Engineer As Project Manager


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Engineer As Project Manager

  1. 1. Project Management Fundamentals Wali Memon
  2. 2. Benefits of Sound Project Management Less overall project cost Less strain on working capital Effective use of resources More timely project completion Higher quality of the final product 2 Wali Memon 6/1/2006
  3. 3. Project Management Overview What is a project? What is project management? What is project success? What factors determine project success?3 Wali Memon 6/1/2006
  4. 4. A ProjectWhen a task... Has a defined objective Has a deadline Requires integration of knowledge and experience from various organizations
  5. 5. PM PM PM Project Management is: PM PM PM PM PM PM PM PM PM PM PM PM5 PM PM Wali Memon 6/1/2006
  6. 6. PM PM PM Project Management is: PM Causing a Planned PM Undertaking to Happen PM PM PM PM PM PM PM PM PM PM6 PM PM Wali Memon 6/1/2006
  7. 7. Project Management Complex and numerous activities Unique - a one time set of events Finite - a begin and end date Limited resources and budget Many people involved Sequenced activities End product or service must result7 Wali Memon 6/1/2006
  8. 8. Program Management Larger in scope than a project Made up of several projects Made up of a number of similar products Programs tend to be more permanent8 Wali Memon 6/1/2006
  9. 9. Peanuts9 Wali Memon 6/1/2006
  10. 10. What is Project Success?
  11. 11. Factors in Project Success Project Management Philosophy Project Management Role and Responsibility Project Management Principles and Practices11 Wali Memon 6/1/2006
  12. 12. Project Management Philosophy The “Golden Rule” of Project Management is three words: Plan Organize Control 12 Wali Memon 6/1/2006
  13. 13. Project Management Roles andResponsibilities Project Execution Maintain Customer Relations Create a Positive Environment 13 Wali Memon 6/1/2006
  14. 14. Project Execution Plan Project Execution Strategy Project Management Quality Safety Risk Management Design/Develop/Program Implementation Documentation Training
  15. 15. Customer RelationsDevelopCommunicationEnsure TimelyParticipationInclude the Customeron the Project TeamDevelop Trust andConfidence
  16. 16. Create a Positive Environment __________ Effectively __________ Member of the Team Utilize _______ _______ Activities __________ Success16 Wali Memon 6/1/2006
  17. 17. Maintain a safe working environment Safety17 Wali Memon 6/1/2006
  18. 18. Project Management Principles andPractices Define Project Objectives Develop Project Execution Plan Define Baselines for Control Manage Risk Close out Effectively 18 Wali Memon 6/1/2006
  19. 19. Define Project Objectives Expected deliverables Required resources (total installed cost) Required timing (opening date) Safety and Environmental Total Quality19 Wali Memon 6/1/2006
  20. 20. Define S.M.A.R.T. Project Objectives S pecific M easurable A ssignable R ealistic T ime related20 Wali Memon 6/1/2006
  21. 21. Alignment Process
  22. 22. Team Requirements Skills needed ? Individuals identified ? When are they needed ? Where are they ? Training needed ? Interpersonal compatibility ?22 Wali Memon 6/1/2006
  23. 23. The Four Cornerstonesof Project Management Cost Schedule Scope Quality
  24. 24. Cornerstones of Project Management Cost ScheduleScope Quality
  25. 25. Scope Poor scope definition is the major contributing factor to cost overruns in the engineering and construction industry. CAUTION25 Wali Memon 6/1/2006
  26. 26. Cost Influence Relative Time
  27. 27. Initial Scoping Effort Sets the baseline for cost and schedule Must involve the right people Must include implementation Identifies items not included Maximum influence on project cost Breaks project into manageable pieces27 Wali Memon 6/1/2006
  28. 28. The WBS Drawings Estimate • Facility Bill • Services of WBS Element/ Materials Work Package Schedule Cost Contracts Reports28 Wali Memon 6/1/2006
  29. 29. Successful Work Breakdown Status and completion is easily measured Definite beginning and end It is familiar with prior experience Manageable work assignments One continuous stream of work from start to finish29 Wali Memon 6/1/2006
  30. 30. Steps for constructing a WBS Divide the project into major objectives Partition objectives into activities Divide activities with missing characteristics into subactivities Repeat #3 until all subactivities have desired characteristics Lowest subactivities are the basis of work packages30 Wali Memon 6/1/2006
  31. 31. Creeping scopeThe effect of “creeping scope” isa major cause of cost overruns $
  32. 32. To manage creeping scope Keep scope documents current Freeze design after the estimate has been approved Allow only those changes that are justified by benefit Use an effective change management procedure32 Wali Memon 6/1/2006
  33. 33. The Four Commandmentsof Good Project Scope Written Well defined Clearly understood Achievable33 Wali Memon 6/1/2006
  34. 34. Cornerstones of Project ManagementCost ScheduleScope Quality
  35. 35. Aspects of Cost Estimate Basis for Control Cost Control Application of control procedures to follow financial progress35 Wali Memon 6/1/2006
  36. 36. Estimate Requirements Define project cost integrate scope, schedule, and resources Define estimate basis Identify potential risks Identify contingency/escalation Identify items not included36 Wali Memon 6/1/2006
  37. 37. Elements of Cost Control Establish the baseline (estimate) Measure variation from baseline Take corrective action37 Wali Memon 6/1/2006
  38. 38. Cost Control System Detailed project scope/work package Control estimate Chart of accounts Cost status report Forecasting process Change management procedure Cash flow forecast38 Wali Memon 6/1/2006
  39. 39. Project Control Project Day 1 -------------- To do list: Kick off meeting Project schedule
  40. 40. Integration of Cost and Time
  41. 41. Basic Elements of the Control System A project plan: Scope, schedule, estimates A monitoring system which measures performance against plan A reporting system which identifies deviations from the plan A system which communicates deviations to the right people Corrective actions Forecasting the project outcome41 Wali Memon 6/1/2006
  42. 42. Key Control Philosophies Define the baseline for control 1._______ 2. ________ 3. _______ 4. ________ Divide project into manageable pieces Remember: Ability to influence cost is maximum early in the project42 Wali Memon 6/1/2006
  43. 43. Key Control Philosophies (con’t) Define and manage risk/opportunity Integrate scope and estimated cost into schedule Make informed decisions Anticipate deviations/changes Adopt the “end product” approach Plan ahead from phase to phase43 Wali Memon 6/1/2006
  44. 44. Basic Project Control Steps Define the project scope Develop a project plan consistent with: project scope estimates (cost constraints) schedule (constraints resources available Report progress and compare with budget and forecast Control by taking corrective action44 Wali Memon 6/1/2006
  45. 45. Contingency - Plan for Change
  46. 46. Cornerstones ofProject Management Cost Schedule Scope Quality
  47. 47. Schedule Planning - Identification of the sequence of events necessary to complete the project Scheduling - Determination of timing and assembly of project activities to give overall completion time47 Wali Memon 6/1/2006
  48. 48. Front End Schedule A way to get the project started right Design Program Install / Test System Turnover48 Wali Memon 6/1/2006
  49. 49. Basis for Project Schedule Project objectives Project scope Project milestones Project estimate (budget) Resource availability49 Wali Memon 6/1/2006
  50. 50. The Critical Path Identifies project priorities Shows activity relationships Enables schedule analysis Reflects project strategy Promotes teamwork50 Wali Memon 6/1/2006
  51. 51. Basic Network Diagramming
  52. 52. Expanded Network Diagramming
  53. 53. The Bar Chart
  54. 54. The Gantt Chart
  55. 55. Project Schedule - Tools55 Wali Memon 6/1/2006 Microsoft Project
  56. 56. Project Schedule - Tools56 Wali Memon 6/1/2006
  57. 57. Five Phases of Project Management57 Wali Memon 6/1/2006
  58. 58. Cornerstones of Project ManagementCost ScheduleScope Quality
  59. 59. Total Project Quality Management Quality Assurance Total Project Quality Design Quality Control Basis Management Continuous Improvement59 Wali Memon 6/1/2006
  60. 60. Project Quality Improvement Develop a quality management plan early in the project Include representatives from all affected organizational units on the project team Initiate the project effectively through kick-off and alignment meetings Review performance and measure success60 Wali Memon 6/1/2006
  61. 61. Project Quality Improvement (con’t) Define scope and review periodically Limit scope changes formal change procedure require justification Complete more engineering up-front before defining cost and scheduling Obtain constructability, operability and maintainability input to design61 Wali Memon 6/1/2006
  62. 62. Cost of Quality62 Wali Memon 6/1/2006
  63. 63. Risk Management63 Wali Memon 6/1/2006
  64. 64. Manage Risk What is risk? Sources of risk Kinds of risk Risk Management Process Identify risks Define consequences Develop a mitigation plan Document64 Wali Memon 6/1/2006
  65. 65. Sources of Risk Technical Financial Socio-Economic Contractual65 Wali Memon 6/1/2006
  66. 66. Risk Management Process Identify Risk Analyze Risk Respond to Risk Document Risk66 Wali Memon 6/1/2006
  67. 67. Sources of Help to Identify Risk Site investigations Contract documents Schedule Team brainstorming Body of experience67 Wali Memon 6/1/2006
  68. 68. Risk Control Methods Avoid Reduce Share Insure Accept with contingency without contingency Contain68 Wali Memon 6/1/2006
  69. 69. Risk Containment Clearly define insurance responsibilities in contracts Use qualified personnel Document and communicate project strategy Define roles and responsibilities Prepare contingency plans for critical activities Use up-front team building69 Wali Memon 6/1/2006
  70. 70. Risk Containment (con’t) Use qualifies contractors and vendors Preconstruction work briefings (especially safety) Rehearse critical activities or use mock-ups Use strong project control systems Manage contingency70 Wali Memon 6/1/2006
  71. 71. Project Close-out
  72. 72. Project Closeout - Major Phases Obtain client acceptance Document the project Conduct the post implementation audit Issue the final report72 Wali Memon 6/1/2006
  73. 73. Pyramid Cartoon73 Wali Memon 6/1/2006
  74. 74. Successful Project Management Plan the Work… Work the Plan74 Wali Memon 6/1/2006
  75. 75. Successful Project Completion75 Wali Memon 6/1/2006
  76. 76. Questions76 Wali Memon 6/1/2006