SILLIMAN UNIVERSITY

Dumaguete City
COLLEGE OF ENGINEERING AND DESIGN

A big Welcome!

Professional
Regulation
Commission IIEE

REYNALDO G C. TAN, DM-HRM

Professional Electrical Engineer
Professional Mechanical Engineer
Emeritus Associate Professor 4 [email protected]

Part 1. INTRODUCTION TO OPERATIONS MANAGEMENT

Module 2. PROJECT MANAGEMENT
 ES 40R (2018) – Engineering Management

Part 1. INTRODUCTION TO OPERATIONS MANAGEMENT

Module 2: Project Management

RGCTAN
REYNALDO GERONIDES C. TAN, D.M.-H.R.M.
Professional Electrical Engineer
Professional Mechanical Engineer
Emeritus Associate Professor 4
General Manager

Resource Person
Good Day Professional

Project Management Regulation

Commission
IIEE

Challengers!
[email protected]
 ES 40R (2018) – Engineering Management

Part 1. INTRODUCTION TO OPERATIONS MANAGEMENT

Module 2: Project Management

Contents
1: INTRODUCTION

Learning Outcomes
What is Project Management?
The Project Life Cycle
 ES 40R (2018) – Engineering Management

Part 1. INTRODUCTION TO OPERATIONS MANAGEMENT

Module 2: Project Management

LEARNING OUTCOMES
After completing this course, each student should be able to --
1. Learn the science and art of organizing the components of the project.
2. Describe the behavioral aspects of projects in terms of project personnel and the project
manager.
3. Describe the nature and importance of a work breakdown structure in project management.
4. Give a general description of Program Evaluation Review Technique (PERT), Critical Path
Method (CPM) and Gantt Chart techniques.
5. Construct simple network diagrams.
6. List the kinds of information that a PERT or CPM analysis can provide.
7. Analyze networks with deterministic times.
8. Analyze networks with probabilistic times.
9. Determine activity “crushing” and solve typical problems.
10. Prepare his/her ability to make good decisions in the areas of project management and
allocate resources to ensure his/her effective execution.
11. Identify and gather the causes of project management problems in the country and offer
possible developments.
12. Learn how to handle project management globally of his/her country and abroad.
 ES 40R (2018) – Engineering Management

Part 1. INTRODUCTION TO OPERATIONS MANAGEMENT

Module 2: Project Management

What is PROJECT MANAGEMENT?

Project Management is the science (and art) of organizing the
components of a project, whether the project is development of a new
product, the launch of a new service, a marketing campaign, or a wedding.

Where we are?

[Measurement]

How can we
Where we
get on track
planned to be?
Again?

[Correction] [Evaluation]

“… A project isn't something that's part of normal business operations. It's typically created once, it's
temporary, and it's specific. As one expert notes, "It has a beginning and an end.”
A project consumes resources (whether people, cash, materials, or time), and it has funding limits . . .”
 ES 40R (2018) – Engineering Management

Part 1. INTRODUCTION TO OPERATIONS MANAGEMENT

Module 2: Project Management

What is PROJECT MANAGEMENT?

Project Management is not like most books. It has a unique, self-paced format that encourages
the students to become personally involved. Designed to be “read with a pencil,” there is an
abundance of exercises, activities, checklists, and assessments that invite participation.

Where we are?

[Measurement]

How can we
Where we
get on track
Again? planned to be?

[Correction] [Evaluation]

The objective of Project Management is to help the students become a better project managers.
 ES 40R (2018) – Engineering Management

Part 1. INTRODUCTION TO OPERATIONS MANAGEMENT

Module 2: Project Management

What is PROJECT MANAGEMENT?

Managers typically oversee a variety of operations. Some of
these involve routine, repetitive activities, but others involve non-
routine activities. Under the latter heading are projects: unique,
one–time operations designed to accomplish a set of objectives in
a limited time frame.

Other examples of projects include constructing a shopping

complex, launching a space shuttle, reengineering a business
process, merging two companies, putting on a play, and
designing and running a political campaign.

Examples of projects within business organizations include

designing new products or services, designing advertisement
campaigns, designing information systems, designing databases,
software development, and designing web pages.
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Part 1. INTRODUCTION TO OPERATIONS MANAGEMENT

Module 2: Project Management

What is PROJECT MANAGEMENT?

Projects may involve considerable cost. Some have a long time
horizon, and some involve a large number of activities that must be
carefully planned and coordinated.

Most are expected to be completed within time, cost, and

performance guidelines. To accomplish this, goals must be
established and priorities set.

Tasks must be identified and time estimates made. Resource

requirements also must be projected and budgets prepared.

Once under way, progress must be monitored to assure that project

goals and objectives will be achieved.
Performance
SET THE GOALS
 ES 40R (2018) – Engineering Management

Part 1. INTRODUCTION TO OPERATIONS MANAGEMENT

Module 2: Project Management

What is PROJECT MANAGEMENT?

The project approach enables an organization to focus
attention and concentrate efforts on accomplishing a narrow set
of objectives within a limited time and budget framework. This can
produce significant benefits compared with other approaches that
might be considered.

Even so, projects present managers with a host of problems that

differ in many respects from those encountered with more routine
activities.

The problems of planning and coordinating project

activities can be formidable for large projects, which typically
have hundred or even thousands of activities that must be
carefully planned and monitored if the project is to proceed Performance
according to schedule and at a reasonable cost.
SET THE GOALS
 ES 40R (2018) – Engineering Management

Part 1. INTRODUCTION TO OPERATIONS MANAGEMENT

Module 2: Project Management

THE PROJECT LIFE CYCLE

Each project moves through a predictable life

cycle of four phases with each phase calling for
different skills from the project manager.

The four phases of a project’s life cycle are:

1. Conceiving and defining the project

2. Planning the project
3. Implementing the plan
4. Completing and evaluating the project

Four Steps to Success

 ES 40R (2018) – Engineering Management

Part 1. INTRODUCTION TO OPERATIONS MANAGEMENT

Module 2: Project Management

THE PROJECT LIFE CYCLE

The period between the start and end of a project, is called the project life cycle.
The life cycle consists of four phases are illustrated in Figure 1.

Phase 1 Phase 2 Phase 3 Phase 4 INITIATE – Understand the requirements

Concept Development Execution Transfer Look at all the options available
Building plans
Activity Level, Cost

Sketches of canter layout

Defining Planning Implementing Completing Cost estimates
the Project the Project the Plan the Project
SPECIFY – Define how the project will be delivered Four Steps
to Success
When, by whom and at what cost
The project plan which will show all the items that have to
be installed and ready and by when
PRODUCE – The work is being done
Keep it on track
Installation of equipment
INITIATE SPECIFY PRODUCE CLOSE Staff and management training
CLOSE – Check that benefits have been achieved
Time Formally close project
Measure how center is operating for one month after it opens
Figure 1. Typical Activity Levels During the Phases of a Project’s Life
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Part 1. INTRODUCTION TO OPERATIONS MANAGEMENT

Module 2: Project Management

THE PROJECT LIFE CYCLE

You may feel a little uncertain as to what sort of items would be dealt with the Initiate stage
and which are part of the Specify stage.
In the example of the customer service center, Phase 1 Phase 2 Phase 3 Phase 4
where they are moving into an empty factory Concept Development Execution Transfer

Activity Level, Cost

unit, building plans are available from the estate
agent, but the local authority’s plan for the Defining Planning Implementing Completing
the Project the Project the Plan the Project
center are just ideas sketched out on pads of
paper.
All of this goes into the Initial stage. The detailed
layout plans for the center will be drawn up properly
as one of the activities in the Specify stage.

Every project is unique and likely to be different from INITIATE SPECIFY PRODUCE CLOSE
others previously tackled, bu what is important in all
projects is that everything about the project is known Time
before moving into the Produce stage.
Figure 1. Typical Activity Levels During the Phases of a Project’s Life
 ES 40R (2018) – Engineering Management

Part 1. INTRODUCTION TO OPERATIONS MANAGEMENT

Module 2: Project Management

THE PROJECT LIFE CYCLE

ADDING THE COST

Phase 1 Phase 2 Phase 3 Phase 4

Concept Development Execution Transfer

Activity Level, Cost

Defining Planning Implementing Completing
the Project the Project the Plan the Project

Referring to the graph of the project life

cycle, you will see that greatest cost of a
project occurs during the Produce stage.
INITIATE SPECIFY PRODUCE CLOSE
This is why it is important to get things right
in the first two stages, because the cost of Time
these is relatively low.
Figure 1. Typical Activity Levels During the Phases of a Project’s Life
 ES 40R (2018) – Engineering Management

Part 1. INTRODUCTION TO OPERATIONS MANAGEMENT

Module 2: Project Management

THE PROJECT LIFE CYCLE

ADDING THE COST

Here is an example of how the costumer Phase 1 Phase 2 Phase 3 Phase 4

service center project could end up costing Concept Development Execution Transfer
more, as a result of poor planning in the

Activity Level, Cost

Specify stage: Defining Planning Implementing Completing
the Project the Project the Plan the Project
-- Installation of the suspended floor takes three
weeks longer than planned.
-- The engineers can not start putting the cables
in until the floor is finished.
-- When the floor is finished, the engineers need
to work a lot of overtime to get the project
back on track. INITIATE SPECIFY PRODUCE CLOSE

-- The high costs of overtime payments was not Time

anticipated in the original budget.
Figure 1. Typical Activity Levels During the Phases of a Project’s Life
 ES 40R (2018) – Engineering Management

Part 1. INTRODUCTION TO OPERATIONS MANAGEMENT

Module 2: Project Management

THE PROJECT LIFE CYCLE

ADDING THE COST

Phase 1 Phase 2 Phase 3 Phase 4

Concept Development Execution Transfer

Activity Level, Cost

Defining Planning Implementing Completing
the Project the Project the Plan the Project
Spend time planning properly in
the Specify stage, and you
would not overspend in the
Produce stage.

INITIATE SPECIFY PRODUCE CLOSE

Time
Figure 1. Typical Activity Levels During the Phases of a Project’s Life
 ES 40R (2018) – Engineering Management

Part 1. INTRODUCTION TO OPERATIONS MANAGEMENT

Module 2: Project Management

THE PROJECT LIFE CYCLE

Four Steps
to Success

Time