1 : The Management of Construction Projects Between the idea And the reality… Between the conception And the creation Falls the Shadow T. S. Eliot © Graham M Winch I : Introduction 1 Module Objectives • to provide a synthesis of learning on the management of construction projects • to present the discipline as a whole, rather than a set of disparate parts • to provide framework for professional engagement with the management of construction projects • to make you think! © Graham M Winch I : Introduction 2 The Management of Construction Projects • projects as the creation of new value • the project as an information processing system • project management and the management of projects • projects and resource bases • the five generic project processes • relationship to PM bodies of knowledge © Graham M Winch I : Introduction 3 Projects as the Creation of New Value • the dynamism of modern society • the role of deliberate change – most deliberate change involves construction • creating new assets for exploitation – private gain – public good • the new value creation cycle © Graham M Winch I : Introduction 4 The New Value Creation Cycle profits financial resources new firm firm firm value human resources learning NEW VALUE CREATION © Graham M Winch I : Introduction 5 The Project as an Information Processing System • all organisations are information processing systems – the heart of any business process • flows are enabled by structure; structure is shaped by flows – the river analogy • the definition of uncertainty – the lack of information required for a decision © Graham M Winch I : Introduction 6 The Definition of Uncertainty uncertainty amount of information required for the decision amount of information available © Graham M Winch I : Introduction 7 The Definition of Uncertainty • two sources – complexity – predictability • two modes – mission – dynamic • the dynamic reduction of uncertainty through time © Graham M Winch I : Introduction 8 The Dynamic Reduction of Uncertainty Through Time inception completion NONE ALL mission uncertainty : amount of information required dynamic uncertainty amount of information possessed certainty ALL NONE 0 © Graham M Winch TIME I : Introduction 9 Project Management and the Management of Projects • project management as organisational innovation • project management as “tools and techniques” • total process and the “management of projects” © Graham M Winch I : Introduction 10 Projects and Resources Bases • projects as temporary organisations • projects as mobilisers of capital and human resources • resources bases as the holders of resources • the “project coalition” – common aims and divergent interests • firms and portfolios of projects © Graham M Winch I : Introduction 11 Projects and Resource Bases PROJECTS RESOURCE BASES © Graham M Winch I : Introduction 12 The Five Generic Project Processes • • • • • defining the project mission mobilising the resource base riding the project life-cycle leading the project coalition maintaining the resource base © Graham M Winch I : Introduction 13 Relationship to Bodies of Knowledge • International Project Management Association – Association for Project Management • Project Management Institute • bodies of knowledge – the professionalisation process • relationship of course to – APM PMBoK – PMI PMBoK © Graham M Winch I : Introduction 14 APM PMBoK APM PMBoK (2000) Area General Project Management Strategic Project Management Control Project Management Technical Project Management Commercial Project Management Organisational Project Management People Project Management © Graham M Winch I : Introduction Coverage in Book Parts 1 & 4 Parts 2, 4 & 5 Parts 2, 4 & 6 Parts 4 & 5 Parts 3 & 4 Parts 3 & 4 Parts 3, 4 & 6 15 PMI PMBoK PMI PMBoK (2001) Area Coverage in this Book Project Management Framework Parts 1 & 5 Project Management Context Chapters 2 & 4, Part 5 Project Management Process Chapter 1 & Part 2 Project Integration Management Parts 3 & 4 Project Scope Management Parts 2 & 4 Project Time Management Part 4 Project Cost Management Chapter 10 Project Quality Management Chapter 12 Project Human Resource Management Parts 5 & 6 Project Communications Management Parts 2, 4 & 6 Project Risk Management Chapter 13 Project Procurement Management Parts 3 & 4 © Graham M Winch 16