PM Knowledge and Skills Rev 0

Project
Management
Knowledge and Skills
Training Course and Workshop
By
Fawzy Harraz
Cairo
January 2021
Project Management
knowledge and skills
Project Management knowledge and skills
Course Outline 1/6
Module 1: Overview of Project Management.
1. Introduction
2. Management vs. leadership
3. Project Management styles and approaches
Module 2: Project Management Knowledge Areas
1. Overview of Project Management.
1. What makes a good project manager
2. Project Management career path
3. Key Project Management topics and issues
Cairo, Jan 2021 2 by : Fawzy Harraz
Project Management
PROJACS Project Management knowledge and skills

Course Outline 2/6
Module 2 : Project Management Knowledge Areas ‘cont’
2. Project Services Management.
1. Project Definition
2. Project Planning and scheduling
3. Project Cost Management
4. Project Procurement Management
5. Project Risk Management
3. Engineering Management
1. Scope and role of Engineering Management
2. Front-end loading, FEED and Detailed engineering
3. Engineering deliverables at various phases
Project Management

Course Outline 3/6
Module 2: Project Management knowledge areas ‘cont’
4. Construction Management
1. Roles and interfaces of construction management
3. Scope and deliverables of Construction management
5. Commissioning Management
1. Roles and interfaces of commissioning management
2. Project transition issues of commissioning
6. Quality Management
1. Quality assurance and Quality control
2. Non-conformances and concession requests
3. Quality control checks and tests
Project Management

Course Outline 4/6
Module 2 : Project Management knowledge areas ‘cont’
7. HSE Management
1. Objectives and role of HSE function
6. Golden rules of Safety
8. Project Organization and Team management.
1. Purpose driven Project Organization
2. Issues to consider in manning
9. Project Coordination.
1. Roles and duties
2. Skill and competencies
Project Management

Course Outline 5/6
Module 2 : Project Management knowledge areas ‘cont’
10. Project Procurement and Contracting
1. Contracting strategies and procedures
2. Interfaces with other project areas
3. Various deliverable
Module 3 : Key Project Management skills
1. Leadership and influencing.
1. Leadership elements
2. Leadership styles, strategies and approaches
3. Overarching Objective
2. Communication
Project Management
Course Outline 6/6
Module 3 : Key Project Management skills ‘cont’
3. Decision making
1. Elements of decision making
2. Decision making tools and techniques
3. Decision making mistakes
4. Decision support information packages
4. Time management
5. Delegation
6. Negotiation
1. Negotiation and conflict management
2. Negotiation approaches
3. Running Successful Negotiations
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PROJACS knowledge and skills
Questions,
Suggestions
…etc.
Project Management
Introduction
1. Administrative Processes (Registration…)
2. Safety/Escape Process
3. Getting known to each other
4. Sessions and break times (Prayer, coffee, lunch..)
5. Attendance Notes
6. Course Instruction tools (Manuals and handout ...etc.)
7. Occasional challenges and Q&A’s
8. Course mission
Project Management
Networking First;
Who are We?
Instructor
Fawzy Harraz
1) B.Sc. Marine Engineering and Naval Architecture
2) Chartered Engineer from UK Engineering Council.
3) Member of Institute Of Marine Engineering, Science and Technology
Forty years diversified experience in engineering, asset development planning,
project management, project controls (cost engineering, planning and scheduling,
risk management, Management of Change), value assurance and operations
planning. Main business areas include offshore/onshore upstream O&G facilities,
midstream Hydrocarbon Projects (Refineries, and NGL) and downstream
petrochemical plants, Power Plants. Experience with both green field and brown
fields projects and plant TAR management.
Project Management
Course Instruction Tools
1. Power Point Presentations.
2. Word files detailed write up. (link documents)
3. Software practice sessions ( Primavera, PertMaster,
Excel…)
4. Practice workshops.
Decision Making
Organizing a small project
Building a CPM network
Setting up a Risk Register
Running a schedule QRA.
Others...
5. Occasional challenges and Q&A’s with rewards.
Project Management
Course Mission
1. Value driven !
Both Instructor and Participants should get added value.
Both Instructor and Participants should practice focusing
on values when making decisions or shaping their stances.
2. Interactive dialogue
Make sure you follow what is said.
Whenever in doubt ask, you may be right.
Take note(s) for follow-up and discussions
3. Flexible to Participant specific needs
Who designed the outline ? Instructor
Who benefit by the course ? Participants
Who is the customer? Participants.
Raise your thoughts; we will discuss sooner or later.
.
Project Management
Course Mission
4. Pragmatic!
Relevant Industry needs.
Future relevant needs; yes as much as we can.
5. Industry Driven
Mainly energy and construction cases and examples
6. Just a Start !!!
Remember : There is always room for growth/improvement
7. Learning and forgetting curves
Keep the Manuals/materials/notes for future reference; you
will forget partly the course knowledge.
“Firehose dilemma “ t
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Questions,
Suggestions
…etc.
Project Management
Module 1 : Overview of Project Management.
1. Management and Projects
2. Management vs. leadership
3. Project Management styles and approaches
Project Management
What is Management ?
What is Project Management ?
What is Leadership
Project Management
What is Management ?
Management is defined as “Getting things done through
other people’s performance” .
Here are some facts and some aspects to remember:
1. People are either doers or managers; a one-man role
or a team-style role.
2. We need both styles to get things done; properly done.
3. We need to select right doers and right manager and
assign each to the right place in the business.
4. There is no “Jack of all trades” or “Arnold in a box”.
5. Both doers and managers need proper skills and
training.
Project Management
What is Management ? ‘cont’
Management is essential for the success of all business
areas, such as:
1. Project Management and Operations Management
2. Contracting and procurement management
3. Real estimate management
4. Financial Management
5. Human resources Management.
6. Film/movie management
7. Party social event management
8. Special dinner invitation.preparation management
9. …etc.
Project Management
What is Management ? ‘cont’
For all projects mentioned above, the Manager(s) need
certain traits to succeed:
1. Industry knowledge skills (nice to have)
2. Basic Management skills (must have).
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What is Project Management PM?
To understand what is PM and what is needed to be a PM, lets look at
the Level 1 Project Org Chart below
Command line Project Project
Functional line Manager Coordinator
Eng Commissioning Proj. Controls Construction QA/QC HSE

Manager Manager Manager Manager Manager Manager
Then let’s consider the following situation :

Project Services Manager reports a 3-month delay in the reactor and
the PM needs to assess the situation and decide:
a) consider a project delay of 3-month or
b) develop a recovery plan.
c) Combination approach
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What is Project Management ‘cont’?
In the above situation, the PM has the following options;
1. Ask the first line managers (EM, CM, PSM..) to get together,
review and assess the situation and come up with the best
decision. Then the PM, in confidence, takes the decision.
2. Ask the first line managers (EM, CM, PSM..) to review and
assess the situation and meet with the PM to present their
assessment. Then the PM challenges the FLMs and come
up with the best decision.
3. Share the issue with the FLMs individually and evaluate
their assessments, substantiate various cost/schedule
impacts then select best decision and cascade to FLMs for
implementation.
Project Management
Over the 3 approaches, the PM shows varying degrees of
dependence on the FLMs complemented by his own
assessment, evaluation and decision making.
1. The first approach is a more leader-oriented PM showing
high confidence in his Team
2. The second approach has less dependence on the Team
and more involvement sharing in the decision-making
process.
3. The third approach shows maximum technical involvement
in the assessment and decision=making and least
dependance on the Team contribution
Project Management
PM is the delivery of projects constrained by four specific
business drivers (cost, schedule, quality/scope and HSE).
1. A project is a once-through task with specific start/end.
2. PM needs specific skills to ensure effectively meeting
the business drivers.
Scope/
Cost
quality
HSE Schedule
Project Management
Project Management under business drivers
Simple workshop and some cases to consider
Project 1: 2 trains oil and gas plant suffering serious delay
in major equipment and material of one train
Decisions to consider:
1. Pay incentive to Supplier to expedite delivery
2. Make night shift work
3. Ship equipment and material by air freight
4. Pay incentive to labor
5. Increase fast track resource loading
6. Start up train 1 on time and admit delay in train 2
Assess the impact of each decision on Cost, Schedule,
Quality/scope and HSE.
Project Management
Project 2: A major hotel project suffers delay in HVAC and
Fire and Gas systems delivery
1. Pay incentive to Suppliers to expedite delivery
2. Make night shift work
3. Pay incentive to labor
4. Increase fast track resource loading
5. Defer the occupancy of 3 floors (150 room) by 4 months
Project Management
Project 3: A film maker forecasts 1-month delay; the movie
will miss an International festival and a high season show
1. Run scenes in parallel delegated to deputy director(s)
2. Reduce the number of rehearsals
3. Pay incentive to actors and all crews
4. Work overtime and night shift where possible
5. Do nothing and admit the delay
6. Cancel some scenes
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Project 4: A housewife invites a big group to a Party. She
had to spend 3 hours outside for urgent task and so she
suffers a 3-hours delay.
1. Seek help from her neighbor(s) to do simple recipe(s)
2. Buy some recipes ready from an outside restaurant
3. Cancel one or more recipe
4. Change the program by adding a drink/snacks time
5. Admit a delay and apologize.
Project Management
What is Leadership ?
While management may be enough to achieve targets, it is
not enough to ensure excellence or outstanding results, as
leadership does it.
Today’s culture is “Manage things” but “Lead people”
1. To be a leader, you must have followers
2. Behave to encourage, impel, motivate followship.
3. Select loyal, dependable and committed followers.
4. Earn your respect through your behaviors not orders.
5. Never abuse power or authority.
6. Leadership is demanding and burdensome; yet the
rewards for the leader and the business are magnificent
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Management vs. Leadership Performance
Under Management work style, people are driven by:
1. Compensation package; quit any time for a better offer.
2. Formal job description they are evaluated for it.
3. Contract stipulations; can leave @ 5:00 p.m.
4. Keen to take credit rather that support mates in need;
they may even steal credit ! By hook or by crook !
5. No volunteering; only if asked to do things (for credit).
6. Success is only the personal one.
7. Limited ambition and suspect of career growth
8. More barriers and formal communication
Project Management
Management vs. Leadership Performance
Under Leadership work style, people are influenced by:
1. Work environment; they substantiate it vs better offer.
2. Success is shared by the Team and the members
3. Delivering results matters more than taking credit.
4. Credit granted by Leader/mates) not personal claims.
5. Members enjoy volunteering rather than assignment
6. Career growth is faster and open
7. Amicable/non-toxic workplace.
8. Focus on targets more than non-productive efforts.
9. Always challenging the status coup.
10. Ethics/integrity lead opportunistic acts and nepotism
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Leadership Growth/development path
Level 5 : Executive Leader
Level 4 : Effective Leader
Level 3 : Competent Manager
Level 2: Contributing Team Member
Level 1: Highly capable individual
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Leadership Growth/development path ‘cont’
Level 1 : High capable individual
Productive contributions by talent, knowledge, skills and good work habits
Level 2 : Contributing Team Member
Contributes to achieving Group objectives; works effectively with others in a
Group setting
Level 3 : Competent Manager
Organizes people/ and resources toward effective and efficient pursuit of
pre-set objectives
Level 4 : Effective Leader
Catalyzes commitment to and vigorous pursuit of a clear and
compelling vision; stimulates the Group to high performance
standards
Level 5 : Executive Leader
Builds enduring greatness through a mixed combination of personal
humility and professional will
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Project Leadership Matrix
Proactive
Focus on Project's Strategic Vision
Proactive Proactive
Task People
Task Focus Management Leadership People Focused
Authority Based Reactive Reactive Inspiring/Engaging

Task People
Management Leadership
Reactive
Focus on Immediate Issues
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Anti‐Leadership Elements
Lack of Integrity Nepotism
Divisiveness Lack of empathy
Scapegoating
Arogance Hubris
Charisma Dark Narcissism

Elements of Psychopathy
Controlling
Behavious Leadership
Undermining Machiavellianism
Subordinates Threats to
Social Abusive Subordinate
Exclusion Behaviours
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Leadership Driving Elements
Situation
Leader Follower(s)
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Elements of transformational leadership
Risk Taker Vision Oriented

Transformational
Employee Flexible
Development
Leadership
Distribution Innovation
of Responsibility Friendly
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Positive Leadership strategies
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Relationship/Results
Leadership Model

High Respect High respect
Low Results High Results
Relationship
Respectful
Low Respect Low Respect
Low Results High Results

Rewarding
Results
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Overarching Leadership Objective?
Much said about Leadership; the ultimate role is:
Developing and Coaching New Leaders by:
1. Selecting potentials.
2. Gap assessment (what is missing to get there).
3. Planning the bridging of the Gap (Training, coaching)
4. Monitoring and follow-up
Final take-away
Leadership traits can complement shortages in
knowledge; the other way cannot
Project Management
End of Module 1 :
Overview of Project
Management
Questions,
Suggestions
…etc.
Cairo, Jan 2021
. 40 by : Fawzy Harraz
Project Management
Project Management
End of Module 1
Questions,
Suggestions
…etc.
Project Management
Module 2 :
Project Management
Knowledge Areas
Project Management
Project Management knowledge areas

1. Overview of Project Management
2. Project Services Management
7. HSE Management
Project Management

1. Overview of Project Management
7. HSE Management
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Project Management Career Growth

1. A project Manager may come up (develop his
career) from any project knowledge area ,
engineering, project services, construction…
2. Project Management is a combination of
1. Project Management skills
2. Project knowledge areas
The more PM skills he has, the less dependent he will
have on the knowledge and vice verse.
The Chart next slide is one of many possible charts to
develop a Project Manager and subsequently and Multi-
project Manager or a Project Director
Project Management
Project Management Career Growth

.
100%
Project Management
Knowledge Progress, %
80% Project Manager
Career Progress
Project Controls Manager,
60% Project Coordinatorer
Project cost/schedule Engineer
40%
Project Planner
20%
0%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Years in Project Management Career
Project Management
Project Management Alternative Career Path

. 100%
90% Project Management
Project Manager
80% Alternative Career Path
Project
70%
Coordinator
60%
Project Cost/schedule
50% engineer
40%
Project Engineer
30%
20% Disc. Engineer
10%
0%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Project Management
Project Management ‘Horizontal” Career Growth

This
. approach grows horizontally over multi-disciplines
to span various knowledge areas achieving ‘adequate’
levels to deliver the required quality standard
‘pragmatic” approach to bring up Project Manager
Risk
Planning Cost Construction Engineering
Contracts
Project Management
Vertical Career Growth

This
. approach focus on a single discipline
Leading to have a
Senior planning Manager , 95%
“professor” in a single
Discipline. Planning Department Manager , 90%
Some people still prefers

Lead planning Engineer, 85%
and enjoy it
Senior planning Engineer, 75%
Planning Engineer, 60%
Project Management
Top Project Management Issues

1. Success and failure factors
2. Value Management practices.
3. Management of Change.
4. SWOT analysis
5. Knowledge Management
Project Management

Success and failure factors
1. Setting tough (unachievable) targets
2. Ignoring positive news/notices
3. One-way dialogue (ignoring Team feedback)
4. Panicking when facing crises/weak leadership
5. Lack of actions for snowballing issues
6. Lack of benchmarking and peer reviews
7. “Frankenstein” syndrome; oversized members
8. Shortage or overage in Team functions
9. Informal or unclear/mixed organization channels
10. Jack-of-all-trades and Arnold in a box dilemmas
11. Variations and claims unattended.
Project Management

Value Management practices.
1. Value identification and assessment
2. Value chasing and development
3. Value recording and lessons learned
4. Risk and opportunities tracking and management
5. Options screening and ranking
6. Cost/Benefit analysis.
Management of Change
1. Change information sharing and cascade
2. Change identification and assessment
3. Go/No Go decision
4. Change documentation
Project Management

SWOT analysis
1. Listing SWOT elements
2. Setting the score card system (cost, schedule,
quality, technology, social, economics,
sustainability, HSE…) and balanced weights
3. Assign substantiated values for each element in
each score card
4. Assess the overall weight of each element
Project Management

SWOT analysis Case
An investor is considering to invest in a hotel or hospital.
Make an SWOT assessment
1. Setting the score card system (cost, schedule,
quality, technology, social, economics, sustainability,
HSE…) and balanced weights
2. Assign substantiated values for each element in each
score card
3. Assess the overall weight of each element
Project Management
SWOT analysis Case

Hotel Hospital
Wtd. Wtd. Final score
Qualitative Score Qualitative Score
score score
Strenghtes 25% Hotel Hospital
Market demand 40% Almost steady 75% 30% Increasing 95% 38% 8% 10%
Merger 20% Highly available 95% 19% Less available 50% 10% 5% 3%
Revenues,
Annual $/MM 40% Steady rates 70% 28% Increasing rates 85% 34% 7% 9%
$ investment
19% 21%
Weaknesses (‐ve) 25%
Business control 30% Highly available 50% 15% Less available 90% 27% 4% 7%
Running 40% Common 30% 12% Specialized 90% 36% 3% 9%
Higher
30% Less competition 80% 24% 40% 12% 6% 3%
Competition competition
‐13% ‐19%
Opportunities 25%
Growth 60% Fixed 60% 36% Steady growing 90% 54% 9% 14%
Farm‐out 40% Possible 90% 36% Disfficult 50% 20% 9% 5%
18% 19%
Threats (‐ve) 25%
Pandemics 40% Unfavorable 90% 36% Favorable 20% 8% 9% 2%
Geopolitics 30% Unfavorable 90% 27% Less impact 20% 6% 7% 2%
Resources 30% Available 20% 6% Rare 90% 27% 2% 7%
‐17% ‐10%
7% 10%
Project Management

Knowledge Management
This issue addresses continued learning and knowledge
buildup, through project execution, peers’ reviews,
benchmarking… Some tools applied includes:
1. Close out reports with lessons learned
2. Proper project data management (achieving and
sharing).
3. Building up of knowledge Owners pools/groups
Project Management
Project Management Styles

1. Skill-based delegative approach
Skills‐ Knowledge‐
based based
2. Knowledge-based doer approach
Skills‐ Knowledge‐
based based
Which style is better, in your viewpoint ?
Project Management

1. Overview of Project Management.
7. HSE
Project Management
Project Services PS Management Scope

PS is the Project decision-support function that give
qualified answers to all non-technical questions such as:
1. What is the scope of a package, tender..
2. What are the interfaces (internal and external)
3. Cost estimates and accuracies
4. Key business drivers and show-stoppers
5. Potential risks, exposure, impact, manageability.
6. Potential opportunities/associated business context.
7. Project cost and schedule trends
8. Latest (drop-dead dates) to take decisions, kick off
processes, award contracts
9. Time to mobilize key resources and failure impacts.
Project Management
Project Services key focus areas

1. Planning and scheduling
2. Cost engineering (estimation, monitoring…)
3. Project status monitoring, variations, trend analysis
recovery plans and reporting
4. Procurement/contracting planning and coordination
5. Risk Management
6. Stakeholders management
7. Various follow up and interface activities.
Project Management
Project Services Key Roles

1. Set up PMT mobilization and demobilization plans in
line with project activities schedule.
2. Set up simple pragmatic project control procedures for:
1. Planning and scheduling including variations/claims.
2. Cost engineering (estimation, contingency estimate,
cost control, invoicing, trend analysis..),
3. Risk Management
4. Procurement and contracting planning
5. Project Reporting and Management presentations
6. Management of change and document management
Project Management
Project Services Key Roles ‘cont’

3. Roll out/Buy out of PS procedures among staff (from
Project, Finance and Procurement divisions)
4. Check the resource levels in various project areas and
advise of shortages/overages, if any.
5. Check Contracts/Procurement tenders scope, Terms
and conditions, plans and feedback concerns
regarding cost or schedule.
6. In some schedule-sensitive projects, advise on
Bidders short list and market sources
Project Management
Project Services Key Roles ‘cont’

7. Steward project review meetings and set up the Action
Tracking list.
8. Coordinate with Project Managers or Superintendents
(in case of matrix organization) ensuring quality of
project services provided to the project.
9. In the case of large projects where the Departments
(Engineering, construction,,,) have their own project
services staff, provide the above support. Matrix Orgn.
Project Management
Project Services Career Development

1. Ideally project services career starts with a role in
planning and scheduling.
2. The candidate needs few years background in
engineering or construction.
3. The candidate should have the multi-tasking, cross
knowledge tendency with good communication skills.
4. Should have a minimum of CPM (critical path method)
knowledge, physical progress
measurement/reporting.
Project Management
Project Services Career Development ‘cont’

5. Running 1-2 projects (2-4 yrs.) and practicing
manhour and manpower estimation, he will be in a
good position to move to Cost engineering applying
the common cost/schedule analogy:
1. manhours vs. $
2. Norms vs. Unit rates
3. Manpower vs. Cashflow
4. Schedule delay vs. Budget over run
5. ….etc
Project Management

6. Originally a cost/schedule engineer doing cost and
schedule reporting was named a project controls
engineer in the 1980’s with the potential of developing
to a project controls manager, once he develops
communication skill.
7. The PS career knowledge expanded to cover risk
management, procurement/contracting. Stakeholders
management… etc.
Project Management

Project Services is a major Project Management that
logically leads to a Project Manager and Project Director.
100%
Project Management
80% Project Manager
Career Progress Project Controls Manager,
60% Project Coordinatorer
Project cost/schedule Engineer
40%
Project Planner
20%
0%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
Project Management
Project Services Key Functions/disciplines

3. Risk Management
5. Management of change and Document management
Project Management
Project Services Key Functions/disciplines

3. Risk Management
5. Management of change and Document management
Project Management
Project Plan and Schedule Development
1 Define scope
2 Build WBS packages and develop activities list
3 Define input constraints and Third Parties interfaces
4 Build logic CPM network
5 Schedule the activities
6 Load activities with resources.
7 Optimize resource levelling (no humps and hollows).
8 Baseline the project plan
9 Monitor and update progress
10 Flag/alert schedule issues
11 Recommend recovery plans, if needed
Project Management
Examples of constraints and TP Interfaces
1 Owner supplies Process Columns; interface with
Engineering, Construction and startup
2 Owner supplies HVAC: interface with Engineering,
Construction and commissioning
3 Geotechnical (soil investigation) report interface with
Engineering
4 Acquisition of approved Permits (fire system design, Army..) and
EIAs
Project Management
How to handles constraints and Interfaces
Two ways to handle constants and interfaces:
1 Inert and activity with “by others” as responsible Dept.
2 Use a constrain date on the dependent activity such as
Start not earlier than OR Start on. Such dates are
agreed as commitment on the TP as far as possible:
Project Management
Interface Dates List
Two ways to handle constants and interfaces:
Early Late
Item Dependent activity Note
date date
Geotecnhinal report 1‐Jan‐20 1‐Feb‐20 Foundatio/buidling design
Receive foundation loads
1‐Jun‐20 1‐Jul‐20 Foundation design IFC
and anchor bolt location
Receive nozzle loads, size
1‐Sep‐20 1‐Sep‐20 Piping design Critical
and orientation
HVAC duct sizing/routing 1‐Jul‐20 1‐Jul‐20 BIM and multi‐discipline dwgs
Receive coulmns at site 1‐Jun‐21 1‐Jun‐21 Foundation design IFC Critical
Project Management
Column Interface
data Nozzle size, orientation,
Wind loads
Elevation and rating
and moments
Column Wt.,
Anchor bolts no., size
and PCD
Foundation
Project Management
Planning and Scheduling Topics
1. Project definition from various perspectives.
2. WBS, DOR Responsibility Matrix and Interfacse
3. Activity listing and basic activity data; CTR sheets.
4. Logic relationships; project execution procedures.
1. Planning premises.
2. Coordination procedures
3. Engineering procedures.
4. Procurement and contracting procedures.
5. Constructability aspects.
6. Commissioning and startup systems sequencing
and procedures.
7. Fast tracking approaches.
Project Management
Basics of planning and scheduling
Definitions of planning and scheduling:
1. Planning : collecting maximum knowledge about the
project activities up to the sequence of execution.
2. Scheduling : defining the timeline for various
activities and overall project
Then ; what next ?
Project Management
Basics of planning and scheduling ‘cont’
Key Questions for planning
1. What do we plan to do (scope definition).
2. Who will do which part (Contracting strategy).
3. How will we do each part ? (project procedures)
4. Do we have all the resources to do (Finance, HR,
equipment, execution procedures, facilities..)?
5. Is there any limitations (geographical, environmental,
resource availability...).
6. What Mandatory logic (Interdisciplinary relations,
Construction logic, Constructability issues..)
7. Third Part(ies) TP involvement (Authorities, NGO’s,
Communities..).
Project Management
Once we develop mature answers, to the above
Key Questions, we can proceed to:
1. Break down project to “Manageable” work elements.
2. Further breakdown WE’s to defined activities.
3. Based on activities attributes (type, scope, volume,
nature, industry practice, HSE ..) assign a duration.
4. Set the activities in sequence, using basic logic
relationships (FS, SS, FF).
5. Run CPM calculation (manual or computer based)
Project Management
Various approaches to activities sequencing:
1. Simple straight forward (normal using Finish to Start).
2. Crash/Fast Track (start to start or Finish to start).
3. Balanced (using both approaches).
4. Most projects need balanced approach.
FS is really applicable only with very small size activities;

what is the issue ?
Such approach needs a massive number of activities.
How ???
Project Management
Guidelines for Activities Sequencing
Construction Planning:
1. Bottom Up
2. Inside Outside
3. Large Small
Procurement Planning
1. Steel Piping Electrical
2. Underground piping Aboveground piping
3. Large bore valves Small bore
4. Control and shutdown v/vs Piping valves.
5. Large bore piping Small bore
6. Long lead equipment Other equipment
Project Management
Guidelines for Activities Sequencing ‘cont’
Engineering Planning:
1. Engineering planning need to be Construction-driven
and procurement driven
Site preparation/roads large foundations
Plant buildings (CR, Substation) Domestic bldgs.
Main steel piperacks Other structures/buildings
LLI equipment supply specs other equip SS
Project Management
A01 8 TF A02 9 TF
Site Preparation FS Control room/SS FF
ES LS 0 ES LS 4
EF LF EF LF
A04 8 TF A05 4 TF A06 6 TF

SS Foundations FS Equipment FS Commissioning
2 ES LS 0 ES LS 0 ES LS
EF LF EF LF EF LF
FS 3
FS 0
A07 7 TF A08 5 TF Step 1
SS Steel FS Piping Logic
3 ES LS 0 ES LS
EF LF EF LF
Project Management
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Activity
A01 Site preparation 8
A02 Control room 9 FF
SS 4
A04 Foundations 8 2
A05 Equipment 4 FS 0

SS
A07 Steel 6 3
A08 Piping 5
A06 Commissioning 6
A05
A06
A08 Driving reelationship
A02
Project Management
Now it is right time to clarify: what is PERT and What s CPM?
1. PERT stands for Program Evaluation and Review
Techniques and CPM stands for Critical Path Method
2. PERT is a planning technique used in new (research type)
projects such as Polaris and Apollo projects, with lots of
unknowns and no clear activities scope, interdependencies
or durations. The program had to be evaluated/reviewed
periodically to update the expected completion date.
3. Schedule dates came from CPM method (previous slides).
4. CPM is the planning approach for projects where activities
scope, logic and durations are fairly known to PMT.
5. Finally probabilistic and deterministic scheduling, which is
another topic, covered under Risk Management
Project Management
Schedule Optimization
1. Validating anomalies/glitches (missing predecessor,
successor and orphans).
2. Optimizing durations.
3. Verifying calendars of various activities.
4. Optimizing relation types and lags.
5. Optimizing overall durations.
6. Adding constraints.
7. Resource loading curve
1. Early start
2. Late start
8. Resource leveling.
Project Management
Project Baseline Setting
Time
Activity 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72
Site prepn
Foundations
Buildings
Steel fab
Steel erect
Piping fab
Piping erect
Electrical
Instrument
Precomg
Commg
Step 2 Baseline (Target Plan) Target Current
Project Management
Project Plan Early and Late curves
Project Management
Project Progress Monitoring and updating
Time now Time Notes
Activity 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 44 46 48 50 52 58 60 62 64 66 68 70 72
Site prepn
Foundations Delay batch plant
Buildings Delay batch plant
Steel fab Delay del+ increased qty
Steel erect Delay in fabn
Piping fab
Piping erect
Electrical
Instrument
Precomg
Commg
Step 3 Report progress Target Current
Report Act start Remaining duration
Project Management
Effect of Early Schedule on Cost
Annual intrest 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08
Monthly intrest 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01
Comp intrest 1.01 1.01 1.02 1.03 1.03 1.04 1.05 1.05 1.06 1.07 1.08 1.08 1.09 1.10 1.10 1.11 1.12 1.13 1.13 1.14 1.15 1.16 1.17 1.17 1.18
Comp intrest 1.01 1.01 1.02 1.03 1.03 1.04 1.05 1.05 1.06 1.07 1.08 1.08 1.09 1.10 1.10 1.11 1.12 1.13 1.13 1.14 1.15 1.16 1.17 1.17 1.18
Budget Month 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
150 Early dates Monthly % prog 100 1 2 4 5 5 6 6 6 6 6 7 6 6 5 5 4 4 3 3 2 2 2 2 1 1
150 Late dates Monthly % prog 100 1 1 1 2 2 2 2 2 2 3 3 3 3 4 4 5 6 7 8 9 9 8 7 4 2
150 Early dates Monthly $ cost 150.0 1.5 3.0 6.0 7.5 7.5 9.0 9.0 9.0 9.0 9.0 10.5 9.0 9.0 7.5 7.5 6.0 6.0 4.5 4.5 3.0 3.0 3.0 3.0 1.5 1.5
150 Late dates Monthly $ cost 150.0 1.5 1.5 1.5 3.0 3.0 3.0 3.0 3.0 3.0 4.5 4.5 4.5 4.5 6.0 6.0 7.5 9.0 10.5 12.0 13.5 13.5 12.0 10.5 6.0 3.0
150 Early dates Month esc. $ 15.4 0.27 0.52 0.99 1.18 1.12 1.28 1.21 1.14 1.08 1.01 1.10 0.88 0.81 0.62 0.57 0.41 0.37 0.25 0.21 0.12 0.10 0.08 0.06 0.02 0.01
150 Late dates Month esc. $ 9.9 0.27 0.26 0.25 0.47 0.45 0.43 0.40 0.38 0.36 0.50 0.47 0.44 0.41 0.50 0.45 0.52 0.55 0.57 0.57 0.55 0.46 0.32 0.21 0.08 0.02
Project Management
Scope the Project
1. Project scope is all the work packages developed from
various systems (power and energy) or units
(construction industry).
2. Managing project scope is primarily concerned with
defining and controlling included and excluded parts.
3. Project scope is one of the four business
driver/constraints of any project; (time, cost, HSE and
Quality/scope).
4. In other words, project scope establishes the
boundaries and interfaces and addresses what to be
done in project.
Project Management
Project Scope management
Planning Stage.
1. Collect requirement
2. Define Scope
3. Create WBS
Monitoring Controlling Stage.
1. Verify Scope and scope changes/variations
2. Control Scope including changes/variations
Project Management
Source Data for Project Scope
1 Statement of Requirement document (SOR)
2 Development Plans
3 Project Engineering documents (dwgs, specs.
4 For Contractors, the Contract packages battery limits.
5 Work Breakdown Structure (WBS)
Project Management
Source Data for Project Scope
Project Scope from Various Perspectives
Scope Timeline Company type
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Pre- and Post-project Owner/Operator

EPC full scope EPC Contractor
Construction Contractor Construction s/c
Covers conceptual, studies, FEED, EPC scope and post start up evlautaion
Covers engineering, procurement, construction, commissioning and startup/performance testing
Construction from site handover till mechniacl completion
Project Management
Schedule Review Process
Often Contractors embed tricks and boils in the schedule that can
help develop future claims. Sometimes they buy out a ‘long’ project
duration and then complete earlier to get the bonus. Owner should
cleanse the schedule from such issues in addition to normal errors
as below:
1. Completeness of the schedule scope as per project procedure.
2. Alignment of durations and lags to Project Specs/requirements
3. Weather windows and vacations
4. Interface dates and Field need dates
5. Improper logic or missing logic
6. Ignoring HSE requirements in the duration estimates
7. Assessment of schedule impact of variations.
8. Inadequate resource estimate/loading
Project Management
End of Planning and
Scheduling Outline
Q and A
Project Management
Project Services Key Functions

1. Planning and scheduling including variations and
claims.
2. Cost management (estimation, contingency estimate,
3. Risk Management
5. Management of change and document management
Project Management
Cost Management Topics
1. Fundamentals for cost management process.
2. Project cost models
3. Operations cost models
4. Roles and responsibilities
5. Professional cost engineering institutions
6. Budgeting benchmarks and standards
7. Good cost engineering practices
Project Management
Cost Management Overview

What is Cost Management ?
An integrated team effort from inception to
decommissioning and abandonment DECAB, by all
involved Company functions and Project Team members
through various Life Cycle Management stages with the
intent of maximizing facilities development economics.
Who controls the Cost ?
Do you have any role in the list (overleaf)?
Do you plan to become one of this list?
Project Management
Cost Management; Who is Involved ?

1. Asset Manager.
2. Project Manager.
3. Project Services Manager.
4. Cost control Engineer.
5. Estimator.
6. Planner.
7. Cost Accountant.

Project Management
Career path for cost engineering position

1. Set out a Career Path.
2. Step-by-step?
3. Be Patient.
4. Practice as much as you can
5. Yet; take learning opportunities in order to:
1. Acquire certain knowledge areas.
2. Acquire certain skill/aptitudes.
3. Get exposed to certain situations.

Project Management
Fundamental Cost Management Areas

1) Project Development (Statement of Requirements, Project
Execution Plan PEP, Contracting Strategy)
2) Project Life Cycle (Select/define/FEED/Design/Build/
Operate, Dec-commissioning and abandonment)
3) Scope definition
4) Planning and scheduling.
5) Cost estimating.
6) Monitoring, trending (variations and claims) and
Controlling
7) Risk Management
8) Earned Value Analysis, and
9) Value Engineering.
Which of these areas do you have any competence ?
Project Management
Fundamental Cost Management skills

1. Integrated vision
2. Holistic (multi-viewed) approaches
3. Negotiation.
4. Assertiveness and Influencing.
5. Commitment
6. Initiative and challenging.
7. Innovative
8. Communication
9. Presentations.
10. Role player.
Which of the above skills do you think you have?

Project Management
Situations that need Cost Mgt Support

1. Facilities development planning; Decision Support
Packages DSP, passing Gates.
2. Project Execution planning PEP workshop.
3. Contract/procurement negotiations; rates.
4. Claims resolutions/settlement.
5. Review/approval of baseline budget/plans.
6. Invoice checking (or approval).
7. Trends preparation/approval.
8. Risk assessment workshop.
9. Value assurance/engineering workshop.
Have you been in any of these situations?

Project Management
Cost Management Career Path

Generally flexible; better pre-planned through:
1. Cost accountant or discipline engineer (2-3 years)
2. Project engineer (engineering/construction) (2-3 years)
3. Project Planner or Estimator (3-4 years)
4. Cost controller, QS or Contract administrator (3-4 yrs).
5. Project control engineer (2-3 yrs).
6. Development planner/facilitator (3-4 yrs)
7. Project services manager (4-5 yrs)
8. Project Manager/Development Manager (4-5 yrs).
9. Asset Manager (open end).
In total, we need 12-15 to become a PS Manager and 15-20
years to become a PM, in a good environment
Project Management
Cost Information Sources in ranking order

1. Seniors and Peers expertise (best of all)
2. Company procedures, guidelines/best practices.
3. Project specifications, work instruction.
4. Industry standards and best practices.
5. Professional institutions (PMI, Canadian Institution
Quantity Surveyors, AACC).
6. Books/Magazine. (HC processing, Cost Engineering..)
7. Training courses/workshops/conference.
8. Internet.

Project Management
Mission and Vision of Cost Management

1. For a Project Manager
2. For a Project Services Manager
3. For an Estimator
4. For a cost accountant
1. Cost Management vision for a Project Manager:

Completing the project scope on time within budget to
acceptable HSE standards.
Challenge Questions for real project situations (next
slide)

Project Management
Cost Management vision for a Project Manager

‘First Case Study’
With an LLI (Long Lead Item) the Vendor, at 70%
complete, expressed potential insolvency due to massive
currency exchange. What are options for the PM:
1 Terminate the PO and apply Terms and Conditions.
2 Re-assign the PO to another Vendor (no. 2 successful
bidder).
3 Pay additional sums to the Vendor to complete.

Project Management
Offshore Platform Jacket and Topside

Project Management
Cost Management vision for a Project Manager

Second Case Study (Heavy Offshore Lift)
With an offshore 850 ton Jacket, PM had two offers:
1 1,200 ton capacity barge, barge 350 k$/day available 3
months later than schedule date.
2 870 ton capacity barge 250 k$/day available at
schedule date.
Jacket installation Duration is 21 days.

Which offer the PM should take ?

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Project

Project Management knowledge and skills

Project Management knowledge and skills

Project Management knowledge and skills

Project Management knowledge and skills

Eng Commissioning Proj. Controls Construction QA/QC HSE

Then let’s consider the following situation :

Level 4 : Effective Leader

Level 3 : Competent Manager

Level 2: Contributing Team Member

Level 1: Highly capable individual

Authority Based Reactive Reactive Inspiring/Engaging

Charisma Dark Narcissism

Project Management knowledge areas

Project Management knowledge areas

Project Management Career Growth

Project Management Career Growth

Project Management Alternative Career Path

Project Management ‘Horizontal” Career Growth

Vertical Career Growth

Some people still prefers

Top Project Management Issues

Top Project Management Issues

Top Project Management Issues

Top Project Management Issues

Top Project Management Issues

SWOT analysis Case

Top Project Management Issues

Project Management Styles

Project Management knowledge areas

Project Services PS Management Scope

Project Services key focus areas

Project Services Key Roles

Project Services Key Roles ‘cont’

Project Services Key Roles ‘cont’

Project Services Career Development

Project Services Career Development ‘cont’

Project Services Career Development ‘cont’

Project Services Career Development ‘cont’

Project Services Key Functions/disciplines

Project Services Key Functions/disciplines

Then ; what next ?

FS is really applicable only with very small size activities;

A04 8 TF A05 4 TF A06 6 TF

A05 Equipment 4 FS 0

Buildings Delay batch plant

Steel fab Delay del+ increased qty

Steel erect Delay in fabn

Pre- and Post-project Owner/Operator

Project Services Key Functions

Cost Management Overview

Cost Management; Who is Involved ?

Cairo, Jan 2021 100 by : Fawzy Harraz

Career path for cost engineering position

Cairo, Jan 2021 101 by : Fawzy Harraz

Fundamental Cost Management Areas

Fundamental Cost Management skills

Cairo, Jan 2021 103 by : Fawzy Harraz

Situations that need Cost Mgt Support

Cairo, Jan 2021 104 by : Fawzy Harraz