Emine Bayrakli

Assignment 1
EM-636 Summer 2024
Instructor: Professor Paul Ranky

Ranky-PM-2: Some key project management terminology and solutions.

A project is a set of tasks that must be completed within a defined timeline to accomplish a
specific set of goals. These tasks are completed by a group of people known as the project team,
which is led by a project manager, who oversees the planning, scheduling, tracking and
successful completion of projects.

Terminologies:

WBS (Work Breakdown Structure)

WBS is a hierarchical structure that shows all work breakdowns also has a manageable,
distinguishable work structure.
Milestone
A milestone is a plan that defines the set of project deliverables. These are the important
outcomes of the project throughout the project life cycle.

Time: In my company: project time is 36 months; project will have 6 milestones.

Project timeline

A project timeline is a project management tool that helps you visualize how the pieces of your
plan fit together. A project timeline can help you list specific dependencies during the project
planning process.

Gantt chart

A Gantt chart is a type of visual project management that displays a project in the form of a
timeline. It's an easy way to track a project lifecycle and estimate end dates for certain project
activities.

Agile is a project management methodology in which projects are broken down into small
sections or cycles called iterations. The project’s stakeholders evaluate each completed iteration,
and the insights are used to guide the next stages of the project.
Deliverable
A project management deliverable is the output delivered to the client once a project is
completed.

Project Budget

A project budget is a financial estimate of the total costs required to complete a project within a
specific time frame. It's a crucial part of the project planning process and helps project managers
determine how much a project will cost and if it's staying on budget.

Cost:
Project costs are the total funds needed to monetarily cover and complete a business transaction
or work project.

Target Value:

A project's target value is a set of objectives that are defined during the project's definition phase
to measure its success and progress. Target values can be based on key figures, such as a desired
budget, schedule, or quality goals.

Meaning goal: A project goal is a statement that explains the expected outcome of a project.

 How to solve a PM problem? How are you performing this in your own company?

o Define the Problem

o Analyze Root Causes
o Evaluate the Alternative Solutions
o Choose the Optimal Solution
o Decide on a Plan of Action
o Implement the Action Plan
o Monitor and Track Result

 In may project I have a risk management for the in case of for late deliveries.
Ranky-PM-3: Best practices for organizing and staffing the project office and team. How
are you performing this in your own company?

Successful project management, regardless of the organizational structure, is only as good as the
individuals and leaders who are managing the key functions. Project management is not a one-
person operation; it requires a group of individuals dedicated to the achievement of a specific
goal. Project management includes:

My Project Team:
 Project Manager
 Assistant Project Manager
 Engineers
 Quality Control Manager
 Purchasing Manager
 Accounting Team

Best practices for project management functions.

Planning: Defining project goals and scope, and creating an actionable plan
Organizing: Structuring the project according to the plan
Leading: Motivating the project team to work towards the plan
Controlling: Evaluating the effectiveness of the plan and ensuring the project is completed on
time, within budget, and to the satisfaction of stakeholders
Managing resources: Distributing resources and ensuring they are managed effectively
Risk Management: Identifying and eliminating potential risks
Communicating: Communicating effectively with stakeholders
Documenting: Using project management tools to document the project process

 Some typical questions managers ask at an engineering project management job

interview

Five basic questions must be considered:

 What are the internal and external sources?

 How do we select?
 How do we provide career development in project management?
 How can we develop project management skills?
 How do we evaluate project management performance?
What an engineering project manager must know:

The major skills of the project manager

 Communication
 Management
 Leadership
 Planning/Coordinating
 Customer Service
 Operations
 Problem-solving

Project teams are not easy to design and operate. How are you performing this in your own
company?

Duties and responsibilities within the company and network are written down. Everyone needs to
know their responsibilities, and before we hire them, we make them all sign a document stating
their internal rules, duties and responsibilities. We also have certain goals that we need to
achieve every 3 months. Each project team works determinedly to achieve these determined
goals and we have a reward system.

How to deal with difficult people in project teams? How are you performing this in your
own company?

Firs off all we need to understand and identify the root cause and then communicate clearly and
respectfully.

 An example of a highly educated, professional engineering project manager's resume…

this is just an example…
.
Ranky-PM-4: Some key concepts and skills project managers must understand.

What are the best practices for project management functions?

1. Scoping

The scoping function is an activity that covers the boundaries of the realm of work that must be
done so that the project is completed

2. Planning

The planning function is the activity of identifying the desired project objectives, reducing the
opportunity for the risk to arise, anticipating the work to be completed on time so it can finally
be produced as a product or service that has been mutually agreed upon.

3. Estimating

The estimating function is part of a form of project planning whose activities include quantitative
estimates of project costs, resources used to the duration of project completion.

4. Scheduling

The scheduling function is the activity of compiling a list of activities that includes the start and
finish time of each job, the ideal completion duration, and the person in charge of each type of
work. Effective scheduling is an important factor to create good time management.

5. Organizing

The organizing function is an activity to confirm or ensure that all team members are fully aware
of their respective roles, responsibilities, and their relationship with you as the project manager.

6. Directing

The directing function centers on the leadership style of a project. This directing activity includes
instructing, mentoring, and training team communication in order to achieve the project goals.

7. Controlling

The controlling function is the activity of controlling all work that takes place in the project so
that it goes according to plan or does not deviate. The project manager will use the standard
measurement matrix to monitor each ongoing activity. This function can be said to be the most
difficult and important function because it determines the effectiveness and success of the
project.

8. Closing
The closing function is an activity of evaluating and scoring the results of projects that have
ended

Some more important project management terms.

Project Timeline Activity Project budget

Project Plan Earned Value Quality management plan
Gantt Chart Cost Breakdown Structure Risk Management
Baseline Business Case Acceptance Criteria
Milestone Contingency Plan Assumptions
Scope Kanban Bottleneck
Work breakdown structure
Critical Path Agile
(WBS)

Project Charter explained in more detail.

Project Lifetime (months) 36

Estimated Order 860000
Total deliveries 6

150 Moulds/hour 1 mould can produce 1

part
8-hour shift (1 day production) 1200
1 Month Production 24000
Total Project Delivery 864000
Estimated Order 860000

 Project goal: Goal is to produce 860000 Wind Turbine Brakes for Vestas Company.
Our priority is quality and on time delivery.

 Project participants. Project Manager and Project Engineers will be involved in the
project and clearly states their roles.

 Requirements: ISO 9001:2015

 Milestones. This project has 6 milestones on Project Timeline which means that 6
deliveries.

 Communication. This specifies how the project manager will communicate with
project owners, participants and key stakeholders throughout the project.
  Deliverables. This documents what specific products, processes or services the
project provides upon completion.

 Cost. This identifies a general overview of the project budget.

Cost
Raw Material $ 50
Casting $ 15
Grinding $ 35
Painting $ 10
Machining $ 200
Quality Control $50
Packing $5
Delivery $20
Total Cost (per item) $520

Project Plan explained in more detail.

The project duration is 36 months. There will be a total of 6 deliveries in the project, which
means we need to produce 24000 parts per month to meet the Milestones.

The rolling wave or moving window approach

The Rolling Wave approach to project management suggests that the project planning effort
“rolls out” detailed plans for the foreseeable future and, as the project evolves, periodically
reevaluates the completion dates and costs.

WBS
 Ranky-PM-5: Modern project management modeling methods and principles

 An example for a simple SPT (shortest processing Time) project scheduling / job
scheduling algorithm in Python pseudo code script with a numerical example.
 Gantt Chart discussed in detail with examples. How are you performing this in your own
company?
 Work Breakdown Structure (WBS) explained in more detail. How are you performing
this in your own company?
 Risk Management explained in more detail. How are you performing this in your own
company?

Example for simple SPT:

Risk Management

Risk Management Plan

Identifying Risks Identifying risks before problems occur

Transforming risk data into useful information to set priorities and make decisions
Analyze
Correct risk mitigation plan deviations and decide on future actions
Plan
Track Tracking risk indicators and mitigation actions
Control
Constantly Checking
  Stakeholder Management explained in more detail. How are you performing this in your
own company?

Stakeholder management is the process by which you organize, monitor and improve your
relationships with your stakeholders.

It involves the systematic identification of stakeholders; is to analyze their needs and

expectations.

As noted above, stakeholders can range from customers and employees to investors, suppliers,
and community members. To create a strong stakeholder management plan, it is critical that you
take the time to identify, prioritize and evaluate your project stakeholders. This will help ensure
that your goals are aligned with those of your stakeholders so that your project can go smoothly.

In my project, we will have an online communication map, everyone will be able to see all the
update information.

Resource Allocation explained in more detail. How are you performing this in your own
company?

Resource allocation is the process of scheduling resources such as labor, materials or equipment
for the completion of project tasks. Resource allocation is a step of project resource management
that involves estimating resources, procuring resources, allocating resources and tracking
resources until the project is completed.

 I am planning to use MS project or Monday.com

Ranky-PM-6: Earned Value Management (EVM) for project management.

 A calculation example for Earned Value Management (EVM) in project management.

How are you performing this in your own company?
 Earned value management (EVM) is a project management methodology that integrates
schedule, costs, and scope to measure project performance. Based on planned and actual
values, EVM predicts the future and enables project managers to adjust accordingly.

Example to EVM:

Given Data
Monday Tuesday Wednesday Thursday Friday Cost Work Comoleted Actual Cost
A $ 50.00 100% $ 60
B $ 100.00 80% $ 110
C $ 200.00 20% $ 30
D $ 100.00

SV -80
CV -30
End of Tuesday SPI 0.68
Planned Value PV(BCWS) 250 CPI 0.85
EV $ 170.00
Given Actual
$ 200.00
information Cost

SV and CV values are negative means that we are behind the schedule and cost 80 and 30
dollar more than what we expect. SPI and CPI is less than 1 which is not a good result.

SPI 0.68 means that we only completed .68 of the work that we need to achieve, and
efficiently rate is .85.

 I will be also using EVP at my project.

Ranky-PM-7: Best practice pricing strategies in engineering project management.

 A detailed example for Cost-plus pricing. How are you performing this in your own
company?

Cost-plus pricing is a basic pricing strategy that involves determining the cost of goods or
services, and then adding a fixed percentage (the margin) as the markup. For example, if
your total costs are $100 and you want a 20% profit margin, you would add $20 to arrive
at a selling price of $120.

At my company 20% profit margin will be added to the product cost.

 A detailed example for Value-based pricing. How are you performing this in your own
company?

Value-based pricing is also often used when scarcity is involved. For example, at a
concert, bottled water may be on sale for $6. However, you can buy the same bottle from
 a vending machine outside of the concert area for $1 only. The difference in pricing is
reflected in the scarcity of water at the concert, and the need for concertgoers to drink
water.

At my company I will not be using Value-based pricing.

 A detailed example for Competition-based pricing. How are you performing this in your
own company?

The rivalry between Coca-Cola and Pepsi is one of the most famous examples of
competition-based pricing. Both companies constantly monitor each other's pricing and
promotional strategies and adjust their prices accordingly to stay competitive. They also
offer various discounts and promotions to attract consumers, such as "Buy One, Get One
Free" deals or multi-pack discounts.

We are following the raw material pricing it goes up and down, also other
competitors are doing the same thing to keep their price updated.

 A detailed example for Target cost pricing. How are you performing this in your own
company?

The target cost is calculated by subtracting the desired profit margin from the target
selling price. For example, if a company has a target selling price of $200 and the desired
profit margin of $40, the company's target cost would be $160.c

At my company it is little hard because of the raw material prices are not fixed. of
$40, the company's target cost would be $160.
 A detailed example for Negotiated pricing. How are you performing this in your own
company?

Negotiated pricing is when the price of a product or service is not fixed and can be
discussed.

Example: Vehicles

The suggested price of a new or used car is often negotiable, especially when trade-ins,
financing, or leasing are involved.

 Aggressive style competitive pricing techniques with examples

Aggressive pricing is a competitive pricing strategy that aims to beat out competitors by
keeping prices lower than theirs. It's a reactive strategy that involves continuously
lowering prices, even if a competitor lowers theirs first. However, aggressive pricing can
 be risky if sales drop, and it might not be financially viable if a company has high fixed
costs.

Example:

Ben & Jerry’s marketing campaigns in the mid-1980s, when Pillsbury’s Häagen-Dazs
attempted to limit distribution of Ben & Jerry’s products. In response, Ben & Jerry’s
launched their “What’s the Doughboy Afraid Of?” advertising campaign to challenge
Pillsbury’s actions. This marketing action was coupled with a series of lawsuits—Ben &
Jerry’s was competitively aggressive in both the marketplace and the courtroom.

Ranky-PM-8: Best practice Change Management in engineering project management.

 Change Management

Engineering change management involves the documentation, review, approval, and

implementation of changes to a product throughout its lifecycle. The process ensures that
changes are evaluated for their feasibility before they are implemented.

 Sustainable, green-focused project management attributes, features (as part of change

management)

Sustainable project management, aka green project management, integrates economic,

environmental, and social factors in project execution. It encompasses long-term societal
benefits such as job creation, health improvement, and social inclusion

 The environmental impact of a project. How are you performing this in your own
company?

Foundries can have a significant environmental impact through air pollution and solid
waste. Air pollution comes from many processes, including:

o Mold production: Releases volatile organic compounds (VOCs), odorous substances,

and dust
o Casting: Releases dust and fumes
o Cooling: Releases vapors
o Metal melting: Releases vapors and dust
o Materials handling: Releases dust and fumes
o Finishing operations: Releases dust and fumes
o Scrap melting: Releases dioxins and other persistent organohalogens if the scrap is
contaminated with paint, plastics, or lubricating oil

At my company we have also been recycling old metal into new objects for centuries,
making them some of the world's first recyclers. Metal casters can play a key role in
sustainability by implementing management systems, metrics, waste management, and
beneficial reuse. Cleantech solutions, such as products, services, and processes that
 promote sustainable resource use and reduce emissions, can also help foundries respond
to environmental challenges.

Ref. https://www.themetalcasting.com/enviornmental-issues.html#:~:text=Foundry
%20Waste&text=For%20instance%20%E2%80%93%20foundries%2C%20which
%20use,metals%20present%20in%20the%20waste.

 Product lifecycle assessment methods. How are you performing this in your own
company?

A Life Cycle Assessment (LCA) measures the environmental impacts of a product or

service. LCA methodology allows the evaluation of the environmental impact of products
and services across all life cycle stages, modeling their interaction with the environment
and accounting for all steps from raw material extraction to final disposal or recycling.

In my own company: all the brakes can go back to scrap. We can always melt the
material to produce make new products.

Ranky-PM-9: Best practice Project Closeout in engineering project management. How are
you performing this in your own company?

o Plan: Start planning the closeout early to avoid complications.

o Set requirements: Make sure you understand the client's specific handover requirements.
o Transfer deliverables: Finalize and transfer all deliverables to the client and confirm
that everyone agrees the project is complete.
o In my own company: We have 6 deliverables.

Ranky-PM-10: Best practice Project Teamwork in engineering project management. How

are you performing this in your own company?

o Understand Your Team

o Understand Project Details
o Micromanagement
o Flexibility
o My company also has the above principles.

Ranky-PM-11: Best practice to avoid project failures in engineering project management.

How are you performing this in your own company?

o Planning is the most important part of managing a project. This includes clearly defining
project orders, success criteria, and termination criteria.
o Risk management: A risk analysis can help identify areas for improvement before the
project begins. This involves assessing the likelihood and impact of potential risks and
preparing mitigation plans.
 o Setting goals: Set SMART goals that are specific, measurable, achievable, realistic, and
time bound. This can help mitigate risk and provide a clear roadmap for the project.
o Communication: Good communication is important, but it can be difficult. Project
management tools can help with this.
o Monitoring: Track project progress and use an early warning system to measure time,
effort, costs, and risks

 Best practice for time management in project management. How are you performing this
in your own company?

Managing time is an important part of task management. It helps to break down projects, assign
tasks, and complete the projects on time. I have created a project timeline, and I listed all tasks
with starting and ending times.

 Best practice for budget management in project management. How are you performing
this in your own company?

Project budget management is the process of administering and overseeing the finances related to
business projects.

Project Budget
Raw Material 10% $ 14,190,000
Labor 20% $ 28,380,000
Management 10% $ 14,190,000
Fixtures and Equipments 15% $ 21,285,000
Packing and Shipment 5% $ 7,095,000
Operation and Maintaance 10% $ 14,190,000
Production 30% $ 42,570,000
Total 100% $ 141,900,000
 Project Budget
0.1
0.3
0.2

0.1 0.1
0.05
0.15

Raw Material Labor

Management Fixtures and Equipments
Packing and Shipment Operation and Maintaance
Production

 Best practice for the pricing review procedure in project management. How are you
performing this in your own company?

Pricing analysis is a process of evaluating the prices of your products or services to determine if
they are competitive and profitable

First off, all you need to know all the expenses for and your company or project.,

Second important factor is to know Competitor price. Some industries are natural fits for a
specific pricing process.
This can be a complex process, as it involves considering a variety of factors, such as the cost of
production, the cost of distribution, the cost of marketing, the level of demand, the prices of your
competitors

 Explain why some companies do not provide transparency in their pricing process?

Because it helps business more control over the pricing process and allows them to tailor
their prices to each customer based on them

 Explain why some companies do not know the true cost of their products?

Production may not want marketing to know what things cost.

 Explain how to deal with dynamically changing costs in project management?

Cost change management is the process of identifying, analyzing, approving, and implementing
changes that affect a project's cost. It's important to note that changes in cost will occur
throughout a project's lifecycle. The cost of change in projects is the amount of money needed to
adjust, such as changing materials, workers, or software.
  Identify and analyze cost changes
 Communicate and negotiate cost changes
 Update and document cost changes.
 Control and verify cost changes
 Prevent and minimize cost changes.
 Adapt and improve cost changes.

 What can go wrong in project management?

An inexperienced project manager: A project manager who does not have a certain amount of
work and experience may cause the project to fail.

Clear determination of goals: Before starting a project, clear goals should be defined and
communicated to team members.

Not following a clear process: If a project team does not follow any process, things will quickly
get confusing. You need to have a structure that keeps the whole team focused.

Inadequate resource allocation: Improper use of resources, tools, team members, time or
finance tends to affect the success of a project. Prioritize resource allocation based on project
priorities and critical path activities. You can also use resource management tools and software
to streamline resource allocation processes and optimize resource utilization.

Lack of stakeholder communication: Identify key stakeholders and their respective roles and
responsibilities. Choose your preferred means of communication (written, verbal, or face-to-
face) and stick to it.

Not using project management software: Smart project managers always know how to make
the most of the technology and tools that come with it. Most successful companies use at least
one or more project management tools to get things done faster.

Scope creep cannot be managed: Scope creep in project management is one of the biggest
causes of project failure. One way to prevent scope creep is to start involving sponsors in the
scope planning process. Offer your comment and ask for their suggestions and recommendations
as well.

Micromanaging a team: A good leader is someone who trusts his team members and gives
them the freedom to make their own choices.

Ranky-PM-12: Best practice for project presentations in engineering project management

o Know your audience

o Create a concise agenda
o Use visuals
o Practice
o Prepare for the worst:
o Watch the clock
o Don’t forget to summarize
o Ask for feedback