Managing Engineering and Technology Managing Engineering and Technology Third EditionThird EditionBabcock and MorseBabcock and Morse

Project Planning and Project Planning and AcquisitionAcquisition

Chapter 14Chapter 14

D ecision Mak ing

P lanning

O rganizing

Leading

C ontro lling

Managem ent Functions

R esearch

D esign

Production

Q uality

Marketing

Project Managem ent

Managing Technology

Tim e Managem ent

E thics

C areer

Personal Technology

Managing Engineering and Technology

Advanced OrganizerAdvanced Organizer

Chapter ObjectiveChapter Objective

• Describe the management tools Describe the management tools used in project planningused in project planning

A ProjectA Project

A project is a one-time job A project is a one-time job that has definite starting that has definite starting and ending points, clearly and ending points, clearly defined objectives, scope, defined objectives, scope, and (usually) a budget.and (usually) a budget.

Essential Considerations of Essential Considerations of a Projecta Project

• CostCost

• ScheduleSchedule

• PerformancePerformance

Project Proposal ProcessProject Proposal Process

• Description of what is to be Description of what is to be accomplishedaccomplished

• Proposal or estimate of timeProposal or estimate of time

• Proposal or estimate of costProposal or estimate of cost

Project Proposal ProcessProject Proposal Process

• Pro-active businesses prepare in Pro-active businesses prepare in advanceadvance• Technical capabilities/skills/skill Technical capabilities/skills/skill

mixmix• Assessment of future technologiesAssessment of future technologies• Assessment of future marketsAssessment of future markets

• Proposals are expensive to Proposals are expensive to completecomplete

Proposal PreparationProposal Preparation

• Based on RFPBased on RFP

• Statement of Work (SOW)Statement of Work (SOW)

• ScheduleSchedule

• SpecificationsSpecifications

• Standard ClausesStandard Clauses

Proposal PreparationProposal Preparation

• Government vs. CommercialGovernment vs. Commercial

• Reviewed extensively by both Reviewed extensively by both partiesparties

• May become basis for contract May become basis for contract (including 1st and 2nd tier (including 1st and 2nd tier specifications)specifications)

Managing a ProjectManaging a Project

Close Project

M onitor and Control Progress

Execute the Plan

Plan the Project

Define the Problem

Define the ProblemDefine the Problem

• What is the Purpose?What is the Purpose?

• What Client Need Is Being What Client Need Is Being Satisfied by the Project?Satisfied by the Project?

Plan the ProjectPlan the Project

• What must be done?What must be done?

• Who will do it?Who will do it?

• How will it be done?How will it be done?

• When must it be done?When must it be done?

• How much will it cost?How much will it cost?

• What do we need to do it?What do we need to do it?

Effective PlanningEffective Planning

• Plan to planPlan to plan

• People implementing plan People implementing plan should be involved in preparing should be involved in preparing planplan

• What is the Purpose?What is the Purpose?

PlanningPlanningMission StatementMission Statement

• What do we do?What do we do?

• For whom do we do it?For whom do we do it?

• How do we go about it?How do we go about it?

PlanningPlanningDevelop ObjectivesDevelop Objectives

• SpecificSpecific• MeasurableMeasurable• AttainableAttainable• RealisticRealistic• Time-limitedTime-limited• Consistent with organizational Consistent with organizational

plansplans

Project Planning ToolsProject Planning Tools

• SOWSOW

• Scope of workScope of work

• Itemized tasks to be performedItemized tasks to be performed

• DeliverablesDeliverables

• Data ItemsData Items

• ReportsReports

Project Planning ToolsProject Planning Tools

• Milestone ScheduleMilestone Schedule

• Key datesKey dates

• May include entrance and May include entrance and exit criteria for each exit criteria for each milestonemilestone

Project Planning ToolsProject Planning Tools

• Work Breakdown Structure (WBS)Work Breakdown Structure (WBS)• Level-by-level subdivision of work to Level-by-level subdivision of work to

be performed in a contractbe performed in a contract• Common framework or outlineCommon framework or outline• Complicated task is subdivided into Complicated task is subdivided into

several smaller tasksseveral smaller tasks• Process continued until task can no Process continued until task can no

longer be subdividedlonger be subdivided

Project Planning ToolsProject Planning Tools

• Gantt Charts (Henry L. Gantt)Gantt Charts (Henry L. Gantt)

• TasksTasks

• Precedence RelationshipPrecedence Relationship

• DurationDuration

Project Planning ToolsProject Planning Tools

• Network Scheduling SystemsNetwork Scheduling Systems• Critical Path Method (CPM); Critical Path Method (CPM);

constructionconstruction• Program Evaluation Review Program Evaluation Review

Technique (PERT); aerospace and Technique (PERT); aerospace and related industryrelated industry• OptimisticOptimistic• LikelyLikely• PessimisticPessimistic

Types of ContractsTypes of Contracts

• Fixed-PriceFixed-Price

• Firm Fixed-priceFirm Fixed-price

• Fixed-price with escalationFixed-price with escalation

• Fixed-price, redeterminableFixed-price, redeterminable

• Fixed-price, incentiveFixed-price, incentive

Types of ContractsTypes of Contracts

• Cost TypeCost Type

• Cost plus incentive feeCost plus incentive fee

• Cost plus fixed-feeCost plus fixed-fee

• Time and materialsTime and materials