ENMF 527 Project Management Concepts PDF

ENMF 527 – Project Management Concepts PMI: Passing rate changes each year. When graduated, PM Concepts: Learning Objectives the students need to take this exam to earn this certificate...

ENMF 527 – Project Management Concepts PMI: Passing rate changes each year. When graduated, PM Concepts: Learning Objectives the students need to take this exam to earn this certificate Definition of a project and its attributes Key constraints within which a project must be managed Life cycle of a project Definition of project management Elements of the project management process Implications of global project management Project Management Institute (PMI) Benefits of project management Key words: objective, interrelated task, and resources. Project, Defined A project is an endeavour to accomplish a specific objective through a unique set of interrelated tasks and the effective utilization of resources. Objective: To organize a graduation celebration party in a Attributes of a Project month and within a budget of $3000. (may include a Has a well-defined objective statement of expected benefits or outcomes) defined in terms of: end product or deliverable, Task: advertising the event, rent a place, game planning, schedule, and budget order drinks and foods, speech and performance, security, etc. Composed of a series of interdependent tasks Resources: people, food facilities, video and/or audio Utilizes various resources equipment, special lighting equipment, photographing Has a specific time frame equipment. Time frame: April 1 to April 30 This is a one-time endeavor.  May be unique or one-time endeavour Sponsor or customer: Student Union or Mech and Manf Mech Dept Has a sponsor or customer Uncertainty: whether, the number of participators. Involves a degree of uncertainty Uncertain various resources Contract viable resources Has a specific time frame Important, if not the company receives penalty/fine May be unique Not repeated / has different parameters ENMF 527 Notes – Project Management Concepts Page 2 of 9 ENMF 527 Notes – Project Management Concepts Page 3 of 9  Examples of Projects Planning a wedding Designing and implementing a computer system Hosting a holiday party Designing and producing a brochure Executing an environmental clean-up of a contaminated site Holding a high school reunion Performing a series of surgeries on an accident victim Scope: all the work that must be done in order to produce all the Constraints project deliverables, satisfy the customer (acceptance criteria and Scope requirements) and accomplish the project objectives. o deliverables must meet the requirements or Quality: satisfaction of customer. acceptance criteria agreed upon Time: normally expressed in Gantt chart Quality Budget: o Customer expectations. Resource Schedule: Timetable Risk = uncertainty Budget o amount the sponsor or customer has agreed to pay for the accepted project deliverables Resources o People, materials, equipment, facilities, and so on. Risks Customer satisfaction ENMF 527 Notes – Project Management Concepts Page 4 of 9  1. inclement weather Unforeseen Circumstances 2. organization and human factors Unforeseen circumstances may jeopardize achievement of the project objective. 3. design uncertainties The challenge facing the project manager is to prevent, 4. supply chain management anticipate, and/or overcome such circumstances. 5. shortage of key staff Good planning and communication are essential 6. technical problems (redesign, modifications) o to prevent problems from occurring & minimize their Example: Los Angelos Wildfire – not using UpToDate technologies impact but relying on traditional wildfire contamination methods Lifecycle: initiating, planning, performing, and closing The Project Life Cycle Projects are “born” when a need is identified by the customer. Project life cycles vary in length, from a few weeks to several years. Not all projects formally go through all four phases of the project life cycle. Project chart: internally used Phase 1 Initiating The first phase involves the identification of a need, problem, or opportunity. The need and requirements are usually written by the customer into a document called a project charter or request for proposal (RFP). In terms of RFP, contractors will develop and submit proposals. The winning contractor and customer will sign a contract. ENMF 527 Notes – Project Management Concepts Page 5 of 9  Phase 2 Planning Example: Finite Element Method / Aspen Hyses Software This phase ends with a roadmap, or game plan, that shows Simulation how the project scope will be accomplished within budget and on schedule, i.e. a feasible project plan. Project plan determines what needs to be done (scope, deliverables), how it will get done (activities, sequence), who will do it (resources, responsibility), how much it will cost (budget), and what the risks are. Project Controller, but referred as project manager Phase 3 Performing Idling will cause loss of money (Example: Project The third phase is performing the project. controller sitting idle can cause loss of money for the Different types of resources are utilized company) Results in the accomplishment of the project objective Phase 4 Closing The final phase is closing the project. Perform close-out activities Evaluate performance Invite customer feedback ENMF 527 Notes – Project Management Concepts Page 6 of 9  1. Figure 1.3 – P – Primary Responsibility The Project Management Process 2. Figure 1.3 – S – Secondary Responsibility The project management process involves planning the 3. Figure 1.4 – Network Diagram work and then working the plan. a. Sequence of activities i.e., project management involves a process of first establishing a plan and then implementing that plan to 4. Figure 1.5 – Microsoft Project software accomplish the project objective a. Will autocomplete values 1 Establish project objective. 5. Estimate activity cost 2 Define scope a. Currency exchange 3 Create a work breakdown structure (Figure 1.3) a. Subdivide project scope into “work packages” 4 Assign responsibility (Figure 1.3). 5 Define the specific activities that need to be performed. 6 Sequence activities: project network diagram (Figure 1.4) 7 Estimate activity resources 8 Estimate activity durations. a. How long will it take to complete each activity? 9 Develop project schedule (Figure 1.5) 10 Estimate activity cost. a. Based on the types and quantities of resources required for each activity. 11 Determine budget. ENMF 527 Notes – Project Management Concepts Page 7 of 9  Controlling Projects Performing the work. Baseline plan: a graphical or tabular “road map”. Monitor and control progress. Measure actual progress and compare it to planned progress. Control changes: take corrective action if the project is behind schedule, overrunning the budget, or not meeting technical specifications. Example: Chinese hotels don’t want to outsource project Global Project Management management because it will require additional set of An adding unique dimension to managing project. competencies such as getting in touch with the Chinese government Culture differences and multinational economic transactions Multinational project team Global project management requires an additional set of competencies Technology helps global project management. Project Management Associations Project Management Institute (PMI): founded in 1969, 350,000 members in more than 170 countries PMI publishes A Guide to the Project Management Body of Knowledge (PMBOK® Guide) PMI offers a certification program ENMF 527 Notes – Project Management Concepts Page 8 of 9  Some other associations can be found from Appendix C Benefits of Project Management Satisfied customers Additional business Expansion of career opportunities Satisfaction of being on a winning team Improved knowledge and skills When projects are successful, everybody WINS ENMF 527 Notes – Project Management Concepts Page 9 of 9  ENMF 527 – Identifying and Selecting Projects Learning objectives How projects are identified and selected A project charter Outsourcing projects using a request for proposal (RFP) The proposal solicitation process Identifying Needs, Problems, or Opportunities Recognize a need, problem, or opportunity Problem: is an unknown gap between the present state and the Clearly define the problem or need expected state. Quantify the problem Determine the budget Opportunity: is a known gap between the present state and the expected state Prepare a request for proposal Select the project(s) with the greatest benefit for the cost expended  Project Selection Develop a set of criteria against which the project will be evaluated List assumptions Gather data and information for each opportunity Evaluate each opportunity against the criteria Project charter example: Suncor works with internal Project Charter employees and creates a proposal and gives it to Project charter is a formal project authorization document, it contractor is also called project authorization or project initiation document. Key points 1) Clear goals The main contents in project charter include the fund 2) Feasibility (project) approval from the sponsor, the key conditions and 3) Benefits of company - deliverables parameters, and the framework for developing a detailed baseline plan Figure 2.2 - Example There is no standard format for this document. General guidelines for drafting a project charter: 1) Project title 2) Purpose 3) Description 4) Objectives 5) Success criteria or expected benefits 6) Funding 7) Major deliverables 8) Acceptance criteria 9) Milestones schedule 10) Key assumptions 11) Constraints ENMF 527 Notes – Needs Identification Page 2 of 6  12) Major risks 13) Approval requirements 14) Project Manager 15) Reporting requirements 16) Sponsor designee 17) Approval signature and date ENMF 527 Notes – Needs Identification Page 3 of 6  Request for Proposal (RFP) Some companies may use a template proposal: State, comprehensively and in detail, what is required, from Figure 2.3 – Example the customer’s point of view 1) Major goal – Increase company sales Enable contractors or a project team to understand what When completed creating proposal, shred the papers the customer expects so that they can prepare a thorough according to NDA (Non-disclosure agreement) proposal Types of contracts The need may be communicated informally—and sometimes only orally 1) Fixed price Guidelines for drafting a formal RFP to external contractors: 2) Based on the cost 1) Project objectives Due Date of proposals 2) Statement of work (SOW) 1) Before 12AM, the proposal is valid. If not, the 3) Customer requirements proposal is invalid/rejected. 4) Deliverables 5) Acceptance criteria When submitting proposals: 6) customer-supplied items 1) Use Canada Post Registered Mail method 7) approvals required by the customer 8) type of contract 2) In-person method 9) the payment terms Contractor Proposal 10) the required schedule for completion 11) instructions for the format and content of the 1) Fairness contractor proposals 2) Have legal team read it 12) due date for proposals 13) evaluation criteria 14) occasionally will indicate the funds the customer has available ENMF 527 Notes – Needs Identification Page 4 of 6  Organizations: Soliciting Proposals o Canadian Manufacturing Imports & Exports Methods: advertise o Identify a selected group of contractors in advance Not talking privately in competitiveness and sending each an RFP o Advertise in certain business newspapers Process considered a competitive situation Don’t provide information that is not provided to all contractors May hold a bidders’ meeting to explain the RFP and answer questions Not all use RFP Some companies want best quality and lowest cost (cross-eyed) A Good RFP - doesn’t work A good RFP allows contractors or a project team to understand Don’t be ambiguity – feasibility is questionable what the customer expects so that they can prepare a thorough proposal that will satisfy the customer’s requirements at a Specify customer expectations clearly realistic price. ENMF 527 Notes – Needs Identification Page 5 of 6 ENMF 527 Notes – Needs Identification Page 6 of 6  ENMF 527 – Developing Project Proposals Learning Objectives Building relationships with customers and partners Proposal marketing strategies Decision making to develop a proposal Creating winning proposals o proposal preparation process and elements that may be included in a proposal o pricing considerations o customer evaluation of proposals o types of contracts between the customer and the contractor o Measuring success of proposal efforts Building Relationships with Customers and Partners Interpersonal skills Relationships establish the foundation for successful CME (Canada Manufacturers & Exporters) funding and contract opportunities. > $20 gift Personal basis “Human behavior in organization” course – Ethics Contacts with potential clients should be frequent. Contacts with potential clients Focus on customer needs rather than potential contract Stay in touch, professional level opportunities. Build trust Establish and build trust Have integrity Ethical behaviour  First impression First impression Maintain a positive and can-do attitude Formal wear on interviews Build credibility based on performance Put the client first Build a personal network rather than rely on an individual. ENMF 527 Notes – Proposed Solutions Page 2 of 13  R v Ron Engineering and Construction (Eastern) Contracts & the Tendering Process Ltd, of 1981 is the leading Supreme Court of There are two separate contracts arising in the tendering Canada decision on the law of tendering for contracts. process The case concerned the issue of whether the acceptance of a call for tenders for a construction job Contract A: could constitute a binding contract. The Court held that o Owner’s request for tenders constitutes an offer indeed in many cases the submission of an offer in o Contract A is formed when this offer is accepted response to a call for tenders constitutes a contract (upon the submission of each bid) separate from the eventual contract for the construction. With the release of the decision, the Contract B tendering process practiced in Canada was o The construction contract itself fundamentally changed. o 1972, $150,000, $630,000 o 1981 Contract A: o A unilateral contract arising automatically upon the submission of a tender Contract B: o The contract awarded upon the tender’s acceptance ENMF 527 Notes – Proposed Solutions Page 3 of 13  Pre-RFP/Proposal Marketing Should not wait until formal RFP solicitations are announced before starting to develop proposals Develop relationships with potential customers Maintain frequent contacts with past and current customers Be familiar with a customer’s needs and requirements Consider this marketing or business development; no cost to the customer May prepare an unsolicited proposal Efforts are crucial to the foundation for winning a contract ENMF 527 Notes – Proposed Solutions Page 4 of 13  Decision to Develop a Proposal Factors to consider: o competition o risk o mission o extension of capabilities o reputation o customer funds o proposal resources o project resources Be realistic about probability of winning the contract A lot of non-winning proposals can hurt a contractor’s reputation Creating a Winning Proposal Think about a proposal to win a project for organizing a festival in MME department A selling document – not a technical report Not for an engineer, but for a general audience Convince the customer that you are the best one to solve the problem Understanding the needs Highlight the unique factors that differentiate you from Uniqueness (better than others) competing contractors Special connections Emphasize the benefits to the customer Approaches Write in a simple, concise manner Address requirements as laid out in the RFP Be realistic in scope, cost, and schedule ENMF 527 Notes – Proposed Solutions Page 5 of 13  Large project done by team: >$10 million Proposal Preparation Can be a straightforward task performed by one person or a Medium project done by one individual: