Engineering Management– 2016 Semester 2
Assignment 1: Project Management Plan (50 Marks) weighting 25%
Due Date: Thursday 13th of October 2016
HOUSE CONSTRUCTION PROJECT
1.0 PROJECT BRIEF
Project Background
You are a project manager for a medium-sized house construction company, and you just got a phone call from the company owner saying that he is with a customer who wants to know the indicative price for a 200 m2 house to be constructed in a section he owns. He wants you to call him back with to him a quick estimate of how much it will cost and how long it will take to complete the project. He also told you that you will be the project manager assigned to this project if and when the company owner closes the deal later.
What you are required to do:
To develop a Project Management Plan from the information given and set up the project using Microsoft Project. You are required to submit the following for marking:
i. A Project Management Plan report AND
ii. a Microsoft Project 2010 ( or later version) file of the Project schedule (i.e. WBS, Gantt Chart and Network diagram) and all planning information
Your Project Management Plan report must cover
• 10 project management knowledge areas
• answer the key questions in the project brief
• The role of the Engineer & Society
• Environment & Sustainability issues relevant to the project
• Any ethical issues
• List all assumptions made
Please refer to the following:
• Marking Guide for the actual distribution of marks
• Project Details and Key questions
2.0 MARKING GUIDE
Aspect % Weight Max mark

Project Time Management –indicative plan (15 marks - 15% weighting)
Initial Indicative schedule (Weeks or months) 3.00% 3
Create Manual WBS 6.00% 6
Estimate duration of Paintwork 6.00% 6

Project Time Management -Project Schedule & Use of MS Project
(30 marks - 30% weighting)
Set-up MS Project information (calendar etc) 2.00% 2
Set-up Activities (Task names) in MS Project 2.00% 2
Set-up Task Durations in MS Project 2.00% 2
Set-up Task dependencies (Sequence Activities ) in MS Project 2.00% 2
Create appropriate resources in MS Project 2.00% 2
Allocate & Analyse resources in MS Project 3.00% 3
Work Breakdown Structure (WBS) in MS Project 3.00% 3
Gantt chart showing dependencies in MS Project 2.00% 2
Project Baseline & tracking Gantt chart in MS Project 2.00% 2
Network diagram showing total duration, float and critical path in MS Project 10.00% 10

Project Cost Management (30 marks - 30% weighting)
Indicative Price Estimate 3.00% 3
Apportioning price estimate 7.00% 7
Detailed estimate cost- foundation 8.00% 8
Detailed estimate cost- Bottom-up 7.00% 7
Project Management & Finance –Budgets, Cash Flows 1.00% 1
Trade-off analysis/Project Crashing, cost vs. time etc 2.00% 2
Cost Performance Measurement/Benefit tracking 2.00% 2

Other Knowledge Areas (10 marks - 10% weighting)
Project Integration Plan 2.00% 2
Scope Management Plan 2.00% 2
Stakeholder Management Plan 1.00% 1
Human Resources Management Plan 1.00% 1
Quality Management Plan 1.00% 1
Risk Management Plan 1.00% 1
Communications Management Plan 1.00% 1
Procurement Management Plan 1.00% 1

Overall presentation & Sustainability (15 marks - 15% weighting)
Introduction, Summary & Conclusion 1.00% 1
Engineer & Society 2.00% 2
Ethical issues 2.00% 2
Environment & Sustainability 3.00% 3
Formatting and typesetting. Modern tool usage 1.00% 1
Organization of Report - clarity & flow of ideas 1.00% 1
Acknowledge of Sources/References 5.00% 5
Total Marks 100% 100
3.0 PROJECT DETAILS & KEY QUESTIONS
ESTIMATING
You are a project manager for a medium-sized house construction company, and you just got a phone call from the company owner saying that he is with a customer who wants to know the indicative price for a 200 m2 house to be constructed in a section he owns. He wants you to call him back with to him a quick estimate of how much it will cost and how long it will take to complete the project. He also told you that you will be the project manager assigned to this project if and when the company owner closes the deal later.
1. Having been in the construction business and with this company for a good while, you know that direct cost is about $1,000 per m2. The indicative price is around twice the direct costs, plus or minus 10%. What is the indicative price you will give your manager? 2 marks
2. You were about to make the call when suddenly an incoming email popped in from Finance about price adjustment of 10% for all direct costs because of inflation over the past several years. What will be the new indicative price? 1 mark
3. A typical house 100 m2 to 300 m2 will take about 3 to 4 working months (or 12 to 16 working weeks) to complete. What indicative schedule, in working months or working weeks, will you give the owner? 3 marks
4. After giving the indicative price to your boss, you went down to do a more detailed estimate. First you need WBS. Create and sketch a WBS from the following:
Foundation
Site preparation and excavation
Reinforced concrete
Framing and Roofing
Rough framing
Siding, windows, insulation, plaster
Roof
Plumbing
Plumbing rough in
Plumbing fixtures
Electrical and Heating
Wiring rough in
Lighting and heating fixtures
Finishing
Painting
Finish hardware and chattels
Floor and carpet
Interior decorating
6 marks for the initial WBS (you will later draw one using MS Project)
5. Using the apportioning method, determine the cost of all the project tasks. 7 marks
Foundation
Site preparation and excavation 3%
Reinforced concrete 4%
Framing and Roofing
Rough framing 12%
Siding, windows, insulation, plaster 14%
Roof 9%
Plumbing
Plumbing rough in 6%
Plumbing fixtures 4%
Electrical and Heating
Wiring rough in 4%
Lighting and heating fixtures 8%
Finishing
Painting 8%
Finish hardware and chattels 12%
Floor and carpet 8%
Interior decorating 8%
Total 100%
The owner came back saying the client is very excited because it falls very much within his budget. He now wants a more detailed estimate and a proposal.
6. Estimate the cost of Foundation work given the following:
• Site Preparation and Excavation will need 3 men to work over 5 days. Each personnel costs $200 per day. A mini-bulldozer is also needed for 2 days at $1,000 a day, and about $1,500 for various materials. 3 marks
• Reinforced Concrete foundation will need 4 men to complete the work over 4 days. 18 m3 of reinforced concrete at $300 per m3 will be needed. 2 marks
a. From your detailed estimate, how much is the total cost of Foundation work? 1 mark
b. What is the variance (%) between your two estimates (i.e., apportioning vs. detailed method)? 1 mark
c. What does the variance say about your company’s estimating methods? 1 mark
7. Estimate the duration of Painting work given the following:
• From the house plan, it was estimated that there will be about 1,350 m2 of surface to be painted.
• You can put up to 3 personnel to work on painting and each of them can finish 56 m2 of surface a day
a. How soon will it take to complete all the Painting work? 3 marks
b. How many days longer will it for the Painting work to finish if you are able to get only 2 personnel for it? 3 marks
8. Your detailed (bottom-up) estimate shows the following:
• Labour, Materials and Equipment
Labour $65,600
Materials $6,500
Equipment $155,900
a. What is the Direct Cost from the project? 1 mark
• Direct Overhead Cost from the project is 25% of the Direct Cost
b. What is the Total Direct Costs from the project? (N.B. Total Direct Costs is equal to Total Direct Cost plus Direct Overhead Cost) 1 mark
• General and Administrative (G&A) Overhead is 20% of Total Direct Cost
• Management Contingency is 10% of Total Direct Cost
• Profit is 30% of Total Direct Cost
c. What is the Total Bid Price for this project? 4 marks
d. What is the variance (%) between the Indicative Price and the Total Bid Price for this project? (N.B. Remember in #1, your Indicative Price may vary within + or – 10% of estimate and so the from Total Bid Price will be different depending on what you used) 1 mark
HOUSE CONSTRUCTION PROJECT SCHEDULING - – Use MS Project
SCHEDULING Details
9. Construct a WBS, Gantt chart, Project network diagram and all relevant project planning information USING Microsoft Project 2010 or later version given the following: 30 marks
Task ID Task Duration
(days)
Predecessor
Remarks
Foundation
1.1.1 Site preparation and excavation 5
1.1.2 Reinforced concrete 4 1.1.1 5 days curing
Framing and Roofing
1.2.1 Rough framing 15 1.1.2
1.2.2 Siding, windows, insulation, plaster 20 1.2.1
1.2.3 Roof 14 1.2.1
Plumbing
1.3.1 Plumbing rough in 7 1.2.1
1.3.2 Plumbing fixtures 4 1.3.1, 1.2.3
Electrical and Heating
1.4.1 Wiring rough in 8 1.2.2, 1.2.3
1.4.2 Lighting and heating fixtures 4 1.4.1, 1.5.1
Finishing
1.5.1 Painting 8 1.3.2, 1.4.1, 1.2.3
1.5.2 Finish hardware and chattels 4 1.5.1
1.5.3 Floor and carpet 5 1.5.1
1.5.4 Interior decorating 3 1.4.2, 1.5.2, 1.5.3
MICROSOFT PROJECT USE
In Microsoft Project initial set-up.
I. Create the WBS, Display the WBS Codes.
II. Enter estimated task Duration, Enter the task Predecessor to create a project schedule.
III. Change the Timescale to display months (middle tier) and weeks (bottom tier).
IV. Use the Gantt Chart Wizard to display critical path.
V. Include the lag for concrete curing.
Resources
I. Create a resource pool to include 3x Builders, 2x Plumbers and 3x Electricians.
II. Assign the resources to specific tasks.
III. Designate 01 October 2016 as project start date.
IV. Include 2 days of Christmas and 2 days of New Year holidays in the Working Calendar if your plan stretches to the holiday period
V. Review the resource assignments:
• Which tasks have over allocated resource?
• Which resources are over allocated?
• On which dates were resources over allocated?
VI. Level the resource within the slack.
VII. Level task with over-allocated resource by increasing the task duration.
Baseline
I. Save project file as a baseline plan. NB. Save your project to a new file with “Baseline” as part of the file name.
10. Others areas. Refer to the marking guide
• Project cost performance 5 marks
• Other Knowledge Areas 10 marks
• Overall presentation & Sustainability – To include ethics, Engineer & society, Sustainability and referencing 15 marks
Total Marks – 100