Electronic Design Project Project Management Lecture 3

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Electronic Design ProjectProject
ManagementLecture 3
ELE 12EDP
George Alexander G.Alexander_at_latrobe.edu.au www.la
trobe.edu.au/eemanage/
6 September, 2004
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MANAGING BUSINESS AND ENGINEERING
PROJECTSConcepts and Implementationby John M
Nicholas 1990 Prentice Hall
Cass
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Project Parameters
Project Parameters
Quality
Cost
Time
Schedule
Specifications
Budget
Source Haynes, M.E. Project Management from Idea
to Implementation Kogan Page, 1990
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Project Objective and Basic Strategy

• If the project has been well defined then it is
  usually a straightforward process to clarify the
  project objective and the basic strategy for
  achieving the objective, from the information
  provided in the project definition.
• What is the project objective of our fire alarm
  project?
• Suggest some basic strategies for achieving the
  objective.

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Breaking the project into subunits

• To accurately plan the three project parameters
  of quality, cost and time, it is essential that
  the project be divided into easily manageable
  subunits or work packages.
• This process can be achieved by identifying the
  logical subdivisions of the project, then
  breaking down each subdivision, and repeating the
  process until a discrete unit of work is
  identified.
• This is usually expressed diagrammatically as an
  objectives tree or a work breakdown structure.

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Work Breakdown StructureComplete the following
work breakdown structure for the fire alarm
project.
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Performance Specifications

• Performance specifications should be written for
  each subunit identified by the work breakdown
  structure.
• The specifications must include all the relevant
  information necessary to meet the projects
  quality requirements such as,
  components/materials to be used, methods of
  construction, standards to be met, tests to be
  performed.
• Write performance specifications for each of the
  three subunits Control Panel, Latch Detector
  Signals, and Generation of Alarm Signals

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Planning the Time Requirements(1)

• Careful planning and scheduling of the effort is
  essential if costs are to be minimised and the
  project completed in the shortest possible time.
• To plan the project time requirements, look at
  the work breakdown structure and determine
  answers to the following questions -

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Planning the Time Requirements(2)

• What time is required to complete each subunit?
• In what sequence must the units be completed?
• Which subunits can be underway at the same time?
• This analysis determines for each subunit
• The duration of each step
• The earliest time that each step can be started
• The latest time that each step must be started

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Gantt Charts

• Displays the time relationship between the
  project subunits
• Lists steps and and time required
• Parallel lines indicate parallel events.
• Slack time is indicated by a dotted line.

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Example Gantt Chart
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Planning the Project Costs - Budgeting

• Careful planning of the project costs is vital.
• If costs are greatly overestimated, the project
  may be rejected as uncompetitive.
• If costs are greatly underestimated, it is likely
  that the project will lose money.
• The budget provides a basis for monitoring costs
  and taking corrective action where necessary.
• While some inaccuracies are inevitable, these can
  be minimised through careful planning and
  research.

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Typical project costs(1)

• Direct Labour covers the cost of all manhours
  directly expended on the project (usually based
  on an hourly rate which includes the overhead
  costs).
• Overhead includes charges such as payroll tax,
  WorkCover and other labour-related costs.
  Sometimes calculated as a percentage of the
  direct labour cost.
• (Refer Example Manhour rate composition).
• Direct materials required e.g. components, PCBs
• Supplies such as tools and equipment

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Typical project costs(2)

• Equipment rental e.g. special test equipment
• General and administrative management and
  support services e.g. purchasing, engineering,
  IT. Sometimes applied as a percentage of project
  cost. (Refer example Example manhour rate
  composition).
• Profit associated with the project, often
  calculated as a percentage of cost. (It is
  unusual to include profit in the project budget.
  If the project adheres to the quality, time, cost
  parameters - profit will automatically follow).

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Some other costs

• Travel e.g. overseas to test ASICs, or to gain
  access to expertise
• Special software requirements
• Advice from consulting firms
• Hardware for specialised test environment
• Access to simulated test environment
• Project team-building and celebrations

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Example manhour rate composition

• Direct labour related
• Salaries, bonuses
• Payroll tax, WorkCover, superannuation
• Office space
• Computer lease
• Vehicle
• Indirect charges (overheads)
• Management, administration
• Miscellaneous supplies
• Charges from support areas IT, HR, Purchasing,
  Accounts etc.

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Assigning Responsibility/Managing Complexity

• Project complexity means that one person cannot
  be directly responsible for every aspect of the
  project.
• Responsibility for each subunit must be
  delegated.
• Responsibility allocation depends on the scope
  and size of the project.
• Responsibility may be assigned to a subunit or to
  a group of subunits.
• Some parts of the project may be subcontracted
• Consider assigning responsibility to
  subcontractors or service departments.
• Consider responsibility as a means of developing
  project management competence.

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Example of project responsibility structure
(1)Design/commissioning of robot assembly line
Steering Group (P)
Project Manager (F)
Mechanical (F)
Electrical (F)
Maintenance (F)
Purchasing (P)
Production (P)
(P) Part-time (F) Full-time
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Example of project responsibility structure
(2)Exchange Switch Design Upgrade
Steering Group (P)
Total Project Manager (F)
ASIC(1) design Italy (F)
Software modules (1) Sweden (F)
ASIC(2) design Australia (F)
Software modules (2) Australia (F)
System Integration and test Australia (F)
(P) Part-time (F) Full-time
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Electronic Design ProjectProject
ManagementLecture 4
ELE 12EDP
George Alexander G.Alexander_at_latrobe.edu.au www.la
trobe.edu.au/eemanage/
6 September, 2004
21
Implementing the Plan

• The project manager must co-ordinate all
  elements of the project
• Controlling work in progress
• Providing feedback
• Negotiating for materials, supplies and services
• Resolving differences

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Controlling work in progress

• The project plan is the key to effectively
  controlling the project in terms of quality, time
  and cost. It involves
• Establish standards. (Refer specification).
• Monitor performance.
• Take corrective action.

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Performance Monitoring Tools

• Control Point Identification Charts
• Anticipates problems and solutions.
• Project Control Charts
• Monitors status of schedule and budget.
• Milestone Charts
• Reports scheduled and actual milestone dates.
• Budget Control Charts
• Plots actual vs budget cumulated costs.

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Risk Management

• Identify what could go wrong.
• Can be a group meeting or, for a large project,
  an intensive 2-3 day workshop with prescribed
  methodology.
• Categorise/rate each item in terms of
• Likelihood of happening (H/M/L)
• Consequences/adverse impact (H/M/L)
• For items with high likelihood and high impact,
  draw up a contingency plan.
• If there is no viable contingency plan, then the
  issue must be highlighted as a risk (to the
  client and other stakeholders).

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Action Responsibility Matrix - Example
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Providing Feedback

• Feedback negative and positive - should be
  provided on a regular basis to those involved in
  the project.
• This helps maintain good performance and correct
  poor performance.

Intentions
Actions
Results
Feedback
Source Haynes, M.E. Project Management from Idea
to Implementation Kogan Page, 1990
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Progress and time reporting

• All project team members must regularly and
  accurately report progress for their specific
  responsibility areas.
• This is critical if the project managers are to
  be aware of true project progress and
  difficulties.
• Time expended on the various activities must be
  reported accurately and on time.
• Delays in time reporting can result in delays in
  invoicing the client and in wrong project cost
  reporting.

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Negotiating and resolving differences

• A significant proportion of the project managers
  time is spent negotiating and resolving
  differences.
• This is often caused by scarce resources -
  materials and people and differing views of the
  priorities that apply.
• Negotiation and conflict resolution are key
  skills, learned with experience, complemented by
  formal training.

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Completing and evaluating the project

• Successful conclusion requires client acceptance
  of the project outcomes.
• This means agreement that the quality time and
  cost parameters have been met, including any
  agreed changes made during the life of the
  project.
• It is vital that any changes made to the original
  project plan are agreed with the client and fully
  documented.

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Change Control within a project

• It is vital that changes are scrupulously managed
  during the course of a project.
• Changes to the original specification must be
  agreed in writing with the client including
  their impact on quality, time, and cost.
• Changes may be necessary due to unforeseen
  technical difficulties, or simply a change of
  mind on the part of the client.
• Unforeseen problems can be minimised through
  thorough initial planning.

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The Completion Process

• Delivery
• Wrap up and close down
• Celebration
• Evaluation and reflection
• LEARN FROM THE EXPERIENCE

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Project Final Report

• Summarise project outcomes actual compared to
  planned
• Learnings
• What was good what was bad
• Highlight any need for process changes.
• Information source for future projects

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Other facets of Project Management

• Negotiation and conflict resolution
• Assertiveness
• Team Building
• Performance management
• Budget control
• Ability to handle pressure
• Project Management Systems

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Project Management Systems

• Quite sophisticated software packages are
  available for managing projects particularly
  complex projects.
• They assist in tracking time-reporting, and other
  costs, and assist in monitoring the project
  schedule.
• Some examples are
• MS Project
• ARTEMIS
• Primavera

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Thanks and good luck in managing your
electronic design project!