DP SELECT FallSeminar 2016 2 Prtcpnts - KTH...management technique? 3 Origins ... Project Management...

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Project Management

MSc SELECT Program

Stockholm, September 28th and 29th, 2016

Fall Seminar 2016

Jordi Vinaixa

@JordiVinaixa

[email protected]

FACULTY

Jordi Vinaixa, PhD, MBA, BSc

Associate Professor of Innovation and Entrepreneurship at the Department of Strategy & General Management of ESADE Academic (Director) responsible for the Management Innovation and Entrepreneurship programs and activities for the MSc and PhD KIC_IE Schools.Director of the “From Science to Business” Program.Areas of expertise: Entrepreneurship and project management

Phone: + (34) 932 806 162 (Ext.: 2490)

e-mail: [email protected]

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Introduction

Does any of you have any experience as:

Project team member

Project manager

Does any of you have any direct experience of a failed project?

Is project management a new management technique?

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Originsprojects exist since the beginning of mankind

Project Managementyou can trace back its origins to certain projects

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Project Management Tools

Henry Gantt, a mechanical engineer and management consultant who developed the Gantt Chart in the 1910s. These Gantt charts

were employed on major infrastructure projects and are accepted as the most important project management tool until today.

Projects 3.0third generation of project management

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ProjectsProject management @ XXI century

Why projects take place?

Why should you manage projects?

When should you use them?

When is a project needed?

“In principle, project management can effectively be applied to anew task or a non recurrent task undertaken by the organization”“In principle, project management can effectively be applied to anew task or a non recurrent task undertaken by the organization”

Source: David I. Cleland & Lewis R. Ireland. Project Management. 2002

Size

Unfamiliar

Market Change

Interdependence

ResourceSharing

Importance

Uncertainty

Project

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The new business environment requires new approaches to project management.

Flattening.

Empowering employees.

Outsourcing.

Partnerships.

Multicultural

New business environmentNew business environment New project managementNew project management

Project managers must become customer focused.

Project managers must combine “hard skills” (scheduling, budgeting, controlling…) with “soft skills”: Leadership.

Negotiation and conflict management

Effective communication

Influencing the organization.

Motivation.

Problem solving

Strategic contribution: collection of business activities which must create business results.

Why do we need Project Management?

1. Inadequately trained and/or inexperienced project managers.

Poor Project Management is normally one of the main reasons why Projects fail

Source: H.Kerzner (1989), Zimmerer & Yasin (1998), F.Winters (2002)


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2. Failure to set and manage expectations

from all stakeholders.




3. Poor leadership at any and all levels.




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4. Failure to use tools in planning systematically. Poor plans.




5. Poor effort at resources estimation.




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6. Inadequate organizational design.




7. Inadequate communication, tracking and reporting. “No one knows the major milestones dates”




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8. No one bothered to see if there would be personnel available with the necessary skills




9. Lack of corrective decisions and actions.




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Technical & Project Management Processes

Technical ProcessRelated to producing project

technical deliverables.Technical process phases are those

necessary to produce such deliverables. They normally take place during the execution phase of the project.There will be a specific technical

process for each product that the organization produces, i.e. software development, new product launch, process improvement, etc.

Project Management ProcessSpecifically related to the necessary

tasks to manage the technical process.Sets the timing for the project

management deliverables: project charter, stakeholder analysis, risk management, communication plan, status reports, acceptance and closure, etc.This process is intended for the

technical process project execution exclusively.A generic methodology exists to

manage projects. It can be applied to any type of project with indepence of the technical process that is intended to help execute.

Results

Resources Time

Trade-Offs

Triple Constraint

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Project Management: Definition

“Triple constraint”“Triple constraint”On timeWithin budgetAccording to scope/specs

On timeWithin budgetAccording to scope/specs

“The application of knowledge, skills, tools and techniques to project activities to meet stakeholder requirements”(Project Management Institute (PMI))

“The application of knowledge, skills, tools and techniques to project activities to meet stakeholder requirements”(Project Management Institute (PMI))

Get the job done....

While keeping the key

stakeholders happy

While keeping the key

stakeholders happy

Dealing with many dimensions, constraints and trade-offs (i.e. safety, etc.)Dealing with many dimensions, constraints and trade-offs (i.e. safety, etc.)

Project Life Cycle

Initiation Planning

Control Execution

ClosureArrows represent the document flow

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Project Life Cycle

2Leadership and team building


4Planning

4Planning

3Communication

3Communication

0Identification and selection


6Closure

6Closure

5Monitoring and control


7Integration

7Integration

1Definition

and analysis

1Definition

and analysis

(Proposed) Model for PM

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4Planning

4Planning

3Communication

3Communication



6Closure

6Closure



7Integration

7Integration

1Definition

and analysis

1Definition

and analysis

1. Project Definition and Analysis

Objectives

Why do we go so fast if we are heading in the wrong direction?

A lot of time can be wasted in producing a very good plan

to achieve the wrong objective

A lot of time can be wasted in producing a very good plan

to achieve the wrong objective

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Background/Purpose:

Rationale behind the project: problem/ opportunity. Why do you do this project?

Goal:

Setting what needs to be achieved

Objectives:

Define how it (the Goal) should be achieved

Deliverables:

Tangible products or services that will be obtained during or as a result of the project.

Vision:

Setting an image of the end state of the project

Purpose

MissionObjectives

Vision

Project Charter

DefinitionFocusing the project

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Project CharterWhat does a Project charter do?

Formally commits the organization to the project

Defines objectives expected outcomes and deliverables

Specifies the time span, resources and specs of the project

It is also used to:• Appoint a project manager and his/her attributes

• Allocate the core team members

• Defines the sponsor – who must agree and sign the charter

Objectives

SMART

S : Specific

M : Measurable

A : Agreed

R : Realistic or Reachable

T: Time-bound

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Definition Stage

Objectives hierarchyObjectives

Outcomes/Deliverables

Activities

Goal

Project Definition: Project charter

Project Description

Indicators Measurement tools

Objectives

Deliverables

Activities Resources

Horizontal Rationale

Vert

ical

Rat

iona

le

Goal

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Country Hospital Case

... and project analysis



4Planning

4Planning

3Communication

3Communication



6Closure

6Closure



7Integration

7Integration

1Definition

and analysis

1Definition

and analysis

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Stakeholders management process

IdentificationDefine

strategyFollow-upAnalysis

Communication process

Stakeholders management process

Identification Define strategyDefine strategy Follow-upAnalysis

Team brainstorming

Expert interviews

Check-lists

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Stakeholders Analysis

Top Management

Employees Commuity

CustomersSuppliers

Think tanks / Activists

Government /Regulators

Owners

Competition/Associations

Source: Adapted from Donaldson and Preston (1995), Freeman (1994) and Johnson and Scholes (1997)

INTERNAL STAKEHOLDERSEXTERNAL STAKEHOLDERS EXTERNAL STAKEHOLDERS

Stakeholders are...Those who provide resourcesProject sponsorProject managerProject team membersOther directorsProject customersProject suppliers

Those who will be impacted by the projectPositivelyNegatively

OthersParasites

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The “right” sponsor

Who can be the right sponsor?

Who can be the right sponsor?

Is in a senior or executive management position and canfinancially and politically back the project. Removes roadblocks impeding the project team’s progress. Provides the team with the bigger political picture and explains

any impacts. Reviews the progress regularly. Clarifies the project mission/goal. Questions deliverables, timing and costs. Sign Project Charter, “kicks off” the project and celebrates with

the team at its completion.

Balance: authority level + time availability + responsibilities assumedBalance: authority level + time availability + responsibilities assumed

When a sponsor is needed? The earlier in the project, the better.When a sponsor is needed? The earlier in the project, the better.

Projects can succeed without sponsors, but the probability of success highly increase with one

Projects can succeed without sponsors, but the probability of success highly increase with one

Stakeholders management



Assess stakeholders on key issues

Assess stakeholder position

Set priority

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Stakeholder Analysis: Map

Pow

er

Interest

High

High

Low

Low

Stakeholder5

Stakeholder2

Stakeholder3

Stakeholder6 Stakeholder1

Stakeholder4 Stakeholder7

Stakeholder9

Stakeholder8

Stakeholder typology to understand what each stakeholder can do for the project

“SUPPORTIVE”

• Consultants

• Suppliers

“MIXED BLESSING”

• Clients & Users

• Line management

• Contractors

“MARGINAL”

• Community

• Media

“NON-SUPPORTIVE”

• Labour unions

• Public authorities

• Competitors

Low High

Low

High

Potential to threaten the project

Potential tocontribute to the project

After: Savage1991Note: stakaeholder placements represent typical examples


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Developing a strategy for each stakeholder

Agree project team roles in dealing with stakeholders


Keep satisfied

Keep informed

Keep closeContact(Max. effort)

Monitor (Min. effort)

Pow

er

High

Low Interest High

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“SUPPORTIVE”

INVOLVEInform & involve in

relevant issues

“MIXED BLESSING”

COLLABORATEBuild trust and collaborate at administrative & operational

levels

“MARGINAL”

MONITOROnly consider when

affecting their interests

“NON-SUPPORTIVE”

DEFENDReduce dependence &

keeping reasonably

satisfied

Low High

Low

High

Potential to threaten the project

Potentialto

helpthe

project

After: Savage1991

What actions should you take?

How should you communicate with them?

What relative power do you have?



IdentificationIdentificationDefine


Implement strategies

Monitor & adjust strategies and actions

Periodical evaluation of stakeholder management

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Country Hospital: Stakeholder Analysis

StakeholderPosition

regarding

the project

Strategic

goal

Action Plan

Initial tasks Responsible

Country Hospital CaseStakeholder

Position regards the

projectStrategic goal

Action Plan

Initial tasks Responsible

Deputy Manager

Supportive Get her as our real sponsor • Sign-off and publish the Project Charter PM

Hospital Management

Mixed blessing Get them involved• Regular meetings to explain the project and its progress

Sponsor & PM

Patients SupportiveEnrich the survey with relevant

questions• Focus group to evaluate the questionnaire

PIASS

Medical staff (Doctors)

Mixed blessingInvolve them to consider the survey as a strategic tool for

improvement

• Create a “project team” with some representatives to develop the right questionnaire

Sponsor & PM

Non-medical staff (nurses, therapists…)


improvement


Sponsor & PM

Administrative staff


improvement


PIASS

Participation Committee

Non-supportive Avoid negative influence• Meeting to introduce the project and keep them informed

PM

Public Relations

MarginalInvolve them to consider the survey as a strategic tool for

improvement


PM

PIASS staff SupportiveMotivate the team: working for

something important• Internal meeting presenting the project and planning

PM

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Different stakeholders will have different expectations on the

project outcome....

... hence, there will be different criteria to determine project success.

Stakeholders satisfaction is the result of:

S = R - E

Satisfaction = (Perceived) Results - Expectations

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Project Definition: Project Charter

Project Description

Indicators Measurement tools

Objetives

Deliverables

Activities Resources

Horizontal Rationale

Vert

ical

Rat

iona

le

Goal

Stakeholders

Stakeholder Analysis

Needs and wishes are understood – (EXPECTATIONS)

Outcomes must be usable – (RESULTS)

Promises are kept – (RESULTS)

Stakeholder usually have some underlying expectation with regards to Project Management:

“Alleviate their problems, not add to them”Davidson Frame, 1994

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Project Risk Management

Project Management

Risk Management

Risk Identification

Risk Analysisand

Evaluation

Risk Response Planning

Risk Follow upControl

Four Phases

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Risk Analysis: Sources

The project plan (WBS): project tasks

Stakeholders

Resources: Financial, human, team structures…

Organization’s environment: changes in strategy, sponsor, other projects….

External environment: technological changes, legal and regulatory, competition …

Risk Analysis: Sources

Project Risks (RBS)

Technical Process

External to the organization

Internal to the organization

Project Process

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Risk Analysis: SourcesProject Risks

(RBS)

Technical process

Requirements

Technology

Complexity & interfaces

Performance &

reliability

Quality

External to the organization

Suppliers

Legal regulations

Market

Client

Weather conditions

Internal to the organization

Stakeholdersinternal

Resources

Financing

Prioritization

Project mngmentprocess

Estimates

Planning

Control

Communication

Recording a Risk:

Existence: There is a risk that…

Cause: Caused by …

Consequence: With the end result of …

Risk Management

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Risk Management

There is the risk that… Garfield might slip.

How to record a risk:

Caused by… the ice on the walk path.

With the end result of… banging his head against the tree.

There should be snow waringns

Recording a Risk:

There is a risk that we can’t start working on WP XYZ

Caused by a delay in receiving component ABC from the supplier

With the end result of (number of days) delay in finishing WP XYZ (the project)

Risk Management

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Recording a Risk:

There is a risk that DELIVERABLE XYZ is not accepted by the client

Caused by the DELIVERABLE low quality (not meeting the requirements)

With the end result of (number of days) delay on WP XYZ (the project) due to rework on the DELIVERABLE

Risk Management

Risk Management

Risk Identification

Risk Analysis

And Evaluation


Risk Follow up

Control

Four Phases

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Risk Management:Risk Analysis and Evaluation

For each risk the following attributes should be evaluated:

Its likelihood/probability (High, Medium, Low)

Its consequences (H/M/L)

How easy/difficult will be to identify it before it happens (H/M/L)

When is it expected to happen (at what moment …)?

Risk Management

High High Extreme

Mid Mid - High High

Low Low Mid

High

Low HighProbability

Impa

ct

Risk Identification

Risk Analysis

and Evaluation


Risk Follow up

Control

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Risk Managment

Risk Identification

Risk Analysis

And Evaluation


Risk Follow up& Control

Four Phases

Gestión del riesgo: Determinar Respuestas

Response Description

AvoidAltering the plan so that the circumstances which

may give rise to the risk no longer exist

TransferMoving the impact (and ownership) of the risk to a

third party

DeferDeferring aspects of the plan to a date when the

risk is less likely to occur

Accept and

mitigate

Dealing with the risk preparing plans to reduce the probability or impact of the risk via contingency plans

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Project Start

Project End

Time of Risk

Address Risk Causes

Address Risk Effects

Prevent or reduce the probability of the risk

Prepare Contingency Plans to reduce the impact of the risk

Risk Management Plan

Risk Managment

Monitor+

ContingencyPlan

MonitorContinuously

+Contingency

Plan

Monitory Reassess

+Contingency

Plan

Monitor MonitorContinuously

MonitorContinuously

+Contingency

Plan

- - Monitor

High

Low HighProbability

Impa

ct

Risk Identification

Risk Analysis

And Evaluation


Risk Follow up

Control

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Risk follow up and control

Monitor execution of the planned actions (are they having the desired effect on the risks identified?)

Model trends to predict potential risksWatch for warnings on new risks developingReport on statusTake action to ensure that the risk plan is being executed

Risk managment is an ongoing activity that takes place thoughourt all the project execution

Risk Identification

Risk Analysis

And Evaluation


Risk Follow up& Control



4Planning

4Planning

3Communication

3Communication



6Closure

6Closure



7Integration

7Integration

1Definition

and analysis

1Definition

and analysis

4. Planning

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Planning

What is to be accomplished?What is to be

accomplished? Work Breakdown StructureWork Breakdown Structure

Who is responsible for what?

Who is responsible for what? Responsibility MatrixResponsibility Matrix

What resources are required?


Resource Analysis& Project BudgetResource Analysis& Project Budget

In what order and when do you need to do it?

In what order and when do you need to do it?

Project Scheduling (critical path, Gantt charts…)Project Scheduling (critical path, Gantt charts…)

The Project Plan answers the following questions…The Project Plan answers the following questions…

How much planning do you want?

1. Project complexity.

2. Uncertainty level.

Under conditions of high uncertainty consider “phased planning”: preparing detailed plans for a phase only at the end of the previous phase.

3. Project size.

Small projects: planning & control no more than 10/15% of total project costs.

Large projects (100 MM €): project administration can reach 50% or even more of total project costs.

4. Organizational requirements.

5. Use of friendly tools.

General rule: To balance the amount of planning & control with the characteristics of each project

General rule: To balance the amount of planning & control with the characteristics of each project

Keep it simple, clear and easy to manageKeep it simple, clear and easy to manage

Project costs = Production costs + administrative costsProject costs = Production costs + administrative costs

Criteria to decide how much planning you needCriteria to decide how much planning you need

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PlanningPlanning method or how to create a project action plan:

1. Use the information resulting from the project analysis

2. Develop a risk management strategy

3. Build a Work Breakdown Structure (WBS)

4. Identify tasks relationship and dependencies

5. Assess resources and time to achieve each task

6. Prepare a first project schedule

7. Resource planning: assign and balance necessary resources

8. Prepare a Project Budget

Planning








In what order and when do we need to do it?




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Work Breakdown Structure: Definition

A deliverable-oriented group of project elements that defines and organises the total work scope of the project. Each descending level

represents an increasingly detailed definition of the project work

Deliverable-oriented, requirements, activities & results

Deliverable-oriented, requirements, activities & resultsWorkWork

Arranged in a hierarchical structure

Arranged in a hierarchical structureStructureStructure

Decomposed into simple, manageable elements or “work

packages” (WP) Measurable Accountable

Decomposed into simple, manageable elements or “work

packages” (WP) Measurable Accountable

BreakdownBreakdown

The WBS is a method to analyze the work to be done, and is the basis for scheduling, costing, organizing & controlling projects activities

The WBS is a method to analyze the work to be done, and is the basis for scheduling, costing, organizing & controlling projects activities

After: Project Management Institute

Developing the WBS

List all final deliverables / products of the project

List all final deliverables / products of the project

List the major phases that must be accomplished

List the major phases that must be accomplished

Name all the tasks needed in each phase to produce the deliverablesName all the tasks needed in each phase to produce the deliverables

Break the tasks down into sub-tasks

Break the tasks down into sub-tasks

Milestones: major tasks or major relevant events for the projectMilestones: major tasks or major relevant events for the project

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Principles of good WBS’s Break the work down to the level that is useful.

To assign clear and manageable responsibilities.

To facilitate costing.

To enable monitoring and controlling.

Work packages should be “MECE”.

Mutually Exclusive.

Comprehensively Exhaustive (do not assume tasks).

A work package should produce a clearly identifiable output.

Work packages should have a clear start and finish. Length:

From a few days to a few weeks.

Rule 8/80 (min 8 hours/max 80 hours).

Each work package should have only one responsible.

Both those who perform the task and the project team should be involved in developing the WBS to ensure consistency and buy-in.

The WBS must be a flexible tool to accommodate inevitable changes while maintaining control of the work content according to the scope statement.

WBS (Work Breakdown Structure)

Task = process that convert input into output

ProcessInput Output

1) To execute a task you need to have all the necessary input

2) The ouput of a task must be needed in another task or it will be part of a deliverable

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Planning: Scheduling Exercise: To write and type the manuscript of a new book.

Writing the manuscriptWriting the manuscript Typing up the manuscriptTyping up the manuscript

60 days 30 days

Wrting 1st part of the manuscriptWrting 1st part of the manuscript Writing 2nd part of manuscriptWriting 2nd part of manuscript

30 days 30 days

Typing up the 1st part of the manuscriptTyping up the 1st part of the manuscript Typing up the 2nd part of the manuscriptTyping up the 2nd part of the manuscript

15 days

Total: 90 days

Total: 75 days

Executing the tasks sequentially:

Executing the tasks in parallel:

15 days

Planning: Scheduling

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WBS: Tabular Format

Source: Davidson Frame, 1987

WBS: Box-Chart Format

Source: Davidson Frame, 1987

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Planning: WBS

“Who had to do this job (task)?”

Planning












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RACI Responsibility Matrix

[Project Name]: Responsibility MatrixProject Manager: [Name]

Descrives the level of engagment and authrotiy stakeholders have over the relevant project tasks.R: RESPONSIBLE. Approval authority: task approval or decision maker.A: ACCOUNTABLE. Responsable to execute the task, may not be the one taking decison but getting the job done and leading the team so that the objective is achieved within: time, specs and resources.C: CONSULTED. Will not take the decision but should be engaed before decison are taken. May provide necessary information to acomplish the task.I: INFORMED. Must be informed that the task will take place. He should be aware of the task status at all times.

Activity [Stakeholder’s Name]

[Stakeholder’s Name]



[Stakeholder’s Name]]

Planning












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Schedule PlanningObjective: To define the project’s

time length. It establishes the base line to request resources and commit to a timeframe. It also enables to identify critical tasks and potential conflicts

Process:

Estimate duration

Identify dependencies

Schedule development

Find critical path

Ensure time estimates are realistic

predecesorpredecesor successorsuccessor

predecesorpredecesor

successorsuccessor

predecesorpredecesor

successorsuccessor

Finish-to-start

Start-to-start

Finish-to-finish

Activity Sequencing

Sequencing requires understanding of task dependencies:Logical Dependencies: Inherent to the nature of the work.External Dependencies: Reliance on non-project activities.Discretionary Dependencies: Defined by project team (‘soft

logic’).Resource dependencies (due to shared resource availability)

shouldn‘t be considered here. Regardless of resources, the tasks will have o be performed in the same order. Dependencies determine in which order activities should be

done… and which tasks can be carried out simultaneously.Define task dependencies only at the work package level. Summary

tasks are groups of work packages.

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Schedule PlanningMilestones

Events on which you want to focus your attention during project execution. Examples:

Project beginning and end.

Deliverables due dates

Project tollgates / review meetings

Stakeholders status reports

Interaction with external organizations

Project Optimization CaseBased on the information on tasks dependencies, duration and

necessary resources, answer the following questions.

Task Duration Dependencies Resources

A 2d - 4R1

B 3d A 4R2

C 6d B,D 5R1

D 7d - 2R2

E 7d B 4R3

F 3d C,E 4R3

G 3d C 4R3

H 4d G 2R2

1. What is the critical path?

2. What is the minimum project time frame?

3. What is the margin for each task?

4. What tasks should we accelerate to compensate a 2 day delay on task G?

5. What tasks should we accelerate to compensate a 2 day delay on task E?

6. What is the maximum amount of R1, R2 and R3 resources needed?

7. How can the R3 resources pick be reduced without a project delay?

8. How much would the project delay if there were only 4 units of R2 available?

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6. What is the maximum amount of R1, R2 and R3 resources needed?

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Task A

Task B

Task C

Task D

Task E

Task F

Task G

Task H

GANTT

R1

R2

R3

ResourceWorkload

5

6

8

7. How can the R3 resources pick be reduced without a project delay?

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Task A

Task B

Task C

Task D

Task E

Task F

Task G

Task H

GANTT

R1

R2

R3

5

6

8

3

ResourceWorkload

48

8a. How much would the project delay if there were only 4 units of R2 available?

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

Task A

Task B

Task C

Task D

Task E

Task F

Task G

Task H

GANTT

R1

R2

R3

53

33

3 días de retraso

5

4

4

53

ResourceWorkload

8b. How much would the project delay if there were only 4 units of R2 available?

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

Task A

Task B

Task C

Task D

Task E

Task F

Task G

Task H

GANTT

R1

R2

R3

5

4

4

3

1

21

1

ResourceWorkload

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Common mistakes in scheduling

Roughly defined or long tasksMissing tasks or over dependency on “external” resultsMissing interdependencies… specially interdepartmentalTasks without a named responsibleUn-realistic task allocationUn-realistic durationsAssumption of everyone working at 100% capacity all the time“Padding”

Problems due to over-eager crashing and fast-trackingLack of “buy in” from those who performs tasksOutdated schedulesBadly communicates schedules

Resource PlanningObjective: understand resource requirements to take informed decisions.

Process:Review Schedule. Add non project related interruptions (holidays, government approvals, etc.). Adjust task duration taking into account available resources (5-6 hr/day).

Resource Needs. Determine all the resources needed for the project. Adjust duration to prevent bottle necks (use resource histograms, see figures)

Budget. Add together all the costs associated with the resources and other projects costs. Compare the outcome to the project budget.

Identify Patterns. Seek for patterns in the GANTT chart that may identify potential problems such as:

Same person owning most of the tasks

Single persons owning two parallel tasks

Many tasks in parallel

Tasks with no owners

hour

s/m

en

time

resource limit

problem

Item Budget Used Deviation % dev

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Resource Planning Build the resource planning on the WBS and the Responsibility

Matrix

Estimates the resources required for the tasks to be completed on time and on quality. Ensure buy-in by involving the people responsible

Consider:

Uniqueness and difficulty level of the specific tasks

Organizational capabilities and experience

“Padding”

Check whether resources are available. If not review your plan

Project Budget

Project budgets are normally made up of four types of costs: Direct labour costs: time x wages Fringe benefits: social security… Overheads: office space, utilities

& supplies Auxiliary expenses: specific to

the project such as project travel, special equipment & materials, consultancy…

In most non-capital intensive projects, project costs are strongly labour driven

Project cost estimation techniques Bottom-up: estimate resources

required for each activity and sum them all Analogous: use previous similar

projects as basis or check for costing

Clear resource planning and explicit argumentation are key to defendable and controllable budgets Often a “management reserve” is

added to cover for unexpected events

Project costs Cost estimation

After: Davidson Frame, 1987

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Key Questions when Planning for the Resources

Is there any overload resource/person?

Is there any underused or not taken into account resource/person?

Is there any single person owning two parallel tasks

Do the people have the appropriate knowledge and skills for the task they responsible for?

Use GANTT charts to analyse how the resources are assigned and used

Results

Resources Time

Trade-Offs

52

Project Optimization

Can the SCOPE of the project be reduced?

Can the TASK or PHASE sequence be changed?

Can more RESOURCES be obtained?

Can the END of the project be postponed?

Is there ANY OTHER WAY (better, more creative, etc.) TO DO THE JOB to achieve the same final result?

Planning

TasksScheduleResources

The outcome of the planning process is the Base Plan which is the reference document that will be

used for the project execution.

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4Planning

4Planning

3Communication

3Communication

0Identific

ation and

selection

0Identific

ation and

selection

6Closure

6Closure



7Integrati

on

7Integrati

on

1Definition

and analysis

1Definition

and analysis

5. Monitoring and control

Managing the Project Progress

Id Nombre de tarea Duraci C omi e

1 Portal Espai PyME 24 d 01 j un

2 Presentaci ó n del proyec to 1 d 01 j un

3 Fase I 24 d 01 jun

4 Diseño del P ortal (fase I) 2 d 01 jun

5 Propues ta de servic ios verti cal es 1 d 01 j un

6 A náli si s de los serv i ci os 1 d 01 j un

7 E s tudi o de v i abil idad reutili zac ión plataforma 1 d 01 j un

8 Es tru ctura de serv ic ios y conteni dos del P ort 1 d 02 j un

9 Diseño gráfico del P ortal 15 d 05 jun

10 Diseño de l a Reticula y E lementos bás icos 3 d 05 j un

11 Diseñ o de la Marca espac iopyme.com 8 d 05 j un

12 Diseñ o de es ti lo y c riterios de la web 8 d 08 j un

13 Correcc iones y detall es 4 d 20 j un

14 Desarrollo del Portal (Fase I) 22 d 05 jun

15 Ins ta lac ión entorno desarrollo 1 d 05 j un

16 Rev is ión de la i nfraestrucutra de producci ón 1 d 06 j un

17 Adap taci ón de l as comuni cac iones 2 d 07 j un

18 Cons trucc ión del P ortal de enlaces 10 d 08 j un

19 Maquetac ión del P ortal 10 d 08 j un

20 Prueb as de func ional idad 2 d 22 j un

21 Camb io de entorno 2 d 22 j un

22 P iloto y aprobaci ón 1 d 26 j un

23 Paso a producci ón 1 d 27 j un

24 S upe rv is ión del s is tema y postproducci ón 5 d 28 j un

BT;Cambra;Caixa; IBM

BT;Cambra;Caixa;IBM

BT

BT

BT

S uma

S uma

S uma

S uma

BT

BT

BT

BT

BT

BT

BT

Cambra;Caixa;IBM ;BT

BT

BT

M V D M J S L M V D M J S L M V D M Jay '00 05 jun '00 12 jun '00 19 jun '00 26 jun '00 03 jul '00

Objectives

Base Plan

Planning

Do workDo work

Projecte StateProjecte State

Comparison against base plan

Comparison against base plan

Take actionTake actionDATE 20/04/02# Product Activity Deliverable Owner Opened Reviewed To be

reviewedD ue date Status

1 1-Eiffel CA Xerox as a competitor in GA Montse 19-abr-01 23-abr-01 Closed2 1-Eiffel CA 3min to sell . Revision Maria 13-jul-01 23-jul-01 Closed3 1-Eiffel CPL Fill CPL inf ormation Nuri 05-dic-00 02-abr-01 02-jul-01 18-jun-01 Problem4 1-Eiffel CPL Printers wit h transparent covers in CPL Nuri 23-jul-01 23-jul-01 Closed5 1-Eiffel CPL Tray 2 UPC code David 23-jul-01 23-jul-01 On track6 1-Eiffel CPL Discontinue ColorPro CAD/GA Alex M 20-jun-01 01-oct-01 08-oct-01 20-jul-01 Open7 1-Eiffel DOL Eiffel web copy Elena S 20-nov-00 02-abr-01 02-may-00 Closed8 1-Eiffel DOL Eiff el E-communication e-mail Elena S 20-nov-00 02-abr-01 02-may-00 Closed9 1-Eiffel EMU's C hanges from Japan. Status Teresa 16-abr-01 18-abr-01 23-abr-01 Closed

10 1-Eiffel EMU's Ship several nameplates with EMUs Teresa 19-abr-01 23-abr-01 Closed11 1-Eiffel EMU's Localized RIPs with EMUs. Process Teresa 19-abr-01 23-abr-01 14-may-01 Open12 1-Eiffel EMU's Light booth for demos Javier 30-mar-01 09-abr-01 21-may-01 Closed13 1-Eiffel EMU's When localized version of H D rip David 27-abr-01 28-may-01 Closed14 1-Eiffel EMU's When units wi thout pens could be availaTeresa 11-may-01 14-may-01 Closed15 1-Eiffel EMU's Regulación NOM (méjico) para EMUs David 11-may-01 14-may-01 21-may-01 Closed16 1-Eiffel EMU's Support of D igital printing and IPMEX Teresa 25-may-01 25-jun-01 Closed17 1-Eiffel EMU's 3 uni ts for NPI event early Aug Teresa 13-jul-01 16-jul-01 Closed18 1-Eiffel EMU's 5 additional unit s for partners in Print01 Teresa 13-jul-01 16-jul-01 Closed19 1-Eiffel EMU's Units for Print 01. Aug 10th Teresa 13-jul-01 30-jul-01 Closed20 1-Eiffel EMU's Transparent covers Teresa 23-jul-01 23-jul-01 Closed21 1-Eiffel EMU's Support plan for EMUs Carles 23-jul-01 23-jul-01 Closed22 1-Eiffel EMU's Additional units for Europe (30) Teresa 23-jul-01 23-jul-01 Closed23 1-Eiffel EMU's Availability of 50ps EMUS David 24-sep-01 24-sep-01 Closed24 1-Eiffel ICO Q&A Albert 07-jun-01 11-jun-01 Closed25 1-Eiffel ICO Accessories and fact sheet s Albert 07-jun-01 11-jun-01 Closed26 1-Eiffel ICO Product presentation Albert 07-jun-01 18-nov-01 Closed27 1-Eiffel ICO 4s document David 07-jun-01 11-jun-01 Closed28 1-Eiffel ICO Technology notables Albert 07-jun-01 25-jun-01 Closed29 1-Eiffel ICO Pricing sheets David 07-jun-01 25-jun-01 Closed30 1-Eiffel ICO Messaging matrix David 07-jun-01 25-jun-01 Closed31 1-Eiffel ICO Demo templates filled David 11-jun-01 30-jul-01 15-jun-01 Closed32 1-Eiffel Intro Integration with BPD products David 14-nov-00 26-mar-01 26-mar-01 Closed33 1-Eiffel Intro 1 month delay of between ICD and BPD Javier 19-abr-01 07-may-01 Closed34 1-Eiffel intro LAB 01 organization Javier 20-abr-01 07-may-01 14-may-01 Closed35 1-Eiffel Intro Map of events Javier 11-may-01 14-may-01 Closed36 1-Eiffel Intro Integration in IPS initiatives Javier 28-feb-01 21-may-01 18-jun-01 Closed37 1-Eiffel Intro D eliverables for ICO-Integration Javier 02-jun-01 11-jun-01 Closed38 1-Eiffel Intro Selection of early birds names Javier 04-jun-01 25-jun-01 Closed39 1-Eiffel Intro Direct mail to GA association Elena S 03-may-01 14-may-01 25-jun-01 Closed40 1-Eiffel Intro Japan push in small format Javier 23-mar-01 02-abr-01 09-jul-01 Closed41 1-Eiffel Intro Availability date Javier 13-jun-01 02-jul-01 Closed42 1-Eiffel Intro Trade shows process Javier 11-abr-01 18-abr-01 16-jul-01 Closed43 1-Eiffel Intro CIP4 @ Print 01 Enric 02-jul-01 16-jul-01 Closed44 1-Eiffel intro Who monitors ink and supplies orders Javier 03-jul-01 16-jul-01 Closed45 1-Eiffel Intro Attendance to Print 01 Javier 16-abr-01 23-abr-01 30-jul-01 Closed46 1-Eiffel Intro Vacations calendar integration Javier 03-jul-01 30-jul-01 Closed47 1-Eiffel Intro Availability of 50ps Javier 13-jul-01 27-ago-01 Closed48 1-Eiffel Intro Intervention of Ignacio/Enrique in Print01Javier 23-jul-01 27-ago-01 Closed

Tracking sheet

54

Monitoring & ControlGood control systems are simple and focused to the

relevant details to enable decision making. This implies to concentrate on the date related to:

Project plan status:• Schedule• Costs• Specifications (Quality)

Pending issues or problemsRisks



4Planning

4Planning

3Communication

3Communication



6Closure

6Closure



7Integration

7Integration

1Definition

and analysis

1Definition

and analysis

2. Leadership and Team building

55

2. Leadership and Team building

Coming together is a beginning,

keeping together is progress,

working together is success.By Henry Ford

Project Management

Tecnicalknowledge

Management

Leadership

56

Leadership

Based on the behavior Leadership styles: Task Behavior oriented or Relationship Behavior oriented

Situational LeadershipIt depends on the specific “context” where leadership is applied

High

Low

Rel

atio

nshi

pB

ehav

ior

HighTask Behavior

Situational leadership theory(P. Hersey i K. Blanchard)

Participating Selling

Delegating Telling

57

High

Low

Rel

atio

nshi

pB

ehav

ior

HighTask Behavior


Participating Selling

Delegating Telling

MATURITY OF FOLLOWERSMature Immature

M4 M3 M2 M1

Leadership & Team Dynamics

FORMING

STORMING

NORMING

PERFORMING

The ordinary project team is a complicated creature. Members must work out personal differences, find strengths on which to build, balance commitments to the project against the demands of their everyday jobs.

The duration and intensity of these stages vary from team to team.

After: : P. Scholtes 1988

58


According to the Situational Leadership Model there is no single "best" style of leadership.

Effective leadership is task-relevant, and the most successful leaders are those who adapt their leadership style to the ability and willingness of the individual or group they are attempting to lead or influence.

Effective leadership varies, not only with the person or group that is being influenced, but it also depends on the task, job or function that needs to be accomplished.

Team?

59

Managing is...

... obtaining results through the team members!

1. ... require different types of managers (leaderships)

Different types of organizations ...

60

FunctionalOrganizationFunctional

Organization

ProjectizedOrganizationProjectized

Organization

Project OrganizationStructures for project organization

ChiefExecutive

ChiefExecutive

Functional Manager

Functional Manager

ProjectLeaderProjectLeader

Functional Manager

Functional Manager

Functional Manager

Functional Manager

Project Team

SteeringCommittee

SteeringCommittee

Key Actors in the Project StructureKey Actors in the Project Structure

Project Leader

Project Team

Steering Committee (often include some Functional Managers)

Weak Matrix Organization

Balanced Matrix

Organization

Strong Matrix Organization

Projectized Organization

Functions' authority

Project manager's authority

Functional Organization

Matrix Organizations are the most common Project Structure Nowadays.

Projectized Organizations (“Purely Project Oriented”) are difficult in industrial companies. Function expertise is complex to maintain.

Functional Organization (“Purely Function Oriented”) are less effectives in Project Execution

Current Approach

Project Organization

Structures for project organization

61

Chief Executive

FunctionalManager

Staff

Staff

Staff

FunctionalManager

Staff

Staff

Staff

FunctionalManager

Staff

Staff

Staff

ProjectCoordination

Functional OrganizationFunctional Organization



Chief Executive

ProjectManager

Staff

Staff

Staff

ProjectManager

Staff

Staff

Staff

ProjectManager

Staff

Staff

Staff

ProjectCoordination

Projectized OrganizationProjectized Organization



62

Chief Executive

FunctionalManager

Staff

Staff

Staff

FunctionalManager

Staff

Staff

Staff

FunctionalManager

Staff

Staff

Staff

ProjectCoordination

Weak Matrix OrganizationWeak Matrix Organization



Chief Executive

FunctionalManager

Staff

Staff

ProjectManager

FunctionalManager

Staff

Staff

Staff

FunctionalManager

Staff

Staff

Staff

ProjectCoordination

Balanced Matrix OrganizationBalanced Matrix Organization



63

Chief Executive

FunctionalManager

Staff

Staff

Staff

FunctionalManager

Staff

Staff

Staff

FunctionalManager

Staff

Staff

Staff

Manager ofProject

Managers

ProjectManager

ProjectManager

ProjectManager

ProjectCoordination

Strong Matrix OrganizationStrong Matrix Organization



Towards Project-based organizationTowards Project-based organization

Functional

Matrix

ProjectizedWeak Matrix

Balanced

Matrix

Strong

MatrixProject

Manager’s Authority

Little or none LimitedLow to

moderateModerate to

highHigh

Resource Availability

Little or none LimitedLow to

moderateModerate to

highHigh

Who controls the budget

Functional Manager

Functional Manager

MixedProject

ManagerProject

Manager

Project Manager’s

RolePart-time Part-time Part-time Full-time Full-time

Project OrganizationStructures for project organization

64

The matrix organization: roles

What is to be done?

When will the task be done?

Why will the task be done?

How much money is available to do the task?

Evaluation: How well has the total project been done?

Project ManagerProject Manager Functional ManagerFunctional Manager

How will the task be done?

Where will the yaks be done?

Who will do the task?

Evaluation: How well has the functional input been integrated into the project?

After: David I. Cleland & Lewis. R. Ireland

FunctionalEffort

ProjectEffort

WorkPackage

The focus of authority and responsibility is at the project-function interface, and centres around the project work package.


The matrix organization: key success factors

Appropriate empowermentAppropriate empowerment

Explicit authority, responsibility and accountability for the project and each work

package

Explicit authority, responsibility and accountability for the project and each work

package

Fluent communicationFluent communication

People understand and accept their obligations to communicate

People understand and accept their obligations to communicate

Commitment from functional managers

Commitment from functional managers

To provide resources and support the project needs

To provide resources and support the project needs

Understanding interdependent roles

Understanding interdependent roles

Functional managers and project managers working together to support project purposesFunctional managers and project managers

working together to support project purposes

Confidence in matrix modelConfidence in matrix model

Everyone see the matrix model as the best way to share scare resources: “this is simply the way

that we do things around here”

Everyone see the matrix model as the best way to share scare resources: “this is simply the way

that we do things around here”


65



4Planning

4Planning

3Communication

3Communication



6Closure

6Closure



7Integration

7Integration

1Definition

and analysis

1Definition

and analysis

3. Communication

Communication

Team communication can be:

Internal to the organization:

Upwards (Top management, Sponsor, others): Normally project monitoring and control

Inside: specific for the project team

Horizontal: to other organizations related or not to the project. Depending on the relationship, this may be collaborative or for information purposes.

External a la organization: To the stakeholders deemed appropriate. From customers, suppliers, public organizations, etc.

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Internal project report: Objetives Current statusPlanning summaryIssues & risks current and futureComunication to stakeholders

Frequent meetings Continuous contact

Keep bureaucracy to minimum, but ensure to keep a strong communication and transparency

Teleconference/Videoconference

E-mail

Team Members Communication

Project Communication Plan

67



4Planning

4Planning

3Communication

3Communication

0Identific

ation and

selection

0Identific

ation and

selection

6Closure

6Closure



7Integrati

on

7Integrati

on

1Definition

and analysis

1Definition

and analysis

6. Closure

Project ClosureThe closure phase is very important in a project’s lifecycle. Some

elements to consider in a project closure are:

The project isn’t over with the technical delivery of the final product.

Products must be fully tested and accepted.

Documentation need to be archived.

A smooth hand-over needs to be arranged…. A good final presentation and relationship follow-up may help sell more projects.

The project should be evaluated to capture lessons and allow future projects to be even more successful.

The project team needs to find “closure”.

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... and assessment

Postmortem analysis

The Post-mortem Analysis

Identify:What went well

What went wrong

Identify:What went well

What went wrong

Process Document

Objective• Inclusive (including all players)• Self-critical (emotions out)• Professional (impersonal)• Based on facts (with documents and data)• Brief (both process and document)

• Inclusive (including all players)• Self-critical (emotions out)• Professional (impersonal)• Based on facts (with documents and data)• Brief (both process and document)

Characteristics

• Meeting set up considerations

• Prepare post-mortem meeting

• Post-mortem meeting

• Post-mortem document

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4Planning

4Planning

3Communication

3Communication

0Identificat

ion and selection

0Identificat

ion and selection

6Closure

6Closure



7Integration

7Integration

1Definition

and analysis

1Definition

and analysis

7. Integration

Management of a set of projects with a common end objective

Source: Association for Project Management

Program ManagementProgram Management Project Portfolio ManagementProject Portfolio Management

Management of a set of projects that do not share a common

end objective

Project Program/Portfolio

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Case Study: “Reson: Making Development Teams

Accountable for Short Project Cycles”.

Project OrientedOrganitzations (POO)

Non críticalActivity

CriticalActivity

Feeding Buffer

CriticalActivity

CriticalActivity

Project Buffer

Critical Chain Project Management

CCPM

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4Planning

4Planning

3Communication

3Communication



6Closure

6Closure



7Integration

7Integration

1Definition

and analysis

1Definition

and analysis

0. Identification and Selection

Project Management

MSc SELECT Program

Stockholm, September 28th and 29 2016

Fall Seminar 2016

Jordi Vinaixa - @JordiVinaixa - [email protected]

The End

DP SELECT FallSeminar 2016 2 Prtcpnts - KTH...management technique? 3 Origins ... Project Management...

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