ENMA 301

Introduction
to
Engineering
Management

Monier Ouabira
Department of Engineering Management
Old Dominion University
IN TRO D U C TIO N
TO P R O J E C T
MANAGEMENT
What is a A project is a unique, temporary
project? endeavor intended to solve a
problem, seize an opportunity, or
respond to a mandate.
(Project Management Institute,
2008)

Some projects create or improve

products or services, but others
spawn events or produce
information.

 Characteristics:
Unique
One-time occurrence
Finite duration
Project Success
Factors 1. Clear and shared purpose and goals
2. Motivated project team and
stakeholders.

3. Unfailing customer orientation.

4. Adequate support and resources.

5. Clear roles and responsibilities.

6. Attention to planning..

7. Effective management of uncertainty.

8. Continuous, effective communication.

9.Effective scope management and change

control.

10. Leadership..
M EAS U R I N G
P RO J E C T
S U CC E S S :
TRIPLE
C O N STRAIN T
Project
management
process  Initiation (selection)

 Planning

 Execution

 Monitoring and controlling

 Delivery and Closure

Summary  Projects are unique endeavors.

An organization’s entire set of

projects is known as a portfolio.
Ideally, this portfolio is composed
of a set of initiatives that support
the organization’s mission and
strategic goals.

The most successful projects are

characterized by clear goals,
motivated teams, strong customer
orientation, adequate support,
clear roles and responsibilities,
appropriate planning,
management of uncertainty,
communication, scope management
and effective leadership
 Payback model

• Measures the time it will take to recover the

investment

Payback Period = Initial Investment

÷ Annual Cash Flow

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 NET PRESENT VALUE (NPV)
MODEL
Computes the present value of all net cash inflows

I = Initial Investment
0

F = Net cash inflow for period t k

t

= discount rate
t = the number of years of life

A higher NPV is better

Higher the discount rate lower the NPV

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 Project Project
Selection Initiation

2
8
Project • Initiation stage is highly
Initiation instrumental in the life cycle of
a project as it defines the
boundaries of the project and
gives clarity to all participants
about the objectives, scope, cost
and timescale of the project.
• It sets the baseline for scope,
cost and schedule

• Identifies the right people to

involve
• Defines what is included in
scope

• Identifies items not included in

scope
Important • Project Charter: A “single,
Items consolidated source of
information” (Richter 2014)
for project initiation and
planning
• scope statement: A
document that defines the
project’s scope
Project Scope • Purpose:
Statement – to define and describe the
deliverables for the end
user or customer.
• What is Project Scope Statement?
– It is a document used by
project owner and
participants for planning
and measuring project
success
– Defines the
deliverable/results to be
achieved in specific,
tangible, and measurable
terms
– Addresses who, what, when,
why, where, how and how
many.
3
1
Defining a • Generic checklist for
Project Scope developing a project
scope:
1. Project objective
•+Project justification
•+Background or historical
information
2.Deliverables
3.Milestones
4.Technical requirements
5.Limits and exclusions
6.Reviews with customer

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Project Charter • A Project Charter should cover:
• •Project objectives
• •Project scope
• •Project milestones and deliver
ables
• P roject organization /stakeho
lders
•Budget approvals and resourc e
allocation
• Success factors, constraints, e
xpected expenditure
•C onfirmed project manager a
ssignment
 Project Project Project
Selection Initiation Planning
Project • The planning stage depends on the
Planning size of your project, how much
information you have to organize
and how large your team is.

• The end result of planning is a

clear project plan or schedule, from
which everyone will follow their
assigned tasks.

• Different tools, techniques and

planning programs may be used by
the project manager for planning
the project implementation
Create a • What is Project Management
Project Plan?
M anagement
Plan
• "a formal, approved document
used to guide both project
execution and project control.
The primary uses of the project
plan are to document planning
assumptions and decisions,
facilitate communication among
stakeholders, and document
approved scope, cost, and
schedule baselines. A project
plan may be summarized or
detailed."
• What is the difference between
Project Charter and Project
Management Plan?
Create a Work • It is the outcome of
Breakdown subdividing the project into
Structure smaller work elements that are:
(WBS) – Manageable
– Independent
– Integratable
– Measurable
• Major first step in the project
planning process
• Structured in accordance with
the way the work
will be performed
• Communication tool

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WBS TYP E S • • Deliverable-oriented W B S
• • Process-centered W B S
Categories of • Internal vs. External
Project • Owners and founders
S takeholders
• Sellers and contractors
• Team members and families
• Media
• Government Agencies
• Individual citizens (the public)

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 Responsibility Matrix
(RM)

• Helps defines responsibilities and relationship

between individuals or organizational units
• Lower level RM, Ex: Project Team
Task Individual 1 Individual 2 Individual 3 Individual n

Task 1 R M

Task 2 S R

Task 3 R S S

Task 4 R

R= r e sp o n s ib l e, S=support, M= must be consulted

Rod ri gu e z, L .J. (2 01 6) Sp ri ng
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 RM
• High level RM,
Ex:
– Organizations can be internal or external
– Can include a point of contact Organizations
Deliverables Org 1 Org 2 Org 3 Org n

D1 R

D2 S R

D3 R S S

D4 R

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S ample
RM
 Communication
M atrix
Example 1
What Target When? Method of Provider
Information Audience Communication

Example 2

Communication Source Recipient Information Frequency Method Who needs Feedback

Activity Need to review timing
information?

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 Other Ways to Represent
Communication in Projects
Project
Customer
Manager

Systems
Engineer

Test Software Electrical

Engineer Engineer Engineer

Electronics
Subject Matter Experts
Lab

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 Project
Project Project Project Execution
Selection Initiation Planning
& control

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 Project execution
• Completing plans
🞄 The plans considered in the planning phase are
implemented
🞄 Modification if necessary
🞄 Managing resources

• Encouraging teamwork
• Monitoring/Communication
Monitoring/Communication

🞄 Time management
🞄 Cost management
🞄 Quality management
🞄 Change management
🞄 Risk management
🞄 Issue management
🞄 Communication management
🞄 Status reports
🞄 Review Management
Monitoring and Controlling
 Project
Monitoring
• Why monitoring the project?
• Example of information obtained:
– Status of the project
– Cost to complete the project
– Date for project completion
– Identify potential problems
– Identify causes of cost, schedule variances

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 The Planning–Monitoring– Controlling C ycle

• We mainly want to monitor:

– Time
– Cost
– Scope
Project Monitoring
System

• involves determining what data to collect and

how, when, and who will collect data;
– Data to be collected is determined by the metrics
to be used for project control
• analysis of the data;
• and reporting of project progress.
Project Control
Process
• Steps:
1. Setting a baseline
• Time-phase work, resources and budget
2. Measuring progress and performance
• Time and budget, meeting the customer’s technical
requirements
3. Comparing plan against actual
• Detect variations and determine causes
4. Taking action
• Adjust if necessary
 Schedule
Monitoring
• Compare project progress against planned
target dates
• Concerned with:
– Influencing factors that create schedule change
– Determining if the schedule changed
– Managing changes as they occur
• Schedule control must be thoroughly
integrated with the other control processes,
ex: cost control, quality control
 Cost
control

• cost and productivity through the

full life cycle of enterprise level
projects
• Earned value management (EVM) is
an effective technique for tracking
costs and examining project
expenditures relative to completed
work
 Earned value management

Earned Value Cost/Schedule

System
• Terms:
– (EV) Earned value or budgeted cost of the work
performed E V = BA C x % Com plete
– (PV) Planned value or budgeted cost of the work
scheduled
– (AC) Actual cost or actual cost of the work performed
– (CV) Cost variance, CV=EV-AC
– (SV) Schedule variance, SV=EV-PV
– (BAC) Budgeted cost at completion
– (EAC) Estimated cost at completion
– (ETC) Estimated cost to complete remaining work
– (VAC) Cost variance at completion, BAC-EAC
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 Scope Control
• Identify when a scope change happens

• Manage the actual changes

 Project Project Project Project Project
S election Initiation Planning E xecution C losure

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Project Closure: The Finish
Line
• All those activities that,
once complete, permit the
project manager and team
to say, ‘We’re done!”
Closure Activities During
Project Execution
• Project Review Meetings

• Ongoing Project
Documentation
 🞄Normal
Types of 🞄Premature
Project Closure
🞄Perpetual
🞄Failed project
🞄Changed priority

14–64
Closure • Closure activities
deliverables 🞄Getting delivery acceptance
🞄Analysis
🞄Finalize documentation
🞄Evaluation of performance
🞄Transfer the good/service
• Retrospectives
• Final Report
Key Questions for a Project
Retrospective
• What worked well that we do
not want to forget?
• What is important to
remember, but is at risk to
be forgotten if we do not
capture it?
• What did we learn?
• What should we do
differently next time?
• What still puzzles us? (What
do we still not know how to
do well?)
• What recommendations
would we make to upper-
level managers and future
teams based on the above?
Facilitating • Focus on Process and Procedural
Learning from Lessons Learned
Project to • Maintain and Encourage the Use
Project of an Organizational Database of
Project Lessons Learned

• Strengthen Social Networking

among Project Managers
• Promote Project-to-Project
Learning through Team Member
Selection
• Provide Resources for Just-in-Time
Learning

• Create a Project Improvement

Advocate Role
Final report • Executive summary
• Review and analysis
• Recommendations
• Lessons learned
• appendix
C E L E B R AT E YO U R S U C C E S S ! !
Questions?