The Construction Industry is a complex and fragmented industry worldwide with regards to its supply chain, products, and processes, and is faced with a similar dilemma as faced by manufacturers during its time in past decades. Scope, time, and cost are the triple constraints of project management and leading factors in defining the project performance. Productivity and efficiency of each construction project is measured through its triple constraints, therefore the factors that affect project success are significantly important. Despite the importance of understanding project performance indicators, few empirical studies have been conducted over the last decade in terms of analyzing the factors that determine the performance of high-rise buildings in Engineering, Procurement, and Construction (EPC) projects. Hence, the aim of this paper is to analyze and rank EPC critical activities across large-scale residential construction projects in Iran, by using the TOPSIS method as a multi-attribute group decision-making technique. Results indicate that engineering design, project planning and controls are significant factors contributing to the project performance. In addition, engineering has a pivotal role in project performance and this significance is followed by the construction phase. On the contrary, all believe procurement is more important than Construction phase.
Projects are temporary endeavors (have specific start and end dates), delivering unique products or services.
Project and development life cycles
The series of phases a project passes through from it’s start to it’s completion is termed as ‘Project life cycle’ . The phases can be sequential or iterative. Within the project life cycle, there are some phases which are highly technical and contribute directly to the building up of the product of the project. These are known as the ‘Development life cycle’. Development life cycles can be predictive, iterative, incremental, adaptive (agile, iterative or incremental) or hybrid. The development cycles are decided during the project strategy development phase.
A project phase is a collection of logically related activities that produces one or more deliverables of the project. Requirements phase delivers requirements document. Design phase delivers design and the design document.
Phase gate, stage gate or kill points are the senior management review of the project conducted at the end of every major phase. They are also known as the go-nogo meetings, as the decision to fund or do not fund the subsequent phase is decided during these meetings.
Project management process groups
Monitoring and controlling
Project management knowledge areas
Project integration management
Project scope management
Project schedule management
Project cost management
Project quality management
Project resource management
Project communications management
Project risk management
Project procurement management
Project stakeholder management
There are 49 processes in PMBOK. Each of these processes have a set of inputs, tools&techniques and outputs. Every process in the PMBOK is associated to a ‘Knowledge area’ and a ‘Process group’. For example the process ‘Develop project charter’ is part of ‘Project integration management’ knowledge area and ‘Initiating’ process group. In page number 25 of PMBOK Version 6, this is depicted in detail as a two dimensional array.
During project initiation, planning, execution, monitoring, controlling and closing, enormous amount of data is generated, which gets processed into information and then to reports.
Should we follow every process of PMBOK in every project?. The answer is ‘No’. Based on the nature of the project (magnitude, complexity, engineering discipline etc), project managers must tailor the project management processes for better value.
Project management business documents
Project business case – Documented economic feasibility study of the project , generally owned by the project sponsor
Project benefits management plan – Processes for creating, maximizing and sustaining the benefits provided by a project. Project manager provides inputs for maintaining these.
Contents of project business case
Why are we doing this project?
Key stakeholders affected
High level scope of the project
Analysis of the situation
Recommended solutions / alternatives analysis
Project benefit management plan
Benefit milestones and dates , Benefit owner
Alignment of the benefits to the organizational business strategy
Benefit measuring logic, systems
Assumptions and risks
Project success measures
Establishing the project success criteria with the involvement of all the key stakeholders upfront in a project increases the probability of success. Must be documented and can include;
Definition of success for the project
Success measuring parameters
Critical success factors
Adherence to the project business management plan
Meeting the agreed upon financial ratios used while justifying the project selection;
Net Present Value (NPV) = (Sum of the present value of all future cash flows – initial investment)
Return On Investment (ROI)
Internal Rate of Return (IRR)
Pay Back Period (PBP) – The year in which we can take recover the initial investment from the project
Benefit Cost Ratio (BCR) = (Sum of the present value of all future cash flows) / Initial investment
References : PMBOK Version 6 Pages , TCM Framework
Look, I don’t think I’m weird about this. I really don’t. I think lots of you sniff your books. And probably other people’s too.
The way books smell matters. The cheap hard white academic institutional paper of tenure books and reheated dissertations has a smell that tells you from the beginning that you will learn a firehose-blast of trivialities and you will not admit to enjoying it too much. My undated Hodder & Stoughton edition of The Ruba’iya’t of Omar Khayyam has just a memory of a smell of storytime from thick soft volumes, while my copy of Elementary Particles by David Griffiths has an inexplicable faint whiff of black pepper. For a long time, every issue of National Geographic had a tangy smart pong that was the closest thing I’d ever found to the taste left by a large bug (perhaps a bee) that slammed into the back…
The actions we take proactively to reduce the probability or impact or both comes under risk response planning. For example – Building an earth quake resistant building in an earthquake prone area is part of risk response planning. The actions we do, when the risk really happens fall under risk contingency actions. Here is one…
Whether in the office or at home, I do not like others to dictate work to me. I may do it but not with full commitment. While being so, I cannot expect absolute freedom while working in projects. Joint work decisions / understanding matching the project milestones based on self respect and mutual respect is the solution.
This blog post about the rights and responsibilities of the manager and the engineer is an eye opener to