Project Management by xiangpeng

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									Project Management
Project Management – An Overview
                       Planning Overview

•   Clarify what is to be done (scope)
•   Break work down into manageable packages of work
•   Assign responsibility for doing the work
•   Develop activity for doing the work
•   Assign resources
•   Measure achievement
•   Analyse achievement
•   Report and Review
Example Planning Structure
                                  Precedence Network
“Activity on Node” where each activity is represented in a box, with interconnecting lines known as constrains (logical
                                           dependencies) to show the logic.
A Critical Path Network
Constraints/dependencies
                                        Resource Planning
“…determining what physical resources (people, equipment, materials) and quantities of each should be used to perform project
                                                       activites.”
               Staff Management Planning


100
 90
 80
 70                                        Availability
 60
 50
                                                 Engineers
 40
 30
 20
 10
  0
      Week 1     Week 2   Week 3   Week4
Resource Options
                     But remember



• Doubling resources will not cut time in half
• Take holidays into account
• Allow time for reviews and rework
• Allow time for support activities
• Don’t plan


           Don’t reduce durations later
          in the plan just to get the right
                    answer now
Result - An Achievable Gant Chart
                  Progressing cycle

• Plan
  –Agree what you are going to do
• Actual
  –Record what you have done
• Forecast
  –Predict where you are going
Monitoring and Control
                        Top - 10 Planning Tips

•   Agree on the objectives
•   Establish command
•   Establish responsibilities
•   Fix key meetings in advance
•   Circulate information rigorously
•   Chase progress relentlessly
•   Check budgets rigorously
•   Resist alterations ruthlessly (without being inflexible)
•   Don’t hide problems
•   Tackle problems today…. or tomorrow they will be bigger
An Overview of Project Management
           Project Management



    ―The whole discipline and art of project
management is going to be the essence of
management training, operational excellence
and value added‖

                     Tom Peters
                     Author and Consultant
      In this topic we will discuss……
• Origin and growth of Project Management
• Project characteristics
• Definition of a project
• Objectives of a project
• Characteristics of a project
• Programs VS Projects
• Project Life Cycle
• Reasons for popularity and importance of PM
• Integrated Project management Systems
• Project Management Profession and PMI
  Origin of Project Management (PM)
• Project Management is as old as
  civilization
• Pyramids is an example of Project
  Management
• Credit for development of modern Project
  Management, tools techniques belongs to
  Army.
• Used PM for achieving tasks not
  achievable by traditional organizations in
  traditional ways.
      Project Management Evolution
• Project Management
• Military Project Management
• Space Exploration
• Heavy Construction
• Network
       Origin of Project Management
• Examples
  – NASA’s Apollo Space Program
   –Space shuttle
   –Smart bombs
   –SAGE missiles
   –Manhattan project – Atom bomb ( beginning of
    modern Project Management )
   –ARPANET – Grand father of ---?
• Seeing the success of Project Management
  practices, non military sectors and business
  organizations followed suit, by adopting Project
  Management to their organizations.
                   Growth
• Military is credited with developing most
  techniques
• Private constructions firms followed suit.
• Followed by automotive companies to develop
  new models
• GE used PM to develop jet engines.
                             Growth
• Currently PM is becoming more popular with
  services sector
  – Ad campaigns
      • Different media, different locations.
• PM in services sector
  –   Now weddings
  –   Even tea parties
  –   Fund drives
  –   Election campaigns
  –   Recitals
  –   to name a few, are using PM
                What is a Project?
• Project Defined
  –A complex, nonroutine, one-time effort limited by time,
   budget, resources, and performance specifications
   designed to meet customer needs.
• Major Characteristics of a Project
  –Has an established objective.
  –Has a defined life span with a beginning and an end.
  –Requires across-the-organizational participation.
  –Involves doing something never been done before.
  –Has specific time, cost, and performance
   requirements.
        The Definition of a ―Project‖
• PMI



            ―A temporary endeavor undertaken to
 create a product or service‖
        Definitions: Projects
• NASA/Air Force
 –A project is within a program as an undertaking
  with a scheduled beginning and end, and which
  normally involves some primary purpose.
                Project Management
                A Working Definition


• Project:
  –A problem with a known solution scheduled for
   completion—unique and non-routine activities
• Project Management:
  –The science and art of solving the problem within
   predetermined time and resource parameters
  –Shouldering just enough risk to escape with your
   career intact!!!
         Objectives of a Project


• Project Objectives:
  –Performance
  –Time
  –Cost
• Expectations of clients inherent part of the
  project specifications
      PROJECT
    MANAGEMENT




      RESOURCES




PERFORMANCE/TECHNOLOGY
Project Management




    Resources
                Project Characteristics
• Objective:
  – Construction of a sky scraper or release of a SW by some
    specified date
  – No repetition like daily organizational jobs
• Definite Beginning and End:
  – Routine jobs are continuous
• Multi dimensional skills are needed compared to single
  skill (like accounting) in routine jobs
• Non routine and some thing unique:
  – landing rover on Mars etc. even each construction project is
   different
• Time, cost and specific outcomes – higher degree of
  accountability
        Characteristics of a Project ….
• Have a life cycle with finite due date
• Interdependencies – with other projects, functional
  departments for scarce resources,
• Uniqueness Even no two construction projects are alike-
  can not be completely reduced to routine
• Resource requirements and tradeoffs - Limited
  resources
• Stakeholder (Client, parent organization, project team,
  public) Conflict – project vs project, Project vs
  department
  Project Characteristics….
• Have a specific objective (which may be
  unique or one-of-a-kind) to be completed
  within certain specifications
• Have defined start and end dates
• Have funding limits (if applicable)
• Consume human and nonhuman
  resources (i.e., money, people, equipment)

• Be multifunctional (cut across several
  functional lines)
              Examples of Projects
• Projects could be small or big
• Examples
  –Operation desert Storm other military projects
  –Advertising campaigns
  –Restructuring of organizations
  –New dance floor in a club
  –New class room
  –Developing a website, producing a movie etc.
             Terminology of a ―Project‖

• Military is the source of most terms in PM. Must make a
  distinction between terms:
   –Program – an exceptionally large, long-range
    objective that is broken down into a set of projects
   –Task – Projects are divided into set of activities
   –Work Packages - division of tasks
   –Work Units - division of work packages
• A specific, finite task to be accomplished
• Exceptions to these terminology is also common
           Programs versus Projects
• Program Defined
 –A series of coordinated, related, multiple projects that
  continue over an extended time and are intended to
  achieve a goal.
 –A higher level group of projects targeted at a common
  goal.
 –Example:
    • Project: completion of a required course in project
      management.
    • Program: completion of all courses required for a business
      major.
                     Non Projects
• Use of manufacturing line for producing
  standard goods/ services
• Examples
  –Operation of regular flight services by air lines
  –Conducting regular classes
  –Preparation of food in a restaurant
  –Checking your email
• They all are routine
      Comparison of Routine Work with Projects
Routine, Repetitive Work             Projects
Taking class notes                   Writing a term paper
Daily entering sales receipts into   Setting up a sales kiosk for a
the accounting ledger                professional accounting meeting
Responding to a supply-chain         Developing a supply-chain
request                              information system
Practicing scales on the piano       Writing a new piano piece
Routine manufacture of an Apple      Designing an iPod that is
iPod                                 approximately 2 X 4 inches,
                                     interfaces with PC, and stores
                                     10,000 songs
Attaching tags on a manufactured     Wire-tag projects for GE and
product                              Wal-Mart


                                                                      TABLE 1.1
Project Life Cycle




                     FIGURE 1.1
               Project Life Cycle
• Project Life Cycle (PLC) recognizes that projects
  have a limited life span
• There are a number of different life cycle models
  in literature
• The PLC shown above is a generic PLC
• Project effort starts slowly, peaks up and then as
  the end nears declines
                Project Life Cycle
• Defining stage
  –Project Objectives established
  –Specifications defined
  –Teams are formed
  –Major responsibilities assigned
• Planning stage
  –Level of effort increases
  –Plans are developed for understanding what the
   project will entail
  –Schedule, cost, quality, benefits decided
                  Project Life Cycle
• Execution stage
  –Major part of project work takes place, both physical
   and mental
  –Controlling using time, cost, specifications
  –Revisions if any
• Delivery stage
  – Delivering the product to the customer
    • Customer training and transfer of documents
  – Redeploying the resources
    • Release of equipment and materials
    • New assignment for staff
                             Project Management Life Cycle

                   Definition           Planning       Implementation           Delivery
Level of effort




                  1. Goals              1. WBS         1. Status reports   1. Train user
                  2. Specifications     2. Budgets     2. Change Orders    2. Transfer documents
                  3. Scope              3. Resources   3. Quality Audits   3. Release resources
                  4. Responsibilities   4. Risks       4. Contingencies    4. Reassign staff
                  5. Teams              5. Schedule                        5. Lessons learned
            DEFINITION OF A PROJECT LIFE CYCLE

            CONCEPTUAL   FEASIBILITY AND      DETAILED      IMPLEMENTATION    CONVERSION
               PHASE       PRELIMINARY     PLANNING PHASE       PHASE        OR TERMINATION
                         PLANNING PHASE                                          PHASE
RESOURCES




                                                     Resources
                                                      Utilized




                                                                                         *    PMO
   PMO




                                       TIME
        Evolution of Policies,
     Procedures and Guidelines


                                                     Checklists
  Life    Policy and    Guidelines     General          with
 Cycle    Procedure        per         Project        Periodic
Phases     Manuals      Life Cycle    Guidelines      Review
                          Phase                        Points


1970s    Early 1980s   Mid 1980s     Late 1980s       1990s

    CONVENTIONAL PROJECT MANAGEMENT                    Project
                                                    Management
                                                   with Concurrent
                                                     Engineering
            LEGEND
          The Project Life Cycle


• Stages of a Conventional Project:
  –Slow beginning
  –Buildup of size
  –Peak
  –Begin a decline
  –Termination
• Example – Construction of a house
 The Project Life Cycle – Other forms


• Projects also exist which do not follow the
  conventional project life cycle
• Comprised of subunits that have little use as a
  stand alone unit, yet become useful when put
  together
The Project Life Cycle – Other forms
      The Project Life Cycle – Other forms
• Time distribution of project effort is characterized by slow-rapid-slow
WHY USE PROJECT MANAGEMENT ?
• Project Management and
  productivity are related!
Why is a Project Management
System Necessary?
  The Importance of Project Management
• Factors leading to the increased
  use of project management:
  –Compression of the product life cycle
  –Global competition
  –Knowledge explosion
  –Corporate downsizing
  –Increased customer focus
  –Rapid development of Third World
   and closed economies
  –Small projects that represent big
   problems
  Reasons for Project Management Emergence



• Forces driving Project Management:
  – 1. exponential expansion of human knowledge
  – 2. growing demand for a broad range of complex,
        sophisticated, customized goods and services
  – 3. evolution of worldwide competitive markets for the production
    and consumption of goods and services
  –4. In today’s complex world no individual can solve all
   business problems
  –5. Team-based problem solving v. individual – has
   become important.
  –6. PM involves team based problem solving
      Forces Driving Project Management

• Customer, Competition and Change
• Technological Developments
• Internet and Information Explosion
• Global markets with different cultures and
  Characteristics.
• Time to market is critical
• Product/Service life cycles are shorter
      Forces Driving Project Management

• Tasks are becoming larger.
• Increase in the number of non routine activities
  in an organization.
• The tasks are multidisciplinary and complex
• Under these conditions one individual’s
  (Manager) May not be sufficient to find solutions
  to problems. Hence PM.
• SW industry growth.
          Organizational Imperatives

• Traditional hierarchical management declining
• Consensual management increasing
• Increasing reliance on systems approach
  (systems engineering)
• Projects have become integral to organizational
  strategy and accomplishment of goals
   Why (not) Project Management?


• Companies have also experienced some
  negatives:
 –Greater organizational complexity
 –Increased likelihood of organizational policy violations
 –Higher costs
 –More management difficulties
 –Low personnel utilization
      Benefits Of Project Mgt.

       Past View                  Present View
                          • Project management
                            allows us to accomplish
• Project management        more work in less time
  will require more         and with less people.
  people and add to the
  overhead costs.
                          • Profitability will
                            increase.

• Profitability may
  decrease.
       Benefits Of Project Mgt.

        Past View                    Present View
                              • Project management will
• Project management will       provide better control of
  increase the amount of        scope changes.
  scope changes.

                              • Project management makes
• Project management            the organization more
  creates organizational        efficient and effective.
  instability and increases
  conflicts.
      Benefits Of Project Mgt.

       Past View                 Present View
• Project management      • Project management
  is really “eye wash”      will allow us to work
  for the customer’s        closer with our
                            customers.
  benefit.

                          • Project management
• Project management        provides a means for
  will create problems.     problem solving.
      Benefits Of Project Mgt.

       Past View                  Present View
• Only large projects     • All projects will benefit
  need project              from project
  management.               management.


• Project management      • Project management
  will increase quality     increases quality.
  problems.
       Benefits Of Project Mgt.

        Past View                         Present View
• Project management will        • Project management will
  create power and authority       reduce the majority of the
  problems.                        power struggles.

• Project management             • Project management allows
  focuses on                       people to make good
  suboptimization by               company decisions.
  looking at only the project.
      Benefits Of Project Mgt.

       Past View                  Present View
• Project management       • Project management
  delivers products to a     delivers solutions to a
  customer.                  customer.
• The cost of project      • Project management
  management may             will increase our
  make us                    business.
  noncompetitive.
               Limitations of PM
• Conflicts are side effect
• creation of projects seem to be the admission on
  the part of organization that they can not
  accomplish the desired outcomes
• PM normally lacks authority and depends on
  good will of functional mangers
 Integrated Project Management Systems
• Problems resulting from the use of piecemeal
  project management systems:
  –Do not tie together the overall strategies of the firm.
  –Fail to prioritize selection of projects by their
   importance of their contribution to the firm.
  –Are not integrated throughout the project life cycle.
  –Do not match project planning and controls with
   organizational culture to make appropriate
   adjustments in support of project endeavors.
  Integrated
Management of
   Projects




         FIGURE 1.2
The Technical and
  Sociocultural
   Dimensions
  of the Project
  Management
     Process




           FIGURE 1.3
MATURITY IN PROJECT MANAGEMENT
 IS LIKE A THREE - LEGGED STOOL.

THE LEGS REPRESENT THE:

• Project Manager
• Line Manager(s)
• Executive Management (i.e... Project Sponsor)


    Maturity cannot exist without stability
 The Three-Legged Stool




Manager                    Senior
                       Management
Project                (I.e. Sponsor)
            Line
          Management
TOP OF THE THREE - LEGGED STOOL




 ORGANIZATIONAL   ORGANIZATIONAL
   STRUCTURE         BEHAVIOR



               TOOLS &
             TECHNIQUES
    From Hybrid to Project-Driven


     1960 -1990             1990 -2001
      Hybrid                 Hybrid


 Traditional Project   Modern Project
   Management           Management
•Entrance via             Entrance via
 project-driven            marketing, sales,
 divisions such as         engineering and
 MIS and R&D               R&D
                    Industry Classification
            (By Project Management Utilization)


    Project -                      Hybrid                        Non-
     Driven                                                 Project-Driven
• PM has P&L                  • Production driven
                                but with many               • Very few projects
  responsibility
                                projects                    • Profitability from
• PM is a
                              • Emphasis on new               production
  recognized
  profession                    product develop.            • Large brick walls
                    Present                          Past
• Multiple career             • Short product life          • Long life cycle
  paths                         cycles                        products
• Income comes                • Marketing-orient.
  from projects               • Need for rapid
                                develop. process

   Project                      Program                       Product
 Management                    Management                    Management
        KINDS OF PROJECTS
Once a group of tasks is selected and considered to
 be a project the next step is to define the kinds of
 projects encountered. There are four categories of
 projects:

                INDIVIDUAL PROJECTS
  Short-duration projects normally assigned to a
  single individual who may be acting as a project
       manager and/or a functional manager.

                  STAFF PROJECTS
 These projects that can be accomplished by one
  organizational unit, say a department. Staff (or a
     task force) is developed from each section
   involved. This works best when one functional
                    unit is involved.
           SPECIAL PROJECTS
Very often special projects occur which require that
    certain primary functions and/or authority be
  assigned temporarily to other individuals or unit.
    These works best for short-duration projects.
  Long-term projects can lead to severe conflicts.


MATRIX OR AGGREGATE PROJECTS
  These projects require specific (or specialized)
    input from a large number of functional (or
      business) units and usually control vast
                     resources.
              Integrated Processes for
                  The 21st Century
                Project Management


Concurrent                           Total Quality
Engineering                          Management




  Change                                Risk
Management                           Management
                          PMI
• PMI – Mission
  –Is to foster growth of PM as well as building
   professionalism.
• Project Management Journal
• PM network magazine
• Codifying the areas of learning –PMBOK
 Growth and Project Management Institute (PMI)

• PMI
   –The Project Management Institute (PMI) was
     established in 1969
   –By 1990 it had 7,500 members
   –1995, over 17,000 members
   –1998--exploded to over 44,000 members
   –2006 membership is 139000
   –Presence in 125 countries
• This exponential growth is indicative of the rapid growth
  in the use of projects
• Importance of PMI as a force in the development of
  project management as a profession
Project Management Institute:
 Membership Growth Curve
      Key Terms
Program
ISO 9000
Project
Project life cycle
Sociotechnical perspective
                       Risk
• Will be discussed later
  Role Of The
Project Manager
  The Challenge of Project Management
• The Project Manager
 –Manages temporary, non-repetitive activities and
  frequently acts independently of the formal
  organization.
    • Marshals resources for the project.
    • Is linked directly to the customer interface.
    • Provides direction, coordination, and integration to the project
      team.
    • Is responsible for performance and success of the project.
 –Must induce the right people at the right time to
  address the right issues and make the right decisions.
       Role Of The Project Manager
• Negotiating For Resources
• The Project Kickoff Meeting
• Establishing The Project’s Policies and
  Procedures
• Laying Out The Project Workflow And
  Plan
• Establishing Performance Targets
• Obtaining Funding
     Role Of The Project Manager
• Executing The Plan
• Acting As The Conductor
• Putting Out Fires
• Counseling And Facilitation
• Encouraging The Team To Focus On
  Deadlines
• Monitoring Progress By ―Pounding The
  Pavement‖
     Role Of The Project Manager
• Evaluating Performance
• Develop Contingency Plans
• Briefing The Project Sponsor
• Briefing The Team
• Briefing The Customer
• Closing Out The Project
                Benefits

• Identification of functional responsibilities
  to ensure that all activities are accounted
  for, regardless of personnel turnover.
• Minimizing the need for continuous
  improvement
• Identification of time limits for scheduling
• Identification of a methodology for trade-
  off analysis
• Measurement of accomplishment against
  plans
      Classical Management
• Planning
• Organizing
• Staffing
• Controlling
• Directing



    Which of the above is Usually NOT
    performed by the project manager?
               Resources
• Money
• Manpower
• Equipment
• Facilities
• Materials
• Information/technology
     Interface Management
• Managing human interrelationships within the
  project team
• Managing human interrelationships between the
  project team and the functional organization
• Managing human interrelationships between the
  project team and senior management
• Managing human interrelationships between the
  project team and the customer’s organization,
  whether an internal or external organization
       Integration Management

                         Integration
                         Management
       Resources
          Capital
          Materials
                                       Products
          Equipment      Integrated
Inputs    Facilities     Processes    Services Outputs
                                       Profits
          Information
          Personnel
       Functional Obstacles
• Unlimited work requests (especially during
  competitive bidding)
• Predetermined deadlines
• All requests having a high priority
• Limited number of resources
• Limited availability of resources
• Unscheduled changes in the project plan
• Unpredicted lack of progress
   Functional Obstacles (continued)
• Unpredicted lack of progress
• Unplanned absence of resources
• Unplanned breakdown of resources
• Unplanned loss of resources
• Unplanned turnover of personnel
Most projects also have a
project sponsor which may
 or may not reside at the
    executive levels of
      management.
  The Project Sponsor Interface
                                           Project Sponsor:
  Priority Projects                       Senior Management

                                         Project Sponsor:
          Maintenance Projects       Lower/Middle Management

                                 Relationship:
                                        Objective Setting
                          Project       Up-Front Planning
                          Sponsor       Project Organization
Project                                 Key Staffing
Manager                                 Master Plan
                                        Policies
                                        Monitoring Execution
Project                  Project        Priority-Setting
 Team                                   Conflict Resolution
                         Manager        Executive-Client Contact
        High-level Reporting
• The project manager is charged with getting
  results from the coordinated efforts of many
  functions. He should, therefore, report to the man
  who directs all those functions.
• The project manager must have adequate
  organizational status to do his job effectively.
• To get adequate and timely assistance in solving
  problems that inevitably appear in any important
  project, the project manager needs direct and
  specific access to an upper echelon of
  management
    High-level Reporting (continued)
• The customer, particularly in a competitive
  environment, will be favorably impressed if
  his project manager reports to a high
  organizational echelon.
THE TIP-OF-THE-ICEBERG SYNDROME
                              DELEGATION
                            OF AUTHORITY TO
                           PROJECT MANAGER

                             EXECUTIVE
                             MEDDLING



                  LACK OF UNDERSTANDING OF HOW PROJECT
                        MANAGEMENT SHOULD WORK



                 LACK OF TRAINING IN COMMUNICATIONS /
                        INTERPERSONAL SKILLS




    MANY OF THE PROBLEMS ASSOCIATED WITH PROJECT MANAGEMENT WILL
   SURFACE MUCH LATER IN THE PROJECT AND RESULT IN MUCH HIGHER COSTS
               Humor
• Project management is the art of
  creating the illusion that any
  outcome is the result of a series of
  predetermined, deliberate acts
  when, in fact, it was dumb luck.

								
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