Management of Engineering Projects Management

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Course Purpose

• The purpose of this course is to understand the

concept, tools and techniques required to plan,

organize, implement, evaluate a project with

emphasis on successful handling of project.

(Project Managers should think of themselves as

"team leaders)

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Participation

• Two sources of participation grade (either / or)– Responses to cold calls– Level of voluntary participation

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Books

Text book – Project Management: The Managerial Process (5th

Edition) by Erik W. Larson, Clifford F. Gray 2011, New York, ISBN 978-0-07-340334-2

Reference Book– Project Management with CPM, PERT & Precedence

Diagramming, Last Edition, by Moder J., Phillips C. and Davis E.

What is project

(PMBOK):

A project is a temporary endeavour undertaken to create a unique product, service or result.

What is a Project?

Temporary – Definitive beginning and end Unique – New undertaking, unfamiliar ground

Temporary UniqueCharacteristics of Projects

What is Project

- Definite beginning and END

- END: when Project Objectives

achieved, or terminated

or no longer exist

What is Not Project: Projects should not be confused with everyday work.

A project is not routine, repetitive work! Ordinary daily work typically requires doing

the same or similar work over and over, while a project is done only once

a new product or service exists when the project is completed

Projects versusRoutine Operations

ProjectsUnique

Limited life span

Multiple stakeholders

Sponsor

Variable demand for resources

Uncertainty

Routine Operations

Repetitive

Continuous

Department

Supervisor

Stable

What is Engineering?

• The profession in which a knowledge of the mathematical and natural science gained by study, experience, and practice is applied with judgement to develop ways to utilize, economically, the materials and forces of nature for the benefit of mankind

(1979, US. Engineering societies).

What is Management?

• A set of activities (including planning and decision making, organising, leading and control) directed at an organisation’s resources (human, financial, physical and informational) with the aim of achieving organisational goals in an efficient and effective manner.

(Griffin)

Theory of Management

Evolution of Management TheoryEvolution of Management Theory

Administrative Management

Behavioral Management

Scientific Management

Management Science

Org. Environment

Theory X and YTheory X and Y Douglas McGregor proposed the two

different sets of worker assumptions.g Theory X: Assumes the average worker is

lazy, dislikes work and will do as little as possible. Managers must closely supervise and control

through reward and punishment.g Theory Y: Assumes workers are not lazy,

want to do a good job and the job itself will determine if the worker likes the work.

Theory X v. Theory YTheory X v. Theory Y

Theory YEmployee is not lazy

Must create work setting to build initiative

Provide authority to workers

Theory X

Employee is lazy

Managers must closely supervise

Create strict rules & defined rewards

Authority is centralized at the top. (Theory X) Employees closely monitored and managed. Very efficient in a stable environment.

Authority is decentralized throughout employees. (Theory Y) Much looser control Managers can react quickly to changing

environment.

Theory ZTheory Z William Ouchi researched the cultural

differences between Japan and USA. USA culture emphasizes the individual, and

managers tend to feel workers follow the Theory X model.

Japan culture expects worker committed to the organization first and thus behave differently than USA workers.

Theory Z combines parts of both the USA and Japan structure. Managers stress long-term employment, work-

group, and organizational focus.

What is Project management (PMBOK)

Here’s one definition:

Project management is the application

of knowledge, skills, tools and techniques to project activities to meet project requirements

PMI

Project Management Institute (PMI)

www.pmi.org

Project Life Cycle

Project Life Cycle

5 types of processes Initiating Planning Executing Monitoring and Controlling Closing

Project Management Process

Initiation Planning

Execution Controls

Closeout

Source: PMBOK

Processes in a Project

5 types (process groups)

PM 5-processes: Project Initiation Selection of the best project given resource

limits Recognizing the benefits of the project Preparation of the documents to sanction the

project- Project Charter Identify Stakeholders Assigning of the project manager

5-Processes: Project Planning

Definition of the work requirements Definition of the quality and quantity of work Definition of the resources needed Scheduling the activities Evaluation of the various risks

(Note: All areas of project management)

5-Processes: Project execution Putting project management plan into action Negotiating for the project team members Directing and managing the work The Executing processes keeps the

project plan on track. Approved changes are implemented

5-Processes: Project Control

Tracking progress Comparing actual outcome to predicted

outcome Analyzing variances and impacts Making adjustments

5-Processes:Project closing

Verifying that all of the work has been accomplished

Contractual closure of the contract Financial closure of the charge numbers Administrative closure

Knowledge Areas of Project Management (PMBOK)

PMI

PMI

10th knowledge area added in PMBOK (2013)- Project Stakeholder Management (LL)

Key Areas of Project Management

Scope Management Issue Management Cost Management Quality Management Communications Management Risk Management Change Control Management

Scope Management

Primarily it is the definition and control of what IS and IS NOT included in the project.

Issue Management

Issues are restraints to accomplishing the deliverables of the project.

Typically identified throughout the project and logged and tracked through resolution.

Rope not thick

Issue… already impacting the cost, time or quality

What is project success?

What is project success?

On time, on budget? Users use it? It meets the stated requirements? It brings an economic return?

“A successful project is one that delivers expected results”

Project Success

Customer Requirements satisfied/exceeded

Completed within allocated time frame

Completed within allocated budget

Accepted by the customer

Some typical causes of project failure Not enough commitment from senior

management Not enough commitment to following an

appropriate system development methodology - taking shortcuts

Not managing expectations well enough scope creep feature creep

Some typical causes of project failure

Project Failure

Scope CreepPoor Requirements

Gathering

Unrealistic planning and scheduling

Lack of resources

More causes of project failure

Poor estimating techniques Over optimism Inadequate people management skills A weak or problematic project team Insufficient or inappropriate resources Failure to adapt to business change Failure to stick with the plan Failure to monitor the plan