What is Project Management?
The management of construction
projects requires knowledge of modern management as well as an understanding of
the design and construction process. Construction projects have a specific set
of objectives and constraints such as a required time frame for completion.
While the relevant technology, institutional arrangements or processes will
differ, the management of such projects has much in common with the management
of similar types of projects in other specialty or technology domains such as
aerospace, pharmaceutical and energy developments.
Generally, project management is
distinguished from the general management of corporations by the
mission-oriented nature of a project. A project organization will generally be
terminated when the mission is accomplished. According to the Project
Management Institute, the discipline of project management can be defined as
follows:
Project management is the art of
directing and coordinating human and material resources throughout the life of
a project by using modern management techniques to achieve predetermined
objectives of scope, cost, time, quality and participation satisfaction.
By contrast, the general management
of business and industrial corporations assumes a broader outlook with greater
continuity of operations. Nevertheless, there are sufficient similarities as
well as differences between the two so that modern management techniques
developed for general management may be adapted for project management.
The basic ingredients for a project
management framework may be represented schematically in Figure 2-1. A working knowledge of general
management and familiarity with the special knowledge domain related to the
project are indispensable. Supporting disciplines such as computer science and
decision science may also play an important role. In fact, modern management
practices and various special knowledge domains have absorbed various
techniques or tools which were once identified only with the supporting
disciplines. For example, computer-based information systems and decision
support systems are now common-place tools for general management. Similarly,
many operations research techniques such as linear programming and network
analysis are now widely used in many knowledge or application domains. Hence,
the representation in Figure 2-1 reflects only the sources from which the
project management framework evolves.
Figure 2-1
Specifically, project management in
construction encompasses a set of objectives which may be accomplished by
implementing a series of operations subject to resource constraints. There are
potential conflicts between the stated objectives with regard to scope, cost,
time and quality, and the constraints imposed on human material and financial
resources. These conflicts should be resolved at the onset of a project by
making the necessary tradeoffs or creating new alternatives. Subsequently, the
functions of project management for construction generally include the
following:
- Specification of project
objectives and plans including delineation of scope, budgeting,
scheduling, setting performance requirements, and selecting project
participants.
- Maximization of efficient
resource utilization through procurement of labor, materials and equipment
according to the prescribed schedule and plan.
- Implementation of various
operations through proper coordination and control of planning, design,
estimating, contracting and construction in the entire process.
- Development of effective communications
and mechanisms for resolving conflicts among the various participants.
The Project Management Institute
focuses on nine distinct areas requiring project manager knowledge and
attention:
- Project integration management
to ensure that the various project elements are effectively coordinated.
- Project scope management to
ensure that all the work required (and only the required work) is
included.
- Project time management to
provide an effective project schedule.
- Project cost management to
identify needed resources and maintain budget control.
- Project quality management to
ensure functional requirements are met.
- Project human resource
management to development and effectively employ project personnel.
- Project communications
management to ensure effective internal and external communications.
- Project risk management to
analyze and mitigate potential risks.
- Project procurement management
to obtain necessary resources from external sources.
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