CHAPTER 4 INTEGRATION OF CONSTRUCTION PROJECT MANAGEMENT AND SUSTAINABILITY

Transcription

1 CHAPTER 4 INTEGRATION OF CONSTRUCTION PROJECT MANAGEMENT AND SUSTAINABILITY

2 CONTENTS 4.1: THE IDEA 4.2: MANAGEMENT FUNCTIONS 4.3: ORGANIZATIONAL STRUCTURES 4.4: TYPICAL PROJECT DELIVERIES 4.5: ICT IN CONSTRUCTION

3 4.1: THE IDEA OF INTEGRATION CONSTRUCTION PROJECT MANAGEMENT SUSTAINABILITY HOW? WHO?

4 WHOLE CONSTRUCTION PROJECT LIFECYCLE CONSTRUCTION PROJECT MANAGER CONSTRUCTION MANAGER SITE MANAGER PEOPLE INVOLVE! NEED AN ORGANIZATION! Legends: Process 1. Idea 2. Conceptual design 3. Approval of conceptual design 4. Preliminary & final design 5. Bid package complete 6. Decision to release for bid 7. Advertise notice to bidders 8. Bid period & receipt of proposals 9. Select contractor 10. Notice to proceed 11. Construction period 12. Inspection & acceptance of project

5 ENGINEERING PROJECT ORGANIZATION Organizational Contingency Scientific Management Approach System Bureaucracy Human Relation

6 Organization Definition A group of people who have different talents working together toward a common goal. Organization is a unit within a company within which many projects are managed as a whole. All projects within an organization share a common top-level manager and common policies.

7 Organization in Management What is Organization Management? the attainment of organizational goals in an effective and efficient manner through management functions (e.g. planning, organizing, leading, and controlling) towards organizational resources Purpose? Establish area and level of responsibility in accomplishing the goals of company Determine communication way within a member

8 Impact of Effective Organization Proper implementation of works Easy to make a plan Effective Organization Easy to make decision Minimize a misspend and corruption MAY LEAD TO SUCCESS & SUSTAINABILITY

9 4.2: Management Functions in Organizational Approach Planning Action to guide a project completion. Organizing Arrangement of resource in a systematic manner to fit the project plan. Controlling Establishment of a system to measure, report, and forecast deviations in the project scope, budget and schedule.

10 Management Functions in Organizational Approach (cont.) Leading Involves the social and informal sources of influence that use to inspire action taken by others. Coordinating The synchronization and integration of activities, responsibilities and command and control structures to ensure that the resources of organization are used most efficiently in pursuit of the specific objectives. Staffing Selection of individuals who have the expertise to produce the work.

11 Management Functions in Organizational Approach (cont.) Forecasting The act of predicting business activity for a future period of time. Directing Guidance of the work require to complete a project. Motivating Using incentives, persuasion and mental or physical stimulants to influence the way people think or behave individually or in groups.

12 Manager s Roles in Planning Develop planning focused on the work to be performed. Establish project objectives and performance requirements early so everyone involved knows what is required. Involve all discipline managers and key staff members in the process of planning and estimating Establish clear and well-defined milestones in the project so all concerned will know what is to be accomplish and when it is to be completed. Build contingencies into the plan to provide a reserve in the schedule for unforeseen future problems. Avoid re-programming or re-planning the project unless absolutely necessary. Prepare formal agreements with appropriate parties whenever there is a change in the project and establish methods to control changes. Communicate the project plan to clearly define individual responsibilities, schedule and budget.

13 Manager s Roles in Organizing Organize the project around the work to be accomplished. Develop a work breakdown structure that divides the project into definable and measureable units of work. Establish a project organization chart for each project to show who does what. Define clearly the authority and responsibility for all project team members.

14 Manager s Roles in Staffing Define clearly the work to be performed, and work with appropriate department managers in selecting team members. Provide an effective orientation (project goals and objectives) for team members at the beginning of the project. Explain clearly to team members what is expected of them and how their work fits into the total project. Solicit each team member s input clearly define agree upon scope, budget and schedule.

15 Manager s Roles in Directing Serve as an effective leader in coordinating all important aspects of the projects. Show interest and enthusiasm in the project with a can do attitude. Be available to the project staff, get problems out in the open, and work out problems in a cooperative manner. Analyze and investigate problems early so solutions can be found at the earliest possible date. Obtain the resource needed by the project team to accomplish their work to complete the project. Recognize the importance of team members, compliment them for good work, guide them in correcting mistakes, and build an effective team.

16 Manager s Roles in Controlling Maintain a record of planned and actual work accomplished to measure project performance. Maintain a current milestone chart that displays planned and achieved milestones. Maintain a monthly project cost chart that displays planned expenditures and actual expenditures.

17 4.3: TYPES OF ORGANIZATIONAL PROJECT STRUCTURE

18 What is organizational structure? The organizational structure is defined as a formal coordination and communication patterns by management to: resume task or define responsibilities of individuals and groups in achieving the ultimate goal of the organization The structure determine: Division of works Responsibilities Cooperation Consultation Decision making Information flows

19 Selection of organizational structure task, goal, products or services will be produced and achieved, factors such as group size dynamic factors: such as technology, the rate of change in environment and the type of work related the selection of management control area and the degree of centralization

20 Types of organizational structure Primary project management organizational structure are: Functional Matrix Pure project

21 Functional Organization Characteristics Based on function or role Employees are grouped hierarchically Clear lines of authority Only one person at top Vertical information flow

22 Functional Organization (cont.)

23 Functional Organization (cont.) Advantages reduces or prevents conflicts of interest efficiency and clear lines of authority, communication and accountability workers easily coordinate and communicate within their departments work well for small and less project organization task assignments consistent with technical training high quality technical problem solving in-depth training and skill development within function clear cut career paths within functions

24 Functional Organization (cont.) Disadvantages project managers have limited authority and a limited career path in this type of structure. poor communication and coordination across functions having too many decisions referred upward in the hierarchy slow innovation in response to environmental changes.

25 Pure project organization Characteristics Project is separated from the rest of the parent system Becomes self contained unit Project requiring major changes. Hence, a small, self-sufficient and full-time team is set up. The team leader is like an entrepreneur. Leader has full responsibility over the project. Functional units are stable, provide support to project teams.

26 Pure project organization (cont.) President Vice President Project A Vice President Project B Vice President Project C Finance Manufacturing Finance Manufacturing Finance Manufacturing

27 Pure project organization (cont.) Advantages a strong divisiveness occurs between the project team and the parent organization. PM has full line authority over the project All project workforce directly responsible to the PM Lines of communication are shortened Maintain permanent group of experts High level of commitment Ability to make swift decisions Unity of command Simple and flexible structure Support holistic approach to the project

28 Pure project organization (cont.) Disadvantages Project team members have difficulty in going back to their functional units when the project is over Duplication of effort Stockpile equipment and technical assistance just in case Lack of expertise in high technology project Foster inconsistency and cutting corners Project takes on a life of its own Worry about life after project ends

29 Matrix organization Characteristics Combination of the pure functional structure and the product organizational structure suited for project-driven companies such as construction. people with similar skills are pooled for work assignments, resulting in more than one manager project manager has total responsibility and accountability for project success.

30 Matrix organization (cont.)

31 Matrix organization (cont.) Advantages: Individuals can be chosen according to the needs of the project. Better coordination and policy decisions Effective cost management High visibility of project objective High degree of coordination by project manager Flexibility in utilizing limited resources Minimal conflicts

32 Matrix organization (cont.) Disadvantages: Personal dissatisfactions Difficulties in setting priorities Complexities of communication and control Projects can be difficult to monitor if teams have a lot of independence. Costs can be increased if more managers (i.e. project managers) are created through the use of project teams.

33 Project Organization VS Functional Organization Project Organization Fast decision, simple & clear lies of duty & responsibilities More innovative, problems are usually solved on the spot/within branch Very efficient in achieving specific target More expensive, resource sometimes not fully utilized Less chance for staff development on special knowledge/skills Functional Organization Bureaucratic due to protectionism between specialist branches Less innovative since function are separate and problems must be referred to relevant branches Less efficient in achieving specific target. Less expensive, due to less wastage in utilizing resources More chance for developing special knowledge/skills

34 FACTORS TO CONSIDER BEFORE DECIDING ON ORGANISATIONAL STRUCTURE Data Requirements Level of uncertainty in Project Project Durations Technology Required Factors Resources Complexity Number of projects & their relative importance Overhead cost

35 4.4: METHODS OF PROJECT DELIVERY

36 Methods of Project Delivery Major Project Delivery Methods commonly used are:- Traditional method (Design-Bid-Build) Design-Build Construction Management Owner-Builder Arrangement

37 1. Methods of Project Delivery Two-step procurement (design and build as separate contract) One general contractor and separate designer Can be done by contractor itself and/or subcontractor May involves numerous subcontractors Project can be the most economical form of construction procurement when contractor bid at the lowest price. However experts agree that this method also could be the most expensive form of const. procurement with the lowest quality product if not well monitor. Most contract is based on Bill of Quantities. Designer Architect/ Engineer Traditional Project (Design-Bid-Build) Project Owner General Contractor

38 2. Methods of Project Delivery Design-Build Project/Turnkey Project Owner Design/Build Firm Contractor Contractor Contractor Procurement system in which the owner contracts with a contractor and/or designer as a single unity, under one contract. Owner assign design and build firm to run the project. Design & Build Firm will be responsible for both design and construction work. Provides the means for company to manage their construction needs without a large internal staff, and still meets their needs for quality and timeliness. Most contract in lump sum value. Optional own forces work for contractors and subcontractors. Possible Disadvantage is that a dominant contractor will overrule the designer s recommendations of quality in the interest of cost.

39 3. Methods of Project Delivery Designers Architect/ Engineers Owner CM/PMC Contractors Contractors Contractors A Construction Management (CM) Project Contract assigned to CM firm or Project Management Consultant (PMC) to coordinate the project for the owner. Four Party arrangement involves owner, designers, CM firm and contractors. CM does not perform design or construction work with it own forces.

40 4. Methods of Project Delivery Owner-Builder/Agent Arrangements Sometimes used for handling a project. Owner perform a partial design with in-house designers and contract the balance of designs to one or more outside-design consultants. Construction contract may be assign to one or more contractors In-House Design Owner Owner Contract Coordinator Contract Design Contractor Contractor Contractor

41 Methods of Project Delivery

42 4.5: Information and Communication Technology (ICT) In construction

43 Introduction ICT(Information and Communication Technology) extended for information technology (IT) technologies that provide access to information through telecommunications focuses primarily on communication technology includes internet, wireless network, cell phones and other communication medium which enable users to access, store, transmit, and manipulate information.

44 Why construction industry need an ICT? ICT becomes a vital tool for managing information large amount of project information generated and used during the various stages in project life cycle. Sharing and maintaining this information among multiple disciplines and throughout the project life cycle is complex and difficult task. So, flow of information need to be managed so that it will be received or accessed when required.

45 How to implement ICT in construction? Information management!!!! Why bother information management? Traditional methods have not always worked. Scale of building work has change Involvement large number of people

46 Input and output in project phase Idea Conceptual design Detail design Construction planning Construction Operation Report Drawings Drawings Estimate schedule As-built drawing Information in construction. What else? -Engineer Inst. -Arch. Inst. -Etc. Traditional fragmented and sequential project delivery process

47 Role of ICT in managing information Factory & commercial Specialist contractor Owner Building management DATABASE Main contractor Designers/ engineers Commercial CAD Information technology life cycle for project teams

48 Problems? Causes of problem in adoption and utilization of integrated IT system (Alswahi, 1996) Poor management and communication The fragmented nature of the industry Lack of standardization and uniform procedure Number of participant involved in construction project.

49 We can change the system, but we cannot change people using the system

50 We can change the system, but we cannot change people using the system So, where are we?

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