Chapter-2 54eedfbf77dec
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Transcript of Chapter-2 54eedfbf77dec
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Project management and evaluation
By Sunesh Hettiarachchi
B.Sc, MBA, MACS, MBCS, IDPM
1–1
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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).
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The Triple Constraint
Cost
how much?
Quality/Scope
how good?
Time how fast?
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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
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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
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Project failure
• Examples for project failures…
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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. “
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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”
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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.
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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.
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• Project Management in Your Organization
• What are the current methods of project management in your
organization?
• What project management issues is your organization facing?
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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
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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
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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
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Let’s practice
• Activity 1
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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.
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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
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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
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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.
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Selection Criteria Matrix: Un-weighted Criteria
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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
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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
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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
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Managing the Triple Constraint: Set Priorities
• Need to discuss with customer and sponsor near startup
and agree on priority order.
• Example : Priority matrix
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1 - Critical 2 - Major 3 – Minor
Time X
Cost X
Scope X
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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
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Let’s practice
• Activity 2
• Activity 3
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