Project Management and Planning

PROJECT MANAGEMENT
What is a PROJECT?
A project is a temporary endeavour undertaken to create a
unique product, service or result.
Progressive elaboration is characteristic of projects that
accompanies the concepts of temporary and unique.
A project can create:

A product that can be either a component of another item or an

end item in itself.

A capability to perform a service (e.g., a business function that

supports production or distribution).

A result or document ( e. g., a research project)

Examples of projects
Developing a new product or service,
Performing a change in the structure, personnel or style of an
organization,
Developing or acquiring a new or revamped information system,
Constructing a building or an infrastructure,
Implementing a new business process or procedure.
What is Project Management?

Project management is the application of

knowledge, skills, tools and techniques to
perform project activities to meet the project
requirements.
Managing a project typically includes:

Identifying requirements,
Addressing the various needs, concerns and
expectations of the stakeholders as the projects is
planned and carried out,
Balancing the project constraints contrary to each
other including, but not limited to:
Scope
Quality
Schedule
Budget
Resources
Risk
Projects and Strategic Planning

A market demand (an oil company authorizes a project to build a

new refinery in response to chronic gasoline shortages)
An organizational need (a training company authorizes a project
to create a new course in order to increase its revenues)
A customer request (an electric utility authorizes a project to
build a new substation to serve a new industrial park)
A technological advance (software firm authorizes a new project
to develop a new generation of video games after the introduction
of new game-playing equipment by electronics firms)
A legal requirement (a paint manufacturer authorizes a project to
establish guidelines for the handling of a new toxic material)
Project Manager
Project manager is the one who is assigned by
project organization to achieve the tasks of project.
It requires understanding and application of
knowledge, tools and techniques perceived as best
practices.
For effective project management,
Knowledge (what the project manager knows about project
management)
Performance (the capability of performing project
management knowledge)
Personality (behavior, basic personal characteristics ,
leadership etc.)
Environmental Factors Affecting the
Project
Organizational culture
Standards proposed by state or private sector
Infrastructure
Available human resources
Human resource management
Company's business approval systems
Market conditions
Stakeholders' risk policy
Political atmosphere
Communication channels of the organization
Commercial databases
Project management information systems
Project
Project Life Cycle

Project Management Life Cycle

Project Phases from an idea to a product.

Concept and Feasibility

Design and Engineering
Procurement
Construction
Start-up and implementation
Operation and utilization
Life cycle of a construction project
 The following figure shows the ability to Influence Construction Cost Over
Time. The horizontal line of the figure shows the phases of a construction
project, vertical line shows the total construction cost and the influence of
the phases on the construction phases on the construction cost.
The effect level of phases on construction cost
At early stages of projects, (concept, design, feasibility studies, preliminary
engineering and design stages) the cost is small amount of total cost,
generally, it is composed of 10 % of total cost.

On the other hand, the decisions taken at the concept and preliminary design
stage can affect the 70% of total construction cost.

The costs occurred at the construction stage are the highest amount of total
cost of construction. The ability to decrease the total construction cost is
limited at this stage. Good planning and control can eliminate the unnecessary
costs, however it is very difficult to take the cost under the industry standards.

The costs emerged at the operation stage is directly related to the choices
about the quality standards. While the quality increases, the costs emerged at
the operation stage will decrease.
Concept and Feasibility

The construction projects are initiated due to arising demand.

The pre-project phase aims to identify all possible projects based

on the examination of needs and the possible options. This stage
is also sometimes referred to as initiation phase or idea phase.

There are three main subjects and their sub subjects considered at
this stage.
Analysis of concept.
Technical and economic feasibility studies
Environmental factor analysis
Phases of concept and feasibility
Concept analysis:
The initiation phase aims to sort out all the mentioned information to
identify some project concepts.
As many project concepts as possible are identified, and using some
selection procedure (such as the benefits for the organization that
intends to employ them) in line with the objectives of the organization,
several project concepts are selected.
The project concept phase of a new construction project is most
important, since decisions taken in this phase tend to have a
significant impact on the final cost.
It is also the phase at which the greatest degree of uncertainty about
the future is encountered.
The selected project concepts, then, are used as the inputs for the
feasibility phase.
Phases of concept and feasibility
Technical and economic feasibility studies:
This phase aims to analytically appraise project concepts in the
context of the organization, taking into consideration factors such as
the needs of the organization, the strategic charter of the
organization, and the capabilities and know-how of the organization.

With this information, the decision makers should be able to decide

whether or not to go ahead with the project concept proposed.
Some of the tasks related to pre-project phase
Assigning a task force to conduct preliminary studies for the proposed project
Studying the users requirements
Defining the technical specifications and conditions that determine the quality of the required
work
Studying how to secure funds to finance the project
Estimation of the project cost and duration
Approval of the project cost
Studying and determining the technical specifications of the materials
Studying the impact of the project on the safety and health of the community and environment
Establishing criteria for the selection of project location
Advising members of the task force (consultant, engineering, etc.) on the approved funds for
the project
Establishment of milestones for the project for review and approval
Describing the responsibilities and authority of project parties
Pre-establishing a system to prepare for change order procedures
Establishment of design criteria for structural specifications
Conducting a feasibility study of the proposed project
Who participates in concept and feasibility?

The owner, technical consultants, economists and financiers play

main role.

Engineers, architects, contractors etc. should also play active role.

The participants should provide specific feedback related to their
expert areas.
Concept stage of commercial buildings (such as a hospital);

In these projects;

The demand program of the project is prepared, the general

decisions are made by considering the disciplines serviced,
number of beds, and utilization purpose. In architectural
perspective, at concept stage, the layout of the project , best use
analyses, external view of the project, number of floors, and total
enclosed area are decided. The architects play the major role in
this stage.
Engineering and design
There are two phases;

Preliminary engineering and design

Detailed engineering and design

These phases are performed by the architects and engineers.

Preliminary engineering and design
The activities in this phase are carried out by an engineering
organization or an architect.
During this phase, the documentation for tendering and
contracting the physical construction or for procuring equipment
is prepared.
It involves performing basic design calculation, preparing tender
drawings, preparing design and material specification, etc.
The changes, if any, from the initial scope of work are recorded.
Regular design and specification review meeting is one of the
important features of this stage of the project.
Example of Preliminary project of a hospital
Detailed Engineering and design phase
Detailed design may be carried out in-house or through
contracting.
In some cases, such as item rate contract, it may be required to
carry out the detailed design before starting the tendering
process.
However, in some cases, such as design build contract or lump
sum contract, the tendering process can start immediately after
the completion of basic design and specifications.
Detailed Engineering and design phase
At this stage, the projects are divided into components and these
components are analyzed and designed.

The drawings in the detailed design screw plates show the

workers at the site how to construct these components exactly.
These are called as application projects.

At this stage, civil engineers, architects, mechanical engineers,

electrical engineers, chemical engineers, landscape architects and
interior designers are placed.
Procurement
There are two main concepts;

Tendering phase for selecting the main contractor and

subcontractors.

Procurement phase for procuring the required materials, equipment

and other resources. (Ordering, procurement, transportation etc.)
Tendering
Tenders are issued if it is decided to execute the project through
contracting.
The preparation of clear and precise documents is essential to
eliminate any dispute about scope of work at the contract stage.
The tender preparation includes preparing the specifications and
agreement conditions, preparing bill of quantities and estimating
the contract value.
It also includes issuing of tender document to the interested
applicants, holding meetings, receiving bids and evaluating them.
After the bids are evaluated, recommendations are made for the
successful contractor and approvals sought to place a contract,
and finally the contract is awarded.
Construction
This phase is the realization of the specifications and designs
developed at the design stage.

It requires the effective organization and coordination of all

required resources ( manpower, machine, material, money, time
etc.) throughout the construction.

The purpose of construction stage is the completion of the project

within the time, under the budget and according to the quality
stated in the designs and specifications.

This stage is managed by the contractors, subcontractors and their

teams, and it is controlled by the representatives of the owner.
Construction
Immediately after the contract is awarded, construction phase begins.

In cases where the detailed drawings and designs were not available as part of the tender
document, the contractor proceeds with the preparation of detailed design and drawings,
and follows it up with the construction.

In some cases, the preparation of detailed design and construction may proceed
simultaneously with milestone-wise deliverables for both design and construction.

After the construction work has started, the progress is closely monitored and regular
meetings held with the contractor to assess cost and schedule.

At this stage, the architects and engineers have important inspection duty, the inspection
can vary within the contract types and laws, however there is always inspection in the field.

The variations in cost, quality and schedule are noted and corrective measures are taken to
bring them to the desired level.
Start-up and implementation
In this phase, the major equipment are tested and commissioned,
and the constructed facility in totality is handed over to the client
for use.

Client issues approval of work and a completion certificate after

all the work has been checked and found to be in order.

Especially, the industrial projects require complex and time

consuming start-up phase.
Operation and utilization

During this phase, the responsibility of the materialized deliverable is transferred from the engineers, the
architects and/or the general contractors to the owners.

During this phase, the client or the end user makes use of the finished project. The performance of the
constructed facility is monitored at regular intervals, and maintenance at regular intervals is performed.

Once the project has lived its intended life, it is dismantled and disposed of. The entire cycle explained
under different phases is repeated.

Project function values depend on the targets selected, decisions made and applications used at the
previous phases.

In addition, costs of maintenance, rehabilitation and operation depend on the decisions and applications
from concept stage to construction stage. It can increase or decrease according to the quality of them.
Project Management Processes
Initiating processesauthorizing the project or phase.
Planning processesdefining and refining objectives and
selecting the best of the alternative courses of action to attain the
objectives that the project was undertaken to address.
Executing processescoordinating people and other resources to
carry out the plan.
Controlling processesensuring that project objectives are met by
monitoring and measuring progress regularly to identify
variances from plan so that corrective action can be taken when
necessary.
Closing processesformalizing acceptance of the project or phase
and bringing it to an orderly end.
Project Management Life Cycle
Initiating process group
Those processes performed to define a new project or a new phase
of an existed project by obtaining authorization to start the project
or phase.
The initial scope is defined and initial financial resources are
committed.
Internal and external stakeholders are identified.
The influence and objectives of the project stakeholders are
identified.
Feasibility analysis is performed by considering the availability of
the resources and applicability of the objectives of the stakeholder.
Stakeholder= all the people and organizations that are affected by
the existence of the project and projects outcomes.
Initiating process group

The Initiating Process Group consists

of the following steps:

Collect Project Information.

Organizational Commitment.
Team Development.
Purpose of Initiation Process
To commit the organization to a project or phase
To set the overall solution direction
To define top-level project objectives
To secure the necessary approvals and resources
To validate alignment with overall business objectives
To assign a project manager
Project Proposal Content
Scope definition
Project objectives and benefits
Project deliverables
Acceptance criteria for project
Assumptions
Constraints
Role definition and key staff
High level schedule, budget
Acceptance
Planning process group
Consists of those processes performed to establish the scope of
the project, refine the objectives and define the course of action
required to achieve those objectives.
The multi-dimensional nature of project management creates
repeated feedback loops for additional analysis.
Due to the significant changes occurring throughout the project,
the planning processes are revisited to make modifications on the
plans developed.
Planning process is iterative and ongoing processes.
Planning
A plan is a formulated and especially detailed method by which a thing is
to be done (Oxford, 2002).
Planning is the determination and communication of an intended course
of action incorporating detailed methods showing time, place and the
resources required (CIOB, 2011).
Planning is the creative and demanding mental activity of working out
what has to be done, how, and when, by whom, and with what, i.e. doing
the job in the mind (Neale and Neale, 1989).
Planning is a decision making process performed in advance of action
which endeavors to design a desired future and effective ways of bringing
it about (Ackoff, 1970).
Planning is the production of budgets, schedules, and other detailed
specifications of the steps to be followed and the constraints to be obeyed
in project execution (Ballard and Howell, 1998b; Ballard, 2000).
Planning
Planning precedes execution. (You plan before you commence work.)
Planning is a process and it is important to complete all the stages in the
process.
Planning is more than an aid to the successful completion of the project; it
is an essential part of the project.
Planning is a creative and demanding mental activity.
To plan you need to make decisions.
The objective of planning is to ensure that things happen successfully.
The output of planning comprises schedules and budgets and information
for others to use.
The results of planning have to be communicated to others.
Having set in place plans it is necessary to monitor progress and, in the
event of the unexpected or failing to achieve expected performance, re-
plan.
Types of plans

Strategic plans

Operational plans

Co-ordinating plans
Planning
Planning requires decisions concerning:

The overall strategy of how the work process is to be broken down

for control
How control is to be managed
How design will be undertaken and by whom
The methods to be used for construction
The strategy for subcontracting and procurement
The interfaces between the various participants
The zones of operation and their interface
Maximizing efficiency of the project strategy with respect to cost and
time
The management of risk and opportunity (CIOB, 2011)
Schedule
Having reached these decisions, scheduling is the process by which
plans are prepared and presented to all those involved in the
project. Scheduling involves answering new questions and making
new decisions such as:

When will the work be carried out?

How long will it take?
What level of resources will be required?
Example: Prepare a plan for a vacation

Before going to a vacation, firstly the following questions should be

answered.
To where? (Antalya)
How to go and where to stay? (Airway and
Who will do? (4 kiilik bir Hotel)
aile)
When? ( 1 November 2016)
How long? (7 days)
How much is the budget? (3 000 TL)
Plan and schedule

Date Activity
01.09.2016 Flying to Antalya
01.09.2016 Checking
01.09.2016-05.09.2016 Spending time in Hotel
06.09.2016 Visiting Alanya
07.09.2016 Spending time in Hotel
08.09.2016 Flying back to Istanbul
Budget
Flying to Antalya 200 TL
Otel price 7x200 TL= 1.400
Transportation to Alanya= 30 TL
Return back Istanbul 200 TL
Spending outside hotel 300 TL
Overhead cost 300 TL

Total budget 2.430 TL

Realized

Date Activity
01.07.2015 Flying to Antalya
01.07.2015 Check-in
01.07.2015- 03.07.2015 Spending Time in Hotel
04.07.2015 Yacht Tour
05.07.2015 Flying back to Istanbul due to illness
Realized spending
Flying to Antalya 200 TL
Otel demesi 7x200 TL= 1400 (No refund is possible)
Transportation to Alanya= ptal
Returning back to Istanbul (extra cost) 300 TL
Spending outside hotel 100 TL
Yacht 300 TL

Realized cost= 2.300 TL

Planned vs. Realized
Planned vs. spent time 7 days vs. 5 days

Schedule has changed dues to the new and eliminated

activities

Planned vs. realized budget 2.430 vs. 2.300

Example: Prepare a plan for a vacation

Before going to a vacation, firstly the following questions should be

answered.
To where? (Antalya)
How to go and where to stay? (Airway and
Who will do? (4 kiilik bir Hotel)
aile)
When? ( 1 November 2016)
How long? (7 days)
How much is the budget? (3 000 TL)
Planning process group

The Planning Process Group

consists of the following steps:

Scope Definition.
Activity Definition.
Schedule Development.
Resource Planning.
Cost Planning.
Project Plan Development.
Baseline Creation.
Executing Process Group
Consists of those processes performed to complete the work
defined in the project management plan to satisfy the project
specifications.
This process group involves coordinating people and resources, as
well as integrating and performing the activities of the project in
accordance with project management plan.
Executing Process Group

The Executing Process Group

consists of the following steps:

Information Distribution.
Project Plan Execution.
Monitoring and controlling process group
Consists of those processes required to track, review, and regulate
the progress and performance of the project; identify any areas in
which changes to the plan are required; and initiate the
corresponding changes.
The key benefit of this process group is that the project
performance is observed and measured regularly and consistently
to identify variances from the project management plan.
Controlling Process Group

The Controlling Process Group

consists of the following steps:

Analysis and evaluation of the

project.
Recommendation of necessary
actions.
Change the project with the
realistic data.
Re-estimation of the schedule.
Convey of the performance of the
project to the project team.
Closing process group

Consists of processes performed to finalize all

activities across all Process groups to formally
close the project or phase.
Project Closing Elements:
Administrative Close Out Generating, gathering,
disseminating information to formalize phase or project
completion, including evaluating the project, compiling
lessons learned for use in planning future phases or projects
Contract Close Out Completion and settlement of the
contact including resolution of any open items.
Contract Close Out Activities:

Verify product/service acceptance

Update records based on final contract results

Archive contract documentation of completed work results

Notification to end-user of contract completion

Obtain formal acceptance

Administrative Close Out Activities:
Collect all project records

Document performance measures resulting from performance reviews, variance,

trends and earned value analysis

Formalize acceptance/signoff of the product by the sponsor, client, customer

Archive project documentation

Verifying project results in preparation for formal acceptance

Create and Complete Punch List

Conduct and Document the lessons learned

Perform final appraisal review of team members

Closing Process Group

The Closing Process Group consists of the

following steps:

Contract Closeout
Administrative closure
Project Closeout
Project Management Life Cycle Methods
The Project Management Knowledge Areas

Project Integration Management

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

The Project Integration Management includes the processes and

activities needed to identify, define, combine, unify and
coordinate the various processes and project management
activities within the Project Management Process Groups.
In the project management context, integration includes
characteristics of unification, consolidation, articulation, and
integrative actions that crucial to project completion, successfully
managing stakeholder expectations, and meeting requirements.
Project Integration Management
Project Integration Management entails making choices about
resource allocation, making trade-offs among competing
objectives and alternatives, and managing the interdependencies
among the project management knowledge areas.
The project management processes are usually presented as
discrete processes with defined interfaces while, in practice, they
overlap and interact.
Project Integration Management
Develop project charter: Developing a document that
formally authorizes a project or a phase and documenting initial
requirements that satisfy the stakeholders needs and
expectations.
Develop project management plan: Documenting the
actions necessary to define, prepare, integrate and coordinate all
subsidiary plans.
Direct and manage project execution: Perform the work
defined in project management plan
Project Integration Management
Monitor and control project work: track, review and
regulate the progress to meet the performance objectives.
Perform integrated change control: Review all change
requests and manage changes to the organizational process
assets, project documents and project management plan.
Close project or phase: Finalize all activities across all project
management process groups.
Project Scope Management

Project Scope Management includes the processes required to

ensure that the project includes all the work required and only the
work required, to complete the project successfully.
Managing the project scope is primarily concerned with defining
and controlling what is and what is not included in the project.
In the project context, the term scope can refer to:
Product scope: the features and functions that characterize a
product, service or result.
Project scope: the work needs to be accomplished to deliver a
product service or result.
Project Scope Management
Collect requirements: Define and document stakeholders
needs to meet the project objectives.
Define scope: Develop a detailed description of the project and
product
Create Work Breakdown Structure (WBS): Subdivide
project deliverables and project work into smaller, more
manageable components.
Work Breakdown Structure
Project Scope Management
Verify scope: Formalize acceptance of the completed project
deliverables.
Control scope: Monitor the status of the project and product
scope and manage changes to the scope baseline.
Project Time Management
The Project Time Management processes include the following:
Activity definition- process of identifying the specific actions to be
performed to produce the project deliverables
Activity sequencing-process of identifying and documenting the
relationships among the project activities
Activity resource estimating process of estimating the type and
quantities of material, people, equipment or supplies required to
perform each activity.
Project Time Management
Activity duration estimation- process of approximating the
number of work periods needed to complete the individual activities
with the estimated resources.
Schedule development process of analyzing activity sequences,
durations, resource requirements, and schedule constraints to create
the project schedule.
Schedule control - process of monitoring the status of the project
to update project progress and manage changes to schedule baseline.
Project Cost Management
Project Cost Management includes the processes involved in
planning, estimating, budgeting and controlling costs so that the
project can be completed within the approved budget.
Cost estimating developing an approximation of the monetary
resources needed to complete project activities.
Cost budgeting aggregating the estimated costs of individual
activities or work packages to establish an authorized cost baseline.
Cost control monitoring the status to the project to update budget
and managing changes to the cost baseline.
Project Cost Management
Project Quality Management
Project Quality Management processes include all the activities of
the performing organization that determine quality policies,
objectives and responsibilities so that the project will satisfy the
needs for which it was undertaken.
Plan Quality process of identifying quality requirements and/or
standards for the project and product, and documenting how the
project will demonstrate compliance.
Perform Quality Assurance process of auditing the quality
requirements and the results from quality control measurements to
ensure appropriate quality standards and operational definitions are
used.
Perform Quality Control process of monitoring and recording the
results of executing the quality activities to assess performance and
recommend necessary changes.
Project Human Resource Management

Project Human Resource Management includes the processes

that organize, manage and lead the project team.
Develop Human Resource Plan process of identifying and
documenting project roles, responsibilities, and required skills,
reporting relationships and creating a staff management plan.
Acquire Project Team process of confirming human resource
availability and obtaining team necessary to complete project
assignments.
Project Human Resource Management
Develop project team process of improving the competencies, team
interaction, and the overall team environment to enhance project
performance.
Manage project team process of tracking team member
performance, providing feedback, resolving issues and managing
changes to optimize project performance.
Project Communications Management

Project Communications Management is the knowledge area that

employs the processes required to ensure timely and appropriate
generation, collection, distribution, storage, retrieval and ultimate
disposition of project information.
Identify Stakeholders - involves the identification of all stakeholders
that can impact the project. This Project Management
Communication process involves documenting their level of interest,
power, influence, and project impact.
Plan Communications - involves documenting the communication
needs of the stakeholders identified in the Identify Stakeholders
process.
Project Communications Management
Distribute Information involves making relevant information
available to project stakeholders as planned.
Manage Stakeholder Expectations - involves using the various
communication methods, interpersonal skills and management skills
to ensure the communication needs of stakeholders are
Report Performance - involves ensuring performance, progress and
forecast information are communicated to the identified
stakeholders.
Project Risk Management

Project Risk Management includes the processes concerned with

conducting risk management planning, identification, analysis,
responses and monitoring and control on a project.
Objective: increase the probability and impact of positive events,
and decrease the probability and impact of negative events.
Plan risk management process of defining how to execute the risk
management activities of a project
Identify risks process of determining which risks may affect the
project and documenting their characteristics.
Project Risk Management
Perform qualitative risk analysis process of prioritizing risks for
further analysis or action by assessing and combining their
probability of occurrence and impact.
Perform quantitative risk analysis process of numerically analyzing
the effect of identified risks on overall project objectives.
Plan risk responses process of developing options and actions to
enhance opportunities and to reduce threats to project objectives.
Monitor and control risks process of implementing risk response
plans, tracking identified risks, monitoring residual risks, identifying
new risks, and evaluating risk process effectiveness throughout the
project.
Project Procurement Management

Project Procurement Management includes the processes to

purchase or acquire products, services or results needed from
outside the project team to perform the work.
Plan procurements documenting purchasing decisions, specifying
the approach and identifying the potential sellers.
Conduct procurements obtaining seller responses, selecting a
seller and awarding a contract.
Administer procurements managing procurement relationships,
monitoring contract performance, and making changes and
corrections as needed.
Close procurements completing each project procurement
Review Knowledge Areas