Management of Engineering Projects Management

- 2 - 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)

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

- 4 - Books Text book –Project Management: The Managerial Process (5th Edition) by Erik W. Larson, Clifford F. Gray 2011, New York, ISBN Reference Book –Project Management with CPM, PERT & Precedence Diagramming, Last Edition, by Moder J., Phillips C. and Davis E.

Introduction to PM Project Life cycle Project scope Basic Management Processes

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 Unique Characteristics 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 versus Routine Operations Projects Unique Limited life span Multiple stakeholders Sponsor Variable demand for resources Uncertainty Routine Operations Repetitive Continuous Department Supervisor Stable

What is Engineering? knowledge study, experience, and practice judgement utilize materials and forces benefit of mankindThe 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? set of activities directed at resources achieving organisational goalsA 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 Theory Administrative Management Behavioral Management Scientific Management Management Science Org. Environment

Theory X and Y Douglas McGregor proposed the two different sets of worker assumptions.  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.  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 Y Theory Y Employee is not lazy Must create work setting to build initiative Provide authority to workers Theory X Employee is lazy Managers must closely supervise 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 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)

Project Life Cycle

5 types of processes  Initiating  Planning  Executing  Monitoring and Controlling  Closing

Project Management Process InitiationPlanning ExecutionControls 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

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

Cost Management This process is required to ensure the project is completed within the approved budget and includes: Resources people equipment materials Quantities Budget

Quality Management Quality Management is the process that insure the project will meet the needs “conformance to requirements” - Crosby “fitness for use” - Juran

Communications Management This process is necessary to ensure timely and appropriate generation, collection, dissemination, and storage of project information

Risk Management Risk identification and mitigation strategy Risk update and tracking Risk… POTENTIAL negative impact to project

Change Control Management Define how changes to the project scope will be executed Scope Change Schedule changes Technical Specification Changes

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 Creep Poor 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