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Engineer As Project Manager
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Project Management

Project Management

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Engineer As Project Manager Presentation Transcript

  • 1. Project Management Fundamentals Wali Memon
  • 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. 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. A ProjectWhen a task... Has a defined objective Has a deadline Requires integration of knowledge and experience from various organizations
  • 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. 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. 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. 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. Peanuts9 Wali Memon 6/1/2006
  • 10. What is Project Success?
  • 11. Factors in Project Success Project Management Philosophy Project Management Role and Responsibility Project Management Principles and Practices11 Wali Memon 6/1/2006
  • 12. Project Management Philosophy The “Golden Rule” of Project Management is three words: Plan Organize Control 12 Wali Memon 6/1/2006
  • 13. Project Management Roles andResponsibilities Project Execution Maintain Customer Relations Create a Positive Environment 13 Wali Memon 6/1/2006
  • 14. Project Execution Plan Project Execution Strategy Project Management Quality Safety Risk Management Design/Develop/Program Implementation Documentation Training
  • 15. Customer RelationsDevelopCommunicationEnsure TimelyParticipationInclude the Customeron the Project TeamDevelop Trust andConfidence
  • 16. Create a Positive Environment __________ Effectively __________ Member of the Team Utilize _______ _______ Activities __________ Success16 Wali Memon 6/1/2006
  • 17. Maintain a safe working environment Safety17 Wali Memon 6/1/2006
  • 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. 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. 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. Alignment Process
  • 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. The Four Cornerstonesof Project Management Cost Schedule Scope Quality
  • 24. Cornerstones of Project Management Cost ScheduleScope Quality
  • 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. Cost Influence Relative Time
  • 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. The WBS Drawings Estimate • Facility Bill • Services of WBS Element/ Materials Work Package Schedule Cost Contracts Reports28 Wali Memon 6/1/2006
  • 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. 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. Creeping scopeThe effect of “creeping scope” isa major cause of cost overruns $
  • 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. The Four Commandmentsof Good Project Scope Written Well defined Clearly understood Achievable33 Wali Memon 6/1/2006
  • 34. Cornerstones of Project ManagementCost ScheduleScope Quality
  • 35. Aspects of Cost Estimate Basis for Control Cost Control Application of control procedures to follow financial progress35 Wali Memon 6/1/2006
  • 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. Elements of Cost Control Establish the baseline (estimate) Measure variation from baseline Take corrective action37 Wali Memon 6/1/2006
  • 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. Project Control Project Day 1 -------------- To do list: Kick off meeting Project schedule
  • 40. Integration of Cost and Time
  • 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. 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. 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. 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. Contingency - Plan for Change
  • 46. Cornerstones ofProject Management Cost Schedule Scope Quality
  • 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. Front End Schedule A way to get the project started right Design Program Install / Test System Turnover48 Wali Memon 6/1/2006
  • 49. Basis for Project Schedule Project objectives Project scope Project milestones Project estimate (budget) Resource availability49 Wali Memon 6/1/2006
  • 50. The Critical Path Identifies project priorities Shows activity relationships Enables schedule analysis Reflects project strategy Promotes teamwork50 Wali Memon 6/1/2006
  • 51. Basic Network Diagramming
  • 52. Expanded Network Diagramming
  • 53. The Bar Chart
  • 54. The Gantt Chart
  • 55. Project Schedule - Tools55 Wali Memon 6/1/2006 Microsoft Project
  • 56. Project Schedule - Tools56 Wali Memon 6/1/2006 www.primavera.com
  • 57. Five Phases of Project Management57 Wali Memon 6/1/2006
  • 58. Cornerstones of Project ManagementCost ScheduleScope Quality
  • 59. Total Project Quality Management Quality Assurance Total Project Quality Design Quality Control Basis Management Continuous Improvement59 Wali Memon 6/1/2006
  • 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. 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. Cost of Quality62 Wali Memon 6/1/2006
  • 63. Risk Management63 Wali Memon 6/1/2006
  • 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. Sources of Risk Technical Financial Socio-Economic Contractual65 Wali Memon 6/1/2006
  • 66. Risk Management Process Identify Risk Analyze Risk Respond to Risk Document Risk66 Wali Memon 6/1/2006
  • 67. Sources of Help to Identify Risk Site investigations Contract documents Schedule Team brainstorming Body of experience67 Wali Memon 6/1/2006
  • 68. Risk Control Methods Avoid Reduce Share Insure Accept with contingency without contingency Contain68 Wali Memon 6/1/2006
  • 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. 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. Project Close-out
  • 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. Pyramid Cartoon73 Wali Memon 6/1/2006
  • 74. Successful Project Management Plan the Work… Work the Plan74 Wali Memon 6/1/2006
  • 75. Successful Project Completion75 Wali Memon 6/1/2006
  • 76. Questions76 Wali Memon 6/1/2006