Project Planning and
Acquisition
Project
Project: A one-of-a kind activity, aimed at
producing some product or outcome that has never
existed before.
Collection of tasks aimed toward a single set of
objectives, eliminating in a definable end point having
a finite life span.
Construction or Aerospace projects
Project Management
Three essential considerations in
Project management:
Time – Project Schedule
Cost - in dollars and other resources
Quality or performance – the extent
to which objectives are achieved
“Everyone loves Nepal and Nepalese but
nobody likes the way we work”
The Project Proposal Process
Preproposal effort:
Begin work on the proposal before receiveing RFP
(Request for Proposal)
Identify new business opportunities and dedicate time
and effort to develop the skills and resources required
Expensive process
Phases in winning new contract in a project
oriented business
Assess and
plan the new Develop the Bid
Preliminary new business
bid decision business Decision
Identify new acquisition opportunity
business
opportunity
Develop
Negotiate
proposal RFP
Win Contract
and pricing
Proposal Preparation
Tasks of Proposal Manager
Give an overview of what the RFP asks for
Provide the best estimate from company intelligence as to
what the customer really wants and the factors the
customer will use in determining the contract winner
Identify the organization, schedule, and labor-hour
allocations for the proposal effort
Provide handouts giving, in as much detail as preparation
time has permitted, management’s concept of how the
project might be carried out, and instructions to the project
team
Proposal Contents
RFP will often specify separate management,
technical, and cost proposals
Management proposals – company, organization,
relevant experience, management methods and
control systems
Technical proposal – Outlines the design concept
proposed to meet the client’s needs
Cost Proposal – Detailed price breakdown, aspects of
inflation, contingencies, and contract charge
procedures
Project Planning Tools
Statement of Work
Milestone Schedule
Work Breakdown structure
Gantt Charts
Network Scheduling Systems
Resource Allocation Methods
Statement of Work
Accompanies the project award
Contains :
general scope of work,
itemize the tasks to be performed, the contract end
items(products) to be delivered, and
the data and reports to be supplied
Milestone Schedule
Work Breakdown Structure
Gantt Chart
Network Scheduling
Critical Path Method
Steps:
1. Specify the individual
activities
2. Determine the squence
of those activities Activity-on-node network diagram
3. Draw a network diagram
4. Estimate the completion
time for each activity
5. Update the CPM
Arrow network diagram
Network Scheduling
Optimistic Time –everything goes right
Most Likely Time
Pessimistic Time – everything goes wrong
Expected time = a + 4m + b
6
Standard deviation = b-a
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