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EngineeringProjectManagement
Lecturer:
DavidBreedlove1EME4983:ENGINEERINGPROJECTMANAGEMENTCourseObjective:
IntroducefundamentalconceptsinEngineeringProjectManagementYouwilllearnabout:WhatmakesagoodProjectManagerProjectManagementprocessandtools
HowtostartandmanageengineeringprojectsThecoursewillhelpyouto:
ManageprojectssuccessfullyAvoidcommonerrorsandpitfalls
Applythelatestthinkinginprogrammanagement
2COURSEELEMENTSWhoaretheplayerswhenwetalkaboutProjectManagementandwhataretheirroles.HistoricalBackground–HowdidwegethereandwhyisProjectManagementimportantinthe21stcenturyWhatarethefivephasesofProjectManagementandwhatarethetools/processestoachieveasuccessfulprojectTeamProject3CommunicationAsecondaryobjectiveistoimproveyourEnglishspeakingandreadingabilities.AllcoursematerialswillbeinEnglish.Thecoursewillprovideopportunities:
topracticeyourspokenEnglish,and
toformulateideasandquestionsinasecondlanguage.4COURSEGRADINGPOINTSTwoTests(15%ofgrade,75pointseach) 150pts
Nov7/Nov25Homework(5%ofgrade) 50ptsAttendance(5%ofgrade) 50ptsProjectReport(15%ofgrade) 150ptsFinalExam(60%ofgrade) 600ptsTotalCoursePoints 1000pts5LiteratureReferencesHaroldKerzner,ProjectManagement:ASytemsApproachtoPlanning,Scheduling,andControlling,11thedition,JohnWiley,2013(ISBN:978-1-118-02227-6).JamesP.Lewis,FundamentalsofProjectManagement,3rdedition,AMACOM,2007(ISBN:13978-0-8144-0879-7).RobertK.Wysocki,EffectiveProjectManagement,4thedition,WileyPublishing,2007(ISBN:13978-0470-04261-8).ClarkA.Campbell,TheOneProjectManager,JohnWiley,2007,(ISBN:13978-0-470-05237-2)AGuidetotheProjectManagementBodyofKnowledge,3rdedition,AmericanNationalStandard,2004,(ISBN:13978-1-930699-45-8).6LiteratureReferencesMitchellL.Springer,ProjectandProgramManagement,ACompetency-basedApproach,2ndedition,PurdueUniversityPress,2013,(ISBN:978-1-55753-652-5)MitchellL.Springer,AConsiseGuidetoProgramManagement,PurdueUniversityPress,2005,(ISBN:1-55753-376-8)HaroldR.Kerzner,ProjectManagementcaseStudies,4thedition,JohnWiley,2013,(ISBN978-1-118-02228-3)7MyBackgroundBachelorofScienceinElectricalEngineeringPurdueUniversityMastersofBusinessAdministrationStanfordUniversityLockheedMissileandSpaceCo.1970–1974FordMotorCompany1974–2006ProgramManager1986FordTaurus/SablecarsProgramDirectorfor1992Autolatina(VW/FordBrasil)smallcarsProgramDirectorfor1999FordF-SeriesSuperDutyTrucksProgramDirectorfor2002Fiesta/EcosportinBrasilLivedandworkedinBrazil2000-2012ProfessorLTU2013-present8HowtocontactmeEmaildbreedlov@dbreedlo@Office:D500Sendmeanemailortalktomeafterclasstomakeanappointment9OVERVIEWWhatisallthefussaboutanyway?Whyareyoutakingthiscourse?10OVERVIEW
WhatisProjectManagement?ProjectManagementistheplanning,organizing,directing,andcontrollingofcompanyresourcesforarelativelyshort-termobjectivethathasbeenestablishedtocompletespecificgoalsandobjectives.Furthermore,PMutilizesasystemapproachtomanagementbyhavingfunctionalpersonnelassignedtoaspecificproject.11OVERVIEWToday,wehaveaprofessionalorganizationforProgramManagers,PMI()279chaptersin207countriesPMIpublishesabookentitled,“ProjectManagementBodyofKnowledgeorPMBOK”whichisusedtocertifyprogrammanagers.PMIcertifiesProjectManagerProfessionals12OVERVIEW13713,000in2016OVERVIEWPMIestimates15.7millionprojectmanagementroleswillbeaddedgloballyby2020.Totalprojectmanagementrolesin2020isestimatedtobeover45million.Chinaisestimatedtoadd8.1million.WHYTHEGROWTH?14OVERVIEWProjectFailuresBetween2003to2012,onlyabout6%ofsoftwareprojectsmettheiroriginaltargets.2012McKinseyStudy–17%oflargeITprojectsgosobadly,theythreatenthesurvivalofthecompany;45%areoverbudgetand56%misstheirvalueobjectivesAsurveyof100largeglobalcompaniesindicated50%hadaprojectsfailinthelastyear.15OverviewProductDevelopmentexpertsestimate30%ofthecostofaprojectisspentonrework.Thismeansoneoutofeverythreeengineersassignedtoaprojectisbusyfixingwhattwootherengineersdid.Thissamewasteisfoundinconstruction,servicesandmanufacturing.In2001,theU.S.spent$140billiononcanceledoroverbudgetprojects.16OVERVIEWCostofProjectFailuresPoorqualitycantranslateintolowerbrandloyaltyandlostsales.Programslatetoobjectivegeneratecostsrelatedtoplantdowntime,lateresponsetocompetitiveactivity,lowerprofitmargins,delayinfutureprograms,andmore.Missedcostobjectivesresultinlowerprofitsorcancelationofotherbusinessopportunities.17OVERVIEWWhythegrowth?Executivesarelookingforgreatercontrolanduseofexistingresources.Therapidrateofchangeintechnologyandtheglobalmarketplacearestrainingtraditionalorganizations.18OVERVIEWWhatisaProject?Aprojectisatemporaryendeavorundertakentocreateauniqueproduct,serviceorresult.(PMBOK)Hasaspecificobjectivetobecompletedwithincertainspecifications.Hasdefinedstartandenddates.Hasfundinglimits.Consumeshumanandnon-humanresourcesIsmultifunctional(cutacrossseveralfunctions).19OVERVIEWProjectExamplesDevelopinganewproductorservice.Effectingachangeinstructure,staffingorstyleofanorganization.Designinganewtransportationvehicle.Developingoracquiringanewormodifiedinformationsystem.ConstructingabuildingorfacilityBuildingawatersystemforacommunityRunningacampaignforapoliticaloffice20EXAMPLESThreeGorgesDam–StartedDec.1994,completed2014.Cost:About$30billionShanghaiTower–StartedNov.2008,completedMay2015Cost:$1.5–2.4billionApplei-phone–Started2004,LaunchedJan.2007Cost:$150millionFordF150Truck–Started2009,LaunchedNov.2014Cost$1.5–2.0billion21ProjectManagementinvolvesFiveProcesses22PROJECTLIFECYCLEINITIALIZINGPLANNINGEXECUTINGCONTROLLINGCLOSINGOVERVIEWSuccessfulProjectManagementisdefinedashavingachievedtheprojectobjectives:WithintimeWithincostAtthedesiredperformancetechnologylevelWhileutilizingtheassignedresourceseffectivelyandefficientlyAcceptedbythecustomer23OVERVIEWBenefitsofProjectManagementIdentificationoffunctionalresponsibilitiestoensurethatallactivitiesareaccountedfor,regardlessofpersonnelturnover.Minimizingtheneedforcontinuousreporting.Identificationoftimelimitsforscheduling.Identificationofamethodologyfortrade-offanalysisMeasurementofaccomplishmentsagainstplans24OVERVIEWBenefitsofProjectManagementEarlyidentificationofproblemssothatcorrectiveactionmayfollowImprovedestimatingcapabilityforfutureplanningKnowingwhenobjectivescannotbemetorwillbeexceeded25OVERVIEWObstaclesProjectcomplexityCustomer’sspecialrequirementsandscopechangesOrganizationalrestructuringProjectrisksChangesintechnologyForwardplanningandpricing26OVERVIEW27WhyisaProjectManagementSystemNecessary?TheProjectManagermanagesthe“operationalislands”LABORSUPERVISORSMIDDLEMGMT.TOPMGMT.FUNCTIONALDEPARTMENTSOVERVIEW28PROJECTMANAGEMENTMANAGES/CONTROLSCOMPANYRESOURCESTIMECOSTPERFORMANCE/TECHNOLGOGYRESOURCESCOMPETINGCONSTRAINTS29TimeScopeCostImageQualityValueRiskOVERVIEW“Thenewbreedofbusinessleadersmustdealeffectivelywithabroadspectrumofcontemporarychallengesthatfocusontime-to-marketpressures,acceleratingtechnologies,innovation,resourcelimitations,technicalcomplexities,socialandethicalissues,operationaldynamics,cost,risksandtechnologyitself.”HansThamhain30AppleI-Phone2004$499–5994GBWt.135g115x61x11.6mmDisplay3.5india320x480pixelresolution32bitCamera2mp,novideoTalktime8hoursColor:blackAccelerometer,proximity2015$199–39916GB–128GBWt.129g138.1x67x6.9mmDisplay4.7india1334x750pixelresolution64bitCamera8mp,videoTalktime14hoursColor:gold,silver,bronzeTouchid,barometer,accelerometer,3axisgyro,proximity31PROJECTMANAGEMENT–WHOARETHEPLAYERS32COMPANYEXECUTIVESSTAKEHOLDERSSPONORSPROJECTMANAGERFUNCTIONALMANAGERPROJECTTEAMOVERVIEWStakeholdersIndividualsororganizationsthatcanbefavorableorunfavorabletotheprojectExamplesOrganizational–Executives,linemanagers,employeesandunionsProduct/Market–Customers,suppliers,LocalCommittees,Governments,andthegeneralpublicCapitalMarket-Shareholders,CreditorsandBanks33OVERVIEW34MostProjectshaveasponsor.OVERVIEWAsponsormaybeatanylevelintheorganizationAsponsorisanadvisorandprovidesguidanceReportinglevelisdependenton:TheRiskoftheprojectTheSizeoftheprojectTheCustomerProfitorLossresponsibility35OVERVIEWHighLevelReportingTheProjectManagerischargedwithgettingresultsfromthecoordinatedeffortsofmanyfunctions.Heshould,therefore,reporttothepersonwhodirectsallthosefunctions.TheProjectManagermusthaveadequateorganizationalstatustodohisjobeffectively36OVERVIEWHighLevelReportingTogetadequateandtimelyassistanceinsolvingproblemsthatinvariablyappearinanyimportantproject,theprojectmanagerneedsdirectandspecificaccesstoanupperechelonofmanagement.Thecustomer,particularlyinacompetitiveenvironment,willbefavorablyimpressesifhisorherprojectmanagerreportstoahighorganizationalechelon.37OVERVIEWProjectManager’sRoleIntegratingtheactivitiesnecessary:TodevelopaprojectplanToexecutetheplanTomakechangestotheplan.38OVERVIEW39IntegrationManagementOutputsInputsResourceCapitalMaterialsEquipmentFacilitiesInformationPersonnelIntegratedProcessesProductServicesProfitsOVERVIEWInterfaceManagementManagetheinter-humanrelationshipsWithintheprojectteamBetweentheprojectteamandthefunctionalorganizationsBetweentheprojectteamandseniormanagementBetweentheprojectteamthecustomerorganization,whetheraninternalorexternalorganization40OVERVIEWProjectManager’sRoleProjectmanagershaveincreasedresponsibilitybutlimitedauthority.Theprojectmanagerisanenabler.Theirjobistohelptheteamgettheworkcompleted,to“run-interference”forthem,togetscarceresourcesthattheyneed,andtobufferthemfromoutsideforcesthatwoulddisruptthework.Theyshouldbealeader.“Leadershipistheartofgettingotherstowanttodosomethingthatyoubelieveshouldbedone”(VancePackard)41OVERVIEWASuccessfulProjectManagementisDependenton:AgooddailyworkingrelationshipbetweentheprojectmanagerandthoselinemanagerswhodirectlyassignresourcestoprojectsTheabilityoffunctionalemployeestoreportverticallytolinemanagersatthesametimethattheyreporthorizontallytooneormoreprojectmanagers.42OVERVIEWTeamBuildingLeadershipConflictResolutionTechnicalExpertisePlanningOrganizationEntrepreneurshipAdministrationManagementSupportResourceAllocation43ProjectManagerSkillsRequiredtoBeSuccessful.(Kerzner)OVERVIEWProfessionalDevel.Conscious/AwareMentor/MenteeRelationshipsSocialMobileAvailable/ResponsiveCollaborateDecisiveResoluteCommunicatesDelegatesLeadsManages44ProjectManagerSkillsRequiredtoBeSuccessful.(J.Witt–ProjectM)OVERVIEW45Surveyresultsofastudyof107U.S.CompaniesDefiningdesirableProjectManagerBehaviors.17areQualitativeversusQuantitativeOVERVIEWTherefore,inadditiontostudyingquantitativetoolssuchascostcontrol,scheduling,quality,andplanning,wewillstudysomequalitativetopicsUnderstandingtheglobalenvironmentUnderstandingleadershipUnderstandingteamdynamicsandindividualpersonalities.Understandingthebusinesscasefordiversity46OVERVIEWClassicalManagementFunctionsPlanningOrganizingStaffingControllingDirectingNote:“Staffing”isnotincludedinthePMdefinition47OVERVIEWResourcesMoneyManpowerEquipmentFacilitiesMaterialsInformation/technology48CONTROLEDBYLINEMANAGEMENTOVERVIEWWhatisthedifferencebetweenanEngineeringManagerandanEngineeringProjectManager?First,bothpositionsareessentialandrepresentexcellentcareerpaths.Bothpositionsrequiretechnicalandmanagerialskills.AnEngineeringmanagermanagesagroupofemployeeswhoreportsolelytohimorher.AProjectManagermanagesaprojectandhasatemporaryteamdrawnfromthefunctionaloperations.49OVERVIEWWhatisthedifferencebetweenanEngineeringManagerandanEngineeringProjectManager?TheEngineeringmanagerroleispermanentwhiletheProjectmanageristemporary.TheEngineeringmanagerisresponsibleforhisorheremployeesdevelopment,annualreviews,training,employmentandpromotion.Bothhaveprojectsanddeadlinesbuttheprojectmanagerfocusesmoreonassigningresponsibility,scheduling,trackingandmeetingtheobjectives.50OVERVIEWFunctionalManager’sRoleDefinehowthetaskwillbedoneandwherethetaskwillbedone.Providesufficientresourcestoaccomplishtheobjectivewithintheproject’sconstraints.Responsibleforthefinaldeliverables.Defineemployeeleveltobeassigned51OVERVIEWFunctionalManager’sObstaclesUnlimitedworkrequestsPredetermineddeadlinesAllrequestshavehighpriorityLimitednumberofresourcesLimitedavailabilityofresourcesUnscheduledchangesintheprojectplan52OVERVIEWFunctionalManager’sObstacles(continued)UnpredictedlackofprogressUnplannedabsenceofresourcesUnplannedbreakdownofresourcesUnplannedlossofresourcesUnplannedturnoverofpersonnel.53OVERVIEWTheProjectManagerisresponsiblefortheplanning.Heorsheprovides:CompletetaskdefinitionResourcerequirementdefinitionMajortimetablemilestonesDefinitionofend-itemqualityandreliabilityrequirementsThebasisforperformancemeasurements.Definitionofprojectsuccess54OVERVIEWResultsofGoodPlanningAssurancethatfunctionalunitswillunderstandtheirtotalresponsibilitiestowardachievingprojectneeds.Assurancethatproblemsresultingfromschedulingandallocationofcriticalresourcesareknownbeforehand.Earlyidentificationofproblemsthatmayjeopardizesuccessfulprojectcompletionsothateffectivecorrectiveactionandreplaningcanbetakentopreventorresolvetheproblem.55OVERVIEWDownsideofProjectManagementThejobmayrequire60hoursormoreperweekExtensivetimeawayfromhome.LackoffriendsApoorhomelifeHigherprobabilityofdivorce.WeekendworkTakesworkonvacationTakesworkhome56OVERVIEWPublic-SectorProjectManagementUniquechallengesandconstraintsUniquefailuremodesSection1.19GlobalProjectManagementDiversityRequireuniqueskills57OVERVIEWProjectDrivenversusNon-ProjectDrivenCompaniesInaProjectdrivencompany,everythingcentersaroundtheprojecteg.AerospaceandconstructionInaNon-Projectdrivencompany,projectssupportthefunctionallinesandprofitsreflectprofitandlossofthefunction.ProjectManagementismuchmoredifficultinaNon-Projectdrivencompany.58OVERVIEWProjectManagementinNon-ProjectdrivenCompaniesProjectsmaybefewandfarbetween.Notallprojectshavethesameprojectmanagementrequirements,andthereforetheycannotbemanagedidentically.Thisdifficultyresultsfrompoorunderstandingofprojectmanagementandareluctanceofcompaniestoinvestinpropertraining.Executivesdonothavetimetomanageprojectsthemselves,yetrefusetodelegateauthority.59OVERVIEWProjectManagementinNon-ProjectdrivenCompaniesProjectstendto
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