1. EUT443 – Engineering Management Chapter 1 The World of Project Management

2. EUT443 – Engineering Management WHAT IS A PROJECT?

3. EUT443 – Engineering Management Why the emphasis on project management? Many tasks do not fit neatly into business- as-usual. Need to assign responsibility and authority for achievement of organizational goals.

4. EUT443 – Engineering Management Characteristics of Projects Unique Specific Deliverable Specific Due Date

5. EUT443 – Engineering Management Other Common Characteristics of Projects Multidisciplinary Complex Conflict Part of Programs

6. EUT443 – Engineering Management PMI Definition “A temporary endeavor undertaken to create a unique product or service” Project Management Institute, 2000

7. EUT443 – Engineering Management PROJECT MANAGEMENT VS. GENERAL MANAGEMENT

8. EUT443 – Engineering Management Skill Requirements for Effective Project Management Conflict Resolution Creativity and Flexibility Ability to Adjust to Change Good Planning Negotiation –win-win versus win-lose

9. EUT443 – Engineering Management WHAT IS MANAGED? THE THREE GOALS OF A PROJECT

10. EUT443 – Engineering Management Figure 1-1: Performance, Cost, and Time Project Targets

11. EUT443 – Engineering Management THE LIFE CYCLES OF PROJECTS

12. EUT443 – Engineering Management Figure 1-2 The Project Life Cycle

13. EUT443 – Engineering Management Figure 1-3 An Alternate Project Life Cycle

14. EUT443 – Engineering Management SELECTING PROJECTS

15. EUT443 – Engineering Management Nonnumeric Selection Methods The Sacred Cow The Operating/Competitive Necessity Comparative Benefits

16. EUT443 – Engineering Management Figure 1-4 The Q-Sort Method

17. EUT443 – Engineering Management Numeric Selection Methods Financial Assessment Methods –payback period –discounted cash flow Scoring Methods –unweighted 0-1 factor method –weighted factor scoring method

18. EUT443 – Engineering Management Payback Period

19. EUT443 – Engineering Management Discounted Cash Flow where I 0 = the initial investment F t = the net cash flow in period t k = the required rate of return or hurdle rate

20. EUT443 – Engineering Management The Weighted Scoring Model where S i = the total score of the i th project s ij = the score of the i th project on the j th criterion w j = the weight or importance of the j th criterion

21. EUT443 – Engineering Management Confronting Uncertainty – The Management of Risk

22. EUT443 – Engineering Management What uncertainties are encountered in project management? Time required to complete a project Availability of key resources Cost of resources Timing of solutions to technological problems Actions taken by competitors

23. EUT443 – Engineering Management Can uncertainty surrounding projects ever be eliminated? No, but it can be managed

24. EUT443 – Engineering Management Risk Analysis Estimate probabilities or distributions associated with key parameters Develop analytic or simulation model Analyze distribution of outcomes generated by model

25. EUT443 – Engineering Management Risk Analysis with Crystal Ball Assumption Cells Distribution Gallery Forecast Cells

26. EUT443 – Engineering Management THE PROJECT PORTFOLIO PROCESS

27. EUT443 – Engineering Management The Project Portfolio Process Step 1: Establish a Project Council Step 2: Identify Project Categories and Criteria Step 3: Collect Project Data Step 4: Assess Resource Availability Step 5: Reduce the Project and Criteria Set Step 6: Prioritize the Projects within Categories Step 7: Select the Projects to be Funded and Held in Reserve Step 8: Implement the Process

28. EUT443 – Engineering Management The Aggregate Project Plan

29. EUT443 – Engineering Management Figure 1-12 An Example Aggregate Project Plan

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