Lec #1

1. ENGINEERING PROJECT MANAGEMENT Overview and Concepts introduction to project management

2. Course Name Engineering Project Management Instructor Dr. Nadeem Ehsan Ph.D. University of Michigan, Ann Arbor, USA Semester Spring, 2008 Credit Hours Three (03) Email m4nadeem@yahoo.com Required Text Project Management, A Managerial Approach Fourth Edition By Jack R. Meredith and Samuel J. Mantel. Jr

3. Reference Books 1) Project Management, By Maylor, 2nd Edition Pearson Education Asia 2) Practical Project Management Ghattas R.G, Mckee,F.L, Pearson Education Asia 3) A Guide to the Project Management Body of Knowledge (PMBOK Guide), 2000 Edition, Project Management Institute, Newton Square, Pennsylvania, USA Program Coordinator Tele 051-287-1703

4. Objective of this Course • Understand the concept of project management • Effectively select, plan, implement, control, monitor, assess and terminate the social sector and infrastructure projects. • Manage the schedule and budget of projects with a view to achieve the pre-assigned goals of the organization. • Understand about project manager, project organization and the software used to apply various tools during project management. • Manage change in the scope and requirements of the projects. • Enhance skills to become an effective project manager in any institutional environment.

5. Understand the internal, external and physical environment of an organization, project managers, vendors , and users of the projects’ end products ( deliverables) in the context of project management. • Learn negotiation skills and conflict resolution • Learn project proposal development and fundraising techniques as a project. • Learn economic, financial, technical and managerial feasibility of the projects.

6. Introduction Projects are the building blocks of an investment plan. Due to several economic factors, the investments of various types in the contemporary world are shrinking day by day. The majority of projects do not terminate on time or to budget and they rarely deliver to all the original project specifications due to poor management. The current project management techniques and methods require a departure from traditional approach as it requires improved systems methodology and use of software on project life cycle. The project management is now a profession that has to be learnt by the successful managers for increased customer satisfaction. Project management techniques are equally useful for social sector as well as the infrastructure projects. These techniques are used by the NGOs, consultancy companies, international organizations and the engineering firms.

7. This course will particularly be of a great value to you once you will be the middle and senior level managers, project planners, team leaders, coordinators and volunteers and will be directly or indirectly involved with the projects , or if you are expected to be engaged in such activities in future. The course will be useful for you if you join industry, social sector development organizations, academia, international funding agencies/NGOs, journalism or chose to be independent consultants.

8. Broad Course Contents • The Project Management Framework • Introduction • What is a Project? • What is Project Management • Relationship to other Management Disciplines • Related Endeavors • The Project Management Context • Project Phases and the Project Life Cycle • Project Stakeholders • Organizational Influences • Key General Management Skills • Social-Economic-Environmental Influences • Project Management Processes • Project Processes • Process Groups • Process Interactions • Customizing Process Interactions • Mapping of Project Management Processes

9. Broad Course Contents The Project Management Knowledge Areas • Project Integration Management • Project Plan Development • Project Plan Execution • Integrated Change Control • Project Scope Management • Initiation • Scope Planning • Scope Definition • Scope Verification • Scope Change Control • Project Time Management • Activity Definition • Activity Sequencing • Activity Duration Estimating • Schedule Development • Schedule Control

10. Broad Course Contents • Project Quality Management • Quality Planning • Quality Assurance • Quality Control • Project Human Resource Management • Organizational Planning • Staff Acquisition • Team Development • Project Communication Management • Communications Planning • Information Distribution • Performance Reporting • Project Risk Management • Risk Management Planning • Risk Identification • Qualitative Risk Analysis • Quantitative Risk Analysis • Risk Response Planning • Risk Monitoring and Control

11. Other topic • Scheduling and Networking • Monitoring and Information system • Project Control • Research papers

12. Course Schedule The course consists of 16 Week Schedule out of which there will be One Week for Mid Term examination and One Week for Final Examination.

13. Grade Distribution Mid Term Exam 20 Percent Final Exam 30 Percent Homework/Assignments 10 Percent Quiz 10 Percent Class Participation 10 Percent Group Project 20 Percent

14. Project & Research Paper Instructions In order to create reasonable balance in a group, no group will be consisting of students with similar backgrounds/profession. Groups will be made by the Instructor. Project must be from real life or may be from your own background/work environment/ parent department but it must cover the subject. Topics should be innovative and must have strong relevance with the subject and real life. You may choose organization in public or private sector (Service or Manufacturing). What is due after “Three Weeks” A preliminary draft proposal of one page (along with the name of the participants) for the approval of the instructor. Upon approval a comprehensive proposal will be required.

15. Requirements of Presentations? Professional presentation by the Group on approved topic. Three hard copies of the final project report and one electronic copy must reach course instructor positively on the same day of presentation. Project report must be typed in MS Word in a professional way, double space, 12-size font, with proper references. There will be 10 percent academic penalty on late submissions. Each group will be given 25-30 minutes to present, with 10 minutes of Q&A session.

16. Suggested Topics for Projects • Budgeting and Cost Estimation for Projects • Financial Analysis of Projects • Evaluation Techniques in Project Management • Project Management in Service or Manufacturing Organization • Project Monitoring and Evaluation • Information Systems and Project Control techniques • Applying MS Project or Primavera for a real life Project • Negotiating and Managing Conflicts in a project

17. Instructions for students • To make the learning experience most enjoyable, comfortable and valuable, the students must comply with the following: • Attendance • Must be 100%. The program co-ordinator will grant permission for absentee only for extreme emergency. • Assembly • The students should be in classroom five minutes before schedule time so that he/ she participates in the lesson from the very beginning • Assignments • Must be collected on the notified date. There will be late penalties for assignment. Homework may be submitted via E-Mail and Fax in case individual is out of town/ Country • Project • Is mandatory to qualify. It is to demonstrate professional competence in the application of project management. It comprises of a written report and a presentation by each student. • Examination • Mid term and final exam. Important: There will be surprise quizzes • Code of conduct • The students must comply with the professional ethics introduction to project management

18. OUT LINE FOR TODAY • What is a project? • What is Project Management? • The Context for Project Management • The Project Management Process • Knowledge areas for project management introduction to project management

19. What is a Project? introduction to project management

20. What is a Project? “A project is usually a one-time activity with a well-defined set of desired end results…complex enough that the subtasks required careful coordination and control in terms of timing, precedence, cost and performance.” Project Management: A Managerial Approach Jack R. Meredith and Samuel J. Mantel, Jr. 1995 The assignment of resources to accomplish specific results (deliverables) with a well-defined schedule and budget. Accenture (1999) “something that is contemplated, devised, or planned; a plan; a scheme; an undertaking” The Macquarie Concise Dictionary Third Edition (1998) introduction to project management

21. Project Characteristics A Project… • Has specific objectives • Has a start and end date • Has a budget • Has an ‘owner’/’sponsor’ • Produces specific deliverables • Can vary vastly in size,complexity and duration • May be a phase within a larger project or a phase within a program introduction to project management

22. Operations and Projects • Operations and projects share many characteristics: • Performed by people. • Constrained by limited resources. • Planned, executed, and controlled. • Operations may include activities such as: • Financial management and control • Continuous manufacture • Product distribution • Projects may include activities such as: • Developing a new product or service. • Effecting a change in structure, staffing, or style of an organization. • Developing or acquiring a new or modified information system. introduction to project management

23. Projects are Temporary • Temporary means that every project has a definite beginning and a definite end. • The end is reached: • When the project’s objectives have been achieved, or • When it becomes clear that the project objectives will not or cannot be met and the project is terminated. • Temporary does not necessarily mean short in duration: • many projects last for several years. • The duration of a project is finite: • projects are not ongoing efforts. introduction to project management

24. The Product of a Project is Unique • A product or service may be unique even if the category it belongs to is large. • For example, many thousands of office buildings have been developed, but each individual facility is unique—different owner, different design, different location, different contractors, and so on. • Because the product of each project is unique, the characteristics that distinguish the product or service must be progressively elaborated. • Progressively means “proceeding in steps; continuing steadily by increments” • Elaborated means “worked out with care and detail; developed thoroughly” introduction to project management

25. Costs of Poor Project Management • 31% of all new software development projects are cancelled before completion • 53% of projects cost >189% of original estimates • 16.2% of software projects completed on time and on budget • Average overrun is 222% of original estimates Source: Standish Group, 1995 • A survey on overall applications development projects revealed: • 46% of IT projects were "challenged" (completed over budget and past the original deadline). • 6% of projects succeeded. • 28% of projects failed. Source: Standish Group, 1998

26. What is Project Management? Definition of Project Management: “Project Management is the act of directing and coordinating human and material resources throughout the life of a project to achieve predetermined objectives of • Scope • Quality • Effort • Risk • Time Quality Time Effort Project Scope Risk introduction to project management

27. What is Project Management ? introduction to project management

28. What is Project Management? • Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project • Meeting stakeholder needs and expectations involves balancing competing demands among: • Scope, time, cost, and quality. • Stakeholders with differing needs and expectations. • Identified requirements (needs) and unidentified requirements • (expectations). introduction to project management

29. Hints & Tips Techniques How to produce? How to produce? Project Management consists of Work Products Roles GuidingPrinciples Who is responsible? What to deliver? Processes 1 2 3 7 8 introduction to project management

30. Stages of PM introduction to project management

31. The Triple Constraint of ProjectManagement introduction to project management

32. Managing triple constraint 1. Builds the dashboard you use for controlling the project. 2. Without this dashboard, you have no way of knowing where the project is currently headed, how far off course it is, or what action to take to get it back on course. 3. If you neglect this function, you and all project stakeholders are subject to unhappy surprises. 4. Uncontrolled projects rarely reach their goal. Scope(Performance) Client Agreement Time(Schedule) Cost(Budget) Manage the Triple Constraint introduction to project management

33. Project Management and OtherManagement Disciplines introduction to project management

34. The Context for Project Management • The Project Life Cycle • Project Stakeholders • Organizational Influences • Key General Management Skills introduction to project management

35. The Project Life Cycle • The project life cycle serves to define the beginning and the end of a project • The life cycle is normally divided into a number of phases • Each project phase is marked by completion of one or more deliverables • A deliverable is a tangible, verifiable work product such as a • feasibility study, a detail design, or a working prototype introduction to project management

36. A Generic Life Cycle introduction to project management

37. Project Stakeholders • Project stakeholders are individuals and organizations who are actively involved in the project, or whose interests may be positively or negatively affected as a result of project execution or successful project completion • The project management team must identify the stakeholders, determine what their needs and expectations are, and then manage and influence those expectations to ensure a successful project introduction to project management

38. Key Stakeholders • Key stakeholders on every project include: • Project manager • the individual responsible for managing the project. • Customer • the individual or organization who will use the project product • Performing organization • the enterprise whose employees are most directly involved in doing the work of the project. • Sponsor • the individual or group within the performing organization who provides the financial resources, in cash or in kind, for the project. • Project team members • the people doing the work on the project to “realise” a product introduction to project management

39. Organizational Influences • Conduct of Projects is influenced by: • Organizational Structure • range from fully functional to totally project oriented • Organizational Culture • Conservative or Aggressive • Participative or Authoritarian • Organizational Systems • Suitability of support functions such as finance, human resource management or strategic planning for project work introduction to project management

40. Influence of Organizational Structure on Projects introduction to project management

41. Key General Management Skills • General management encompasses planning, organizing, staffing, executing, and controlling the operations of an ongoing enterprise. • General management also includes supporting disciplines such as computer programming, law, statistics and probability theory, logistics, and personnel. • Some general management skills are critical for successful project management: • • Leading • • Communicating • • Negotiating • • Problem Solving • • Influencing the Organization introduction to project management

42. LEADERSHIP introduction to project management

43. Leadership is about integrity • Transformation leaders interact with team members in a positive and inspiring manner. • A leader has a vision that is fueled by an overall confidence and willingness to take risks. • Sharpens and utilizes people’s skills, intelligence, and talents to attain a goal, create an excellent product, accomplish a task or mission, or reach goals and objectives introduction to project management

44. Communicating • Exchange of information • Internal & external • Formal & informal • Vertical and horizontal introduction to project management

45. Negotiating • Negotiating involves conferring with others to come to terms with them to reach an agreement. Negotiations can be on the following: • Scope, cost and schedule • Changes to scope ,cost and schedule • Contract terms and conditions • Assignments and resources introduction to project management

46. Problem solving • A combination of problem definition and decision making • Problem definition requires distinguishing between causes and symptoms • Decision making includes analyzing the problem to identify viable solution introduction to project management

47. Influencing the organization • Ability to get things done • Requires an understanding of both the formal and informal structures of all the stakeholders • An understanding of the mechanics of power and politics introduction to project management

48. Complete Establish Execute Three Stages of a Project • Define project objectives, scope and approach, mobilise project team • Execute the work plan to achieve desired outcome • Wrap up and transition introduction to project management

49. Complete Establish Execute Project Stages & Project Management Model • Define project objectives, scope & approach, mobilise project team • Execute the work plan to achieve desired outcome • Wrap up and transition Project Selection Confirm Definition Complete Project Plan the Execution Report Status Control the Work Organise Resources introduction to project management

50. Project Selection • Define Project Scope • Define Project Objectives • Define Approach • Define Business Case • Select Best Projects Project Stages & Project Management Model Establish Project Selection Confirm Definition introduction to project management