Project Management Overview

Project Management Course
Dr. Andy N Sommeng

Department of Chemical Engineering
Faculty of Engineering
Universitas Indonesia
2011
Class Rules
Our classroom is a community. In our
community, we have rules to help us get along
with each other.
Our class rules are:
Be respectful and responsible.

Be organized and follow directions.
Be on time.
Be prepared.
Copyright 2011, Dr. Andy N Sommeng, Chemical Engineering Department, Universitas Indonesia
Project Management Overview

Chapter 1
Projects vs Production
Projects
Production
Idea
Construction Factory
Design
Construction New building
Plan
Construction New Highway
CONVERSION
New Prototype Product

New Prototype Services (Hospital)
Note:
Project = one time entity
Production = repetitive activity entity
Some Illustrations
Projects
Production
Automobile factory
Produce automobile
Build a house
Operate household
Construct hospital
Treat Patients
Conceive new product
Manufacture
Develop Prototype
Produce multiples
Done once
Done repetitively
In real life
Mix of Projects and Production
Projects and Production are intimately
interwoven in real life.
PROJECTS:
Start production and solve problems relating to:
Operation, maintenance, house keeping
Marketing, distribution, Quality,
What is a Project ?
View from 3 angles:
1. An undertaking or venture to accomplish some

objective or goal. [very general]
2. A set of interrelated jobs whose
accomplishment leads to the completion of the
project
3. Jobs or activities consume time and resources
and are governed by precedence relations.
Some examples of Projects

Variety of projects:
1.
2.
3.
4.
5.
Projects at personal level

Projects in local neighbourhood
Organizational projects
National projects
Global projects
Personal projects
Preparation for examination
Writing a book
Getting dressed
Wedding in the house

Family vacation
Preparation for taking Master and Doctor
degree.
Etc.
Projects in local neighbourhood

A school function
Construction of mosque
Cleanliness drive
A security function
Etc
Organizational projects
Construction highway, subway, railway and
airports
Construction and/or turnaround of oil refinery,
depot and terminal installation
Construction of natural gas pipeline transmission

and distribution
Planning and launching a new product
Etc
National projects
Launching a new satelite
Literary campaign
Poverty removal
Preparation Annual Budget
Preparation a new legislation and revision
Preparation National Election
Etc
Global projects
Organizing peace missions (United Nations)
Space exploration
Environmental protection
Reduce global CO2 emission (global warming)
Launching MDG (milenium development goal)
Campaign pro job and pro poor
Etc
Features of projects
Well defined collection (different) jobs (time, cost
and performance)
Generally, non-repetitive, one time effort
Jobs interrelated through precedence
Jobs otherwise independent
Jobs consume time and resources (cost, man,
material)
Coordination needed between individuals, groups
and organizations
Constant Pressure of conformance to time, cost and
performance goals.
Life cycle of a project
P2
Current State
{Born of Project}
P1
Desired State
{Dies of Project}
P3
P1 - reduce pollutant project
P2 ban diesel vehicle
P3 - forestry
Basically is temporary
Steps of life cycle of the project

I.
SELECTION of the project
II. PLANNING of the project
Scope of work and network development

Basic scheduling
Time Cost tradeoffs
Resource consideration in projects
Manpower
Machine
III. Project IMPLEMENTATION

IV. Project COMPLETION and AUDIT
Project Selection
1. Project Identification
2. Project Appraisal
3. Project Selection
Project identification
Receptive to new ideas

Vision of future growth
Long term objectives
SWOT analysis
Preliminary project analysis
Project appraisal
Market appraisal
Technical appraisal
Financial appraisal
Economic appraisal
Ecological appraisal
A feasibility report considers all these
issues prior to project adoption
Market appraisal
Aggregate future demand
Market share
Current and future competition
Location and accessibility of consumers

Technological Scenario/obsolescence
Possible pricing options.
Technical appraisal
Engineering aspects
Locations
Size
Production process
Financial appraisal
Cash flows overtime
Profitability
Break-even point
NPV
IRR
Payback period
Risk
Economic appraisal
Benefits and costs
Distribution of income in society
Level of savings and investment in society
Self sufficiency, employment and social order
Ecological appraisal
Environmental damages
Air
Water
Noise
Other
Restoration measures and cost
Project selection criteria

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Investment
Rate of Return
Risk
Likely Profit
Payback
Similarity to existing business
Expected Life
Flexibility
Environmental Impact
Competition
Multi Criteria evaluation

DECISION MATRIX
C1,..C2,..C3,..C4,..CN
S1
.
.
S2
.
.
SM
P1
.
.
P2
.
.
PM
W1,..W2,..W3,..W4,..WN
P1, P2,..PM = projects
W1, W2, W3, W4,..WN = weights
C1, C2, C3, C4, .. CN = criteria
S1, S2, .. SM = score
Project Planning
Forming a project team with a leader

Defining a scope and terms of reference
Work breakdown structure (WBS)
Basic scheduling
Time-Cost trade-off
Resource considerations
Levelling
Allocation
aggregation
Basic scheduling
Project representation as a network
Estimation of activity durations
Forward and backward pass
Determination of activity floats
Critical path for selective control and minimum
project duration
Time-Cost trade-off
Normal and cash activity times
Linear/non linear/discontinous/discrete time-cost
relationships
Project cost-duration efficient frontier
Total project (direct and indirect) cost.
Resource leveling
Shifting the slack jobs in the project
Schedule to obtain a balanced resource profile
Project duration kept fixed
Variety of hand and computer procedures
available
Resource allocation
The minimum duration schedule satisfying the
limited availability of resources
May entail delaying some critical jobs to keep
the resource profile within the available limits
Many hand and computer procedures available
Resource aggregation
Project schedule
Resource consumption profile for each resource
Provisioning of resource overtime
Project Implementation
Organizing team and work
Clear cost/time/performance goals
Project monitoring with regard to cost, value of
work and time
Project control
Project Completion
Disbanding of project team
Handling over of project to user
Accounting and report writing
Learning from the experience
Problems in Project Execution
Organizational/behavioural
Financial
Legal
Engineering
Construction/installation
Site evacuation/development
Labor unrest/unavailability
Non availability of resources
Weather conditions
Ad-hoc, on the spot improvisations
Human Issues in Project Management
Working together in teams

Communication
Conflict management
Leadership and motivation
Organizational structure
Selection of the project manager
Computers in Project Management
Easy sorting and listing of activities

Easy updating and new listings of project
progress over the life cycle
Certain advanced analyses practical only with

computer programs
Many commercially available packages (MS
project, Primavera, etc).
SUMMARY
Definition and examples of projects
Key features of projects
Life cycle of a project
Project selection
Project planning and scheduling
Project implementation
Project completion and audit
Typical project problems

Human issues in projects
Role of computers

Project Management Overview

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Project Management Course

Dr. Andy N Sommeng

Be respectful and responsible.

Project Management Overview

Construction New building

Construction New Highway

New Prototype Product

Conceive new product

1. An undertaking or venture to accomplish some

Some examples of Projects

Projects at personal level

Wedding in the house

Projects in local neighbourhood

Construction of natural gas pipeline transmission

Life cycle of a project

Steps of life cycle of the project

SELECTION of the project

II. PLANNING of the project

Scope of work and network development

III. Project IMPLEMENTATION

Receptive to new ideas

Location and accessibility of consumers

Self sufficiency, employment and social order

Restoration measures and cost

Project selection criteria

Multi Criteria evaluation

Forming a project team with a leader

Provisioning of resource overtime

Problems in Project Execution

Human Issues in Project Management

Working together in teams

Selection of the project manager

Computers in Project Management

Easy sorting and listing of activities

Certain advanced analyses practical only with

Typical project problems

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