Engineering Project Management - Vocational Training …ace.vtc.edu.hk/rmit/eeet2302/engineering...

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Engineering Project

Management

Dr. Heiko Rudolph

Engineering Project

Management

What is Project Management?

Project Management Process

Project Management Knowledge Areas

Project Management Methodologies

Project Management Examples

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What is Project

Management?

A Project is a temporary endeavor

- with a defined beginning and end (usually time-constrained, and

often constrained by funding or deliverables)

- undertaken to meet unique goals and objectives

- typically to bring about beneficial change or added value1

Project Management (PM) is “the application of

knowledge, skills, tools and techniques to project

activities to meet project requirements”2

What is Project

Management?• 2570 BC: The Pharaohs built the Great Pyramids of Giza

and today archaeologists still argue about how they

achieved this feat. Ancient records show there were

managers for each of the four faces of the Great Pyramid,

responsible for overseeing their completion.

There was some degree of planning,

execution and control involved in managing this project.

http://www.projectsmart.co.uk/brief-history-of-project-management.html

Brief History

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Have you seen this

before?

What is Project

Management?

• Henry Gantt is one of the forefathers of project management. His Gantt chart was a radical idea and an innovation of worldwide importance in the 1920s. Gantt charts are still in use today.

• In 1956, early practitioners of project management and the associated specialities of planning and scheduling, cost estimating, cost and schedule control formed the American Association of Cost Engineers (AACE, now AACE International).

• Other PM methods and tools came afterwards.

Brief History

http://www.projectsmart.co.uk/brief-history-of-project-management.html

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What is Project

Management?

What happens without PM?

• No Status Reporting

• No Project Schedule

• No Budget Management

• No Formal Meetings/Communication

Project Management Process http://asky.co.jp/service-pm.html

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Project Management

Process

http://en.wikipedia.org/wiki/Project_management

PM Process

Initiating

Identify Project

Alternatives

Select Project

Identify Project Sponsor

Appoint Project

Manager

Charter and Announce

Project

Select and Brief

Project Planning

Team

http://home.comcast.net/~projectmgmt/initiating.htm

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PM Process

Planning

ScopeWork-

breakdown Structure

Activity Definition

Activity Sequencing

Duration Estimation

Cost Estimating

Schedule Development

Core planning

processes

http://home.comcast.net/~projectmgmt/initiating.htm

PM Process

Planning

Work Breakdown

Structures (WBS)• Describes the scope of work

in manageable pieces

• 100% rule

• Usually shows planned outcomes, not activities

• Project WBS

• Contract WBS

• Financial WBS

• Organisational Breakdown Structure

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Its funny, but what does it

tell us ?

There is a real lesson. Hint: projects are subject to …… what ?

PM Process

Executing

http://www.itplanning.org.vt.edu/pm/processflow.html

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PM ProcessMonitoring &

Controlling


PM ProcessMonitoring &

Controlling


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Project Management

Knowledge Areas

Project Management

Intergration

Scope

Time

Cost

QualityHuman

Resource

Communications

Risk

Procurement

Information Technology Project Management, Sixth Edition, 2010

Project Management

Knowledge AreasIntergration Management

Project selection methods Change requests

PM methodologies Change control boards

Stakeholder analyses Project review meetings

Project charters PM software

Project management plans Lessons-learned reports


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Project Management

Knowledge AreasTime

Management

Scope statements Work breakdown structures

Mind maps Statements of work

Requirements analyses Scope management plans

Scope verification techniques Scope change controls


Project Management

Knowledge AreasScope

Management

Gantt charts Project network diagrams

Critical-path analyses Crashing

Fast-tracking Schedule performance

measurements


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Project Management

Knowledge AreasCost

Management

Net present value Return on investment

Payback analyses Earned value management

Project portfolio

management

Cost estimates

Cost management plans Cost baselines


Project Management

Knowledge AreasQuality

Management

Quality metrics Checklists

Quality control charts Pareto diagrams

Fishbone diagrams Maturity models

Statistical models


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Project Management

Knowledge Areas

Human Resource

Management

Motivation techniques Empathic listening

Responsibility assignment

matrices

Project organizational charts,

Resource histograms Team building exercises


Project Management

Knowledge AreasCommunications

Management

Communications

management plans

Kickoff meetings

Conflict management Communications media

selection

Status and progress reports Virtual communications

Templates Project web sites


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Project Management

Knowledge Areas

Risk Management

Risk management plans Risk registers

Probability/impact matrices Risk rankings.


Project Management

Knowledge Areas


Procurement Management

Make-or-buy analyses Contracts

Request for proposals or

quotes

Source selections

Supplier evaluation matrices

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PM Methodologies

Why use PM Methodologies?

• Gives a clear process for managing

projects (what has to be completed to deliver

your project, how it should be done, in which

order and by when.)

• Reduces the risk of failure if used correctly

PM Methodologies• SDLC

• PRINCE2

• Agile

• RUP

• Waterfall

• etc…

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PM MethodologiesSDLC (System

Development Lifecycles)

• Most IT projects use an SDLC that

defines phases and specific

activities within a typical project.

• SDLCs reflect different approaches

to completing the product

deliverables.

http://www.klr.com/articles/Articles_Methodology_selecting_right_pm_methodology.pdf

http://en.wikipedia.org/wiki/Systems_development_life-cycle

PM MethodologiesSDLC (System Development Lifecycles)

Strengths• Controlled access to production source, production

environment, production documentation

• Monitor large projects with detailed steps

• Relevant software and system documentation

• Standardized processes

• Repeatable processes

• Evaluate costs and completion targets.

• Ease of maintenance


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PM Methodologies

SDLC (System Development Lifecycles)

Weaknesses

• Increased development time.

• Increased development cost.

• Systems must be defined up front.

• Rigidity.

• Hard to estimate costs, project overruns.

• User input is sometimes limited.


PM MethodologiesPRINCE2 (PRojects IN Controlled Environments 2)

- has been adopted as a standard IT project management methodology in nongovernment organizations

throughout the world.

- still most common in the UK and Europe

http://www.klr.com/articles/Articles_Methodology_selecting_right_pm_methodology.pdf

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PM Methodologies

PRINCE2

Strength• consistent approach, focus on business justification

• greater control on the plan by regular reviews of project

progress

• stakeholders' engagement before it’s too late

• continuous improvement though sharing lessons learned

detailed competencies as per the role being played in the

project

http://www.brighthubpm.com/methods-strategies/62040-the-prince2-project-management-methodology/

PM MethodologiesPRINCE2

Weaknesses• Provides no explicit treatment of requirements analysis.

It is an implementation methodology, which can lead to

projects being adopted on false premises, and thereby

inevitably failing.

• If not tailored to the needs of the project properly,

PRINCE2 can be far too heavy duty an approach for

small projects, because it will generate too much work.

• Not very agile

http://www.projectmanagement.net.au/prince2_weaknesses

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PM MethodologiesAgile

• Agile methodologies arose from the need to

develop software applications that could

accommodate the fast-paced evolution of the

Internet.

• Allows you to see each feature in a working

application much sooner than other methods.

• Estimating and budgeting projects in Agile is

easy and is driven by the number of iterations

and weeks the project will require.

http://www.solutionstream.com/application-development/project-management/


Strength

• Agile is more bottom-up than top-down as a matter of doctrine

• Respects the urgency and importance of priorities conveyed by the

customer/user, most prominently by incremental delivery and flexible

sequencing

• Agile respects the power of emergence and iteration to drive innovation,

provided the customer buys-in

• Has the potential to more effectively align business planning-and-execute

cycles with project cycles.

http://www.johngoodpasture.com/2010/08/10-agile-strengths.html

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Weaknesses• Minimize forecasting

• Has difficulty scaling for large projects and large

organizations.

• Weak on architectural planning

• Has limited project planning, estimating and tracking.

• requires more re-work

• Challenges making contractual commitments

• Increases potential threats to business continuity and

knowledge transfer

• Lacks the attention to outside integration

http://www.cedarpointconsulting.com/deliver/articles/before-making-the-leap-to-agile

PM MethodologiesRUP (Rational Unified Process)

• RUP is an iterative and adaptive software development

framework which is promoted by the Rational Software

Company which is now owned by IBM.

• RUP methodology is based around a specific team skillset,

timescales and some key document models. Software

organizations will customize this framework as per their needs

to produce high quality software to meet the stipulated project

budget and project plan.

• RUP methodology unifies the team which will include

members from the six disciplines of software engineering.

http://www.my-project-management-expert.com/rup-methodology.html

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http://www.projects.staffs.ac.uk/suniwe/project/projectapproach.html


Strength• Iterative-incremental, well-documented process

• Based on functional, behavioural, and structural modeling of the problem domain

and the system the problem domain and the system

• Traceability supported through use cases

• Seamlessness (though with hiccups, e.g. transforming use cases to sequence

diagrams)

• Architecture-centric centric process (which necessitates early process (which

necessitates early specification of an architectural blueprint)

• Customizability addressed

• Risk based development, aimed at mitigating the risks before undertaking the tasks

• Support for structural behavioural and functional modeling at all levels (problem

domain to objects; logical to physical)

http://sina.sharif.ac.ir/~ramsin/index_files/sdmlecture6.pdf

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PM Methodologies

RUP (Rational Unified Process)

Weaknesses

• Very complex process

• The process is confusing to those involved. The

iterative-incremental nature of the process further

complicates the issue.

• Although advertised as customizable, configuring the

process is a formidable task in itself.

• Prohibilitive number of models

http://sina.sharif.ac.ir/~ramsin/index_files/sdmlecture6.pdf

PM Methodologies

Waterfall

The waterfall model is a sequential

design process, often used in software

development processes, in which

progress is seen as flowing steadily

downwards (like a waterfall).

http://en.wikipedia.org/wiki/Waterfall_model

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PM Methodologies

WaterfallStrength

• The waterfall model strengthen the completion of each phase before continue

to the next phase. This will simplify the management to the software and will

reduce the costly iterations among phases.

• In each phrase, this model will provide quality gates. The quality gate is a

checkpoint to determine the quality of each phase. The next phase will not

proceed unless quality of each phase is achieved. By doing this, the finished

product will have a better quality.

• This model is also simple and easy to follow.

• Lower problems risk for well-understood system by using familiar

technology.

http://myyee.tripod.com/cs457/waterfall.htm

PM MethodologiesWaterfallWeakness

• In each phrase, the programmers must follow the freezing requirements in

the earlier phrase.

• Due to the freezing requirements, this waterfall model does not allow

programmers to make any changes for previous phrases.

• The waterfall model has become a little outdated but it is still widely used.

• This model emphasizes more on products rather than processes.

• This model also does not have feedback loops.

• Higher problems risk for new system. The specifications and design

problems might not suitable for a new system.

• Everything may need to redo if something wrong found in the middle of the

phrases.

• Complexity of software increases because waterfall model does not allow

backtracking.


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PM MethodologiesWaterfall• It is suitable for well-understood system so that the finished product will

work perfectly.

• It is also suitable for short-term software program because mostly probably

the program has to redo if the requirements and specifications do not match

the new system.

• It is suitable for simple project. The reason is that the waterfall model does

not allow backtracking which causes the complexity of the program increase

from phrase to phrase.

• It is not suitable for long-term software.

• It is not suitable for complex project because the complexity increases from

phrase to phrase. If something wrong in the middle, the chance of tracing the

mistake is very low and the chance to redo is high.

• It is not suitable for clients who always change their requirements. It will not

move to next phrase unless the clients have confirmed the requirements and

specifications.


Ap

pro

pri

ate

Inap

pro

pri

ate

PM MethodologiesSelect the right methodology

Carefully analyze the following objectives:

• The overall organizational strategy and how

competitive the organization is

• The project scope to be managed and the size of

the project team

• The criticality of the project for the organization

• The flexibility of the project management

methodology for customization as per the

organization’s needs

http://www.my-project-management-expert.com/project-management-methodologies.html

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PM Tools

Four commonly used tools in project planning and project management

Brainstorming

Fishbone Diagrams

Critical Path Analysis Flow Diagrams

Gantt Charts

http://www.businessballs.com/project.htm#project-management-tools

PM ToolsBrainstorming

• Brainstorming is usually the first crucial creative stage of the

project management and project planning process.

• Unlike most project management skills and methods, the first

stages of the brainstorming process is ideally a free-thinking

and random technique. Consequently it can be overlooked or

under-utilized because it not a natural approach for many

people whose mains strengths are in systems and processes.

Consequently this stage of the project planning process can

benefit from being facilitated by a team member able to

manage such a session, specifically to help very organised

people to think randomly and creatively.


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PM ToolsFishbone Diagrams

• also called 'cause and effect diagrams' and Ishikawa

diagrams.

• are chiefly used in quality management fault-detection,

and in business process improvement, especially in

manufacturing and production, but the model is also very

useful in project management planning and task

management generally.

• useful for early planning, notably when gathering and

organising factors, for example during brainstorming.


PM ToolsFishbone Diagrams• A fishbone diagram has a central

spine running left to right, around which is built a map of factors which contribute to the final result (or problem).

• For each project the main categories of factors are identified and shown as the main 'bones' leading to the spine.

• Into each category can be drawn 'primary' elements or factors (shown as P in the diagram), and into these can be drawn secondary elements or factors (shown as S). This is done for every category, and can be extended to third or fourth level factors if necessary.


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PM ToolsProject Critical Path Analysis (Flow Diagrams or Charts)

• A commonly used tool within Critical Path Analysis is PERT (Program/Programme/Project Evaluation and Review Technique

• PERT is a specialised method for identifying related and interdependent activities and events, especially where a big project may contain hundreds or thousands of connected elements.

• PERT analysis commonly feeds into Critical Path Analysis and to other broader project management systems


PM ToolsProject Critical Path Analysis

PERT network chart for a seven-month project with five milestones (10

through 50) and six activities (A through F)

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PM ToolsGANTT Charts

• GANTT Charts are extremely useful project management tools.

• excellent models for scheduling and for budgeting, and for reporting and presenting and communicating project plans and progress easily and quickly, but as a rule Gantt Charts are not as good as a Critical Path Analysis Flow Diagram for identifying and showing interdependent factors, or for 'mapping' a plan from and/or into all of its detailed causal or contributing elements.

• You can construct a Gantt Chart using MSExcel or a similar spreadsheet.

PM ToolsGANTT Charts

http://en.wikipedia.org/wiki/Gantt_chart

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B F CG

Project brainstorming and initial concepts,

ideas, structures, aims, etc*** **

Gathering and identifying all elements,

especially causal and hidden factors* *** **

Scheduling and timescales ** ***

Identifying and sequencing parallel and

interdependent activities and stages* *** *

Financials - costings, budgets, revenues,

profits, variances, etc* * ** ***

Monitoring, forecasting, reporting * ** ***

Troubleshooting, problem identification,

diagnosis and solutions** *** ** *

'Snapshot' or 'map' overview - non-sequential,

non-scheduled** ***

Format for communications, presentations,

updates, progress reports, etc* * ***

*** - main tool

** - optional/secondary tool

* - sometimes useful

B = Brainstorming

F = Fishbone Diagram

C = Critical Path Analysis

G = Gantt Chart

Matrix

compares

the four

PM tools

http://www.businessballs.com/project.htm

Successful PM examples

Project: Refurbishing Heathrow Airport

Terminal 1

�Human Resources Management

�Cost and Procurement Management

�Scope Management

�Communication Management

�Risk Management

Project Management Institute

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Project: Refurbishing Heathrow Airport

Terminal 1

Human Resources Management

The People: There were 11 top-tier

suppliers who reported directly to the

project manager, and dozens more who

subsequently reported in to them, overall

involving a very large number of workers

Communication and Time management

were also challenges


Successful PM examplesProject: Refurbishing Heathrow

Airport Terminal 1

Human Resources Management

The Planning: If one contractor was late

in finishing levelling the floor, this could

delay the contractor that was scheduled to

install the furniture, causing a larger

knock-on effect throughout the project.


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Project: Refurbishing Heathrow Airport Terminal 1

Cost and Procurement Management

Budget changes: the project team was faced with an almost

insurmountable task of finding an alternative solution that was

acceptable to the various stakeholders and could also be

procured and installed in less than four weeks.



Project: Refurbishing Heathrow Airport Terminal 1

Scope Management

Structural Challenges: The team had to repair damaged floor in the

terminal that was left when the building was initially constructed 40 years

earlier. Mending the floor when other work was taking place

simultaneously in the area was a challenge, especially this added an extra

21 weeks to the project.

The project team met with the main contractor, terminal mainternance and

other contractors to discuss the issue of re-flooring this area and to develop

a joint phasing plan to sequence the work and what areas would be

protected for site storage of materials and tools. Despite the prospect of a

21-week delay, the team still delivered on time.


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Successful PM examplesProject: Refurbishing Heathrow Airport Terminal 1

Results: Heathrow Airport Terminal 1 was completed on time in September

2008. The project involved more than 500,000 working hours and kept

within its £57.6 million budget.

• The project delivered on time and within budget

• The project had a good health and safety record with no reported incidents,

despite dealing with serious hazards like asbestos.

• There was effective team work between the numerous contractors,

suppliers, stakeholders and various support functions.

• All challenges were successfully met by the project team including £6.3m

of unexpected out-of-scope work that was engineered into the final

solution without an increase to the approved project budget.



Baldwin Water Works:

Reconstructing Cleverland’s water system

The project faced many challenges, including the need

to conduct construction while continuing to provide

water to the city, and working around the many

historical landmarks within the system.

Project management provided the tools and

benchmarks to ensure on-budget and on-time delivery,

making this reconstruction project successful.


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Successful PM examplesBaldwin Water Works:

Reconstructing Cleverland’s water system

�project completed US$2,884,075 (10.7 percent)

below awarded contract amount;

�reached all milestones on or ahead of schedule;

�repairs on all filters completed eight months early

due to communication and scheduling of specific

deadlines throughout project; and

�received multiple awards, including American Public

Works 2004 Project of the Year.



World’s Largest Gas Separation Plant Finished On

Time and Under Budget

In September 2007, PTT Public Company commissioned

Samsung Engineering Co to build the PTT Gas Separation Plant

#6 (GSP-6) in Rayong, Thailand.

The plant, which was valued at US$630 million, powers

Thailand’s growing petrochemical, commercial, domestic and

transport markets. The plant recovers ethane, propane, and other

components from natural gas.

Samsung Engineering’s project team handled the project

management, engineering, procurement, construction and

commissioning work on a lump-sum turn-key basis.


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World’s Largest Gas Separation Plant Finished On

Time and Under Budget

Samsung Engineering cited project risk management, project

communications management and project human resources

management as instrumental in the successful delivery of this

project.

The GSP-6 project was successfully completed on 25 January

2011, on time and under budget, after 19,304,700 accident-free

hours. The plant is now the largest gas separation plant in the

world in terms of the number of production through-

fractionation units.


Failure PM examples

Denver Airport Baggage System

In 1993, The City and County of Denver have built a massive

new airport, the New Denver International Airport.

A mechanized baggage system is at the heart of the New Denver

Airport, as for all major new airports. This was to be something

unique: the "Integrated Automated Baggage Handling System",

originally designed to distribute all baggage – including

transfers -- automatically between check-in, the aircraft and

pick-up on arrival.


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Failure PM examples

Denver Airport Baggage System

Massive problems plagued this automated baggage systems.

Consequently, the New Denver Airport did not open in October

1993 as scheduled but delayed around 16 months.

This delay costs the owners a lot (add approximately $560M to

the cost of the airport).


Failure PM examplesDenver Airport Baggage System

Basic mode of failure:

� In its simplest form, the Airport project failed because those

making key decision underestimated the complexity involved.

�Failure to anticipate the number of carts correctly would result

in delays in picking up bags that would undermine the

system’s performance goals.

�Failure to recognise the complexity and the risk involved

contributed to the project being initiated too late.

�The underestimation of complexity led to a corresponding

underestimation of the effort involved.


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Key decisions led to disaster:

� Strategy change: failure to link the airport’s overall strategy (the goal of

having one of the world’s most efficient airports) with the sub-strategy of

how to build the baggage system.

� The decision to proceed: The airport PM team and other teams decided to

proceed with the full scale project despite clear indications that there was

insufficient time left for the project to be completed successfully.

� Schedule, scope and budget commitments

� Acceptance of change requests

� Design of the physical building structure

� Risk management failures

� Leadership Change

� Architectural and design issues



Denver suffers from:

1. The underestimation of complexity

2. A lack of planning resulting in subsequent changes in strategy

3. Excessive schedule pressure

4. Lack of due diligence

5. Making firm commitments in the face of massive risks and uncertainty

6. Poor stakeholder management

7. Communications breakdowns

8. People working in silos

9. Poor design

10. Failure to perform risk management

11. Failure to understand the implication change requests might have

12. Lack of management oversight


Engineering Project Management - Vocational Training …ace.vtc.edu.hk/rmit/eeet2302/engineering...

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Transcript of Engineering Project Management - Vocational Training …ace.vtc.edu.hk/rmit/eeet2302/engineering...