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Managing Engineering and Technology

Sixth Edition

Morse and Babcock

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Managing Engineering and Technology Sixth Edition

Morse and Babcock

Managing Projects

Chapter 14

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Research

Design

Managing Technology

Planning Production

Managing Production

Project Managment

Marketing

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Chapter Objectives• Describe the three main elements

of a project• Explain the important parts of a

scope• Discuss scheduling techniques• Be able to shorten a project by

“crashing”• Explain the steps in a project life

cycle

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Project A project is a one-time job

that has definite starting and ending points, clearly defined objectives, scope, and (usually) a budget.

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Essential Considerations of a Project

• Cost

• Schedule

• Performance

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Project Proposal Process• Description of what is to be

accomplished – Scope

• Proposal or estimate of timeSchedule

• Proposal or estimate of costBudget

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Project Proposal Process

• Pro-active businesses prepare in advance–Technical capabilities/skills/skill

mix–Assessment of future technologies–Assessment of future markets

• Proposals are expensive to complete

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Proposal Preparation• Based on RFP

–Statement of Work (SOW)–Statement of Objectives (SOO)–Schedule–Specifications–Standard Clauses

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Proposal Preparation

• Government vs. Commercial

• Reviewed extensively by both parties

• May become basis for contract (including 1st and 2nd tier specifications)

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Potential ProblemsWhen not using PM• Excessive work loads• Cost overruns• Staffing conflicts• Scope of project changes• Work redone or duplicated• Insufficient resources• Missed deadlines

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Project Parameters

Cost Time

Performance

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Scope the Project• What is the Problem/Purpose?• Establish Goal/Objectives• What Client Need is being

Satisfied by the Project?• Identify Success Criteria• Identify Risks and Assumptions

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Managing a Project

Close Project

M onitor and Control Progress

Execute the Plan

Plan the Project

Define the Problem

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Define the Problem:Initiation• What is the Purpose?

• What Customer Need is being Satisfied by the Project?

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Plan the Project

• What must be done?• Who will do it?• How will it be done?• When must it be done?• How much will it cost?• What do we need to do it?

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Effective Planning

• Plan to plan

• People implementing plan should be involved in preparing plan

• What is the Purpose?

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Planning:Goal Statement• What do we do?

• For whom do we do it?

• How do we go about it?

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Planning:Develop Objectives• Specific• Measurable• Attainable• Realistic• Time-limited• Consistent with organizational plans

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Develop Detailed Plan

• Project Team–Identify project activities–Estimate durations–Determine resources–Construct network

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Project Planning Tools• Milestone Schedule

– Key start and end dates– May include entrance and exit criteria

for each milestone• Work Breakdown Structure (WBS)

– Level-by-level subdivision of work to be performed in a contract

– Common framework or outline

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Planning:Work Breakdown Structure (WBS)• Complicated task is subdivided

into several smaller tasks

• Process continued until task can no longer be subdivided

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Execute the Plan

• Establish team operating rules

• Level project resources

• Schedule work packages

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Monitor and Control Progress• Establish progress reporting

system• Install Change Control process• Monitor project progress vs. plan• Revise project plan

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Close Project

• Obtain customer acceptance• Install project deliverables• Complete project documentation• Issue final project report• Celebrate

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What is difference between engineering management and project management?

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Models for Project Planning• Gantt Chart

• CPM

• PERT

• Project Software

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Project Planning Tools• Gantt Charts (Henry L. Gantt)

–Tasks–Precedence Relationship–Duration–Also referred to as Bar Chart

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Gantt Chart• Easiest to assemble and update• Least costly & least

sophisticated• Short term projects with under

50 activities• Projects with activities easy to

estimate

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Project Planning Tools• Network Scheduling Systems

– Critical Path Method (CPM); construction

– Program Evaluation Review Technique (PERT); aerospace and related industry• Optimistic• Likely• Pessimistic

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CPM/PERT Properties

• Well defined activities, which on completion, signify end

• Activities may be started and stopped independently of each other within given sequence

• Precedence relationships

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CPM

• Activity oriented• Best to identify critical path• May be costly to maintain• Long term projects with

predictable activities• Projects with scarce resources

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PERT

• Most complex & difficult to implement

• Most costly to maintain• For state of art projects

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PERT/CPM Terminology

• Activity• Critical activity• Path• Critical path

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ExampleSetup of Production Facility

Jobs Description Duration/Weeks

Predecessors

1 Design production tooling 4 -2 Prepare manufacturing

drawings6 -

3 Prepare productionfacility

10 -

4 Procure tooling 12 15 Procure production parts 10 26 Kit parts 2 3,4,57 Install tools 4 3,48 Testing 2 6,7