Engineering Management Handouts PDF

Guagua National Colleges Inc. Sta. Filomena, Guagua, Pampanga COLLEGE OF ENGINEERING ENGINEERING MANAGEMENT _________________________________________ _________________________________________ ALEX M. BANTIMANO, SO-I...

Guagua National Colleges Inc. Sta. Filomena, Guagua, Pampanga COLLEGE OF ENGINEERING ENGINEERING MANAGEMENT _________________________________________ _________________________________________ ALEX M. BANTIMANO, SO-II, RCE, RMP Instructor (PT) MA. LYDIA P. SACDALAN, RCE, ME-1 OIC-Dean, College of Engineering Control No.:______________ 1 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP THE FIELD OF ENGINEERING MANAGEMENT THE FUNCTIONS OF THE ENGINEER Since prehistoric times, mankind has benefited from the various tools, equipment, and projects developed by engineers. Among these are the following: The stone bladed axe which was a very useful tool; and the irrigation system used to promote crop growing – 6000 to 3000 B.C. The pyramids of Egypt – 3000 to 600 B.C. Road building by the Romans – 600 B.C. to A.D. 400 The production of paper and gunpowder by the Chinese – 190 A.D. to 1600 A.D. The production of steam engine and the spinning and weaving machinery – 1601 A.D. to 1700 A.D. The manufacture of cars and home appliances – modern times. A listing of all useful tools, equipment, and projects developed and produced by engineers will be sufficient to produce volumes of books. These contributions indicate that engineers have become and indispensable segment of the world’s professions. This expectation will continue for a long time. Even as engineers are currently producing solutions to many of the difficulties faced by mankind, much is still expected of them. Their outputs, new or improvements of old ones are very much needed in the following specific problem concerns: 1. The production of more food for fast growing world population. 2. The elimination of water and air pollution. 3. Solid waste and materials recycling. 4. The reduction of noise in various forms. 5. Supplying the increasing demand of energy. 6. Supplying the increasing demand of mobility. 7. Preventing and solving crimes. 8. Meeting the increasing demand for communication facilities Specifically, the functions of engineering encompass the following areas: 1. Research – where the engineer is engaged in the process of learning about nature and codifying this knowledge into usable theories. 2. Design and Development – where the engineer undertakes the activity of turning a product concept to a finished physical item. Design for manufacturability and value engineering teams (a feature of some companies) are charged with improvement of designs and specifications at the research, development, design, and production stages of product development. 3. Testing – where the engineer works in a unit where new products or parts are tested for workability. 4. Manufacturing – where engineer is directly in charge of production personnel or assumes responsibility for the product. 5. Construction – this is where the construction engineer (a civil engineer) is either directly in charge of the construction personnel or may have responsibility for the quality of the construction process. 6. Sales – where the engineer assists the company’s customers to meet their needs, especially those that require technical expertise. 2 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP  7. Consulting – where the engineer works as consultant of any individual or organization requiring his services. 8. Government – where the engineer may find employment in the government performing any of the various tasks in regulating, monitoring, and controlling the activities of various institutions, public or private. 9. Teaching – where the engineer gets employment in a school and is assigned as a teacher of engineering courses. Some of them later become deans, vice presidents, and presidents. 10. Management – where the engineer is assigned to manage groups of people performing specific tasks. WHAT IS A CIVIL ENGINEER AND HOW TO BECOME ONE? ACCORDING TO RA 544- CIVIL ENGINEERING LAW Section 2 Definition of terms. — a. The practice of civil engineering within the meaning and intent of this Act shall embrace services in the form of consultation, design, preparation of plans, specifications, estimates, erection, installation and supervision of the construction of streets, bridges, highways, railroads, airports and hangars, port works, canals, river and shore improvements, lighthouses, and dry docks; buildings, fixed structures for irrigation, flood protection, drainage, water supply and sewerage works; demolition of permanent structures; and tunnels. The enumeration of any work in this section shall not be construed as excluding any other work requiring civil engineering knowledge and application. b. The term "civil engineer" as used in this Act shall mean a person duly registered with the Board of Examiners for Civil Engineers in the manner as hereinafter provided. Section 5 Qualifications for examination. — Any person applying for admission to the civil engineering examination as herein provided shall, prior to the date of the examination, establish to the satisfaction of the Board that he has the following qualifications: a. Be at least twenty-one years of age; b. Be a citizen of the Philippines; c. Be of good reputation and moral character; and d. Be a graduate of a four-year course in civil engineering from a school, institute, college or university recognized by the Government or the State wherein it is established. Section 10 Subjects of examination. — Applicants for certificates of registration as civil engineer shall be examined, in the discretion of the Board, on the following subjects: mathematics, including algebra, plane and spherical trigonometry, analytics, descriptive and solid geometry, differential and integral calculus, and rational and applied mechanics; hydraulics, surveying, including highway and railroad surveying; plane, topographic and hydrographic surveying, and advance surveying; design and construction of highways 3 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP  and railroads, masonry structures, wooden and reinforced concrete buildings, bridges, towers, walls, foundations, piers, ports, wharves, aqueducts, sanitary engineering works, water supply systems, dikes, dams, and irrigation and drainage canals. SCOPE OF CIVIL ENGINEERING BOARD EXAM (FOR MAY 2022 BOARD EXAM) An applicant must have a total general average of 70% with grades in every subject given on the examination not lower than 50% should be acquired such as:  MATHEMATICS, SURVEYING, AND TRANSPORTATION ENGINEERING (35%) 1. Calculus Differential Equations Integral Calculus 2. Different Equations First Order Differential Equation Higher-Order Differential Equations 3. Engineering Data Analysis 4. Numerical Methods 5. Physics for Engineers 6. Engineering Economy Present Economy Study Time-Value Relations Selection Among Alternatives: Present, Annual, and Future Worth; Internal and External Rate of Return Method 7. Construction Surveying and Layout 8. Material for Constructions 9. Quantity Surveying 10. Construction Occupational Safety and Health 11. Transportation Engineering Highway Engineering -Highway and Urban Transportation Planning and Economics -Driver, Vehicle, Traffic, and Road Characteristics -Highway Design -Traffic Engineering and Highway Operations -Road and Pavement Design Airport Engineering Ports and Harbors Bridges 12. Construction Management Principles and Methods Engineering Relations and Ethics Contracts & Specifications Construction Project Organization Planning and Scheduling (PERT/CPM) Constructions Estimates Construction Methods & Operations Construction Equipment Operations and Maintenance  HYDRAULICS AND GEOTECHNICAL ENGINEERING (30%) 1. Fluid Mechanics Properties of Fluids Hydrostatics Fluid Flow Concepts and Basic Equations Viscous Flow and Fluid Resistance Ideal Fluid Flow Steady Flow in Closed Conduits Steady Flow in Open Channels 2. Buoyancy and Floatation 3. Relative Equilibrium of Liquids 4 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP  4. Hydrodynamics 5. Soil Mechanics and Foundation Soil Properties and Classification Fluid Flow through Soil Mass Soil Strength and Tests Stresses in Soil Mass Bearing Capacity Compaction Consolidation and Settlement Soil Improvement Lateral Earth Pressures Slope Stability 6. Water Supply Soil Properties  STRUCTURAL ENGINEERING AND CONSTRUCTION (35%) 1. Engineering Mechanics Statics of Rigid Bodies Dynamics of Rigid Bodies Kinematics of Rigid Bodies Strength of Materials 2. Reinforced Concrete Beams and Columns Steel Beams, Columns, Footings, and Connections Prestressed Concrete Beams 3. Construction Materials Testing 4. Application of the Governing Codes of Practice WHAT IS ENGINEERING MANAGEMENT? Engineering management refers to the “activity combining technical knowledge with the ability to organize and coordinate worker power, materials, machinery, and money.” When the engineer is assigned to supervise the work of even a few people, he is already engaged in the first phase of engineering management. His main responsibility is to lead his group into producing a certain output consistent with the required specifications. MANAGEMENT DEFINED Management is a process. It is the process of directing and facilitating the work of people who are organized for a common purpose. It is the process of combining the efforts and resources of the individual with a common interest to achieve a desired objective. Management is a function. it is the function of getting things done through the efforts of others, it is the application of authority and assumption of the responsibility. it is the art of handling people. management properly applied, gives individuals in the same organization the feeling of security, of recognition, of opportunity, and of belonging. Management should be: a. Systematic b. Scientific c. Humanistic sx Management defined as the “creative problem solving-process of planning, organizing, leading, and controlling an organization’s resources to achieve its mission and objectives. THE PROCESS OF MANAGEMENT  PLANNING AND DECISION MAKING 5 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP  – Involves selecting goals and objectives, as well as the actions to achieve them; it requires decision-making, that is choosing the “best” from among alternatives.  ORGANIZING – Involves establishing an intentional structure of roles for people to fill in an organization. – The process of allocating and arranging human and non-human resources so that plans can be carried out successfully.  STAFFING – Involves filling, and keeping filled, the positions in the organization structure. – Process by which managers select, train, promotes, and retires subordinat  DIRECTING/LEADING – Influencing people so that they will contribute to organizational and group goals.  CONTROLLING – Measuring and correcting individual and organizational performance to ensure that events conform to plans. – Facilitates the accomplishment of plans. – The process of regulating organizational activities so that actual performance conforms to expected organizational standards. HOW ONE MAY BECOME A SUCCESSFUL ENGINEER MANAGER Successful engineer managers do not happen as a matter of chance, although luck is a contributory factor. It is very important for the engineer manager to know the various factors leading to successful management. Kreitner indicates at least three general preconditions for achieving lasting success as a manager. They are as follows: 1. Ability 2 Motivation to manage, and 3 Opportunity ABILITY Managerial ability refers to the capacity of an engineer manager to achieve organizational objectives effectively and efficiently. Effectiveness, according to Higgins, refers to a description of “whether objectives are accomplished”, while efficiency is a description of the “relative amount of resources used in obtaining effectiveness.” □ Be confident in your ability to lead □ Consistently develop your non-technical skills □ Become a dynamic public speaker 6 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP □ Let your team decide on how to solve the problems □ Always give credit to your team when things go right and always take the blame when things go wrong □ Never pretend to know everything □ Find out your team members’ talents □ Focus on getting the most out of everything □ Be able to communicate and delegate effectively □ Seek access to the right people like higher-level MOTIVATION TO MANAGE Many people have the desire to work and finish specific tasks assigned by superiors, but not many are motivated to manage other people so that they may contribute to the realization of the organization’s objectives. A management researcher, John B. Miner, developed a psychometric instrument to measure objectively an individual’s motivation to manage. The test is anchored to the following dimensions. 1. Favorable attitude toward those in positions of authority, such as superiors. 2. Desire to engage in games or sports competition with peers. 3. Desire to engage in occupational or work – related competition with peers. 4. Desire to assert one and take charge. 5. Desire to exercise power and authority over others. 6. Desire to behave in a distinctive way, which includes standing out from the crowd. 7. Sense of responsibility in carrying out the routine duties associated with managerial work. OPPORTUNITY The opportunity for successful management has two requirements: 1. Obtaining a suitable managerial job, and 2. Finding a supportive climate once on the job. 7 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP ORGANIZING TECHNICAL ACTIVITIES What is Organization? Organization is a group of individuals who are cooperating willingly and effectively for a common goal. To be specific; organization seeks to know who is to do and what is to be done. A good executive may be able to secure good results with a poor organization, and a good organization may produce results from a poor executive. But the ideal set up is, a combination of a good organization and a good executive. Structural Organization Structural Organization is the formal arrangements that are established to coordinate all activities in order to implement a given strategy. The Structural Elements of an Organization are: 1. Men. These are the different members of the organization starting from the very top of the last workman in the enterprise. 2. Materials. Represents the materials necessary in the distribution of functions or in the attainment of its objectives. 3. Machine. The tools necessary in producing its desired output. 4. Methods. The procedures and way used in the course of its actions. 5. Money. The financial resources of the organization. The Major Elements of Organizational Structures are: 1. Distribution of functions. The functions to be performed, the groupings of functions, and the vertical and horizontal task relationships among functions. 2. Vertical and horizontal authority relationships (who are the authority to do what) 3. Communication and decision processes. The –manner in which formal decisions are made and by whom. 4. Policies. The decision, rules or guidelines established. Principles of Good Organization 1. Principle of Objective. A clear and complete definition of the objective must be known. Any business concern or any individual must adhere to a definite purpose or aim. For example, if the aim is to make plans and construct a project, then, the entire organization must be built with that idea, and those in the company must think and act in terms of quality of work. 2. Analysis. A sound business judgement attempts to build an organization through full knowledge of the requirements of the business. There should be a study as to whether the project could be finished at the right time and at the right price the client will be able to pay. 3. Simplicity. The simplest organization that will serve to attain the desired objective is considered the best. All activities which are not absolutely necessary, should be eliminated, and those retained should be handle in the simplest practical way. Creation of position should be based on paramount necessity and all activities which do not do not pay in terms of pesos and centavos, should be eliminated. 4. Functionalism. The organization should be built around the main functions of the business and not around the individuals. A function is a normal or characteristic way of doing a task that stands out distinctively by itself. The nature of the business determines the main function of the business. The nature is the proper basis for 8 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP  organization to be established. If an organization of any concern is built around the functions, proper distribution of work could easily be done, thus, eliminating any one man to become so powerful and so dependable upon to be indispensable. 5. Departmentalization. In big organization, the scope of operation can be very broad, necessitating departmentalization to achieve a smoother flow of operations. Departmentalization can be through functions, products, location, or by projects of the organization. 6. Centralization of Authority and Responsibility. In every organization there should be centralized executive control or command authority. This is necessary in order to have authority and responsibility definitely fixed. When there is unity of command, every person knows what he can perform within his scope of authority, knows the things for which he is responsible of, and also whom to report to and consult in case of problems or doubts. 7. Limited Span of Control. The number of subordinates an executive can manage effectively. 9 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP Reason of Organizing -Organizing is undertaken to facilitate the implementation of plans. In effective organizing, steps are undertaken to breakdown the total job into more manageable man-size jobs. Doing these will make it possible to assign particular task to particular persons. In turn, these will help facilitate the assignment of authority, responsibility and accountability for certain functions and task. Organizing Defined -Organizing is a management function which refers to “the structuring of resources and activities to accomplish objectives in an efficient and effective manner. -The arrangement of relationship of positions within an organization is called the structure. The result of the organizing process is structure. Purpose of Organizing 1. Helps to achieve organizational goal. 10 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP  -Organization is employed to achieve the overall objectives of business firms. Organization focuses attention of individuals objectives towards overall objectives. 2. Optimum use of resources. -To make optimum use of resources such as men, material, money, machine and method, it is necessary to design an organization properly. Work should be divided and right people should be given right jobs to reduce the wastage of resources in an organization. 3. To perform managerial function. -Planning, Organizing, Staffing, Directing and Controlling cannot be implemented without proper organization. 4. Facilitates growth and diversification. -A good organization structure is essential for expanding business activity. Organization structure determines the input resources needed for expansion of a business activity similarly organization is essential for product diversification such as establishing a new product line. it also stimulates creativity in managers by organizing. 5. Humane treatment of employees. -Organization has to operate for the betterment of employees and must not encourage monotony of work due to higher degree of specialization. Now, organization has adapted the modern concept of systems approach based on human relations and it discards the traditional productivity and specialization approach. The Purpose of the Structure The main purpose of such a structure is to help the organization work towards its goals. It brings members of the organization together and demarcates functions between them. The structures serve some very useful purposes. They are the following. 1. It defines the relationships between tasks and authority for individuals and departments. 2. It defines formal reporting relationships, the number of levels in the hierarchy of the organization, and the span of control. 3. It defines the groupings of individuals into departments and departments to organization. 4. It defines the system to effect coordination of effort in both vertical (authority) and horizontal (tasks) directions. When structuring an organization, the engineer manager must be concerned with the following: 1. Division of labor – determining the scope of work and how it is combined in a job. 2. Delegation of authority – the process of assigning various degrees of decision- making authority to subordinates. 3. Departmentation – grouping of related jobs, activities, or processes into major organizational subuntis. 4. Span of control – the number of people who report directly to a given manager. 5. Coordination – the linking of activities in the organization that serves to achieve a common goal or objective. 11 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP Formal Organization After a plan is adapted, management will proceed to form an organization to carry out the activities indicated in the plan. Formal organization is the “structure that details lines of responsibilities, authorities and position” what is depicted in the organizational chart is the formal organization. It is “planned structure” and it “represents the deliberate attempt to establish patterned relationships among components that will meet the objectives effectively”. The formal structure is described by management through: Policy manuals Organization chart is a diagram of the organization’s official position and formal lines of authority. The organizational manual provides written descriptions of authority relationship, details the functions of major organizational units, and describes job procedures. The policy manual describes personnel activities and company policies Informal groups Formal Organizations require the formation of formal groups which will be assigned to perform specific tasks aimed at achieving organizational objectives. The formal group is a part of the organization structure. There is an instance when members of an organizational spontaneously form a group with friendship as a principal reason for belonging. This group is called informal group. It is not a part of the formal organization and it does not have a formal performance purpose. Informal groups are oftentimes very useful in the accomplishment of major tasks, especially if these tasks conform to the expectations of the members of the informal group. CLASSIFICATION OF STAFF OFFICERS PERSONAL STAFF – those individual assigned to specific manager to provide needed staff service. SPECIALIZED STAFF – those individuals providing needed staff services for the whole organization. LINE – STAFF RELATIONSHIPS - Line and Staff personnel must work together closely to maintain the efficiency and effectiveness of the organization. THE PURPOSE OF COMMITTEES What is committee? Formal group of persons formed a specific purpose. A group of people chosen or appointed to perform a specified service or function WHY COMMITTEES ARE USED? To save time at general meetings Work of the organization becomes more efficient More members get involved in the detail work of the organization TYPES OF COMMITTEES 1.) Ad Hoc Committee – a temporary committee set up to solve a specific problem or work towards a specific goal. 12 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP  2.) Standing Committee – group of members of a larger body such as a legislature or membership association, appointed for a specific purpose and, usually a specific period of time. CONSTRUCTION PLANNING AND SCHEDULING Construction planning and scheduling are key aspects in integrating all your construction activities and phases needed to complete a given construction project at a given budget and time frame. Proper construction planning and scheduling are important in ensuring that your construction project gets completed on time and within budget. A thoroughly planned construction schedule not only outlines the pace of your work but it dictates how your work gets done. It also helps define your processes, methods, and sequences for when materials are put in place. What are the five phases of construction? There are five major phases in a standard construction project where construction planning and scheduling play critical roles: Initiation. In this phase, your project idea is evaluated to determine its feasibility and whether or not, it should be undertaken. This is the beginning of the life of a project where the project objectives are identified and defined. Planning. This phase includes the further development of the project and outlining the details needed to meet the project goals. In this phase, you identify all the work needed to be done, the tasks and resources required, and the strategy to make all of them possible. Usually, a project budget is prepared by the project manager to provide cost estimates for labour, equipment, and materials. Execution. Welcome to the implementation phase where the project plan is put into motion on site. Project control and communication are essential during the execution phase. The project manager has the power to control the project’s direction through progress reports and activity performance. Any deviation from the plan has to be addressed and corrected. The goal of action is to never deviate from the original plan that’s why progress should always be reported on time. Monitoring. The monitoring phase happens simultaneously with the execution phase and covers all progress and performance measurement related to tracking and ensuring that the project is going according to the construction plan and schedule. Closure. Once all project aspects have been delivered and the client has agreed, the project is now ready for closure. This phase involves all activities related to the final handover to the customer. 13 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP CONTRACTUAL ARANGEMENT (PROJECT DELIVERY METHOD) Project Management requires teamwork among the three principle of contracting parties (Project needs, Level of Quality exceed a permissible budget, and the required schedule). 1. Design/Build Contract/Bid A Design/Build Contract/Bid is commonly used for projects that have no usual features but have a well-defined scope. It has three party arrangement namely; Owner, Designer, and contractor. This method involves three steps; 1. Complete design is prepared; 2. Solicitations of competitive bids from contractors; and 3. Awarding of contract to the contractors to build the project. 2. Build Contract/Design It is often use to shorten time required to complete the project or to provide flexibility for the owner to make changes in the project during the construction. It is a two-party arrangement; Owner and Designer. 3. Construction Management Contract In this method, it can be assigned to a firm to coordinate the project for the owner. This type of method is a Four-Party arrangement; Owner, Designer, Construction Management Firm, and the contractor. 4. Owner/Agent Arrangement Some owners perform part of the designing house personnel and contract the balance of the design. To one or more outside design consultants, construction consultants may be assigned to one contractor or to multiple may be assigned. 5. Public and Private Partnership A mechanism for government to procure and implement public infrastructure and other services using the resources of the private sector. 6. Build Operate-Transfer Contract It is an agreement between a private and public companies. BOT (Build-Own- Operarte-Transfer), the contractor or private entity owns the project during the project period. BLT (Build-Lease-Transfer), the government leases the project from the contractor during the project period and takes charge of the operation. 7. Turnkey Contract It is one under which contractors responsible for the both the design and other construction of a facility. The contracts shall provide the works ready for use at the agree price and by fixed date. 8. Fast Track Contract Is a project delivering study to start construction even before the design is completed. This is to shorten the time of completion. 14 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP Tools in Effective Planning  Project Evaluation and Review Technique/ Critical Path Method (PERT/CPM) In the mid-1950s more sophisticated methods of project planning and control were developed. Two systems based on a network portrayal of the activities that make up the project emerged at about the same time. PERT (Program Evaluation and Review Technique) was first used in the development of submarines capable of firing Polaris missiles. CPM (the Critical Path Method) was used to manage the annual maintenance work in an oil and chemical refinery. Many variations and extensions of the two original techniques are now in use, and they have proved particularly valuable for projects requiring the coordinated work of hundreds of separate contractors. The use of project planning and control techniques based on PERT or CPM are now common in all types of civil engineering and construction work, as well as for large developmental projects such as the manufacture of aircraft, missiles, space vehicles, and large mainframe computer systems. In PERT/CPM, Scheduling is defined as the process of translating the arrow diagram into time table of calendar days. This is done by the day date table converting working days into calendar days which permits the inclusion of weekends, holidays, weather and other time lost. According to Presidential Decree 1594, Prescribing Policies, Guidelines, Rules and Regulation for government infrastructure contracts provides that: “The program of Works shall include, among other things, estimates of the work items, quantities, cost, and a PERT/CPM network of the project activities…in preparation of the bidding documents, the government shall make and estimate of the actual number of working days required to complete the project through PERT/CPM analysis of the project activities and corrected for holidays and weekends” Three Phases of PERT/CPM 1. Planning- Determining the relationship between the work, operation, and sequence in which they are to be performed. 2. Scheduling- in PERT/CPM it is defined as the process of translating arrow diagram into time table of calendar days. The PERT/CPM diagram should be updated periodically to 1. Time discrepancies 2. Deliveries 3. Weather 4. Change Orders 5. Unexpected events or conditions. 3. Control Monitoring- Flexibility and updated re-computations brought about by changing conditions is the key to a successful network programing Fundamental Elements of PERT/CPM Networking 1. Activity- Is the work operations required to complete a task or in some cases, a segment of that task. In short, it is the actual work between events. 2. Events- Is a point in time signifying the beginning or end of one or more activities. - Usually denoted as in the form of circle, square, ellipse, or any form of 15 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP  geometrical symbols with number written therein for identification. 3. Time or Duration of an Activity- Is the time it takes an activity to be finished. 4. Path- Is a sequence of activities that leads from the starting node to the finishing nodes. Figure Error! No text of specified style in document.-1 PERT/CPM Diagram  Bar Chart or Gantt Chart and S-Curve The Gantt Chart is a popular tool for planning and scheduling simple projects. It serves as an aid for the manager to schedule project activities and then, to monitor progress overtime by comparing the planned progress to the actual work progress. 16 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP Figure- Error! No text of specified style in document.-2 Bar Chart or Gantt Chart   Cash Flow Diagram- Cash flow diagrams visually represent income and expenses over some time interval. The diagram consists of a horizontal line with markers at a series of time intervals. At appropriate times, expenses and costs are shown. Figure 3 Cash Flow Diagram  Crashing /Accelerating a Project The activity time for project constructions are normally estimated for some given level of resources. However, on several occasions, the length of the project time of activities was reduced, by injecting additional resources. The urgent desire to shorten project construction time is influenced by following factors: a. To avoid penalties for not completing the project on time. b. To take advantage of monetary incentives for completing the project on or before the target date. c. To free the resources such as, money, equipment, and men for use on other projects. d. Reduce the indirect cost associated with the project such as: d.1 Facilities and Equipment Cost d.2 Supervision Cost d.3 Labor cost d.4 Personnel Cost  Probable Time Estimate PERT is a management tool that is suited for research and development projects which are not generally non-repetitive in nature and sometimes called “once-through” project. Duration time for activities in research and development projects are subject to uncertainty but PERT handles the uncertainty by the use of three estimates, namely: a. Optimistic Time (a)- it is the estimated minimum time an activity will take. this is the expected activity duration when all the breaks are right. Its probability is about 1 or 100% represented by letter a. b. Most Likely Time or Probabilistic Time (m)- it is the estimated normal length of the time activity it takes. This is the time expected that will lose frequency be required for activity if it were done again under identical conditions represented by letter m. c. Pessimistic Time (b)- It is the estimated maximum time that will be required under the worst condition. Its probability is about -1 in 100 or 1% represented by letter b. 17 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP Problem Solving: 1. From the following table of information, (a) draw a precedence diagram, (b) Find the Critical Path, (c) Determine the expected duration of the project. Activity Precedes Expected Time (days) a c,b 4 c d 12 d i 2 b i 5 e f 3 f j 8 i j 12 j end 9 g h 1 h k 3 k end 15 3. Given the following activities with their durations in the Network Diagram; a. Compute the Early Start (ES) and Early Finish (EF) of each activity in the forward pass. b. Determine the project duration c. Compute the Late Start (LS) and Late Finish (LF) in the backward pass. d. Compute the total Float/Sack e. Identify the critical path and the critical activities. 2. The Activities, duration, and cost under and accelerated conditions for a Network Diagram are shown in the table below; ACCELERATED NODE ACTIVITY NORMAL CONDITIONS CONDITIONS 0-1 a. Clearing and Grubbing 5 Php 1,000.00 3 Php 1,600.00 b. Procurement of pipe and 0-2 5 Php 3,000.00 4 Php 4,000.00 other materials c. Roadway and drainage 1-2 7 Php 2,000.00 5 Php 2,500.00 excavation 0-3 d. Delivery of Base Course 3 Php 12,000.00 2 Php 12,000.00 e. Excavate, laypipe, and 2-3 4 Php 1,000.00 3 Php 1,500.00 backfill f. Spread and compact the 3 3-4 5 Php 2,000.00 Php 2,800.00 base course 18 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP  a. What is the critical path of the network? b. What is the normal cost of the project? c. What activity is the most cost efficient in controlling to be accelerated program? d. If the maximum budget for the project is Php. 22,600.00, what is the reduction in the number of days to complete the project. 3. From the given Network Diagram illustrate the Time Scaled Event, based on; a. Early Start b. Late Start 19 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP Construction Pre-Planning The pre-planning stage, establishes and determine the direction and success of any construction project. Unfortunately, it seems that some engineers and contractors have not given the pre-planning special emphasis despite their one direction of going there. Past experiences have proven that there are no short-cuts to sound construction planning. There is no new procedure to replace the four basic rules on the job: 1. The construction superintendent should be included in the consultation at the very start. 2. Make job breakdowns into components. 3. Prepare a construction plan that will be consulted constantly. 4. Take advantage of new tools, which have demonstrated in saving time, money, and confusion. Four (4) different dimensions of Planning 1. Planning is a philosophy. Planning involves a state of mind that recognizes the need for orderliness and the value of direction. 2. Planning is integration. Both long and short range of plans provides unified structure to give purpose to the organizational units involved. 3. Planning is a process. Goals and objectives are the most obvious consequence of the planning process. 4. Planning is a collection of procedures. All companies makes plan ahead to some extent and apply their own methods of doing so. Six (6) Traits of a Great Construction Company 1. Has A Record of Experience and Success There’s no doubt that it is highly challenging to complete a construction project according to a client’s standards and expectations. While it’s true that some projects are similar, no two projects are exactly the same. They can vary in design, site location, size, and many more. With that being said, a strong quality of a great construction company is a proven track record of experience and success in the industry. Remember that before the project is built, you truly would not have a clear view of how procedures will go. A good indicator of a construction company is if they have a portfolio of successfully completed projects and testimonies of satisfied clients. This will give you a clear idea about the construction company’s working skills. 2. Equipped with Professional Team The team members are what’s behind every successful construction project. Running a construction company is not a one-man job. When building any type of building, a diverse team of highly skilled professionals is required. 3. Strong Risk Management The ability to manage risk effectively is one of the most important traits of a great construction company for many reasons. Properly evaluating risks helps protect clients from 20 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP construction problems. This can include serious site accidents, financial problems, missed targets, and even potential lawsuits. 4. Embracing Innovative Equipment and Technology A great construction company should understand the importance of innovation. It opens plenty of business opportunities such as operational efficiency. This can include advanced modeling software and state-of-the-art machinery. 5. Commitment to Safety In such a high-risk environment, a great construction company would be wise enough to have an unwavering commitment to ensure the safety of everyone in the team. They should go the extra mile by informing the team about the necessary safety protocols. 6. Transparency A great construction company will write up contracts that give you complete peace of mind. This means being open when communicating about budgetary requirements, materials, services, and target dates. 21 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP MANAGING RISK Step 1 : Risk Identification The risk management process begins by trying to generate a list of all the possible risks that could affect the project. Research has demonstrated that groups make more accurate judgments about risks than individuals do (Snizek and Henry, 1989). One common mistake that is made early in the risk identification process is to focus on objectives and not on the events that could produce consequences. For example, team members may identify failing to meet schedule as a major risk. What they need to focus on are the events that could cause this to happen (i.e., poor estimates, adverse weather, shipping delays, etc.). Only by focusing on actual events can potential solutions be found. Step 2 : Risk Assessment Step 1 produces a list of potential risks. Not all of these risks deserve attention. Some are trivial and can be ignored, while others pose serious threats to the welfare of the project. Managers have to develop methods for sifting through the list of risks, eliminating inconsequential or redundant ones and stratifying worthy ones in terms of importance and need for attention. 22 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP Step 3 : Risk Response Development Reducing risk is usually the first alternative considered. There are basically two strategies for mitigating risk: (1) reduce the likelihood that the event will occur and/or (2) reduce the impact that the adverse event would have on the project. Most risk teams focus first on reducing the likelihood of risk events since, if successful, this may eliminate the need to consider the potentially costly second strategy. Step 4 : Risk Response Control Typically, the results of the first three steps of the risk management process are summarized in a formal document often called the risk register. A risk register details all identified risks, including descriptions, category, and probability of occurring, impact, responses, contingency plans, owners, and current status. The register is the backbone for the last step in the risk management process: risk control. Risk control involves executing the risk response strategy, monitoring triggering events, initiating contingency plans, and watching for new risks. Establishing a change management system to deal with events that require formal changes in the scope, budget, and/or schedule of the project is an essential element of risk control. 23 MGT-212- Engineering Management by Alex M. Bantimano, RCE, RMP