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Engineering Project Management

Engineering Project Management . Spacecraft Design Tuesday, January 21, 2003 M. McGrath. Project Management .

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Engineering Project Management

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  1. Engineering Project Management Spacecraft Design Tuesday, January 21, 2003 M. McGrath

  2. Project Management • Project Management is the Science and Art of Enhancing the Probability of Success by Inspired Leadership using Structured Techniques for Planning that Integrate Technical Performance, Scheduling and Budgeting (1). (1)-Fundamentals of Space Systems - Pisacane and Moore

  3. Project Management • Guide and Direct the effort • Science and Art • Enhancing the Probability of Success • Leadership (Inspired or not) • Structured Techniques for Planning • Integrate Technical Performance, Scheduling and Budgeting

  4. Elements of Management • Request for Proposal (RFP) • Proposal Preparation • Schedule and Costs • Types of Contracts (CPFF;FP) • Management Tools (PERT/Gantt ; WBS) • Project Organization • Configuration Management • Monitoring, Communication and Decision Making • Production and Quality Control - Documentation • Test and Checkout

  5. Objectives of a Project Management Structure • Deliver a product that meets the requirements of the project’s objectives. (Systems Engineering) • Deliver a product that meets the requirements of the contract delivery schedule • For commercial companies: meet profit objectives

  6. Prerequisites • Must have adequate resources and facilities available to meet the delivery schedule • Terms of the contract must be realistic and adequate to cover the cost to perform under the contract

  7. Project Management Resources • Administrative • Management, Infrastructure, Overhead, Building, etc. • Engineering • Scientists, Engineers, Technicians, Outside vendors

  8. Continued • Cost Management • Estimating, Accounting, Cash Flow, Direct/Overhead Rate, Earned Value, Profit • Contract Law • Negotiations • Scheduling

  9. Project Manager’s Authority • Technical Decisions • Directing the design approach • Selecting subsystems or components • Identifying type and scope of tests • Commercial Decisions • Make or Buy • Selecting/recommending subcontractors or vendors

  10. Continued • Administrative Decisions • Selecting and assigning personnel • Scheduling personnel, resources and equipment • Monetary Decisions • Determining the expenditure of funds

  11. Project Procurement • RFP -- Request for Proposal • Cover Letter • Specifications • Contract Schedule • Technical Proposal Requirements • Cost Breakout (Details and Depth) • General and Administrative Clauses • Supplemental Data

  12. Do you participate? Since contract gets awarded to only one company — unsuccessful efforts can be a loss. Considerations: 1. Technical Resources 2. Facilities 3. Workload 4. Competition — Advantages and Experience 5. Delivery ... Reasonable? 6. Risks? Project Procurement (Continued)

  13. Technical Considerations and Performance Specifications • Careful Consideration and Review • Primary Analysis • Design approach that satisfies requirements • Secondary Analyses • Design approach that is most compatible with resources, experiences and facilities

  14. System Design Considerations • Translation of the technical performance requirements into the system technical approach. • Dividing the system into tiers of design • Selecting feasible subsystem designs that are compatible with each other, and will satisfy specification requirements

  15. Continued • Reviewing and revising the system design approach so as to optimize from the point of view of: • cost • required performance • schedule • Preliminary Block Diagram • Work Breakdown Structure

  16. Preparation of the Proposal • Format of the Proposal: Presentation, Rules, Length, etc. • Areas of work that need to be included • Evaluation Factors: • Criteria for scoring • Weighing of factors • Proposal Outline

  17. Continued • Proposal Language: How best to get your point across • Technical Description • Costing • Scheduling • Management — facilities, personnel, experience • Team Review

  18. Contracts • Fixed Price and Cost Reimbursable • Fixed Price • Cost is established at the signing of the contract, and assuming no changes are made, the price remains fixed. • Cost Reimbursable • Contractor is reimbursed for all or part of the costs incurred in the execution of the contract.

  19. Factors Influencing Contract Selection • Complexity of the design • Low Complexity... Fixed Price • High Complexity ... Cost Reimbursable • Risk Assumed by the Contractor • Low Risk ... Fixed Price • High Risk ... Cost Reimbursable

  20. Continued • Period of Contract ... Rate Changes, Overhead Changes, Technical Changes • Competition • Many bidders may change a cost reimbursable contract to a fixed price. This is generally more desirable from the customer’s point of view.

  21. Types of Fixed Price Contracts • Firm Fixed Price (FFP) • Contractor agrees to deliver to specification for a firm, fixed price. • Fixed Price with Escalation Contract • certain costs (labor rates, materials, overhead) can be adjusted

  22. Continued • Fixed Price with Redetermination Contract • Upward and downward adjustment • Downward adjustment • Redetermination during life of contract • Redetermination after life of contract • Fixed Price Incentive (Minimal R&D) • Long periods of time / Large production quantities • Reward / Penalize cost control of manufacturing and gen. admin.

  23. Two Step Procurement • First solicitation made for Technical Proposals • Some selected for Concept Study • Effective at identifying problems early • Information provided to proposer • Minimizes time spent

  24. Cost Type Contracts • Greatest Risk on Customer • Used when there is significant Research and Development (R&D) • Wise to use contractor who: • has experience • has history of performance

  25. Continued • Customer counts on contractor giving his best effort. Cost overruns typically result in a “reputation” that can be factored in during subsequent efforts. • No incentive for efficient operation • Two Types of Cost Type Contracts • Cost Plus Fixed Fee (CPFF) • Cost Plus Incentive Fee (CPIF)

  26. Cost Plus Fixed Fee (CPFF) • Fixed fee or profit as % of expected contract cost • Contractor is reimbursed for all expenses • Fee can change when costs incurred are beyond control of contractor • Scope change, strike, failure of customer to deliver • Contractors generally try to meet targets

  27. Continued • Overruns indicate poor management, in effect, contractor is in wrong business • Justification for use • Heavy R&D, Difficult to estimate cost, Bidding to a performance specification • Customer Protection • Clause insertion • Subcontract approval, allowable costs, negotiated overhead rates

  28. Cost Plus Incentive Fee (CPIF) • Compromise between Fixed Price and CPFF • Provides for the reimbursement of all allowable costs and a fee based on an incentive formula

  29. Risk • Purpose of a commercial organization is to make a profit • Companies may be willing to bid and take a loss if: • there is expectations of more units to be built • if they can keep key people working during a slack period

  30. Project Management Tools • PERT/GANTT Charts • Program Evaluation Review Technique • Activity — element of work • Event— Start or Completion Point • Network — Graphic representation of a program consisting of activities and events which are shown as interconnected paths • Critical Path — the path of a network that requires the longest period of time to complete

  31. Continued • Integrated Budgeting Tools — % Complete; % Expended • Microsoft Project

  32. Uncertainty Reducing Techniques • To reduce requirement and development uncertainties • configuration management • limited state of the art advances (upper bound on achievable performance) • successive limited objectives (distinct development phases) • distinct development models and prototypes

  33. Continued • early and repeated testing (do it!) • incremental improvements • parallel development (comparison but costly) • To reduce dynamic uncertainties • keep the options open • technological transparency

  34. Configuration Management • Configuration of a product is subject to continuous change during development. Desirable, but needs to be controlled. • Configuration management ensures that a product meets requirements, and that any changes in the requirements are evaluated, identified, controlled and recorded.

  35. Continued • Specifications form a major portion of the baseline which serves as a point of departure for future work. • Configuration items partition the product into a physical hierarchy that force the identification of interfaces. • If one assigns a baseline to each configuration item and to each interface, progressive refinement of the product can proceed at any subsystem level in a systematic manner.

  36. Uncertainty and Risk • Three related situations: • Risk: describe all possible outcomes, and assign meaningful occurrence probabilities to each. • Uncertain: all alternatives are known but no objective basis to assign probabilities • Ignorance: all the alternative outcomes cannot be defined, let alone their occurrence probabilities. • Known unknowns and unknown unknowns

  37. Odds and Ends • Hiring • Talent, desire, enthusiasm • Management • Time, attention, direction • 2 PI 5 Rule of costing

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