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Engineering management  Leading

- It involves the social and formal


 a specialized form of management that is sources of influence that is used to
required to successfully lead engineering or inspire action taken by others.
technical personnel and projects - Leadership traits
 a way in which the practice of o High level of personal drive
management applies in the engineering o Desire to lead
practices o Personal integrity
 It connect the technological problem- o Self-confidence
solving knowledge of engineering and the o Analytical ability
organizational, administrative, and planning o Knowledge of the company
abilities of management in order to o Charisma
administer the operational performance of o Creativity
complex engineering driven businesses. o flexibility
 Controlling
Engineering managers
- Controlling consists of verifying
 typically require training and experience whether everything occurs in
in both general management and the conformities with the plans adopted,
specific engineering disciplines that will instructions issued and principles
be used by the engineering team to be established.
managed - Controlling ensures that there is
effective and efficient utilization of
5 M’s Of Engineering Management organizational resources so as to
achieve the planned goals.
 Manpower
 Machine Steps of control process
 Material  Set standards
 Method  Measure performance
 Money  Compare performance
 Take corrective action
Areas of engineering management
Main functional Areas of engineering
 Product development
management
 manufacturing
 construction  Production management
 design engineering - it involves in product planning and
 Industrial engineering development, plant location, lay-out
 Technology and maintenance, production
 Production systems and machines
 Marketing Management
Function of engineering management
- It is the planning, analysis,
 Planning implementation and control of
- It is a function of management that programs designed to bring desired
involves setting objective and exchanges with target market for
determining course of action or the purpose of achieving
achieving those objectives organizational objectives.
 Types of planning  Financial management
o Strategic - It can be look upon the study of
o Intermediate relationship between the raising of
o operational funds and deployment of funds.
 Organizing - Main decision in financial
- It is a function of management that management
involves developing of organization o Investment policies
and allocating human resources for o Method of financing
the accomplishment of the o Dividend decision
objective
- The structure of the organization is
the framework within which effort is
coordinated.
- Organization chart – graphical
representation of the chain of
commands within an organization
 Construction Project  Heavy Construction Project
- It is mainly concerned on project - usually publicly funded, therefore
implementation and has a clearly sensitive to governmental policy
defined beginning and end. - tend to be long in duration
 Four traits common in Construction - designed by civil engineers and
Project: built by heavy construction
 Each project is unique. contractors
 A project works against schedules
and budgets to produce a specific  Project Participants
result.  The Owner
 The construction team cuts across - also called the client
many organizations and functional - person or organization that will pay
lines that involve virtually every the bills
department in the company. - receive the ultimate benefits of the
 Projects come in various shapes, finished project
sizes, and complexities.  The Design Professional
 Construction Project Management - interpret or assist the owner in
- process of managing construction developing the project's scope,
projects to bring about the budget and schedule
successful completion of specific - prepare and review construction
project goals and objectives documents
- The total development of a project - monitor the construction quality
normally consists of several phases - assist construction manager
requiring a diverse range of  The Constructor
specialized services. - responsible for the interpretation of
 Project Goals the contract documents and the
The Construction Manager's Creed physical construction of the project
Finish the project safely: - support the mobilization efforts of all
 As specified trade conductors
 On schedule
 Within budget
 Meeting all specified quality levels
- To finish project as specified, on
schedule and within budget and to
attain quality levels required by
contract.
 Categories of Construction Projects
 Residential Projects
- construction of individual homes,
small condominium and
apartment building complexes
- privately funded by individual
owners  Other Project Participants
- typically designed by architects o Material vendors
 Building Construction Projects o Equipment manufacturers and
- most of these projects are suppliers
privately funded o Financial institutions
- has greater technical o Government officials
sophistication than residential o Insurance
construction o Lawyers
- designed by architects with  Project success or failure
engineering support and - delivery or completion on or before
generally build by general the date agreed with the customer
contractors - completion within the budgeted
cost
- a building that meets the set  Procurement Phase
standards of quality - In this phase, the estimate is
prepared by all the contractors who
PROJECT CHRONOLOGY
are bidding the work as by the
Preconstruction Phase project team
 Bidding and Award
 Design Phase - the project formally transitions from
 Conceptual Planning design into construction
- the owner makes decisions that set
the tone for the project Construction Phase
- Master Schedule - considers all - The actual physical construction of the
phases of the project project
- In this phase, the estimate will be
prepared with very little information  Substantial Completion
 Schematic Design - the stage of a project when the
- the design team investigates owner can begin to occupy and/or
alternate design solutions and utilize the facility
materials and systems  Punchlist
- Design alternatives, cost reduction - is a list of all items of work that the
ideas are presented owner/designer/construction
 Value Engineering manager team is required to
- Its objective is to optimize the cost complete before final payment is
and/or performance without released
sacrificing quality or compromising  Project Closeout
intended function - the final step which is the transition
 Work Package (Bid Package) from design and construction to the
- is the organizational tool used to actual use of the facility
“break down” the construction  As-Built Drawings
project - are original contract drawings
 Long-Lead Item adjusted to reflect all the changes
- is a critical piece of equipment or that occurred
material that takes a significant
amount of time to manufacture and  Forms Of Risks
bring to the site  The Work Environment
 Design Development - Country, Location, Neighbours,
- the design team evaluates and Regulatory Environment, Job Site
selects all the major systems and Condition, Economic/Market,
components of the project Conditions
- The level of information is much  Technical Complexity
more defined - Planned Technologies, Product
 Construction Documents Availability, Degree of Finishes,
- include the preparation of the Materials, Mechanical/Electrical
technical documents, drawings, and Systems
specifications  The Process
 Fair Cost (Owner Estimate) - Project Funding, Timetable,
- is the fair value of the work sees by Currency, Preconstruction
the construction manager that will Information, Project Unknowns
be competitively priced by  Owner Organization
identified, prequalified bidders - Sophistication, Organizational
 Addenda Structure, Decision Making
- are the notices of changes in the
contract documents during the bid  CONTINGENCY
 Cash Flow Analysis - is additional money or time added
- Projects the owner’s cash needs on into a budget or schedule to allow
a day-to-day basis for changes stemming from
conditions different from what were
originally assumed

 Delivery Method
- Means the approach used to
organize the project team so as to
manage the entire designing and
building process. The owner decides
which designers to hire, when to hire
them and under what type of
contract
 Construction Project Management
 Design-Bid-Build - This delivery method involves hiring
- the owner hires a design professional both a design firm and a
who prepares a complete set of construction project management
contract documents for the owner in firm early in the preconstruction
exchange for a design fee phase.
- The owner also negotiates a price - The original intent of this delivery
with a general contractor once a method was for the owner to hire a
complete set of contract is set. construction management firm
- Owner holds one contract with which would essentially act as their
architect and one contract with advisor, with the owner holding all
constructor. Architect and the contracts directly with the
constructor hold subcontracts as subcontractors.
required to complete their parts of - Owner holds one contract with
the work. architect and one 2-part contract
with CM/R. The first part of the CM/R
contract is for pre-construction
advice and the second part is a
Guaranteed Maximum Price(GMP)
for the total cost of construction.
 FAST-TRACK CONSTRUCTION
- In this arrangement, the project is
approached in less of linear fashion.
The project is broken down into
smaller pieces called work
packages. Each package are
 DESIGN-BUILD designed and constructed
- the designer and the contractor are separately.
either from the same company or,
through a joint venture, form a single  CONTRACT TYPES
company for the duration of the - A contract is simply an agreement
project between two or more people in
- A joint venture is the legal binding of which one person agrees to perform
two companies for the purpose of a specific task or provide goods or a
providing a competitive advantage service to another in exchange for
that would be difficult to attain something in return
alone. The term turnkey can also be  Single Fixed Price
used to describe this approach. - This contract is also called a lump-
- Owner holds one contract with sum contract where the contractor
design-builder. Design-builder hold agrees to provide a specified
subcontracts with architect and amount of work for a specific sum.
others as required to complete their  Unit Price Contract
parts of the work. - In this agreement, the owner and
the contractor agree to the price
that will be charge per unit for the
major elements of the project.
 Cost Plus A Fee
- This is also called a reimbursable or a
time and materials contract. The
contractor works on the project and
is reimbursed by the owner for the
costs.
- This contract makes sense when the
scope of the project is difficult to
define or when it is important to fast-
track the project.
 Guaranteed Maximum Price
- In this type of contract, the
contractor is reimbursed at cost with
an agreed-upon fee up to the GMP
which is essentially a cap. It is not
unusual to include in this contract an
incentive clause which specifies that
the contractor will receive additional
profit for bringing the project in
under the GMP.

 CONTRACT CHANGES OCCUR FOR THREE


MAIN REASONS:
 Because of a change in owner
requirements, the scope of the
project changes.
 Because of conditions unforeseen at
the time the contract is signed, the
work must be performed differently.
 Due to omissions or design features
that cannot be built as specified, the
design must be adjusted.
 Where do managers of construction  What Is a Project?
project come from? - A project is a temporary endeavor
- University of Texas at Austin’s with a defined beginning and end
Cockrell School of Engineering undertaken to meet unique goals
- Home of the construction industry and objectives, typically to bring
institute, which offers continuing- about beneficial change or added
education courses, online-education value
courses and numerous workshops  WHY ESTIMATE?
 Project Planning Activities - Enables you to weigh anticipated
 Construction – execution plan benefits against anticipated costs to
- Master plan for executing the see whether the project makes sense
field work, from bidding to - It allows you to see whether the
completion to transfer to the necessary funds are available to
owner support the project
 Time plan – field schedule - It serves as a guideline to help
- Itemized working plan for the ensure that you have sufficient funds
project execution, which results in to complete the project
the detailed construction  ESTIMATE CONSIDERATIONS
schedule  QUANTITIES
 Money plans – budget, cash flow  PRODUCTIVITY
- Detailed project budget  WEATHER AND STRIKES
 Resources plans – people, materials,  OVERHEAD AND PROFIT
systems and money  Project Size
- Forecasts the human, material  Project Quality
and system resources  Location
 Organization Activities  Time
 Prepare organizational chart and  Other Market Conditions
personal loading curves  TYPES OF ESTIMATES
 Write key position descriptions  FEASIBILITY ESTIMATE
 Issue site operating procedures - The estimator may have only some
 Mobilize and motivate field staff general information such as total
 Arrange site facilities and systems square footage of buildings, number
 Issue and start control procedures of rooms or beds for an office or
 Control Activities hospital, KW capacity of a power
 Quality – field engineering, materials plant, or cubic yards of fill in a dam
and construction project.
 Time – measured by the construction  APPROPRIATION ESTIMATE
project schedule - The design becomes somewhat
 Money – measured by the more refined with a preliminary plot
construction budget and cash flow plan, basic mechanical and
 Physical progress and productivity electrical designs, and an estimate
 Project reporting of the design costs. The additional
project definition increases the
 According to the Philippine Statistics expected accuracy of the estimate.
Authority (PSA), the construction industry  CAPITAL COST ESTIMATE
grew by 2.8 percent in the fourth - Most of the design data are so well
quarter of 2017, slower compared with defined that the accuracy improves
the 10.7 percent growth recorded in the rapidly.
previous year.  DEFINITIVE ESTIMATE
 The growth was driven by the increase - Occurs on a design-build job when
in Public Construction but was weighed the design is almost finished. By that
down by the decline in Private time most of the materials have
Construction. been ordered, and only unknowns in
the construction cost area are still
outstanding.
 Fair Cost Estimate
- detailed estimate prepared by the
owner and project team
 Bid Estimate
- contractors who are bidding the
project also prepare detailed
estimates
 In-house work
- work that is to be done by the
contractor's own work-force
 Direct Cost
- Building Materials, Labor Cost,
Rentals of Equipment, Daily Wages
 Indirect Cost
- Home office overhead, Field office
overhead
 Lump sum
- A complete payment consisting of a
single sum of money
 PROJECT BUDGETING
 VALUE ENGINEERING
- Origin, Lawrence Miles “Young General
Electric Engineer”
- a systematic and organized approach
to providing the necessary functions in a
project at the lowest cost. Value
engineering promotes the substitution of
materials and methods with less
expensive alternatives, without
sacrificing functionality. It is focused
solely on the functions of various
components and materials, rather than
their physical attributes.
- Also called value analysis
 Work Breakdown Structure - Show clear ownership by task leaders
- In project management and systems of  ADVANTAGE OF WORK BREAKDOWN
engineering these is a deliverable STRUCTURE
hierarchical decomposition of the work - Total project can be thought out in
to be executed by the project team advance
- A key project that organizes the team’s - Costs and budgets can be established
work - Responsibility assignments can begin to
- Dividing complex projects to simpler take shape
and manageable tasks - Can be used to begin putting together
 In Work Breakdown Structure, schedule
- All items are potential risks. Therefore its
 much larger tasks are broken-down to
essential to defining risk
manageable chunks of work and these
 DISADVANTAGE OF WORK BREAKDOWN
can be easily supervised and estimate
STRUCTURE
 elements maybe a product, data, a  DURATION. No reflection of
service or any combination how long things will take
 DEPENDENCIES. No casual relationships
 also provides a necessary framework for between tasks
detailed cost estimating and control  MILESTONES. No significant points in
along with providing guidance for developments other than the
schedule development deliverables

LEVEL 1 – Over all Project Definition

Highest level entry corresponds to the overall


project deliverable

LEVEL 2- Identify and define all deliverables

Start with high-levels outcome

LEVEL 3 – Decompose deliverables into high-


level activities

What needs to be done to complete the


deliverables

LEVEL 4 – Breakdown activities into more


granular activities

Breakdown to measurable details

 GOALS
- Giving visibility to important work efforts
- Giving visibility to risky efforts
- Illustrate the correlation between activities
and deliverables

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