Project Managers . - SCT by wuzhenguang

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									  PROJECT
MANAGEMENT

   2011




                 Chapter 1
     Introduction to Project Management
                                          1 1-1
    Learning Objectives

After Completion you will be able to:

•   Define what a project is and is not
•   Define project management
•   Understand the history of project management
•   Understand the skills necessary to lead projects
•   Understand the organizational structures where
    projects exist




                                                       1-2
History of Project Management

 • People have worked on and created many historical places
   and remarkable inventions for centuries without naming their
   activities as projects.

 • The modern project management began with the Manhattan
   Project, which the U.S. military led to develop the atomic
   bomb in World War II.

 • Until 1980`s, project management primarily focused on
   providing schedules and resource data to top management
   in the military, construction and computer industries.

                                                            1-3
History of Project Management


 • By the 1990s, virtually every industry was using some
   form of project management.
 • Today`s project management involves much more, and
   people in every industry and every country manage
   projects.
 • Businesses regularly use project management to
   accomplish unique outcomes with limited resources and
   under critical time constraints.




                                                           1-4
History of Project Management

 • New technologies and the interdisciplinary global work
   team have radically changed the work environment and
   thus, the project management have become a significant
   factor in many businesses.

 • The use of project management, specifically in the
   service sector to achieve organization`s goals, is even
   more common. Nowadays, advertising campaigns, voter
   registration drives, political campaigns, a family`s annual
   summer vacation, and even the seminars are organized
   as projects


                                                                 1-5
Some of the well known
      projects


 •   Grate pyramids of Egypt
 •   Pacific Railroad
 •   Hoover Dam
 •   Manhattan Project
 •   Space program
Some of the well known
       projects


       SOME PROJECTS
       what is a project

A Project is “a temporary endeavor undertaken to create a
unique product, service, or result``.

Project Attributes

   • A project has a unique purpose

   • A Project is temporary

   • A Project is developed using progressive elaboration

   • A Project requires resources

   • A Project should have a primary customer or sponsor

   • A project involves uncertainty
     PROJECT ATTRIBUTES

a) A project has a unique purpose
   Every project should have a well defined objectives since a
   project exist to achieve some specific outcomes. For
   example: To improve a business process, create a specific
   product or achieve a specific skill.

   The purpose of a project is defined by the project
   requirements.

b) A Project is temporary

   A project should have limited time spans: That is, a project
   has a start date and a deadline date (End date) for
   completion.
     PROJECT ATTRIBUTES

c) Projects are often defined broadly when they begin, and as
   time passes. The specific details of the project become
   clearer. A project team should develop initial plans and
   then update them with more detail based on new
   information.

d) A Project requires resources,

   Resources include people, machinery, budget and other
   assets. Resources however, are limited and must be used
   effectively to meet project and other corporate goals.
      PROJECT ATTRIBUTES

e) A Project should have a primary customer or sponsor.

   A sponsor usually provides the direction and funding for the
   project. (Project Sponsor role is different from the Project Stakeholders )

f) A Project involves uncertainty

   Because every project is unique, it is sometimes difficult to
  define its objectives clearly, estimate how long it will take to
  complete, or determine how much it will cost. External
  factors also cause project uncertainty.

 The uncertainty is one of the main reason Project
 Management is so challenging especially on projects
 involving new technologies.
     The Triple Constraints
     Of Project Management

Every project is constrained in different ways by its:

    Scope goals: What work will be done as part of the project?

    Time goals: How long should it take to complete?

    Cost goals: What should it cost to complete the project ?

 These limitations are sometimes referred to as the Triple
  Constraints.

• It is the Project Manager’s duty to balance these three often-
  competing goals in order to create a successful project.
 The Triple Constraint
of Project Management




                  13
         The Triple Constraints
.        OF Project Management

• Managing the triple constraints involves making trade-offs between
  scope, time, and cost goals for a project.

     For example, you might need to increase the Budget for a project to
      meet Scope and Time goals.

     You might have to reduce the Scope of a project to meet Time and
      Cost (Budget) goal.

 Experienced project managers know that you must decide which
  aspect of the triple constraint is most important.
     If Time is most important : Most often the initial project scope and/or Cost
      goals need to be changed to meet the project schedule..

     If Scope goals are most important, then the time and /or Cost goals need to be
      adjusted
       The Triple Constraints
       Of Project Management


• The Triple Constraint describes how the basic elements of
  a project i.e. Scope, Time and cost interrelate. However
  there are other elements such a : Quality, Customer
  satisfaction and Sponsor satisfaction that can also play
  significant roles.

• The Quadruple Constrains of Project Management
  which includes `Quality` as well as Scope, Time, and Cost
  is also gaining acceptance in the project management.
The Quadruple Constrains
 of Project Management




                           1-16
      The Triple Constraints
      Of Project Management

• There is a common belief that the Quality considerations , including Customer
  and/or Sponsor satisfaction , must be inherent in the setting the Project Scope,
  Time, and Cost goals of a project.

   • A project team may meet Scope, Time and Cost Goals but fail to meet quality
     standards or satisfy their sponsor, if they have not adequately addressed
     these constraints.

      e.g. A Project team may have completed the work on time and within the
      cost constraint, but the quality may have been unacceptable.

 A Project manager should be communicating with the project sponsor
  throughout the project to make sure that the project meets the sponsor `s
  expectation.
    The Triple Constraints
    Of Project Management

• How can you avoid the problems that occur when meeting
  Project Scope, Time, and Cost goals, but lose sight of quality
  or customer satisfaction?

   The answer is through a `Good Project Management`,
   which includes more than meeting the triple constraint,
What is Project Management

• Project management is “the application of
  knowledge, skills, tools and techniques to project
  activities to meet project requirements.”

• Project managers must not only strive to meet specific
  scopes, time, cost, and quality goals of projects they must
  also facilitate the entire process to meet the needs and
  expectations of the people involved in or affected i.e.
  `Stakeholders` by project activities.



                                                           1-19
Project Management
      Framework




                     1-20
      Key Project Management
        Framework Elements
• The key elements of Project management framework
  include:

     Project Stakeholders
     Project Management Knowledge areas
     Project Management Tools and Techniques
     Contribution of Successful Projects to the Enterprise




                                                              1-21
    Key Project Management
      Framework Elements
a) Project Stakeholders
     Stakeholders are the people involved in or affected by project
     activities and include the :
            Project sponsor,
            Project team,
            Project Support staff,
            Customers
            Users,
            Suppliers
            Opponents of the project
  The Stakeholders often have very interests. Stakeholders` needs and
   expectations are important in the beginning and throughout the life of a
   project.
  Successful Project managers should develop good relationships with
  stakeholders to understand their needs and expectations.
      Key Project Management
        Framework Elements
b) Project Management Knowledge Areas.

  Knowledge areas describe the key competencies that
  project managers must develop.
      Project Managers must have knowledge and skills in both the Four
       Core Knowledge areas as well as in the four Facilitating
       Knowledge areas plus in the Overarching knowledge area.


   The Four Core Knowledge Areas that lead to specific
      project objectives are:

         1.   Scope management
         2.   Time management
         3.   Cost management,
         4.   Quality Management.
   Key Project Management
     Framework Elements
1) Scope Management
  Project Scope management involves defining and managing all the
  work required to complete the project successfully.


2) Time Management
   Includes estimating how long it will take to complete the work,
  developing and acceptable project schedules , and ensuring timely
  completion of the project.

3) Cost Management
  Consists of preparing and managing the budget for the project

4) Quality Management
  Ensures that the project will satisfy the stated or implied needs for
  which it was undertaken.
      Key Project Management
        Framework Elements
b) Project Management Knowledge Areas.

    The Four Facilitating Knowledge Areas are the means
     through which the project objectives are achieved :

1.   Human Resources Management,
2.   Communication Management,
3.   Risk Management,
4.   Procurement Management.
           Plus
           Project Integration Management,
            (the ninth knowledge area which is an overarching area that
              affects and is affected by all of the other knowledge areas.
     Key Project Management
       Framework Elements
1. Project Human Resources Management
   Is concerned with making effective use of people involved with the
   project.

2. Project Communication Management
    Involves generating, collecting, disseminating , and storing project
   information.

3. Project Risk Management
   Includes identifying, analyzing and responding to the risk related to
   project

4. Project Procurement Management
   Involves acquiring or procuring goods and services for a project from
   outside the performing organization.
Project Management Tools and
         Techniques

• Project Management Tools and Techniques assist project
  managers and their teams in various aspects of project
  management.


• Specific tools and techniques include:
    Project charters, Scope statements, and WBS (For scope Mgmt).
    Gantt charts, Network diagrams, Critical Path Analyses, Critical Chain
     Scheduling (For Time Management area).
    Cost estimates and earned value management (For Cost
     Management area)

   There are other tools used specifically in different Knowledge areas,.
                                                                            1-27
   Sample Gantt Chart

  Work Breakdown Structure (WBS)




The WBS is shown on the left, and each task’s start and finish dates
are shown on the right. Early Gantt charts were drawn by hand.
                                    28
Sample Network Diagram




Each box is a project task from the WBS. Arrows show Dependencies
between tasks. The bolded tasks are on the critical path. If any task on the critical path
takes longer to complete than planned, the whole project will slip unless something is done.
                                            29
          Project Success

• Project Management has a number of advantages.
  However it is not a silver bullet that guarantees success on
  all projects.


• Project Management is a very broad and often very complex
  discipline. What works on one project may not work on
  another.

• It is essential for Project managers to:
   Continue to develop their knowledge and skills in managing projects.
  • Learn from the mistakes and success of others

                                                                    1-30
          Project Success


There are several ways to define Project success.

• A project is considered to be successful if it accomplishes
  one of the following criteria:


   a) Met its scope, time and cost goals

      Several critics raised for this simple definition of project
      success and the methods used for collecting data.
             Project Success

b) Satisfied the customer / sponsor
   The customer/sponsor might not be satisfied with the important aspect of
    the project despite the fact that project met its scope, time and cost goals
    In this event , the project would be deemed a failure.
   • Conversely. A project might not meet initial scope, time and cost
      goals, but the customer could still be very satisfied.
   • Many organizations implemented a Customer Satisfaction Rating
      System to measure project success instead of only tracking scope,
      time and cost performance.

c) A project may be considered successful by the Sponsor should the
  result of the project met its main objectives, such as saving money,
  resulting in a good Return On Investment (ROI) or simply making sponsor
  happy regardless of other factors involved (i.e. scope, time and cost
  factors)/
   Project Success Factors

1. Executive support
                          7. Firm basic requirements
2. User involvement
                          8. Formal methodology
3. Experienced project
                          9. Reliable estimates
   manager
                         10. Other criteria,
4. Clear business
                               e.g. Milestones,
   objectives
                                    proper planning,
5. Minimized scope                  competent staff,
                                    ownership.
6. Standard software
   infrastructure


                          33
          Project Success

• Project Managers play an important role in making projects
  and therefore organizations, successful.

• Project Managers work with the project sponsors, project
  team, and other stakeholders involved in a project to meet
  project goals.

• Good project managers do not assume that their definition of
  success is the same as the sponsors`. They take the time to
  understand their sponsors` expectations and then track
  project performance based on important success criteria.
      The Role of the Project
             Manager

• A Project Manager (PM) can have many different job
  descriptions, which can vary tremendously by industry,
  organization and by project. However, there are similar tasks
  such as planning, scheduling, coordinating, and working with
  people to achieve project goals.

• Job descriptions vary, but most include responsibilities such
  as planning, scheduling, coordinating, and working with
  people to achieve project goals.

• Remember that 97 percent of successful projects
  were led by experienced project managers.
                               35
      Job Functions of Project
            Management

• Define scope of project.            •   Evaluate project requirements.
                                      •   Identify and evaluate risks.
• Identify stakeholders, decision-
  makers, and escalation              •   Prepare contingency plan.
  procedures.                         •   Identify interdependencies.
• Develop detailed task list          •   Identify and track critical
                                          milestones.
  (work Breakdown Structures).
                                      •   Participate in project phase
• Estimate time requirements.             review.
• Develop initial project             •   Secure needed resources.
  management flow chart.              •   Manage the change control
• Identify required resources             process.
  and budget.                         •   Report project status.
 .
                                     36
   General Skills for Project
          Managers

• Project Managers need a wide variety of skills and be able to
  decide which particular skills are more important in different
  situations.

  General Skills (Skills that are needed regardless of organization
                         and project environments)

      Understanding change, and be comfortable leading and handling
       change, since projects naturally introduce changes .

      Understand the organization in which they work and how that
       organization develops products and provides services.


                                  37
     Managerial Knowledge and
    Skills For Project Managers

                           •   Strategic Planning
•   Financial Management
•   Accounting             •   Tactical Planning
•   Procurement            •   Operational Planning
•   Sales                  •   Organizational Structure and
•   Marketing                  behavior
•   Contracts              •   Personnel Administration
•   Manufacturing
                           •   Compensations
•   Distribution
•   Logistics              •   Benefits
•   Supply Chain           •   Career Path
                           •   Health and safety procedures.
                                                   38
 Managerial Knowledge and
Skills For Project Managers
   It will be critical for the project manager to have a lot of experience in
    one or several of general management area knowledge and skills on
    some projects.

   On other projects, the project manager can delegate detailed
    responsibility for some of his/her responsibility areas to team
    members, or project support staff .

 In case of delegation:

     The project manager must be intelligent and experienced enough to
      know which managerial areas are most important and who is
      qualified to do the work.

     Project manager must make and / or take responsibility for all key
      project decisions.        39
       Hard and Soft Skills
      for Project Managers

• Project managers also need “Hard” and “Soft” skills to
  achieve high performance on projects..

  Soft skills
   Otherwise called Human Relations Skills include:
      • Effective Communication
      • Influencing the organization (To get thing done)
      • Leadership
      • Motivation
      • Negotiation
      • Conflict Management
      • Problem solving
      • Coping Skills              40
       Hard and Soft Skills
      for Project Managers
Soft skills     (Continued)

Why do Project managers need Soft Skills?

 Project managers need soft skills is to understand , navigate, and meet
  stakeholders needs and expectation, project managers need to lead,
  communicate, negotiate, solve problems and influence the organization
  at large.

 Managers need to be able to listen actively to what others are saying.
  Help develop new approaches for solving problems, and persuade
  others to work toward achieving project goals.

 PM must lead project teams by providing vision, delegating work,
  creating an energetic and positive environment, and setting an example
  of effective behavior.           41
       Hard and Soft Skills
      for Project Managers
Why do Project managers need Soft Skills? (Continued)

 PM focus on Teamwork skills to employ people effectively

 PM need to motivate different types of people and develop esprit de
  corps within the project team and with other project stakeholders.

 PM also needs strong Coping skills to maintain their sanity and reduce
  stress levels to cope with criticism and constant change, since project
  work involve changes and trade-offs between competing goals

 PM must be flexible, creative, and sometimes patient in working toward
  project goals.



                                  42
       Hard and Soft Skills
      for Project Managers
Hard Skills
 PM needs hard skills such as Product knowledge and knowing how to
  use various Project Management tools and techniques.

 Due to the nature of the work; PMs make many decisions and deal with
  people in a wide variety of disciplines, so it helps tremendously to have a
  project6 manager who is confident in using the special tools and
  techniques that are the most effective in particular settings.

 PMs do not normally have to be experts on any specific technology, but
  they have to know enough to build a strong team and ask the right
  questions to keep things on track.



                                    43
     Hard and Soft Skills
    for Project Managers
 For example;

 PM for large IT projects do not have to be experts in the field
 of IT, but they must have working knowledge of various
 technologies and understand how the project would enhance
 the business.




                             44
  Project Managers Skills
        Summary
Skills Summary

• All Project Managers should continue to develop their
  knowledge and experience in Project Management,
  General management, Soft skills and Hard Skills
  (i.e. the industry knowledge they support).

• IT Project Manager in particular must be willing to develop
  their business and soft skills, besides their technical skills
  in order to be productive team members and successful
  Project Managers.

                              45
Project Managers Skills
      Summary
          Soft skills:                                  Technical Skills:
 Leadership (Set examples, provide vision
    (big picture), delegate, positive, energetic)   •   Project Management
   Team building (Show empathy,                        software
    motivate, promote esprit de corps)
                                                    •   Level of understanding of the
 Negotiation
                                                        technology being used in the
 Conflict management
                                                        project
 Organization for self and others
    (Plan, set goals, analyze).                     •   Basic knowledge of the
   Communication both oral and written to              business
    both technical and non-technical audiences
                                                    •   Cost estimating and
 Change management
 Active listening                                      budgeting
 Coping Skills (Flexible, creative, patient,
    persistent).




                                                                                   1-46
    Ten Most Important Skills
      For Project Managers
   Project management experts from various industries were asked to
    identify the ten most important skills for effective Project Managers in
    a recent study.
      1. People skills
      2. Leadership
      3. Listening
      4. Integrity, ethical behavior, consistent
      5. Strong at building trust
      6. Strong at building teams

      7. Verbal communication
      8. Conflict resolution, conflict management
      9. Critical thinking. Problem solving
     10. Understands, Balances priorities     47
       Most Important Skills and
         Competencies For PM
    PM experts also asked what skills and competences were most important in
     various project situations:.
            Note the emphasis on people and leadership skills .

    Large Projects          Leadership
                            People skills
                            Relevant prior experience
                            Planning
                            Verbal communication
                            Team building skills
    High Uncertainty        Risk Management
                            Expectation Management
    Projects                Leadership
                            People skills
                            Planning skills
    Very Novel              Leadership
                            People skills
    Projects                Having visions and goals
                            Self confidence
                            Expectation Management
                            Listening skills
                                             48
    Most Important Skills and
          Competencies
• All PMs especially those working on technical projects, need
  to demonstrate Leadership and Management skills.

• Leadership and Management are terms often used
  interchangeable, although there are differences.

• A Leader focus on long-term goals and big-picture objectives,
  while inspiring people to reach those goals.

• A Manager deals often deals with the day-to-day details of
  meeting specific goals.


                              49
    Most Important Skills and
          Competencies
• There are a few sayings to distinguish Leaders and Managers:

      - Leaders lead people, and Managers manage people.
      - Managers do thing right, and Leaders do the right things.
      - Leaders determine the vision, and Managers achieve the vision.

• Good PMs know that people make or break projects, so they must set a
  good example to lead their team to success.

• Project Managers often take on the role of both Leader and Manager.

• The best project Managers have leadership and management
  characteristics; they are visionary yet focused on the bottom line to
  achieve positive results.

                                     50
WHY PROJECT MANAGEMENT IS
       IMPORTANT?

 Organizations are forced into heavy investments on very
  large, complex and technically challenging projects in
  various public and private sectors as a result of increased
  demand for higher quality products and better services,
  plus the fierce competition among the multi-national
  organizations.

 Successful completion of very large, complex and multi-
  national projects depend entirely on the use of formal
  project management practices and “Professional”
  Project Managers.
    Advantages of Using Formal
   Project Management Practices


 Improvement in customer satisfaction
 Better cost performance, higher Return On Investment (ROI)
 Better schedule performance, allocation of time commitments,
  and utilization of resources, higher productivity
 Increased quality and thus reducing re-work
 Increase in delivering required features
 Will make everyone happier (stakeholders, team members,
  management …)




                                                          1-52
Project Management Office (PMO)

• A Project Management Office (PMO) is an organizational
  group responsible for coordinating the Project Management
  function throughout an organization.


• Possible goals of PMO include:
    Collect, organize, and integrate project data for the entire organization.
    Develop and maintain templates for project documents.
    Develop or coordinate training in various Project management topics.
    Develop and provide a formal career path for Project Managers.
    Provide Project Management consulting services.
    Provide a structure to house Project Managers while they are acting in
     those roles or are between projects.
                                     53
Program and project portfolio
       management

• Projects make up a portion of work in most business
  organizations or enterprise, and successfully managing those
  projects is crucial to enterprise success.

• Two important concepts that help Projects meet enterprise
  goals are the use of:

        • Programs Management
        • Project Portfolio Management



                             54
Program and project portfolio
       management

Program Management

• A Program is a group of related projects managed in a
  coordinated way to obtain benefits and control not available
  from managing them individually.

• A Program Manager provides :

  •   Leadership and direction for the Project Managers heading the projects
      within the Program.
  •   Coordinate the efforts of Project teams, functional groups. Suppliers,
      and operation staff supporting the projects to ensure that projects and
      processes are implemented to 55 maximize benefits.
Program and project portfolio
       management
Program Management               (Continued)


• Program Manager s Responsibilities :
      •   Delivery of project results
      •   Responsible for the success of products and processes produced by those
          projects

•   Program Managers often have review meetings with all Project Managers to
    share important information and coordinate important aspects of each project.
•   Many Program Managers worked as Project Managers earlier in their careers.
•   Effective Program Managers recognize that managing a program is much more
    complex than managing a single project.

•   Program Managers must realize that it is not enough to have technical and
    project management skills but possess strong business knowledge ,
                                     56
    leadership capabilities, and communication skills.
Program and project portfolio
       management

Project Portfolio Management

•   In many organizations, Project Managers also support an emerging business
    strategy of Project Portfolio Management also called Portfolio Management, in
    which organizations group and manage projects and programs as a portfolio of
    investments that contribute to entire enterprise`s success.

•   Portfolio Managers help their organizations make wise investment decisions by
    helping to select and analyze projects from a strategic perspective.

•   Project Portfolio Management allows Top Management of an organization to view
    and manage all projects at an enterprise level.




                                        57
    Program and project portfolio
           management
•    Portfolio Managers may or may not have previous experience as project or program
     managers. It is most important that they have strong financial and analytical skills
     ,and understand how projects and programs can contribute to meeting strategic
     goals.
    Project Management compared to Project Portfolio Management

•    One main distinction is a focus on meeting Tactical Goals and Strategic Goals.
     Tactical goals are generally more specific and short-term than Strategic goals, which
     emphasize long-term goals of organization.


•     Individual project often address tactical goals, where Portfolio
      Management address strategic goals.

• Many organizations use a more disciplined approach to Portfolio
  Management by developing guidelines and Software tools to assist in
  Project Portfolio Management.    58
ENTERPRISE PROJECT MANAGEMENT
            SOFTWARE

• Enterprise Project Management software integrates
  information from multiple projects to show the status of
  active, approved, and future projects across an entire
  organization.

• It also provides links to more detailed information on each
  project.

• Many managers like to see status in color – red, yellow, and
  green.


                               59
 The Project Management
        Profession
• Project Management Institute (PMI) is an international
  professional society for Project Managers.

• The members of PMI are from different fields such as
  Engineering, Financial Services, Health care etc.
  However a large percentage of PMI members work in
  IT field.
• Project Management research and certification
  programs continue to grow.



                             60
         Project Management
            Certification

• PMI provides certification as a Project Management
  Professional (PMP).

• A Project Management Professional is someone who has documented
  sufficient project experience and education, agreed to follow the PMI code
  of professional conduct (ethics), and demonstrated knowledge of the field
  of project management by passing a comprehensive examination.

• Many employers today require specific certifications to ensure their
  workers have current skills, and job seekers find that they often have an
  advantage when they earn and maintain marketable certifications.

• According to a recent survey, average salary for workers in project
  management were among the highest for all IT specialists. IT Workers
  with a PMP certification earn amongs the highest salaries for all IT
                                    61
  workers who held professional certifications.
Ethics in Project Management


• Ethic is a set of principles that guide our decision making based on
  personal values of what is right and wrong.
• Making ethical decisions is an important part of our personal and
  professional lives because it generates trust and respect with others
  people.

• Project managers often face ethical dilemmas.
• It is vital for project management practitioners with or without a PMP
  to conduct their work in an ethical manner.

• In order to earn PMP certification, applicants must agree to the PMP
  code of professional conduct.
• Several questions on the PMP exam are related to professional
  responsibility, including ethics. 62
  WHY IT Projects Are Different


• Traditionally high turnover rates of IT workers
• Level of uniqueness and complexity of each project
  due to the rapid changes in technology
• Software is hard to visualize by the developer let
  alone the customer
• Difficulty in getting accurate customer requirements
• Rate of change in requirements
• Difficulty in testing all the possible states of software
• Constant training needed to keep team members
  current with the technology

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