20ME2E54

PROJECT MANAGEMENT

Semester - IV
B.E Mechanical Engineering

Academic Year : 2023-24

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 VISION & MISSION OF THE COLLEGE

VISION
To develop into a leading world class Technological University
consisting of Schools of Excellence in various disciplines with
a co-existent Centre for Engineering Solutions Development
for world-wide clientele.

MISSION
To provide all necessary inputs to the students for them to
grow into knowledge engineers and scientists attaining.
• Excellence in domain knowledge- practice and theory
• Excellence in co-curricular and Extra curricular talents
• Excellence in character and personality

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 VISION & MISSION OF THE DEPARTMENT

VISION
The Department of Mechanical Engineering excels in
Engineering Education and building enterprising
professionals commendable with creativity, research and
employability, meeting the requirements of potential
recruiters.

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 VISION & MISSION OF THE DEPARTMENT
(Conti…)

MISSION
The Mission is to provide quality engineering education that
equips the students with adequate knowledge in mechanical
engineering to become successful professionals for serving the
needs of the society.

The department strives to prepare the students to adorn

themselves with effective communication, intellectual abilities,
teamwork and professional ethics for valuable contribution in their
career.

The department aims to motivate the students to orient

themselves towards research and life-long learning to act upon
the changing needs of the stakeholders. 4
 Programme Educational
Objectives (PEOS)

The graduates will demonstrate the following, after few

years of their graduation
1. The graduates offer rationale solutions while designing and
manufacturing of mechanical as well as allied engineering
systems through the use of their knowledge in Mathematics,
Physical Science, Engineering and Technology.

2. The graduates demonstrate the professional skills with

confidence to seek solutions to the tasks with due
consideration on social, environmental, economical, and
ethical values.

3. The graduates communicate effectively and engage in life-

long learning for personal and professional growth.
 Programme Outcomes (POS)

Engineering Graduates will be able to

1. Engineering knowledge: Apply the knowledge of mathematics, science,

engineering fundamentals, and an engineering specialization to the solution
of complex engineering problems.
2. Problem analysis: Identify, formulate, review research literature, and
analyze complex engineering problems reaching substantiated conclusions
using first principles of mathematics, natural sciences, and engineering
sciences.
3. Design/development of solutions: Design solutions for complex
engineering problems and design system components or processes that
meet the specified needs with appropriate consideration for the public health
and safety, and the cultural, societal, and environmental considerations.
4. Conduct investigations of complex problems: Use research-based
knowledge and research methods including design of experiments, analysis
and interpretation of data, and synthesis of the information to provide valid
conclusions.
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 Programme Outcomes (POS)
(Cont…..)

5. Modern tool usage: Create, select, and apply appropriate techniques,

resources, and modern engineering and IT tools including prediction
and modeling to complex engineering activities with an understanding
of the limitations.
6. The engineer and society: Apply reasoning informed by the contextual
knowledge to assess societal, health, safety, legal and cultural issues
and the consequent responsibilities relevant to the professional
engineering practice.
7. Environment and sustainability: Understand the impact of the
professional engineering solutions in societal and environmental
contexts, and demonstrate the knowledge of, and need for sustainable
development.
8. Ethics: Apply ethical principles and commit to professional ethics and
responsibilities and norms of the engineering practice.
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 Programme Outcomes (POS)
(Cont…..)

9. Individual and team work: Function effectively as an individual, and as a

member or leader in diverse teams, and in multidisciplinary settings.

[Link]: Communicate effectively on complex engineering

activities with the engineering community and with society at large, such as,
being able to comprehend and write effective reports and design
documentation, make effective presentations, and give and receive clear
instructions.

[Link] management and finance: Demonstrate knowledge and

understanding of the engineering and management principles and apply
these to one’s own work, as a member and leader in a team, to manage
projects and in multidisciplinary environments.

[Link]-long learning: Recognize the need for, and have the preparation and
ability to engage in independent and life-long learning in the broadest
context of technological change.
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 Programme Specific Outcomes (PSOs)

Graduates of Mechanical Engineering at the time of

graduation will be able to
1. Design, model and analyze mechanical components as
well as systems using Engineering and computational
tools

2. Identify and plan the manufacturing methods and

processes for mechanical components and systems with
due consideration on quality and economy

3. Analyze, evaluate and design thermal systems by applying

thermal engineering concepts and simulation methods.

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 Module II
PROJECT SELECTION

Project selection, Portfolio management,

Project formulation, Project manager. Planning
process tools, Project uncertainty and Risk
Management. Project Leadership.

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 Phased Planning
The Project Planning Phase is the second phase in
the project life cycle. It involves creating of a set of plans to help
guide your team through the execution and closure phases of the
project.
The plans created during this phase will help you to
manage time, cost, quality, change, risk and issues. They will also
help you manage staff and external suppliers, to ensure that you
deliver the project on time and within budget.

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 Phased Planning
Project Plan
This Project Plan Template will help you to quickly and
easily create a Project Plan for your project. You can use it to
create your own customized project management plan for
delivering your project on time and under budget.
By using this Project Plan template, you can:
 Identify all of the phases, activities and tasks
 Sum up the effort needed to complete those tasks
 Document all of the project inter-dependencies
 List the planning assumptions and constraints
 Create a detailed project planning schedule

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 Phased Planning
Resource Plan
This Project Resource Management Plan helps you to
identify all of the resources required to complete your project
successfully. Using this Resource Plan, you will be able to identify
the quantity of labor, equipment and materials needed to deliver
your project.
This Resource Planning template will help you identify the:
Types of labor required for the project
Roles and key responsibilities for each labor type
Number of people required to fill each role
Items of equipment to be used and their purposes
Types and quantities of equipment needed
Total amount of materials needed
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 Phased Planning
Financial Plan
This Financial Planning Template will help you to quickly
and easily create a Financial Plan for your project. A Financial
Plan enables you to set a "budget", against which you measure your
expenditure. To deliver you project "within budget", you need to
produce the project deliverables at a total cost which does not exceed
that stated in the budget.
This Financial Plan template will help you to identify the:
Types of labour costs to be incurred during the project
Items of equipment needed to deliver the project
Various materials needed by the project
Unit costs for labor, equipment and materials
Other costs types such as administration.
Amount of contingency needed
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 Phased Planning
Quality Plan
Create a Quality Assurance Plan and Quality Control
Plan, using this quality management plan template.
It will help you to set quality targets for your project to
ensure that the deliverables produced, meet the needs of your
customer.
You can use this Quality Plan to set quality targets by:
Identifying the customers requirements
Listing the project deliverables to be produced
Setting quality criteria for these deliverables
Defining quality standards for the deliverables
Gaining your customers agreement with the targets set
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 Phased Planning
Risk Plan
This project Risk Management Plan helps you to identify
risks and implement a plan to reduce them.
It helps you do this, by giving you a complete risk
management plan, showing you how to take action to reduce risk
in your project.
This Risk Planning template will help you to:
 Identify risks within your project
 Categorize and prioritize each risk
 Determine the likelihood of the risks occurring
 Identify the impact on the project if risk does occur

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 Phased Planning
Acceptance Plan
This Acceptance Plan helps you to gain the customers
acceptance for the deliverables produced by your project.
Creating an Acceptance Plan (or 'Acceptance Test Plan') is
an important part of any project, as it allows the customer to
accept the deliverables you have produced for them.
This Acceptance Plan template will help you gain acceptance, by:
 Creating a full list of all project deliverables
 Listing the criteria for gaining customer acceptance
 Putting in place, acceptance standards to be met

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 Phased Planning
Communication Plan
This Communication Plan template will help you to
communicate the right information, to the right people, at the right
time.
The template helps you to build Communication Plans by:
Listing your communications stakeholders
Defining each stakeholders communication needs
Identifying the required communications events
Determining the method and frequency of each event
Allocating resource to communications events
Building a communication event schedule
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 Phased Planning
Procurement Plan
This Procurement Plan helps you procure products and
services from external suppliers. It provides you with a
complete project procurement plan template, to help you to
quickly and easily create a Procurement Plan for your business.
By planning your procurement carefully, you can ensure
that you buy the right products for your business, at the right price.
This Procurement Plan helps you:
 Define your procurement requirements
 Identify all of the items you need to procure
 Create a sound financial justification for procuring them

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 Phased Planning
Project Review Form - Planning Phase
This Project Phase Review Form is completed at the end of
the Project Planning phase to tell the sponsor whether the project has
achieved its objectives to date.
A project management review is completed and the results are
documented on this Project Review Form.
This Project Phase Review Form states whether the:
Project is under schedule and within budget
Deliverables have been produced and approved
Risks have been controlled and mitigated
Issues have been resolved
Project is on track

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tree swing project

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 Project Planning
A project plan expresses the objectives & requirements of the
project in terms of
 Project Scope
 Project Schedule
 Resource Requirement
 Project cost estimation
 Project Quality and
 Project Risk Management

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Project Planning Approach

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 Project Scope Planning
Any project is expected to provide its stakeholders with certain
outcome, which is commonly termed as project deliverables. These
project deliverables depends on the scope of the project. Analogically,
defining a project scope is like drawing a map.

1. Project Deliverables

To define project scope, one needs to refer project

requirements. The project planner needs to list down project deliverable
items unambiguously stating whether they are ‘In Scope’ or ‘Not in
Scope’.
So, project scope is about outlining the project deliverables.
Based on project scope, project planner(s) create(s) work break down
structure (WBS).
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 Project Scope Planning
[Link] Schedule Planning
Once project scope is determined and work breakdown structure
(WBS) is created, the next step is to create delivery timeline. For each of the
deliverable work item identified in the work breakdown structure (WBS),
project planner needs to identify list of activities need to perform.

For each of these activities he/she needs to figure out

 How long will it take to complete each activity (days, weeks)?
 What kind of resource(s) – required for its completion (skill set,
experience, etc.)?
Gann Chart
1. Reschedule project delivery timeline [Time Implication]
2. Arrange additional resources [Resource Implication]
3. Change the scope of project [Scope Implication]
4. Enforce additional/ lesser Quality checks [Quality Implication]
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 Project Scope Planning
Five steps to create delivery schedule
 Define Tasks/ Activities.
 Tasks/ Activities Sequencing
 Resources Requirement Estimation.
 Task Durations Estimation.
 Schedule Development.
[Link] Resources Planning
Human Resource Plan
1. What kinds of people are required to complete the project – necessary qty,
competencies?
2. What should they do – roles & responsibilities?
3. Whom will they report to?

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 Project Scope Planning
Companies may have following organization structure:
1. Hierarchical Organization
2. Matrix Based Organization
3. Flat organization.
Expect from human resource plan
[Link] & responsibilities
 Role
 Responsibilities
 Competency
 Authority
[Link] management plan
 Resource acquisition
 Resource calendars
 Staff Training & release plan.
 Incentive Program 28
 Project Scope Planning
[Link] Cost Planning
Cost planning exercise helps to baseline the overall project budget in
terms of money so that project sponsors & project steering committee can
agree on project delivery schedule as well as the payment schedule.
Expect from Project Cost plan.
Cost estimates per activity.
5. Project Quality Planning
There are various known approaches to ensure project quality.
1. Six Sigma (6 σ)
2. Cost of Quality (CoQ)
3. Total Quality Management (TQM)
4. Failure Mode and Effect Analysis (FMEA)
5. International Organization for Standardization 9001, etc
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 Project Scope Planning
Expect project quality plan
 Cost-Benefit Analysis
 Cost of Quality
 Quality Metrics
 Quality Checklist
 Control Charts
6. Risk Management Plan
The project risk is futuristic uncertainty that may occur during life of a
project and can affect project deliverables. The risk can be recorded through
cause-effect analysis.
Project risk management is about assessing future uncertainties which
can have potential impact on project objectives and the exercise of creating risk
management plan, prepares team for effectively managing those uncertainties.

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 Project Scope Planning
Expect from project risk management plan
Risk Identification
 Identification process
 Risk Categories
Risk Assessment
 Risk probability and impact.
 Risk Tolerance.
Risk Response
Risk Management
 Mechanism
 Budget Provisioning
 Risk Tracking

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 Project Planning Stage
• Risk Management
A possible risk management framework consists of 5 main steps:
• Identify Risks: Find all the factors that threaten project
objectives.
• Analyse and prioritize: Assess each risk in terms of its possible
damage and likelihood of occurrence.
• Develop a response: Create strategies for reducing the possible
damage and/or probability the risk will occur.
• Establish reserves: Set aside additional funding for the project
that will be used for known risks and unknown risks.
• Continuous risk management: Implement strategies and
monitor the effects of these changes on the project.
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 Preparation of Cost Estimation

Cost estimating is the practice of forecasting the cost of

completing a project with a defined scope.
Professional estimators use defined techniques to create cost
estimates that are used to assess the financial feasibility of projects,
to budget for project costs, and to monitor project spending.
A cost estimate may also be used to prepare a project cost
baseline, which is the milestone-based point of comparison for
assessing a project’s actual cost performance.

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 Preparation of Cost Estimation
Key Components of a Cost Estimate
A cost estimate is a summation of all the costs involved in
successfully finishing a project, from inception to completion (project
duration).
Direct costs are broadly classified as those directly associated with
a single area (such as a department or a project). They can include project
team wages, the costs of resources to produce physical products, fuel
for equipment, and money spent to address any project-specific risks.
Indirect costs cannot be associated with a specific cost center and
are instead incurred by a number of projects simultaneously, sometimes in
varying amounts. In project management, quality control, security costs,
and utilities are usually classified as indirect costs since they are shared
across a number of projects and are not directly billable to any one
project. 34
 Preparation of Cost Estimation

The broad classifications of direct and indirect costs, project expenses fall into
more specific categories. Common types of expenses include:
• Labor: The cost of human effort expended towards project objectives.
• Materials: The cost of resources needed to create products.
• Equipment: The cost of buying and maintaining equipment used in project
work.
• Services: The cost of external work that a company seeks for any given project
(vendors, contractors, etc.).
• Software: Non-physical computer resources.
• Hardware: Physical computer resources.
• Facilities: The cost of renting or using specialized equipment, services, or
locations.
• Contingency costs: Costs added to the project budget to address specific risks.35
 Preparation of Cost Estimation

Cost Estimates :
• Order of magnitude estimates
• Intermediate estimates
• Preliminary estimates
• Substantive estimates
• Definitive estimates

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 Preparation of Cost Estimation
Cost Estimating Techniques
• Analogous estimating
• Bottom-up estimating
• Parametric estimating
• Delphi cost estimation
• Empirical (Experimental) costing methods
• Expert judgment
• Reserve analysis
• Resource costing
• Three-point estimating
Expected value = [Optimistic estimate +
Pessimistic estimate + (4 x Most likely estimate)] ÷ 6
• Using cost estimating software 37
 Preparation of Cost Estimation

Good Cost Estimate

• Accuracy
• Confidence level
• Documentation
• Precision
• Reliability
• Risk detailing
• Uniformity
• Validity
• Verification
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 Preparation of Cost Estimation
Inaccurate Project Cost Estimates
•Lack of experience with similar projects
•Length of the planning horizon and of the project
•Human resources
•Not fully understanding the work involved in completing work
packages
•Expecting that resources will work at maximum productivity.
•Dividing tasks between multiple resources
•Failing to identify risks and to prepare adequate contingency plans
and reserves.
•Not updating cost estimates after project scope changes
(Contd.)
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 Preparation of Cost Estimation
• Creating hasty, inaccurate estimates because of stakeholder
pressure.
• Stating estimates as fixed sums, rather than ranges.
• Making a project fit a fixed budget amount.

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Prerequisites for successful
project implementation

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Prerequisites for successful
project implementation

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Prerequisites for successful
project implementation

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Prerequisites for successful
project implementation

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Prerequisites for successful
project implementation

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Prerequisites for successful
project implementation

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 Managing Uncertainty and Risk on the
Project
• what is risk?
• project risk management
• risk management practice
• elicitation of subjective probabilities
• strategic management of project risks

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 What is Risk?
• Uncertainty and the absence of information
regarding occurrence
• Risk and the probability of an occurrence
– Understanding risk requires some information
• Risk and reward
– This includes safety

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 Decision-Makers’ Risk Preferences
• Risk-seeking
• Risk-averse
• Risk neutral
– Transaction cost adjusted risk neutrality
• Factors affecting preferences
• Risk preference profiles

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 Project Risk Management
• The features of projects and their clients
– project large proportion of client’s total assets
– projects tend to be one-off
– clients tend to be bureaucracies
– lack of managerial capabilities
• The uneven distribution of risk and reward
– client’s risk profile
– project manager’s risk profile

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Project Risk Management

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 The Construction Project Manager’s Risk Profile

expected profit
cost estimate tender
= budget price
profit
= £10m £10.5m
probability %

out-turn price
out-turn
cost
loss
- variations +

- variances + £m 52
 Risk Management Practice
• The risk management process
– identify and classify the risk
– analyse the risk
– respond to the risk
– monitor the risk
• The risk management process
• The probability/impact matrix

Riding the Project Life-cycle 53

 The Risk Management Process
identify & classify
the risk

monitor the risk analyse the

risk

respond to
the risk

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 The Probability / Impact Matrix
high insure / mitigate /
mitigate cancel

rare probable
catastrophe disaster
impact
bad luck management
challenge

accept externalise
low
low high
probability
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The Elicitation of Subjective Probabilities

• Attempting to solve the problem of inadequate

data
• Mobilising expert judgement
• The importance of methodology
• The value is in the process, not the outputs

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 Strategic Management of Project Risks

• The broad categories of risk

– market risks
– completion risks
– institutional risks
• Project shaping
• Project governability

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 Project Shaping
• Information search
• Network building
• Incentives
• Design
• Influence

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 PM and PPM Defined
Project Management Project Portfolio Management
• Application of knowledge, • Application of knowledge,
skills, tools & techniques to skills, tools & techniques to a
project activities to meet collection (or portfolio) of
projects in order to meet needs
project requirements
of an organization’s investment
• Stakeholders: business strategy
owners, sponsors, end users •
Stakeholders: financial
• Stakeholder needs: business management, senior executives,
requirements, controlling stockholders
costs & schedule • Stakeholder needs: optimal
investment of resources, ROI,
strategic alignment
 PM and PPM Process Integration
PM Processes PPM Processes
• Initiating • Identifying
• Categorizing
• Planning
• Evaluating
• Executing • Selecting
• Closing • Prioritizing
• Monitoring and • Balancing
Controlling • Authorizing
• Performance Reporting
• Monitoring and
Communicating Adjustments
 Portfolio Management Maturity:
Components
1. Portfolio Governance
2. Project Opportunity Assessment
3. Project Prioritization and Selection
4. Portfolio and Project Communications
Management
5. Portfolio Performance Management
6. Portfolio Resource Management
 Portfolio Management Maturity Survey

• Evaluate and compare your organization's PPM

maturity against its peers.
• Foundation for an improvement roadmap.
• Track improvement over time.

• Survey developed by the Center for Business Practices

and CA.
• Results are based on survey responses from senior-
level PPM practitioners.
• The high level survey will only take a few minutes to
complete.
 What is Your
Portfolio Management Maturity
Level?
< 12 = Level 1: Initial Process
12 – 17 = Level 2: Structured Process
18 – 23 = Level 3: Institutionalized Process
24 - 29 = Level 4: Managed
> 29 = Level 5: Optimized

Maturity levels based on Center for Business Practices use of CMMI Maturity
Model
State of PPM Research - Maturity
Level Across Industries
Percentage of organizations at each level of PPM
capability:

» Level 1 —9%
» Level 2 —50%
» Level 3 —25%
» Level 4 —14%
» Level 5 —2%
 Tips on Moving to Next Level
 PROCESSES FIRST

 PPM TOOL SECOND

 Target short term and long term improvement goals

o One area, one level at a time

 Reassess Project Office role in project portfolio

management
 State of PPM Research -Top Challenges

2003 2013
• Getting accurate • Organization has a silo
information on projects mentality - 49%
• Lack of information on • Assuring the consistent
resources application of defined
• Lack of broad processes - 44%
organizational support • Getting reliable and
accurate information on
projects - 42%
State of PPM Research – Top Challenges
Where trends are we seeing to address top
challenges?
• Training
• Help from the Outside
• Technology
 Addressing These Challenges:
Improving Engagement and Efficiency
What is Engagement? What is Efficiency?
Doing the Right Things Doing Things Right

IT’s ability to partner IT’s ability to make the

with the business to best use of its people,
maintain alignment budgets and assets
and maximize return
from IT investments
 Governance through Portfolios
• Enables Executives to establish the required
governance to engage with the business effectively and to
deliver investment results efficiently
– Align with organizational goals, strategies and priorities
– Select the right investments and make the right tradeoffs
– Demonstrate measurable business value
– Involve top management in project portfolio execution
– Communicate effectively with business partners and stakeholders
– Operate in compliance with corporate governance requirements

• Requires a holistic view of the entire IT portfolio across the

enterprise
– Projects, People, Applications, Assets, Demand, Services
 Become the Center of Excellence
• Process and methodology – without
bureaucracy or policing
• PM and PPM tools repository
• Project Manager Mentoring - Staffed by
experienced experts
• Help Desk providing fast, knowledgeable
response to requests
• Project Manager development approach
and career track
• Training strategy and plan
 PPM Benefits
• Facilitates IT and business alignment
• Enables reasoned investment decisions
resulting in the right project mix
• Reduces resource conflicts & constraints
• Collective management of all projects
enabling the identification of tradeoffs
• Helping, modifying, slowing, and stopping
projects when necessary
• Drives project cycle-time down and project
performance up
• Enables people to succeed
 Tales from the Trenches
• People -> Process -> Technology
• Crawl -> Walk -> Run: but keep moving
• Stakeholder Management
– Executive
– Customers
– Project Managers
– Resource Managers
• Measure and Demonstrate Value
Information: Project Indicators

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Information: Lessons Learned
Through Knowledge Repository

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Information: Accountability
Through Ongoing Reviews

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Information: Total Workload

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 PMO Roadmap

1st Step 2nd Step 3rd Step Beyond

 PMO Mission/Purpose

?
 PM Playbook Training • Upgrade to Clarity v13.2
 Integration w/ Corporate  Executive Portfolio (C) • Demand Management (C)
Strategy  One-stop Project • Portfolio Optimization (C)
 Processes - Work Intake, • Workload/Resource
Management (C)
Change Control, Project  Financial Integration (C) Management (C)
Closure  Capitalization and Total • Exception Reporting (C)
 Project Management
Workload Portlets (C)
Cadence
 Templates & Tools -
Requirements Gathering/
Project Management
 Knowledge Repository

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Project Management Maturity Model

TBC

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 Next Steps
1. Assess your PPM Maturity

2. Identify your Key Pain Points

3. Identify an Executive Champion

4. Enlist and Engage Advocates

 PPCG Can Assist

Rego’s Project and Portfolio Management Consulting Group (PPCG)

provides several PPM Process Reengineering and PMO Start-up Offerings

Visit our website for more information:

[Link]