2BOOK VERSION Project ManagementManaging Engineering and Technology CH 14 6e

Managing Engineering and Technology
Sixth Edition
Morse and Babcock
Managing Projects
Chapter 14
© 2015 Pearson Education, Ltd. All rights reserved.
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
Project
A project is a one-time job
that has definite starting and
ending points, clearly defined
objectives, scope, and
(usually) a budget.

Essential Considerations of
a Project
• Cost
• Schedule
• Performance

Project Proposal Process
• Description of what is to be
accomplished – Scope
• Proposal or estimate of time

Schedule
• Proposal or estimate of cost

Budget
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
Proposal Preparation
• Based on RFP
– Statement of Work (SOW)
– Statement of Objectives (SOO)
– Schedule
– Specifications
– Standard Clauses
Proposal Preparation
• Government vs. Commercial
• Reviewed extensively by both parties
• May become basis for contract

(including 1st and 2nd tier
specifications)
Potential Problems
When not using PM
• Excessive work loads
• Cost overruns
• Staffing conflicts
• Scope of project changes
• Work redone or duplicated
• Insufficient resources
• Missed deadlines
Project Parameters
Cost Time
Performance

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
Managing a Project
Define the Problem
Plan the Project
Execute the Plan
Monitor and Control Progress
Close Project
Define the Problem:
Initiation
• What is the Purpose?
• What Customer Need is being

Satisfied by the Project?

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?
Effective Planning
• Plan to plan
• People implementing plan

should be involved in preparing
plan
• What is the Purpose?

Planning:
Goal Statement
• What do we do?
• For whom do we do it?
• How do we go about it?

Planning:
Develop Objectives
• Specific
• Measurable
• Attainable
• Realistic
• Time-limited
• Consistent with organizational plans
Develop Detailed Plan
• Project Team
–Identify project activities
–Estimate durations
–Determine resources
–Construct network

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
Planning:
Work Breakdown Structure (WBS)
• Complicated task is subdivided
into several smaller tasks
• Process continued until task can

no longer be subdivided

Execute the Plan
• Establish team operating rules
• Level project resources
• Schedule work packages

Monitor and Control
Progress
• Establish progress reporting
system
• Install Change Control process
• Monitor project progress vs. plan
• Revise project plan

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

What is difference between
engineering management and
project management?

Models for Project Planning
• Gantt Chart
• CPM
• PERT
• Project Software
• Gantt Charts (Henry L. Gantt)
–Tasks
–Precedence Relationship
–Duration
–Also referred to as Bar Chart

Gantt Chart
• Easiest to assemble and update
• Least costly & least
sophisticated
• Short term projects with under
50 activities
• Projects with activities easy to
estimate
• Network Scheduling Systems
– Critical Path Method (CPM);
construction
– Program Evaluation Review Technique
(PERT); aerospace and related industry
• Optimistic
• Likely
• Pessimistic
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
CPM
• Activity oriented
• Best to identify critical path
• May be costly to maintain
• Long term projects with
predictable activities
• Projects with scarce resources
PERT
• Most complex & difficult to
implement
• Most costly to maintain
• For state of art projects

PERT/CPM Terminology
• Activity
• Critical activity
• Path
• Critical path

Example
Setup of Production Facility
Jobs Description Duration/ Predecessors
Weeks
1 Design production tooling 4 -
2 Prepare manufacturing 6 -
drawings
3 Prepare production 10 -
facility
4 Procure tooling 12 1
5 Procure production parts 10 2
6 Kit parts 2 3,4,5
7 Install tools 4 3,4
8 Testing 2 6,7

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Managing Engineering and Technology

© 2015 Pearson Education, Ltd. All rights reserved.

© 2015 Pearson Education, Ltd. All rights reserved.

• Proposal or estimate of time

• Proposal or estimate of cost

• Reviewed extensively by both parties

• May become basis for contract

© 2015 Pearson Education, Ltd. All rights reserved.

Plan the Project

Execute the Plan

Monitor and Control Progress

• What Customer Need is being

© 2015 Pearson Education, Ltd. All rights reserved.

• What must be done?

• People implementing plan

• What is the Purpose?

• For whom do we do it?

• How do we go about it?

© 2015 Pearson Education, Ltd. All rights reserved.

© 2015 Pearson Education, Ltd. All rights reserved.

• Process continued until task can

© 2015 Pearson Education, Ltd. All rights reserved.

• Level project resources

• Schedule work packages

© 2015 Pearson Education, Ltd. All rights reserved.

© 2015 Pearson Education, Ltd. All rights reserved.

© 2015 Pearson Education, Ltd. All rights reserved.

© 2015 Pearson Education, Ltd. All rights reserved.

© 2015 Pearson Education, Ltd. All rights reserved.

© 2015 Pearson Education, Ltd. All rights reserved.

© 2015 Pearson Education, Ltd. All rights reserved.

© 2015 Pearson Education, Ltd. All rights reserved.

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