Could your projects use additional risk management? Experts agree that it is one of the most underutilized areas of project management. As engineers, when we're managing a project in our area of expertise we like to think we know the primary risks and we have them under control. But a small amount of risk management planning at the outset of every project will reap … [Read more...]
If there's one thing that is lacking in engineering college education, it's project management. Most college provide an overview as part of a general engineering course, and the good ones even provide a full course. We come out of university as technical experts, but most of an engineer's time is spent on project management. Therefore, I think that every engineer should … [Read more...]
For an engineering project, the typical life cycle looks something like this: Conceptualization. At the point which a need or opportunity is identified, an agency begins to develop a conceptual plan for a new product or service. Feasibility. Budget level estimates are prepared for the necessary phases and the financial implications (revenue vs. costs) are … [Read more...]
Scheduling is generally one of the critical variables to project success for engineers. In spite of this, most engineers don't understand the basics of project scheduling, except for remembering it from their college days. In this article I will document the two primary scheduling techniques available to the engineering project manager. Gantt Chart Gantt charts do an … [Read more...]
Engineering proposals are the industry standard document for which engineering consultant selection decisions are made. For engineering consulting firms, they are the primary method of securing new work. For the owners they are indispensible as a means to differentiate between consultants. But what are the major parts of an engineering proposal? Project … [Read more...]
Engineering projects come in many shapes and sizes, but they can generally be broken down into the following phases. Planning / Preliminary Engineering. This is the stage at which the options are considered and the pros and cons evaluated. Most engineering projects involve the creation of a new product or the destruction and re-build of an existing one, and … [Read more...]
Kevin Payravi, Wikimedia Commons The Project Management Institute (PMI) reports that only 64% of projects meet their intended goals. The difference between a successful project and an unsuccessful one can usually be narrowed down to one word: Planning. Even small projects can benefit from a Project Management Plan. The following Project Management Plan checklist is … [Read more...]
The calculation of the net present value (NPV) is a budgeting technique that equates the discounted cash flows against the initial investment. The mathematical formula is: $$NPV = \sum_{t=1}^{n}\frac{FV_{t}}{(1 + k)^{t}} - I$$ Where: FV = Future cost of the cash inflows, I = Initial Investment k = Discount rate equal to the owner's cost of capital I … [Read more...]
Project Management, as defined by the Project Management Institute in the Project Management Body of Knowledge, is comprised of five 'process groups': Project Initiation Selection of the best project given resource limits Recognizing the benefits of the project Preparation of the documents to sanction the project Assigning of the project manager Project … [Read more...]
Critical Success Factors, or CSF's, are the criteria that defines success. In project management, they are found in the project management plan and define what it means for the project to be successful. Time and Cost (deadlines and budgets) are almost always part of the CSF's, but most projects have other success criteria as well. In any area of life, you create goals … [Read more...]
