1.040/1.401
Project Management
Spring 2007
Course Introduction
Dr. Fred Moavenzadeh
Dr. SangHyun Lee
Dr. Samuel Labi
Department of Civil and Environmental Engineering
Massachusetts Institute of Technology
Outline
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Introduction
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Course Information
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Lecture Outline – Before Spring Break
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Lecture Outline – After Spring Break
Instructors
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Dr. SangHyun Lee
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Dr. Samuel Labi
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Visiting Lecturer at MIT
Consultant at CRA International
Visiting Professor at MIT
Assistant Professor at Purdue University
Dr. Fred Moavenzadeh
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James Mason Crafts Professor at MIT
Director, Center for Technology, Policy, & Industrial Development
Director, Technology and Development Program
T.A.
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To Be Announced
Students
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Your Background, Interest, and Expectation
Project Management
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What is it?
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Focus of Class – Construction Projects
Outline

Introduction
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Course Information
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Lecture Outline – Before Spring Break

Lecture Outline – After Spring Break
Class Schedule
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Lectures: Monday & Friday 1– 2:30 PM
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Recitation : 4 - 5 PM
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Participation encouraged!
Discussion/readings
Videos / case-studies
Guest lectures
Tours
Lectures and recitations both in 1-371
Office Hours:
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MF 3-4pm (Rm 1-180)
by appointment ([email protected], [email protected], [email protected])
Lecture
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Before Spring Break - Dr. SangHyun Lee
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Project Financing & Evaluation
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Project Organization
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Estimation
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Project Planning
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Project Dynamics
After Spring Break - Dr. Samuel Labi
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Resource Planning
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Project Control
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Risk Management
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Project Close-out
Last Class - Dr. Fred Moavenzadeh
Recitation
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Case-studies and videos (preliminary):
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Guest lectures:
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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
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Course communication through Stellar:
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http://stellar.mit.edu/S/course/1/sp07/1.040/
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Lecture slides posted after lectures
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Readings distributed
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Homeworks distributed and submitted through Stellar
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All files in MS Office or text format for comments
Now in STELLAR
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Syllabus (posted on Stellar)
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Course Description
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Course Organization
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Academic Honesty
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Preliminary schedule
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Survey (AS 1)
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Term Project Part I (TP 1)
Textbooks & References
Required Readings
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“Project Management for Construction” by Hendrickson
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http://www.ce.cmu.edu/pmbook/
Recommended Reading
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“Construction Nightmares” by O’Leary and Acret.
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Meredith, J. and Mantel, S., (2000) Project Management: A
managerial Approach, J. Wiley & Sons New York
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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
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Attending both lectures and recitations is required
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Students are strongly encouraged to participate in discussions
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Please interrupt presentations/videos at any point for interactive
discussions
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Read assigned material before lecture!
Grading
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Individual Participation
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15%
In lecture, recitation, office hours
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Assignments / Individual Grading
45%
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Term Project / Individual Grading
40%
Individual Assignment
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AS 1: Student Background
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AS 2: 10 minute Presentation
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AS 3: Business Case
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AS 4: Decision Making under Uncertainty
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AS 5: Scheduling
Term Project (1.040)
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TP 1: Preliminary Project Proposals
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TP 2: Project Details
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TP 3: Deliverables
Report
 Presentation
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Term Project (1.401)
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TP 1: Preliminary Project Proposals
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TP 2: Project Details
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TP 3: Deliverables
Report
 Presentation
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AS 6: Essay
Grading Details
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Extra credit assignments: More work  more credit
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Late Assignments: Reduced 10%/day (compounded) up
to 7 Days
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Group Term project grade (adjusted individually)
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For Individual Assignments: Share with others ONLY
concepts and problems
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Academic Honesty Statement
Academic Honesty
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Individual Work Only Allows for Group Discussion of
Concepts and Problems
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Do Not Copy Previous Year Work
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Reference Any Source
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When Confused Ask Instructor
Outline

Introduction

Course Information

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
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Understanding project finance and evaluation
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Helps understand economic challenges faced by owner
and contractor
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Risk management
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Deciding on fundamentals of contract
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Delivery systems (organizational method)
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Contract type (how pay?)
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Award method (how decide who hired?)
Construction Phases
& Class Topics
FEASIBILITY
ANALYSIS
DESIGN
DEVELOPMENT
PROJECT
MANAGEMENT
CLOSEOUT
OPERATIONS
DIVESTMENT
Design Phase
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Estimation
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Successive estimates produced
Planning & Scheduling
WBS
 Deterministic & probabilistic scheduling
 Resource planning
 Simulation
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Project Dynamics
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As-planned vs. as-built (e.g., errors and changes)
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Significant of feedbacks - Counter-intuitive effects of
policies (e.g., overtime)
Outline

Introduction

Course Information

Lecture Outline – Before Spring Break

Lecture Outline – After Spring Break
Construction Phases
& Class Topics
FEASIBILITY
ANALYSIS
DESIGN
DEVELOPMENT
PROJECT
MANAGEMENT
CLOSEOUT
OPERATIONS
DIVESTMENT
2nd Half of Project Management Course
1. The phases of
- Development
- Close Out
2nd 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
2nd 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.)
2nd 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
2nd 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
2nd 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
2nd 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
(a) measuring project progress at any given point in time,
(b) updating forecasts of completion date and final cost,
- Is an early warning system to detect deficient or endangered progress.
2nd 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 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)
2nd Half of Project Management Course
1. The phases of
- Development
- Close Out
2. Related Topics
- Risk and Uncertainty, etc.
Posted homework
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Assignment 1 – Review
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Due by February 12, midnight
Term Project Phase 1 - Preliminary Project
Proposals
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Due by February 16, midnight