Basic Concepts of Management - According to Allen, the organizing refers to “the

- Management is an important element in every structured which results from identifying and
organization. It is the element that coordinates grouping the work, defining and delegating
currents organizational activities and plans for responsibility and authority and establishing
the future. relationships.”
- The management adapts the organization to its - To organize a business is to provide it with
environment and shapes the organization to everything useful to its functioning i.e. personnel,
make it more suitable to the organization. raw materials, machineries, capital etc.
Management - Once objectives are established, manager has to
- “Management is the art of “knowing what you develop plan to achieve them with help of human
want to do” and then seeing that it is done in resources as well as material resources.
the best and cheapest way.” – F.W. Taylor
- Management as a process “consisting of Staffing
planning, organizing, actuating, and - Identifies the qualified potential employees.
controlling, performed to determine and
accomplish the objective by the use of people
Directing
and resources. – George R. Terry
- Directing involves communication, leadership and
motivation.
In this definition, - Communication is the process of passing the
Planning means Plan in advance. information and understanding it from one person
Organizing means coordination between human to another person.
resources and materials resources. - Leadership is the function whereby the person or
Actuating means motivation and giving direction to manager guides and influences the work of his
subordinate. subordinates.
Controlling means to endure about implementation of
- Motivation is to motivate the employee to give
plan without deviation.
their best to the organization.
Thus, this definition tells that management is act of
achieving the organization objectives.
Controlling
Management Functions or The Process of - The controlling involves:
Management 1. Establishing standards of performance.
- Planning, Organizing, Leading & Controlling 2. Measuring current performance and
(Newman & Summer) comparing it against the established standard.
- Planning, Organizing, Commanding, 3. Taking corrective action that does not meet the
Coordinating, and Controlling (Henri Fayol) standard.
- ‘POSDCORB’: Planning, Organizing, Staffing, - Control compels the events to confirm to plans.
Directing, Coordinating, Reporting, & Budgeting
(Luther Gulick) Innovation and Representation
- Decision Making, Organizing, Staffing, Planning, - These are also two important additional
Controlling, Communicating, & Directing managerial functions.
(Warren Haynes & Joseph Massie) - Innovation means crating new ideas which may
- Planning, Organizing, Staffing, Directing, & either result in the development of new products
Controlling (Koontz O’Donnell} or finding new uses for older ones. It is necessary
to grow better.
Functions of Management - The manger has to represent himself for the
(POSDCON) organization. A manger must win support
Planning effectively from different groups (either internal
or external).
- It is a process of deciding the business objectives
and charting out the plan/method for achieving the
Importance of Management
same. This includes determination of what is to be
done, how, and where it is to be done, who will - Management is critical element in the critical
and how result are to be evaluated. growth of the country.
- This function expected to be carried out - Management is essential in all organized effort, be
throughout the organization. It should be it business activity or any other activity.
performed by the manager at all levels. - Management is the dynamic, life-giving element
in every organization.
Levels of Management
Organizing
- Lower level (first line): Foreman & white-collar
supervisor
- Middle management: Sales managers, personnel
managers, other departmental heads
- Top management: Company presidents,
executives, vice presidents

Managerial Skills

Initiation Phase
Introduction to Project Management
What is a Project? - The beginning phase of every project where a
A project is a temporary endeavor designed to produce a project manager is selected.
unique product, service or result with a defined beginning - The project manager will meet with the project
and end (usually time-constrained and often constrained by sponsor and key stakeholders to determine the
funding or deliverables) undertaken to meet unique goals business or technical objectives of the project.
and objectives, typically to bring about beneficial change - Determine any historical information regarding
or added value. the project. Begin to identify who is needed on a
project team.
- Key Outputs of this phase are:
Project Operation – Develop Project Charter
Temporary On-going – Develop Preliminary Scope Statement
Unique Not unique (same – Identification of all stakeholders
product) – Divide the project into Phases
Planning Phase
Definite beginning Continuous,
The number of outputs for the planning phase is large
and end repetitive
and that is why the planning phase should be given
adequate time for planning.
What is Project Management?
Project management is the discipline of initiating, *Please keep in mind that this phase will have been an
planning, executing, controlling, and closing the work iterative process. Everything will be revised until all
of a team to achieve specific goals and meet specific parties agree on the outputs and formal approval is
success criteria. given.
Project Life Cycle Triple Constraint is the methodology that if there is a
• To provide the basic framework for managing change in cost, then the change will impact schedule
a project. or the scope and vice versa.
• This is composed of 4 or 5 phases based on the
standards of the Project Management Institute

Project Life Cycle

- The 5 Phases of Project Management is also called
the Project Lifecycle. The 5 Phases of Project
Management consist of:
• Project Initiation Phase
• Project Planning Phase
• Execution Phase
• Monitoring and Control Phase Triple Constraint
• Project Closeout Phase - The triple constraint is the combination of three
most significant attributes of Scope, Cost and
Time of Project Management.
- The further refinement has added the additional
constraint of Quality in the PM Triangle.
 - These parameters are often used to measure the - Complete contract closures.
performance of the project and also decide success - Key outputs of this phase are:
or failure of the project. – Receive all signoffs that work is completed as
- Change in any side of the triangle affects the other per requirements.
sides of the triangle. – Index and archive all project assets – Create and
- The priority in the triple constraint is decided by document lessons learned
the Project sponsor
Planning Phase
Key Outputs of this phase are:
– Create WBS and WBS Dictionary
– Develop Schedule
– Develop Budget. Determine roles and
Responsibilities
– Develop Communication Plan
– Develop Risk Plan
– Create Performance measurement baselines
– Develop Preliminary Scope Statement
– Test Plan. Determine the Critical Path
– Prepare procurement documents
– Create Process Improvement Plan
– Gain Formal Approval of all plans and key
deliverables
Execution Phase
Use of Software
- This phase is where you do the “work” or execute
- There are several project management softwares
the plan. This phase typically requires the most
in the market.
amount of time since the majority of the work is
- Common paid software is MS Project.
done in this timeframe.
- Free project management software.
- You will solidify the team; conduct teambuilding
exercises. Hold progress and status meetings
- Follow the processes in your project plans. ProjectLibre
- Recommend changes and corrective actions. - ProjectLibre is an open source, freely available
- Continuous Improvement project management software system intended
ultimately as a standalone replacement for
- Key outputs of this phase are:
Microsoft Project.
– Signoff that key milestones are complete.
– Documented performance reports - Currently, ProjectLibre is certified to run on
Linux, MacOS and MS Windows.It is released
Monitor and Controlling Phase under the Common Public Attribution License
(CPAL) and qualifies as Free Software according
- The phase where results derived from your new
to the Free Software Foundation.
process or product are compared to the metrics
Common Terms
you outlined in your performance plan.
1. Brainstorming – the gathering of ideas related to
- Implement your change control process
project and product requirements
- Determine variances and identify if they warrant
corrective action or change
2. Work Breakdown Structure -
- Facilitate conflict Resolution a hierarchical decomposition of the total scope of work
- Use Issue Logs to be carried out by the project team to accomplish the
- Key outputs of this phase are: project objectives and create the required deliverables.
– Receive all signoffs that work is completed as
per requirements.
– Archive all project assets
– Create and document lessons learned

Project Closure Phase

- This is the final phase of the project life cycle.
- Develop closure procedures. Document final 3. Precedence Diagramming Method (PDM) - is a
performance reporting strategy for developing a project schedule network
- Handoff completed product. Release resources. diagram that utilizes nodes to represent activities and
associates them with projectiles that illustrate the
dependencies. NB. DPWH D.O. 133, s. 2015

4. Critical Path/Paths - is the longest path (in time)

from Start to Finish; it indicates the minimum time
necessary to complete the entire project.

5. Gantt Chart – a visual view of tasks scheduled over

time.

6. S-Curve - an s-curve is a mathematical graph that

depicts relevant cumulative data for a project—such as
cost or manhours—plotted against time.
PRE-CONSTRUCTION PLANNING - Initial meeting to discuss the project (1 week)
- Planning the design (2-4 weeks)
Pre-Construction - Estimating costs and offering cost-saving options
- A phase before actual construction. (1-2 weeks)
- Involves planning, designing, budgeting, and - Managing project scope (Ongoing)
scheduling. - Identifying potential issues & outlining solutions
- Ensures all stakeholders are aligned. (1-2 weeks)
Importance of Pre-Construction - Determine any options for value engineering (1-2
- Identifies design issues early. weeks)
- Prevents budget overruns. - Site selection and study feasibility (2-4 weeks)
- Sets clear expectations for clients. - Evaluating soil condition on site (1-2 weeks)
- Reduces project delays. - Checking existing utilities (1-2 weeks)
- Ensures smooth execution. - Determining equipment required (1 week)
- Check for green building options and viability (1-
11 Steps of Pre-Construction 2 weeks)
1. Define Project Scope - Life-cycle analysis (1-2 weeks)
- Establish project goals and objectives - Outlining contingencies for both client and
- Identify key deliverables and requirements contractor (1 week)
- Determine responsibilities of each stakeholder Project Organization
2. Assemble the Construction Team - The term project organization refers to the style of
- Select key personnel (architects, engineers, coordination, communication, and management
contractors) the project team uses throughout a project
- Assign responsibilities lifecycle. By applying project organization, you
- Establish effective communication channels optimize resources, provide clear communication
3. Establish Budget about roles and responsibilities, and reduce
- Estimate total project cost potential roadblocks.
- Consider material, labor, and contingency - Project managers use project organization to align
costs team members before and during a project. The
- Align budget with client’s financial capacity process minimizes disruption to your workflow
4. Create a Development Plan and conflict among team members, as well as
- Define construction phases leads to maximum productivity among team
- Identify dependencies between tasks members involved in a project.
- Allocate resources efficiently - Creating and communicating a project
5. Assess the Design management organization structure is one tool to
- Conduct structural and feasibility analysis help connect strategy and vision across those
- Identify potential design issues involved in the project. Developing a project
organization structure ultimately reduces
- Adjust plans if necessary
disruptions, overlaps, conflicts, uncertainty, and
6. Source Materials
confusion before a project even begins.
- Choose appropriate materials
- Consider durability and cost-efficiency Organizational Structure
- Identify suppliers and logistics - A project management organizational structure is
7. Obtain Permits used to determine the hierarchy and authority of
- Secure necessary government approvals people involved in a specific project. The structure
- Comply with building codes and zoning laws defines each team member’s function and the
- Avoid legal delays reporting lines on a chart for team members to
8. Schedule Construction Phases reference during a project.
- Break down project into timelines Types of Project Organizational Structures
- Assign deadlines for each phase 1. Functional Project Organizational Structure
- Ensure efficient workflow - A functional project organizational structure
9. Complete Essential Tasks organizes its hierarchy around traditionally
- Finalize construction contracts
functioning departments. A functional manager
- Conduct soil testing and site analysis
heads each department and reports to an
- Complete required documentation
10. Conduct Inspections executive. These functional managers — not
- Perform site inspections other staff — coordinate the project, and they
- Ensure compliance with safety regulations select team members from each department to
- Address any issues before construction starts support the project, in addition to their functional
11. Maintain Communication responsibilities.
- Keep all stakeholders updated - Pro: Optimal Resources, Familiarity, Operational
- Address concerns promptly
Efficiency
- Ensure smooth coordination
Pre-Construction Checklist
- Con: Missing the Right People, Competing than the functional managers, coordinate the
Priorities of Team, Siloed project (but the functional manager maintains
- Management Priorities for a Project Manager: decision-making authority).
PM Authority, Communication Facilitation,
Coordination, Teamwork Emphasis, Continuous
Goal Charity

b. Balanced Structure
- In a balanced matrix, the project manager also
holds a staff position and does not utilize the
project manager role to its full capacity. The
project manager still has little authority over
2. Projectized Organizational Structure project decisions, budget, staff, etc., and primarily
- A projectized or project-based organizational serves as the point of contact and coordinator.
structure creates a dedicated project division
within an organization. The project coordination
operates vertically under this division. Project
managers maintain sole authority for the project
and are assigned dedicated staff who work toward
project goals.
- Pro: Authority, Clarity
- Con: Resource Duplication, Stunted Team Growth
- Management Priorities for a Project Manager: PM
Authority, Role Responsibility, Maintain Team
Morale, Communication c. Strong Structure
- A strong matrix is most similar to a projectized
organizational structure. In it, a dedicated project
manager falls under a functional project
management department, has dedicated cross-
functional staff, and is supported by a manager of
all the project managers. This subtype offers the
project manager the most authority as they work
across a matrixed environment.

3. Matrix Organizational Structure.

- An organizational structure that facilitates the
horizontal flow of skills and information. It is used
mainly in the management of large projects or
product development processes, drawing
employees from different functional disciplines
for assignment to a team without removing them
from their respective positions. Features of an Organizational Structure
- Pro: People Optimization, Flexibility, Project - Hierarchy
Control - Division Of Labor
- Con: Costs, Workload Miscommunication, - Span Of Control
Increased Conflict - Position Type (Line Vs Staff)
- Management Priorities for a Project Manager: - Centralization
Medium PM Authority, Influencing and How to Make a Project Organizational Chart
Negotiation Skills, Servant Leadership, Open STEP 1: Align the Project with Organizational
Communication Lines, Team Recognition. Strategy.
a. Weak Structure STEP 2: Analyze Projects on an Organizational Level.
- A weak structure is similar to the functional STEP 3: Determine Roles and Responsibilities.
organization structure, in which coordination STEP 4: Structure the Chart.
occurs horizontally among staff without a STEP 5: Finalize the Organizational Chart.
designated project manager. The primary STEP 6: Communicate.
difference between a weak matrix and a functional What to Consider When Making a Project
structure is that the staff across departments, rather Organizational Chart
- Decision Making
- Design
- Balance
Design Structure Matrix
- Design Structure Matrix (DSM, also known as
Dependency and Structure Modelling) techniques
support the management of complexity by
focusing attention on the elements of a complex
system and how they relate to each other. DSM‐
based techniques have proven to be very valuable
in understanding, designing, and optimizing
complex system architectures such as those of
products, organizations, and processes.
- A Design Structure Matrix (DSM) is crucial in
managing complex systems, processes, and
projects efficiently. Its importance lies in its ability
to visualize, analyze, and optimize dependencies,
leading to improved decision-making and
performance.
 DEVELOPING THE PROJECT PLAN & WORK - Feasibility Study Business Plan
BREAKDOWN STRUCTURE
• Business Plan
DEVELOPING THE PROJECT PLAN
A project plan takes into account the approach the PERFORMACE MEASUREMENT BASELINES
team will take and helps the team and stakeholders (PERFORMANCE MEASURES)
documents decisions made regarding the objective,
scope, schedule, resources, and deliverables. Project’s approved starting points (cost, scope, and
schedule) (cost, scope, and schedule)
PROJECT PLAN VS. PROJECT CHARTER Allows you to efficiently manage how a change in one
Project Plan monitor and how a change in one component affects
the others.
It represent the above in the planning in software Easier to accurately estimate costs, assess performance
or Excel, showing the activities, relationship, and calculate Easier to accurately estimate costs,
resources, critical path, etc. assess performance and calculate earned value.
Project Charter
Project Scope
It is a formal short document formal short
• A written document of your project scope Way to set
document. It is a that states a project exists and
boundaries on your project and define
provides project managers authority to begin. The
project charter comes before your plan. Once your • Way to set boundaries on your project and define
charter has been approved, you can create a exactly what goals, deadlines, and project
approved, you can create a project plan. deliverables. exactly what goals, deadlines, and
project deliverables
Work Breakdown Structure (WBS) Project Schedule
• Is a timetable that organizes tasks, resources, and due
dates in an ideal sequence so that a project can be
completed on time.
Project Cost
• Are projected Are projected budgets that predict the
overall cost of a budgets that predict the overall cost
of a project in a particular period

MEASUREMENTS BASELINES
Project Scope
• Our scope statement could be a section of your project
Project Plan plan section of your project plan, or it could be its own
- is a blueprint of the goals, objectives, and tasks stand-alone document.
your team needs to accomplish for a specific • If you’re working with an external team or agency,
project. you may turn your project scope statement into a
- include information about your project schedule, statement of work (SOW) to cement the agreement
scope, due dates, and deliverables. between you and your client.
- Ideas and execution strategies need to be • Align with any important project stakeholders, ensure
methodical (follow a series of steps), specific, and that you’re all on the same page.
clear
- Is a series of formal documents that define the Project Objectives
execution and control stages of a project.
• Start with your project objectives
- The plan includes considerations for risk - Project objectives are the assets you plan to deliver
management, resource management, and
by the end of your project
communications, while also addressing scope,
- You can do this by using the SMART methodology
cost, and schedule baselines
▪ Specific: simple, sensible, significant
COMPONENTS & DOCUMENTS
▪ Measurable: meaningful, motivating
• Performance Measurement Baselines ▪ Achievable: agreed, attainable
(Performance Measures)
▪ Realistic: reasonable, realistic and resourced, results-
- Scope Documentation based
- Work Breakdown Structure (WBS) ▪ Time Bound: time-based, time-limited, time/cost
• Baseline Management Plan limited, timely, time-sensitive
- Communication Plan Resource Management Plan
- Risk Management Plan
• How project resources should be categorized, • They are also called time-phased budgets
allocated, managed, and released. because they are budgets that are linked to
- Resources - complete list of all the resources you will specific time period.
need, from people to machinery, equipment, and
spaces.
Scope Document
- Timeframes – track the time needed for each
resource. • A piece of a formal documentation outlining
- Quantity - an idea of what resources will be needed at both product scope and project scope.
a given time, and the quantity of the same. • Is a legally binding document that captures
- Assumptions and Constraints – include assumptions and defines all the work management aspects
about the availability of employees, assumptions about of your project.
work commitments, etc. • A detailed overview of the project document
- Roles and Responsibilities – clarify the roles and • Also help to avoid conflicts in the project.
responsibilities of each member working on it.

PROJECT SCHEDULE Elements:

• Is a timetable that organizes tasks, resources, and
1. Rationale
due dates in an ideal sequence so that a project can be
2. Key Objectives -
completed on time.
3. Statement of Work
• Is a visual list of tasks or activities placed in
4. Deliverables
chronological order, which lets project managers view
5. Key Milestones
the entirely of the project plan in one place.
6. Major Constraints
7. Project Assumptions
Project Schedule Included
8. Scope Exclusions
• Deliverables - The output that is completed during a
construction project.
• Tasks - any and all activity incidental to the erection, Rationale - argument in favor of implementing the
demolition, assembling, altering, installing, or proposed project by your organization
equipping of buildings.
Deliverables – quantifiable goods or services that
• Task start and end dates - These entail the dates need to be provided
when the task will start and end.
• Work Packages – is a unit of the first level of a 2 Types of Deliveries
project’s scope breakdown, defines a logical and
1. Tangible and Intangible
manageable division of work within the construction
2. Internal and External
scope.
Key Milestones – key event or action in a project
• Task duration and project timeline – the actual time journey that marks a significant stage of progress
it takes to complete a task.
• Budgets – an estimate of the money required to take a Constraints – three primary constraints should be
construction project from initiation to closure. familiar with are Time, Scope, and Cost
• Resource availability - includes information about
Assumptions – conditions accepted to be true for your
what resources you can use on your project
project to function smoothly
• Schedule risk analysis – is a process to determine the
achievability of a schedule and its chance of meeting Exclusions – Work that is over and beyond the current
the project’s defined goals. scope of a project, initiative, or program

SCOPE CREEP

• Project deliverables exceed the project

scope
• Project suffer from scope creep = which
lead to project delays, overwork or low-
quality deliverables
• Prevent scope creep = create a solid
project scope statement and communicate
Project Cost

• Are projected budgets that predict the overall Cause of Scope Creep
cost of a project in a particular period.
 • Unclear Scope Requirements • Set objectives
• Poor Communication • Risk identification (3 types: Financial
• Settling Unrealistic Deadlines risks, Environmental Risks, and Technical
Risks)
• Risk analysis
Prevent Scope Creep
• Risk response planning
• Develop Well Defined Project Scope • Risk monitoring
• Conduct Proper Research
• Establish Communication Risk Assessment Matrix
Evaluate the severity of the risk
WORK BREAKDOWN STRUCTURE (WBS)
Describe the possible damage or impact of risks:
• By breaking down the project into smaller
components, a WBS can integrate scope, • 1 = None or slight
cost, and deliverables into a single tool • 2 = Minimal
5 terms • 3 = Significant
1. Acceptance Criteria – standards to be • 4 = Major
met to achieve customer requirements • 5 = Catastrophic
2. Budget – expenses associated with the
project Evaluate the likelihood of risk
3. Deliverables – the product, service, or
results Assess the probability of certain risk occurring
4. Milestones – standards to be met achieve
customer requirements • 1 = Rare
5. Phases – stages of project • 2 = Unlikely
• 3 = Possible
• 4 = Probable
BASELINE MANAGEMENT PLAN • 5 = Almost Certain
1. COMMUNICATION PLAN
2. RISK MANAGEMENT PLAN
3. FEASIBILITY STUDY

Communication Plan

• An agreement between collaborators and

stakeholders that outlines what, when and
how the information will be shared at key
intervals.
Elements:
Risk Response Planning
• Key stakeholders • Risk Avoidance
• Team members • Risk Transfer
• Communication methods • Reduce the Probability
• Communication type • Risk Acceptance
• Communication Style
• Meeting Schedule Risk Monitoring
• Key messages The best thing a project manager can do is to identify,
• Communication goals analyze, and monitor risks. As the environment,
stakeholders, and even requirements change, the
RISK MANAGEMENT PLAN nature of risks and planned responses should be
change.
• Documents potential risks to an
organisation, and the steps employees FEASIBILITY STUDY
should take to keep those risks at • Feasibility studies in the construction sector
acceptable levels. are preliminary studies undertaken at the very
Elements:
 early stages of a project. They tend to be
carried out when project is large or complex.
Elements: Quality of WBS

• Technical • Definable
• Economic • Manageable
• Legal • Estimateable
• Operational • Independent
• Scheduling • Intergratable
• Measurable
• Adaptable
Risk Analysis
When planning a construction project, spend some
Types of WBS
time creating a risk assessment matrix, a tool that was
1.Deliverable-based Work Break Structure
design analyze risks.
2.Phase-based Work Breakdown Structure
- Recognize Hazards
- Analyse the risks There are several less-common approaches to
WBS. These include the following:
1. Verb-oriented Work Break Structure
BUSINESS PLAN 2. Noun-oriented Work Break Structure
3. Timed-phased Work Break Structure
If the construction project is a commercial one, the
project should include a business plan.
WORK BREAKDOWN STRUCTURE 1. A Deliverable-based Work Breakdown Structure
breaks the project into different areas of project scope.
For projects, the WBS is the tool that utilizes these For example, deliverables and work packages. This
techniques and is one of the most important project type of WBS defines the project by the individual
management documents. It single handedly integrates deliverables, rather than phases, needed to complete
scope, cost, and schedule baselines ensuring that the project
project plans are in alignment.
2. A Phased-based Work Breakdown Structure
divides the project into different phases. A phased-
• Work based WBS has the project or deliverables at the top,
• Breakdown with different layers that break the project into phases
• Structure of work.
• Deliverables
LEVELS OF WORK BREAKDOWN
• Oriented
STRUCTURE
• Hierarchical
• Decomposition WBS DIAGRAM

• Top Level
CONCEPT • Control Account
- Overview • Work Packages
- Deliverables • Activities
- Design
- Management TYPES OF WBS CHARTS
- Organizational Perspective
- WBS Levels - WBS List
- WBS Tree Diagram
- WBS Gantt Chart
THE 100% RULE - WBS Spreadsheets
The core characteristic of the WBS. This rule states
that the WBS includes 100% of the work defined by WBS List - also known as outline view, is a list of
the project scope and captures ALL deliverables- work, packages, tasks, and deliver.
internal, external, and interim-in terms of work to be
completed, included project management. WBS Tree Diagram – is an organizational chart that
has all the same WBS elements of the list but
represents the workflow or progress as defined by a
diagrammatic representation.
WBS Gantt Chart – both a spreadsheet and a timeline
WBS Spreadsheets - complex projects use
spreadsheets to explain their scope. Have more space
and ability to accommodate details, data, highlight
dependencies, etc.

WHEN TO USE A WBS?

- Scope of work – comprehensive document
that explains your project scope
- Statement of work – legally binding
document between a client and the
organisation who’s responsible for executing
a project
- Work order – to show the costs associated
with each task

LEVELS OF WORK BREAKDOWN

STRUCTURE
Creating a work breakdown structure in 6 steps
1. List of all tasks
2. The task clusters
3. Define work packages
4. Assignment of responsibilities to the work
packages
5. Define start and end dates of work packages
6. Documentation of the created WBS

Poorly Created WBS

• Incomplete project definition leading to

ongoing project extensions
• Unclear work assignments, goals, objectives,
or deliverables
• Scope creep or unmanageable, frequently
changing scope
• Budget overrun
• Missed deadlines on scheduled deliverables,
or timeline slippage
• Unusable new product or feature
• Failure to deliver on some elements of project
scope
PRODUCTION PLANNING PROCESS OF PRODUCTION PLANNING

• Involves developing a comprehensive strategy • Estimate product demand

for making the company’s products and • Choose the most efficient option
services • Adjust plan
• Describes in detail how a company’s products • Weigh production options
and services will be manufactured • Monitoring and evaluation
• Defines the production targets, required
resources and overall schedule PRODUCTION SCHEDULING

• involves the allocation of available resources

PROCEDURE OF PRODUCTION PLANNING to production processes and events
• DEMAND PRODUCTIONS • For planning the use of factory equipment and
resources as well as human resources and
 Design the facility layout
material purchasing
 Preparation of production budget
 Prescribe the types of machines and
equipment to be used
 Appropriation on of production
TYPES OF PRODUCTION PLANNING
requirements
• SCHEDULES • Master Production Schedule - schedules
 The shortage or excess of the product for individual, specific commodities to be
is ascertained in relation to efficiency produced in each time period.
of labor and equipment. • Material Requirements Planning
 Plans are drawn in case of sudden - ensures the availability of raw materials,
urge in demand maintains the lowest possible material and
• RATE OF PRODUCTIONS product levels in-house, and plans
manufacturing and purchasing activities.
THREE MAIN TYPES OF PRODUCTION • Capacity Planning
PLANNING: - determines what capacity, if any, an
organization possesses to meet changing
• Batch production planning
demands.
• Job or project-based planning
• Workflow Planning
• Flow production planning - planning of sequence of operations
performed by an employee or group of
STEPS OF PRODUCTION PLANNING employees.
Step 1: forecast product demand CONSIDERATIONS FOR PROPER
Step 2: map out production steps and option PRODUCTION PLANNING

Step 3: choose a plan and schedule production • Material

• Labor
Step 4: monitor and control • Costing Methods
Step 5: adjust accordingly
END-TO-ENDMANUFACTURING - gives
COMMON PRODUCT PLANNING MISTAKES creators the control they need to get their products to
the masses on time and within budget.
• Not anticipating hiccups along the way
• Keeping your distance BENEFITS OF AN END-TO END
• Failing to maintain equipment PRODUCTION PROCESS

ROLE OF PRODUCTION PLANNING • Cost Effective

• Reduced Error Rate
• Critical to ensure the production process runs • Scalability
smoothly, efficiently and delivers products on • Personal Service
time • Increased Output
 • Predictability Environmental Adopt approaches and
• Transparency impact measures such as:
• Turnkey Capabilities • green
construction,
• life cycle
MAIN CHALLENGES AND SOLUTIONS OF assessment,
PRODUCTION PLANNING IN • environmental
CONSTRUCTION management
systems,
CHALLENG SOLUTIONS • waste
ES management.
production planners
should employ skills
Stakeholder and techniques such as:
satisfaction • stakeholder
analysis,
• engagement, METHODS OF PRODUCTION PLANNING
• communication
, and • Job Planning
• feedback • Batch Planning
Utilize flexible and • Flow Planning
adaptive strategies like: • Process Planning
Uncertainty • lean • Mass Production Planning
and variability construction
• agile project
management 7 EXAMPLES OF SOLUTIONS THAT
• risk AUTOMATE PLANNING AND MANAGEMENT
management IN CONSTRUCTION
Employ tools and
techniques like:
Resource • resource • Client Relationship Management
management leveling, - Is a complex data management solution
• resource that enables users to store their contacts
allocation (clients, partners, subcontractors, and
• resource insurance adjusters) in one place.
scheduling • Construction Estimation and Bidding
• inventory Software
management
- Tools like on-screen takeoff and heavy bid
Integration Utilize methods and
and systems such as: help construction companies estimate the
coordination • Building project and manage that bid, analyze
Information subcontractor and supplier quotes, and
Modeling assign quantity values to estimate
• Integrated assembles.
Project • Construction Budgeting Software
Delivery
- allow users to track expenses, estimate job
• Production
costs, and timely proceed with bank
control
systems. transactions.
implement strategies • Construction Architecture And Design
and practices such as: Software - tools like autodesk bim 360,
Quality • quality sketchup, and vectorworks architect help
control assurance, construction companies identify any potential
• quality design and construction issues and revise
inspection, building plans
• quality
improvement, • Construction Project Management
• quality Software - backbone of any project, helps
feedback. both residential and commercial players avoid
delays and cost overruns by offering 360-
degree overview of the project when it comes
 to communication, document and cost
management.
• Job site Management Software - come in all
shapes and sizes. Tools like companycam are
photo-based solutions for contractors.
• Construction Data Analysis Software -
performs historical data analysis and helps
users identify patterns with data visualization
and report templates