ECU 401 PROJECT MANAGEMENT HANDOUT FOR ENGINEERS

Objective: to utilize this process in a real world situation in future and to increase your
knowledge as a competent engineer.

 “The crux of the design process is creating a satisfactory solution to a need. The need may be
to improve an existing situation or to eliminate a problem. In any case, it is what engineering is
all about—using knowledge and know-how to achieve a desired outcome.”

Engineering projects involve creative problem solving, and they are not hypothesis testing. Each
engineering design, software application or device project should have a clear engineering goal
which can fit the following model statement:

“The design and construction of a (engineered product) for (target user) to do (some useful
function).”

Where can you get project ideas? You may get suggestions from teachers, advisors or
mentors. Be sure to use the web (www.science-fair.org, www.sciencebuddies.org,
www.madsci.org, ISEF Science Project Resources) for inspiration, however your idea should be
original. Quality entries from previous fairs are good sources of ideas and best practices. Some
high school technology curricula address the engineering design process, and many college and
professional engineering societies have on-line resources.

You will use the engineering design process to create your fair entry. This process is typical of
those used by practicing engineers; the definition of terms and the number of steps may vary, but
these are “essential steps.” Your very first step is to start a project notebook in which you will
record every step of your process and the results of your design efforts. The process is iterative,
meaning the designer will often repeat steps until he or she is confident the design will meet the
needs. Note: the terms product, invention, project, design, and solution are often used
interchangeably in Fair Guidelines.

The Engineering Design Process:

Define a need; express as a goal

Establish design criteria and constraints

Evaluate alternative designs

Build a prototype of best design

Test and evaluate the prototype using the design criteria

Analyze test results, make design changes, and retest

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Communicate the design

Step 1. Identify a need

The need (also called the problem you are solving or the Engineering Goal) is frequently
identified by customers–the users of the product. The customer could be a retail consumer or the
next team in a product development. Customers may express needs by describing a product (I
need a car) or as a functional requirement (I need a way to get to school). The need should be
described in a simple statement that includes what you are designing (the product), who it is for
(customer), what need does it satisfy (problem to solve), and how does it improve previous
designs (easier to use, less expensive, more efficient, safer).

Step 2. Establish design criteria and constraints

Design criteria are requirements you specify that will be used to make decisions about how to
build and evaluate the product. Criteria are derived from needs expressed by customers. Criteria
define the product’s physical and functional characteristics and must be declared as a
measurable quantity. Some examples of quantitative criteria include length (in cm, km, etc.);
mass (in mg, kg, etc.); velocity (in m/sec, km/hr., etc.); and ruggedness (able to withstand an
impact force of x Newtons). Some examples of quantitative accuracy include, ‘…fewer than y
errors per mSec…’ or ‘…fewer than z particles per liter of fluid….’ Constraints are factors that
limit the engineer’s flexibility. Some typical constraints are cost, time, and knowledge; legal
issues; natural factors such as topography, climate, raw materials; and where the product will be
used. Good designs will meet important design criteria within the limits fixed by the constraints.
Good designs are also economical to make and use because cost is always a design constraint!

Step 3. Evaluate alternative designs and create your test plan

Your research into possible solutions will reveal what has been done to satisfy similar needs.
You’ll discover where knowledge and science limit your solutions, how previous solutions may be
improved, and what different approaches may meet design objectives. You should consider at
least two or three alternative designs and consider using available technology, modifying current
designs, or inventing new solutions. Superior work will demonstrate tradeoff analyses such as
comparing the strength vs. cost of various bridge-building materials. It’s important to document in
your project notebook how you chose and evaluated alternative designs. Can you defend your
choices to the judges?

You will develop an initial test plan describing how you will test the design criteria and constraints
you listed in Step 2. Many engineering design projects will require pre-approval from the SRC. A

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risk assessment form (3) is required for any project using hazardous chemicals, activities or
devices and microorganisms exempt from pre-approval. If you will involve humans in your
product testing, you will be required to fill out a Human Participant Research Plan. The
exemption to this requirement is if your invention does not pose a risk, and it is being tested only
by yourself or your team members.

Step 4. Build a prototype of best design

Use your alternative analyses to choose the design that best meets criteria considering the
constraints, then build a prototype. A prototype is the first full scale and usually functional form of
a new type or design.

Step 5. Test and evaluate the prototype against important design criteria to show how well the
product meets the need

You must test your prototype under actual or simulated operating conditions. Make sure you test
all of your criteria and constraints to evaluate the success of your prototype. Customers are
usually involved in product testing so be sure you have SRC approval if people are involved.

Step 6. Analyze test results, make design changes and retest

Testing will disclose some deficiencies in your design. Sometimes the testing fails completely
and sends the designer “back to the drawing board.” Make corrections and retest OR prepare an
analysis of what went wrong and how you will fix it. As always, document your analyses, fixes,
and retests in your notebook.

Step 7. Communicate the design

The designer’s real product is the description of a design from which others will build the product.
Use your notebook and the fair exhibit to communicate the design to your customer and the
judges. Your product description will be conveyed in drawings, photos, materials lists, assembly
instructions, test plans and results. Consider listing lessons learned so future designers need not
repeat any of your “frustrations.” You’ll have clear instructions on how to produce your design,
along with production cost estimates.

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Step 8. Prepare

Prepare your engineering project exhibit board. See the Project Display Rules and Helpful
Display Hints for a successful project board.

Step 9. Prepare your abstracts and compliance checklist

The Project Management Body of Knowledge

My reference will be the Project Management Body of Knowledge (PMBOK) by the Project

Management Institute.  This is the standard for project management in most of the world.  In the
UK the APM Body of Knowledge by the Association for Project Management is slightly more
popular, but the content is very similar.

Project Phases

According to the PMBOK, projects are neatly divided into 5 phases:

1. Initiation
2. Planning
3. Execution
4. Monitoring & Controlling
5. Closing
These are called “process groups” instead of phases because they are the logical groupings of
“processes” and they don’t necessarily happen in chronological order.  Generally they do, but
sometimes projects occur in phases whereby you return back to the Initiation or Planning step
midway.  For most projects, however, you can assume the five phases occur in chronological
order with the exception of step 4, Monitoring & Controlling, which happens simultaneously with
step 3, Execution.

Project Management Documents

In each phase the project manager, or their designate produces certain documents which assist
them in managing the project and communicating the project information.  Because it is a
textbook, the PMBOK mentions many specialty documents, but for most small projects a simple
document list can look like this:

Phase Document

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Initiating
 Project Charter

Planning  Project Management Plan

 Project Status Reports
Execution  Stakeholder communication
 Change Logs
Monitoring &  Variance Reports (earned value analysis)
Controlling  Change Logs
Closing  Project Closure Report
Step 1: Initiation

The first step in the PMBOK is the project initiation phase.   This phase includes the creation of
the project and definition of lines of authority.  It is separate from planning.

PMBOK, 5th Edition, Section 3.3, “Initiating Process Group”

The Initiating Process Group consist of those processes performed to define a new project or a
new phase of an existing project by obtaining authorization to start the project or phase.  Within
the Initiating processes, the initial scope is defined and initial financial resources are committed. 
Internal and external stakeholders who will interact and influence the overall outcome of the
project are identified.  If not already assigned, the project manager will be selected.

There is only one major project management document that is created during the project
initiation phase.

Phase Document

Initiation
 Project Charter
I have included the project charter in this article but in fact, for small projects you might not need
it.  In the engineering firm I founded, it is pretty clear when we receive a project that the project is
ready to start, funded, and who the major stakeholders are.  We have to assign a project
manager internally, but this is also very clear so there is usually no formal project charter
needed.  I believe the project charter applies mainly to projects which are being undertaken
internally, by the same organization who is receiving the deliverables.

Step 2: Planning

The second step is planning the project, and it is tremendously underrated.  The Project
Management Institute’s research over and over again suggests that problems could have been
avoided with a little extra planning.

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PMBOK, 5th Edition, Section 3.4, “Planning Process Group”

The Planning Process Group consists of those processes performed to establish the total scope
of the effort, define and refine the objectives, and develop the course of action required to attain
those objectives.  The Planning processes develop the project management plan and the project
documents that will be used to carry out the project.

Once again, there is one major project management document that is generated during the
planning phase, but unlike initiation it is a big one.

Phase Document

Planning
 Project Management Plan
The project management plan is the project manager’s guiding document.  It communicates to
everyone, internal or external, how the project will be managed.  It includes the two all-important
items of schedule and budget.

It is circulated to the project sponsor for approval, and then it becomes the official project plan. 
Changes to the plan are required to be noted in the Change Log and reapproval from the project
sponsor must be obtained.  I believe the four minimum essential parts of a functioning project
management plan are as follows:

1. Scope statement.  This is a statement which identifies the work the project will

perform, the deliverables it will produce, and the applicable boundaries of the
project.
2. Work Breakdown Structure.  The WBS is a task breakdown of the project.  It can
be a simple listing of tasks, or in graphical (fancy) format.
3. Project Schedule.  The project management plan must include a schedule.  For
microprojects this could be as simple as a specified completion date, but for most
projects a listing of completion dates for each task is the norm, or even better, a
graphical bar chart showing the completion dates for each task.  Since projects, by
definition, have a finite start and end date, the project schedule is a core
component of the plan and must be specified.
4. Project Budget.  Again, since projects have a finite start and end date they must
have a finite budget.  As a minimum, for microprojects you could specify a budget
for the whole project, but ideally each task in the work breakdown structure has a
cost associated with it, which in turn is rolled up into the overall project budget.
The following items can be added depending on the type and size of project, and its individual
needs:

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 1. Critical Success Factors.  This is the definition of project success.  Usually
meeting the deadline and coming in under budget are the top two, but most projects
have others as well, like whether the client was satisfied or environmental
regulations were met.
2. Quality Management Plan.  This is the component of the project management
plan that defines quality.  It lists the minimum standards that the project must meet,
how it will be obtained, and how it will be measured.  Almost every industry
contains written quality standards which can be used as quality targets, like ISO
9001, ASTM, or IEEE.
3. Risk Management Plan.  This is the component of the project management plan
that deals with risk.  Known potential risks are identified in a risk register, then
prioritized based on the two variables of Likelihood and Impact, and response
plans drawn up for those risks that pose a significant or existential threat to the
project.
4. Human Resource Management Plan.  This component of the project
management plan identifies the people requirements to complete the project, and
specifies how they will be obtained and managed.
5. Communications Management Plan.  This component of the project management
plan identifies the communications needs of the project.  It identifies the people and
organizations that require regular communication updates and what those updates
will contain.  For stakeholders that require ongoing informal communications, these
requirements are spelled out in as much detail and possible.
6. Procurement Management Plan.  This component of the project management
plan identifies the external purchasing needs of the project, how they will be
acquired, and how the vendors will be managed.
Step 3: Execution

In this step the project deliverables are produced by the project team.

PMBOK, 5th Edition, Section 3.5, “Executing Process Group”

The Executing Process Group consists of those processes performed to complete the work

defined in the project management plan to satisfy the project specifications.  This Process Group
involves coordinating people and resources, managing stakeholder expectations, as well as
integrating and performing the activities of the project in accordance with the project
management plan.

Naturally, the PMBOK cannot address the technical details of every project in every industry.  But
there are several standard processes that happen during all projects which the project manager
must be familiar with and apply to their project as necessary.

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Phase Document

 Project Status Reports

Execution
 Stakeholder communication
 Change Logs
1. Manage Project Team.  The project team that is identified during the planning
stage must be acquired and managed.  Training and development of the project
team is continually assessed to ensure the team has the knowledge required to
complete the project.
2. Perform Quality Assurance.  The project manager or project management team
must audit and inspect the processes which are creating the deliverables, to ensure
that the quality standards identified within the project management plan are
achieved.
3. Manage Communications.  The important project communication, such as e-mail,
letters, memos, updates, press releases, etc. are made and filed in the master
project communication registry.
4. Conduct Procurements.  The vendors are secured and their work is managed as
per the project management plan.
5. Manage Stakeholder Engagements.  The stakeholders’ expectations are actively
managed to ensure they are satisfied with the results produced by the project.
As part of the project’s communications management plan, the project manager or their
designate produces the applicable project updates and circulates them to the necessary
stakeholders.  Often this includes the earned value data, which is part of the next
step, Monitoring & Controlling.

Step 4:  Monitoring & Controlling

As mentioned earlier, this step occurs chronologically at the same time as step 3, Execution.

This is the step where project managers earn their money.  It separates the wheat from the
chaffe.  If you want to be a good project manager, you need to read the following part very
carefully and learn how to do it.

Phase Document

Monitoring &
 Variance Reports (earned value analysis)
Controlling
 Change Logs
The earned value method calculates the project’s status on two fronts:

 Schedule (time)

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  Cost
There are 7 steps to performing earned value analysis effectively.  It may seem like alot at first
glance, but for small projects this takes five minutes once you learn how to do it:

1. Determine the percent complete of each task.

2. Determine Planned Value (PV).
3. Determine Earned Value (EV).
4. Obtain Actual Cost (AC).
5. Calculate Schedule Variance (SV).
6. Calculate Cost Variance (CV).
7. Compile the results.
Before you get started, the project manager must choose appropriate project “status points” at
which time this calculation is performed.  Weekly status points work well for most projects,
followed by a status meeting where the results are shared with the project team.   Whatever
system you use make sure it is adhered to rigorously.

Determine Percent Complete

To start the process, the percentage complete of each task needs to be determined.  Whether
you get the number from the project team or determine it yourself, each task in the project needs
to be assigned a percent complete.

It is often advantageous to base it from some sort of repetitive metric, like the number of
drawings complete, or number of piles driven.

Determine Planned Value (PV)

Planned Value, also known as Budgeted Cost of Work Scheduled (BCWS), is defined as the
amount of the task that is supposed to have been completed.  It is in monetary terms as a portion
of the task budget.  For example,

 The task budget is $5,000,

 The task start date is January 1, and
 The task finish date is January 10.
If it’s January 6 today, the task is supposed to be 60% complete.  PV = $5,000 x 60% = $3,000.

Determine Earned Value (EV)

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Earned Value, also known as Budgeted Cost of Work Performed (BCWP), is the amount of
the task that is actually complete.  It is, again, in monetary terms as a portion of the task budget. 
For example,

 The task budget is $5,000, (same as above)

 The task start date is January 1, and (same as above)
 The task finish date is January 10.  (same as above)
Let’s say the actual percent complete of the task (step 1) is 40%.  EV = $5,000 x 40% = $2,000.

Obtain Actual Cost (AC)

The Actual Cost, also known as Actual Cost of Work Performed (ACWP), as you might
guess, is the actual cost of the work.  Generally employee hours need to be converted into a
cost, and all project costs need to be added up, such as the following items:

 Labor
 Materials
 Equipment
 Fixed cost items, like subcontractors
Since most projects have these well defined via accounting or project management software, I
will not go into great detail here.  For the purposes of the next section, let’s say the actual cost of
the example task is $1,500.

Calculate Schedule Variance (SV)

The Schedule Variance is the first earned value metric that is calculated.  It represents the
schedule status of the project.

SV = EV – PV

In our above example the schedule variance is:  SV = $2,000 – $3,000 = -$1,000.

A negative schedule variance means the task is behind schedule.  A positive schedule variance
means it is ahead of schedule.  The amount can be compared to worker charge out rates or
similar metrics to get an idea of how difficult it would be to recover.

Calculate Cost Variance (CV)

The Cost Variance represents the cost status of the project.

CV = EV – AC

In our above example the cost variance is:  CV = $2,000 – $1,500 = $500.

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A negative cost variance means the task is over budget.  A positive cost variance means it is
under budget.

Compile the Results

Once the individual task SV’s and CV’s have been calculated, they need to be added up into
overall project variances.  This represents the total variance of the project and can be reported to
management, clients, and stakeholders.

Other Project Status Indicators

Although the SV and CV are the minimum requirement and work well for small projects, there are
other variables that are derived from them which you might want to calculate:

 Schedule Performance Index (SPI):  The schedule variance expressed in

percentage terms, for example, SPI = 1.3 means the project 30% ahead of
schedule.
SPI = EV / PV

 Cost Performance Index (CPI): The cost variance expressed in percentage terms,

for example, CPI = 1.2 means the project is 20% under budget.
CPI = EV / AC

 Estimate at Completion (EAC):  The expected budget at the end of the project
given the variances that have already taken place.
EAC = AC + BAC – EV

 Estimate to Complete (ETC):  The expected cost to finish the rest of the project.
ETC = EAC – AC

 To Complete Performance Index (TCPI):  The required CPI necessary to finish the

project right on budget.  For example, TCPI = 1.25 means you need to find 25%
efficiencies to finish on budget.
TCPI = (BAC – EV) / (BAC – AC)

Interpreting the Results

The earned value method is a fantastic way to get an early warning signal of project distress.  
This is because it gives you up to the minute results.  The only restriction is up to date
timesheets and expense reports from your project team.  But you can calculate the schedule and
cost status to the exact minute your input data is valid.  I’ve seen many people track projects on
spreadsheets or complex charts they hang on the wall, and I commend them for the effort.  But it
really only takes a quick earned value calculation to find out if (and how far) the project is ahead

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or behind right up to the point of analysis, and no other method comes close to providing that
critical early warning signal.

If SV is negative, you are behind schedule.  If the CV is negative, you are over budget.  With
these two metrics, negative is bad and positive is good.

If SPI is below 1, you are behind schedule.  If CPI is below 1, you are over budget.  With these
two metrics, less than 1.0 is bad and greater than 1.0 is good.

In our example the schedule variance was -$1,000 and the cost variance was $500.  This means
that the project is behind schedule, but it is being performed efficiently and the tasks that were
completed were under budget.  Check out our completely worked earned value example.

Step 5: Project Closing

Project closure is one of the most visible aspects of a project to senior managers and executives,
yet it is also the phase that is most often skipped.  I realize that project budgets are often used up
(or seriously stretched) in the final phases, but the visibility with clients, bosses, executives, and
contractors is invaluable.

Closing the project is the fifth (and last) process group within the PMBOK.  As such, it contains
the knowledge areas that are involved with closing well.

Phase Document

Closing
 Project Closure Report
Here is a list of items that most project have to deal with in order to finish well:

 Project Closure Report:  This report is specified by the PMBOK.  It includes final

budget and schedule information, final scope statement, discussion of any scope
changes, and lessons learned for future projects.
 Formal Closure:  The contract with the client must be closed and a completion
certificate issued.
 Procurements:  Most sub-contracts will require a completion certificate to give
assurances that work under the contract has been completed.
 Final Details:  Most projects must organize the project data in a format that can be
referenced in the future, i.e. As-built plans, project document archives, and the like.
 Liabilities:  Warranties, insurance coverage, and bonds must be put in place as
needed depending on the project.
 Release of Resources:  All project resources, such as people, equipment, and
tools, must be formally released to their respective organizations.

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All of these items should be scaled to the project size.  For example, a $4,000 environmental
study might contain a memo which includes the final budget number and actual completion date,
together with quick write-up of how the project went and any issues encountered or lessons
learned.  Thus, if someone wanted to see how the project went, years down the road, the
important information is there, even for the smallest of projects.  As the size of the project
increases, make the project closure phase bigger as appropriate.

I hope this overview of the science of project management will help you in your project
management career.  It is only when you apply the science that the art form will start to grow and
blossom, and after a while it will become effortless.  Good luck in your project management
career!

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