Bldg 6571 - Lecture 1 - Summer Two 2016

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    PROJECT MANAGEMENT

    (BLDG 6571)

    Building, Civil, & Environmental

    Engineering Dept.

    Lecturer:

    Dr. Mohammed Saeed El-Abbasy

    Summer Two 2016

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    CLASS RULES & RECOMMENDATIONS

    Be on time

    Read the Academic Integrity

    http://www.concordia.ca/students/academic-

    integrity.html

    Read the Code of Rights and Responsibilities

    http://www.concordia.ca/academics/under

    graduate/calendar/current/17-30.html

    Read the course outlines

    Office hours: Wednesdays, 3:15 PM5:15 PM, EV 6.183

    http://www.concordia.ca/students/academic-integrity.htmlhttp://www.concordia.ca/students/academic-integrity.htmlhttp://www.concordia.ca/academics/undergraduate/calendar/current/17-30.htmlhttp://www.concordia.ca/academics/undergraduate/calendar/current/17-30.htmlhttp://www.concordia.ca/academics/undergraduate/calendar/current/17-30.htmlhttp://www.concordia.ca/students/academic-integrity.html
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    CLASS RULES & RECOMMENDATIONS

    Lecture notes and handouts are part of our class

    You are responsible for reviewing these materials

    The exams and quizzes are going to cover them

    Study the presented material directly after class

    No make-up quizzes or exams

    Be on time

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    COURSE EVALUATION

    Participation = 5%

    Quizzes = 5%

    Term Project = 20%

    Mid-Term Exam = 30%

    Final Exam = 40%

    Total = 100%

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    COURSE OUTLINES SCHEDULE

    Lecture

    #Date Topic Quizzes / Exams / Presentations

    1 27 June 2016 Introduction to Project Management -

    2 29 June 2016 Project Contract Strategy -

    3 04 July 2016 Project Planning Quiz 1 (1%)

    4 06 July 2016 Project Scheduling Quiz 2 (1%)

    5 11 July 2016 Claims -

    6 13 July 2016 - Mid-Term Exam (30%)

    7 18 July 2016 Cost Estimating And Bidding -

    8 20 July 2016 Cash Flow Analysis Quiz 3 (1%)

    9 25 July 2016 Project Progress Control Quiz 4 (1%)

    10 27 July 2016 Feasibility Studies Quiz 5 (1%)

    11 01 August 2016 -Term Project Presentations (20%)

    1203 August 2016

    -13 08 August 2016 - Final Exam 40%

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    TERM PROJECT RULES

    Done in groups.

    Minimum 3 students and maximum 5 studentsper

    group

    Each group has to select one

    project management

    area and carry a research with a case study on such

    area

    Each group should give me their names, student IDs,

    and the title of their selected topic maximum by

    Monday, July 04, 2016

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    TERM PROJECT RULES

    A hard and soft copy of the project are to be

    submitted

    Also, the PowerPoint presentation copy is to be

    submitted

    The hard and soft copy due date is on Wednesday

    July 27, 2016 (submitted in my office during the office

    hours)

    The originality form should be submitted and signed

    with the term project

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    TERM PROJECT RULES

    Electronic submissions will NOTbe accepted

    The PowerPoint presentation copy is to be submitted

    on the same day of the presentation on a CD/DVD

    The project presentations will be held on Monday

    August 01, 2016 & Wednesday August 03, 2016 in

    class.

    Each project presentation time is 15 minutes max

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    PROJECT MANAGEMENT (BLDG 6571)

    LECTURE 1

    Introduction to Project Management

    Lecturer:

    Dr. Mohammed Saeed El-Abbasy

    Summer Two 2016

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    WHAT IS A PROJECT?

    A project is a temporary endeavor undertakento create a uniqueproduct, service or result.

    A project is temporary in that it has a defined

    beginning and end in time, and therefore

    defined scope and resources.

    And a project is unique in that it is not aroutine operation, but a specific set of

    operations designed to accomplish a singular

    goal.

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    PROJECT CHARACTERISTICS

    A defined goal or objective.

    Specific tasks to be performed.

    A defined beginning and end.

    Resources being consumed.

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    PROJECTS EXAMPLES

    Software development.

    Construction of a building or bridge.

    Relief effort after a natural disaster.

    Expansion of sales into a new geographic market.

    All should be expertly managed to be delivered on-time

    and on-budget with high quality.

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    PROJECT MANAGEMENT

    Project Management is the application

    of knowledge, skills, tools, and

    techniques to project activities to meetthe project requirements.

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    CONSTRUCTION INDUSTRY QUICK FACTS

    Types of Construction:

    Construction Segments

    Building Construction

    Residential

    Non-Residential

    Heavy Construction Industrial Construction

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    CONSTRUCTION INDUSTRY QUICK FACTS

    Types of Construction: Heavy Construction(2025%)- Dams

    - Tunnels

    - Bridges

    - Highways

    - Airports

    - Etc.

    Industrial Construction

    (510%)

    - Petroleum Refineries

    - Petrochemical Plants

    - Nuclear Power Plants

    - Synthetic Fuel Plants- Etc.

    Residential Construction

    (3035%)

    - Single-family homes

    - Multi-unit townhouse

    - High-rise apartments

    - Condominiums

    - Etc.

    Non-Residential Construction

    (3540%)

    - Schools- Universities

    - Hospitals

    - Commercial Malls

    - Etc.

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    CONSTRUCTION INDUSTRY QUICK FACTS

    Types of Construction:

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    CONSTRUCTION INDUSTRY QUICK FACTS

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    CONSTRUCTION INDUSTRY QUICK FACTS

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    CONSTRUCTION INDUSTRY QUICK FACTS

    Only 47% of the U.S. startup businesses in

    construction are still operating after four years.

    Of the 918,483 U.S. contractors operating in

    2010, only 696,411 were still in business in

    2012.

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    CONSTRUCTION INDUSTRY QUICK FACTS

    28.50%

    23.60%

    20.40%21.70%

    24.20%

    0%

    5%

    10%

    15%

    20%

    25%

    30%

    2002-2004 2004-2006 2006-2008 2008-2010 2010-2012

    Fa

    ilureRate

    Year

    U.S. Contractors Failure Rate

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    CONSTRUCTION INDUSTRY QUICK FACTS

    1 2 3 4 5 6 7 8 9 10 11

    Atlantic Provinces 65% 51% 42% 35% 31% 27% 24% 21% 19% 17% 15%

    Quebec 78% 64% 54% 47% 41% 36% 32% 29% 27% 24% 21%

    Ontario 74% 58% 47% 39% 33% 28% 24% 21% 18% 16% 14%

    Prairie Provinces 68% 53% 44% 37% 32% 28% 24% 22% 20% 18% 16%

    British Columbia 72% 55% 45% 37% 32% 28% 25% 22% 20% 18% 16%

    0%

    20%

    40%

    60%

    80%

    SurvivalRate(%)

    Duration (Years)

    Canadian Construction Industry Survival Rate

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    Reasons for Poor Performance in Construction:

    CONSTRUCTION INDUSTRY QUICK FACTS

    Nature of ProjectsIndustry

    Characteristics

    Increasing

    Challenges

    Unique & unrepeatable

    Temporary

    Constrained by time,

    money, & quality

    Involve many conflicting

    parties Many decisions are made

    based solely on

    experience

    Rapidly affected by

    recessions

    Little R&D expenditures

    Lack of information

    sharing Slow to adopt new

    technologies

    Global market

    competition

    Increasing regulations

    New advances in

    materials & equipment

    Tight budget, less time, &yet better quality is

    demanded

    Rising costs

    Lack of skilled resources

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    WHY PROJECT MANAGEMENT?

    In view of such increasing challenges,

    efficient managementbecomes a key to

    the success of any construction

    organization.

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    WHY PROJECT MANAGEMENT?

    Resources (4 Ms):

    1. Manpower

    2. Materials

    3. Machinery

    4. Money

    A scientific approach to construction project management can

    help construction participants in many ways, including:

    Cope with the increasing complexity of modern projects.

    Utilize resources efficiently.

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    WHY PROJECT MANAGEMENT?

    A scientific approach to construction project management can

    help construction participants in many ways, including:

    Meet fiscal requirements and deadlines.

    Communicate effectively among the participants and avoid

    adverse relations.

    Improve construction quality and safety record.

    Achieve higher productivity.

    Document and utilize past experience to improve future

    construction.

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    PROJECT MANAGEMENT OBJECTIVES

    COST

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    PROJECT MANAGEMENT PROCESSES

    Mainly, there are 42 project management processes that are

    categorized into 5 groups:

    1. Initiating Process Group: to define a new project or a

    new phase of an existing project by obtainingauthorization to start the project or phase.

    2. Planning Process Group: to establish the scope of the

    project, refine the objectives, and define the course of

    action required to attain such objectives.

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    PROJECT MANAGEMENT PROCESSES

    3. Executing Process Group: to complete the work

    defined in the project management plan to satisfy theproject specifications.

    4. Monitoring and Controlling Process Group: 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.

    5. Closing Process Group: to finalize all activities across

    all Process Groups to formally close the project or

    phase.

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    PROJECT MANAGEMENT PROCESSES

    Project Management Process Groups

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    PROJECT MANAGEMENT PROCESSES

    Project Management Process Groups Interaction

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    PROJECT MANAGEMENT KNOWLEDGE AREAS

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    PROJECT MANAGEMENT KNOWLEDGE AREAS

    1. Project Scope Management: shows the processes involved

    in ensuring the project includes all the work required, and

    only the work required, for completing the project

    successfully.

    2. Project Time Management: focuses on the processes thatare used to help ensure the timely completion of the project.

    3. Project Cost Management: describes the processes

    involved in planning, estimating, budgeting, and controllingcosts so that the project can be completed within the

    approved budget.

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    PROJECT MANAGEMENT KNOWLEDGE AREAS

    4. Project Quality Management: describes the processes

    involved in planning for, monitoring, controlling, and

    assuring the quality requirements of the project are achieved.

    5. Project Human Resource Management: describes the

    processes involved in the planning, acquisition, development,and management of the project team.

    6. Project Communications Management: identifies the

    processes involved in ensuring timely and appropriategeneration, collection, distribution, storage, and ultimate

    nature of project information.

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    PROJECT MANAGEMENT KNOWLEDGE AREAS

    7. Project Risk Management: describes the processes

    involved with identifying, analyzing, and controlling risksfor the project.

    8. Project Procurement Management: describes the processes

    involved with purchasing or acquiring products, services, orresults for the project.

    9. Project Integration Management: defines the processes

    and activities that integrate the various elements of projectmanagement.

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Knowledge

    Area

    Project Management Processes Groups

    Initiating Planning Executing

    Monitoring

    &

    Controlling

    Closing

    Integration 1 3 23 31,32 41

    Scope 4,5,6 33,34

    Time 7,8,9,10,11 35

    Cost 12,13 36

    Quality 14 24 37

    Human Res. 15 25,26,27

    Communic. 2 16 28,29 38

    Risk 17,18,19,20,21 39

    Procure. 22 30 40 42

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Knowledge

    Area

    Project Management Processes Groups

    Initiating Planning Executing

    Monitoring

    &

    Controlling

    Closing

    Integration 1 3 23 31,32 41

    Scope 4,5,6 33,34

    Time 7,8,9,10,11 35

    Cost 12,13 36

    Quality 14 24 37

    Human Res. 15 25,26,27

    Communic. 2 16 28,29 38

    Risk 17,18,19,20,21 39

    Procure. 22 30 40 42

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Initiating Process Group:

    1. 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.

    2. Identify Stakeholders: identifying all people or

    organizations impacted by the project, and documenting

    relevant information regarding their interests, involvement,and impact on project success.

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Knowledge

    Area

    Project Management Processes Groups

    Initiating Planning Executing

    Monitoring

    &

    Controlling

    Closing

    Integration 1 3 23 31,32 41

    Scope 4,5,6 33,34

    Time 7,8,9,10,11 35

    Cost 12,13 36

    Quality 14 24 37

    Human Res. 15 25,26,27

    Communic. 2 16 28,29 38

    Risk 17,18,19,20,21 39

    Procure. 22 30 40 42

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Planning Process Group:

    3. Develop Project Management Plan: documenting the

    actions necessary to define, prepare, integrate, and

    coordinate all the plans.

    4. Collect Requirements: defining and documenting

    stakeholders needs to meet the project objectives.

    5. Define Scope: developing a detailed description of theproject and product.

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Planning Process Group:

    6. Create Work Breakdown Structure (WBS): subdividing

    project deliverables and project work into smaller, more

    manageable components.

    7. Define Activities: identifying the specific actions to be

    performed to produce the project deliverables.

    8. Sequence Activities: identifying and documentingrelationships among the project activities.

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Planning Process Group:

    9. Estimate Activity Resources: estimating the type and

    quantities of material, people, equipment, or supplies

    required to perform each activity.

    10. Estimate Activity Durations: approximating the number

    of work periods needed to complete individual activities

    with estimated resources.

    11. Develop Schedule: analyzing activity sequences,

    durations, resource requirements, and schedule constraints

    to create the project schedule.

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Planning Process Group:

    12. Estimate Costs: developing an approximation of the

    monetary resources needed to complete project activities.

    13. Determine Budget: aggregating the estimated costs ofindividual activities or work packages to establish an

    authorized cost baseline.

    14. Plan Quality: identifying quality requirements and/orstandards for the project and product, and documenting

    how the project will demonstrate compliance.

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Planning Process Group:

    15. Develop Human Resource Plan: identifying and

    documenting project roles, responsibilities, and required

    skills, reporting relationships, and creating a staffing

    management plan.

    16. Plan Communications: determining project stakeholder

    information needs and defining a communication

    approach.

    17. Plan Risk Management: defining how to conduct risk

    management activities for a project.

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Planning Process Group:

    18. Identify Risks: determining which risks may affect the

    project and documenting their characteristics.

    19. Perform Qualitative Risk Analysis:prioritizing risks forfurther analysis or action by assessing and combining their

    probability of occurrence and impact.

    20. Perform Quantitative Risk Analysis: numericallyanalyzing the effect of identified risks on overall project

    objectives.

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Planning Process Group:

    21. Plan Risk Responses: developing options and actions to

    enhance opportunities and to reduce threats to project

    objectives.

    22. Plan Procurements: documenting project purchasing

    decisions, specifying the approach, and identifying

    potential sellers.

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Knowledge

    Area

    Project Management Processes Groups

    Initiating Planning Executing

    Monitoring

    &

    Controlling

    Closing

    Integration 1 3 23 31,32 41

    Scope 4,5,6 33,34

    Time 7,8,9,10,11 35

    Cost 12,13 36

    Quality 14 24 37

    Human Res. 15 25,26,27

    Communic. 2 16 28,29 38

    Risk 17,18,19,20,21 39

    Procure. 22 30 40 42

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Executing Process Group:

    23. Direct and Manage Project Execution:performing the

    work defined in the project management plan to achieve the

    projects objectives.

    24. Perform Quality Assurance: auditing the quality

    requirements and the results from quality control

    measurements to ensure appropriate quality standards and

    operational definitions are used.

    25. Acquire Project Team: confirming human resource

    availability and obtaining the team necessary to complete

    project assignments.

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Executing Process Group:

    26. Develop Project Team: improving the capabilities, team

    interaction, and the overall team environment to enhance

    project performance.

    27. Manage Project Team: tracking team member

    performance, providing feedback, resolving issues, and

    managing changes to optimize project performance.

    28. Distribute Information: making relevant information

    available to project stakeholders as planned.

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Executing Process Group:

    29. Manage Stakeholder Expectations: communicating

    and working with stakeholders to meet their needs and

    addressing issues as they occur.

    30. Conduct Procurements: obtaining seller responses,

    selecting a seller, and awarding a contract.

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Knowledge

    Area

    Project Management Processes Groups

    Initiating Planning Executing

    Monitoring

    &

    Controlling

    Closing

    Integration 1 3 23 31,32 41

    Scope 4,5,6 33,34

    Time 7,8,9,10,11 35

    Cost 12,13 36

    Quality 14 24 37

    Human Res. 15 25,26,27

    Communic. 2 16 28,29 38

    Risk 17,18,19,20,21 39

    Procure. 22 30 40 42

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Monitoring & Controlling Process Group:

    31. Monitor and Control Project Work: tracking, reviewing,

    and regulating the progress to meet the performance

    objectives defined in the project management plan.

    32. Perform Integrated Change Control: reviewing all

    change requests, approving changes, and managing

    changes to the deliverables, project documents, and the

    project management plan.

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Monitoring & Controlling Process Group:

    33. Verify Scope: formalizing acceptance of the completed

    project deliverables.

    34. Control Scope: monitoring the status of the project andproduct scope and managing changes to the scope baseline.

    35. Control Schedule: monitoring the status of the project to

    update project progress and managing changes to theschedule baseline.

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Monitoring & Controlling Process Group:

    36. Control Costs: monitoring the status of the project to

    update the project budget and managing changes to the

    cost baseline.

    37. Perform Quality Control: monitoring and recording

    results of executing the quality activities to assess

    performance and recommend necessary changes.

    38. Report Performance: collecting and distributing

    performance information including status reports, progress

    measurements, and forecasts.

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Monitoring & Controlling Process Group:

    39. Monitor and Control Risks: implementing risk response

    plans, tracking identified risks, monitoring residual risks,

    identifying new risks, and evaluating risk process

    effectiveness throughout the project.

    40. Administer Procurements: managing procurement

    relationships, monitoring contract performance, and

    making changes and corrections as needed.

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Knowledge

    Area

    Project Management Processes Groups

    Initiating Planning Executing

    Monitoring

    &

    Controlling

    Closing

    Integration 1 3 23 31,32 41

    Scope 4,5,6 33,34

    Time 7,8,9,10,11 35

    Cost 12,13 36

    Quality 14 24 37

    Human Res. 15 25,26,27

    Communic. 2 16 28,29 38

    Risk 17,18,19,20,21 39

    Procure. 22 30 40 42

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    PM PROCESSES & KNOWLEDGE AREAS MAPPING

    Closing Process Group:

    41. Close Project: finalizing all activities across all of the

    management Process Groups to formally complete the

    project.

    42. Close Procurements: completing each project

    procurement.

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    PROJECT INTEGRATION MANAGEMENT FRAMEWORK

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    LIFE-CYCLE STAGES OF PROJECTS

    CONCEPT DESIGN CONSTRUCTION O & M*

    100% 100%

    Cost Influence Project Cost

    *O & M = Operation & Maintenance

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    LIFE-CYCLE STAGES OF PROJECTS

    CONCEPT DESIGN CONSTRUCTION O & M*

    100% 100%

    Cost Influence Project Cost

    *O & M = Operation & Maintenance

    Feasibility Studies

    Master Schedule

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    LIFE-CYCLE STAGES OF PROJECTS

    CONCEPT DESIGN CONSTRUCTION O & M*

    100% 100%

    Cost Influence Project Cost

    *O & M = Operation & Maintenance

    Conceptual Design

    Conceptual Cost Estimate

    Conceptual Planning & Scheduling

    Value Engineering

    Contract Strategy

    Detailed Design

    Bidding

    Detailed Cost Estimate

    Detailed Planning & Scheduling

    Cash Flow Analysis

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    LIFE-CYCLE STAGES OF PROJECTS

    CONCEPT DESIGN CONSTRUCTION O & M*

    100% 100%

    Cost Influence Project Cost

    *O & M = Operation & Maintenance

    ExecutionClaims

    Project Progress Control

    Commissioning

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    LIFE-CYCLE STAGES OF PROJECTS

    CONCEPT DESIGN CONSTRUCTION O & M*

    100% 100%

    Cost Influence Project Cost

    *O & M = Operation & Maintenance

    Utilization

    Project Team Assessment

    Project Review

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    CONSTRUCTION PROJECTS PARTICIPANTS

    THE OWNER

    THE DESIGN PROFESSIONALS

    THE CONSTRUCTION PROFESSIONALS

    THE PROJECT MANAGER

    1

    2

    3

    4

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    CONSTRUCTION PROJECTS PARTICIPANTS

    1. THE OWNER (THE CLIENT)

    The individual or organization for whom a project is to

    be built under a contract.

    The owner owns and finances the project.

    May handle all or portions of planning, project

    management, design, engineering, procurement, andconstruction.

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    CONSTRUCTION PROJECTS PARTICIPANTS

    1. THE OWNER (THE CLIENT)

    Main Responsibilities:

    What the project will include (scope and

    objectives)

    When the project can begin and when must end

    (schedule)

    How much can be spent (budget)

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    2. THE DESIGN PROFESSIONALS

    The individual or organization who design

    the project.

    They can be part of the owners

    organization or hired

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    2. THE DESIGN PROFESSIONALS

    Main Responsibilities:

    Design the project

    Assist the owner in developing the project

    scope, budget, and schedule

    Prepare construction documents for bidding and

    construction

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    2. THE DESIGN PROFESSIONALS

    Types:

    Architect: an individual who plans and designs buildings and

    their associated landscaping.

    Engineer: an individual or a firm engaged in the design or other

    work associated with the design or construction. (Civil,

    Mechanical, Electrical, etc.)

    Engineering-Construction Firm: an organization that

    combines both architect/engineering (A/E) and construction

    contracting.

    CO S C O O C S C S

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    3. THE CONSTRUCTION PROFESSIONALS

    The parties that are responsible for constructing

    the project.

    Main Responsibilities:

    Construct the project.

    Comply with the projects plans and

    specifications.

    CONSTRUCTION PROJECTS PARTICIPANTS

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    3. THE CONSTRUCTION PROFESSIONALS

    Types:

    General (Prime) Contractor: the business firm that is

    under contract to the owner for the construction of theproject.

    Sub-Contractor: an individual or a firm that is under

    contract to the general contractor to perform a portionof the construction work.

    CONSTRUCTION PROJECTS PARTICIPANTS

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    4. THE PROJECT MANAGER

    The individual charged with the overall coordination

    of the entire construction program for the owner.

    These include planning, design, procurement, and

    construction.

    Selected by the owner.

    CONSTRUCTION PROJECTS PARTICIPANTS

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    4. THE PROJECT MANAGER

    Main Responsibilities:

    Overall coordination of the project

    Clear definitions of the goals of the project

    Investigate alternative solutions for the problems

    Develop a detailed plan to make the selected program reality

    Implement the plan and control the project

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    QU STIONS