Welcome to Major engineering project performance
Think about the construction of a new high speed railway, the production of a blockbuster
movie, the research involved in developing a new medicine, or the development of a new bestselling videogame. All of these are examples of major projects.
More and more companies are involved in project-based work. Unfortunately, the majority of these projects run over schedule, come in over budget and fail to deliver as many benefits as expected. Astonishingly, this is common across all industries, all over the world. This may be the case in your own company, or a company you are familiar with, and so it is important that we think about how we can resolve
these issues.
This specialization will help you do this by teaching you the theory and practice related to managing a
major engineering project.
The specialization
This course is part of the Managing Major Engineering Projects Specialization. This specialization is
based on content from the University’s Online MSc in Engineering Management. If you are interested in
developing your career further, take a look at our online degree.
Learning for general interest
If you have a general interest in this topic, you can just work through the lessons at your own pace. You
will have the opportunity to test your understanding and spend some time joining the discussions. It is
important that you don’t feel pressured to complete all the elements of the course – your learning journey is individual to you, and you should decide what elements are relevant to your learning needs.
Introduction
Your instructor
Your instructor for this course is Dr Giorgio Locatelli. Giorgio is a lecturer of Infrastructure Procurement and Management at the University of Leeds.
Giorgio also works as a consultant and visiting academic for several institutions. He is author of more
than 90 international publications, the majority of them focussed on major projects, nuclear power, project management, energy economics and policy, and energy storage. He is a Chartered Engineer and a
Fellow of the Higher Education Academy (HEA). You can stay up to date with Giorgio's research and
teaching by following him on Twitter:@LocaGiorgio.
The course
This coursemap provides a quick overview of the five weeks ahead. Each week you will work through a
series of lessons. Each lesson contains a series of learning pages.
You can get an overview of the course by viewing or downloading the learning outcomes and syllabus for this course. The learning outcomes for each lesson are displayed in the lesson overview.
This course will introduce the topic of projects and major projects. You will explore the peculiarities of
projects and their life cycle, and learn how projects relate to programmes and portfolios. You will also
consider what constitutes project success.
Successful completion of this course will help you to:

identify the key characteristics of projects, programmes and portfolios

understand the key challenges in the delivery of a major project

interpret the performance of historical major projects

discuss major project performance related to time and budget and explain the causes for
major projects to often go over budget and be delayed

describe the success of a project according to different criteria and stakeholders’ perspective.
Throughout the course, case studies will illustrate how major engineering projects are planned and delivered.
Learning with your peers
The course is designed so you can share your own experiences of project management, whilst learning
from the experiences of other learners. To maximise your opportunities for learning we recommend you
to use the discussions and opportunities for peer assessment. Learning and reflecting with others will
enrich your learning experience.
So, there is quite a journey in front of us. In a sense this is also a project which we will work on together. I hope you enjoy the course.
Research and further reading
Throughout this course, you will be asked to engage in independent research and discussion
on the topic of major projects. There is a wealth of information in news coverage, government
reports and academic articles about major project planning, delivery and performance.
To help you get started in exploring this topic more widely you might like to consider how to approach
sourcing appropriate materials.
Ways to search
There are a number of tools you can use to locate information or examples of case studies. Using an internet search engine is a good place to start.
Search engines use algorithms to provide you with a list of internet sources based on keywords you
have entered. The results listed are ordered by the search engine based on how you input your search
terms.
When looking for examples of major projects, you might find it useful to search for news items or short
opinion pieces. These can be found using general search engines.
Google News
Google News provides up-to-date lists of news articles relating to a chosen topic. You could begin by
thinking about a major project you have heard about in the news and searching for relevant articles,
analysis or discussion.
Project management sites
You might also find the blogs and analysis provided by dedicated project management websites to be a
great way of starting to explore the learning content in more detail. The discussions and case studies
presented by these websites will help you apply your learning in a practical context and may illustrate
how the theory discussed in this course is applied in real-life scenarios.
Some key websites include:
Association of Project Management
Project Management Institute
International Project Management Association
Useful videos can be found from:
National Geographic Megastructures
It is likely that exploring this variety of sources will give you a range of answers and approaches to your
question or topic. Getting information from a number of different sources will help you to formulate your
own point of view on a topic. This is particularly important when you start to research your peer review
assignment in Week 5 of this course.
Where you are using materials from another source it is important that you acknowledge this. In Week 5
of this course you will be introduced to the principles of academic referencing in preparation for your
research assignment.
Throughout the course you’ll be asked to share and reflect on your professional practice. You
may draw on work you are currently involved in, but please make sure you do not share any
sensitive information related to your company or organisation.
You might also find it useful to save a copy of any links to materials you have found particularly interesting or inspiring. This may be helpful when preparing for your future research, study or practice.
Further reading
You might like to read the following books to help you make the most of the course content.
Burke, R. 2013. Project Management - Planning and Control Techniques 5th Edition. Chichester: John
Wiley and Sons.
Merrow. E. 2011. Industrial Megaprojects: Concepts, Strategies, and Practices for Success.Chichester:
John Wiley and Sons.
Turner, R. 2014. Handbook of Project-Based Management. Leading Strategic Change in Organizations 4th Edition. London: McGraw-Hill Education.
Lesson summary
You have completed this lesson.
You have explored the course overview and been introduced to your fellow learners. You have also
identified yourself as part of a global learning community.
What's next?
In the next section you will be introduced to the definition of a project.
WHAT IS A PROJECT?
Lesson overview
This lesson provides you with an introduction to projects and how they differ from a company’s
day-to-day operations. You will also explore project management and the role played by the project manager.
Successful completion of the lesson will help you to:

understand the definition of a project

identify the key characteristics of projects

compare and contrast projects with operations

understand the role of a project manager.
By the end of this week you will have demonstrated that you have met the following course learning
outcomes:

identify the key characteristics of projects.
Throughout this course there are a number of key phrases and terms used which you may be unfamiliar
with. The glossary here is adapted from the terminology used by the Project Management Institute.
Please refer to this Glossary of Project Management Terms
What is a project?
People have been undertaking projects for millennia, as humanity realised the benefits of working as an organised community rather than as individuals.
Throughout human history there have been many examples of projects such as:

projects made by our prehistoric ancestors including the design and building of Stonehenge in the United Kingdom

the construction of structures such as the Egyptian pyramids and the Great Wall of China

the Apollo Project to send people to land on the moon.
The term project is frequently used in everyday conversations, describing what people would like to do
at the weekend or in the next five years. You are describing a project when these conversations identify
clear goals with constraints of time and budget.
Characteristics of a project
A project has specific characteristics that distinguish it from ongoing work or business operations.
Projects are temporaryand unique in nature; they are not an everyday business process. They have definitive start and end dates and can last days, weeks, months or years. This characteristic is very important because you dedicate a large part of the project effort to ensuring that the project is completed
at the proposed time. You develop schedules to show when tasks should begin and end. Similarly, projects usually have a specific budget allocated to them.
Projects exist to deliver a product or service that does not already exist, so each project is unique.
Uniqueness is another key characteristic that distinguishes a project from operations work.
Operations work is routine and follows a continuous process. It often involves repetitive activities to produce the same results which do not have an end date.
You complete a project when you accomplish its goals and objectives. To accomplish these goals, you
need to organise the activities and resources and make appropriate decisions. Sometimes projects end
when you determine that the goals and objectives are not achievable or when the product or service is
no longer needed and the project is cancelled.
How do you define a project?
You will consider two definitions:
According to Professor Turner, an academic in the field of project management:
"A project is an endeavor in which human, (or machine), material and financial resources are organized in a
novel way, to undertake unique scope of work, of given specification, within constraints of cost and time, so as
to deliver beneficial change defined by quantitative and qualitative objectives." - (Turner 2009, p. 2).
The Project Management Body of Knowledge (PMBOK) 5th edition says that:
“A project is a temporary endeavour undertaken to create a unique product, service, or result.” - (Project
Management Institute 2013, p. 553).
These definitions are important when exploring project management. You will explore these definitions
in more detail later in this lesson.
Please refer to the glossary to check any terminology you are unfamiliar with: Glossary of Project Management Terms
Coming up...
In the following video, you will be introduced to the difference between projects and operations and you
will explore some features of projects.
Who is a project manager and what is project
management?
Managing in a project environment is different from day-to-day management.
Project management refers to the set of knowledge, skills, tools and techniques applied to manage activities in order to meet the project’s requirements. You can distinguish project management from traditional forms of management through three key functions: the person, the team, and the methodology.
The project manager is the single point of responsibility in a project. It is the project manager’s job to
set up a structure which meets the needs of: the project, the organisation, the individuals working on
the project and all the stakeholders in general.
The project manager plans, directs, and integrates stakeholder activities to achieve the project goals.
The project manager has to:

develop the project's scope and manage scope change

assess and manage risks

manage changes

manage the team

control the project’s progress and its expense.
The project manager coordinates the efforts of each organisational function, controls the budget, schedule and work tasks. Of course, numerous other people are also involved in a project and it is seen as a
team effort. The term project management means bringing together individuals from different areas and
organisations, to form a group whose composition may vary according to the nature of the project.
Please refer to the glossary to check any terminology you are unfamiliar with: Glossary of Project Management Terms
Coming up.....
In the next section you will explore the duties of a project manager.
Project management duties
A project manager needs to perform many duties to ensure a project is successful. These duties
focus on two main areas: running the project and managing the project team.
In his book Project Management Leadership, Rory Burke (2007) outlines various tasks a project manager may be required to perform. Here, you will read through the overview of Burke's description of project management duties. The table below is adapted from his work.
Management duty
Description
Select the project team
The project manager has a responsibility to identify the individuals involved in
the project and oversee their work. The manager will train and develop the
team's technical and managerial skills as required.
Establish the Project
Management Office
(PMO)
The project manager sets up the Project Management Office. This acts as a
centre of excellence for all aspects of project management, and provides a
conducive working environment.
Design the Project
Management Information
System
It is the project manager's responsibility to design the appropriate system to
plan and control the project. This is called the Project Management Information
System. They will also establish communication processes, procedures, report
formats and administration.
Management duty
Description
Estimate and tender
The project manager is involved in making approximations of costings and
developing pricing packages. This may include: developing a business plan,
carrying out a feasibility study and developing a build-method.
Network
As part of their duties, the project manager is required to develop an extensive
list of useful contacts.
Manage stakeholders
The project manager is involved in stakeholder management. This involves
identifying the key individuals involved in the project, then analysing and
managing their expectations.
Maintain client
relationships
It is the project manager's responsibility to represent the company at client
meetings and keep the client satisfied.
Manage correspondence
The project manager is expected to process all project related communications
on behalf of the company.
The project manager typically reports to the Chief Executive Officer of an organisation and performs the
tasks outlined.
Please refer to the glossary to check any terminology you are unfamiliar with: Glossary of Project Management Terms
Coming up...
In the next section you will test your understanding of the project manager's duties.
Lesson summary
You have completed this lesson.
You learned about how a project is defined, and have also explored some examples of projects and
their key features. You have also been introduced to the variety of roles performed by the project manager.
What's next?
In the next lesson, you will explore project life cycles and examine the different project phases.
LIFE CYCLE OF MAJOR ENGINEERING
PROJECT
Lesson overview
This lesson outlines the concept of the project life cycle and explains the idea of the level of influence versus the cost of change.
Successful completion of the lesson will help you to:

describe the project life cycle

understand the key characteristics of different project phases

explain the idea of the ‘cost of change’ and possibility to add value over the life cycle.
Types of project life cycles
Projects develop through a cycle known as the project life cycle. Here, you will explore different
types of project life cycle models.
There are three life cycle models to understand:

the corporate investment life cycle

the plant life cycle

the project life cycle.
The illustration below shows how each of these phases are structured.
The corporate investment life cycle
The corporate investment life cycle includes all the activities you need to carry out in relation to
a project. It develops through phases from the beginning, to the realisation of the project itself
and then to phases outlining activities you may perform after the project is concluded.
Imagine that you manage a utility company and you are thinking about building a power plant. First, you
will need to plan a strategy for how much power you want to generate and the type of power plant you
intend to construct (eg coal, gas or photovoltaic).
Next, you will carry out a feasibility study to identify the different types of power plant you could build. If
your utility company is planning to build a photovoltaic plant you need to deal with potential suppliers to
decide which size and type of plant you wish to build. You will then need to make the contract(s). Usually, you allocate the project to an Engineering, Procurement and Construction (or Contracting) company, or EPC for short.
Next, the plant is realised. It then enters into an exercise or operational phase, and finally it enters close
out or decommissioning.
The plant life cycle
The plant life cycle takes place during the realisation, exercise and close out phases of the corporate investment life cycle.
This has three phases beginning with the project phase and ending with decommissioning.
In the second phase, there is a time where the owner exercises or operates the plant before dismantling the plant. The plant’s operation usually generates money, to pay for construction costs, to provide
a return of the investment, and to create a fund to pay for the plant’s decommissioning.
The project life cycle
The project phase is the most interesting of all the phases, as this is when the project starts to
produce its output.
The project phase has four stages:
1. The concept phase is where the project team review and evaluate various possible concepts.
2. The design phase begins with designing the generic concept and then moves into exploring the details. In the example of a power plant, you will need to produce a detailed design
for construction at this stage.
3. The implementation phase is where you build the plant.
4. The last phase is the commissioning phase. Commissioning is the word typically used in
major projects. Sometimes this last phase is called a handover as it is typically where the
contractor hands over the infrastructure to the customer. In projects more generally, this
phase is called closing.
You will see that the four phases in the project life cycle are often described using different terms. For
instance, the Project Management Institute (2013) uses the terms initiating, planning, executing and
closing. You might want to familiarise yourself with the different terminology used, but the four phase
approach shown here is very typical.
In major projects, there is sometimes overlap between the four phases especially between the design
and implementation phases, but in general we can identify these different phases.
Please refer to the glossary to check any terminology you are unfamiliar with: Glossary of Project Management Terms
Coming up....
In the next section, you will review the infrastructure life cycle.
The phases of the infrastructure life cycle
Major projects have much longer life cycles than projects. The construction of a plant or an infrastructure may often involve many smaller projects.
For instance, if you are thinking about a power plant, you have pre-project activities (eg due diligence,
getting authorisation). Then you have the first project life cycle (ie the life cycle to build the plant) which
includes concept, design, implementation and handover phases.
A few years (or a decade) after the project has been completed and the plant is commissioned, you
might need to carry out a maintenance project. This is sometimes calledrepowering or upgrade, which
can happen halfway through the operations (or exercise) phase.
The diagram below shows all the different projects that may be associated with the life cycle of an infrastructure or power plant.
At the end of a power plant’s life cycle, there is the decommissioning or disposal. For a nuclear power
plant or a chemical plant, this disposal phase might be very expensive. You could describe it as a project in its own right, as it involves concept, planning, design phases and the handover of the cleaned
site.
Please refer to the glossary to check any terminology you are unfamiliar with: Glossary of Project Management Terms
Coming up....
In the following video, you will hear about the project life cycle and learn about the concept of the potential to add value versus the cost of change.
Lesson summary
You have completed this lesson.
You have identified different phases of the project life cycle and explored how they relate to project
management. You have also examined the relationship between the life cycle and the potential to add
value to a project.
What's next?
In the next lesson you will apply your understanding to create a project life cycle.
Lesson overview
In this lesson you will create a document indicating the phases of a project life cycle for one of
your own projects.
Successful completion of the lesson will help you to:

apply your understanding of project life cycle theories

create a project life cycle

critically appraise a project life cycle created by one of your peers.
On completion of this activity you will have demonstrated that you have met the following course outcome:

identify the key characteristics of projects, programmes and portfolios.
Apply your understanding: creating a project
life cycle
In the lessons this week, you have learned about the project life cycle and how it fits into the
bigger picture. Now you have an opportunity to apply this learning.
The four phases of concept, design, implementation and commission are a very typical cycle which is
applicable to a wide range of projects.
In this activity please:
1. Select a project that you are familiar with.
2. Briefly explain the project (eg designing and building a primary school in Italy or developing
a new software for managing the workforce in a hospital)
3. List the activities that you expect to take place in each phase.
You should aim to include between three and five activities for each phase of the project life cycle.
You may find it useful to draw on work you are currently involved in, but please make sure you
do not share any sensitive information related to your company or organisation.
How should I format my work?
You should begin by outlining the scope of your project before you then produce your life cycle. Produce your life cycle as a set of bullet point lists with sub-sections. We can recommend that you create
your work offline in a document and share it by copying and pasting it into the discussion on the next
page.
Throughout this course, you will create several documents as part of the in-course activities. As a matter of good practice, you should create a folder in your computer to save these documents, so that you
can return to your learning later on.
Materials cited this week

Burke, Rory. 2007. Project management leadership: building creative teams. US: Burke
Publishing.

Project Management Institute. 2013. A Guide to the Project Management Body of
Knowledge. 5th edition. Pennsylvania, Project Management Institute.

Turner, J. Rodney. 2009. Handbook of project-based management. New York: McGraw-Hill
Professional Publishing.