FCE 572: ENGINEERING MANAGEMENT

1. New trends in management:

a. Sustainable construction (SC)
Construction plays a crucial role in the overall economic evelopment o! nations "y
proviin# the !a"ric o! constructe !acilities that in turn !acilitate other investments$
The conse%uences o! construction to human populations alter the &ays in &hich people
live' &or(' play' an relate to one another$ In the 2)
st
century ain# value to an
economy entails eliverin# "asic environmental' social an economic services to
communities &ithout threatenin# the via"ility o! the natural' "uilt an social system
upon &hich they are epenant
*ustaina"le construction can "e e!ine as a process "y &hich a pro!ita"le an
competitive inustry elivers "uilt assets' "uilin# structures' supportin# in!rastructure
an immeiate surrounin#s &hich
Enhance the %uality o! li!e o! people an o!!er customer satis!action
+rovies !le,i"ility an supports esira"le natural an social environments
Ma,imise the e!!icient use o! resources &hile minimisin# &asta#e$
In evelopin# countries this involves reco#nisin# the essential nees o! the poor an
their concerns a"out uneven evelopment &hile payin# attention to the environmental
conservation$ *ustaina"le construction must thus "e centre on promotin# appropriate'
a!!ora"le' sa!e' e!!icient an environmentally soun proucts usin# processes that are
su"-ect to continuous revie& so as to optimise scarce resources$
Traitionally en#ineers are responsi"le !or esi#nin# an plannin# the construction'
operation an maintenance o! in!rastructure necessary to meet the increasin# eman
!or !oo' &ater' sanitation' shelter' health services' an economic security$ Most
en#ineers in evelopin# countries ho&ever -ust use sustaina"ility as a "u..&or to
accessin# !uns &hen "iin# !or pro-ects / payin# lip service to *C principles$ *C
emans that pro!essional !ace the challen#es o! actin# responsi"ly an !in the "est
"alance "et&een their technical per!ormance an protectin# the overall interest o!
communities / positively impact peoples &ell "ein#$ This &ill entail0
Manatory impact assessment / holistic to inclue social' economic' health'
environmental etc
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*ensitisation an trainin# on the "ene!its
*peci!ication that have a "ias to&ars local "uilin# materials / this is
avanta#eous to the economy' ensures preservation o! cultural value an herita#e'
promotes micro1enterprises' evelops local human resource' an reuce poverty
Involvement o! communities / em"race community participation in pro-ect esi#n
an construction in aition to pro-ect appraisal
2esi#nin# !or !le,i"ility to cater !or !uture user1nee chan#es / strive to create
multi1purpose spaces an esi#n !le,i"ility that ena"les continual revie& o!
pro-ects to cater !or !uture nees
3se o! recycla"le4re1usa"le "uilin# materials / this &ill lea to &aste reuction
En!orcement o! e,istin# la&s an re#ulations / there is lac( o! policin# an
compliance chec(in# systems
Client to eman *C practice on pro-ects / most client are only intereste in
economic sustaina"ility
Challen#es o! applyin# *C
5ac( o! !acilitative re#ulatory !rame&or( in the inustry
The ecision ma(in# in construction lar#ely remains traitional
3nin!orme clients
Ina"ility to ienti!y appropriate systems !or speci!ic environments
5ac( o! "est practice ata"ase
5ac( o! a ata"ase on local materials' tools an techni%ues
Erratic nature o! construction "usiness a!!ects e!!orts to implement *C
practises
5ac( o! resources to e,pen on R 6 2
+oor pu"lic a&areness$
7ay1!or&ar0
Improve trainin# an sensitisation
Incorporate holistic #uielines o! impact assessment in the plannin# permission
o! all pro-ects an uni!y en!orcement proceures
Ma(e social1economic' health an environmental assessments compulsory$
b. Project management (PM)
7hat is a pro-ect8
Temporary eneavour
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3nerta(en to create a uni%ue prouct or service
An activity &ith e!ine #oals an &ith #iven time span an resources
A cause o! irreversi"le chan#e
Concerne &ith the !uture hence has ris( an uncertainty
Activity re%uirin# resources 9human' material' !inancial: an ecisions !rom
several persons
+ro-ects vary in scale an comple,ity an are all investments meanin# that the #oos
an services they prouce must "e more valua"le that the cost o! the pro-ect$ *alient
!eatures o! a pro-ect0
*implicity o! purpose / easily unerstoo #oals or o"-ectives
Clarity o! purpose an scope / clearly escri"e in !inite terms its o"-ectives'
scope' limitations' resources' %uality' mana#ement
Ease o! measurement / pro#ress can "e measures a#ainst clear tar#ets an
per!ormance stanars
Fle,i"ility o! employment / employs or co1opts specialists or e,perts o! hi#h
cali"re !or limite perios
7e can in!er that +M starte &ith the construction o! the E#yptian +yramis an the
Great 7all o! China as these pro-ects necessitate it i$e$
Comple, structures
Enormous &or(!orce
;i#h stanars
Neee a structure approach
Inte#rate in!ormation
3se multi1s(ills an isciplines
Neee plannin# an scheulin#$
In moern times too +M accomplishes #reat pro-ects li(e the "irs nest staium in
China' opera house in *yney$ <ther !actors that #ave rise to +M in moern times
inclue0
Rapily chan#in# technolo#y
Time constraints
3nsta"le economies / political chan#e
Novelty o! pro-ects
Increase scope o! pro-ects
Increase ris(s / elay in completion' reuction in return
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Fiercely competitive mar(ets / emanin# leaner4meaner !le,i"le or#anisation
structures an e!!icient systems approach
+o&er!ul environmental lo""ies an consierations
Nee to monitor an control lar#e amounts ata
Nee to %uic(ly an accurately !acilitate pro"lem solvin# an ecision ma(in#
Increase in num"er o! !irms involve in pro-ect accomplishment
Increase o! num"er an in!luence o! sta(eholers
Nee to thin( ahea
Clients nee !or value mana#ement an innovative solutions
Nee !or value !or money in vie& o! competin# alternatives
Emphasis in prouct li!e1cycle hence nee to loo( at the "i##er picture an
consier trae1o!! "et&een construction cost an maintenance' consier
up#raes' e,pansion an ecommissionin#
Generally +M #re& out o! necessity rather that esire$ It may "e e!ine as the
application o! (no&le#e' s(ills' tools' an techni%ues to pro-ect activities in orer to
meet sta(eholer nees an o"-ectives <R an eneavour in &hich humans' machines'
materials an !inancial resources are or#anise in a novel &ay to unerta(e a uni%ue
scope o! &or( o! #iven speci!ications' &ith the constraints o! cost an time so as to
eliver "ene!icial chan#e e!ine "y %uantitative an %ualitative o"-ectives$ Generally
there!ore it is the mana#ement o! planne chan#e$ +M involves0
5=> thin(in# ahea or plannin#
o Motivation to thin( ahea an reveal pro"lems an !in solutions
o 2e!inin# &or( re%uirements' %uantity' %uality an resources
o Consier ho&' &hen' &here' &ho an &ith &hat
25> communications
o +ropose timin#' metho' strate#y are availa"le an unerstoo
25> monitorin# an evaluation 9yarstic(:
o Monitor the pro-ect
o Evaluate pro#ress
o Compare &ith planne
o Analyse impact
o Ma(e a-ustments
The intention o! all this is to provie the client &ith a pro-ect that satis!ies !ully his
re%uirements re#arin# time' cost' %uality' per!ormance an cost in use$
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c. Value management (VM)
?M aresses the value process urin# the concept' e!inition' implementation an
operation phases o! a pro-ect i$e$ the systematic an lo#ical proceures an techni%ues
that enhance pro-ect value throu#h the li!e o! the !acility$ ?M is the mana#ement o! a
process to o"tain ma,imum value on a scale etermine "y the client0 there!ore it
centres on the ienti!ication o! the re%uirements$ ;ere the ma,imum value is o"taine
!rom a re%uire level o! %uality at least cost0 <R the hi#hest level o! %uality !or a #iven
cost0 <R !rom an optimum compromise "et&een the t&o$ Note that ?M is a"out
enhancin# value an cuttin# the cost is -ust a "y1prouct "ut not the main aim$ ?M thus
aims to ma,imise pro-ect value 9sta(eholer value !or money "y achievin# "alance
"et&een cost an !unction: &ithin time an cost constraints &ithout etriment to
!unction' per!ormance' relia"ility an %uality$ It is structure' auita"le' accounta"le'
multi1isciplinary' an see(s to ma,imise the creative potential o! all pro-ect
participants$ This may ho&ever initially re%uire e,tra e,peniture$
It is a term that encompasses the !ull ran#e o! value techni%ues incluin#0
?alue plannin# / value techni%ues applie urin# the concept or plannin# phase o! a
pro-ect to ensure that value is planne into the &hole pro-ect !rom its inception$
It is one "y aressin# an ran(in# sta(eholers re%uirements in orer o!
importance i$e$ e!ine pro-ect concept' o"-ective' !easi"ility an approach
?alue en#ineerin# / value techni%ues applie urin# the esi#n or en#ineerin#
phase / it investi#ates' analyses' compares an selects amon#st the various
options those that &ill meet the value re%uirements o! sta(eholers i$e$ evelop
esi#n an etails' construction
?alue analysis or revie&in# / value techni%ues applie retrospectively to
complete pro-ects to analyse or to auit the pro-ects per!ormance an compare
a complete or nearly complete esi#n or pro-ect a#ainst preetermine
e,pectations / conucte in the post1construction perio as part o! a post1
occupancy evaluation e,ercise i$e$ operation an ecommissionin#$
Impact at various sta#es0
Concept sta#e / help ienti!y the nee !or a pro-ect' its (ey o"-ectives an
constraints
Feasi"ility sta#e / evaluate "roa pro-ect approach an evaluate evelopin#
esi#n proposals
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2etaile esi#n / to revie& an evaluate (ey esi#n ecisions as esi#n
pro#resses
Construction sta#e / to reuce costs' improve "uila"ility an !unctionality
<peration sta#e / to improve possi"le mal!unctions or e!iciencies
2ecommissionin# / to learn lessons !or !uture pro-ects$
?M involves the !ollo&in#0
Functional analysis / a techni%ue esi#ne to help the appraisal o! value "y a
care!ul analysis o! !unction i$e$ the !unamental reason &hy the pro-ect element
or component e,ists or is "ein# esi#ne / as( the %uestions
7hat is it
7hat oes it o
7hat oes it cost
;o& valua"le is it
7hat else can o the -o"
7hat &ill that cost
The process is esi#ne to ienti!y alternatives more valua"le an4or cost
e!!ective &ays to achieve the (ey !unctional re%uirements$ Functional analysis is
thus more suite to analysis o! the etaile esi#n o! speci!ic components or
elements o! a pro-ect$ 3sually it entails use o! a -o" plan &hich is a lo#ical an
se%uential approach to pro"lem solvin# &here multi1isciplinary #roups use
creative techni%ues to esta"lish comparative cost in relation to !unction via the
!ollo&in# seven steps0
i$ <rientation / ienti!ication or e!inition o! &hat has to "e achieve an
&hat are the (ey pro-ect re%uirements' priorities' an esira"le
characteristics
ii$ In!ormation / #atherin# relevant ata a"out nees' &ants' values' costs'
ris(s' time scale an other pro-ect constraints
iii$ *peculation or "rainstormin# / #eneration o! alternative options !or the
achievement o! client nees &ithin the state re%uirements i$e$ ienti!y
options !or resolvin# the re%uirements$ This is a crucial step as the %uality
o! ieas #enerate etermines the &orth o! the approach
iv$ Evaluation / o! the alternative options ienti!ie in the speculation sta#e
v$ 2evelopment / o! the most promisin# options an their more etaile
appraisal
vi$ Recommenation !or action / select the option &ith the #reatest potential
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vii$ Implementation an !ee"ac( / e,amination o! ho& the recommenations
&ere implemente to provie lessons !or !uture pro-ects$
5i!e1cycle costin# / a structure approach use to aress all elements o! cost o!
o&nership "ase on the anticipate li!e span o! a pro-ect$ In construction the
!ollo&in# cate#ories are consiere0
i$ Investment or capital cost: site costs' esi#n !ees' le#al !ees' construction
costs' ta, allo&ances' an evelopment !ees
ii$ <peration an maintenance costs: lettin# !ees' maintenance costs 9cleanin#
an servicin#:' repair costs' security' insurance' careta(er
iii$ Replacement o! components / planne replacement
iv$ Resiual or terminal creits / N@: constructe !acilities epreciate until
they "ecome economically or structurally reunant &hereas lan
appreciates in value$
7hy ?M8
+ro-ects su!!er !rom poor e!inition "ecause o! inae%uate time an thou#ht
#iven in earlier sta#es0 an poor analysis o! nees 9am"i#uous "rie!:/ these
results in cost an time overruns' claims' user issatis!action an e,cessive
operatin# costs$
There are elements in a pro-ect that contri"ute to poor value incluin#0
o Inae%uate time
o ;a"itual thin(in#4traition
o Conservatism an inertia
o Attitues an in!luences o! sta(eholers
o 5ac( o! or poor communication
o 5ac( o! coorination "et&een the esi#ner an operator
o 5ac( o! relationship "et&een esi#n an construction methos
o <utate stanars or speci!ications
o A"sence o! state o! the art technolo#y
o ;onest !alse "elie!s4honest misconceptions
o +re-uicial thin(in#
o 5ac( o! neee e,perts
o 5ac( o! ieas
o 3nnecessarily restrictive esi#n criteria
o Restricte esi#n !ee
o Temporary ecisions that "ecome permanent
o *cope o! chan#es !or missin# items
o 5ac( o! neee in!ormation
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?M ensures that0
The nees o! a pro-ect is al&ays veri!ie an supporte "y ata
+ro-ect o"-ectives are openly iscusse an clearly ienti!ie
Aey ecisions are rational' e,plicit an accounta"le
The esi#n evolves &ithin an a#ree !rame&or( o! pro-ect o"-ectives
Alternative options are al&ays consiere
<utline esi#n proposals are care!ully evaluate an selecte on "asis o! e!ine
per!ormance criteria
It improves communication an team&or( "y involvin# all the sta(eholers
incluin# investors' en1users' consultants' constructors' clients an specialist
suppliers
Enhance share unerstanin# amon# (ey participants
@etter %uality pro-ect e!inition
Increase innovations
Elimination o! unnecessary cost
@ene!its to the pro-ect0
+rovies a !orum !or all parties in a pro-ect evelopment
+rovies revie& o! entire pro-ect
Ienti!ies pro-ect constraints an challen#es
Ienti!ies an prioritise pro-ect o"-ectives
Improves %uality e!inition
Evaluates means o! achievin# pro-ect o"-ectives
Remeies pro-ect e!iciencies' omissions an super!luous items
Ensure esi#n is most e!!ective !or the purpose
Ienti!ies an eliminates unnecessary costs
+rovies mana#ement4client &ith the in!ormation to ma(e in!orme ecisions
Enhances return on investment
+romotes innovation$
d. Quality management
Buality is e!ine as the a"ility to mana#e a pro-ect an provie the prouct or service
in con!ormance &ith the user re%uirements on time' to "u#et an ma,imise pro!it
&ithout a!!ectin# %uality$
BM ensures that a pro-ect meets speci!ications an customer re%uirements an involves
the !ollo&in# ma-or elements0
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Con!ience
Control
Consistency
Cost1e!!ectiveness
Commitment
Communication$
;istory0
Buality control / in the )C2= urin# the 2
n
7orl 7ar &here as prouction
increase an availa"le la"our ecrease an ha poor s(ills the nee !or
inspection o! in!erior prouct arose$ 3sually uses statistical control an &or(s in
retrospective / etection moe to !in pro"lems that have occurre
Buality assurance / more sophisticate proucts increase the possi"ilities !or
mista(es an relia"ility en#ineerin# "ecame important$ Aitionally it &as realise
that to prouce hi#h1%uality proucts at competitive prices a %uality system
operatin# throu#hout all sta#es o! prouction &as re%uire$ +rouct sa!ety also
"ecame an issue as hi#hly comple, an e,pensive plants &ith #reater potential
ris( &ere "uilt emanin# not only satis!actory %uality "ut also evience o! sa!e
an controlle operations e$#$ nuclear po&er stations$ BA ensures that all planne
actions eeme necessary to provie con!ience to all sta(eholers to a pro-ect
satis!y #iven re%uirements hence incluin# suppliers' istri"utors' etc &ere hel
responsi"le !or any ama#es cause "y the prouct to persons an property$
<perational e!!iciency to prevent mista(es an increase innovation &as institute$
BA aim at reucin# an ultimately avoiin# pro"lems 9preventin#: occurrin# hence
improvement$
Total Buality mana#ement 9TBM: / involves the !ollo&in#0
o Customer !ocus
o E,amines &or( processes not iniviual per!ormance
o Applie to all &or( processes an all sta!!
o Monitorin#' measurement an reportin#
o Continual improvement
It in#reients are0
It provies %uality that meets the pro-ects re%uirements
Buality is a means o! achievin# prouctivity
Every activity o! the pro-ects contri"utes to total %uality
A means o! achievin# pro-ect success
Mana#in# %uality involves systems' techni%ues' an iniviuals
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A &ay o! mana#in# a pro-ect
Avanta#es:
Buality in meetin# the pro-ect speci!ication saves money
Alleviates poor %uality hence reucin# costs
Reuces costs as prouctivity increases
Improves capacity as %uality increases
Improves pro!ita"ility
Competitive avanta#e 9mar(et position:
Improves sa!ety
@alances ris(' "ene!it an cost
Enhances client satis!action$
Buality +lan 9B+: / etaile plan to auit an maintain %uality &hich e!ines0
The %uality o"-ects to "e attaine
The speci!ic allocation o! responsi"ility an authority urin# the i!!erent
pro-ect phases
The speci!ic proceures' methos an &or( instructions to "e applie
*uita"le testin#' inspection an e,amination at i!!erent sta#es
A metho !or chan#es an moi!ications in a %uality plan as pro-ects procees
<ther measures necessary to meet pro-ect o"-ectives
Buality Mana#ement system / connects all the activities in!luencin# pro-ects %uality
&ith the aim o! achievin# the esire %uality &ithout unnecessary cost$ BM* ensures
that0
Buality proucts an services al&ays meet the e,presse or implie re%uirement
o! the customer
Buality is achieve in a planne an systematic &ay
The customer is satis!ie
BM* is "ase on0
+lannin# / all activities an tas(s that a!!ect %uality
E,ecution / "ase on necessary e,pertise an resources i$e$ eucatin#' trainin#
an in!ormin# relevant people on &hat is #oin# to happen' &ho is oin# &hat an
implementin# necessary chan#es
Chec(in# / results o! implementation to see that chan#e is happenin# as re%uire
an removal o! e!ects
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Action / analyse an recor in!ormation to prevent same e!ects !rom appearin#
a#ain
Continuous up#rain# must ta(e place an !re%uent auitin# to meet chan#es in &or(
re%uirements an to remove reunant processes$
Buality costs more "ut lac( o! %uality costs even more as !ailure is costly "oth to
society an the pro-ect / aitional e,pense an inconvenience$ Buality costs inclue0
Costs o! assurance proceures
Costs o! control proceures
Costs o! ealin# &ith !ailures' re&or(' scrap an repairs$
More speci!ically in construction it involves the !ollo&in#0
<peratin# costs / incurre "y the pro-ect in orer to attain an ensure speci!ic
%uality levels i$e$
o +revention costs o! e!!orts to prevent !ailures
2esi#n revie&s
Buality an relia"ility trainin#
Buality an relia"ility trainin#
Buality plannin#
Auits
o Appraisal costs / o! testin#' inspection an e,amination to assess &hether
speci!ic %uality is "ein# maintaine
Testin# an inspection
Maintenance an cali"ration
Installation testin# an commissionin#
Failure costs 9or losses: / internal !ailure costs resultin# !rom the !ailures o! a
pro-ect or service to meet per!ormance speci!ications prior to elivery
o 2esi#n chan#es
o ?enor re-ects
o Re&or(
o *crap an material renovations
o 7arranty
o Commissionin# !ailure$
e. ean construction
The !ollo&in# are some o! the characteristics o! the construction inustry that have
necessitate lean construction:
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3p to D=> o! construction costs are attri"ute to ine!!iciencies' mista(es'
elays an poor communication
In evelopin# countries &here a si#ni!icant percenta#e o! materials an
e%uipment are importe mista(es have ma-or cost impact particularly
&here time elays rener pro-ects suscepti"le to currency ris(s an
in!lationary !actors
5ean construction ma,imises value an reuces &astes via0
*upply chain mana#ement / primarily !ocuses on lo#istical control o! the
inter!ace &ith suppliers / !acilitatin# the provision o! supplies precisely on time
an in re%uire %uantities$ N@ a supply chain encompasses all the activities that
lea to havin# the en1user provie &ith a prouct or service
Eust1in1time techni%ues / aime at minimisin# &astes' continuous improvement o!
processes an systems an maintainin# respect !or &or(ers i$e$ only commit the
resources neee to meet customer nees$ This leas to reuce inventories'
hi#her prouctivity' shorter lea times' !e&er errors an hi#her morale e$#$
Toyota reuce car prouction time !orm )5 ays to ) ay$
<pen sharin# o! in!ormation "et&een all parties
5ean prouction starte in the )C5=s in Eapan Toyota Company &here &astes in mass
prouction &ere ienti!ie as !ollo&s0
<verprouction
7aitin# time
Transportin#
+rocessin#
3nnecessary stoc( at han
3sin# unnecessary motions
+roucin# e!ective #oos
Failure to meet customer nees
+rincipals o! a lean construction process0
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?alue / there is nee to clari!y the customerFs nees
?alue stream / "y mappin# the value stream' ienti!yin# an eliminatin# &aste'
the construction process can "e improve
Flo& / o! pro-ect in!ormation an activities
*upply !lo& / materials
+ull / the e!!orts o! all the participants
+er!ection / &or( instructions an proceures are evelope an %uality controls
are esta"lishe
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