Project Management &

Economics
Dr Wesam Salah Alaloul
Civil & Environmental Engineering Department
About the Course
1 Name of Course/ Module
Project Management & Economics
2 Course Code DAM 5323
3
Dr Wesam Salah Alaloul
Name of Academic Staff Office: 14.03.35
Office Phone No.: +605 368 7303
Email address: [email protected]
4 The objective of this module is to describe the planning and execution of
a drilling project economically. In addition, it emphasises on risk
Synopsis
assessment and environmental impacts of drilling projects by addressing
regulatory & standard compliance.
5 Semester and year offered Semester 3, Year 1
6 Total Student Learning Ti Face To Face Total Guided and Indepen
me (SLT) dent Learning
L = Lecture L T P O
0 0 42 hrs
P = Practical 42
7 Credit Value 3
8 Prerequisite (if any)
Course Important
Secrets About This Course
Why PM is important?
What is a project
▪ A group of milestones or phases, activities or tasks that support an effort to
accomplish objectives.

▪ A collection of linked activities, carried out in an organized manner, with a

clearly defined START POINT and END POINT to achieve some specific result
desired to satisfy the needs of the organization at the current time.
▪ A series of activities aimed at bringing about clearly specified objectives within a defined
time period and with a defined budget.

▪ A temporary endeavor undertaken to create a unique product, service or result.

Temporary Characteristics of Unique

Projects
What is a project
Temporary

▪ A project has a definite beginning and definite end

▪ The duration of a project is finite
▪ The opportunity or market window is usually temporary, most
projects have a limited time frame in which to produce the product or
service
▪ The project team - as a team - seldom outlives the project. Most
projects are performed by a team created for the sole purpose of
performing the project
What is a project
Unique result

▪ Projects involve doing something that has not been done before in
the same environment.
▪ The project may require some innovation to be completed.

Progressive elaboration
▪ A project occurs step by step to define the product or service, in a
so called “progressive elaboration” process.
Progressively: proceeding in steps
Elaborated: worked with care and detail
Scope of project should remain constant
What is a project
Project Characteristics

▪ Has a goal/meets a need

▪ Is a set of related activities that are nonrecurring
▪ Has a definite beginning and end
▪ Has clearly defined goals and deliverables
▪ Consumes resources
▪ Needs to be managed
What is a project
Project Characteristics
What is a project
Program versus Project

Often program and project are used interchangeably, but

nominally, a program is a larger concept than a project.

▪ A program is a set of related projects

▪ The Space Shuttle program consists of many flights which are each separately
managed projects.
What is a project
Program versus Project
What is a project
Operation Vs. Project

Operation Project
Ongoing, day-to-day Take place outside the
activities to produce normal, process-oriented
goods and services. world.
Use existing systems, Unique and separate
properties, and from routine, process-
capabilities. driven work.
Typically repetitive Continually evolving
What is a project
Goals, Objectives (and Tasks) What’s the difference?
What is a project
Project Objectives (SMART)
Project Management
Project Management
▪ A dynamic process that utilizes the appropriate resources of the organization
in a controlled and structured manner, to achieve some clearly defined
objectives identified as needs.

▪ It is always conducted within a defined set of constraints (Tasks, Resources, and Time).

▪ Is the process of Planning, Organizing, Controlling and Measuring.

▪ On time delivery, Within budget delivery, and High-quality delivery.

Project Management
Project Management
▪ It is necessary to Track or Measure the progress we
have achieved towards a Goal we wish to accomplish.

▪ We use Project Management to Aid us in Maximizing

and Optimizing our resources to accomplish our goals.
Project Management
The Project Management Triple Constraint: Iron Triangle

▪ Increased Quality = increased time + increased cost

▪ Tight Time = increased costs + reduced quality
▪ Tight Budget = increased time + reduced quality.
Project Management
The Project Management Triple Constraint: Iron Triangle
Project Management
Successful project
management means meeting
all three goals (quality, time,
and cost) – and satisfying the
project’s sponsor!
Project Management

B
Project Management
Project Management
Project Management
Project Management
Project Management
How much time does Project Management take?

Not much. Probably more time is wasted as a

consequence of lack of Project Management tool
than is spent to Plan adequately, Organize, Control
effectively and Measure appropriately
How long: As long as there are things to do
Project Management
Who uses Project Management?
• Nearly Everyone to some degree
People plan their Days, their Weeks, their Vacations and
their Budgets and keep a simple project management form
known as ‘’To Do’’ list
• Any Process or Means used to track tasks or efforts
towards accomplishing a goal could be considered Project
Management
Project Management
Hard Part About PM…

Because every project is unique, project

managers and their teams must have a good
understanding of what tools and techniques
are available before they can make the more
difficult decisions of which ones to use on
their projects and how to implement them.
Role of a project manager

▪ The role of a project manager is affected by the one-

shot nature of the project
▪ The role of a project manager is difficult when team
members are still linked to their permanent work
areas
✓ Members may be assigned to several projects
simultaneously
▪ Managers must rely on their communication skills
and powers of persuasion
Role of a project manager
Project manager attributes
• Knowledgeable about the
• Leader & manager
organization
• Facilitator, coordinator
• Political sensitivity
• Communicator
• Conflict: sense, confront,
• Credibility: Technical/ resolve
Administrative
• Can deal ambiguity
• Work under pressure
• Planning and follow-through
• Goal-oriented
• Ethical dilemmas
Role of a project manager
Seven Traits of Good Project Managers

▪ Enthusiasm for the project

▪ Ability to manage change effectively

▪ A tolerant attitude toward ambiguity

▪ Team – building and negotiating skills

▪ A customer-first orientation

▪ Adherence to the priorities of business

▪ Knowledge of the industry or technology

Role of a project manager
Project teams

▪ Diversity of knowledge needed

▪ Cross-functional
▪ Self-directed
▪ Often ad-hoc
▪ Often distributed (geographically)
▪ Start and end dates (temporary)
Role of a project manager
Project personnel skills

• Technical
• Problem-oriented (vs. discipline-oriented)
• Goal-oriented
• Flexibility, adaptability
• High self-esteem
– can handle failure, risk, uncertainty, unexpected
– can share blame and credit
Role of a project manager
Don’t Overemphasize Using PM Software

• You can’t use PM software well if you don’t

understand fundamental PM concepts
• “A fool with a tool is still just a fool”
Project Management
What project management helps you to achieve

▪ Plan tasks in project.

▪ Avoid dependencies problems.
▪ Reduce risks.
▪ Track progress accurately .
▪ Organize project process and timeline.
▪ Improve stakeholder - staff communication.
▪ Improve management of stakeholders’ expectations.
▪ Complete within budget and on time.
Project Management
The PMBOK Nine Knowledge Areas The PMBOK Five Process Groups
▪ Integration ▪ Initiating
▪ Scope ▪ Planning
▪ Time ▪ Executing
▪ Cost ▪ Monitoring & Controlling
▪ Quality ▪ Closing
▪ Communications
▪ Human Resources
▪ Risk
▪ Procurement
Project Management
Knowledge Project Management Process Groups
Areas Initiating Planning Executing Monitoring & Closing
Controlling
Integration Develop Project
Charter
Develop Project Management Plan Direct & Manage
Project Execution
Monitor & Control Project
Work Perform Integrated
Close Project
or Phase
Change Control

Scope Collect Requirements

Define Scope, Create WBS
Verify Scope
Control Scope

Time Define Activities, Sequence Activities

Estimate Activity Resources
Control Schedule

Estimate Activity Durations Develop Schedule

Cost Estimate Cost

Determine Budget
Control Costs

Quality Plan Quality Perform Quality

Assurance
Perform Quality Control

HR Develop HR Plan Acquire Project Team

Develop Project Tea
Manage Project Team

Communications Identify Commu

nications
Plan Communications Distribute
Information
Manage Stakeholder Expect
ations
Report Performance

Risk Plan Risk Management, Identify Risks

Perform Qualitative Risk Analysis
Monitor & Control Risks

Perform Quantitative Risk Analysis

Plan Risk Responses

Procurement Plan Procurements Conduct

Procurements
Administer Procurements Close
Procurements
Project Management
Project Life Cycle
Project Cycle Management (PCM)

▪ Is a methodology for the preparation, implementation

and evaluation of projects based on the principles of
the logical framework approach.

▪ It describes management activities and decision-

making procedures used during the life cycle of a
project (key tasks, roles and responsibilities, key
documents and decision options)
Project Life Cycle

5% 20% 60% 15%

Project Life Cycle
Monitoring
Planning or Production
Initiation and Closing
development or execution
controlling
Project Life Cycle
▪ Initiation: Defines the project objectives and grants authority to the
project manager.

▪ Planning: Refines the project objectives and scope and plans the
steps necessary to meet the project’s objectives.

▪ Executing: Puts the project plan into motion and performs the work
of the project.

▪ Controlling: Measures the performance of the executing activities

and compares the results with the project plan.

▪ Closing: Documents the formal acceptance of the project’s product

and brings all aspects of the project to a close.
Project Life Cycle
Project Life Cycle
Feasibility Study

A general estimate used to determine whether a

particular project should be pursued.

▪ Technical feasibility
▪ Financial feasibility
Project Life Cycle
Project Definition Phase

▪ Initiate the project

▪ Identify the Project Manager
▪ Develop the Project Charter
▪ Conduct a Feasibility Study
▪ Define Planning Phase
▪ Sign off on the Project Charter
Project Life Cycle
Project Planning Phase

▪ Organize and staff the project

▪ Develop a Project Plan
▪ Sign off on the Project Plan
Project Life Cycle
Project Execution Phase

▪ Execute the Project Plan

▪ Manage the Project Plan
▪ Implement the project’s results
▪ Sign off on project’s completion
Project Life Cycle
Project Close-out Phase

▪ Document the lessons learned during the project

▪ After-implementation review
▪ Provide performance feedback
▪ Close-out contracts
▪ Complete administrative close-out
▪ Deliver project completion report
Project Life Cycle
Project Life Cycle
Thank You
Any Question?