Transcript PLANNING ENGINEERING AND PROJECT MANAGEMENT By

Lecture#03
PLANNING ENGINEERING
AND
PROJECT MANAGEMENT
By
Lec. Junaid Arshad
DEPARTMENT OF ENGINEERING MANAGEMENT
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Topics Covered

Project Life Cycle

Project Phase Activities

Request for Proposal (RFP)

Proposal

Recommended Proposal Format
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PROJECT LIFE CYCLE
A project is by definition a
temporary endeavor, which
means it has its own life
cycle.
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Micro and Macro Views
Macro
view
Micro
view
Steps
Two
(Generic)
Phases
Four
(Generic)
Stages
Five to Ten or More
(Industry Specific)
Many
(Project Specific)
Tasks
Generic means applicable to any sort of project
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Project Steps
The PM process, over the course of
this life cycle, can be grouped into two
sequential yet overlapping steps
1.
2.
Planning
Accomplishment
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Project Phases
The sequential steps can be further
broken down into four distinct phases in
time through which any project passes.
1.
2.
3.
4.
Concept
Development
Implementation
Termination
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PROJECT PHASE ACTIVITIES
Concept Phase
The concept phase is when a need is
identified and background data are collected.
At this point in a project, there is an attempt to
determine if a problem exists.
Goals and objectives are developed during
this phase, and initial plans are developed as
well. Some field work can be done in this
phase i.e. data collection, market surveys
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Important Note:
It should be noted that the project can be
terminated within this or any other phase of
the project.
For instance, an environmental project
could be terminated at the concept phase
because contamination was not found at
the site.
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Development Phase
In development phase more detailed planning
occurs. By this point, the problem has been
identified and a need has been established.
The question at this point is:
What is the best manner to go about solving this
problem or satisfying our need?
Economic studies are often performed in this
phase, as well as an evaluation of alternatives.
Detailed design will also be performed in this
phase.
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Implementation Phase
Construction activities often occur and
the
detailed
design
plans
are
implemented in this phase.
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Termination Phase
The termination phase is the point where
the results of the project are documented,
resources are released, and responsibility
for the newly developed product is
transferred.
For example, if the project were to build a
new chemical manufacturing plant, it is at
the termination phase that the plant would
be placed in the hands of the new
operators.
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Project Stages and Tasks
In practice, on most projects, the four
phases need to be broken down into
greater detail.
Each phase can be broken into a
number of stages and further broken
down into tasks.
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Request For Proposal (RFP)
A request for proposal (RFP) is a
document that an organization posts to
obtain bids from potential vendors for a
product or service.
For example, a new business or a business
moving from a paper-based system to a
computer-based
system
might
request
proposals for all the hardware, software, and
user training required to establish and integrate
the new system into the organization.
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RFP Response Time
The Typical Response time allotted in
most RFPs is two weeks.
This is relatively a short amount of
time when one considers the
significant amount of work that must
be accomplished.
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Within the RFP response time:

The information in the RFP must be fully
understood

A strategic approach must be developed and
estimated (schedule and cost)

The approach must be clearly articulated
(expressed)

A sales theme must be woven throughout the
text of the proposal
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Importance of Proposal
A proposal is a major tool by which a
service company secures new business.
A Successful proposal meets two primary
criteria:
1)
2)
The proposal is approved by the
customer’s review process
The proposal is executable as specified
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Proposal is a Project
Developing a proposal is a project in itself. This
idea can clearly be seen by the definition of a
project.
Developing a proposal involves the completion of
a series of tasks which have their objective the
submission of a successful proposal.
There is a defined scope of work for the
completion of the proposal, which involves
determining the technical approach, developing a
work breakdown structure, designing a network
schedule, estimating costs, and the actual writing
of the proposal.
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These tasks must occur within a schedule for
completion as defined by the RFP.
There is a definite cost for preparing a proposal,
such as the base salary of the personnel working
on the proposal and the cost of the materials,
equipment and subcontractors.
Although many companies neglect to consider the
cost of proposal preparation, prudence requires
developing a budget for proposal preparation and
tracking preparation costs.
Finally, resources are required for completion of a
proposal, many of which are limited.
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Proposal Cost
A general rule of thumb is that the cost to prepare a
proposal should not be more than 10% of the
estimated gross cost of a project.
(cost refers to the amount that will be incurred by
the service company in completing the project, not
the price the customer will be charged)
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Recommended Proposal Format
The recommended proposal format is as follows:
1.
Introduction
2.
Background information
3.
Objectives
4.
Technical approach
5.
Scope of work
6.
Project team and related experience
7.
Schedule
8.
Costs
9.
Assumptions and terms and conditions
NOTE: The proposal format should reflect both project
criteria and the project planning and control cycle.
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1. Introduction
The introduction is used to briefly describe the
events that led up to the submission of the
proposal, as well as to introduce the service
company.
2. Background Information
The background information provides the
opportunity for the service company to demonstrate
its understanding of the project. Additionally this
section should call out any gaps in data that will
need to be addressed by the detailed scope of
work, enabling cost effective completion of the
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project.
3. Objectives
This section is used to restate the objectives
as identified by the customer and more
importantly, to state the long and short term
objectives for the project as identified by the
company.
4. Technical Approach
The technical approach presents the basic
strategy that has been developed in order to
meet the objectives.
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5. Scope of Work
The scope of work provides a discussion of the
details of how the technical approach will be
implemented.
6. Project Team
This section provides the company with the
opportunity to introduce the selected
personnel and their experience on related
projects.
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7. Schedule
The schedule section of the proposal should present
the duration of the project and various tasks, while
showing how these tasks are linked and
interdependent.
8. Cost
This section should illustrate the cost of the
various tasks, the cost of the project as a
whole, and the cumulative cost over time
curve.
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9. Assumptions and Terms and
Conditions
Provide the boundaries for the project scope
of work. This section tightens up the details
of the scope of work and, if well written,
protects both the company and the
customer.
Note that the assumptions are typically
developed and recorded throughout the
planning of the project, whereas the terms
and conditions are often based on company
policy.
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In this section care should be taken to
inform the customer that the assumptions
and terms and conditions are based on the
project scope.
If new information gained during execution
of the project, indicates that an assumption
as invalid or a change in terms and
conditions is required, the project scope of
work will be affected, thereby making a
change order necessary.
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RFP vs Tender Notice
An RFP is used when the purchaser is looking for
the best value solution to resolve a problem or to
deliver a good or service, but is not exactly sure
how to achieve it.
A tender notice is used when the purchaser
knows exactly what good or service they want
and is looking for the best price to deliver it.
A tender is an offer to do work or supply
goods at a fixed price.
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