BASIC OVERVIEW

OF
PROJECT
MANAGEMENT
AND LIFE CYCLE
 THE TWO END POINTS IN A
PROJECT
Inspiration
Operation

A miracle occurs
 What Is A Project
“ A project is a unique endeavor to produce a set of deliverable
within clearly specified constraints of time, cost and quality.”

i. Uniqueness : every project is different from the last, whereas operational

activities typically involve repetitive processes
ii. Timescale : A project has clearly specified start and end dates within which
deliverables are produced to meet the customer’s requirement
iii. Budget : A project has a maximum limit to the expenditure within which the
deliverables must be produced, to meet the customer’s requirement.
iv. Resources : A project is allocated a specified amount of labor, equipment
and materials at the start.
v. Risk : A project entails uncertainty and therefore carries business risk
vi. Change : The purpose of a project is typically to improve an organization
through the implementation of business change
What Is Project Life
Cycle????
Project Life Cycle

Testers
PMs
Programmers
Art
Project Life Cycle
Project Life Cycle
 PROJECT LIFE CYCLE
• The steps an organization performs to build
the product, service or result
• A series of phases a project passes through
from its initiation to its closure
• Phases Are Generally Sequential
• Their Names And Numbers Are
Determined By The Management And
Control Needs Of The Organization And
Its Area Of Application 9
 PROJECT LIFE CYCLE OR PHASES
• May be divided by functional or partial
objectives, intermediate results or
deliverables, specific milestones within the
overall scope of work or financial availability
• Are generally time bounded with a start and
ending or control point
• A life cycle can be documented within a
methodology
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 PROJECT LIFE CYCLE OR PHASES
• The project life cycle may be shaped by the
unique aspects of the organization, industry
or technology employed
• While every project has a definite start and
end, the specific deliverables and activities
in between will vary widely with the project
• The life cycle provides the basic framework
for managing the project regardless of the
work involved 11
DIAGRAM OF PROJECT LIFE
CYCLE
 INITIATION AND THE BASIC
PROCESSES
• The initiation phase is the 1st phase, it involves
starting up a new project.
• It  is the most crucial phase in the project life cycle, as
it's the phase in which you define your scope and hire
your team.
• Only with a clearly defined scope and a suitably
skilled team, can ensure success. 
• The activities identify in this phase:
a)Develop a business case (project document)
A business case justifies the start-up of a project. It
includes a description of the business problem or
opportunity, the costs and benefits of each alternative
solution, and the recommended solution for approval.
Involving two major types of activities.
- Contracting
- Sub-contracting (where applicable)
Engineering and design
- Two stage involved as follows:
i.Preliminary engineering and design
ii.Detail engineering and design
b)Undertake the feasibility study (project feasibility document)
A project feasibility study is an exercise that involves documenting each of
the potential solutions to a particular business problem or opportunity.
Feasibility studies can be undertaken by any type of business, project or
team and they are a critical part of the project life cycle.
 The purpose of a feasibility study is to identify the likelihood of one or more
solutions meeting the stated business requirements.
 In other words, if you are unsure whether your solution will deliver the
outcome you want, then a project feasibility study will help gain that clarity.
 During the feasibility study, a variety of 'assessment' methods are
undertaken. The outcome of the feasibility study is a confirmed solution for
implementation.
 The elements of this phase include:
- Conceptual analysis
- Technical and economic feasibility
- Environmental impact assessment reports (EIA)
- Socio economic impact on the community
- Traffic impact assessment (TIA)
c)ESTABLISH THE PROJECT CHARTER
• Is a statement of the scope, objectives and participants in a project.
• It provides a preliminary of roles and responsibilities, outlines the
project objectives, identifies the main stakeholders, and defines the
authority of the project manager.
• It serves as a reference of authority for the future of the project.
• The terms of reference is usually part of the project charter.

d)APPOINT THE PROJECT TEAM

• A project job description defines the objectives and responsibilities of a
particular role on a project.
• Completing a job description template ensures the skills, experience
and qualifications needed to fullfill the role are clearly defined.
• A job description may also be referred to as a "position description".
e) SET UP THE PROJECT OFFICE

• The project office checklist lists to set up a project

management office.
• A project management office is the physical premises
within which project staff (e.G. The project manager
and support staff) reside.
• The project office also contains the communications
infrastructure and technologies required to support
the project.
• By using this 'project office checklist' you will ensure
you have all of the tools needed to operate your
project office today.
f) PERFORM A PHASE REVIEW

• A project review is an assessment of the status

of a project, at a particular point in time.
• The first time in the project life cycle that a
project review is undertaken is at the end of
the first project phase, called "initiation".
• During this project review, a decision is made
as to whether or not the team has met the
objectives and is approved to proceed to the
next project phase, being the "planning" phase .
 PLANNING AND BASIC
PROCESSES
a) DEFINING SCOPE
 Establishing realistic and specific objectives
 Objectives must be clear and measurable terms which cover
costs, schedules and quality or performance requirement.
 Objectives must be reasonable and achievable.

b) WORK BREAKDOWN STRUCTURE (WBS)

 Is a process of dividing the project task into smaller manageable
components for planning purposes.
c) ROLE ASSIGNMENT AND SCHEDULING
 The process which was use to relate tasks to people,
other firms, regulatory agencies and others.
 Several types of planning methods available to the
planning for example : bar chart, critical path method
(cpm), program evaluation and review technique and
line of balance.

d) FUND ALLOCATION
 Company fund or loan from financial institution.
e) RISK MANAGEMENT
 Risks can come from uncertainty in financial markets, project
failures (at any phase in design, development, production, or
sustainment life-cycles), legal liabilities, credit risk, accidents,
natural causes and disasters as well as deliberate attack from
an adversary, or events of uncertain or unpredictable root-
cause.

f) PROCUREMENT PLANNING
 Procurement planning is the process of identifying and
consolidating requirements and determining the timeframes for
their procurement with the aim of having them as and when
they are required.
 A good procurement plan will describe the process in the
identification and selection of suppliers/contractors/consultants
 IMPLEMENTATION ACTIVITIES
AND BASIC PROCESSES
a)EXECUTION OF PROJECT PLAN

• The stage where designers plans and specification and

realised into physical structures and facilities.
• It involved organization and coordination of all resources
for the project including:
- Labor
- Plant and equipment
- Materials
- Money
- Management
b)HANDLE CHANGES

• If the performance deviate from the plan then corrective

actions need to be instituted.

c)PROJECT CONTROL

• Control required on current status of cost, schedule or any

other measures of performance comparing to project goals
• Monitoring and control is important to ensure the project
objectives are achieved.
 CHARACTERISTICS OF THE
PROJECT LIFE CYCLE
• Projects vary in size and complexity
• All projects can be mapped to the following
generic life cycle structure
• Starting the project
• Organizing and preparing
• Carrying out the project work
• Closing the project
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• The generic life cycle structure is often
referred to when reporting to upper
management or others less familiar with the
details of the project
• This should not be confused with project
management process groups because the
processes in a process group may be
performed and recur within each phase of a
project as well as for the project as a whole

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 PROJECT LIFE CYCLE EXAMPLES

• PHARMACEUTICAL DEVELOPMENT PHASES

• DRUG DISCOVERY
• PRE-FORMULATION
• PHARMACOKINETICS
• TOXICOLOGY
• PHARMA/CLINICAL DEVELOPMENT
• CLINICAL TRIALS 1-3
• GO TO MARKET
• REGULATORY APPROVAL
• REGULATED PRODUCTION
• CLINICAL TRIALS 4
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• SYSTEM DEVELOPMENT LIFE CYCLE PHASES
• PROBLEM DEFINITION
• REQUIREMENTS GATHERING
• ANALYSIS
• DESIGN
• DEVELOPMENT
• TESTING
• DEPLOYMENT
• MAINTENANCE

30
 THE CHARACTERISTICS OF
EACH PROCESS GROUP
REFLECTS:
• THE LEVEL OF A PROJECT’S COSTS, STAFFING, CHANCES
OF SUCCESSFUL COMPLETION, STAKEHOLDER INFLUENCE
AND PROBABILITY OF RISK

31
PROJECT LIFE CYCLE
CHARACTERISTICS
Generic Life Cycle Structure

32
PROJECT LIFE CYCLE
CHARACTERISTICS

33
 PROJECT LIFE CYCLE
CHARACTERISTICS
Cost of changes/correcting errors increases significantly over
time

34
 CLOSE-UP ACTIVITIES AND
BENEFITS OF EFFICIENT PROJECT
CLOSURE
•  A project closure process indicates the formal closing of a
project, and lists the key activities required to be undertaken
at this stage of a project to your sponsor.
• Commencement of the project closure process prevents the
occurrence of additional expenditures by the project.
• Project closure involves handing over the deliverables to your
customer, passing the documentation to the business,
cancelling supplier contracts, releasing staff and equipment,
and informing stakeholders of the closure of the project.
• After the project has been closed, a post implementation
review is completed to determine the projects success and
identify the lessons learned.
•  It is extremely important that you list every activity required
to close the project within this project closure report, to ensure
that project closure is completed smoothly and efficiently.
 RESOURCES IN THE PROJECT
MANAGEMENT
• In project management terminology, resources are required to carry out the
project tasks. They can be people, equipment, facilities, funding, or anything
else capable of definition required for the completion of a project activity.
• The lack of a resource will therefore be a constraint on the completion of the
project activity.
• Resource scheduling, availability and optimisation are considered key to
successful project management.
• Allocation of limited resources is based on the priority given to each of the
project activities. Their priority is calculated using the critical path method.
• For a case with a constraint on the number of resources, the objective is to
create the most efficient schedule possible - minimising project duration and
maximising the use of the resources available.
 PLANT & EQUIPMENT
 Plant covers equipment, hardware, machinery and equipment
required for the construction project.

 The purpose of this plant is to reduce the construction period,

reducing costs, saving time, saving on labor and most
importantly can improve the quality of construction.

 Plant management can save costs and it depends on good

management based on output, plant valuation method,
continuity of work, training of operators, the organisation of
work of the plant, maintenance and overhaul plant and the
selection of plants that are appropriate to the size of the
project.
 In a large project, the tools used are depends on the
type of work.

 The equipment is intended that can be divided into

two types:

i) Equipment that is not motorized and

ii) mechanized Motorized or mechanized equipment

 For the price mechanized tools are not included as a

cost of daily expenses and management.

 For mechanized equipment, the contractor obtain it

either by buying or renting equipment.

 Thus, the capital to purchase or rent such equipment

should be calculated to obtain the cost of capital
employed.

 Therefore the price of equipment and labor for each

hour that control should be obtained.
Factors to be taken into account in determining the cost
of mechanization:

1.The price for renting or falling prices for equipment

used machinery
2.The cost of the equipment operation .:
3.The cost of oil, spare parts, tires
4.Maintenance and repair costs
5.Cost operator
 The plant is the most precious treasure to
KAEDAH
the contractorKAWALAN LOJI
because the cost of
obtaining and use of the plant is quite high,
therefore the control and safety of the plant
should be given special attention.

 The plant should be recorded for use as a

precautionary measure.

 At the construction site of the plant is used,

then a chart that includes the sequence of
operations for each type of plant should be
recorded as the time, date of delivery of
the plant to the construction site, the use
and movement of plants at the construction
site, service and maintenance are carried
out.
 Since the plant is so valuable for control measures, the
use of the plant should be recorded time, cost and
movement within the site.

 These three aspects, according to Harris, F. (1989)

can be applied to evaluate their effectiveness.

 i. Time Recording will facilitate the plant manager to

decide and check the exact amount of time the plant
operates.

 ii. The cost of maintenance is a step in the control of

the construction costs. The costs taken into account is
the cost of maintenance, repair costs, replacement
costs, the cost of fuel and lubricants.

 iii. movement : The movement of the plant should be

recorded to detect the position of the plant at any time,
be used by anyone and used for any activity. This can
prevent the loss of plant or machinery is idle.
 MATERIAL
• PENGURUSAN BAHAN BINAAN YANG EFEKTIF DINYATAKAN SEBAGAI
UNTUK MENCAPAI MATLAMAT BAGI MEMASTIKAN KESEMUA BAHAN
YANG TIBA DI TAPAK ADALAH BERSESUAIAN DENGAN KERJA YANG INGIN
DIJALANKAN, PADA MASA YANG TEPAT, KUALITI TERJAMIN DAN KOS
YANG TERBAIK.

• PENGURUSAN BAHAN YANG BAIK MELIBATKAN PENJADUALAN, PROSES

PERMOHONAN, PESANAN, PENERIMAAN DAN PENGENDALIAN,
PENYIMPANAN DAN KESELAMATAN BAHAN.

• MANAKALA PROSES PENGHANTARAN WALAUPUN MELIBATKAN KEPADA

PEMBEKAL, MASIH LAGI MEMERLUKAN PERHATIAN DARIPADA
KONTRAKTOR BAGI MEMASTIKAN PENGURUSAN BAHAN MENJADI
LANCAR.
 NATURALLY AVAILABLE
MATERIALS
• Clay / earth / soil
• Wood / timber
• Sand / fine aggregate
• Rock
 ARTIFICIAL OR
INDUSTRIAL MATERIALS
• Cement
• Bricks
• Steel
• Tiles
• Ceramic
• Paints and varnishes
• Glass
• Plastic
• Stone
• Lime
 MATERIAL
Factors taken into account in determining the price
of materials such as:

The original price of materials

Transportation

Value of Money

waste
OVERHEAD COST AND PROFIT
 OVERHEADS
• Overhead includes a large number of types of indirect
costs
• Direct cost are identifiable to cost units, but overhead
which are often considerable, cannot be related directly
to cost units

47
 There are, two types of OH costs in construction Company ie; OH costs
and Project OH costs.

 Company OH cost ,is also called general and administrative OH, includes
all costs incurred by the construction firm in maintaining the firm in
business and supporting the production process, but are not directly
related to a specific project.

 Company OH costs differ significantly from time to time but vary from 8
to 15% of the total construction volume.

 Project OH cost is also called job site overhead or general condition are It
is the cost specific to a project, but not specific to a trade or work item.

 Project OH costs comprise the contractor's expenses in managing the

project at the job site.
 Causes of Increased Overhead

Costs Delayed payments: This factor affects company OH

in two ways.
1.First, it forces a contractor to look for external financial
support which means additional company OH costs.

2.Second, delayed payments affect the bid/no bid decision.

When contractors decide not to bid because of delayed
payments, the rate and the effect of company OH become
larger even if its magnitude remains the same.

2.Its effect becomes damaging because the no bid decision

implies fewer projects which means company OH costs are
not distributed among sufficient projects.
Lack of New Project

If there are not enough new projects, then the level of
competition among contractors becomes seriously sharp, which
not only reduces profit margin but also makes contractors delay
the issue of recovering company OH costs hoping for another
chance to recover them.
Again, this cause may not lead to a direct increase in company
OH costs but it makes existing OH costs more damaging to the
company.
Nevertheless, lack of new projects may directly lead to an
increase in company OH costs because lack of projects strongly
affects the decision of down-sizing and its accompanied costs.
One important example in this situation is the financial loss
accompanying a contractor's decision to liquidate his assets such
as equipment, camps, or workshops
Cost Inflation

Contractors think that inflation is the third cause for increased

company OH costs. Company OH consumes many different
types of commodities and services which in general transfers
overall inflation rate to company expenses.

Government Regulation

Government regulations came as the fourth reason for

increased company OH costs.
Increased costs to recruit manpower from abroad and work
legal in the country have affected company OH costs as many
contractors consider such costs a company OH cost.
 Profit, as opposed to overhead, is used to pay
the company and the owner.
 The first place the profit should go is to a
company account that is separate from the
expense account.
 If your profit stays in the same account as
the overhead and accounts payable money, it
will easily get absorbed into the cost of
running your business.
 To avoid this, set up a separate account that
manages company profit.
 As soon as you are paid by a client, transfer
the appropriate amount of profit into this
account
 Consider taking the 7.5% to 10% “profit” and
separating it out into a contingency fund.
 It will be there if you need it, and if you don’t
The percentage rate of profit depends
on:

size of project
Situation construction sites
Information from clients in the tender
documents
 PLANT & EQUIPMENT
• Bulldozer
• Scrapper
• Grader
• Backactor
• Dragline
• Face shovel
• Skimmer
• Tractor shovel
• Trencher
• Clamshell
• Harrow
BULLDOZER
SCRAPPER
GRADDER
BACKACTOR
TRENCHER
DRAGLINE