1 040 1 401 Project Management Spring 2007 Course

1. 040/1. 401 Project Management Spring 2007 Course Introduction Dr. Fred Moavenzadeh Dr. Sang. Hyun Lee Dr. Samuel Labi Department of Civil and Environmental Engineering Massachusetts Institute of Technology

Outline Ø Introduction § Course Information § Lecture Outline – Before Spring Break § Lecture Outline – After Spring Break

Instructors n Dr. Sang. Hyun Lee n n n Dr. Samuel Labi n n n Visiting Lecturer at MIT Consultant at CRA International Visiting Professor at MIT Assistant Professor at Purdue University Dr. Fred Moavenzadeh n n n James Mason Crafts Professor at MIT Director, Center for Technology, Policy, & Industrial Development Director, Technology and Development Program

T. A. n To Be Announced

Students n Your Background, Interest, and Expectation

Project Management n What is it? n Focus of Class – Construction Projects

Outline ü Introduction Ø Course Information § Lecture Outline – Before Spring Break § Lecture Outline – After Spring Break

Class Schedule n Lectures: Monday & Friday 1– 2: 30 PM n n Recitation : 4 - 5 PM n n n Participation encouraged! Discussion/readings Videos / case-studies Guest lectures Tours Lectures and recitations both in 1 -371 Office Hours: n n MF 3 -4 pm (Rm 1 -180) by appointment (lsh@mit. edu, labi@mit. edu, moaven@mit. edu)

Lecture n Before Spring Break - Dr. Sang. Hyun Lee n n Project Organization n Estimation n Project Planning n n Project Financing & Evaluation Project Dynamics After Spring Break - Dr. Samuel Labi n n Project Control n Risk Management n n Resource Planning Project Close-out Last Class - Dr. Fred Moavenzadeh

Recitation n Case-studies and videos (preliminary): n n n n Guest lectures: n n n Hong-Kong/Shanghai Bank Worldwide Plaza Empire State Building Torino 2006 Winter Olympics Venues Milan New Exhibition System Etc. MIT Facility Management Large Program Development Public Private Partnership Guided tours Other to be defined Regular lectures (Project Dynamics I & II)

Course Website: STELLAR n Course communication through Stellar: n http: //stellar. mit. edu/S/course/1/sp 07/1. 040/ n Lecture slides posted after lectures n Readings distributed n Homeworks distributed and submitted through Stellar n All files in MS Office or text format for comments

Now in STELLAR n Syllabus (posted on Stellar) n Course Description n Course Organization n Academic Honesty n Preliminary schedule n Survey (AS 1) n Term Project Part I (TP 1)

Textbooks & References Required Readings § § “Project Management for Construction” by Hendrickson § http: //www. ce. cmu. edu/pmbook/ Recommended Reading § § “Construction Nightmares” by O’Leary and Acret. § § § Meredith, J. and Mantel, S. , (2000) Project Management: A managerial Approach, J. Wiley & Sons New York § § § Real stories (along with legal analyses) Can be purchased through the MIT Coop Dewey Library (put on reserve) Can be purchased through the MIT Coop also. Syllabus contains others

Participation n Attending both lectures and recitations is required n Students are strongly encouraged to participate in discussions n Please interrupt presentations/videos at any point for interactive discussions n Read assigned material before lecture!

Grading n Individual Participation n 15% In lecture, recitation, office hours n Assignments / Individual Grading 45% n Term Project / Individual Grading 40%

Individual Assignment n AS 1: Student Background n AS 2: 10 minute Presentation n AS 3: Business Case n AS 4: Decision Making under Uncertainty n AS 5: Scheduling

Term Project (1. 040) n TP 1: Preliminary Project Proposals n TP 2: Project Details n TP 3: Deliverables Report n Presentation n

Term Project (1. 401) n TP 1: Preliminary Project Proposals n TP 2: Project Details n TP 3: Deliverables Report n Presentation n n AS 6: Essay

Grading Details n Extra credit assignments: More work more credit n Late Assignments: Reduced 10%/day (compounded) up to 7 Days n Group Term project grade (adjusted individually) n For Individual Assignments: Share with others ONLY concepts and problems n Academic Honesty Statement

Academic Honesty n Individual Work Only Allows for Group Discussion of Concepts and Problems n Do Not Copy Previous Year Work n Reference Any Source n When Confused Ask Instructor

Outline ü Introduction ü Course Information Ø Lecture Outline – Before Spring Break § Lecture Outline – After Spring Break

Construction Phases & Class Topics FEASIBILITY ANALYSIS DESIGN DEVELOPMENT PROJECT MANAGEMENT CLOSEOUT OPERATIONS DIVESTMENT

Construction Phases & Class Topics FEASIBILITY ANALYSIS DESIGN DEVELOPMENT PROJECT MANAGEMENT CLOSEOUT OPERATIONS DIVESTMENT

Feasibility Studies and Preliminaries n Understanding project finance and evaluation n Helps understand economic challenges faced by owner and contractor n Risk management n Deciding on fundamentals of contract n Delivery systems (organizational method) n Contract type (how pay? ) n Award method (how decide who hired? )

Construction Phases & Class Topics FEASIBILITY ANALYSIS DESIGN DEVELOPMENT PROJECT MANAGEMENT CLOSEOUT OPERATIONS DIVESTMENT

Design Phase n Estimation n n Successive estimates produced Planning & Scheduling WBS n Deterministic & probabilistic scheduling n Resource planning n Simulation n

Project Dynamics n As-planned vs. as-built (e. g. , errors and changes) n Significant of feedbacks - Counter-intuitive effects of policies (e. g. , overtime)

Outline ü Introduction ü Course Information ü Lecture Outline – Before Spring Break Ø Lecture Outline – After Spring Break

Construction Phases & Class Topics FEASIBILITY ANALYSIS DESIGN DEVELOPMENT PROJECT MANAGEMENT CLOSEOUT OPERATIONS DIVESTMENT

2 nd Half of Project Management Course 1. The phases of - Development - Close Out

2 nd Half of Project Management Course 1. The phases of - Development - Close Out Resource Scheduling Simulation Basics of Project Monitoring and Control Changes and Claims Earned Value Analysis Quality Reviews and Audits

2 nd Half of Project Management Course 1. The phases of - Development - Close Out Resource Scheduling Simulation Basics of Project Monitoring and Control Changes and Claims Earned Value Analysis Quality Reviews and Audits Resource Scheduling - How to allocate resources ($, time, etc. ) to execute a given task efficiently -Trade offs between conflicting/competing resources Tools: graphical analyses, programming (linear, integer, heuristic, etc. )

2 nd Half of Project Management Course 1. The phases of - Development - Close Out Resource Scheduling Simulation Basics of Project Monitoring and Control Changes and Claims Earned Value Analysis Quality Reviews and Audits Simulation - Involves mathematical description/representation of the management process - Helps identify optimal schedules and decisions - Helps to quickly determine impact of alternative schedules -Tools: algorithms implemented on computers

2 nd Half of Project Management Course 1. The phases of - Development - Close Out Resource Scheduling Simulation Project Monitoring and Control Changes and Claims Earned Value Analysis Quality Reviews and Audits Project Monitoring and Control -How to track your project costs, schedule (time), and other resources - Helps ascertain whether targets are being met - Needed so that due changes can be made to schedule as and when necessary

2 nd Half of Project Management Course 1. The phases of - Development - Close Out Resource Scheduling Simulation Basics of Project Monitoring and Control Changes and Claims Earned Value Analysis Quality Reviews and Audits Changes and Claims -What are the causes of time delays, cost overruns, change orders? - How can such problems be prevented or mitigated - Conflict resolution

2 nd Half of Project Management Course 1. The phases of - Development - Close Out Resource Scheduling Simulation Basics of Project Monitoring and Control Changes and Claims Earned Value Analysis Quality Reviews and Audits Earned Value Analysis -is a snapshot in time (as the project is in progress) - compares work plan vs. actual work progress - is a standard method of point in time, final cost, (a) measuring project progress at any given (b) updating forecasts of completion date and - Is an early warning system to detect deficient or endangered progress.

2 nd Half of Project Management Course 1. The phases of - Development - Close Out Resource Scheduling Simulation Basics of Project Monitoring and Control Changes and Claims Earned Value Analysis Quality Reviews and Audits -Quality Control (typically done by owner’s inspectors at the end of major production phases. - Quality Assurance (typically done by contractor throughout the production, incl. raw materials - Audits and QA/QC Reviews (retrospective in nature)

2 nd Half of Project Management Course 1. The phases of - Development - Close Out 2. Related Topics - Risk and Uncertainty, etc.

Posted homework n Assignment 1 – Review n n Due by February 12, midnight Term Project Phase 1 - Preliminary Project Proposals n Due by February 16, midnight