Friday, May 27, 2011

PROJECT EXECUTION AND VALUE FOR MONEY: THE ROLE OF THE ENGINEER

This is the concluding part of a seminar paper presented by Engr. (Sir) M.O. Ebah, Chief Lecturer/Engineering Consultant, Delta State Polytechnic, Ogwashi-Uku, Delta State, Nigeria.

PART TWO: THE PROJECT MANAGEMENT TECHNIQUE

1.0    Introduction:     The fact that an organisation or firm is executing a project with its managers does not mean that it has a project management system. Modern project management is a system that has a specific form of organisation with formal mechanisms for the control and supervision of the quality and progress of a project work. No matter the project, it requires good and effective project management system for its successful execution. A project  management system has some characteristics that makes it different from the usual or normal organisational management set up(Ritchie,1992). These characteristics bring along some advantages that make the difference and ensures the successful attainment of the project management objectives which give value for money.

2.0    Project Execution Management Characteristics:       
Project management gives:
-        Specified Date/Time
-        Specified Budget/Cost
-        Specified level of Performance/Quality.


For project execution management – ie  control, monitoring, and supervision to be successful and give value for money the following objectives must be attained.
-        The final result must satisfy the performance/quality requirements of the end user----Adequate/Best .
-        All expenditure must be contained within budget ---Economical/Cheapest.
-        The project work must be completed within the stipulated time---Fastest/Reasonable .


3.1    Standard Project Execution Management Organisation

 
The management structure illustrated above is the standard requirement for the effective and successful management of the execution of any project. The project manager or supervisor must be vested will all necessary authority and responsibility. The above organisation chart shows that the power of execution is vested in the project manager. The functional managers provide the manager, monitor or supervisor with the required resources and technical knowledge. This is the standard requirement for effective and successful project execution or monitoring and supervision.

4.0    Project Execution Control
The activities, processes and programmes for the  execution of a project must be properly regulated or controlled for its management and supervision to be successful and effective. It is only then that the project execution can give value for money spent.
Below is a flow chart of the main components of the good project execution control system.

3.0    PEM (Project Execution Management) Objectives

It must be noted that the following  elements must be well understood and properly regulated or controlled if project execution is to give value for money:
-        -  Scope
-        -  Cost
-        -  Schedule
-        -  Quality and
-        -  The personnel

4.1    Scope                
Scope defines exactly the desired end product of the project which must be known to the management and supervision team or the project management team. The project scope must be known before any major financial commitment. Apart from the scope, an Execution Plan is also required for effective project management and supervision. The execution plan should be drawn up before the commencement of work. Normally, the plan should address every aspect of the work that will need policy decisions such as the following:
-        Who will manage and supervise the project – the client/government team/in-house or a managing contractor.
-        The contract strategy or type.
-        Major objectives to be achieved – low cost/economical? short/long schedule? or high/adequate quality?


4.2    Cost
Cost can be trend base estimates and department budgets
At the start of a project, it is usually difficult to make an accurate estimate of the cost of the project especially when detailed drawings are not ready. And so a trend base estimate is prepared which stipulates the estimate of required job hours for the project work, lists all known items and their estimated cost including allowances based on previous knowledge for unfully defined areas of work. Department budgets are trend base estimates broken down into essential functional areas of work or small segments. It is very important that all the jobs to be done are meticulously listed and costed accordingly. A job that cannot be measured cannot be monitored and supervised and its management cannot be effective. For projects that will last over a long period of time, provision must be made for inflation (e.g 10-15%). Also a contingency allowance should be added to estimates to take care of any inaccuracy in the cost estimate.(e.g 10-20%)

4.3    Project Schedule:      Once the project plan has been agreed upon an all embracing project work schedule is a must for an effective and successful project monitoring, supervision and control. There should be a Master Schedule and Department Schedules.
The master schedule schedules all the project jobs from basic engineering to completion indicating, the major functional activities which may be as many as fifty in number.
The department schedules which are very effective for supervising and controlling the project work is a detailed list of deliverables from the various functional segments. Department schedules is made from the master schedule which is broken into smaller units for the functional segments. The project schedule lists the jobs and time required to execute them.

Project schedule can be greatly enhanced by the use of Network Analysis. Network analysis is used during planning to brake down projects into activities that are arranged in a logical sequence. Network analysis uses a network diagram to show the relationship between all project activities. With network analysis time, costs and available resources are specifically allocated.


In a network diagram, there is a most important activity route or path called critical path. Critical path is the longest activity path(ABE) and takes the maximum time and so decides the total project duration. The critical path is made up of activities that must be carried out for a project to meet its scheduled completion date. It is most vital for a successful and economic project execution. It adds value to project management if accurately followed.

4.4    Quality     
Project managers and  supervisors must note that major delay in work schedule can result from poor quality engineering. Poor construction work and equipment supplied to the wrong specification affect project quality(Ritchie,1992). A comprehensive quality assurance system must be applied all through the project work to ensure that the quality of work is up to expected standard if project execution is to give value for money.

4.5    The Personnel
Once the project schedule has been worked out and the workhours determined, the number of workers needed for the job must be worked out for departments and units within them. Then work dates are worked out for each person or group of people as necessary. And based on the project execution plan, workers are then mobilized to their respectively duty posts. Workers are phased onto the job as required and immediately they complete their aspect of the job, they are phased out or demobilized. All project personnel, be they home office or field/site office staff, must be properly motivated for high productivity. Industrial disputes must be avoided or quickly settled to avoid job delay, which can adversely affect work schedule.

4.6    Reporting—Trend and Monthly
The easiest and most effective way to control a project is to have weekly trend meetings of all senior members of project management team and the client are in attendance. Weekly trend meetings discuss changes and problems related to scope, cost, schedule, quality and personnel. Reports of trend meetings are sent to the project manager who utilizes them to prepare monthly reports which keeps the client and organization management well informed on progress of work.  The importance of weekly or trend and monthly reports on anticipated changes or problems related to scope, cost, schedule, quality and the personnel cannot be overemphasized. From trend reports the management and supervision team leader or project manager gets up to date information on any  matter that can jeopardize progress of work and he or she then takes necessary corrective action or step.
Conclusion
To be successful and effective in its work, the project supervision team or project management team must have a comprehensive knowledge, and understanding of nearly, if not all, the subject matters contained in this paper. From experience, I can confidently say that in project management and supervision, to be effective and or successful a sure route is the meticulous listing of all job items to be done and the meticulous monitoring of cost, schedule, scope, quality and the commitment of personnel in those job items. Only then can project execution  successfully give value for money. Project management is cost-effective, efficient  and guarantees value for money in project execution if scrupulously applied. It is highly  recommended.   

 As a  general conclusion, it suffices to add here that any of the possible routes discussed in this presentation or a combination of any of them, will ensure value for money in our project execution  in Delta state.

References
         John L. Thompson (2000): Strategic Management, Awareness and 

        Change, London, Chapman and Hall.


http://en.wikipedia.org/wiki/value engineering

Khana O.P. (2006): Industrial Engineering and Management, New Delhi, Dhanpat Rai Ltd.

Ohmac, K. (1988): Getting Back to Strategy, Harvard Bussue Review, November – December.

Porter, M.E. (1985): Competitive Advantage: Creating and Sustaining Superior Performance, Free Press.

Ritchie G.J (1992): Project Management Characteristics, Advantages And Phases; Bedford;Cranfield University Press.

Value Methodology Pocket Guide.