Construction Management Theories

Authors: Li Baiyi and Simon Austin
Affiliation:

Doctoral Graduate, Loughborough University, Loughborough, UK
Professor of Structural Engineering, School of Civil and Building Engineering, Loughborough University, Loughborough, UK

This chapter presents an introduction to six construction management schools of thought:

The Project Management Book of Knowledge (PMBOK)
Simultaneous Management
Lean Construction
A Theory of Construction as Production by Projects
Collaborative Working
The Perspective of Peter Morris, one of the leading researchers and practitioners of Project Management.

Each school provides a unique perspective on planning in construction management.
All schools emphasize the significance of planning for the successful execution of projects.

Definition: The PMBOK is a guide aiming to document and standardize generally accepted project management information and practices.
Publication History:
- First published in 1983 by the Project Management Institute (PMI).
- Full edition published in 1996.
- Latest fifth edition released in February 2012.
Evolution:
- Relationship to:
1. Development of systems engineering in the US defense and aerospace industry.
2. Modern management theory including organizational design and team building.
3. Computer-based planning techniques such as Critical Path Method (CPM) and Program Evaluation Review Technique (PERT).
Traditional Project Management Approach:
- Some researchers refer to this style as the traditional project management approach.
- Also known as the PM theory/approach.
Key Characteristics:
- Based on Theories: Planning, execution, and control.
- Views management as planning, necessitating detailed task planning before structured execution.
- Monitoring and controlling production involve tracking deviation from the original plan.

Theory of Planning:
- Conceptualization: The management level outlines what happens and when.
- Principle: Planning directs production initiation based on a predetermined schedule.
Theory of Execution:
- Conceptualization: Execution is viewed through a dispatch model where tasks are executed upon notification to the executor.
- Principle: Inputs and resources must be ready at task authorization.
Theory of Control:
- Conceptualization: Involves a controlled process with performance standards.
- Principle: Variances between standards and actual performance guide process correction.

Project Conceptualization:
- Transformation from inputs to outputs.
Principles:
- Tasks can be decomposed into manageable components to improve project performance.
- Tasks are assumed to be independent except for sequential relationships.

Categories include assumptions about uncertainty, relationships between activities, activity boundaries, performance criteria, and production management:
- Projects classify uncertainty as low to high, simple to complex relationships, and rigid to loose activity boundaries.
- Traditional management often overlooks production flow and value generation considerations.

Key Processes:
- Initiating, planning, executing, monitoring and controlling, and closing.
Plan-Do-Check-Act Cycle:
- A structured approach to management actions for project effectiveness.

Introduced by Laufer et al. (1996):
- Observations indicate capable managers complete uncertain projects efficiently.
Principles of Simultaneous Management:
- Early and adequate decisions, constant orchestration of contending demands, enhanced teamwork.
- Addressing Uncertainty: Defined as end (what needs to be done) and means (how it should be accomplished).
- Recommendations to manage uncertainty include decoupling tasks or managing their interfaces proactively.

Concept:
- Emerged from the manufacturing philosophy of lean production as proposed by Womack in the 1990s.
- Emphasizes efficiency, waste reduction, and a combination of craft and mass production techniques.
Application in Construction:
- Adjusting lean principles to enhance design and construction processes (Koskela et al.).

Three views:
- Transformation, flow, and value generation within the construction process.

Proposed by Winch: Management viewed holistically rather than fragmented.
Key Definitions:
- Management as organizational innovation aimed at effective project mission delivery.
Emphasizes uncertainty management in planning and execution phases, including interdependencies in project tasks.

Emerged to address integration challenges across disciplines in complex projects (Laufer et al.).
Highlights the need for effective communication and teamwork among project participants.

Links logistics with strategic management to enhance competitiveness (Oliver and Webber).
Focus on inter-organizational relationships as key to managing supply chain processes effectively.

Advocates for project management as a holistic discipline, emphasizing the integrated nature of project efforts.
Suggests planning should be treated as an operational (middle-management) discipline, with practical guides rather than overarching theories.

Key Insights:
- PMBOK as the traditional paradigm emphasizes planning.
- Lean construction integrates planning with a focus on waste reduction and value maximization.
- Collaborative working enhances team integration.
- Morris emphasizes holistic views over fragmented management.

Management encompasses planning, organizing, control, and leadership.
All schools regard planning as core competence in construction management, differing in how they approach uncertainty and execution.
Advocacy for adapting methods to suit the complexities of modern construction projects, with acceptance that static theories may not accommodate dynamic environments.