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ECTE350 - Engineering

Design and Management 3


Session 1

Dr Marco Antônio Amaral Féris


School of Management, Operations & Marketing
Faculty of Business, 40.G06a (Wollongong campus)
Phone: 02 4298 1246
Email: mferis@uow.edu.au
UOW: https://scholars.uow.edu.au/display/marco_amaral_feris
Research: https://qplantool.wordpress.com/
Biography
Professional Experience
• 2018 – Lecturer in Operations, UOW
• 2016 – Lecturer in Programme and project Management Cranfield University, Academy of Defence in the UK
• 2011 – Program Manager at AEL/Elbit Systems
• 2010 – Project Management Specialist at ANU
• 2006 – R&D Manager at Hewlett-Packard
• 2003 – IT Project Manager at Dell
• 2000 – New Product Introduction Engineer at Dell
• 1995 – Project Manager at Altus
• 1993 – Developer at Chronos
• 1988 – Developer at Altus
Education and Qualifications
• 2018 – UOW Continuing Professional Development Portfolio Level 1 Accreditation
• 2017 – Associate Fellow of the Higher Education Academy in the UK (AFHEA)
• 2015 – PhD in Project Management (Australian National University–ANU)
• 2008 – Six Sigma Black Belt certification (ASQ partner)
• 2006 – Six Sigma Green Belt certification (Dell)
• 2003 – Master’s Degree in Computer Science (Federal University of Rio Grande do Sul–UFRGS)
• 1999 – Lato Sensu Graduate Course in Business Management (Getúlio Vargas Foundation–FGV , Brazil)
• 1990 – Bachelor’s Degree in Computer Science (Pontifical Catholic University of Rio Grande do Sul–PUCRS)

ECTE350 - Engineering Design and Management 3


Week 3 - Timetable
Agenda

• NPD, Systems, LRU and SRU

• Basic Concepts in Project Management

1. Project Success

2. Portfolio vs. Program vs. Project

3. Project vs. Operation

4. The Effectiveness of Planning in Enabling Project Success

5. One Size Does Not Fit All

6. Project Management Approaches

7. Project Management Knowledge Areas

• Applying Project Management Concepts in Practice


ECTE350 - Engineering Design and Management 3
New Product Development (NPD):
Embraer KC-390
KC-390
New Generation Multi-Mission Aircraft

Sources:
• https://defense.embraer.com/global/en/kc-390; https://www.youtube.com/watch?v=xlFWnTxrUmw

ECTE350 - Engineering Design and Management 3


KC-390
Systems

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Systems
Directed IR Counter Measures System (DIRCM)

Source:
• http://elbitsystems.com/product/directed-ir-countermeasures-2/

ECTE350 - Engineering Design and Management 3


DIRCM
Line Replaceable Units (LRUs)

Laser
Processor
generator
Jamming turret

• thermal camera
• laser head
• mirror turret

Source:
• http://elbitsystems.com/media/MUSIC-C_2016.pdf

ECTE350 - Engineering Design and Management 3


LRU
Shop Replaceable Units (SRUs)

A LRU can contain:


• One or more Shop-Replaceable Units
(SRUs), such as Processor, Video,
I/O, Ethernet, and Power Supply
• Connectors
• Mechanical parts

Source: www.curtisswrightds.com/products/electronic-systems/rugged-mission-computing/3u-mpmc/

ECTE350 - Engineering Design and Management 3


SRU

A SRU can contain:


• Military electronics boards
• Military components
• Mechanical parts
• Special boards (e.g. AFDX)

Sources: : www.abaco.com/products/neternity-swe540a; www.menmicro.com/products/pmc-modules-1/p522

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Q1: How can you develop this Processor?

Q2: How can you produce this Processor?

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Basic Concepts in
Project Management
1. Project Success
The Iron (or Golden) Triangle

scope/quality

time cost

Source:
• Atkinson, R. (1999). Project management - cost, time and quality, two best guesses and a phenomenon, its time to accept other success criteria. International Journal of Project
Management. Vol.17, Iss.6; pp.337-342.

ECTE350 - Engineering Design and Management 3


The Improved Iron Triangle

scope/quality

detriments

time cost

Source:
• Zwikael, O., Smyrk, J. R. (2011). Project management for the creation of organisational value. Springer, UK. ISBN: 9781849965156.

ECTE350 - Engineering Design and Management 3


Project Management Success
Efficiency of the development process to deliver project’s outputs

Source:
• Zwikael, O., Smyrk, J. R. (2011). Project management for the creation of organisational value. Springer, UK. ISBN: 9781849965156.

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Project Ownership Success
Perceived benefits of the project for customers, organisation and society

Octavio Frias de
Oliveira bridge,
São Paulo

Source:
• Zwikael, O., Smyrk, J. R. (2011). Project management for the creation of organisational value. Springer, UK. ISBN: 9781849965156.

ECTE350 - Engineering Design and Management 3


A More Elaborate View of Project Success
(Lechler and Dvir, 2010)

1. Efficiency
Project
The extent to which time and cost planned have been met. Management
Success
2. Effectiveness
The extent of benefits that the project brought to its client
Success dimensions grouped
according to theorizing in
project management area
3. Customer Satisfaction (Zwikael and Smyrk, 2011)

The extent of satisfaction with the benefits provided by the


project and how it was conducted Project
Ownership
Success
4. Business Results
The perceived value of the project

Sources:
• Lechler, T.G., Dvir, D. (2010). An Alternative Taxonomy of Project Management Structures: Linking Project Management Structures and Project Success. IEEE Transactions on
Engineering Management. Vol.57, Iss.2; pp.198-210.
• Zwikael, O., Smyrk, J. R. (2011). Project management for the creation of organisational value. Springer, UK. ISBN: 9781849965156.

ECTE350 - Engineering Design and Management 3


2. Portfolio vs. Program vs. Project
Project vs. Operation

Portfolio
A collection of projects, programs and operations managed
as a group to achieve strategic objectives.

Program
A group of projects managed in a
coordinated way to obtain benefits not
available from managing them individually

Project
A temporary endeavour
undertaken to create a unique
product or service

Source:
• Adapted from PMI (2017). A Guide to the Project Management Body of Knowledge (PMBOK Guide) – 6th ed., Project Management Institute, Philadelphia, PA.
ECTE350 - Engineering Design and Management 3
3. Project vs. Operation
Project vs. Operation

Operations
Activity

Repeatable, routine.
e.g.: the production of a new mobile

Project Time

Temporary, unique, multiple activity areas


e.g. the development of a new mobile

Source:
• PMI (2017). A Guide to the Project Management Body of Knowledge (PMBOK Guide) – 6th ed., Project Management Institute, Philadelphia, PA.
ECTE350 - Engineering Design and Management 3
4. The Effectiveness of Planning in
Enabling Project Success
Actually,

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Typical Project Life Cycle

Initiation Planning Executing Closing

Activity

Time

Project Proposal Project


(business case) Management Plan
(project charter) (PMP)

Source:
• Adapted from PMI (2017). A Guide to the Project Management Body of Knowledge (PMBOK Guide) – 6th ed., Project Management Institute, Philadelphia, PA.

ECTE350 - Engineering Design and Management 3


Planning Debate in the Literature

Several researchers have stated that quality of planning increases the


likelihood of improving project performance

Quality of + Project
Planning Performance

Sources:
• Stockstrom, C., Herstatt, C. (2008). Planning and uncertainty in new product development. R&D Management. Vol.38, Iss.5; pp.480-490.
• Baker, J., Jones, D. R., Cao, Q., Song, J. (2011). Conceptualizing the Dynamic Strategic Alignment Competency. Journal of the Association for Information Systems. Vol. 12, Iss.4; p.299-322.
• Pinto, J. K., Slevin, D. P. (1987). Critical factors in successful project implementation. IEEE Transactions on Engineering Management, Vol. EM-34, Iss.1, p.22–27
• Belout, A., Gauvreau, C. (2004). Factors influencing project success - the impact of human resource management. International Journal of Project Management. Vol. 22, p1–11
• Zwikael, O., Globerson S. (2004). Evaluating the quality of project planning: a model and field results. International Journal of Production Research. Vol. 42, Iss.8, p1545–1556

ECTE350 - Engineering Design and Management 3


Planning Debate in the Literature
However,
planning does not carry the same level of effectiveness under all scenarios

• Software characteristics differs from the rest of engineering projects (Rodriguez-Repiso et al., 2007)
- due to volatility of requirements, intangibility of software products or complexity (Napier et al., 2009)

• Planning is not a sufficient condition for a successful project


- due to difficulty to determine cost and duration (Dvir and Lechler, 2004)

• Planning may be more important for some type of projects


e.g. high risk and complex projects (Zwikael et al., 2014) or type of industries (Serrador and Turner, 2015).

• Planning has limitations for the development of innovative products


- due to complexity and unpredictable activities and changes (Conforto and Amaral, 2010)

Sources:
• Zwikael, O., Pathak, R. D., Singh, G., Ahmed, S. (2014). The moderating effect of risk on the relationship between planning and success. International Journal of Project Management.Vol.32,Iss.3;pp.435-441.
• Napier, N. P., Keil, M., Tan, F.B. (2009). IT project managers' construction of successful project management practice: a repertory grid investigation. Information Systems Journal. Vol.19, Iss.3; pp.255-282.
• Rodriguez-Repiso, L., Setchi, R., Salmeron, J.L. (2007). Modelling IT projects success: Emerging methodologies reviewed. Technovation. Vol.27, Iss.10; pp.582–594.
• Dvir, D., Lechler, T. (2004). Plans are nothing, changing plans is everything: the impact of changes on project success. Research Policy. Vol.33, Iss.1; pp.1-15.
• Conforto, E.C., Amaral, D.C. (2010). Evaluating an Agile Method for Planning and Controlling Innovative Projects. Project Management Journal. Vol.41, Iss.2; pp.73-80.
• Serrador, P., Turner, R. (2015). What is Enough Planning? Results From a Global Quantitative Study. IEEE Transactions on Engineering Management. Vol.62, Iss.4; pp.462-474.

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5. One Size Does Not Fit All
5. Can these projects be planned in the same way?

No! One size does not fit all!

ECTE350 - Engineering Design and Management 3


6. Project Management
Approaches
6.1. Agile
Manifesto for Agile Software Development

“We are uncovering better ways of developing software by doing it and helping others do it.
Through this work we have come to value:

1. Individuals and interactions over processes and tools


2. Working software over comprehensive documentation
3. Customer collaboration over contract negotiation
4. Responding to change over following a plan

That is, while there is value in the items on the right, we value the items on the left more.”

Kent Beck James Grenning Robert C. Martin


Mike Beedle Jim Highsmith Steve Mellor
Arie van Bennekum Andrew Hunt Ken Schwaber
Alistair Cockburn Ron Jeffries Jeff Sutherland
Ward Cunningham Jon Kern Dave Thomas
Martin Fowler Brian Marick

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6.1. Agile
Overview

• Agile covers project management, software development and testing through several practices.
Among others:

– Scrum, for managing product development (Moe et al., 2010)

– eXtreme programming (XP), for programming in pairs with extensive code review
(Mangalaraj, et al., 2009)

– Test driven development (TDD), a programming style where design, code and test are
tightly interwoven (Dogsa and Batic, 2011)

– Kanban, for designing, managing, and improving flow systems visually (Ahmad et al., 2018).

Sources:
• Moe, N.B., Dingsøyr, T., Dybå, T. (2010). A teamwork model for understanding an agile team: A case study of a Scrum project. Information and Software Technology. Vol.52, Iss.5; pp.480-491.
• Mangalaraj, G., Mahapatra, R., Nerur, S. (2009). Acceptance of software process innovations - the case of extreme programming. European Journal of Information Systems. Vol.18, Iss.4; pp.344-
354.
• Dogsa, T., Batic, D. (2011). The effectiveness of test-driven development: an industrial case study. Software Quality Journal. Vol.19, Iss.4; p643-661.
• Ahmad, M.O., Oivo, M., Dennehy, D., Conboy, K. (2018). Kanban in software engineering: A systematic mapping study. Journal of Systems and Software. Vol.137; pp.96-p113.

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6.1. Agile
Continuous Integration and Delivery

Daily scrum
meeting

Test

2-4 weeks

Deploy

Product Sprint Sprint


Backlog Backlog

Source:
• Adapted from Sutherland, J. (2014). Scrum: The Art of Doing Twice the Work in Half the Time. Crown Pub Inc. New York. ISBN. 978-0-385-34645-0.

ECTE350 - Engineering Design and Management 3


6.1. Agile
Continuous Integration and Delivery

Interaction 1 Interaction 2 Interaction 3

End Product

Source:
• Adapted from Sutherland, J. (2014). Scrum: The Art of Doing Twice the Work in Half the Time. Crown Pub Inc. New York. ISBN. 978-0-385-34645-0.

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6.2. Stage-Gate
Overview

Discovery Driving New Products to Market

Idea Screen
Gate
1

Second Screen Go to Development Go to Testing Go to Launch

Gate Gate Gate Gate


Stage 1 2 Stage 2 3 Stage 3 4 Stage 4 5 Stage 5

Scoping Build Business Development Testing and Launch


Case Validation

Post-Launch
Review

Source:
• Adapted from Cooper, R.G., Sommer, A.F. (2016). The Agile-Stage-Gate Hybrid Model: A Promising New Approach and a New Research Opportunity. Journal of Product
Innovation Management. Vol.33, Iss.5; pp.513-526.
ECTE350 - Engineering Design and Management 3
6.2. Stage-Gate
Overview

• Costs follow a proportional inverse relation to the project uncertainty and stages.

• That is, in the early stages, costs are usually low, as the project uncertainty is high, but as
uncertainty decreases during project development, the costs of subsequent phases increases
(Summers and Scherpereel, 2008).

• However, NPD projects have high uncertainty in the initial stages, which conflicts with
cost’s constraints from Stage-Gate in the initial stages (Oorschot et al., 2010).

Sources:
• Summers, G.J., Scherpereel, C.M. (2008). Decision making in product development: are you outside-in or inside-out? Management Decision. Vol.46, Iss.9; pp.1299-1312.
• van Oorschot, K., Sengupta, K., Akkermans, H., van Wassenhove, L. (2010). Get Fat Fast Surviving Stage-Gate® in NPD. Journal of Product Innovation Management. Vol.27,
Iss.6; pp. 828-839.

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6.3. Critical Chain Project Management (CCPM)
Example

Task 1
Critical Chain
(Critical Path)
Task 2

Task 3

Start Task 4 End

Task 5 Task 6

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6.3. Critical Chain Project Management (CCPM)
Example

Task 1

Task 2

Task 3

Start Task 4 End

Task 5 Task 6

Over estimations
embedded

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6.3. Critical Chain Project Management (CCPM)
Example

Task 1

Safety buffers
Task 2

Task 3

Start Task 4 End

Task 5 Task 6

Reduction

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6.4. Microsoft Solution Framework (MSF)
Project Phases

Envision Planning Developing Stabilizing Deploying

• Envision: Think about what needs to be accomplished and identify constraints

• Planning: Plan and design a solution to meet the needs and expectations within those constraints

• Developing: Developing the solution planned

• Stabilising: Validate a solution developed in order to check if it meets the needs and expectations

• Deploying: Deploy the solution developed and validated

Source:
• Microsoft (2005). Introduction to the Microsoft Solutions Framework―http://technet.microsoft.com/en-us/library/bb497060.aspx

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6.4. Microsoft Solution Framework (MSF)
Overview

• MSF has:

– Team model, which defines people who will work in the project and their respective
activities (Microsoft, 2002a, Santos, 2007).

– Process model, which divides the project development in five project phases (envision,
planning, developing, stabilizing and deploying) and milestones (Microsoft, 2002b).

– Principles (e.g. agility and learn from all experiences)

– Concepts (e.g. willingness to learn, motivated teams and customer-focused) and

– Proven practices (e.g. for multidisciplinary teams and working in teams) derived from its
own experience in development products and services (Microsoft, 2002b).

Sources:
• Microsoft (2005). Introduction to the Microsoft Solutions Framework―http://technet.microsoft.com/en-us/library/bb497060.aspx
• Microsoft (2002). MSF Team Model v. 3.1―https://www.microsoft.com/en-us/download/details.aspx?id=3214
• Microsoft (2002). MSF Process Model v. 3.1―https://www.microsoft.com/en-us/download/details.aspx?id=13870
• Santos, S.S. (2007). Comparing the Rational Unified Process (RUP) and Microsoft Solutions Framework (MSF) http://www.ibm.com/developerworks/rational/library/apr07/santos/

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6.5. Six Sigma
Approaches

Define Define
Measure Measure

Control DMAIC Verify DMADV

Analyse Analyse

Improve Design

Improve existing product or process Develop a new product or process

Source:
• https://www.isixsigma.com/new-to-six-sigma/design-for-six-sigma-dfss/dmaic-versus-dmadv/

ECTE350 - Engineering Design and Management 3


6.5. Six Sigma
Process Capability

Improvement
plan
Decreased
variation
UCL 2
Improved
average
UCL 1
_
X

LCL 2

LCL 1

Source:
• https://www.isixsigma.com/tools-templates/capability-indices-process-capability/process-capability-cp-cpk-and-process-performance-pp-ppk-what-difference/

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7. Project Management
Knowledge Areas
7. Project Management Knowledge Areas

1. Integration Management, to hold the overall project together and integrate it into a unified whole.

2. Scope Management, to ensure that the project includes all the work required and only the work required.

3. Time Management, to ensure that the project will be concluded on-time.

4. Cost Management, to ensure that the project will be concluded within the approved budget.

5. Quality Management, to ensure that project outputs and outcomes meet requirements and are fit for purpose.

6. Resource Management, to ensure that the project has enough and skilled resources required for the project.

7. Communications Management, to ensure an effective communication between project stakeholders (int/ext).

8. Risk Management, to ensure that risks associated to the projects are manageable.

9. Procurement Management, to decide which products/services should be procured from outside of the organisation

10. Stakeholder Management, because the project has been created to satisfy stakeholders needs

Source:
• PMI (2017). A Guide to the Project Management Body of Knowledge (PMBOK Guide) – 6th ed., Project Management Institute, Philadelphia, PA.
ECTE350 - Engineering Design and Management 3
7.1. Project Integration Management

Procurement Risk
Management Management

Project
Communications
Stakeholder
Management
Management

Scope Resource
Management Management

Quality
Time Management
Management

Cost
Management

ECTE350 - Engineering Design and Management 3


7.2. Scope Management SCOPE

How the customer How the project How the analyst How the programmers How the beta testers How the business
explain it leader understood it designed it wrote it received consultant described it

How the project was What operations How the customer How it was supported What marketing What the customer
documented installed was billed advertised really needed

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7.2. Scope Management SCOPE

WBS

Level 1
Level 2

Level 3

Level 4

Source:
• WBS Schedule Pro–https://download.cnet.com/WBS-Schedule-Pro/3000-2076_4-10072965.html
ECTE350 - Engineering Design and Management 3
7.3. Time Management TIME

Critical Path

Critical path is a method used to estimate the minimum project duration and determine the
amount of scheduling flexibility.

It is the sequence of activities that represents the longest path through a project, which
determines the shortest possible project duration.

Task 1

Critical link
Task 2

Task 3

Start Task 4 End

Task 5 Task 6

Non-critical
links

Source:
• PMI (2017). A Guide to the Project Management Body of Knowledge (PMBOK Guide) – 6th ed., Project Management Institute, Philadelphia, PA.
ECTE350 - Engineering Design and Management 3
7.3. Time Management TIME

Gantt Chart

Sources:
• WBS Schedule Pro–https://download.cnet.com/WBS-Schedule-Pro/3000-2076_4-10072965.html
• OpenProj–https://openproj.en.uptodown.com/windows/download
ECTE350 - Engineering Design and Management 3
7.4. Cost Management COST

Types of Costs

• Direct costs: costs associated to the project.

• Indirect costs: costs that cannot be directly traced to a specific project


(usually, indirect costs are accumulated and allocated equitably over multiple projects).

Example of Cost Direct Cost Indirect cost

Project manager hours X


Development team hours X
Senior manager hours X
Electricity X
Travels required by the project X

Why?

Source:
• Adapted from PMI (2017). A Guide to the Project Management Body of Knowledge (PMBOK Guide)–6th ed., Project Management Institute, Philadelphia, PA.
ECTE350 - Engineering Design and Management 3
7.4. Cost Management COST

Types of Costs

• Non-recurring engineering (NRE): one-time cost to develop, design or manufacture a new product.

• Recurring engineering (RE): recurrent cost to manufacture a new product.

Example of Cost NRE RE

Prototype development X
Use of the test equipment during development X
Use of the test equipment during production X
HALT/HASS chamber X X
Electronic components X X

Why?

Source:
• Highly Accelerated Life Testing (HALT) and Highly Accelerated Stress Screening (HASS) chamber–https://www.qualmark.com/systems/Multifunction
ECTE350 - Engineering Design and Management 3
7.5. Quality Management QUAL

Types of Costs

There are four types of costs associated the quality of products or services:

• Prevention, to keep failure and appraisal costs to a minimum.

• Appraisal, to determine the degree of conformance to quality requirements.

• Internal failure, associated to defects found before the customer receives the product or service.

• External failure, associated to defects found after the customer receives the product or service.

Total Quality Costs

Prevention Appraisal Internal Failure External Failure

Cost of Conformance Cost of Non-Conformance

Source:
• American Society for Quality (ASQ). Cost of Quality (COQ)–http://asq.org/learn-about-quality/cost-of-quality/overview/overview.html
ECTE350 - Engineering Design and Management 3
7.5. Quality Management QUAL

Types of Costs

Example:

Categories Examples Cost of Conformance Cost of Non-Conformance

Prevention training, documentation X


Appraisal software testing, inspection X
Internal failure e.g. rework, scrap X
External failure warranty, lost business X

Sources:
• Cost of Quality (COQ)–http://asq.org/learn-about-quality/cost-of-quality/overview/overview.html
• Project Management Skills–https://www.project-management-skills.com/project-quality-management.html
ECTE350 - Engineering Design and Management 3
7.6. Resource Management HR

Organisational Breakdown Structure (OBS)

Project Manager

Software Quality
Technical Leader Test Leader Assurance (SQA)
Manager

Developer
Tester 1 Intern
1

Developer
Tester 2
2

Developer
Tester 3
3

Developer
4

Developer
5

Source:
• PMI (2017). A Guide to the Project Management Body of Knowledge (PMBOK Guide)–6th ed., Project Management Institute, Philadelphia, PA.

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7.7. Communications Management COM

Meetings - Example

# Meeting Date Responsible Attendees Location

Project Status Mondays, Project Meeting Room


1 Team members
(AU) 9am-10am Manager 3

Global Project Mondays,


Project Technical and Conference
2 Coordination 5pm (AU),
Managers Test leaders Call
(AU & ENG) 8am (ENG)

Mondays- Team members


Daily Scrum Meeting Room
3 Fridays Scrum Master Product Owner
Meeting 7
1.30pm-1.45pm (Optional)

Sources:
• The secrets to running project status meetings that work! https://www.pmi.org/learning/library/secrets-running-project-status-meetings-7009
• Sutherland, J. (2014). Scrum: The Art of Doing Twice the Work in Half the Time. Crown Pub Inc. New York. ISBN. 978-0-385-34645-0.

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7.7. Communications Management COM

RACI - Roles and responsibilities of key people in a project (documents)

• Responsible: Those who do the actual work.


• Accountable: Those who are ultimately accountable for the completion of the work.
• Consulted: Those who provide input and/or output as needed.
• Informed: Those who want to be kept up to date on progress of the particular phase.

Example:

Software Quality
Word products Project Manager Technical Leader Developers Test Leader Testers
Assurance (SQA)

Project Management Plan (PMP) R, A C C C

Development Plan C R, A I C I C

Testing Plan C C I R, A I C

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7.8. Risk Management RISK

Risk Management Process

1 2 3 4

Analyse and evaluate


Identify risks that may Determine risk
the probability and Prioritise risks
affect the project response plans
impact of risks

Monitoring and control

Source:
• Adapted from Larson, E. W., Honig, B., Gray, C. F., Dantin, U., Baccarini, D. (2018). Project Management–The Managerial Process, 7th ed. McGraw-Hill, New York, NY.―Chapter 7

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7.8. Risk Management RISK

Risk Treatment

• Risk avoidance―aims at eliminating the threat or protect the project from its impact.
Examples: extend the schedule or reduce scope.

• Risk reduction―aims at reducing the probability of occurrence or impact of a risk.


Taking early action to reduce the probability and/or impact of a risk occurring on the
project is often more effective than trying to repair the damage after the risk has
occurred. Example: redundancy.

Source:
• Adapted from PMI (2017). A Guide to the Project Management Body of Knowledge (PMBOK Guide)–6th ed., Project Management Institute, Philadelphia, PA.
ECTE350 - Engineering Design and Management 3
7.8. Risk Management RISK

Risk Treatment

• Risk transference―aims at shifting the impact of a threat to a third party, together with
ownership of the response. Examples: insurance, subcontractor.

• Risk acceptance―acknowledge the risk and not take any action unless the risk occurs,
adopted when it is not possible or cost-effective to address a specific risk in any other
way. The most common strategy is to establish a contingency reserve, such as amounts of
time, money, or resources to handle the risks.
Example: a very expensive car without insurance.

Source:
• Adapted from PMI (2017). A Guide to the Project Management Body of Knowledge (PMBOK Guide)–6th ed., Project Management Institute, Philadelphia, PA.
ECTE350 - Engineering Design and Management 3
7.9. Procurement Management PROC

RFQ
Request for Quotation

Buyer has clearly defined Example:


criteria or specification Purchase Order (PO)

Request price, payment


terms and delivery dates

ECTE350 - Engineering Design and Management 3


7.9. Procurement Management PROC

RFI
RFP BAFO
Request for
Request for Proposal Best and Final Offer
Information
Buyer seeks solution-
Buyer does not have
based submissions to Example:
sufficient information to
meet their needs. Usually indicates that the
write a detailed request New Product Development
customer wants a
Request price, payment reduction in price for the
Request information
terms, delivery dates and solution.
related to a product or
how/who will do the
service or seller capability
work

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7.10. Project Stakeholder Management STAKE

What do you need to do for improving the levels of


cooperation, involvement and interest?

Cooperation Power

High High
Senior manager

Low Low
Senior manager

Involvement Interest
Low High Low High

Source:
• PMI (2017). A Guide to the Project Management Body of Knowledge (PMBOK Guide)–6th ed., Project Management Institute, Philadelphia, PA.

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Applying Project Management
Concepts in Practice
KC-390

Some Project Management Issues:


Project vs. Operation • Development, production and maintenance
COMM HR • Distribute teams
COMM • Cultural differences
PROC COMM
• Several contracts
HR COMM
• Large number of contacts
HR
• High skilled engineers and technicians
SCOPE QUAL
• Different levels of technologies
SCOPE QUAL
• Different levels of maturities
PROC TIME
• Long lead items
PROC TIME
• Export control issues
SCOPE
• Offset
STAKE
• Two customers: Embraer and Brazilian Air Force

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DIRCM

Some Project Management Issues:


Project vs. Operation • Development, production and maintenance
SCOPE HR
• Different levels of technologies
(electronic boards, laser and optics)
HR QUAL • High skilled engineers and technicians
PROC COMM • Several suppliers
PROC RISK • Need of 2nd source Laser
Processor
COST • High production costs generator

PROC TIME • Long lead items Jamming turret


PROC TIME • Export control issues • thermal camera
• laser head
COST • Low production volume • mirror turret
RISK • Contract with heavy fines in case of delays

Source:
• http://elbitsystems.com/media/MUSIC-C_2016.pdf LRU – Line Replaceable Unit

ECTE350 - Engineering Design and Management 3


LRU / SRU

Some Project Management Issues:


COST • Low volume production
• Host country
COMM HR – Different time zones
COMM
– Cultural differences
PROC TIME
– Export control issues
COMM HR
– Coordination between
headquarter and subsidiary
SCOPE HR • How to assemble it?
QUAL • Technology readiness levels (TRL)
SCOPE • Component engineering

Source: www.jjsmanufacturing.com

ECTE350 - Engineering Design and Management 3


LRU / SRU

Some Project Management Issues:


PROC • How to bring parts?
PROC TIME • Long lead times
PROC RISK • Are there “white flies”?
PROC RISK
• Are there special boards?
HR
• Training
TIME QUAL
• Process capability
• Management tools:
PLM, DOORS, ERP (e.g. Baan)
Organisational
support • How to test the LRU?
– Highly Accelerated Life Testing (HALT)
Highly Accelerated Stress Screening (HASS) chamber

Source: www.youtube.com/watch?v=UDSp7noNjCg

ECTE350 - Engineering Design and Management 3


LRU

Some Project Management Issues:


• How to test the LRU?
SCOPE RISK
– HALT/HASS chamber?
– In Circuit Test (ICT)?
• How to test the SRU?

Sources: www.pinaka.co.in/test-rigs.html and www.youtube.com/watch?v=k1N6z3ewTX0

ECTE350 - Engineering Design and Management 3


Seminar
Fostering Innovation in Large Multinational Enterprises
School of Management, Operations and Marketing – Seminar Series

ECTE350 - Engineering Design and Management 3


Next Section:

Enhancing Project
Management Learning
Enhancing Project Management Learning
Research

You are invited to participate in a study being undertaken by Dr Marco Antônio Amaral Féris and
A/Prof Rodney Clarke from University of Wollongong.

The study has been approved by the Human Research Ethics Committee from University of
Wollongong with a protocol number 2018/144.

Participation is completely voluntary and you may choose to withdraw your participation from the
research at any time.

ECTE350 - Engineering Design and Management 3


Enhancing Project Management Learning
QPLAN Website

ECTE350 - Engineering Design and Management 3


Enhancing Project Management Learning
QPLAN Tool

Typical Project Life Cycle Scope planning / Time planning


Cost planning / Quality planning Top-down and
The effectiveness of planning in enabling Human resource planning / Communication planning bottom-up approaches
project success Risk planning / Procurement planning

Project Management Success


Project Ownership Success

One size does not fit all


Project Classification on
Planning

Prioritisation

ECTE350 - Engineering Design and Management 3


Enhancing Project Management Learning
Project Report - Example

UOW
Project A
AUSTRALIA

ECTE350 - Engineering Design and Management 3


Enhancing Project Management Learning
Project Report - Example

ECTE350 - Engineering Design and Management 3


Enhancing Project Management Learning
Project Report - Example

ECTE350 - Engineering Design and Management 3


Enhancing Project Management Learning
How to participate

a) Access https://qplantool.wordpress.com/qplan-for-education/

b) Read the information sheet

c) Click on evaluate the quality of planning to participate in this research.

d) Define a fictitious project name

e) Answer the questionnaire

Project reports will be published on Moodle.

ECTE350 - Engineering Design and Management 3


Thank you!

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