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Introduction
Professor Dr. Azhar Mansur Khan; Ph.D(USA), PE, PMP
Succeed 34%
Fail 15%
Modern Management
In recent years, major developments in management reflect the acceptance to various degrees of the following elements: (1) Consensual Management (2) The management process approach, (3) The management science and decision support approach, (4) The behavioral science approach for human resource development, and (5) Sustainable competitive advantage. (6) Flexible (Velcro) approaches (7) Systems Approach
What is a Project ?
A project is a sequence of temporary, unique, complex and connected activities having one goal or purpose and that must be completed by a specific time, within budget, and according to scope. Creation of Business Value Important
What is a Project?
A project is a temporary endeavor undertaken to create a unique product, service or an output.
- PMBOK Guide Project Management Institute
Operations are ongoing and repetitive Projects are temporary and unique
1. 2.
3. 4. 5.
A project is a one-time effort with specific objectives and deliverables. A project requires a commitment of personnel, capital, and other resources over a period of time. Has a defined start and end date. Executed by an organized team. Has an amount of complexity and is not "business as usual (operations)
Operations are ongoing and repetitive Projects are temporary and unique
A strategic project is focused on expanding or changing your organization's objectives, capabilities, or direction in order to achieve a higher level of success. (e.g., build a new facility; reengineer a business process or workflow.) A tactical project is designed to produce a specific deliverable (e.g., develop a new sales brochure; choose a replacement for an aging computer).
Contd.
A project is a group of activities that are to be undertaken with limited resources to yield specific objectives in a specific time in a specific locality. A project has a specific starting point, and a specific ending point. An investment on which resources are used to create assets that will produce benefits over an expanded period of time. PMI has defines the project as single effort undertaken in order to create unique product, service or an output. ISO 10006 Standard defines the project as, unique processes, consisting of a set of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements, including the constraints of time, cost and resources.
Scope Constraint
Processes
Operations
VALUE ADDITION
Features of a project
A start and a finish Is a unique activity with a visible output May involve uncertainty and risk Involves a team coming together specifically for the project A budget Non repetitive tasks, sequential order Use of resources (including human resources) A single point of ultimate responsibility Clearly defined team roles Clear aims, objectives, goals
Complex Activities
Not simple, repetitive acts, such as mowing the lawn, running the weekly payroll, washing the car, or loading the delivery truck
Connected Activities
There is some order or sequence Output from one activity is input to another.
Temporary Activities
Start and Finish Dates
Specified Time
Projects have a specified completion date
Within Budget
Projects also have resource limits (people, money, machines)
What is a Portfolio?
The constituent projects within a program, which will deliver the products needed to move the business forward from the current business operations to those described in the blueprint. The projects or programs in a Portfolio may not necessary be interdependent or directly related, but are strategically selected and managed toward specific goals.
Project Parameters
Cost Time Scope
Cost
Time
Categories of Projects
Derivative Projects: Projects with objectives or deliverables
that are only incrementally different in both product and process from existing offerings
R&D Projects:
These are blue-sky visionary endeavors oriented toward newer developed technologies.
Project Management
Project Management is an organized venture for managing projects. It involves scientific application of modern tools and techniques in planning, financing, implementing, monitoring, controlling and coordinating unique activities or tasks to produce desirable outputs in consonance with pre-determined objectives, within the constraints of time, cost, quality.
The application of knowledge, skills, tools and techniques to project activities to meet the project requirements
Project Management
Project management is the art of directing and coordinating human and material resources throughout the life of a project by using modern management techniques to achieve predetermined objectives of scope, cost, time, quality, risk, resources and participation satisfaction.
Why do organizations use Project Management? To sum it up.. 1. Improve results Value 2. Decrease costs 3. Improve customer service 4. Time
7. Project Cost Management 8. Project Quality Management 9. Project Human Resource Management 10. Project Communications Management 11. Project Risk Management
7.1 Estimate Costs 7.2 Determine Budget 8.1 Plan Quality 9.1 Develop Human Resource Plan 10.1 Identify Stakeholders 10.2 Plan Communications 8.2 Perform Quality Assurance 9.2 Acquire Project Team 9.3 Develop Project Team 9.4 Manage Project Team 10.3 Distribute Information 10.4 Manage Stakeholder Expectations
(42 Processes)
11.1 Plan Risk 11.6 Monitor and Control Management Risk 11.2 Identify Risks 11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Response 12.1 Plan Procurements 12.2 Conduct Procurements 12.3 Administer Procurements
Page 17
A project manager is responsible for delivering specific project objectives within the constraints of the project, while the PMO is an organizational structure with specific mandates that can include an enterprise-wide perspective.
PMO
The acronym PMO can be used for three different types of offices within an organization: Project Management Office Program Management Office Portfolio Management Office The Project Management Office (PMO) is a mechanism used to address common project management issues in an organization in order to support and facilitate project success.
Business Management Consultants
A PMO is a department within an organization Responsibility of improving project management Equips PMs with the best methodologies and tools Ensures adherence to standards and processes. It may manage many projects, assigning project managers and overseeing their work directly. The key point is that its not formed for the purpose of supporting a single project, as that is the job of a Project Office. All PMOs share the common goal of improving project performance. A successful PMO will enable more projects to deliver high quality results on time and within budget.
According to PMBOK The PMI formally defines a Project Management Office as "an organizational body or entity assigned various responsibilities related to the centralized and coordinated management of those projects under its domain. The responsibilities of a PMO can range from providing project management support functions to actually being responsible for the direct management of a project.
Business Management Consultants
Numeric Models:
Payback period IRR Discounted cash flow, NPV Benefit Cost Ratio
Controlling Processes
Executing Processes
Closing Processes
Planning provides documented executing plans and the updates as the project progresses
Project Implementation
Procure Materials, Vehs, Equipt etc. Establish Field Offices (Build and test Facilities) Teams go Out to Work (Data Collection, survey etc) Develop support requirements Produce system Verify performance Modify as required
Termination
When to Terminate? Very Important
Exit Strategy (Donors are Extremely Interested) Transfer materials Transfer responsibility Release resources Reassign project team members Sustainability Aspects Warranty/ Guarantee
Project Manager
Project Manager is responsible for the project from cradle to grave This person will take responsibility for planning, implementing, and completing the project The PM can be chosen and installed as soon as the project is selected for funding or at any earlier point PM is chosen late in the project life cycle, usually to replace another PM
Leadership Team Steering Group Project Director Sponsors Internal Liaison External Liaison Project Line Departments Manager Trading Partners Other Projects Suppliers Contractors Project Team Participants Deliverables Tasks
FM Vs PM
Functional manager is in charge of one of a firms functional departments such as marketing, engineering, or finance. Such department heads are usually specialists in the areas they manage. They are analytically oriented and they know something of the details of each operation for which they are responsible. They know how to analyze and attack a problem.
FM Vs PM (Contd)
A PM, by contrast, is usually a generalist with a wide background of experience and knowledge. A PM must oversee many functional areas PM has an ability to put many pieces of a task together to form a coherent whole Project manager must be more skilled at synthesis Functional manager must be more skilled at analysis Functional manager uses the analytical approach and the PM uses the systems approach
Stakeholders Include:
Exam Tip
Project Manager (whose job is to proactively manage stakeholders and their needs) Team members Customer Performing organization, management, owners, etc. Sponsor (the champion) Internal/external, suppliers/contractors, citizens/society. PMO
Pages 6 & 7
Project Organization
Functional Organization Project is made a part of one of the functional divisions of the firm Major Advantages
Maximum flexibility in the use of staff Individual experts can be utilized by many different projects Specialists in the division can be grouped to share knowledge and experience.
The functional division also serves as a base of technological continuity when individuals choose to leave the project and even the parent firm. Functional division contains the normal path of advancement for individuals whose expertise is in the functional area
Disadvantages
Client is not the focus of activity and concern Functional division tends to be oriented toward the activities particular to its function
Read the case study Identify the stakeholders for your project Write their names as well as their roles (15 minutes)
CEO
Engineering Expeditor Marketing IT/IS
CEO
VP Proj. Mgt. Engineering Marketing Proj. Mgr. IT/IS
CEO
Coordinator Engineering
Page 8
Proj. Mgr.
Marketing
IT/IS
Functional
Matrix
Weak Matrix Balanced Matrix Low to Moderate Low to Moderate Mixed Strong Matrix Moderate to High Moderate to High Project Manager
Projectized
Project Managers Authority Resource Availability Who Controls the Budget? Project Managers Role Project Management Administrative Staff PMO?
Limited
Part-Time
Part-Time
Full-Time
Full-Time
Full-Time
Part-Time
Part-Time
Part-Time
Full-Time
Full-Time
Could
Often
Almost Always
Page 8
Organizational structure
Functional Organization
Chief Executive
Project Coordination
Page 23
Organizational structure
Weak Matrix
Chief Executive
Project Coordination
Page 24
Organizational structure
Balanced Matrix
Chief Executive
Project Coordination
Page 24
Organizational structure
Strong Matrix
Chief Executive
Manager of Project Managers Project Manager Project Manager Project Manager Project Coordination
Page 25
The project is separated from the rest of the parent system. It becomes a self-contained unit with its own technical staff, its own administration, tied to the parent firm by the tenuous strands of periodic progress reports and oversight Advantages
The project manager has full line authority over the project. All members of the project work force are directly responsible to the PM
Manager, Project A
Marketing Manufacturing R&D Finance Personnel Marketing Manufacturing R&D Finance Personnel
Manager, Project B
Disadvantages
When the parent organization takes on several projects, it is common for each one to be fully staffed. This can lead to considerable duplication of effort. PM may stockpile equipment and technical assistance in order to be certain that it will be available when needed Pure project groups seem to foster inconsistency in the way in which policies and procedures are carried out.
In pure project organizations, the project takes on a life of its own. Team members form strong attachments to the project and to each other. Technology is not deposited Worry about life after the project ends The Matrix Organization (Weak, Balanced, Strong) It couples some of the advantages of the pure project organization with some of the desirable features of the functional organization, and to avoid some of the disadvantages of each, the matrix organization was developed. In fact, the functional and the pure project organizations represent extremes.
Matrix Organization
President
Program manager Manufacturing Marketing Finance R&D Personnel
3 1 0
1 1/2 4 1/2
1/2 1/4 3
4 1 1/2 1/2
1/2 1/4 1
Matrix Organization
Advantages
The project is the point of emphasis. PM takes responsibility for managing the project, for bringing it in time, within cost, and to specifications There is less anxiety about what happens when the project is completed Response to client needs is as rapid as in the pure project case Consistency with the policies, practices, and procedures of the parent firm tends to be preserved
Disadvantages
The movement of resources from project to project in order to satisfy the several schedules may foster political infighting among the several P.Ms.
Remember
If you fail to plan, you fail to do. Proper Planning Prevents Poor performance
Projects that have failed generally display several of the following characteristics:
The customers conditions of satisfaction have not been negotiated. The project no longer has a high priority. No one seems to be in charge. The schedule is too optimistic The project plan is not used to manage the project. Sufficient resources have not been committed. Project status is not monitored against the plan.
Executing 6. 7. 8. 9. 10. Execute the Project Plan Carry out Quality Assurance Develop your Project Team Issue Status Reports Manage Procurement of External Resources
Success
Planning 3. 4. 5. Establish the Project Notebook/Extranet Hold the Project Kickoff Meeting Develop the Project Plan
5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 Develop the Scope Statement Develop the Work Breakdown Structure Define Project Activities Sequence Project Activities Estimate Project Activity Durations Develop the Project Schedule Estimate Project Costs Determine Resource Requirements Develop the Risk Response Plan
Monitoring and Controlling 11. 12. 13. 14. 15. 16. 17. Control Project Changes Manage Project Issues Ensure Formal Acceptance of all Deliverables Control the Project Scope, Schedule and Cost Control the Project Quality Report Project Performance Control Project Risks
Subsidiary Management Plans 5.a Develop the Scope Management Plan 5.b Develop the Schedule Management Plan 5.c Develop the Cost Management Plan 5.d Develop the Quality Management Plan 5.e Develop the Staffing Management Plan 5.f Develop the Communications Management Plan 5.g Develop the Risk Management Plan 5.h Develop the Procurement Management Plan
Closing 18. 19. 20. Document Lessons Learned Close the Project Celebrate Project Success
SAP
Lessons Learned Controlling Scope, Schedule and Cost
Executing 6. 7. 8. 9. 10. Execute the Project Plan Carry out Quality Assurance Develop your Project Team Issue Status Reports Manage Procurement of External Resources
Success
Planning 3. 4. 5. Establish the Project Notebook/Extranet Hold the Project Kickoff Meeting Develop the Project Plan
5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 Develop the Scope Statement Develop the Work Breakdown Structure Define Project Activities Sequence Project Activities Estimate Project Activity Durations Develop the Project Schedule Estimate Project Costs Determine Resource Requirements Develop the Risk Response Plan
Monitoring and Controlling 11. 12. 13. 14. 15. 16. 17. Control Project Changes Manage Project Issues Ensure Formal Acceptance of all Deliverables Control the Project Scope, Schedule and Cost Control the Project Quality Report Project Performance Control Project Risks
Subsidiary Management Plans 5.a Develop the Scope Management Plan 5.b Develop the Schedule Management Plan 5.c Develop the Cost Management Plan 5.d Develop the Quality Management Plan 5.e Develop the Staffing Management Plan 5.f Develop the Communications Management Plan 5.g Develop the Risk Management Plan 5.h Develop the Procurement Management Plan
Closing 18. 19. 20. Document Lessons Learned Close the Project Celebrate Project Success
1912
April 14
April 13
April 12
April 11
April 10
RMS Titanic left Queenstown at 1:30pm on April 11, 1912 Received ice warnings on April 12, 13 and six on April 14, from 9am to 9:40pm. (Not known if messages were delivered to the bridge, or ignored). Iceberg hit at 11:40pm on April 14, causing holes in 5 bulkheads. Ship finally starts sinking just after 2am on April 15.
Reference: www.titanic.com
Titanic
Lessons Learned The Value of Risk Management The importance of Communications
Executing 6. 7. 8. 9. 10. Execute the Project Plan Carry out Quality Assurance Develop your Project Team Issue Status Reports Manage Procurement of External Resources
Success
Planning 3. 4. 5. Establish the Project Notebook/Extranet Hold the Project Kickoff Meeting Develop the Project Plan
5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 Develop the Scope Statement Develop the Work Breakdown Structure Define Project Activities Sequence Project Activities Estimate Project Activity Durations Develop the Project Schedule Estimate Project Costs Determine Resource Requirements Develop the Risk Response Plan
Monitoring and Controlling 11. 12. 13. 14. 15. 16. 17. Control Project Changes Manage Project Issues Ensure Formal Acceptance of all Deliverables Control the Project Scope, Schedule and Cost Control the Project Quality Report Project Performance Control Project Risks
Subsidiary Management Plans 5.a Develop the Scope Management Plan 5.b Develop the Schedule Management Plan 5.c Develop the Cost Management Plan 5.d Develop the Quality Management Plan 5.e Develop the Staffing Management Plan 5.f Develop the Communications Management Plan 5.g Develop the Risk Management Plan 5.h Develop the Procurement Management Plan
Closing 18. 19. 20. Document Lessons Learned Close the Project Celebrate Project Success
Project Team
A Project Team is thus a group of dedicated persons who work together to complete the project within time, within budget and according to the scope.
Team Efficiency
L = out put/ input What a team is capable of achieving and what it actually achieves.
Communication Channels
Poor Communication
Information communication to project staff is very vital for project success No. of Channels = n(n-1)/2 Communications as an End Rather than a Means Information Atherosclerosis Clogging of important information Poor Integration
Structure of the Deliverable Project Manager Team Member A Team Member B Team Member C Team Member D Team Member E
PROJECT MANAGER
Specialist A
Specialist B
Specialist C
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Team Member B
Team Member C
Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Administrative Buffer
Chief Writer
Special Assistant
Specialist A
Specialist B Specialist C