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NEED For CPM

Cpm

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36 views3 pages

NEED For CPM

Cpm

Uploaded by

Kanasu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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According to the PMBOK (Project Management Body of Knowledge) 3rd edition, A project is defined as a

“temporary endeavour with a beginning and an end and it must be used to create a unique product,
service or result”.
For a construction project the goal is to build something. The construction industry is one of the
booming sectors in the world and considers being as the indicator of development.
Construction industry deals with mainly three categories –general construction types like Buildings, large
infrastructure projects like bridges and speciality trade construction works like electrical, plumbing etc.

This industry plays a vital role in a country’s economy. For example in India 11% of country’s Gross
Domestic Product (GDP) accounts on this sector.
The main reasons are
1) It is an investment led sector, which leads to economic growth.
2) Construction projects consumes a wide employment circle of labours both skilled and un skilled. In
developing countries 15-40 people per 1000 people work in this sector.(source: Habitat 1995)
This ensures increase in household income and thus economic growth.
3) Construction sector provides a basis up on which other sectors like Industrial, trade etc can grow.
Thus indirectly contributes to both social and economic growth of a country.
4) Infrastructures and high quality public facilities like hospitals, schools, offices etc contributes to
increased national welfare, which indirectly helps in social and economic development.

In spite of being one of the major economic indicators of a country, Construction industry has long been
criticized for its poor performance with many projects failing and not meeting the expectations. Many
projects exhibit cost overruns, time extensions, and conflicts among parties. This lack of performance
leads to huge percentage of wastage of the invested money. For example in US every $1 billion invested,
$122 million get wasted. These failures can be attributed to the challenging nature of this industry.

The challenges faced are


1) hyper competition in industry;
2) every project is unique,
3) involvement of many conflicting parties,
4) high risks involved. To overcome these challenges every project requires clarity in overall vision, goals
and objectives.
There are other reasons for the failure of a construction project.
1) Inaccurate estimates due to miscalculations, specification errors, omissions, excluded permits, and
changing market conditions.
2) Scope creep ie the amount of work grows beyond the original agreement.
3) Unreliable and unskilled workers
4) unclear specifications
5) communication gap between the parties
6) financing issues and
7) improper planning.

This shows unsophisticated strategic planning makes it difficult in making accurate market predictions
and thus leads to the project failure. Here comes the need for Construction and Project management.

Construction and project management can be defined as the art and science of coordinating people,
equipment, materials, money and schedules to complete a specified project on time and within
approved cost.
Although this concept is widely used today, it is not as widely accepted as might be expected. One of
the important principles of project management is the necessary balance between the scope, budget,
and schedule without compromising on quality.
An experienced expert project manager recognizes this simple concept of a balance between scope,
budget, and schedule during early project development as well as during design and construction which
can turn the project successful.

Different phases of construction management:1. Initiation: Shows the beginning of the project and is
where the project charter is developed and where stakeholders are identified.
2. Planning: The project plan is developed and requirements are defined. This is also where risk is
identified and planned for, and where communications are built. Goals and objectives are finalised at
this stage.
3.Designing: Preliminary design development. This stage costs are estimated, resources are determined.
4 Execution: This is where the project is carried out, all while procuring resources and managing
stakeholder expectations.
5.Controlling/Monitoring: Often this phase is carried out simultaneously with execution because this is
where quality is monitored, as well as scope creep, and cost/time allocations are watched in order to
keep things within budget.
6. Closing: This is where the project is finalized, where the deliverable is given to the customer, where
stakeholders are told of the completion of the project, and all resources are released back to their
resource managers. (Source PMBOK)
A project manager ensures that the project scope, budget, and schedule are linked together which can
help to reduce the risks. By following the above mentioned phases of management with clear goals and
objectives, a construction project can complete at the scheduled time without overrun the budget and
without compromising in the quality of product. By applying the philosophy of “start with end in mind”,
project management and a project manager help to carry a project in optimised way.

1.2.2 THE NEED/IMPORTANCE OF PROJECT MANAGEMENT


Project management is the application of knowledge, skills, tools, and techniques to project activities to
meet the project requirements. Project management is accomplished through the appropriate application
and integration of the project management processes identified for the project. Project management
enables organizations to execute projects effectively and efficiently.
Effective project management helps individuals, groups, and public and private organizations to:
 Meet business objectives;
 Satisfy stakeholder expectations;
 Be more predictable;
 Increase chances of success;
 Deliver the right products at the right time;
 Resolve problems and issues;
 Respond to risks in a timely manner;
 Optimize the use of organizational resources;
 Identify, recover, or terminate failing projects;
 Manage constraints (e.g., scope, quality, schedule, costs, resources);
 Balance the influence of constraints on the project (e.g., increased scope may increase cost or
schedule); and
 Manage change in a better manner.
Poorly managed projects or the absence of project management may result in:
 Missed deadlines,
 Cost overruns,
 Poor quality,
 Rework,
 Uncontrolled expansion of the project,
 Loss of reputation for the organization,
 Unsatisfied stakeholders, and
 Failure in achieving the objectives for which the project was undertaken.
Projects are a key way to create value and benefits in organizations. In today’s business environment,
organizational leaders need to be able to manage with tighter budgets, shorter timelines, scarcity of
resources, and rapidly changing technology. The business environment is dynamic with an accelerating
rate of change. To remain competitive in the world economy, companies are embracing project
management to consistently deliver business value.
Effective and efficient project management should be considered a strategic competency within
organizations. It enables
organizations to:
 Tie project results to business goals,
 Compete more effectively in their markets,
 Sustain the organization, and
 Respond to the impact of business environment changes on projects by appropriately adjusting
project
management plans

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