Unit 10 The World of Project Management and The Role of Project - PDF document

Unit 10 The World of Project Management and The Role of Project Manager The Role of Project Manager Source: Project Management in Practice, 4th Edition, Mantel, Meredith, Shafer, Sutton, Wiley, 2011. Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 10th Edition, Harold Kerzner, Wiley, 2009. 1. The World of Project Management Management 2

What is a Project? What is a Project? A project is any task within an organization that does p j y g not fit neatly into ‘business-as-usual’. The “Big Dig” project in Boston and the “787 Dreamliner” project at Boeing are two examples of large scale projects. On smaller scale, an are two examples of large scale projects On smaller scale an individual might self ‐ build a new house, a car manufacturer may want to develop a new engine or a company may want to set up a quality system. In the school context, students are given a design and make project which needs to be managed – although on a smaller scale – using many of the same g g y principles as the larger projects. 3 Who is Involved? Who is Involved? In industry, many projects are complex and may involve input d l d l from people with different kinds of knowledge and expertise. Projects usually involve a team who are managed by j y g y a project manager or project leader who may be appointed for the duration of the project. It is worth noting that project management is adopted as a career specialism by many engineers and is considered to be p y y g a mainstream engineering discipline. 4

Definition of a Project Definition of a Project 1. A temporary endeavor undertaken to create a unique p y q product or service. (PMI 2008) 2. A project is a formal enterprise that addresses the matter of designing and developing the various systems. f d i i d d l i th i t 3. A project is typically defined as a collaborative enterprise, frequently involving research or design, that is carefully q y g g , y planned to achieve a particular aim. 4. A planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations. fi d i d d i hi i d h li i i 5. A project is specific and unique with a specific deliverable aimed at meeting a specific need or purpose. aimed at meeting a specific need or purpose. 5 Project Characteristics Project Characteristics • Have a specific objective (which may be unique p j ( y q or one ‐ of ‐ a ‐ kind) to be completed within certain specifications • Have defined start and end dates d f d d d d • Have funding limits (if applicable) • Consume human and nonhuman resources (i.e., C h d h (i money, people, equipment) • Be multifunctional (cut across several functional lines) • Often involve conflicts 6

Overview of Project Management Overview of Project Management Project management techniques originated in industry to address the need for managing increasingly complex activities such as civil and mechanical engineering projects. The techniques involved are something quite different in scope and purpose from the ‘Design Process’ that is familiar to the engineers. Project management concentrates on the management of resources and time over the life cycle of a project in a systematic manner. h lif l f j i i Project management involves applying a systematic Project management involves applying a systematic approach to achieving the objectives of the project. 7 Definition of Project Management Definition of Project Management “The application of knowledge, skills, tools, and techniques to a broad range of and techniques to a broad range of activities in order to meet the requirements of a particular project ” requirements of a particular project. Project Management Institute 2007 8

Project Management Project Management • Project Planning oject a g – Definition of work requirements – Definition of quantity and quality of work – Definition of resources needed • Project monitoring – Tracking progress – Comparing actual outcome to predicted outcome – Analyzing impact A l i i t – Making adjustments 9 Trends in Project Management? Project management techniques are increasingly used for:  Achieving Strategic Goals – e.g. Boeing 787 dreamiliner  Achie ing Ro tine Goals  Achieving Routine Goals – e.g. routine machine maintenance i hi i  Improving Project Effectiveness – e.g. creation of project management office  Organizing Virtual Projects – e.g. Microsoft Windows 8 development involves global teams whose members operate in different countries, time zones.  Handling Quasi ‐ Projects – e.g. a new drug development in a pharmaceutical company without a clearly defined objective, a fixed deadline, and a determined budget. , g 10

Project Management vs. Project Management vs. General Management Project management differs from general management as “projects” differs from “nonprojects”  General manager “manage by exception”. Project manager only deals with the exceptions.  General management success is dependent on good planning. Project success is absolutely dependent on p g j y p carefully detailed planning.  “Non ‐ project” budget follows standard budgeting procedures while project budget is delivered directly procedures while project budget is delivered directly.  “Non ‐ project” rarely crossing organization functional boundaries and the projects crossing them freely. 11 What is Managed? What is Managed? Project management refers to the administration of the j g project, its supervision and organization. It means analyzing the objectives of the project, defining the tasks needed to achieve these objectives and controlling the execution achieve these objectives and controlling the execution. Projects have three interrelated goals, these are to: j g , •Finish on time •Meet the scope (specifications that satisfy the clients) •Meet the budget limit 12

Scope, Cost, and Time Project Performance Goals Project Performance Goals The performance of the project and PM is measured by the degree measured by the degree to which three goals are achieved. 13 Tradeoffs between Scope, Cost, and Time The primary method of adapting to unpredicted The primary method of adapting to unpredicted change is to trade off one objective for another. • Project falls behind schedule → Add more resources. • Budget is short → Negotiate a later delivery date. • Neither cost nor schedule is negotiable → take less Neither cost nor schedule is negotiable → take less profit. • When there is no acceptable ways to deal with the problem → terminate the project. bl t i t th j t 14

Abilities Needed for Effective Abilities Needed for Effective Project Management  Ability to resolve conflicts y  Creativity and flexibility  Ability to adjust to change  Ability to adjust to change  Good planning skills  Negotiation skills  Negotiation skills • win ‐ win versus w in ‐ lose 15 The Life Cycle of Projects The Life Cycle of Projects  All organisms have a life cycle (i.e., they are born,  All organisms have a life cycle (i.e., they are born, grow, wane, and die) … and so do projects  Some projects follow an S ‐ shaped curve … they start p j p y slowly, develop momentum, and then finish slowly (e.g. building a house)  Other project follow a J ‐ shaped curve … they start slowly , proceed slowly, and then finish rapidly (e.g. cooking or baking a cake) k b k k ) 16

Figure 1 ‐ 2 The Project Life Cycle Figure 1 2 The Project Life Cycle 17 Figure 1 ‐ 3 An Alternate Project Life Cycle Figure 1 3 An Alternate Project Life Cycle 18

Selecting Projects to Meet O Organizational Objectives i i l Obj i  Project selection is the process of evaluating individual projects or groups of projects and then choosing to implement a set of them so that the objectives of the parent organization is achieved.  Conditions considered in selection  Is it profitable?  Is it required by law?  Is it required by law?  Does the firm have the knowledge and skill to carry it out?  Does the project involve building competencies, consistent with the firm’s strategy? the firm s strategy?  Does the firm has the capacity to carry it out on schedule?  If R&D project, could the technical success bring economic success? 19 Nonnumeric Selection Methods Nonnumeric Selection Methods  The “Sacred Cow” ‐ a pet project advocated by a senior executive of the firm.  The operating/competitive necessity – any project that is necessary for the continued operation of the firm. ti f th fi  Comparative benefits – among complex projects selection could be made by individuals in the projects, selection could be made by individuals in the committee through rank ‐ ordering, such as the Q ‐ sort method. 20

The Q ‐ Sort Method The Q Sort Method First, separate projects into “good”, “fair” and “poor” subsets. If there are more than 7 or 8 in a group, h further separate them into, for example, “good ‐ plus”, and “good minus” Rank the and good ‐ minus . Rank the projects in a subset. Arrange the subsets in order of rank to obtain the list of orders to obtain the list of orders. 21 Numeric Selection Methods Numeric Selection Methods  Financial assessment methods  Financial assessment methods • payback period • discounted cash flow di d h fl • opportunity cost analysis  Scoring methods • unweighted 0 ‐ 1 factor method unweighted 0 1 factor method • weighted factor scoring method 22