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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