Engineering Project Management

MCHE 508 - Lecture #4

MCHE 508 Engineering Project Management Lect. #4

Project Management Process Groups

PLANNING

MCHE 508 Engineering Project Management Lect. #4

Planning
Reasons:
o
Establish the total scope/effort
o
Define and refine objectives
o
Develop course of action to achieve objectives
Outcomes (deliverables):
Project management plan (PMP)
There will be feedback loops as the plans are revised iteratively
(rolling wave planning)

MCHE 508 Engineering Project Management Lect. #4

Project Management Plan Outline

Collect Requirements
Define Scope
Create WBS
Define Activities
Sequence Activities
Estimate Activity Resources
Estimate Activity Durations
Develop Schedule
Estimate Costs
Determine Budget
Plan Quality

Scope
Management

Time
Management

Cost
Management

MCHE 508 Engineering Project Management Lect. #4

Planning Process Group

TIME MANAGEMENT

MCHE 508 Engineering Project Management Lect. #4

Project Management Plan

Inside the PMP we should:
Select Scheduling methodology

Select Scheduling tools

Select format and criteria for schedule development

MCHE 508 Engineering Project Management Lect. #4

Overview of Scheduling

MCHE 508 Engineering Project Management Lect. #4

Overview of Scheduling

MCHE 508 Engineering Project Management Lect. #4

Scheduling Tools
Work Scheme Matrix
Timeline

Calendar
Project Network Diagrams
o

PERT Chart (Program Evaluation Review Technique,)

Critical Path Method (CPM)

Precedence Diagramming Method (PDM)

Gantt Chart/Bar Chart

MCHE 508 Engineering Project Management Lect. #4

Define Activities Data Flow

MCHE 508 Engineering Project Management Lect. #4

Define Activities Data Flow

MCHE 508 Engineering Project Management Lect. #4

Difference Between WBS and Activities

WBS deals with deliverables
Activities are what is required to create the deliverable
Example:
A building is a deliverable
Cutting wood, hammering nails, pouring concrete are all
activities
The activities are what are required to create the deliverable

MCHE 508 Engineering Project Management Lect. #4

Define Activities: Outputs

Activity List
Comprehensive listing of all scheduled activities

Activity Attributes
Description of the activity by identification of all predecessors
and successors, constraints, dependencies
Milestone List
Significant points in the project

MCHE 508 Engineering Project Management Lect. #4

Activity List and Attributes

Activity Identifier

Description

1A2S

Build forms for concrete foundation of building 2

2A2S

Lay down moisture barrier lining of building 2

3A2S

Fabricate steel rebar for building 2

4A2S

Pour concrete for building 2

Activity Identifier Attributes

1A2S

Preceded by activity 1A1S, concurrent with 1A1S, requires

preapproval from project manager prior to start

2A2S

Preceded by 1A2S, followed by 3A2S and 3A1S

3A2S

Preceded by 2A2S

4A2S

Preceded by 3A2S, requires signature of inspector for

completion

MCHE 508 Engineering Project Management Lect. #4

Active Learning Moment

Question: Make an activities list for grilling a steak

(remember the steak would be the outcome, thus part of
WBS)

MCHE 508 Engineering Project Management Lect. #4

Milestone List
Milestone ID

Date

Description

IFR

10/9

Issue for review, internal only, requires signatures by all

department leads to complete

IFA

10/15

Issue for approval, send 3 hard copy packages to the client

through document control

IFC

11/1

Issue for construction, send 3 hard copy packages

finalized, contractually requires engineering stamps

Closeout

12/1

Issue final invoice for all labor and costs

MCHE 508 Engineering Project Management Lect. #4

Work Scheme Matrix

Subsystems

Sections of Deliverable

1
1
2
3
4
5
6

MCHE 508 Engineering Project Management Lect. #4

Example Scheme Matrix

Sections of Deliverable

Subsystems
Airframe

Electronics

Turbines

Controls

1 System Summary

Nov 15

Sep 8

Oct 10

Dec 12

2 Bill of Materials

Nov 16

Sep 9

Oct 11

Dec 13

3 Design Drawings

Nov 17

Sep 10

Oct 12

Dec 14

4 Analysis Reports

Nov 18

Sep 11

Oct 13

Dec 15

5 Procurement

Nov 19

Sep 12

Oct 14

Dec 16

6 Construction
Package

Nov 20

Sep 13

Oct 15

Dec 17

MCHE 508 Engineering Project Management Lect. #4

Sequencing Activities

MCHE 508 Engineering Project Management Lect. #4

Sequencing Activities

MCHE 508 Engineering Project Management Lect. #4

Timeline and Calendar

Chronological List of Events
11/25
Start Construction

11/2
Start Design
Bill of
Materials

System Summary

11/5

10/12
SUNDAY

Design Drawings

Analysis Reports

12/12

11/10

MONDAY

TUESDAY

WEDNESDAY

THURSDAY

FRIDAY

SATURDAY

2
Start Design

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

Start
Construction

12/20

MCHE 508 Engineering Project Management Lect. #4

Critical Path Methodology (CPM) or PERT Charts

Program Evaluation Review Technique

Developed in 1950s concurrently at DuPont and US Navy

It is a model that includes graphically:
o

A list of all activities required (WBS)

Duration of Each Activity

Dependencies between activities

Logical End points such as milestones

Then analyze to determine critical paths towards completion in

a timely manner

MCHE 508 Engineering Project Management Lect. #4

Critical Path Methodology (CPM) or PERT Charts

Program Evaluation Review Technique

Network Diagram
Nodes
Uses boxes or rectangles or circles to represent
activities or milestones
Arrows
Connect logically the interdependencies
AOA activity on arrow
AON activity on node

MCHE 508 Engineering Project Management Lect. #4

PERT Charts

AOA

Milestones

10, 20, 30, 40, 50

Activities

A, B, C, D, E, F

t, time

Time required in months (mo)

MCHE 508 Engineering Project Management Lect. #4

PERT Charts

www.rff.com

MCHE 508 Engineering Project Management Lect. #4

PERT Charts

www.rff.com

MCHE 508 Engineering Project Management Lect. #4

PERT Charts

Thus the critical path is A - E - G - K - M.

Critical path duration is 7 + 15 + 8 + 10 + 10 = 50
www.nptel.ac.in

MCHE 508 Engineering Project Management Lect. #4

Precedence Diagramming Method (PDM)

Modern method of CPM using Activity on node (AON)
Four Key dependencies or logical relationships
o
Finish-to-start (FS) most common
Initiation of successor depends on completion of predecessor
o

Finish-to-finish (FF)
Completion of successor depends on completion of the predecessor

Start-to-start (SS)
Initiation of the successor depends on the initiation of the predecessor

Start-to-finish (SF) least common

Completion of the successor depends on the initiation of the predecessor

MCHE 508 Engineering Project Management Lect. #4

Precedence Diagramming Method (PDM)

MCHE 508 Engineering Project Management Lect. #4

Dependencies
Mandatory
Contractually required or inherent to the nature of work
Discretionary
Preferred logic, or preferential methods
External
Relationships between project and non project activities

MCHE 508 Engineering Project Management Lect. #4

Leads and Lags

Lead
Allowed acceleration of a successor activity
Start landscaping 2 weeks prior to punch list completion (this
would be a FS minus 2weeks)
SF-2w

Landscaping

Punch List

Lag
Delay in successor activity
Start editing of a document 15 days after the technical team
starts writing it (SS+15)
SS+15d
Writing
Editing

MCHE 508 Engineering Project Management Lect. #4

Activities Sequencing: Outputs

Project Schedule Network Diagrams

Project Document Updates

o
Activity lists
o
Activity Attributes
o
Risk Register

MCHE 508 Engineering Project Management Lect. #4

Active Learning Moment

Question: Create Network Diagram for grilling the steak

using the activities listed previously

MCHE 508 Engineering Project Management Lect. #4

Estimating Activity Resources

MCHE 508 Engineering Project Management Lect. #4

Estimating Activity Resources

Type and quantities of material, people, equipment, or supplies
required to perform each activity (closely tied to cost estimation)

MCHE 508 Engineering Project Management Lect. #4

Estimating Activity Resources: Outputs

Activity Resource Requirements
Document or table that identifies the resource requirements
Resource breakdown structure (RBS)
Hierarchy of resources by category, type, grade
Example: Labor, Materials, Equipment
Under Equipment (types): Size, cost, number of units
Project document updates
o
Activity list
o
Activity attributes
o
Resource calendars

MCHE 508 Engineering Project Management Lect. #4

Active Learning Moment

Question: Create activity resource requirements for

grilling the steak

MCHE 508 Engineering Project Management Lect. #4

Estimating Activity Durations

MCHE 508 Engineering Project Management Lect. #4

Estimating Activity Durations

Approximating the number of work periods needed to complete
individual activities with estimated resources.

MCHE 508 Engineering Project Management Lect. #4

Analogous Estimating
Uses parameters such as duration, budget, size, weight, and
complexity as a basis for the future project estimation
Used when there is limited detailed info about project
Advantages: cheap and not time consuming
Most accurate when project tasks are closely resembling past
project tasks
Example: It took 2 hours to make dinner for 20 people, it should
take around 2 hours to make breakfast for 20 people

MCHE 508 Engineering Project Management Lect. #4

Parametric Estimating
Uses statistical relationships between historical data and other
variables to calculate cost
Example: It takes 2000 hours to build a normal 2000 ft2 house,
therefore it should take about 3000 hours to build a 3000 ft2
house, based on a parameter of 1 hour/ ft2
Higher accuracy if parameters are highly correlated

MCHE 508 Engineering Project Management Lect. #4

Three-Point Estimating
Originated with PERT
Three estimates for duration
o
Most likely (tm)
o
Optimistic (to)
o
Pessimistic (tp)

Expected (te)

( + 4 + )
=
6

MCHE 508 Engineering Project Management Lect. #4

Estimating Activity Duration: Outputs

Activity Duration Estimates
o
With ranges
o
Example: 2 weeks +/- 2 days assuming a 5 day work week
o
15% probability of exceeding three weeks, 85% probability
it will take three weeks or less

Project document updates

o
Activity attributes
o
Assumptions made in developing estimates

MCHE 508 Engineering Project Management Lect. #4

Active Learning Moment

Question: Estimate activity durations for grilling the steak

MCHE 508 Engineering Project Management Lect. #4

Develop Schedule

MCHE 508 Engineering Project Management Lect. #4

Develop Schedule
Analyze activity sequences, durations, resources and schedules
to create an overall schedule for the project
Creates a baseline to track process (control)

MCHE 508 Engineering Project Management Lect. #4

Develop Schedule: Tools

Schedule network analysis
o

Uses critical path, critical chain, what-if, and resource

leveling to calculated early and late finish dates

Use to find compress and float in schedules graphically

Critical path method calculates theoretical duration of project

based solely on a sum of activity durations

Critical chain method takes into account limited resources and

adds buffers

MCHE 508 Engineering Project Management Lect. #4

Develop Schedule: Tools

Resource leveling takes into account scheduling and windows of
limited and shared resources to alter the original schedule
What-if scenario analysis, it takes into account potential delays
created by delays in key resource arrival or availability or loss of

critical resources (typically uses monte carlo analysis)

Application of Leads and Lags

MCHE 508 Engineering Project Management Lect. #4

Schedule Compression
Shorten the project without changing the scope, yet still meet
constraints and other objectives
Crashing
How to compress schedule without increasing cost
Example: paying more to expedite delivery will decrease the
amount of downtime of construction workers thus reducing
downtime costs
Fast Tracking
Creating parallel parts of the project sequencing
Example: start construction prior to finish of design

MCHE 508 Engineering Project Management Lect. #4

Develop Schedule: Outputs

Project Schedule:
o
Milestone Charts
o
Bar Charts (Gantt charts)
o
Project Schedule Network Diagrams
Schedule Baseline
Schedule Data
Project Document Updates
Activity resource reqs, activity attributes, calendar, Risk register

MCHE 508 Engineering Project Management Lect. #4

Gantt Chart

MCHE 508 Engineering Project Management Lect. #4

Gantt Chart

MCHE 508 Engineering Project Management Lect. #4

Active Learning Moment

Question: Create a Gantt chart for the grilling of the steak