Contents

PM Milestone Project Management Templates

PM Milestone Project Management Templates

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Chapter 1 The Project Management Approach 1

Chapter 2 Organizing an Effective Engineering Team 23

Chapter 3 Fundamentals of Scheduling 31

Chapter 4 Computer Methods for Scheduling 73

Chapter 5 Managing Cogeneration Projects 103

Chapter 6 Cost Estimating: Conceptual and Detailed 131

Chapter 7 Keeping a Project On Time and Within Budget 187

Chapter 8 Contract Planning Essentials 237

Chapter 9 Economic Decision Making 247

Chapter 10 Case Studies and Examples 277

Chapter 11 Personal Performance. Company Culture.

and Project Leadership for the 1990's 297

Appendix A Sample Schedules 313

Appendix B Cost Estimating References 323

Index 327

Preface

A "Project" can be defined loosely as 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. The second edition of Project Management for Engineering and Construction focuses on "Plant Projects," all of which require design engineering, the purchase of materials, and their installation.

Almost all companies have personnel who are trained, skilled and dedicated to the execution of their projects. The individuals who lead these efforts are called project engineers and/or project managers. Supporting these project managers are such personnel as design engineers, procurement personnel, contracts officers, estimators, cost engineers, planners, construction managers and a variety of technical specialists.

In many cases, the type, size and complexity of projects vary greatly and, therefore, the skills and experience of project engineers, project managers and support personnel can, similarly, vary in capability.

The major factors which are essential for the successful execution of projects are:

Cost Management

Many projects have cost as the number one objective. This requires the project to be completed within budgeted cost. Adequate business skills of the project manager are essential to meet this objective.

Time Management

To meet the "cost objective," the efficient management of time is essential. This means that the predetermined schedule, upon which the cost estimate was based, must be met.

• Human Resources

Of all the resources required for plant projects, the people resources are the most difficult to manage. Inter-personnel skills and the effective motivation of people, at all levels, are essential for successful project execution.

* Communications

A formal and informal structure of effective communications is absolutely essential for successful project execution. In addition to a lack of people skills, many organizations form barriers to project success. These "barriers" are generally referred to as the Matrix Interface Conflicts (MICs). The conflicts or bamers are caused to departmental jealousies, rivalries and failure by management to create a "culture" where "project consciousness" and esprit de corps are common to all personnel. The 'Total Quality Management" programs sweeping industry are an attempt to solve these problems.

The second edition of Project Management for Engineering and Construction includes a new chapter on Personal Performance, Company Culture and Project Leadership for the 1990's. This chapter deals with improving communication and removing bamers for effective project management channels.

In addition, a new chapter on contract planning essentials addresses "tricks of the trade" for developing contract strategies, defining responsibilities and addressing various forms of contracts including reimbursable, fixed-price and target contracts..

Hopefully, Project Management for Engineering and Construction will provide the tools readers need to complete their projects on time and within budgets.

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