Overview of the Construction Industry • High work demand in the market… 100s of thousands Kms • Less fragmented ( Specialized firms are growing so slowly) • Loose coupling between the industry and the supply chain • developing financial market • Relay on importation

11. Overview of the Construction Industry • The Public sector is the major Client • Traditional procurement approach is predominant • Limited administration capability in most of the organizations, both private and public • Less focus on Research & Development

12. Overview of the Construction Industry • Local Contractors and Consultants are taking the major share of the construction market • Limited financial and technical capability • Less focus on quality delivery • Less focus on organizational learning

13. What is a project ? A project is a temporary endeavour undertaken to create a unique product, service, or result. (Source: Source: Project Management Institute ,PMIBoK)

14. What is Project Management ? Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements. (Source: Source: Project Management Institute ,PMIBoK)

15. The Three Main Pillars of Project Management

16. .... and emphasise on people ! “Projects do not succeed just by assiduous adherence to a mechanistic process” (BS 6079 Part 1: Guide to project management)

17. Triple Constraints of Projects Project Management ! Time Start End Project Management What happens if the plan was based on the wrong assumptions Cost Scope

18. Another View of the Triple Constraints Cost ProjectBudget Contingency Scope Contingency Time

19. Why do we have projects ? • Profitability • Market share • Competitive advantage Business Goals Outcomes Projects Outputs Benefits

20. Projects Take up Investment • The Firm: An organization that bring together different factors of production such as labor, land and capital to produce a product or services which it hoped can be sold for a profit Firm Entrepreneurs: Profits are a rewards of the Entrepreneurs to take risks Managers : hire ,fire , organize the business Workers

21. Projects Take up Investment • Normal profit : minimum level of reward to keep/attract the entrepreneur in the particular economic activity Profit = total revenues- total cost • Economic profit : considers alternative use of all resources Economic profit= total revenues – total opportunity cost of all inputs used Economic cost= explicit cost and implicit cost

22. Projects take up investment • Opportunity cost of Capital : concerns the rate of return on the capital as all other business of similar risk are willing to pay Degree of risk and difficulty involved • Opportunity cost of Labor: concerns rate of return on the opportunity cost of time of doing similar job • Opportunity cost of land: concerns the rate of return on the capital as all other business of similar risk are willing to pay

23. Projects Take up Investment Returnon Investment Investment Projectduration Start End Goal = Finish As Soon As Possible Goal of the firm: Profit maximization is a target

24. Project Management Framework Project Procurement Management Project Integration Management Project Time Management Project Scope Management Project Risk Management Project Communication Management Project Cost Management Project Human Resource Management Project Quality Management

25. Project Management Framework– Construction Extension

26. ProjectScope Management Processes required to ensure that the project included all the work required and only the work required to complete the project

27. Project Manager Is the single integrative point of responsibility for the project

28. The Role of Project Manager The planning and coordination of a project from inception to completion on behalf of a client, to deliver the client's objectives in terms of Function, Time and Cost

29. Project Manager’s Responsibilities • Liaison with the client/sponsor • Develop and maintain project plans • Team leadership/Teambuilding ability • Cost effective work progress control • Cost control • Planning and technical decision making • Quality and safety management • Business and administrative aspects

30. Higher Order Objectives • Complete all projects efficiently & profitably • Balance long & short term priorities • Supply & allocate resources • Integrate multiple projects with other activities

31. Balance in Projects

32. Managing Clients • Agree project objectives – deliverables • Initial start up meeting • Interim reporting & reviews • Problem resolution • Manage the relationship • Under promise & over deliver • Always negotiate

33. Establish Client's objectives + priorities • Business aims • Project aims + scope • Priorities - quality, time, cost • Timescales • Understand uncertainty + risks

34. Design an Organisation Structure • participants • relationships • decision points, key + operational reporting • integrating + coordinating

35. Common forms of structure • Functional • Product based • Geographical • Divisionalised • Matrix

36. 1 Functional

37. 2 Divisional

38. 3 Matrix

39. 4 Teams

40. Selection + appointment of project team • Scope + terms of reference • Selection criteria • PM's own appointment • Appointment agreements • Procurement route

41. Develop brief for project team • translate client's objectives • state in terms of needs + outcomes • alternatives + evaluation • clarity + communication

42. Uncomfortable Facts • Left alone people will tend toward; • First come – first served • Enjoyable / familiar tasks first • Easy rather than difficult tasks • Simple vs complex tasks • Gain easy wins –short term rewards • Not favour releasing key resources / people • Provide the answer you want to hear

43. Establish Information and Communication Structure • Measurement of data + presentation • Communication channels • Meetings • Reporting mechanism

44. Facilitate the Decision Making • What? • By whom? • When? • At what Cost?

45. Question – in groups Reference the distirbuted ‘direction finder’, how would you apportion your time (%) on a project?

46. Projects – Direction Finder

47. P. O. L .C. MODEL Setting standards and assessing success in achieving objectives Establishing objectives & planning work PLANNING CONTROLLING ORGANISING LEADING Influencing and motivating team members in doing the work Organising people, materials and scheduling

48. Leadership involves: • Challenging the status quo • Inspiring a shared vision • Empowering others to act • Modelling the way • Motivating others

49. MOTIVATION FACTORS ENVIRONMENT • Working conditions • Interpersonal relations • Job Security • Salary • Status • Policy • MOTIVATORS • Recognition • Responsibility • Achievement • Advancement • Work itself • Growth

50. Empowered Individuals: • Take risks • Gain knowledge, and • Develop new skills