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Engineering Management Module 4

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John Hennessy De Castro
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34 views

Engineering Management Module 4

Uploaded by

John Hennessy De Castro
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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MODULE 4: PROJECT MANAGEMENT – ADVANCED TOPICS

Engineering management projects often require advanced project


management techniques to ensure projects are completed on time, within
budget, and meet the desired quality standards. Techniques such as the
Critical Path Method (CPM) and Program Evaluation and Review
Technique (PERT), along with effective risk management, cost estimation,
budgeting, and resource management, play a vital role in addressing the
complex demands of engineering projects.

Critical Path Method (CPM) and Program Evaluation Review Technique


(PERT)

The Critical Path Method (CPM) and Program Evaluation Review Technique
(PERT) are powerful project management tools used to plan, schedule, and
monitor large engineering projects. Both methods help identify the
sequence of activities critical to project completion and manage time
effectively.

1. Critical Path Method (CPM) focuses on identifying the longest


sequence of dependent tasks that determine the shortest possible
duration of the project. For example, in constructing a bridge,
activities like laying the foundation, setting up support structures, and
final inspections form the critical path. Any delays in these activities
would directly impact the project completion date (Kerzner, 2017).
CPM also provides a buffer for non-critical activities, allowing
flexibility in resource allocation and time management.

2. Program Evaluation and Review Technique (PERT) is used to estimate


the project duration when there is uncertainty in activity completion
times. By using optimistic, pessimistic, and most likely time estimates,
PERT provides a probabilistic approach to scheduling. For instance,
in software development, where specific task durations are often
uncertain, PERT can help project managers create a more realistic
schedule by considering best-case and worst-case scenarios
(Meredith & Mantel, 2019). PERT is particularly useful in research and
development projects, where unknowns can affect task durations.

Risk Management in Projects

Risk management is critical in engineering projects, where delays, budget


overruns, and unexpected challenges can significantly impact outcomes.
Effective risk management involves identifying potential risks, assessing their

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likelihood and impact, and implementing strategies to mitigate or avoid
them.

In large-scale construction projects, risks can include supply chain delays,


safety hazards, and regulatory compliance issues. For instance, in the
construction of an offshore wind farm, risks related to harsh weather
conditions, environmental regulations, and equipment logistics are
carefully assessed (Hillson, 2017). Project managers may use a risk
assessment matrix, categorizing risks into high, medium, or low based on
their potential impact and probability, and then devise contingency plans.
Common strategies include insurance, contract provisions, and safety
protocols that protect against adverse events.

Cost Estimation and Budgeting

Cost estimation and budgeting are foundational aspects of project


management that help prevent cost overruns and ensure that project
expenses align with financial resources. In engineering projects, this process
typically involves detailed forecasting and budgeting to cover direct and
indirect project costs.

Techniques such as bottom-up estimation allow managers to estimate the


costs of individual tasks and add them to get the project’s total cost. In a
highway construction project, for instance, managers estimate costs for
materials like asphalt, concrete, labor, equipment, and subcontractor fees
(Larson & Gray, 2020). Tools like Building Information Modeling (BIM) help
create detailed cost breakdowns by visualizing every aspect of a project,
enabling engineers to forecast accurate costs and anticipate potential
overruns.

Budgeting then establishes spending limits and allocates funds based on


project phases. Projects often employ cost control measures to track
expenses against the budget, making adjustments when necessary. For
example, a manufacturing firm implementing new machinery might
monitor costs monthly to avoid overspending.

Managing Resources in Engineering Projects

Effective resource management ensures that engineering projects have


the right personnel, materials, and equipment at the right time. This aspect
of project management addresses both human and material resources, as
well as scheduling resources effectively to avoid delays.

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Resource leveling and resource smoothing are two techniques commonly
used to align resource availability with project requirements. Resource
leveling adjusts project schedules based on resource constraints, while
resource smoothing adjusts the allocation of resources without affecting
the project schedule. For instance, a construction project experiencing
labor shortages might reschedule tasks to ensure that available workers
can complete the project on time (Turner, 2018).

In a software development project, managing resources might involve


balancing skilled programmers across multiple projects while maintaining
deadlines. Enterprise Resource Planning (ERP) systems support resource
allocation by providing real-time data on resource availability, facilitating
efficient task assignments, and reducing idle time (Heizer et al., 2020).

Conclusion

Advanced project management techniques in engineering, such as CPM,


PERT, risk management, cost estimation, budgeting, and resource
management, play a crucial role in achieving project success. These
methods help managers navigate the complexities of engineering projects
by optimizing schedules, preparing for risks, managing costs, and efficiently
allocating resources. As project demands grow and become more
complex, these advanced approaches enable engineering managers to
meet project objectives, maintain quality standards, and deliver projects
on time and within budget.

References

• Hillson, D. (2017). Practical project risk management: The ATOM


methodology. Berrett-Koehler Publishers.
• Kerzner, H. (2017). Project management: A systems approach to
planning, scheduling, and controlling. Wiley.
• Heizer, J., Render, B., & Munson, C. (2020). Operations management:
Sustainability and supply chain management. Pearson.
• Larson, E., & Gray, C. (2020). Project management: The managerial
process. McGraw-Hill Education.
• Meredith, J. R., & Mantel, S. J. (2019). Project management: A
managerial approach. Wiley.
• Turner, J. R. (2018). The handbook of project-based management:
Leading strategic change in organizations. McGraw-Hill Education.

RONALDO A. JUANATAS, PhD.


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