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Chapter#08 MANAGEMENT OF TECHNICAL PROPOSALS AND SPECIFICATIONS

COURSE INSTRUCTOR : PROF. DR. SHAHAB KHUSHNOOD. Chapter#08 MANAGEMENT OF TECHNICAL PROPOSALS AND SPECIFICATIONS. Lecture No. 08 Course: Engineering Management. MED DEPARTMENT, U.E.T TAXILA. INTRODUCTION.

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Chapter#08 MANAGEMENT OF TECHNICAL PROPOSALS AND SPECIFICATIONS

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  1. COURSE INSTRUCTOR : PROF. DR. SHAHAB KHUSHNOOD Chapter#08MANAGEMENT OF TECHNICAL PROPOSALS AND SPECIFICATIONS Lecture No. 08 Course: Engineering Management MED DEPARTMENT, U.E.T TAXILA

  2. INTRODUCTION • The proposal is used by the engineering organization to bring in new business which will ultimately make profit for company. • It is document comprising an offer from the contractor to the customer to carry out a certain task by a specified time at the defined level of quality for a certain amount of money with the aid of his manpower and facilities. • The specification are used to convey clearly and accurately the information regarding the work to be performed.

  3. Technical Proposals • In engineering business the proposals are used regularly to bid for contracts. • Therefore an organization must organize itself properly to prepare effective proposals in order to secure contracts in the competitive market. • For that reason, we presents the important aspects of technical proposals.

  4. Types Of Technical Proposals • Solicited Technical Proposal • This type of proposal is submitted by the contractor to customer for the work to be done after receiving request for proposal from the customer. • The request for proposal contains the information on work to be accomplished. • Usually the customer requires information from the contractor such as follows

  5. Solicited Technical Proposal (Cont.…) • Plans of the contractor to attack the work in question • Contractor’s qualifications • Price of the contractor’s effort • Work schedule

  6. Types Of Technical Proposals (cont.…) 2. Unsolicited Technical Proposal • The proposal which is initiated by the contractor without a formal request for proposal from the customer is known as unsolicited proposal. • This type of proposal is used in situation, for example, when the contractor’s organization feels that there is a definite need for the specific work or a study and such work or study needs financing from an outside body.

  7. Types Of Technical Proposals (cont.…) 3. Technical Brochure • It is also called “General Proposal”. • Technical brochure is used to explain contractor’s capabilities to potential customers so they can make use of services offered by the contractor.

  8. Upper Management Considerations In The Development Of A Proposal • Profit • Competition • Is the work involved in the proposal compatible with company policy • Price of the contract • If the firm’s bid is unsuccessful, will it effect the company image • What are the requirements for resources • What are the risks involved with the project

  9. Upper Management Considerations In The Development Of A Proposal (Cont.…) • What will be preparation cost of the proposal • Should the company bid low to win the contract • What will be the duration of this contract • Where is the importance of this project to company

  10. A Procedure For Preparing Effective Engineering Proposal Procedure for preparing effective proposal composed of eight steps

  11. A Procedure For Preparing Effective Engineering Proposal (Cont.…) Step 1 • This step involves the investigation of a proposal request or the study of the content of a proposed unsolicited proposal • The objective of this investigation is to thoroughly understand what is really required in the proposed project and to summarize it into a single sentence if possible

  12. A Procedure For Preparing Effective Engineering Proposal (Cont.…) Step 2 • This step is concerned with preparing the proposal outline • It is always wise to prepare the outline the proposal first • The contents of the outline include topics such as summary, problem under consideration, manpower and facilities

  13. A Procedure For Preparing Effective Engineering Proposal (Cont.…) Step 3 • In this step, the outline of the proposal is circulated to concerned bodies for their suggestions and comments • Once all the comments and suggestions are received, they are reviewed • Finally the outline is revised to incorporate the useful comments and suggestions

  14. A Procedure For Preparing Effective Engineering Proposal (Cont.…) Step 4 • In this step the proposal writing or preparing duties are assign to groups or persons • Special care must be given when assigning the duties of writing the summary and the problem requiring solution

  15. A Procedure For Preparing Effective Engineering Proposal (Cont.…) Step 5 • This step is concerned with reviewing the already written portions of the proposal • This way one will have effective control of the work in progress • If there is any departure from the correct path, it will be detected and corrected immediately before too much time is wasted on the incorrect path • When reviewing the written material the attention must be given to pints such as clarity, technical accuracy and sequence of the already written material

  16. A Procedure For Preparing Effective Engineering Proposal (Cont.…) Step 6 • This step is concerned with getting the written proposal document typed • Proper care must be given when getting such as document typed, otherwise it may reflect on the company’s image

  17. A Procedure For Preparing Effective Engineering Proposal (Cont.…) Step 7 • In this step the proposed document is reviewed very carefully to identify any error or weakness • In addition, review the cost figure used in the proposal to see their competitiveness with other bidders, the accuracy and so on Step 8 • Submit the necessary copies of the proposal to concerned bodies

  18. Pertinent Items For Inclusion In Proposals • Proposed, scope and the problem definition • Problem history, need for solution and solution benefits • Techniques or procedures for solving the problem • Time required to accomplish the project • Breakdown of project tasks • Price of the project • Earlier association reference

  19. Pertinent Items For Inclusion In Proposals • Project manpower • Qualifications of the involved manpower • References • Proposal specifications

  20. Typical Format Of A Proposal • Actual format of the proposal documen-tationmay differ from one project to another • However the basic format for all the proposals is the same.

  21. Role Of Customer Relations In Proposal Preparation Following points are helpful in promoting good relations with the customer • Always remember when writing an engineering proposal that it is being written for people who have a technical background • Write the proposal well. It must be logical, concise, clear and specific • Have enthusiasm when preparing a proposal • Have respect for your customer • Have associated with the proposal only those people who are compatible with their counterparts in the customer’s organization

  22. Engineering Specifications • Specifications are used when developing new engineering products • The quality of the specification will directly effect the product it specifies.

  23. 1.Engineering specifications classifications Various aspects of engineering specifications are described as: • Specifications type 1 These specifications are concerned with performance and are used to describe the final product requirements. b) Specifications type 2 These specifications are concerned with design and contain information on how the final product requirements are to be fulfilled.

  24. Engineering specifications classifications (cont.…) C) Specifications type 3 • These are known as construction specifications. • They describe requirements for items such as materials, legality and techniques needed in actual manufacturing of an engineering product.

  25. 2. Specification Writing Hints

  26. Engineering Specification Layout The general format of specifications is as follows • Title Sheet • This sheet is used to present information such as the title, name and address of the organization in question, date, etc. • Table Of Contents • Introduction To Specification • This section describe the background information associated with the specification under consideration.

  27. Engineering Specification Layout (Cont.…) • Scope • This provides precise information on the product under consideration and its role. • Other documents associated with association • Technical specification • This is the backbone of overall specification document • It covers the necessary information useful for obtaining effective control of items such as construction, performance and process. • Examples are materials, spares, performance, reliability, maintenance and so on.

  28. Engineering Specification Layout (Cont.…) • Particulars Of Other Necessary Information • This section covers information on documentary material. • Examples of such documentary material are product maintenance drawings, test reports and operation handbooks.

  29. Advantages And Disadvantages Of Engineering Specification • Advantages • Help standardization • Help to produce better quality product • Help to better understand the exact needs of customer • Disadvantages • Time consuming • May restrict innovation

  30. Advantages Of Standard Specification For Materials • Helpful in comparing bids • Due to mass production of standardized items, the cost decreases • They can be included by reference • Reasonably available materials in the market can be chosen by the designer • A customer can make use of a specification which is already tried • Helpful in comparing results of testing carried out by different organizations • Helpful in reducing the manufacturer’s varieties

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