You are on page 1of 14

Arab academy of science and technology

Faculty of Construction Engineering


ESPIII (English for Engineering)
Technical report writing

Project Management for Engineering

(Dec. 2018)

Submitted by: Abd El-Rahman Ghanem


Department: Construction Engineering
Reg#:17108320
Submitted to: Dr. Sally Abd El-Wahab
Submitted on: 26/12/2019
Acknowledgment
I would like to thank all my classmates for their helps that they provided for me
during the year. And I would like to declare the debt I owe to my teacher Dr.
Sally Abd El-Wahab for Her patience and tolerance on my mistakes
Abstract
Project is “"an item of work which requires planning, organizing, the dedication
of resources and the expenditure of funds, in order to produce a concept, a
product, or a plant.”(Bent, 1994, P.ix) This report discusses project management
for engineering by discussing the Fundamentals of Scheduling, Computer
Methods for Scheduling, Cost Estimating, Contract Planning Essentials and
Economic Decision Making. Finally it mentions researchers’ recommendations
to enhance the management skills level. Such as, watching videos to upgrade
the background. Also, engineers should take courses in management. The last
advice is that the small engineer should learn as much as possible from each
project he work at and take all the steps one at a time in order to be a great
project engineers in the future.
Table of content
Page No.

1.Introduction………………………………..……………………………….. 1

2. Fundamentals of planning…………………………………………. 1

2-1.CPM problems………………………………………………………… 1

3. Computer Methods of Scheduling…………………….………… 1

3-1. Limits on number of activities …………………….…………. 2

3-2.Construction Engineering Management Software…… 2

4. Cost Estimating……………………………………………………………. 4

4-1. Typical Estimating Systems…………………………..………….. 4

5. Contract planning essentials…………………………..………...... 4

5-1.What Is Contract?......................................................... 4

5-2.Why Have A Contract?.................................................. 5

5-3.Parties To The Contract…………………………………………….. 6


6. Economic Decision Making………………………………………..… 6

6-1. Life Cycle Costing……………………………………………………… 6

6-2. The Payback Period Method…………………………………….. 6

6-3. The Time Value Of Money………………………….……………. 6

7. Conclusion……………………………………………………………. 7
……..
Page |1

1. Introduction
Project is “"an item of work which requires planning, organizing, the
dedication of resources and the expenditure of funds, in order to produce a
concept, a product, or a plant.”(Bent, 1994, P.ix) it is necessary in any project to
have a person who is well prepared and talented enough to apply their projects,
these people are can be named as project engineers and/or project managers
(Bent, 1994).
The project management is not exclusive to one department, it can be
used in different departments such as, civil, mechanical and manufacturing
engineering. It can help to reduce and control the costs, time and manpower of
the engineering project (Bent, 1994).recently, Nicholas and Styen (2008)
discussed the project management meaning; system approach; engineering
systems; procedures for planning and controlling. Also, Berkun (2005)
engineering leadership and trust, discussed the making of good decision and
what to do when things go wrong.
This report discusses project management for engineering by discussing
the Fundamentals of Scheduling, Computer Methods for Scheduling, Cost
Estimating, Contract Planning Essentials and Economic Decision Making.
2. Fundamentals Of Planning
By the end of the 1950s, the first CPM (CRITICAL PATH METHOD OF
SCHEDULING) was established. The main purpose of CPM is to help in
planning and scheduling engineering projects after that James Kelly updated the
CPM to be what is used nowadays. One of CPM main properties is making
decision dependently on its information. Bent (1994, P.33) stated:” It provides a
means for planning, scheduling, controlling and resenting alternate courses of
action.”
2-1.CPM Problems
The CPM main problem is the number of tasks. Because of that the
number was more important than quality in 1960’s .As result of that the
developers focused on the method more than the program itself. But, they
solved this problem by balancing between the method and size of network that
handles tasks in med of 1970’s (Bent, 1994).
3. Computer Methods Of Scheduling
Huge upgrade in project management was found nowadays, after developing
many programs which help the work to be done easier and faster, especially just
after making these programs available on microcomputers. It reduces the effort
that project managers do. According to Bent stated (1994, P.74):” Project
management software gives the project manager direct access to powerful
project management tools, which means accurate and timely status reports,
rapid recalculation of project schedules, powerful resource and cost-tracking
capabilities.” The price of the software is depending on the quality of dealing
Page |2

with these main points: Project planning, resource management, tracking actual
versus planned progress, producing key reports, ease of use power and
sophistication. The higher the quality, the higher price (Bent, 1994).
3-1. Limits On Number Of Activities
One of the main problems that can be faced with project management
programs, especially cheap ones, is the limit on number of handled tasks in a
project. Most of programs can handle hundred tasks. If the project requirements
are less, then there is no problem. If not, subsequently the manger should put
this in consideration. (Bent, 1994)
3-2.Construction Engineering Management Software
Engineers mangers depends mainly on two programs with their
work which are Primavera (see figure1) and Microsoft project (see
figure2). Table 1 shows the differences between them and figure 3
shows the differences between their interfaces. It does not mean that
these are the only two options. Table 2 describes the other option by
giving the name of the program and a short brief) Ahmed & Saleh,
2014)
Page |3

Fig(1). Primavera icon Fig (2). Microsoft project icon

Fig (3). differences between Primavera and Microsoft project


interfaces
Page |4

4. Cost Estimating.
Cost estimating depends mainly on two major factors which are
estimating software quality and the experience of the estimator. You can have
almost absolute control on estimating process by changing the time and man
power levels. Although it is not necessary to have a constant result by changing
one of the factors. Appropriate, if you started with small amount of time and
resources this will give you cost estimates of acceptable dependability. Any
changes after that will cost amount of money as big as the change size.
However, there will be lots of wasted time and resources as result for changing
in veracity. The cycle continues tell the point which at the estimating of
economic conditions, local project conditions and quality of project
performance are what control the quality of estimating. No better quality can be
reached after that in the project except by good applying for the information on
the project as upgrade for it(Bent, 1994)..
4-1. Typical Estimating Systems
Page |5

The most common estimating systems that are used across the open
market are Richardsons (buildings and process plants), R.S. Means (mostly
buildings), Dodge (mostly buildings), Page and Nation (process plants) and
Icams (process plants). Almost all of these systems or standards are put out on
an occasional basis, some of them annually, and it is not an expensive at all to
update the estimating software of the company. It is also quite common for
enterprise and business to develop their own estimating software, but it becomes
a must to provide a development for the software to ensure the quality of the
special data base (Bent, 1994).
5. Contract Planning Essentials
Good project manager must take in consideration the quality of the
contracts of his company or project. Good contract has many benefits as Bent
(1994, P.237) stated:” reducing risks, maximizing cost savings, minimizing
claims, and improving economic return.” To achieve these goals and to get good
contract there are several steps should be taken in right order. First of all, project
objectives must be sorted by importance. Then, studying the risks that every
part can face. Finally, the costs needed should be calculated (Bent, 1994).
5-1.What Is Contract?
Contract as Bent stated (1994, P.238):” is a mutual business agreement
recognized by law under which one party undertakes to do work (or provide a
service) for another party for a "consideration."” The aspects should be
discussed by a contract are Contract Conditions (Commercial Terms & Pricing
Arrangements) and Scope of Work (Technical) Project Execution Plan, figure 4
shows a sample for contract(Bent, 1994).
Page |6

Fig (4). Sample for contract interfaces

5-2.Why Have A Contract?


Documentation of hazards, duties and relationships between the employer
and employee is the main purpose of the contract. For the employer the contract
is what guarantee a constant progress in the project, it is the weapon which by
the he can defend his project. It is what make the employee always under
control to do his tasks (Bent, 1994).
Page |7

5-3.Parties To The Contract


The three main parties in any engineering project are the owner, the
owner and the contractor, the normal contractual relationship among these three
parties on a single project is for the owner to have one agreement with the
engineer for design, procurement, and other services, and another contract with
the contractor for the construction work. The engineer and the contractor do not
make contract for each other. This is what called a "divided or split
responsibility" contract. In an alternative contract, called "single responsibility,
a general contractor is given total responsibility for the engineering,
procurement, and construction. The project manager must carefully choose a
specific contracting arrangement (Bent, 1994).
6. Economic Decision Making
6-1. Life Cycle Costing
Identifying the economic basis is the first step to take when a new
equipment is required to be bought. These basis are divided to as bent stated
(1994, P.248):” payback method of two years or less to justify equipment
purchases. Others require a life cycle cost analysis with no fuel price inflation
considered. Still other companies allow for a complete life cycle cost analysis,
including the impact for the fuel price inflation and the energy tax credit.”

6-2. The Payback Period Method


The payback period is the amount of time needed in order to gain back
the costs and money payed out of the incoming flow. Bent (1994, P.248) stated
how it work as “This method ignores all savings beyond the payback years, thus
penalizing projects that have long life potentials for those that offer high savings
for a relatively short period.” The payback period standard is used when income
is limited. It is important to know how fast cash will come back. The payback
period is simply computed as showed in figure 5. The responsibility of
calculating the costs of energy equipment according to payback period is on the
project manager. If the period was a one year or less the chance of long-range
success increases (Bent, 1994).

Fig (5). Payback period equation


Page |8

6-3. The Time Value Of Money


In order to achieve minimize the costs as possible the investment of capital is
necessary. By investing in money and resources today create a steady income
increases yearly. The value of currency today is different than any other time.
Because of that the time value of money should be considered on any income or
outcome of the business. Money transactions are considered as a cash flow in or
out of company. In order to calculate the income that can be received form an
investment, it is a must to find the interest rate which equalize payments out
coming and incoming, now and later on(Bent, 1994).
7. Conclusion
To sum up, in order to obtain a success in any project, high level of
management is a must.to reach this level there are skills should be achieved as
mentioned before. Such as, Fundamentals of planning, Computer Methods of
Scheduling, Cost estimating, Contract planning essentials and Economic
Decision Making.
The researchers recommend the following in order to enhance the
management skills level. First of all, watch videos to upgrade the background.
Also, engineers should take courses in management. The last advice is that the
small engineer should learn as much as possible from each project he work at
and take all the steps one at a time in order to be a great project engineers in the
future.
Page |9

References
1- Ahmed,H.,& Saleh,A.(2014).The effective Contribution of software
Applications in Various disciplines in civil Engineering. Retrieved from
http://www.iaeme.com/MasterAdmin/UploadFolder/THE%20EFFECTIVE
%20CONTRIBUTION%20OF%20SOFTWARE%20APPLICATIONS%20IN%20VARIOUS
%20DISCIPLINES%20OF%20CIVIL%20ENGINEERING/THE%20EFFECTIVE
%20CONTRIBUTION%20OF%20SOFTWARE%20APPLICATIONS%20IN%20VARIOUS
%20DISCIPLINES%20OF%20CIVIL%20ENGINEERING.pdf
2- Bent, J. (1994). Project management for engineering and construction.
THE FAIRMONT PRESS, INC., 700 Indian Trail, Lilburn, GA 30247
3- Berkun,S.(2005). The art of project management. O'Reilly Media, Inc
4- Nicholas,J.,& Steyn,H.(2008). Project Management for Business,
Engineering and Technology. Elsevier Inc.