Engineering Project

Department of Humanities & Sciences-

NUST- (SEECS)
LECTURE – 17 & 18
Management
Course Information

Course name Engineering Project Management

Course code OTM 455
Credit hours 2
Email iqra.asghar@seecs.edu.pk /
iqra_ntu60@yahoo.com
Visiting hours 2-4 pm (Wednesday & Thursday)
location SEECS (office 207)

Department of Humanities & Sciences-NUST- (SEECS)

Lecture – 17 & 18

 Topics covered
 Project Stakeholder Management
 Project Procurement Management
 Project Risks Management

Department of Humanities & Sciences-NUST- (SEECS)

  Project Stakeholder Management

To identify all people or organizations affected by a project, to

analyze stakeholder expectations, and to effectively engage
stakeholders

Department of Humanities & Sciences-NUST- (SEECS)

Project stakeholder management process

 Identifying Stakeholders: Identifying everyone involved in the project or affected by it, and
determining the best ways to manage relationships with them

 Planning Stakeholder Management: Determining strategies to effectively engage stakeholders

 Managing Stakeholder Engagement: Communicating and working with project stakeholders

to satisfy their needs and expectations, resolving issues, and fostering engagement in project
decisions and activities

 Controlling Stakeholder Engagement: Monitoring stakeholder relationships and adjusting

plans and strategies for engaging stakeholders as needed

Department of Humanities & Sciences-NUST- (SEECS)

Identifying stakeholders

Department of Humanities & Sciences-NUST- (SEECS)

 Identifying stakeholders

 Internal Project Stakeholders: Generally include the project sponsor, project

team, support staff, and internal customers for the project. Other internal
stakeholders include top management, other functional managers, and other
project managers

 External Project Stakeholders: include the project’s customers (if they are
external to the organization), competitors, suppliers, and other external groups
that are potentially involved in the project or affected by it, such as government
officials and concerned citizens

Department of Humanities & Sciences-NUST- (SEECS)

Identifying stakeholders

 Other stakeholders including:

 Program Director
 Project Manager’s Family
 Labor Unions
 Potential Customers

 It is also necessary to focus on stakeholders with the most direct ties to a project, for
example only key suppliers

Department of Humanities & Sciences-NUST- (SEECS)

Identifying stakeholders

Department of Humanities & Sciences-NUST- (SEECS)

 Classifying Stakeholders
 A power/interest grid can be used to group stakeholders based on their level of authority
(power) and their level of concern (interest) for project outcomes

Department of Humanities & Sciences-NUST- (SEECS)

Procurement management

 Most of the projects will need to acquire some resources from outside

 Not understanding the different ways to contract could result in unnecessary risk for
the project

Department of Humanities & Sciences-NUST- (SEECS)

Procurement management process

 Four Processes
 Plan Procurements
 Conduct Procurements
 Administer Procurements
 Close Procurements

Plan Conduct Administer Close

Procurements Procurements Procurements Procurements

Department of Humanities & Sciences-NUST- (SEECS)

 Procurement documents

 Request for Proposal (RFP)

 Asks for the price and how/who will do the work

 Invitation for Bid (IFB)

 One simple price to do the work

 Request for Quotation (RFQ)

 Price per unit quote

Department of Humanities & Sciences-NUST- (SEECS)

Tender vs RFP

 A tender is an offer to do work or supply goods at a fixed price

 A request for proposal (RFP) is a document that an organization posts to obtain bids from potential vendors for
a product or service

 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

Department of Humanities & Sciences-NUST- (SEECS)

 Project Risk management

 “A risk is an uncertain
potential condition or event
that, if it occurs and is not
mitigated, may have
negative or positive impact
on the project objectives.”

Department of Humanities & Sciences-NUST- (SEECS)

 Positive vs negative risks

• Negative Risk: “Each day that a critical piece of equipment is late in reaching
the site, will throw the start up schedule off by these days.”

• Positive Risk: “If we buy pumps for all our facilities bundled together in one
purchase order, we can obtain a volume discount”

• In general, we find that a positive risk is an opportunity to be pursued, while a

negative risk is an issue to avoid or mitigate

Department of Humanities & Sciences-NUST- (SEECS)

Nature of Risks

Department of Humanities & Sciences-NUST- (SEECS)

Project Risk Management

“Practices and procedures that enable managers to identify, assess, categorize,

monitor, control, and mitigate risk before or while it is transitioning to a
problem.”

Department of Humanities & Sciences-NUST- (SEECS)

 Risk Management process

• Risk Management Planning: Deciding how to approach and plan the risk management activities

• Risk Identification (Qualitative & Quantitative):

Determining which risks might affect the project and documenting their characteristics. i.e.
Identify project, product and business risks

 Qualitative Risk Analysis: Performing a qualitative analysis of risks and conditions to prioritize
their effects on project objectives
 Quantitative Risk Analysis: Measuring the probability and consequences of risks and estimating
their implications for project objectives

Department of Humanities & Sciences-NUST- (SEECS)

 Risk Management process

• Risk Response Planning: Developing procedures and

techniques to enhance opportunities and reduce threats to the
project objectives

• Risk Monitoring & Control: Control-monitoring residual

risks, identifying new risks, executing risk reduction plans,
and evaluating their effectiveness through out the project life
cycle

Department of Humanities & Sciences-NUST- (SEECS)

Response to risks

Risk

Eliminate Risk
Eliminate Risk
Mitigate
Mitigate
Deflect
Deflect

AcceptRisk
Accept Risk

Cost
Department of Humanities & Sciences-NUST- (SEECS)
Response to risks

Eliminating Risk:

Remove the cause

Alternative course of action
This should occur during the design and planning stage

Mitigating Risk:

Reduce the risk

Use proven technology
Simulate, model and develop prototypes
Department of Humanities & Sciences-NUST- (SEECS)
Response to risks

Deflecting Risk:

Transfer the risk (in part or whole) to another party

Accepting Risk:

Typically developed for

Underestimating bill of materials
Unexpected procurement price changes
Change in project scope
Schedule delays

Department of Humanities & Sciences-NUST- (SEECS)

Identifying risks

Risk identification tools and techniques include:

Brainstorming
The Delphi Technique
Interviewing
SWOT analysis

Department of Humanities & Sciences-NUST- (SEECS)

 Brainstorming

• A technique by which a group attempts to generate ideas or find a solution for a specific problem by amassing
ideas spontaneously and without judgment

• An experienced facilitator should run the brainstorming session

Department of Humanities & Sciences-NUST- (SEECS)

 Delphi Technique

• It is used to derive a consensus among a panel of experts who make predictions about future developments
• Provides independent and anonymous input regarding future events
• Uses repeated rounds of questioning and written responses and avoids the biasing effects

Department of Humanities & Sciences-NUST- (SEECS)

 Interviewing

• A fact-finding technique for collecting information in face-to-face, phone, e-mail, or instant-messaging discussions

• Interviewing people with similar project experience is an important tool for identifying potential risks

Department of Humanities & Sciences-NUST- (SEECS)

 Interviewing

• SWOT analysis (strengths, weaknesses, opportunities, and threats) can also be used during risk identification

• Helps identify the broad negative and positive risks that apply to a project

Department of Humanities & Sciences-NUST- (SEECS)

 Risk register

• A document that contains the results of various risk management processes and that is often displayed in a table or
spreadsheet format
• A tool for documenting potential risk events and related information
• The main output of the risk identification process is a list of identified risks and other information needed to begin
creating a risk register

Department of Humanities & Sciences-NUST- (SEECS)

 Risk register

 An identification number for each risk event
 Rank for each risk event
 Name of each risk event
 Description of each risk event
 Category under which each risk event falls
 Root cause of each risk
 Triggers for each risk; triggers are indicators or
symptoms of actual risk events
 Potential responses to each risk
 The risk owner or person who will own or take
responsibility for each risk
 The probability and impact of each risk occurring.
 The status of each risk

Department of Humanities & Sciences-NUST- (SEECS)

Sample Risk Register

 No: R44
 Rank: 1
 Risk: New customer
 Description: We have never done a project for this organization before and don’t
know too much about them. One of our company’s strengths is building good
customer relationships, which often leads to further projects with that customer.
We might have trouble working with this customer because they are new to us.
 Category: People risk

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Risk tracking

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 Thanks

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