EMgt 4110 Engineering Professionalism and Practice

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EMgt 4110 Engineering Professionalism and Practice

• Project Management

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Project

• A temporary endeavor undertaken to create a
  unique product or service

PMI (Project Management Institute) Standards
Committee, A Guide to the Project Management
Body of Knowledge (PMBOK) Upper Darby, PA PMI,
1996, p.167
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Three Dimensions of Project Goals
Cost
Target
Performance
Time
Adapted from Milton Rosenau, Successful Project
Management (Belmont, Ca. Lifetime Learning
Publications, 1981), 16.)
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Stages

• Project Definition
• Project Selection (financial aspects,
  non-financial or intangible aspects)
• Project Planning
• Project Execution (control)
• Project Termination (evaluation)

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Time Distribution of Project Effort
Peak Effort Level
Level of Effort
Time
Evaluation And Termination
Planning, Scheduling, Monitoring, Control
Conception
Selection
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Relative Uncertainty of Ultimate Time and Cost by
Life-Cycle Phase
From Russell D. Archibald, Managing
High-Technology Programs and Projects, Wiley, New
York, 1976, p.23
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Project Planning
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Project Plan - Contents

• Objectives
• Benefits
• Scope of Work
• Project Team Organization
• Schedule (Network, Milestones)
• Resources (equipment, labor, contractors)
• Budget (detail, controls)

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Project Plan - Purpose

• Baseline for Evaluating and Controlling Progress
• Highlight Critical Issues
• Coordinate with External Parties
• Communicate to Affected Parties

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Action Plan
Deliverables
Measure(s) of accomplishment
Key constraints and assumptions
Immediate predecessor tasks
Estimated time duration
Estimated resources
Assigned to
Tasks
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Work Breakdown Structure

• Hierarchy of Tasks
• Higher levels contain summary tasks
• Lowest level tasks represent actual work
• Divide along Physical or Specialty Boundaries?
• Use a Coherent Numbering System
• Tie Numbering into Schedule, Budget

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Example of WBS for Building a House
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Responsibility Interface Matrix (RIM)
Persons or Positions Responsible
Project Engineer
Basic Design
A
Project Element or Work Package
Responsibility Code P Primary Responsibility S Sec
ondary Responsibility N Must be Notified A Must
Give Approval
Structure of a Responsibility Matrix
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Sample of Responsibility Interface Matrix (RIM)
From Kocaoglu, D.F. and Cleland, D.I. RIM
Process, Management Review 1982
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Reporting Relationship Matrix
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Remember...

• Obtaining Permits/Licenses
• Generating Reports
• Get a Second Opinion!
• Identify Key Milestones
• Identify and Address All Deliverables
• FOCUS ON THE OBJECTIVES

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Project Scheduling
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Project Scheduling

• Core of project management
• Time dimension of project plan
• Shows logical relationships between tasks
• Determines completion date and milestone dates
• Identifies critical items

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Schedule Elements

• Tasks/activities (have duration)
• Milestones (no duration, important events)
• Relationships
• Time line (hours, days, weeks, months)

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Network Techniques

• CPM (Critical Path Method)
• Designed for construction projects
• Activity-on-arrow vs. Activity-on-node
• Converted from action plan
• PERT (Program Evaluation and Review Technique)
• Time oriented
• Use probabilistic activity time estimates
• PERT/CPM

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Network Techniques

• Network The arrangement of all activities (Arcs)
  and events (nodes at the beginning and end of an
  arc), defining the project and the
  predecessor-successor relationships among
  activities.
• Path Series of connected activities or
  intermediate events between any two events in a
  network.

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Project Scheduling Definitions

• Critical Activities/Events Activities/Events
  which, if delayed, will delay the completion of
  the project.
• Critical Path
• Sequence of critical activities and
  critical events that connect the projects start
  event and finish event.

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Gantt Chart
Week
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A Hierarchy of Bar Charts
Top Level
Intermediate Level
Bottom Level
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Project Management Software

• Professional Packages
• Over 2000 cost
• Very flexible, multi-project capability
• Primavera Project Planner (P3)
• Personal Packages
• Under 500 cost
• Canned views, reports, graphics
• Microsoft Project

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Resources Allocation and Budget
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Resource Allocation

• Standard PERT/CPM methods assume project is time
  constrained
• Resource constrained projects are common
• Resources
• People
• Equipment
• Space

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Project Budget

• Budget is also a control mechanism
• Top-Down Budgeting
• Bottom-Up Budgeting
• Combined

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Estimating

• Total Cost Estimate
• Target Accuracy (5-15)
• Follow the WBS and Schedule
• The Cost of Estimating Time Accuracy

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Elements of an Estimate

• Material Cost
• Get quotes on big-dollar items
• Estimate other items
• Remember tax and freight (11)
• Labor Cost
• Hours per task
• Hourly rates
• Overhead (Overtime, meals, sick pay, holiday pay,
  etc.)

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The Other Costs

• Design, engineering
• Permits, fees
• Interest expense
• Equipment rental, leases
• Secretarial, administration, document
  reproduction, phone calls, fax
• Overhead
• Contingency/Escalation

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Spending Plan

• Budget Meets Schedule
• Month-by-Month Spending
• Budget Tied to Achievement
• Cumulative Spending Curve
• Distribute Indirect/Other Costs

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Project Monitoring and Control
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Planning vs. Control

• Planning concentrates on setting goals and
  directions Control guides the work toward those
  goals
• Planning allocates resources Control ensures
  effective, ongoing utilization of those resources
• Planning anticipates problems Control corrects
  the problems
• Planning motivates participants to achieve goals
  Control rewards achievement of goals

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Controlling

• Plan
• Review of the Plans Previously Instituted for
  the Objectives in Question
• Measuring
• Determining the Current Level of Accomplishment
  or Progress toward the Given Objectives
• Comparison
• Comparing the Measured Actual Performance to
  Planned Performance at the Current Stage of
  Events
• Evaluating
• Identifying Significantly Unfavorable Deviations
  from Planned Performance
• Re-planning
• Determining What Courses of Action are Needed to
  Bring Performance Up to or Beyond Previously
  Planned Level to What Defined Objectives can be
  Achieved to Exceeded
• Correcting
• Implementing the Corrective Actions as
  Determined above

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Project Control Cycle
Measure
Take Corrective Action
Compare and Evaluate
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Gantt Chart Showing Work Status as of Week 20
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Corrective ActionCrashing

• Compute a cost/time slope for each activity that
  can be expedited (crashed)
• Focus on the critical path(s)
• Crash activities one at a time to decrease
  project duration at the minimum additional cost.

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Trend Projection