Project Management presentation to renewable energy

1. Project Management
/Energy Management
Dr Sina Rezvani

2. Objectives of the workshop
 At the end of the workshop you should be able to
know:
 What are the main reasons for project
failure/success?
 Key project management principles
 What are project success metrics in Environmental
Engineering Design / Energy Management ?

3. Describe the nature of a project?
A project is a sequence of unique, complex, and
connected processes and activities having one goal or
purpose and that must be completed by a specific
time, within budget, and according to specifications.
• Projects involve risks
• Different phases
• Involves people and groups with different expertise or
backgrounds
• Projects don’t fall from sky (Problem)
• Requires planning and coordination of interrelated
activities
• Feasibility studies

5. Project inception
• Projects don’t fall from sky, they are
created
• Feasibility studies / Project evaluation
• Planning
• Coordination of interrelated activities
• Resource allocation

7. Steady state,
Homoestasis
Sustainability
Equilibrium

9. Failure often results from flawed
perceptions of what is involved in
successfully managing complex system
development from inception through
completion.
Kevin Forsberg: Visualizing Project Management

10. Source: Humor in Systems Analysis

11. Project limitations
• Controllable:
– Specifications
– Deadlines
– Budget
– Skills
– Experience
• Beyond our control:
– Environmental
– Political
– Global

14. Why projects fail?
• The goal of the project needs to be defined
clearly
• Lack of change management
(changes to project are not controlled)
The ‘moving goalposts’ syndrome.
• Poor or non-existent planning
A solid plan is one of the key steps of the effective project
management.
• The project is not resourced as planned
Resources are not available at the time, or are not booked in
advance

16. Why projects fail? Cont…
 Quality criteria is not defined or measured
 Lack of ownership - It is not clear who is
responsible for the project outcome
 The progress is not monitored and
controlled properly.
 Lack of coordination of activities
 The project is not led properly
 The project reporting is inadequate or does
not exist
On time, on budget and as defined

17. Tip-of-the Iceberg syndrome

18. Things you should know
• Define your project clearly
• Proper project planning in terms of process
• Responsibilities
• Communication plan + implementation
• Quality plan + implementation through monitoring
• Contingency plans + implementation if required
• Managing plans (Project manager)
• Identifying risks and possible problems
• Problem solving (something will go wrong at some
point)

19. What is your project?

20. General project life cycle
– Problem perception
– Problem definition
– Ideas and suggestions
– Decision making process
– Planning
– Implementation
– Validation
– Feedback
– Correction

22. The project cycle
Problem
Evaluation Identification
Implementation Formulation

24. CLASSIFICATION OF PROJECTS
Small Large Aerospace/
In-house R&D Construct. Construct. Military MIS
Interpersonal skills Low Low High High High
Organisational structure Low Low Low Low High
Time management difficulties Low Low High High High
Number of meetings Excessive Low Excessive Excessive High
PM's supervisor Middle M. Top M. Top M. Top M. Middle M.
Project Sponsor present Yes No Yes Yes Yes
Conflict intensity Low Low High High High
Cost control level Low Low High High Low

25. LIFE-CYCLE PHASE DEFINITIONS
Engineering Manufacturing IT Construction
Start-up Formation Conceptual Data gathering
Definition Buildup Planning Planning
Main Production Definition Basic Eng.
Termination Phase-out Design Major review
Final Audit Implementation Detailed Eng.
Conversion Construction
Commissioning

26. Project Plan
• Why? • Objectives
• What? • Products
• When?
• Milestones
• Who?
• Responsibilities
• How?
• Approach
• How Much?
• Resources & Effort

27. Project management strategy

28. Project responsibilities

30. Brief Generation Process
• Initial phase
– Identifying user requirements/needs
– Setup working group (chair, responsibilities…)
• Statement of needs
– Meetings/workshops
– Draft statement of needs
• Function, timing, priorities, land,
– Review and confirm the needs
• Business case
– Physical and financial resources and impacts
– Draft, review and confirm business case
– Set and confirm targets

31. Statement of needs
• Activities and Functions
– Functions: Number of rooms, open areas, space requirements, heights,
frequency of use, special needs, maintenance, visitors, people
movements, access areas, deliveries, parking, site availability, etc.
– Features: Wall, floor ceiling materials and finishes, relationships, etc.
• Environmental Condition/Control
– Temperatures, humidity, fume extraction, light, dust, energy needs,
landscapes, visual impact, water usage, etc.
• Security / Safety Issues
– Privacy, radiation, access, fire, noise, wastes, chemicals, special needs
(museums, hospitals, manufacturing areas) etc.
• Services
– Air conditioning, heating/steam, ventilations, lighting, boilers, CHP,
gas/electricity/water supply, effluents, IT, storage,

32. Functional Briefing (FB) Stage
• Based on agreed statement of needs
– Translated into researched and comprehensive FB
• FB is used to generate
– a clear definition of the project
• Main objectives, client, functions, flexibility, services, specific
requirements, prioritisation, feasibility, impacts
– Budget and cost estimations (different costs)
– Project schedule
• FB requires
– Experts and multidisciplinary skills
– Conceptual analysis
– Knowledge base / large experience base
– Plan of the proposed building according to agreement
– Final approval

35. Primary goal from entrepreneurial
point of view
• Maximize profits
• Minimize costs
• Competitiveness
• Economic growth
• Short pay back times
• Low operating costs
• Demand-Supply balance
• Short term planning
• GDP approach to everything

37. Primary goal from functionality point
of view
• System according to specification
• High availability /reliability
• Good performance attributes
• High lifetime
• Low maintenance
• Additional functionality (be careful with this one)
• Easy to use but complex enough to perform more
complicated jobs
• Ergonomics

39. Primary goal from social point of view
(HDI approach)
• Improving standard of life
• Better health care/standards
• Human development
• Social cohesion / abolishment of prejudices
• Nurturing a growing culture
• Education/training/sciences
• General happiness (lower mental disorders ..)
• Lower crime rates, elimination of corruption
• Justice/fairness (competition) /human rights
• Universal participation/grassroot activities
• Humanitarian activities
• Cultural development

41. Primary goals from environ. point of view
Requires long-term planning
• Sustainability issues
• Preservation of resources (e.g. by improving efficiencies,
renewable energy …)
• Reducing GHG emissions/ pollutions/waste (water, air
soil etc.)
• Preserving geological heritages / ecosystems
• Biodiversity / reforestation
• Population dynamics /urban developments/ land use
• Maintaining environmental balance
• Protecting water / food resources (pest control,
fertilizers, rerouting water etc.)

42. Heating options
• Low energy house / building
• Passive house
• Heat recovery
• Insulation
• Alternative ways of heating
– Biomass
– Geothermal
– Solar

44. Project Authorisation
• Project initiation
• Project Feasibility analysis
• The Project Business Case
– Created usually by the sponsor
– SMART objectives
• Project Charter
– Formally authorises the project
• Project strategy /Scoping

45. Project specific information
• Project perception
– Problem identification, goals and objectives
• Human resource Management
– Stakeholders: Team members, sponsors,
managers, other peoples
– Responsibility matrix and levels (Organ. charts)
– Leadership, management, communication,
ownership
• Management of Non-human resources
– Identifying materials, tools, machines etc.
– Procurement plant, supply chain management

46. Project specific information (cont.)
• Project management approach
– Process: Project strategy (TD or BU), planning, best
practice guidelines, monitoring progress, flexibility,
contingencies
– Project schedule: Task dependencies, time allocations
(deliverable, milestones, ..), budgets
• Project monitoring
– Checklists /recording progress
– Cost / time estimation versus real values
– Evaluating the work of people and the quality of non-
human resources
– Quality control mechanisms: tests, inspections,
problem identifications, spotting bottlenecks
– Reports: Feedback, useful for future projects

47. Project specific information (cont.)
• Project performance
– Benefits to customers, operators, people,
– Quantify benefits: Environ., social, R&D, scientific
etc.
– Operating and maintenance
– Breakeven electricity selling prices / payback time
– Renewable energy directives, emission trading
schemes (ETS), other financial incomes

48. Understand your project through a
Mind Maps
Address the main project aspects in a diagram
• Problem perception
• Project/problem definition
• Feasibility aspects
• Complexity versus simplicity
• Goals / main ideas / project differentiation/
innovation
• Project management: Structure, team, planning,
organisation, control, timing

50. Civil and building engineering
• Project management Process
Location, scale of work, environmental
impact, magnitude of service
Initial project design, simulations, tests,
prototyping, benchmarking: System
selection, risk reduction, cost estimation
Decision making process: Shareholders,
loans, planning permission
Designing the work: Specifications,
milestones, resources, cost optimisation,
contacts (according to ICE)
Construction: control mechanisms,
resource allocation, actual work
Commissioning: Tests

51. Parties involved
• Promoter/employer: finance and initiate the project
• Contractors: Implementing the work, (invited to
tender), providing resources
• Agent: In charge of giving the day-to-day instruction,
directing construction work on site
• Plant manager: plant availability
• Foreman: Keep the work moving ahead
• Skilled personnel: Welders, brick layers, carpenters,
concrete gangs etc.

52. Engineers
• Engineer + advisors: Supervisory role (works in
partnership with contractors)
 Consulting engineer: Feasibility analysis
 Section engineer (sub-agent): Setting out works
and progress report
 Independent engineer (as described by ICE):
impartial role of communicating between both
sides
 Resident engineer (Project manager): appointed
by the employer to supervise the completion of
work according to the spec. , administer the
contract

53. Further jobs
• Quantity surveyor: Manages costs
relating to building, payment
applications
• Office manager: Misc activities
• Site accountant: Transactions
• Plant operators: Drivers, crane
operators,

54. Simplified Process
Initiating
Planning
Controlling Executing
Closing

55. R&D
• Phase 1: Proposal
• Phase 2: Analysis
• Phase 3: Design
• Phase 4: Development
• Phase 5: Implementation
• Phase 6: Post-implementation

56. Project planning
• Historical Records – need to collect and use
for planning, estimating and risk
• Meetings to consult on project scopes
• Work Breakdown Structures
• Do not introduce benefits that are not stated
in requirements
• Needs of all stakeholders should be taken
into account during all projects
• Team Members must be involved in project
planning
• Project Manager must be pro-active

57. Implementation
• The application of knowledge, skills,
tools and techniques to project
activities
• Meeting the expectations of
stakeholder
• Performance parameters:
– Scope, time, cost, and quality
– Requirements vs. unidentified needs

58. Resources
Success
Time Costs
(Schedule, Deadline)

60. Management
– Defining
– Planning
– Organising
– Staffing
– Executing
– Controlling
– Directing
– Completing
– Documentation
– Feedback

62. Human resource planning
• Definition:
– “The process for ensuring that the HR
requirements of an organisation are
identified and plans are made for satisfying
those requirements.”
• Activities involved:
Identify and acquire the right number of
people with the proper skills.
Motivate them to achieve high performance.
Create interactive links between business
objectives and people-planning activities.

63. Aims of HRP
• Attract and retain the number of people required with
the appropriate skills, expertise and competencies
• Anticipate the problems of potential surpluses or
deficits of people;
• Develop a well trained and flexible workforce to
contribute to the organisation’s ability to adapt to an
uncertain and changing environment;
• Reduce dependence on external recruitment when
key skills are in short supply by formulating retention,
as well as employee development strategies;
• Improve the utilisation of people by introducing more
flexible systems of work.

64. Practice
• Resourcing strategy
• Scenario planning
• Estimating future requirements
• Labour turnover
• Action planning

65. ‘HARD’ and ‘SOFT’ HRP
Hard HRP Soft HRP
– Quantitative analysis to – Ensuring the availability
ensure that the right number of people with the right
and sort of people are type of attitudes and
available when needed motivation who are
committed to the
organisation and
engaged in their work and
who behave accordingly

66. Soft HRP
• Soft HRP is based on assessments of the requirement for these
qualities and measurements of the extent to which they exist,
by:
– Using staff surveys
– Analysing outcomes of performance
management reviews
– Analysing opinions generated by focus
groups

67. The HRP Process
Four main categories of staff:
• Existing staff
• New recruits
• Potential staff
• Leavers

68. A small engineering firm employs 6 people: Louis (Lo), David (D), Walter (W), Tom
(To), Pa: Patrick, Pe: Peter
20 days to complete 5 Jobs/Orders
Determine whether a solution is possible.
Use a bar chart format to demonstrate your answer
JOB→ A B C D E
↓ SEQUENCE
1 W-2 L-2 L-2 L-3 T-1
2 D-2 W-6 T-4 T-3 L-1
3 T-4 L-4 W-5 Pa - 3 Pa - 3
4 D-2 D-2 L-4 Pe - 3
5 Pa - 3
The sequence cannot
be altered

69. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
A
B
C
D
E
Louis
Tom
Walter
David
Patrick
Peter

70. Accumulation of work
Louise Tom Walter David Patrick Peter
1 7 1 2 0 0 0
2 1 7 6 2 0 0
3 4 4 5 0 6 0
4 4 0 0 4 0 3
5 0 0 0 0 3 0
16 12 13 6 9 3

71. Plan
restructured
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Lo
To
W
D
Po
Pa
A
B
C
D
E

72. Exercise 2
Order Operation Duration
1. Excavate base 1 day
2. Concrete blinding ½day
3. Reinforcement to base 1
4. Concrete base 1
5. Reinforcement to column 1
6. Formwork to column 2
7. Concrete column 1
8. Strike formwork ½day
Prepare a plan in bar chart form for the construction of 3No. Columns.
a. You have only the use of 1No. of each resource
b. Unlimited resources

73. Solution
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Excavate Base
Concrete Blinding
Reinforce to Base
Concrete Base
Reinforce to columns
Formwork to columns
Concrete Column
Strike framework

74. Solution
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Excavate Base
Concrete Blinding
Reinforce to Base
Concrete Base
Reinforce to columns
Formwork to columns
Concrete Column
Strike framework

75. Solution
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Excavate Base
Concrete Blinding
Reinforce to Base
Concrete Base
Reinforce to columns
Formwork to columns
Concrete Column
Strike framework

76. WBS
• Functional decomposition of a system
• Breaks the project into chunks of work at a
level of detail that meets planning and
scheduling needs
• Object oriented WBS
• Task oriented WBS

77. http://www.successfulprojects.com/

79. WBS ≠ Organisational chart
BEST Management
Books
1.
Project Management
- An Introduction
1.1
Writing Editing Publishing
Text Book Text Book Text Book
1.1.1 1.1.2 1.1.3
Chapter 1 Chapter 2 Chapter 3 Editing Editing Editing
1.1.1.1 1.1.1.2 1.1.1.3 Chapter 1 Chapter 2 Chapter 3
1.1.2.1 1.1.2.2 1.1.2.3
Project Project Project Budget & Scheduling Project Auditing Administrative
Selection Organization Planning Cost 1.1.1.2.2 Controls 1.1.1.3.1 Closeout
1.1.1.1.1 1.1.1.1.2 1.1.1.1.3 1.1.1.2.1 1.1.1.2.3 1.1.1.3.2

80. Preparing a WBS
• Iterative consideration of the project’s
purpose
• Functional/performance design criteria
• Project scope, technical performance
requirements
• Conceptual stage: A high-level WBS
• Specifications at lower levels
• Think deliverables
• Clear vision of the end product

81. Assumptions
 Aggregation of all subordinate works
 Decomposition to the level of production
 Each element => a single tangible deliverable
 Avoid duplication of efforts
 Each subordinate element => Only one single parent
 Logical partitioning of deliverables
 Deliverables unique and distinct from their peers
 Deliverables: optimised in size, controllable
 Costs, resources and manpower
 Consolidation of the whole project cost

84. Level of details
• Improving the accuracy of the estimation
• Defining a responsibility for each deliverable
• Number of deliverables for each WBS elements
• Accuracy of the work processes timing
• Cost definition
• Time gaps in the execution of the work processes
• Resource requirements changes over time within a WBS element?
• Prerequisites among internal deliverables
• Objective criteria for measuring progress
• Risks
• Dependencies between deliverables
• Aggregation of a portion of the work as a unit

85. Exercise 3
1. Build a WBS for the construction of a single family home.
1b. Assign WBS codes to the element
1c. Use the codes to estimate the overall project cost
(use rough cost assumptions for each sub projects)

86. Solution
Total cost: Add up the cost of sub-elements

87. 1 ACME Housing Corporation
1.1 New Home Construction
1.1.1 Concrete
1.1.1.1 Pour Foundation
1.1.1.2 Install Patio
1.1.1.3 Pour Stairway
1.1.2 Framing
1.1.2.1 Frame Exterior Walls
1.1.2.2 Frame Interior Walls
1.1.2.3 Install Roofing Trusses
1.1.3 Plumbing
1.1.3.1 Install Water Lines
1.1.3.2 Install Gas Lines
1.1.3.3 Install B/K Fixtures
1.1.4 Electrical
1.1.4.1 Install Wiring
1.1.4.2 Install Outlets/Switches
1.1.4.3 Install Fixtures
1.1.5 Interior
1.1.5.1 Install Drywall
1.1.5.2 Install Carpets
1.1.5.3 Install Painting
1.1.6 Roofing
1.1.6.1 Install Felt
1.1.6.2 Install Shingles
1.1.6.3 Install Vents

88. Organization Breakdown
Structure (OBS)
PROJECT OFFICE
RESP DEPT
B. Smithers
CIVIL STRUCTURAL ELECTICAL PLUMBING
RESP DEPT RESP DEPT RESP DEPT RESP DEPT
R. Kelly P. Tate J. Sims R. Lee
CONCRETE CARPENTRY WIRING WATER/SEWER
PERF DEPT 6010 PERF DEPT 5010 PERF DEPT 4010 PERF DEPT 3010
M. Manning R. Sites S. Johnson K. Wells
MASONRY ROOFING HOOKUP/TIE-IN GAS
PERF DEPT 6020 PERF DEPT 5020 PERF DEPT 4020 PERF DEPT 3020
T. Greams Y. Taylor P. Ottis R. Oriely
TEST DRYWALL
PERF DEPT 6030 PERF DEPT 5030
K. Neumann D. Smith

89. Responsibility Assignment Matrix
CONCRETE FRAMING PLUMBING
1.1.1 1.1.2 1.1.3
Frame Frame Install Install
Pour Pour Exterior Interior Roofing Water Install Gas Install B/K
Foundation Install Patio Stairway Walls Walls Trusse Lines Lines Fixtures
Performing Dept. Manager 1.1.1.1 1.1.1.2 1.1.1.3 1.1.2.1 1.1.2.2 1.1.2.3 1.1.3.1 1.1.3.2 1.1.3.3
CONCRETE
DEPT 6010 Manning 200 125 85
MASONRY
DEPT 6020 Greams 50
TEST
DEPT 6030 Neumann 20 10 5
CARPENTRY
DEPT 5010 Sites 300 250 175
ROOFING
DEPT 5020 Taylor 100
DRYWALL
DEPT 5030 Smith 275
WIRING
DEPT 4010 Johnson
HOOKUP/TIE-IN
DEPT 4020 Ottis
WATER/SEWER
DEPT 3010 Wells 100 15
GAS
DEPT 3020 Oriely 125 25

90. Duration - Estimation
• Similarity to other activities
• Historical data
• Expert advice
• Mathematical models

91. Duration is a Cause of Variation
• Sources of variation:
– Varying skill levels
– Unexpected events
– Efficiency of work time
– Mistakes and misunderstandings

95. Relationships
• Network diagram
• Finish to start
• Predecessor Task: A A B
• Successor Task: B
• Activity A Must Be Finished Before B Can Start
• Arrow head indicates dependency relationship:
Task B cannot begin until Task A is complete

96. Consider lag and lead time

97. Sheet
Rock
H
E
Frame D
HVAC
F
Rough G
Electric

98. Exercise 3: Dependencies
1. Activity C and D both follow A
Activity E follows C
Activity F follows D
Activity E and F precede B
2. Activity G and F precede H
Activity G and D precede J
Activity M and H precede L
Activity F follows A
Activity A and D start at the same time
Activity J and L finish at the same time
Activity K and A precede L

100. construction of a
single family home.

101. Building a house
Time Immediate
Required Predecessor
Activity Description (in days) Activities
A Excavate --
B Lay foundation A
C Rough plumbing B
D Frame/walls B
E Finish exterior D
F Install HVAC D
G Rough electric D
H Sheet rock C, E, F, G
I Install cabinets H
J Paint H
K Final plumbing I
L Final electric J
M Install flooring K, L

102. NWD
Rough Install Final
Plumbing Cabinets Plumbing
C I K
Sheet
Excavate Rock
Lay M
A B Foundation Finish H
Exterior
E Install
Flooring
J L
Frame D
HVAC
Paint Final
Electric
F
Rough
Electric G

104. Time Immediate
Required Predecessor
Activity Description (in days) Activities
A Excavate 3 --
B Lay foundation 4 A
C Rough plumbing 3 B
D Frame 10 B
E Finish exterior 8 D
F Install HVAC 4 D
G Rough electric 6 D
H Sheet rock 8 C, E, F, G
I Install cabinets 5 H
J Paint 5 H
K Final plumbing 4 I
L Final electric 2 J
M Install flooring 4 K, L

105. CPM
• Most important chain of tasks in a project
• The start of each task depends on the
completion of the previous task.
• The tasks are carried out by a person or a
group.
• If CPM is completed later as it was scheduled
the entire project completion will be
delayed.

106. CPM in construction
• Sequence of construction operation
• Predict construction completion time
• Identification of critical activities
• Project time reduction measures
• Balanced scheduling of manpower
• Progress report
• Project evaluation

107. Milestones
• Milestones are significant events on a project that normally have zero
duration
• You can follow the SMART criteria in developing milestones that are:
– Specific
– Measurable
– Assignable
– Realistic
– Time-framed

108. CPM: Definition
• CPM is a project network analysis technique used to predict total project
duration
• A critical path for a project is the series of activities that determines the
earliest time by which the project can be completed
• The critical path is the longest path through the network diagram and has
the least amount of slack or float

109. Finding CPM
• First develop a good project network diagram
• Add the durations for all activities on each
path through the project network diagram
• The longest path is the critical path

110. CPM
• EST, LST, EET, LET
• Critical path
• Buffer time=LST-EST or LET-EET

112. PERT
• Programme
• Establishing project baseline
• Bottlenecks
• Evaluating progress
• Resource levelling

113. Project duration

116. Shortening project time
• Shorten durations of critical tasks by adding
more resources or changing their scope
• Crashing tasks by obtaining the greatest
amount of schedule compression for the least
incremental cost
• Fast tracking tasks by doing them in parallel
or overlapping them

117. Activity Pred. Duration Cost Trade/Plant
N. Cr. N. Cr.
1 A Start 4 3 4 7 Excavator
2 B Start 5 3 7 10 Concrete Gang
3 C Start 6 4 3 6 Excavator
4 D Start 3 2 8 12
5 E A 4 3 5 8 Concrete Gang
6 F B, D 2 1 6 10
7 G C 4 3 9 14 Concrete Gang
8 H D 5 3 5 8
9 I E 6 4 4 7 Excavator
10 J E 6 4 8 11
11 K A, F 2 1 4 6 Concrete Gang
12 L J, K, G 4 3 6 9 Concrete Gang
13 M G, H 3 2 3 5 Excavator
Total 72 ?

118. 4 8 8 14
E.4.CG I.6.EX
0 4 8 14
4 8 12 18
A.4.EX J.6
0 4 8 14
0 5 5 7 7 9 14 18 18
B.5.CG F.2 K.2.CG L.4.CG END
5 10 10 12 12 14 14 18
START
0 3 3 8 10 13
D.3 H.5 M.3.EX
7 10 10 15
15 18
0 6 6 10
C.6.EX G.4.CG
4 10 10 14

119. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
A.EX A.EX A.EX A.EX E.CG E.CG E.CG E.CG J J J J J J L.CG L.CG L.CG L.CG
B.CG CG CG CG
C.EX EX EX EX EX EX EX
D
F
G.CG CG CG CG CG
H
I.EX EX EX EX EX EX EX
K.CG CG CG
M.EX EX EX
Conf. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

120. Cost
• Overall cost: £72k
• Task B and M crashed: £5K
• Overall cost: £77k

121. Original
schedule
Shortened
duration thru
crashing
Overlapped
Tasks or fast
tracking

122. Activity Preceding Duration Resources
1 A Start 2 4
2 B A 1 2 2
3 C A 1 3 2
4 D A 1 5 3
5 E B 2 2 2
6 F B,C, D 2, 3, 4 4 3
7 G D 4 6 4
8 H E 5 4 2
9 I E, F 5,6 2 2
10 J F, G 6, 7 4 3
11 K H, I , J 8, 9, 10 2 2

123. 2 4 4 6 6 10
B.2.2 E.2.2 H.4.2
7 9 11 13 13 17
0 2 2 5 7 11 11 13 17 19
START A.2.4 C.3.2 F.4.3 I.2.2 K.2.2 END
0 2 6 9 9 13 15 17 17 19
2 7 7 13 13 17
D.5.3 G.6.4 J.4.3
2 7 7 13 13 17

124. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
A4 A4 D3 D3 D3 D3 D3 G4 G4 G4 G4 G4 G4 J3 J3 J3 J3 K2 K2
B.2.2 B2 B2
C.3.2 C2 C2 C2
E.2.2 E2 E2
F.4.3 F3 F3 F3 F3
H.4.2 H2 H2 H2 H2
I.2.2 I2 I2
4 4 7 7 7 5 3 9 9 9 9 6 6 3 3 3 3 2 2

125. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
A4 A4 D3 D3 D3 D3 D3 G4 G4 G4 G4 G4 G4 J3 J3 J3 J3 K2 K2
B.2.2 B2 B2
C.3.2 C2 C2 C2
E.2.2 E2 E2
F.4.3 F3 F3 F3 F3
H.4.2 H2 H2 H2 H2
I.2.2 I2 I2
4 4 7 7 5 5 5 7 7 7 7 6 6 5 5 5 5 2 2

126. 1 excavator, 1 concrete gang, 1 joiner
team and 4 workers
Duration Cost in k£
Predecess
Task No. Task or Resources Normal Crash Normal Crash
1 Start None None 0 days 0 day 0 0
2 A Start 4 workers 2 days 1 day 8 12
3 B Start 1 Excavator 5 days 3 days 25 30
4 C A 1 Concrete Gang 4 days 3 days 24 36
5 D A, B 1 Concrete Gang 3 days 2 days 20 26
6 E C, D 1 worker 3 days 2 days 3 4
7 F D 3 workers 6 days 4 days 18 25
8 G E 1 Joiner team 4 days 3 days 16 20
9 H F 4 worker 2 days 1 day 8 11
10 I F 1 Joiner team 3 days 2 days 4 6
11 End G, H, I Milestone 0 days 0 day 0 0

127. £142K

128. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
B D F I
1EX 1CG 3L 1J
A2.4L 4L 4L
C.4.1.CG CG CG CG CG
E.3.1L L L L
G.4.1J J J J J
H2.4L 4L 4L

129. Gantt Chart
• Visual scheduling tool
• Graphical representation of information in WBS
• Show dependencies between tasks, personnel,
and other resources allocations
• Track progress towards completion

130. • Dependencies: Show dependencies between activities with arrows
– E.g., activity 2 cannot start until activity 1 is complete
Activity 1
Activity 2
Milestone
Time Frame: day 1 day 2 day3… day 23
Building a Gantt Chart

134. 9 ideas of project excellence pex
• Project Management: What is the project like? How is it managed?
• Project Results: What does the project achieve? What comes out of it?
• Customer Satisfaction:
– customer = king, customer decides on quality perception
– understand customer needs and wishes.
• Employees’ development and participation
– The complete potential of employees can only be released in an
atmosphere of confidence and openness.
• Partnership with suppliers: Confidence and cooperation
• Leadership
• Ethics and social responsibility
• Processes and facts: Activities are conducted systematically as processes
• Results: To obtain lasting outstanding results, the expectations and
demands of all parties involved have to be well-balanced.

136. Economic viability of energy projects

137. Cost estimation
1. Exergy cost Analysis
 Evaluation of the cost for each stream
 Internal cost/ not market cost
2. Parametric estimation
 Based on historical data
 Mathematical modelling of available key features
3. Factored Cost estimate/Bottom-up approach
 Work breakdown structure
 Allocation of costs to individual elements
4. Analogous system estimate/Top-down approach
 Case based approach/inferential cost estimation of the entire system
 Comparison and extrapolation
 Cost adaptation and optimisation
 Cost breakdown
5. Vendor quotes
 Costs are obtained from vendors.
6. Cost scaling
 Factors used to scale up/down costs

138. Factored cost estimation
n m k n m
c b i ri j pj l ql hij (ri , p j )
i 1 j 1 l 1 i 1j 1
Investment costs + fixed engineering costs + Soft costs + variable engineering costs
• Costly: significant effort (time/money) required
• Insight into major cost contributors.
• Relationships among cost elements
• Not responsive to "what if"
requirements
• Possibility to forget important elements

139. Analogous System Estimate
• Based on actual historical data
• Relies on extrapolation and expert judgement
• Relies on single data point
• Difficult to identify appropriate analogues
• Quick way of estimation
• Readily understood
• Select adaptation method
• Combined with Parametric and scaling methods
• Complexity factors (CF)
• Assess the complexity of the new subsystem compared to that of the selected
analogues
• Make a quantitative judgment for a value of the complexity factor

140. Cost scaling
(CS)
•CYA = Cost in year A
•CYB = Cost in year B
•IYA = Cost index for year A
I YA •IYB = Cost index for year B
CYA CYB
I YB
S •C = Cost at capacity A
A
A •C = Cost at capacity B
C A C B • A
B
= Equipment or plant capacity A
B • B = Equipment or plant capacity B
•S= Scaling factor
(Values can be found: Haselbarth, Galagher)

141. Building cost index
• Steel frame construction cost index
• Concrete frame construction CI
• Brick construction CI
• Labour cost index
• ENR (Engineering News Records)

143. Estimating Building costs: Calin M Popescu et al.

144. The time value of Money
• Devaluation impacts 1
– Time changes the value P F n
of money 1 i
• Inflation rate (external
growth)
– Cost of good increases
• Net present value 1
P F n
– Discounted cash flow 1 i

146. Economic feasibility of an energy
project