SAP培训：http://www.51sap.cn supporting disciplines. For example, computer-based information systems and decision support systems are now common-place tools for general
management. Similarly, many operations research techniques such as linear programming and network analysis are now widely used in many knowledge or application domains. Hence, the representation in Figure 2-1 reflects only the sources from which the project management framework evolves.
Figure 2-1: Basic Ingredients in Project Management
Specifically, project management in construction encompasses a set of objectives which may be accomplished by implementing a series of operations subject to resource constraints. There are potential conflicts between the stated objectives with regard to scope, cost, time and quality, and the constraints imposed on human material and financial resources. These conflicts should be resolved at the onset of a project by making the necessary tradeoffs or creating new alternatives. Subsequently, the functions of project management for construction generally include the following: 1. Specification of project objectives and plans including delineation of scope, budgeting, scheduling, setting performance requirements, and selecting project participants.
2. Maximization of efficient resource utilization through procurement of labor, materials and equipment according to the prescribed schedule and plan.
3. Implementation of various operations through proper coordination and control of planning, design, estimating, contracting and construction in the entire process.
4. Development of effective communications and mechanisms for resolving conflicts among the various participants. Back to top
2.2 Trends in Modern Management
In recent years, major developments in management reflect the acceptance to various degrees of the following elements: (1) the management process approach, (2) the management science and decision support approach, and
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SAP培训：http://www.51sap.cn (3) the behavioral science approach for human resource development. These three approaches complement each other in current practice, and provide a useful groundwork for project management.
The management process approach emphasizes the systematic study of management by identifying management functions in an organization and then examining each in detail. There is general agreement regarding the functions of planning, organizing and controlling. A major tenet is that by analyzing management along functional lines, a framework can be constructed into which all new management activities can be placed. Thus, the manager's job is regarded as coordinating a process of interrelated functions, which are neither totally random nor rigidly predetermined, but are dynamic as the process evolves. Another tenet is that management principles can be derived from an intellectual analysis of management functions. By dividing the manager's job into functional components, principles based upon each function can be extracted. Hence, management functions can be organized into a hierarchical structure designed to improve operational efficiency, such as the example of the organization for a manufacturing company shown in Figure 2-2. The basic management functions are performed by all managers, regardless of enterprise, activity or hierarchical levels. Finally, the development of a management philosophy results in helping the manager to establish relationships between human and material resources. The outcome of following an established philosophy of operation helps the manager win the support of the subordinates in achieving organizational objectives.
Figure 2-2: Illustrative Hierarchical Structure of Management Functions The management science and decision support approach contributes to the development of a body of quantitative methods designed to aid managers in making complex decisions related to operations and production. In decision
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SAP培训：http://www.51sap.cn support systems, emphasis is placed on providing managers with relevant information. In management science, a great deal of attention is given to defining objectives and constraints, and to constructing mathematical analysis models in solving complex problems of inventory, materials and production control, among others. A topic of major interest in management science is the maximization of profit, or in the absence of a workable model for the operation of the entire system, the suboptimization of the operations of its components. The optimization or suboptimization is often achieved by the use of operations research techniques, such as linear programming, quadratic programming, graph theory, queuing theory and Monte Carlo simulation. In addition to the increasing use of computers accompanied by the development of
sophisticated mathematical models and information systems, management science and decision support systems have played an important role by looking more carefully at problem inputs and relationships and by promoting goal formulation and measurement of performance. Artificial intelligence has also begun to be applied to provide decision support systems for solving ill-structured problems in management.
The behavioral science approach for human resource development is important because management entails getting things done through the actions of people. An effective manager must understand the importance of human factors such as needs, drives, motivation, leadership, personality, behavior, and work groups. Within this context, some place more emphasis on interpersonal behavior which focuses on the individual and his/her motivations as a socio-psychological being; others emphasize more group behavior in recognition of the organized enterprise as a social organism, subject to all the attitudes, habits, pressures and conflicts of the cultural environment of people. The major contributions made by the behavioral scientists to the field of management include: (1) the formulation of concepts and explanations about individual and group behavior in the organization, (2) the empirical testing of these concepts methodically in many different experimental and field settings, and (3) the establishment of actual
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SAP培训：http://www.51sap.cn managerial policies and decisions for operation based on the conceptual and methodical frameworks. Back to top
2.3 Strategic Planning and Project Programming
The programming of capital projects is shaped by the strategic plan of an organization, which is influenced by market demands and resources
constraints. The programming process associated with planning and feasibility studies sets the priorities and timing for initiating various projects to meet the overall objectives of the organizations. However, once this decision is made to initiate a project, market pressure may dictate early and timely completion of the facility.
Among various types of construction, the influence of market pressure on the timing of initiating a facility is most obvious in industrial construction. [3] Demand for an industrial product may be short-lived, and if a company does not hit the market first, there may not be demand for its product later. With intensive competition for national and international markets, the trend of industrial construction moves toward shorter project life cycles, particularly in technology intensive industries.
In order to gain time, some owners are willing to forego thorough planning and feasibility study so as to proceed on a project with inadequate definition of the project scope. Invariably, subsequent changes in project scope will increase construction costs; however, profits derived from earlier facility operation often justify the increase in construction costs. Generally, if the owner can derive reasonable profits from the operation of a completed facility, the project is considered a success even if construction costs far exceed the estimate based on an inadequate scope definition. This attitude may be attributed in large part to the uncertainties inherent in construction projects. It is difficult to argue that profits might be even higher if construction costs could be reduced without increasing the project duration. However, some projects, notably
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SAP培训：http://www.51sap.cn some nuclear power plants, are clearly unsuccessful and abandoned before completion, and their demise must be attributed at least in part to inadequate planning and poor feasibility studies.
The owner or facility sponsor holds the key to influence the construction costs of a project because any decision made at the beginning stage of a project life cycle has far greater influence than those made at later stages, as shown schematically in Figure 2-3. Therefore, an owner should obtain the expertise of professionals to provide adequate planning and feasibility studies. Many owners do not maintain an in-house engineering and construction management capability, and they should consider the establishment of an ongoing relationship with outside consultants in order to respond quickly to requests. Even among those owners who maintain engineering and construction divisions, many treat these divisions as reimbursable,
independent organizations. Such an arrangement should not discourage their legitimate use as false economies in reimbursable costs from such divisions can indeed be very costly to the overall organization.
Figure 2-3: Ability to Influence Construction Cost Over Time
Finally, the initiation and execution of capital projects places demands on the resources of the owner and the professionals and contractors to be engaged by the owner. For very large projects, it may bid up the price of engineering services as well as the costs of materials and equipment and the contract prices of all types. Consequently, such factors should be taken into consideration in determining the timing of a project. Example 2-1: Setting priorities for projects
A department store planned to expand its operation by acquiring 20 acres of land in the southeast of a metropolitan area which consists of well established suburbs for middle income families.
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