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Project Management for Environmental, Construction and Manufacturing Engineers Nolberto Munier Project Management for Environmental, Construction and Manufacturing Engineers A Manual for Putting Theory into Practice With additional contributions by Fernando Jime´nez-Sa´ez and Marta Ferna´ndez-Diego NolbertoMunier INGENIO(CSIC-UPV) UniversitatPolite`cnicadeVale`ncia,Spain ISBN:978-94-007-4475-2 ISBN:978-94-007-4476-9(eBook) DOI10.1007/978-94-007-4476-9 SpringerDordrechtHeidelbergNewYorkLondon LibraryofCongressControlNumber:2012941300 #SpringerScience+BusinessMediaDordrecht2013 Thisworkissubjecttocopyright.AllrightsarereservedbythePublisher,whetherthewholeorpartofthematerialis concerned,specificallytherightsoftranslation,reprinting,reuseofillustrations,recitation,broadcasting,reproduction onmicrofilmsorinanyotherphysicalway,andtransmissionorinformationstorageandretrieval,electronicadaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. Exempted from this legal reservation are brief excerpts in connection with reviews or scholarly analysis or material supplied specificallyforthepurposeofbeingenteredandexecutedonacomputersystem,forexclusiveusebythepurchaser ofthework.DuplicationofthispublicationorpartsthereofispermittedonlyundertheprovisionsoftheCopyright LawofthePublisher’slocation,initscurrentversion,andpermissionforusemustalwaysbeobtainedfromSpringer. PermissionsforusemaybeobtainedthroughRightsLinkattheCopyrightClearanceCenter.Violationsareliableto prosecutionundertherespectiveCopyrightLaw. Theuseofgeneraldescriptivenames,registerednames,trademarks,servicemarks,etc.inthispublicationdoesnot imply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevantprotectivelawsand regulationsandthereforefreeforgeneraluse. Whiletheadviceandinformationinthisbookarebelievedtobetrueandaccurateatthedateofpublication,neitherthe authorsnortheeditorsnorthepublishercanacceptanylegalresponsibilityforanyerrorsoromissionsthatmaybe made.Thepublishermakesnowarranty,expressorimplied,withrespecttothematerialcontainedherein. Printedonacid-freepaper SpringerispartofSpringerScience+BusinessMedia(www.springer.com) Preface Project management is a very complex activity involving interacting and dealing with people withdiverseskills,interests,andexperience,differentactivitiesandlinesofwork,varioustrades andoftenworkingforthesameprojectindifferentplacesatthesametime.Aprojectcantake onlyacoupleofweeksoranumberofyears.Itcanemployfewpeopleorseveralhundreds,often requiring large amounts of money in salaries, wages and equipment, with a few or perhaps thousandsofactivitieswhicharetobeexecutedsequentially,inseriesorinparallel,normally withtheworkfinishedbyonetradeasaninputforanother.Itmayhavetodealwithuncertainties or unfamiliar facts, sometimes involving risky operations and circumstances considering the welfareofworkersaswellasthenatureofthework.Allofthismustbedoneontime,within budget,withoutaccidents,aimingatthehighestqualityandtotheentiresatisfactionoftheclient andstakeholders.Whatachallenge! Human contact, asa most fundamental attribute ofany complex project,involves working withdifferentprofessionalssuchasengineers,architects,accountants,planners,safetymonitors, publicrelationsspecialists,financeandcomputerpeople,aswellassuppliers,contractors,andof course,withthepromotersoftheproject,bothclientsandstakeholders.Consequently,aproject manager, who obviously needs to delegate most of the non-management work, must have a thoroughunderstandingofthedifferentparticularsoftheprojectunderhis/herdirectionandthus qualityofleadershipisessentialforitsdevelopment. Thisbookisdevotedtoexposingthepracticalsideofprojectmanagement,bywhichterm wemeantheprojectmanagerandallthetechnicalstaffunderhis/herauthority.Inotherwords, this book illustrates in a practical way the know-how of project management, which is how thingsaredone,usingthelatesttechniquesandinformaticstools. Thechaptersareorganizedfollowingapproximatelythesubsequentscheme: Anabstractonitscontent. (a) Introductiontothechaptersubject. (b) Conciseinformationaboutitsimportanceandabrieftheoreticalbackground. (c) Origin of the data needed to be processed in the technique explained in each chapter (fromothergroupsorprocesses).Theideaistoestablishlink/swiththesource/s,forthe analysttoknowfromwheretogetthenecessaryinformation.Thisprocedureisessentialin step(e).Thisdependencyisshowngraphicallybyanarrowdiagram. (d) Destinationandusefulnessofresultsitproduces(tosameorothergroupsandprocesses). Theideaisestablishinglink/swithdestination/s,fortheanalysttoknowwhowillusethis information,orwhatitisfor.Thisprocedureisessentialinstep(e). (e) Analysisoffeedbackprocedureswhennecessary(tosameorothergroupsandprocesses). (f) Resolving an application example in an actual case and commenting on the use of pertinentavailablecommercialcomputersoftware. (g) Eventhougheachchapterisself-contained,therearenodoubtsthatProjectManagement is not a lineal sequential procedure. More often than not a continuous feedback is necessary;therefore,thereisalotofintercommunicationbetweenthedifferentprocesses, aspermentionedinsteps(c),(d)and(e). (h) Conclusionandrecommendations. (i) BibliographyandInternetreferences. v vi Preface Twenty-seven case examples are proposed in this book, most of them taken from actual experience.Consequently,therearemanytablesandfiguresinanattempttomakereadingand understanding as easy as possible. To avoid confusion, since a chapter may have more than oneexampleandmorethanonecasestudy,eachtable/figurebearstwocaptions:thenameof thetable/figure,andthecasestudyitbelongsto.Thissecondcaptionisunderlinedtoidentify thecaptionwiththecorrespondingcasestudy.Thosetables/figureswhichdonotrefertocase studiesbearonlythecaptionwiththename. Contents 1 IntroductionandRoadMaptoProjectManagement. . . . . . . . . . . . . . . . 1 1.1 SomeDefinitions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.1.1 Project. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.1.2 ProjectManagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.1.3 ConstructionProjectManagement. . . . . . . . . . . . . . . . . . . . . . 2 1.1.4 ConstructionManagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 1.2 BookOrganization. . . .. . . . . . . . . . . .. . . . . . . . . . . . .. . . . . . . . . . 2 1.3 StrategicSequenceforProjectManagement. . . . . . . . . . . . . . . . . . . . 3 1.4 SequenceofProcessesintheProjectLifeCycle. . . . . . . . . . . . . . . . . 4 1.4.1 TheFiveEssentialFunctionsinProjectManagement. . . . . . . . 6 1.4.2 GeneralandUsefulPointstoTakeintoAccount. . . . . . . . . . . . 6 1.5 ChapterStructure.. . . . . . . . . . . . . .. . . . . . . . . . . . .. . . . . . . . . . . . 8 1.6 TablesforPerformingActionsintheDifferentGroups. . . . . . . . . . . . 8 1.6.1 FirstGroup:Initiation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 1.6.2 SecondGroup:Planning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 1.6.3 ThirdGroup:ExecutionandOverseeing. . . . . . . . . . . . . . . . . 33 1.6.4 FourthGroup:MonitoringandControl. . . . . .. . . . . . .. . . . . . 34 1.6.5 FifthGroup:Closing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 1.7 ProjectCharter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 1.8 ProjectManagementPlan. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 1.9 OrganizationalProcessAssets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 1.10 StatementofWork(SOW). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 1.11 ConclusionofThisChapter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 2 ProjectInnovationandDesign. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 2.1 Definition. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 2.2 ProjectsOrigins. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 2.3 InnovationandProjectManagement. . . . . . . . . . . . . . . . . . . . . . . . . 39 2.4 CASESTUDY:DevelopmentofaToolforDecision-Making. . . . . . . 39 2.4.1 BackgroundInformation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 2.4.2 Research. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 2.4.3 Fundamentals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 2.4.4 TheNextMarket. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 2.5 ConclusionofThisChapter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 3 LeadershipandNegotiationforProjectManagement. . . . . . . . . . . . . . . . 43 3.1 PartOne:Leadership. . . . . . .. . . . . . . . . .. . . . . . . . . . .. . . . . . . . . 43 3.1.1 ProjectManagerAttributes. . . . . . . . . . . . . . . . . . . . . . . . . . . 43 3.2 PartTwo:NegotiationinProjects. . . . . . . . . . . . . . . . . . . . . . . . . . . 45 3.2.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 3.2.2 TheNegotiationProcess. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 vii viii Contents 3.2.3 CASESTUDY:IdentifyingtheProblem. . . . . . . . . . . . . . . . . . 51 3.2.4 ConclusionofThisChapter. . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 4 ProjectStrategicPlanning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 4.1 Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 4.2 ToolsforStrategicPlanning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 4.3 ElementsofStrategicPlanning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56 4.4 CASESTUDY:CommercializationandDistributionofanImported FoodProductintotheUSAMarket. . .. . . . . .. . . . . . .. . . . . .. . . . . . 57 4.4.1 BackgroundInformation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 4.4.2 SWOTAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 4.4.3 AnalysisofThisCase. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 4.5 Conclusion. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 4.6 SuggestedProcedureforStrategicPlanning. . . . . . . . . . . . . . . . . . . . . 61 4.6.1 StatetheGoalandAnalyzeDiverseFactors andPotentialRisks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61 4.6.2 ConsiderOtherStrategies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62 4.6.3 PerformaMarketStudyandAnalyzePotentialVariations. . . . . 62 4.6.4 StudyCustomLawsandTaxes. . . . . . . . . . . . . . . . . . . . . . . . . 63 4.6.5 ThinkAboutFacilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 4.6.6 Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 4.6.7 MonitoringandControl. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 4.6.8 FinalComments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 4.7 StrategicPlanninginRemedialWork. . . . . . . . . . . . . . . . . . . . . . . . . . 64 4.8 ConclusionofThisChapter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64 5 ProjectImpactontheEnvironment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 5.1 TheEnvironmentImportanceinProjects. . . . . . . . . . . . . . . . . . . . . . . 65 5.2 DetectionofImpactsProducedbyaProject. . . . . . . . . . . . . . . . . . . . . 66 5.3 ImpactIdentification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 5.4 CASESTUDY:ConstructionofaDamforaHydro ElectricProject. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 5.5 ProjectsDesignedtoProtecttheEnvironment. . . . . . . . . . . . . . . . . . . . 70 5.6 CASESTUDY:TheHiddenContaminationinManufacturing. . . . . . . . 71 5.6.1 BackgroundInformation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 5.6.2 LifeCycleComputation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 5.6.3 Analysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 5.7 ClosingaProject. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 5.8 ConclusionofThisChapter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73 6 ProjectRiskManagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 6.1 TheImportanceofConsideringRiskinProjects. . . . . . . . . . . . . . . . . . 75 6.2 ThePurposeofThisChapter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 6.3 DefinitionofProjectRisk.. . . .. . .. . . .. . . .. . . .. . . .. . . .. . .. . . . 76 6.3.1 RiskClassification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 6.4 RiskComponents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 6.4.1 DifferentThreatsinProjectsorRiskFactors. . . . . . . . . . . . . . . 77 6.4.2 AssetsUnderThreat. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 6.4.3 ProbabilityofOccurrence. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77 6.4.4 OutcomesandImpacts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 6.4.5 MeasuringtheRisk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 6.4.6 Safeguards. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Contents ix 6.5 ProjectRiskManagement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82 6.5.1 RiskAssessment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 6.5.2 RiskIdentification. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 6.5.3 RiskAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 6.5.4 RiskEvaluation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 6.5.5 RiskTreatment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 6.5.6 RiskMonitoringandControlling. . . . . . . . . . . . . . . . . . . . . . . 85 6.6 InternationalRiskStandard. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85 6.7 CASESTUDY:SoftwareDevelopmentProject. . . . . . . . . . . . . . . . . . . 85 6.8 ConclusionofThisChapter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 7 ProjectEconomicandFinancialEvaluation. . . . . . . . . . . . . . . . . . . . . . . 91 7.1 TheInvestmentCycle. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91 7.1.1 FinancingtheProjectThroughBankLoans. . . . . . . . . . . . . . . . 92 7.1.2 ApplicationsofFunds. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 7.1.3 PreparationoftheInvestmentScheduleDuring theConstructionPeriod. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92 7.1.4 DepreciationandTaxes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 93 7.1.5 Reinvestment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 7.1.6 OperatingCosts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94 7.1.7 WorkingCapital(WC). . . .. . . .. . . .. . . .. . . .. . . .. . . .. . . 94 7.1.8 DifferenceBetweenFixedAssetsandWorkingCapital. . . . . . . 96 7.1.9 ProjectManagerInvolvement. . . .. . . . . . .. . . . . . . .. . . . . . . 96 7.2 TheInvestmentCycleinStatements. . . . . . . . . . . . . . . . . . . . . . . . . . . 96 7.2.1 TheBalanceSheet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 7.2.2 CashFlowStatement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 7.2.3 IncomeStatement. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 7.2.4 ProjectAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97 7.3 SensitivityAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 7.4 SequencetoPrepareanEconomicandFinancialAnalysis foraProject. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98 7.5 CASESTUDY:ConstructionofaCopperConcentrationPlant. . . . . . . 98 7.5.1 BackgroundInformation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 7.5.2 InvestmentDuringConstruction. . . . . . . . . . . . . . . . . . . . . . . 99 7.5.3 TaxesDuringtheConstructionPeriod. . . . . . . . . . . . . . . . . . . 99 7.5.4 Financing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99 7.5.5 GeneralSpecifications.. . . . . . . . . .. . . . . . . . . . .. . . . . . . . . 100 7.5.6 OperatingCosts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 7.5.7 WorkingCapital. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101 7.5.8 StatementofProjectAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . 101 7.5.9 SensitivityFinancialAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . 102 7.5.10 FinalRemarksonThisExample. . . . . . . . . . . . . . . . . . . . . . . 103 7.6 BreakevenPointDiagram. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103 7.7 ConclusionofThisChapter. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104 8 ProjectSelectionandDecision-Making. . . . . . . . . . . . . . . . . . . . . . . . . . . 105 8.1 WhatIstheDecision-MakingActivityinProjectManagement?. . . . . . . 105 8.2 TheDecision-MakingProcessinProjects. . . . . . . . . . . . . . . . . . . . . . . 107 8.2.1 RioColoradoBasinStudy,Argentina. . . . . . . . . . . . . . . . . . . . 109 8.2.2 SchedulingBridgeRepairs,Canada. . . . . . . . . . . . . . . . . . . . . . 110 8.2.3 SelectionofaManageableSetofUrbanorRegionalIndicators toMeasuretheStateoftheEnvironment. . . . . . . . . . . . . . . . . . 110 x Contents 8.3 DifferentMethods. .. . . . .. . . . .. . . .. . . . .. . . .. . . . .. . . .. . . . .. . . ..110 8.4 TheSimusMethodforDecision-Making. . . 110 8.5 CASESTUDY:ConstructionofaGasPipeline 111 8.5.1 BackgroundInformation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111 8.5.2 EstablishingtheMathematicalModel. . . . . . . . . . . . . . . . . . . . 112 8.5.3 SensitivityAnalysis. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114 8.5.4 ProjectswithSeveralObjectives. . . . . . . . . . . .. . . . . . . . . . . . 115 8.6 VendorSelection. . . . . . . . . . . . . . . . . . . . 116 8.7 ConclusionofThisChapter. . . . . . . . . . . . 116 References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116 9 ProjectPlanningandScheduling. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119 9.1 PlanningtheWorkRelatedwithaProject. . 119 9.1.1 RequestingInformationAboutTasksandActivities. . . . . . . . . 119 9.1.2 PlanningforManufacturingProjects. . . . . . . . . . . . . . . . . . . . . 120 9.1.3 CASESTUDY:TheCriticalPathMethod(CPM)–Planning aWaterSupplySystemtoCreateaWaterPark. . . . . . . . . . . . . 120 9.2 SchedulingtheJob. . . . . . . . . . . . . . . . . . . 123 9.2.1 ConstructingtheS-curve. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 9.2.2 WorkinginParallel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123 9.2.3 ShorteningtheDurationofaProject. . . . . . . . . . . . . . . . . . . . . 124 9.3 TheMasterSchedule. . . . . . . . . . . . . . . . . 124 9.3.1 MergingNetworks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 124 9.3.2 PreparingtheMasterSchedulewithAllSubprojectsMerged. . . 126 9.4 CASESTUDY:DevelopingtheBasic EngineeringforanAutomobilePlant. . . . . . . . . . . . . . . . . . . . . . . . . 126 9.4.1 ProjectBackgroundInformation. . . . . . . . . . . . . . . . . . . . . . . 128 9.4.2 BiddingforConsultancyServicestoDeveloptheMechanical BasicEngineering. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 9.4.3 TeamicOrganizationforThisProject. . . . . . . . . . . . . . . . . . . . 128 9.4.4 DeterminingScopeofWork. . . . . . . . . . . . . . . . . . . . . . . . . . 128 9.4.5 EstablishingtheWorkBreakdownStructure(WBS). . . . . . . . . 131 9.4.6 EstablishingConsultants’Responsibilities. . . . . . . . . . . . . . . . 131 9.4.7 IntegrationandLinkagesBetweenInterveningProject Consultants. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 9.4.8 RelationshipandCommunicationwithOwner. . . . . . . . . . . . . 133 9.4.9 AcquiringProjectTeam–DeterminingTypeandQualification ofStaffNeeded. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 133 9.4.10 TeamResponsibilityMatrix. . . . . . . . . . . . . . . . . . . . . . . . . . . 134 9.4.11 PreparingScheduleofMeetingsfortheProjectTeam andSuppliers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134 9.4.12 PlanningandSchedulingTEAMIC’sOwnWork. . . . . . . . . . . 134 9.4.13 PreparingtheMasterScheduleIncludingMergingPrograms fromDifferentContractors. . . . . . . . . . . . . . . . . . . . . . . . . . . 135 9.4.14 TheS-curve. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 140 9.4.15 BudgetPreparationandScheduleofFundsNeeded. . . . . . . . . . 140 9.5 DataNeededWhenUsingDedicatedComputer SoftwareforPlanning,SchedulingandBudgeting. . . . . . . . . . . . . . . . 140 9.6 ShorteningtheDurationofaProject. . . . . . 141 9.7 UpdatingtheProgressofWork. . . . . . . . . . 141 9.8 FinishingtheProject. . . . . . . . . . . . . . . . . 142 9.9 ClosingThisProject. . . . . . . . . . . . . . . . . . 142 9.10 ManagingUncertainty–ThePERTApproach 144 9.10.1 TheWorkingsofthePertMethod. . . . . . . . . . . . . . . . . . . . . . 144

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