KIX2004

Engineering Project Management

Dr. Narendra Kumar, Dr-Ing (Germany), SMIEEE (USA), FIET (UK)

Faculty of Engineering
e-mail: narendra.k@um.edu.my
 Schedule Subject
Minggu Topik & Aktiviti
Week Topic & Activities

Pengenalan kepada kursus : Skop dan kepentingan

1 Introduction of the course : importance and scope
Chapter 1
Dr. Narendra
Pengenalan kepada Pengurusan Projek / Introduction to Project Management.
 Definisi pengurusan projek / Definition of Project Management
 Faedah pengurusan projek / Benefits of Project Management
2
 Peranan pengurus projek / Role of Project Manager
Chapter 4
Dr. Narendra
Sejarah Pengurusan Projek / History of Project Management
Kitaran Hidup Projek / Project Life-Cycle
3 Kemungkinan Kajian / Feasibility Study
Chapter 2
Dr. Narendra
Pemilihan projek / Project Selection
 Pemilihan Model Projek / Project Selection Models
 Model angka / Numeric Models
4  Pemarkahan Model / Scoring Models
 Analisis Kos pulang modal / Cost Break-even Analysis
Chapter 3
Prof. Nukman
Penganggaran Projek / Project Estimating
Perancangan dan Kawalan Kitaran /Planning and Control Cycle
5 Skop Pengurusan / Scope Management
Chapter 5
Dr. Ng Chee Guan
Struktur Pecahan Kerja (WBS) / Work Breakdown Structure (WBS)
Kaedah Laluan Kritikal / Critical Path Method
6 Carta Graf Jadual / Schedule Bar charts
Chapter 6
Dr. Ting
 Schedule Subject
Jadual Perolehan / Procurement Schedule
Perancangan Sumber / Resource Planning
7 Akaun Projek / Project Accounts
Chapter 8
Dr. Ting
Pengurusan Projek Pengkomputeran / Project Management Computing
 Perancang Projek Microsoft / Microsoft Project Planner
8  Perancangan Projek Primavera / Primavera Project Planner
Chapter 6
Dr. Narendra
UJIAN PERTENGAHAN SEMESTER / MIDTERM TEST
Kawalan projek / Project Control
9 Nilai yang diperoleh / Earned Value
Chapter 7
Prof. Nukman
Pengurusan Kualiti / Quality Management.
10 Pengurusan Risiko Projek / Project Risk Management.
Chapter 13
Dr. Ching
Komunikasi Projek / Project Communications.
11 Struktur Organisasi Projek (Matrix) / Project Organisation Structure (Matrix).
Chapter 11, 12, 3
Dr. Ching
Projek Berpasukan / Project Teams.
12 Projek Berkepimpinan / Project Leadership.
Chapter 11
Dr. Ng Chee Guan
13 Pembentangan Projek / Project Presentation.

14 Pembentangan Projek / Project Presentation.

 Week 1

INTRODUCTION TO THE PROGRAM

MANAGEMENT
An Overview of Project Management 6e.
 What is a Project?
• Project Defined
–A complex, nonroutine, one-time effort limited by time,
budget, resources, and performance specifications
designed to meet customer needs.
• Major Characteristics of a Project
–Has an established objective.
–Has a defined life span with a beginning and an end.
–Requires across-the-organizational participation.
–Involves doing something never been done before.
–Has specific time, cost, and performance
requirements.
 Program versus Project

• Program Defined
–A series of coordinated, related, multiple
projects that continue over an extended
time and are intended to achieve a goal.
–A higher level group of projects targeted
at a common goal.
–Examples:
• Project: completion of a required course
in project management.
• Program: completion of all courses required
for a business major.
 Comparison of Routine Work with Projects
Routine, Repetitive Work
Taking class notes
Daily entering sales receipts into
the accounting ledger
Responding to a supply-chain
request
Practicing scales on the piano
Routine manufacture of an Apple
iPod
Attaching tags on a manufactured
product
Projects
Writing a term paper
Setting up a sales kiosk for a
professional accounting meeting
Developing a supply-chain
information system
Writing a new piano piece
Designing an iPod that is
approximately 2 X 4 inches,
interfaces with PC, and
stores 10,000 songs
Wire-tag projects for GE and
Wal-Mart
Project Life Cycle
 The Challenge of Project Management
• The Project Manager
–Manages temporary, non-repetitive activities and
frequently acts independently of the formal
organization.
• Marshals resources for the project.
• Is linked directly to the customer interface.
• Provides direction, coordination, and integration
to the project team.
• Is responsible for performance and success of the project.
–Must induce the right people at the right time to
address the right issues and make the right decisions.
 Current Drivers of Project Management
• Factors leading to the increased use
of project management:
–Compression of the product life cycle
–Knowledge explosion
–Triple bottom line (planet, people, profit)
–Corporate downsizing
–Increased customer focus
–Small projects represent big problems
 Project Governance:
An Integrative Approach

• Integration (or centralization) of project

management provides senior management with:
–An overview of all project management activities
–A big picture of how organizational resources are used
–A risk assessment of their portfolio of projects
–A rough metric of the firm’s improvement in managing
projects relative to others in the industry
–Linkages of senior management with actual project
execution management
Integrated Management of Projects
 Alignment of Projects with
Organizational Strategy
• Problems resulting from the uncoordinated
project management systems include:
–Projects that do not support the organization’s overall
strategic plan and goals.
–Independent managerial decisions that create internal
imbalances, conflicts and confusion resulting in
dissatisfied customers.
–Failure to prioritize projects results in the waste of
resources on non-value-added activities/projects.
 Major Functions of Portfolio Management:
The “Science” and “Art” of Project Management

• Oversee project selection.

• Monitor aggregate resource levels and skills.
• Encourage use of best practices.
• Balance projects in the portfolio in order to represent a
risk level appropriate to the organization.
• Improve communication among all stakeholders.
• Create a total organization perspective that goes beyond
silo thinking.
• Improve overall management of projects over time.
 The Technical
and Sociocultural
Dimensions
of the Project
Management
Process
 Key Terms

Program
Project
Project life cycle
Project Management Professional (PMP)
Where We Are Now
 Defining the Project

Step 1: Defining the Project Scope

Step 2: Establishing Project Priorities
Step 3: Creating the Work Breakdown Structure
Step 4: Integrating the WBS with the Organization
Step 5: Coding the WBS for the Information
System
 Step 1: Defining the Project Scope
• Project Scope
–A definition of the end result or mission of the
project—a product or service for the client/customer—
in specific, tangible, and measurable terms.
• Purpose of the Scope Statement
–To clearly define the deliverable(s) for the end user.
–To focus the project on successful completion
of its goals.
–To be used by the project owner and participants
as a planning tool and for measuring project success.
 Project Scope Checklist

1. Project objective
2. Deliverables
3. Milestones
4. Technical requirements
5. Limits and exclusions
6. Reviews with customer
 Project Scope: Terms and Definitions
• Scope Statements
–Also called statements of work (SOW)
• Project Charter
–Can contain an expanded version of scope statement
–A document authorizing the project manager to initiate
and lead the project.
• Scope Creep
–The tendency for the project scope to expand over
time due to changing requirements, specifications,
and priorities.
 Step 2: Establishing Project Priorities
• Causes of Project Trade-offs
–Shifts in the relative importance of criterions related
to cost, time, and performance parameters
• Budget–Cost
• Schedule–Time
• Performance–Scope
• Managing the Priorities of Project Trade-offs
–Constrain: a parameter is a fixed requirement.
–Enhance: optimizing a criterion over others.
–Accept: reducing (or not meeting) a criterion
requirement.
Project Management Trade-offs
Project Priority Matrix
 Step 3: Creating the Work
Breakdown Structure

• Work Breakdown Structure (WBS)

–An hierarchical outline (map) that identifies the
products and work elements involved in a project.
–Defines the relationship of the final deliverable
(the project) to its subdeliverables, and in turn,
their relationships to work packages.
–Best suited for design and build projects that have
tangible outcomes rather than process-oriented
projects.
 Hierarchical
Breakdown of
the WBS

* This breakdown groups work

packages by type of work within a
deliverable and allows assignment
of responsibility to an organizational
unit. This extra step facilitates a
system for monitoring project
progress (discussed in Chapter 13).
 How WBS Helps the Project Manager
• WBS
–Facilitates evaluation of cost, time, and technical
performance of the organization on a project.
–Provides management with information appropriate
to each organizational level.
–Helps in the development of the organization
breakdown structure (OBS). which assigns project
responsibilities to organizational units and individuals
–Helps manage plan, schedule, and budget.
–Defines communication channels and assists
in coordinating the various project elements.
Work Breakdown Structure
 Work Packages
• A work package is the lowest level of the WBS.
– It is output-oriented in that it:
1. Defines work (what).
2. Identifies time to complete a work package (how long).
3. Identifies a time-phased budget to complete
a work package (cost).
4. Identifies resources needed to complete
a work package (how much).
5. Identifies a person responsible for units of work (who).
6. Identifies monitoring points (milestones)
for measuring success.
 Step 4: Integrating the WBS
with the Organization

• Organizational Breakdown Structure (OBS)

–Depicts how the firm is organized to discharge its
work responsibility for a project.
• Provides a framework to summarize
organization work unit performance.
• Identifies organization units responsible
for work packages.
• Ties organizational units to cost control
accounts.
Integration of
WBS and OBS
 Step 5: Coding the WBS for
the Information System

• WBS Coding System

–Defines:
• Levels and elements of the WBS
• Organization elements
• Work packages
• Budget and cost information
–Allows reports to be consolidated at
any level in the organization structure
 Coding
the WBS
PBS for Software Development Project
 Responsibility Matrices
• Responsibility Matrix (RM)
–Also called a linear responsibility chart.
–Summarizes the tasks to be accomplished and
who is responsible for what on the project.
• Lists project activities and participants.
• Clarifies critical interfaces between units
and individuals that need coordination.
• Provide an means for all participants to view their
responsibilities and agree on their assignments.
• Clarifies the extent or type of authority that
can be exercised by each participant.
Responsibility Matrix for a Market Research Project
Responsibility Matrix for the Conveyor Belt Project
Stakeholder Communications
 Project Communication Plan

• What information needs to be collected

and when?
• Who will receive the information?
• What methods will be used to gather
and store information?
• What are the limits, if any, on who has access
to certain kinds of information?
• When will the information be communicated?
• How will it be communicated?
 Information Needs

• Project status reports

• Deliverable issues
• Changes in scope
• Team status meetings
• Gating decisions
• Accepted request changes
• Action items
• Milestone reports
 Developing a Communication Plan

1. Stakeholder analysis
2. Information needs
3. Sources of information
4. Dissemination modes
5. Responsibility and timing
Shale Oil Research Project Communication Plan
 Key Terms
Cost account
Milestone
Organization breakdown structure (OBS)
Priority matrix
Process breakdown structure (PBS)
Project charter
Responsibility matrix
Scope creep
Scope statement
WBS dictionary
Work breakdown structure (WBS)
Work package