SEG5790.

Project and Technology Management

Department of Systems Engineering & Engineering Management 1st term, 2012/2013 Academic Year

Instructor
Name: Office: Phone: Email: Fax: X. Q. Cai Room 709C Engineering Building II 3943-8321 xqcai@se.cuhk.edu.hk 2603-5505

TA
Name: Office: Phone: Email: Fax: Mr. Minghua Lai Room 709D Engineering Building Phase II 3943-8214 mhlai @se.cuhk.edu.hk 2603-5505

Lecture time/venue
Lecture time: Wednesday 7:00-9:45 PM (three sessions) Venue: LSB LT2 A possible arrangement:
Session 1: 7:00 - 8:15 pm Break: 8:15 - 8:30 pm Session 2: 8:30 - 9:30 pm

Teaching materials
I will organise lectures using materials drawn from the following books. These books will be reserved in the University Library.
A, Shtub, J.F. Bard, and S. Globerson, Project Management: Engineering, Technology, and Implementation, Prentice Hall, 1994. D.L. Babcock, Managing Engineering and Technology, 3rd Edition, Prentice Hall, 2002.

Evaluation
Homework assignments will be given from time to time. All homework assignments should be handed in on time. There will be a course project and a final examination. Your grade will be determined by your performance in each of the following requirements:

Homework Assignments Project Final Exam

20% 30% 50%

Honesty in Academic Work

The Chinese University of Hong Kong places very high importance on honesty in academic work submitted by students, and adopts a policy of zero tolerance on cheating in examinations and plagiarism.
Any related offence will lead to disciplinary action including termination of studies at the University. More details can be found at http://www.cuhk.edu.hk/policy/academichonesty/

Expectations on Teaching and Learning

Student/Faculty Expectations on Teaching and Learning, Faculty of Engineering, CUHK

See the document attached.

Objective of the Course

The main objective of this course is to teach students the basic concepts, models, and techniques in key functional areas of project management, including project screening and selection, project organization, scheduling, budgeting, allocation of depletable and renewable resources, project control, and computer support. Technology management and its relationships with project management will also be introduced. Students are expected to gain deep understanding and mastery of the relevant knowledge to effectively manage industrial and technological projects.

Course Outline and Schedule

Part I: Project Management
Basic concepts (Week 1) Project screening and selection (Weeks 2-3) Multiple-criteria methods for evaluation (Week 4) Project structuring (Week 5) Project scheduling (Weeks 6-7) Budgeting and resource management (Weeks 8-9) Project control (Week 10) Computer support for project management (Week 11)

Part II Technology Management

Strategic and operational considerations of technology (Week 12) Forecasting of technology (Weeks 12-13) Management of R&D projects (Week 13)

Chapter 1. Basic Concepts

1.1 1.2 1.3 1.4 1.5 1.6 The definition of a project" Main functions of project management Life cycle of a project Factors affecting the success of a project Why project management? To be an effective project manager

1.1 The definition of a project"

There are a rich variety of projects to be found in our society. Examples include: Massive construction programs, such as the construction of warehouse, freeways, railways, etc. Designing new models of products, such as new cars, ships, and aircrafts. New product marketing, advertising campaigns. IPO, mergers and acquisitions. Development of computer systems, software, etc. Performing major maintenance or repair. Set-up of a new enterprise, organization, department, office, etc. Tasks assigned from the upper level management.

1.1 The definition of a project"

On the other hand, we also have examples of: Production in a manufacturing company, Operation of a road tunnel, Operation of a bank, etc

What is the difference of these operations from construction programs, product designs, advertisement campaigns, development of software systems, setup of new companies/branches ?
When do we call something a project ?

1.1 The definition of a project"

Definition A project is an organized endeavor aimed at accomplishing a specific non-routine task within a certain time and under a certain resource constraint.

Characteristics of projects
Purpose A project is usually a one-time activity with a well-defined set of desired end results. Life span Like organic entities, projects have a finite life span. From a slowing beginning they progress to a buildup of size, then peak, begin a decline, and finally must be terminated. (Also like other organic entities, they often resist termination). Uniqueness Every project has some elements that are unique. No two projects are precisely alike. The project managers importance is emphasized because he/she will find there are a great many exceptions to manage by.

Characteristics of projects
Interdependencies Projects often interact with other projects being carried out simultaneously by their parent organizations. Conflict More than most managers, the project manager lives in a world characterized by conflict. Externally, a project competes with outside functional departments or other projects for resources. Internally, members of a same project team compete for the projects resource and for leadership roles in solving project problems.

Characteristics of projects
More specifically, a project can be defined by means of the following distinguishing characteristics: There is a set of well-defined goals. There is a specific start and a specific end point. The endeavor is unique and not repetitious. A project usually contains costs and time schedules to produce a specified product or result. A project cuts across many organizational and functional lines, and thus there are requirements for specific expertise, and there are also conflicts with other functional departments and within the project team.

1.2 Main functions of project management

Project management - The means, techniques, and the concepts used to run a project and achieve its objectives subject to various constraints/limits on resources, schedules, and personnel.

1.2 Main functions of project management

The following are the major components in managing a typical project:
Project initiation, selection, and definition. Project organization Analysis of activities/tasks Project scheduling Project budgeting Resource management Project execution and control Project termination

1.2 Main functions of project management

Project initiation, selection, and definition
Identification of needs Development of alternatives Evaluations of alternatives Selection of the most promising alternatives Estimation of the life-cycle cost of the selected alternatives Assessment of risk Development of a configuration baseline Selling the configuration and getting approval

1.2 Main functions of project management

Project organization
Selection of participating organizations/members Structuring the work content of the project into a work breakdown structure (WBS) Allocation of WBS elements to participating organizations/members Development of the associated communication and reporting facilities under the project organizational structure.

1.2 Main functions of project management

Analysis of activities/tasks
Definition of the projects major tasks/activities Identification of precedence relations among activities Development of a project network model

1.2 Main functions of project management

Project scheduling
Estimation of activity durations Development of activity starting/ending dates Monitoring actual progress and milestones Updating the schedules

1.2 Main functions of project management

Project budgeting
Estimation of direct and indirect costs Development of a cash flow forecast Development of a budget Monitoring actual cost

1.2 Main functions of project management

Resource management
Definition of resource requirements Acquisition of resources Allocation of resources among activities Monitoring of actual resource use and cost

1.2 Main functions of project management

Project execution and control
Execution of activities Data collection and analysis Detection of deviations in cost, configuration, schedule, and quality Development of corrective plans Implementation of corrective plans Forecasting of project cost at completion

1.2 Main functions of project management

Project termination
Evaluation of project success Recommendation for improvements in project management practices Analysis and storage of information on actual cost, actual duration, actual performance, and configuration

1.3 Life cycle of a project

1.4 Factors affecting the success of a project

Project mission and goals
These should be well defined and understood by the project teams, contractors, and other participants.

Top management support

This is essential, and therefore a continued, solid communication between the project manager and the top management is a catalyst for the project to be a success.

1.4 Factors affecting the success of a project

Project planning
To translate the project mission, goals, and performance measures into a workable plan. A detailed plan should cover all aspects of a project-technical, financial, organizational, scheduling, communication, and control.

Client consultation and acceptance

To make sure that the project is always designed and carried out to meet the requirements of the client (the ultimate user of the project is the final judge of its success).

1.4 Factors affecting the success of a project

Personal issues
Relations among team members, between the project team and the client, and between team members and other personnel in the organization must be handled carefully. Well motivated team members with a sufficient level commitment to the project and a good personal relation are the key determinants of project success.

Technical issues
Understanding the technical aspects of the project and ensuring that members of the project team possess the necessary skills are important to the success of the project.

1.4 Factors affecting the success of a project

Project control
A continuous feedback process for the project manager to identify deviations, anticipate problems, and initiate corrective plans. The success of a project depends on a timely project control.

Communication
A good coordination of a project replies on a good communication among the project team. A good communication with the top management, and the client, will also be essential for the success of the project.

1.4 Factors affecting the success of a project

Troubleshooting
To identify problem areas, to trace their sources, and to provide effective solutions.

1.5 Why project management?

A construction project:
There is a total budget constraint To sale the property, there is a desirable time (to capture the best price in the market), and a deadline (as specified by the contract with the government)

A rocket launching project:

There are strict timing constraints, as determined by the suitable time windows to launch the rocket.

1.5 Why project management?

Examples: NASA's Consolidated Launch Schedule:
Date: Sept. 8 Mission: GRAIL Launch Vehicle: Delta II Heavy Launch Site: Cape Canaveral Air Force Station, Fla. Launch Times: 8:37:06 a.m. and 9:16:12 a.m. EDT Date: Oct. 25 Mission: NPP Launch Vehicle: Delta II Launch Site: Vandenberg Air Force Base, Calif. Launch Window: 2:48:01 a.m. - 2:57:11 a.m. PDT / 5:48:01 a.m. 5:57:11 a.m. EDT

1.5 Why project management?

Space projects are large and very complicated.
Careful management of the timing of various tasks in the projects are extremely important, in order not to miss the desirable project time.

Commercial projects also involve great deals of money, resource, and manpower.
Effective management is important in order to minimize the potential losses.

1.5 Why project management?

Risk is present in most of projects, due to uncertainties in various sources, such as:
Uncertainty in scheduling Uncertainty in cost Uncertainty in technology Uncertainty in organizations Uncertainty in political and social environments.

Effective project management is necessary to minimize the bad consequences in the presence of these uncertainties.

1.6 To be an effective project manager

The basic functions of a project manager
Manage the projects scope by defining the goals and work to be done in sufficient detail to facilitate understanding and corrective action; Manage the human resources involved in the project; Manage communications to see that the appropriate parties are informed and have sufficient information to keep the project on track;

1.6 To be an effective project manager

The basic functions of a project manager (cond)
Manage time by planning and meeting a schedule;

Manage quality so that project results are satisfactory;

Manage costs so that the project is performed at the minimum practical cost and within budget, if possible.

1.6 To be an effective project manager

To be a project manager is now being recognized as an important career path in a growing number of firms. It has become very common for large organizations to put their more promising managers through a tour of duty during which they manage one or more projects (or parts of projects). This serves as a good test of the aspiring managers ability to coordinate and manage complex tasks.

1.6 To be an effective project manager

The purpose of this course -- A systematic study of the concepts, the techniques, and the tools, in project management.

Summary
Definition of projects and their key characteristics Main functions of managing a typical project Important factors that may affect the success of a project Basic requirements to be an effective project manager