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Transcript of Chapter-2 54eedfbf77dec
Project management and evaluation
By Sunesh Hettiarachchi
B.Sc, MBA, MACS, MBCS, IDPM
1–1
What is a Project?
• What is a project?
• Planned set of interrelated tasks to be executed over a
fixed period and within certain cost and defined specification to
produce a product or a service.
• Major Characteristics of a Project
• Has an established objective.
• Has a defined life span with a beginning and an end.
• Has specific time, cost, and performance requirements (scope).
1–2
The Triple Constraint
Cost
how much?
Quality/Scope
how good?
Time how fast?
3
The Three P’s
• Program- operates over the long-term, and is
designed to use the organization’s resources to
impact a specific subject area that is part of an
organization’s mission.
• Project- has a beginning and end, defined resources,
and creates a unique product or service.
• Process- part of the ongoing operations of the
organization; may be introduced or changed over
time, but once established, an organizational process
operates on a continuous basis without a specified
end. 1–4
Example - Program and Project
• Program name : “Champions of Change : Rebuilding
America’s Infrastructure”
• Estimated budget : 48 billion dollars
• Number of projects : 15000 projects
• Capacity : 65000 people
• Duration : 3 years
• Purpose : To rebuild United State of America
• http://www.youtube.com/watch?v=IqTzjLTL_Ug&feature=relmfu
1–5
Project failure
• Examples for project failures…
1–6
IBM 7030
• “In 1956, a group of computer scientists at IBM set out to
build the world's fastest supercomputer. Five years later,
they produced the IBM 7030 , the world fastest computer.
But the 7030 was considered a failure.
• “IBM's original bid to Los Alamos was to develop a
computer 100 times faster than the system it was meant
to replace, and the 7030 came in only 30 to 40 times
faster. “
1–7
IBM 7030
• “Because it failed to meet its goal, IBM had to drop IBM
7030 's price to $7.8 million from the planned $13.5
million, which meant the system was priced below cost.
The company stopped offering the 7030 for sale, and only
nine were ever built.”
• This project has been recorded as one of the biggest
project failed in the history.
• “No proper technical competency hired for the project”
1–8
SAP project failure
• Shane Company – SAP ERP project failure overview
(2008)
• “The initial project cost was budgeted or planned for $10 million but
ended up costing approximately $36 million and was planned for 1
year but ended up taking approximately 3 years.”
• Reasons:-
• An improper budget and implementation plan.
• Scope and cost were not properly managed.
• Poor or undefined processes along with poor or untested system
functionality.
1–9
What is Project Management?
• Project management is a set of principles, practices, and
techniques applied to lead project teams and control
project schedule, cost, and performance risks to result in
delighted customers.
1–10
• Project Management in Your Organization
• What are the current methods of project management in your
organization?
• What project management issues is your organization facing?
11
Practical issues of project management
• Accomplish with shared resources often only available on
part-time basis
• Require cross-functional team work
• Involve uncertainty and are subject to change during
execution
• Subject to specific deadlines and time and resource
constraints
• Project manager often lacks functional authority over
team members
12
Proven Benefits of Project Management
• Provides clear roles, responsibilities, activities and
schedules for team efforts
• Includes a method for considering the consequences of
decreasing or increasing funds, resources, time, or quality
• Specifies a detailed plan of how to achieve our objectives
• Assists in the realistic assignments of tasks and
responsibilities to team members according to the skills
and resources available
13
Proven Benefits of Project Management (contd..)
• Gives structure to communicating the progress of projects
• Allows teams to identify potential problems and take
preventive action early
• Keeps management officers and project stakeholders
well-informed and supportive
• Helps manage pressure for expanding the scope of
projects without proper decision criteria and analysis of
changes
14
Let’s practice
• Activity 1
15
Diverse Skills Needed for Project Management
• Planning skills—the ability to plan the use or organizational resources of time, personnel, budget, facilities, equipment, and supplies to achieve organizational objectives
• Technical skills—the specific professional technical skills needed for a project.
• People skills—the ability to manage and motivate people who will implement the project activities, communicate effectively with stakeholders, and resolve conflicts and interpersonal problems.
16
What skills make the best project managers so
good?
• Communication: listening, persuading, negotiating
• Organizational: planning, goal-setting, analyzing
• Team building: empathy, motivation, team spirit
• Leadership: sets example, energetic, vision,
delegates, positive attitude
• Coping: flexibility, creativity, patience, persistence
• Technical: experience, project knowledge
17
Knowledge areas required for a project
manager
• Scope Management
• Time Management
• Cost Management
• Risk Management
• Quality Management
• Human Resource Management
• Communications Management
• Procurement Management
• Integrated Management
1–18
19
Step 1: Select project
• Define project scope: Selecting Priority Projects
• Project selection can be a difficult process, especially
when there are a large number of potential projects
competing for scarce dollars.
• Some selection methods are highly intuitive; some very
political.
• Others try to add rigor through more scientific selection
processes.
20
Selection Criteria Matrix: Un-weighted Criteria
21
Project Agreement
• What: A written description that clearly communicates what the
project is (and is not)
• When: Ideally, at the beginning of a project. Also useful to develop
one for a project already started. Update it as needed.
• Why:
• Establish agreement between project team members and
stakeholders about what the project is (and is not)
• Build team member commitment – team should write the charter
together
• Foundation for project planning
• Helps in managing expectations
• Communicate project to others
22
Project Stakeholders
• Within the team
• Project manager
• Team members
• Within the organization
• Internal customers
• Project sponsor
• Senior managers
• Functional managers
• Outside the organization
• External customers
• Collaborating organizations
• Affected organizations
• Vendors
23
Project Agreement Development Meeting
• Allow 2 ½ hours to half day, depending on complexity or
project
• Recognize that the process and team involvement is as
important as document
• Ensure participation by all team members
• Use group techniques such as brainstorming and
consensus
• Do not let the project manager dominate the meeting
24
Managing the Triple Constraint: Set Priorities
• Need to discuss with customer and sponsor near startup
and agree on priority order.
• Example : Priority matrix
25
1 - Critical 2 - Major 3 – Minor
Time X
Cost X
Scope X
Step 2: Define project activities
• Work Breakdown Structure
• Prepare based on project scope, objectives, and/or deliverables
• Organizes and defines work to be done
• Divides work into logical, manageable segments
• Objective is to identify all project tasks that must be completed with
action verbs
26
27
28
29
Let’s practice
• Activity 2
• Activity 3
30