ESD.018
Project Management
Spring 2009
1.040 Project Management focuses on the management and implementation of construction projects, primarily infrastructure projects. A project refers to a temporary piece of work undertaken to create a unique product or service. Whereas operations are continuous and repeating, projects are finite and have an end date. Projects bring form or function to ideas or need. Some notable projects include the Manhattan Project (developing the first nuclear weapon); the Human Genome Project (mapping the human genome); and the Central Artery Project (Boston's "Big Dig"). The field of project management deals with the planning, execution, and controlling of projects. The course is divided into three parts: Part 1: project finance Part 2: project evaluation Part 3: project organization This course will cover the basic tools, skills, and knowledge necessary to successfully manage a project through its inception, design, planning, construction, and transition phases. There will be several guest lectures discussing current projects, and a construction site visit to MIT's Media Lab extension.
Readings
- Hendrickson, Chris, and Tung Au. Project Management for Construction . Upper Saddle River, NJ: Prentice Hall, 1989. ISBN: 9780137312665.
- Yescombe, E. R. Principles of Project Finance . New York, NY: Academic Press, 2002. ISBN: 9780127708515.
- Grimsey, Darrin, and Mervyn K. Lewis. Public Private Partnerships: The World Revolution in Infrastructure Provision and Project Finance . London, UK: Edward Elgar Publishing, 2007. ISBN: 9781847202260.
- Esty, Benjamin C. Modern Project Finance: A Casebook . New York, NY: Wiley, 2008. ISBN: 9780471434252.
- Newnan, Donald G., Jerome P. Lavelle, and Ted G. Eschenbach. Engineering Economic Analysis . 8th ed. New York, NY: Oxford University Press, 2000. ISBN: 9780195151527.
- Park, Chan S. Contemporary Engineering Economics . 3rd ed. Upper Saddle River, NJ: Prentice Hall, 2002. ISBN: 9788120321434.
- Mishan, E. J. Cost-Benefit Analysis . New York, NY: Praeger Publishers, 1976. ISBN: 9780275565305.
- Ray, Anandarup. Cost-Benefit Analysis: Issues and Methodologies . Baltimore, MD: Johns Hopkins University Press, 1984. ISBN: 9780801830693.
- Ward, William A., Barry J. Deren, and Emmanuel H. D’Silva. The Economics of Project Analysis: A Practitioner’s Guide (EDI Technical Materials) . Washington, DC: The World Bank, 1991. ISBN: 9780821317518.
- Morris, Peter W. G. The Management of Projects . London, UK: Thomas Telford Books, 1994. ISBN: 9780727716934.
- Meredith, Jack R., and Samuel J. Mantel, Jr. Project Management: A Managerial Approach . 6th ed. New York, NY: John Wiley, 2005. ISBN: 9780471715375.
- Levy, Sidney. Project Management in Construction . 5th ed. New York, NY: McGraw-Hill Professional, 2006. ISBN: 9780071464178.
- Oberlender, Garold. Project Management for Engineering and Construction . New York, NY: McGraw-Hill Publishing, 1993. ISBN: 9780070481503.
Spring 2004
Topics
- Introduction
- Project Financing and Evaluation
- Tools for Project Evaluation
- Dealing with Uncertainty: Concepts and Tools
- Project Organization
- Delivery Methods (cont.), Payment and Award Techniques
- Award Methods and Project Estimation I
- Detailed Estimation and Pumpstation Overview
- Planning and Deterministic Scheduling
- Deterministic Planning II and Probabilistic Planning I
- Probabilistic Planning II
- Simulation and Resource-Based Scheduling
- Basics of Cost and Schedule Monitoring
- EVA (C/SCSC) and Basics of Project Control
- Problem Diagnosis and Introduction to Project Dynamics
- System and Change Dynamics
- Risk Management II, Quality Monitoring and Control, and Project Learning
- Reviews (cont.), Audits, Changes and Disputes
Readings
- The (unfinished) draft of the book: Peña-Mora, F., C. Anumba, J. Lyneis, L. Soibelman, M. Park, M. Samii, and K. Kalligeros. System and Project Management. MIT/Prentice Hall Textbook Series on Civil, Environmental and Systems Engineering. Prior to each lecture, the corresponding chapter of the book will be provided to students. Please do the required reading before each lecture.
- The book: O’Leary, and Acret. Construction Nightmares. BNI Publications Inc, 2001. ISBN: 1-55701-298-9. This book contains a series of stories (based on real-life incidents). The stories can be discussed in recitation, office hours or (by request) at designated periods in lecture.
- O’Leary, A., and J. Acret. Chapters 12 and 27 in Construction Nightmares. BNI Publications Inc, 2001. ISBN: 1-55701-298-9.
- Peña-Mora, F., C. Anumba, J. Lyneis, L. Soibelman, M. Park, M. Samii, and K. Kalligeros. “Engineering Economy with Uncertainity.” In System and Project Management. MIT/Prentice Hall Textbook Series on Civil, Environmental and Systems Engineering. (Forthcoming.)
- O’Leary, A., and J. Acret. Chapters 1 and 10 in Construction Nightmares. BNI Publications Inc, 2001. ISBN: 1-55701-298-9.
- Peña-Mora, F., C. Anumba, J. Lyneis, L. Soibelman, M. Park, M. Samii, and K. Kalligeros. “Project Participants.” In System and Project Management. MIT/Prentice Hall Textbook Series on Civil, Environmental and Systems Engineering. (Forthcoming.)
- O’Leary, A., and J. Acret. Chapters 8, 20 and 22 in Construction Nightmares. BNI Publications Inc, 2001. ISBN: 1-55701-298-9.
- O’Leary, A., and J. Acret. Chapters 16 and 17 in Construction Nightmares. BNI Publications Inc, 2001. ISBN: 1-55701-298-9.
- Peña-Mora, F., C. Anumba, J. Lyneis, L. Soibelman, M. Park, M. Samii, and K. Kalligeros. “Estimating.” In System and Project Management. MIT/Prentice Hall Textbook Series on Civil, Environmental and Systems Engineering. (Forthcoming.)
- O’Leary, A., and J. Acret. Chapter 28 in Construction Nightmares. BNI Publications Inc, 2001. ISBN: 1-55701-298-9.
- O’Leary, A., and J. Acret. Chapter 20 in Construction Nightmares. BNI Publications Inc, 2001. ISBN: 1-55701-298-9.
- Peña-Mora, F., C. Anumba, J. Lyneis, L. Soibelman, M. Park, M. Samii, and K. Kalligeros. “Project Planning (through 1.2.3).” In System and Project Management. MIT/Prentice Hall Textbook Series on Civil, Environmental and Systems Engineering. (Forthcoming.)
- O’Leary, A., and J. Acret. Chapter 5 in Construction Nightmares. BNI Publications Inc, 2001. ISBN: 1-55701-298-9.
- O’Leary, A., and J. Acret. Chapter 19 in Construction Nightmares. BNI Publications Inc, 2001. ISBN: 1-55701-298-9.
- Peña-Mora, F., C. Anumba, J. Lyneis, L. Soibelman, M. Park, M. Samii, and K. Kalligeros. “Project Planning (1.2.3-1.2.5).” In System and Project Management. MIT/Prentice Hall Textbook Series on Civil, Environmental and Systems Engineering. (Forthcoming.)
- Peña-Mora, F., C. Anumba, J. Lyneis, L. Soibelman, M. Park, M. Samii, and K. Kalligeros. “Project Planning (1.2.5 and on).” In System and Project Management . MIT/Prentice Hall Textbook Series on Civil, Environmental and Systems Engineering. (Forthcoming.)
- Peña-Mora, F., C. Anumba, J. Lyneis, L. Soibelman, M. Park, M. Samii, and K. Kalligeros. “Performance Analysis.” In System and Project Management. MIT/Prentice Hall Textbook Series on Civil, Environmental and Systems Engineering. (Forthcoming.)
- O’Leary, A., and J. Acret. Chapter 27 in Construction Nightmares. BNI Publications Inc, 2001. ISBN: 1-55701-298-9.
- Peña-Mora, F., C. Anumba, J. Lyneis, L. Soibelman, M. Park, M. Samii, and K. Kalligeros. “Control Actions.” In System and Project Management. MIT/Prentice Hall Textbook Series on Civil, Environmental and Systems Engineering. (Forthcoming.)
- Peña-Mora, F., C. Anumba, J. Lyneis, L. Soibelman, M. Park, M. Samii, and K. Kalligeros. “Project Dynamics.” In System and Project Management. MIT/Prentice Hall Textbook Series on Civil, Environmental and Systems Engineering. (Forthcoming.)
- Peña-Mora, F., C. Anumba, J. Lyneis, L. Soibelman, M. Park, M. Samii, and K. Kalligeros. “Project Reviews.” In System and Project Management. MIT/Prentice Hall Textbook Series on Civil, Environmental and Systems Engineering. (Forthcoming.)
- O’Leary, A., and J. Acret. Chapter 14 in Construction Nightmares. BNI Publications Inc, 2001. ISBN: 1-55701-298-9.
- Peña-Mora, F., C. Anumba, J. Lyneis, L. Soibelman, M. Park, M. Samii, and K. Kalligeros. “Project Closeout.” In System and Project Management. MIT/Prentice Hall Textbook Series on Civil, Environmental and Systems Engineering. (Forthcoming.)
- O’Leary, A., and J. Acret. Chapter 3 in Construction Nightmares. BNI Publications Inc, 2001. ISBN: 1-55701-298-9.
- Schtub, A., J. Bard, and S. Globerson. Project Management: Engineering Technology, and Implementation. New York, NY: Prentice Hall, 1994. Sections 5.1 through 5.3.
- Ward et. al. “The Second Toyota Paradox: How Delaying Decisions Can Make Better Cars Faster.” Sloan Management Review 36, no. 3 (1995): 43-61.
- Henderson, R. “Managing Innovation in the Information Age.” Harvard Business Review 72, no. 1 (1994): 100-105.
- Hameri, A. P., J. Nihtila. “Distributed New Product Development Project Based on Internet and World-Wide Web.” Journal of Production Innovation & Management 14, no. 2 (1997): 77-87. A Case Study Hameri and Nihtila study the use of the World Wide Web to assist a large, geographically distributed team in the development of a new, technologically complex product.
- Chambers, C. A. “Transforming New Product Development.” Research-Technology Management 39, no. 6 (November-December 1996): 32-38. Chambers identifies nine “best-practices” used in product development efforts.
- McCord, K. R., and S. D. Eppinger. “Managing the Integration Problem in Engineering.” MIT Sloan School of Management Working Paper, no. 3594, August 1993. This working paper describes a case study where the Design Structure Matrix (DSM) was used to identify complex technical coupling between subsystems of a large-scale development effort. Knowing the coupling allowed the development sub-team to more effectively communicate relevant information to other sub-teams.
- Thamhain, H. Chapter 11 in Engineering Management. 1st ed. Wiley-Interscience, 1992. ISBN: 0471828017. Identifying organizational needs and planning and executing organizational change initiatives are discussed. The use of TQM to develop “the technology-based organization” is also described.
- ———. Chapter 12 in Engineering Management. 1st ed. Wiley-Interscience, 1992. ISBN: 0471828017. Describes how to design, build, and evaluate effective teams for today’s engineering activities.
- Schtub, A., J. Bard, and S. Globerson. Chapter 10 in Project Management: Engineering Technology, and Implementation. Prentice Hall, 1994. Sections 5.1 through 5.3.
- Suh, N. Chapters 4 and 6 in Principles of Design. Oxford University Press, 1990. ISBN: 0195043456.
- Naylor, H. F. Chapter 2 in Construction Project Management. New York: Delmar Publishers, 1995. ISBN: 0827357338. Describes how to effectively establish a project WBS.
- Schtub, A., J. Bard, and S. Globerson. Chapter 5 in Project Management: Engineering Technology, and Implementation. Prentice Hall, 1994. Sections 5.1 through 5.3. Describes different organizational structures (e.g. functional, product line, matrix, etc.) and how to select an appropriate organizational for a given product/firm combination. Developing the WBS and mapping this to the OBS is also described.
- ———. Chapter 8 in Project Management: Engineering Technology, and Implementation. Prentice Hall, 1994. Sections 5.1 through 5.3. Establishing a project budget using several techniques is described. Furthermore, developing and using an effective project reporting structure are discussed.
- ———. Project Management: Engineering Technology, and Implementation. Prentice Hall, 1994. Sections 5.1 through 5.3, Appendix 11A. An example of a WBS is presented.
- Callahan, M., D. Quackenbush, and G. Rowings. Chapter 5 in Construction Project Scheduling. New York: McGraw-Hill, 1992. ISBN: 0070097011.
- Meredith, J., and S. Mantel. Chapter 8 in Project Management: A Managerial Approach. 4th ed. New York: J. Wiley & Sons, 2000. ISBN: 0471016268. Project scheduling techniques are presented. Specific tools include CPM, PERT, and Gantt Charts.
- Schtub, A., J. Bard, and S. Globerson. Chapter 7 in Project Management: Engineering Technology, and Implementation. Prentice Hall, 1994. Sections 5.1 through 5.3.
- Taylor, B. W., and L. J. Moore. “R&D Project Planning with Q-GERT Network Modeling and Simulation.” Management Science 26, no. 1 (1980): 44-59.
- Moder, Philips, and Davis. Chapter 9 in Project Management with CPM, PERT, and Precedence Diagramming. New York: Van Nostrand Reinhold, 1983. ISBN: 0442254156.
- ———. Chapter 10 in Project Management with CPM, PERT, and Precedence Diagramming. New York: Van Nostrand Reinhold, 1983. ISBN: 0442254156.
- Pritsker, A., and B. Alan. Chapters 16 through 19 in Management Decision Making. Englewood Cliffs, NJ: Prentice-Hall, 1983. ISBN: 0135481643. Extensive description of the use of Q-GERT for planning projects including scheduling and resource constraints.
- Badiru, A. B. Chapter 4 in Project Management in Manufacturing and High Technology Operations. New York: J. Wiley & Sons, 1996. ISBN: 0471127213.
- Schtub, A., J. Bard, and S. Globerson. Chapter 9 in Project Management: Engineering Technology, and Implementation. Prentice Hall, 1994. Sections 5.1 through 5.3. Describes techniques available to the project manager for establishing a project schedule under resource constraints. Resource leveling and resource allocation subject to availability constraints are described.
- Meredith, J., and S. Mantel. Chapter 9 in Project Management: A Managerial Approach. 4th ed. New York: J. Wiley & Sons, 2000. ISBN: 0471016268. Methods of scheduling resources under different constraints are described. Specifically, resource leveling, time-constrained resources, and maximum availability are considered. Additionally, scheduling resources across multiple projects is discussed.
- Moder, Philips, and Davis. Chapter 7 in Project Management with CPM, PERT, and Precedence Diagramming. New York: Van Nostrand Reinhold, 1983. ISBN: 0442254156.
- Elton and Roe. Bringing Discipline to Project Management.
- Goldratt, E. M. Critical Chain. Great Barrington, MA: North River Press, 1997. ISBN: 0884271536. Please read the whole book before this lecture.
- Stump, E. J., and K. Ferguson. The Value of Integrated Project Risk Management. INCOSE Symposium, 1998.
- Armstrong. Risk in Risk Management.
- Paté-Cornell, M. E., and R. L. Dillon. “Analytical Tools for the Management of Faster-Better-Cheaper Space Missions.” Proceedings of the 1998 IEEE Aerospace Conference. Vail, Colorado, March 1998.
- Kenley, and Creque. Predicting Technology Operational Availability Using Technical Maturity Models. Kenley and Creque present and evaluate the Technical Maturity Assessment methodology for predicting availability of programs with high schedule risk due to technology.
- Hall, E. M. Risks to Riches: Risk Management Return on Investment. INCOSE Symposium, 1998. “This paper presents a standard definition for measuring risk management return on investment (ROI(RM))…. ROI(RM) is defined as the ratio of savings to cost that indicates the value of risk management.” (from abstract)
- Duncan, W. R. Chapter 11 in A Guide to the Project Management Body of Knowledge. Project Management World Today, Project Management Institute, Inc. (USA).
- Callahan, M., D. Quackenbush, and G. Rowings. Chapter 12 in Construction Project Scheduling. New York: McGraw-Hill, 1992. ISBN: 0070097011. Presents a four-stage risk management program: Risk Identification, Risk Quantification, Risk Response Development, and Risk Response control.
- “Application and Management of the Systems Engineering Process.” IEEE 1220, 1998. Section 6.8.2.4. A brief description of a Risk Management process using four steps: Preparation, Assessment, Handling and Control.
- Peña-Mora, F., C. Cosa, and D. S. McCone. Introduction to Construction Dispute Resolution. New Jersey: MIT/Prentice Hall Textbook Series on Civil, Environmental & Systems Engineering, 2002.
- Schtub, A., J. Bard, and S. Globerson. Chapter 11 in Project Management: Engineering Technology, and Implementation. Prentice Hall, 1994. Sections 5.1 through 5.3.
- Schtub, A., J. Bard, and S. Globerson. Chapter 12 in Project Management: Engineering Technology, and Implementation. Prentice Hall, 1994. Sections 5.1 through 5.3. Project management techniques useful for R&D projects are described. Factors considered include risk, technological versus commercial success, changing requirements, and technology leapfrogging are discussed.
- Thamhain, H. Chapter 6 in Engineering Management. 1st ed. Wiley-Interscience, 1992. ISBN: 0471828017. Methods of effectively and controlling engineering work are described.
- Kaplan, and Norton. Systems Engineering Measurement Primer. INCOSE, Sections 1-5. The Balanced Scorecard-Measures that drive performance.
- Application and Management of the Systems Engineering Process. IEEE 1220, Section 6.8.2.5 through 6.8.7. Sub-section titles: Performance-based progress measurement; Systems analysis and test data; Requirement and design changes; Progress against project plans; Progress against technical plans; and Product and process metrics.
- Meredith, J., and S. Mantel. Chapter 12 in Project Management: A Managerial Approach. 4th ed. New York: J. Wiley & Sons, 2000. ISBN: 0471016268.
- Gulliver, F. R. “Post Project Appraisals Pay.” Harvard Business Review 65, no. 2 (March-April 1987): 128.
- Meredith, J., and S. Mantel. Chapter 13 in Project Management: A Managerial Approach. 4th ed. New York: J. Wiley & Sons, 2000. ISBN: 0471016268.
- ———. Business Dynamics. Boston, MA: McGraw-Hill, 2000. ISBN: 007238915X.
Sources
- Course catalogue ↗Historical OpenCourseWare
- MIT OCW readings ↗
- MIT OCW syllabus ↗
- MIT OpenCourseWare ↗Spring 2004
- MIT OCW calendar ↗
- MIT OCW readings ↗
- MIT OCW syllabus ↗
- Historical MIT OpenCourseWare offering. Named reading entries and schedule topics are automatically extracted from the linked source pages.
- Historical MIT OpenCourseWare offering. Named reading entries and schedule topics are automatically extracted from the linked source pages.