Unit 5 The World of Project Management and The Role of Project Manager Source: Project Management in Practice, 5th Edition, Mantel, Meredith, Shafer, Sutton, Wiley, 2014. Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 10th Edition, Harold Kerzner, Wiley, 2009. 1. The World of Project Management 2
What is a Project? A project is any task within an organization that does 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 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 principles as the larger projects. Example: Redesigning a shopping cart https://www.youtube.com/watch?v=M66ZU2PCIcM 3 Who is Involved? In industry, many projects are complex and may involve input from people with different kinds of knowledge and expertise. Projects usually involve a team who are managed by 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 a mainstream engineering discipline. 4
Definition of a Project 1. A temporary endeavor undertaken to create a unique product or service. (PMI 2008) 2. A project is a formal enterprise that addresses the matter of designing and developing the various systems. 3. A project is typically defined as a collaborative enterprise, frequently involving research or design, that is carefully 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. 5. A project is specific and unique with a specific deliverable aimed at meeting a specific need or purpose. 5 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) • Often involve conflicts 6
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. Project management involves applying a systematic approach to achieving the objectives of the project. 7 Definition of Project Management “The application of knowledge, skills, tools, and techniques to a broad range of activities in order to meet the requirements of a particular project.” Project Management Institute 2007 8
Why the Emphasis on Project Management? • Many tasks do not fit neatly into business‐as‐ usual • Organizations need to assign responsibility and authority for the achievement of their goals Project Management Include • Project Planning – 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 – Making adjustments 10
Trends in Project Management? Project management techniques are increasingly used for: Achieving Strategic Goals – e.g. Boeing 787 dreamiliner Achieving Routine Goals – e.g. routine machine maintenance Improving Project Effectiveness – e.g. creation of project management office Organizing Virtual Projects – e.g. Microsoft Windows 10 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. 11 Project Management vs. General Management Project management differs from general management as “projects” differs from “nonprojects” General management deals with “routine” work, project management deals with “unique” work. 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 carefully detailed planning. “Non‐project” budget follows standard budgeting procedures while project budget is prepared from scratch, delivered directly. “Non‐project” rarely crossing organization functional boundaries and the projects crossing them freely. Managerial hierarchy is well defined in general management while it is informal in project management. 12
Project Budgets • Project budgeting differs from standard budgeting in the way budgets are constructed • Budgets for non‐projects are primarily modifications of budgets for the same activity in the previous period • Project budgets are newly created for each project and often cover several “budget periods” in the future Project Schedules • In manufacturing, the sequence of activities is set when production line is designed – Sequence is not altered when new models are produced • Each project has a schedule of its own – Previous projects with deliverables similar to current one may provide a rough template – However, a specific schedule unique to the project at hand has to be prepared from scratch
Project Organizational Structure • Routine work of organizations takes place within a well‐defined structure – The divisions, departments, sections, and similar subdivisions of the total unit • Typical project cannot thrive in this structure • The need for technical knowledge, information, and special skills requires that departmental lines be crossed – The multidisciplinary character of projects Globalization • When large firms establish manufacturing plants or distribution centers in different countries, a general management team is established on site • For projects, globalization has a different meaning – Members of project teams may be spread across countries and speak different languages – Some project team members may never have a face‐to‐ face meeting
Negotiation • With little authority, the project manager depends on negotiation skills to gain the cooperation of departments in the organization • Those departments have their own objectives, priorities, and personnel • The project is not their responsibility and the project tends to get the leftovers Three Different Types of Negotiation 1. Win‐win 2. Win‐lose 3. Lose‐lose Unlike general managers, project managers have responsibility for accomplishing a project but little or no legitimate authority to command the required resources from other departments. The PM must be skilled at win‐win negotiation to obtain these resources.
What is Managed? Project management refers to the administration of the 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. Projects have three interrelated goals, these are to: •Finish on time •Meet the scope (specifications that satisfy the clients) •Meet the budget limit 19 Scope, Cost, and Time Project Performance Goals The performance of the project and PM is measured by the degree to which these goals are achieved. 20
Tradeoffs between Scope, Cost, and Time 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 profit. • When there is no acceptable ways to deal with the problem → terminate the project. 21 Abilities Needed for Effective Project Management Ability to resolve conflicts Creativity and flexibility Ability to adjust to change Good planning skills Negotiation skills • win‐win versus w in‐lose or lose‐lose 22
The Life Cycle of Projects A project’s life cycle measures project completion as a function of time or resource. During the early stages, the PM must make sure that the project reflects the wishes of the client as well as the abilities of the project team. During the implementation stage, the PM is focused of keeping the project on budget and schedule. Toward the end of the project, the PM’s attention is to assure that the project’s specifications are truly met. 23 The Life Cycle of Projects 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 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) 24
Figure 1‐2 The S‐Shaped Project Life Cycle 25 Figure 1‐3 The J‐Shaped Project Life Cycle 26
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