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Project Management

Today the competition in the business world has grown to an extent where you need to deliver the best products and services in order to sustain your business.

To meet the demands of modern businesses you need

to prioritize the projects in hand, ensure smooth project execution and,

develop quality products in the stipulated time and within the allocated budget.

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Project Management

To achieve these goals you must use the latest project management techniques that enable

you to control a project from start to finish And, motivate project teams to deliver best results.

For smooth project execution it is important that

the student understand the basic concepts related to a project such as the different phases in project development and,the factors affecting a project

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What is a Project?

A project is a temporary endeavor undertaken to create a unique product or service

A project is considered temporary since once the projects objectives are met, the project team will break-up and go onto other projects.

The goal of a project is to create something new, or unique.

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What is a Project Life Cycle?

a project lifecycle models how a project is planned, controlled and monitored from its inception to its completion

The level of formality and complexity of the lifecycle for each project is constrained by number of factors, including budgetary constraints, project team experience, project size, and project complexity.

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The Project Life Cycle: Four Basic Phases

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What is Project Management?

Project management is the application of knowledge, skills, tools and techniques to a broad range of activities in order to meet the requirements of the particular project

A project is a temporary endeavor undertaken to achieve a particular aim

Project management knowledge and practices are best described in terms of their component processes.

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Elements of Project Management

All projects have three basic elements: tasks, resources and, time.

These are interrelated and any

change in one has an effect on the other two.

Whenever you make any changes, the affect of those changes will become instantly visible

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Elements of Project Management-Tasks

Think of tasks as individual pieces of work which

need to be done. Some typical tasks may include:

Reports to management Pieces of code for an application Project definition documents Any small (or large) item that contributes to

reaching the state goal of the project

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Elements of Project Management-Resources

Resources are anything used to meet the stated

goals of the project:

People Machinery Money

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Elements of Project Management-Time

For time you originally start with an estimate (also know as a guess) on how long it may take to reach the stated goal of the project.

As the project progresses, the time estimate becomes more solid as each piece of the project is examined and a more firm estimate as to how long it'll take to produce the individual pieces

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Elements of Project Management

These three pieces are interrelated.

If you think of the three as a triangle, in order for the triangle to remain balanced, any change on one side required changes on the other two.

For example, if a new task is added to the project, you'll need a resource to work on this new task, and the new task may (or may not) affect the time side of the triangle

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Project Management Process Groups

The PM processes can be placed into five Process Groups: Initiating, Planning, Executing, Controlling and Closing

Planning

Controlling

Initiating

Executing

Closing

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Project Management Knowledge Areas PM could be categorized into nine Knowledge

Areas Project Integration Management, Project Scope Management, Project Time Management, Project Cost Management, Project Quality Management, Project Human Resource Management, Project Communications Management, Project Risk Management, and Project Procurement Management

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Initiating a Project

Project should be selected on: Feasibility

Knowledge availability Risk

Merit Impact to organization

Cost ROI

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Initiating a Project The objectives of Initiating a Project are to:

Agree whether or not there is sufficient justification to proceed with the project

Establish a stable management basis on which to proceed

Document and confirm that an acceptable Business Case exists for the project

Ensure a firm and accepted foundation to the project prior to commencement of the work

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Initiating a Project

Agree to the commitment of resources for the first stage of the project

Enable and encourage the Project Board to take ownership of the project

Provide the baseline for the decision-making processes required during the project's life

Ensure that the investment of time and effort required by the project is made wisely, taking account of the risks to the project

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Planning a Project

Writing the project plan provides a structured framework for thinking about how the project will be conducted, and for considering the project risks.

Ultimately you cannot write a plan until you have a plan.

Having a comprehensive plan may require the involvement of a range of functional experts, and it often requires the involvement of decision-makers.

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Planning a Project

A significant value of writing a project plan is the process rather than the outcome.

It forces the players to think through their approach and make decisions about how to proceed.

A project plan may require making commitments, and so it can be both a difficult and important part of establishing the project

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Planning a Project

The project plan provides a vehicle to facilitate executive and customer review.

It should make major assumptions explicit and provide a forum for communicating the planned approach and for obtaining appropriate approvals

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Planning a Project

If the project team includes diverse organizations or ambiguous lines of authority and communication, it may be useful to write a Project Management Plan to describe the roles and responsibilities of the various organizational entities.

It can also be used to communicate management systems and procedures to be used throughout the project

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Planning a Project

The requirements definition and specifications tell us what the project needs to accomplish.

The Project Plan should tell us how, when, by whom, and for how much.

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Planning a Project

If the project will be challenging, it is important to define and control the scope, schedule and cost so they can be used as baselines for tracking progress and managing change.

Defining the project management triangle is the essence of a useful project plan

http://www.hyperthot.com/pm_prin2.htmhttp://www.hyperthot.com/pm_prin2.htm

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The Project Management Triangle

Project management control can only be achieved when cost, schedule, and technical objectives are clearly documented, realistically derived, and managed deliberately

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The Project Management Triangle The planning process should result in major parties to the

project having a clear sense of the cost, schedule, and technical objectives.

The establishment of these three should attempt to define the possible.

The projects technical objectives should be derived from a clear understanding of the business requirements.

Project costs should be realistic and affordable.

The schedule should be achievable and appropriate for the business needs

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different Project Plans A large complex project may have many separate plans such

as: Business Plan, Project Plan, Test Plan, Acquisition Plan, Quality Assurance Plan, Integrated Logistics Support Plan, Public Relations Plan, Training Plan, Software Development

Plan, Project Management Plan, Marketing Plan, Risk

Management Plan, Process Development Plan, Systems Engineering

Management Plan, Staffing Plan, Communications Plan, Configuration Management Plan, Data Management Plan, Implementation Plan, Customer Service Plan, and so on.

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Planning and Establishing the Project Baseline

When cost, schedule, and requirements definition are acceptable to the organization, a project planning baseline must be established !

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What happens during Project Execution?

Once the baseline plan has been developed, approved, and the necessary resources put in place, the project moves into the execution phase

The project managers focus now shifts from planning to executing and controlling according to the commitments made in the project plan

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What happens during Project Execution?

During project execution, the project manager is responsible for coordinating data collection, monitoring, and reporting project activities.

Information should be made available to accurately identify issues and problems early so that project risks can be minimized.

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Project Control

The control of the project involves processes that need to be in place to ensure that the project progresses according to the plan.

During tracking, monitoring, and reviewing, the project team assesses the current state of the project

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Project Control Processes

Review the completed activities Identify milestones reached Identify problems or issues such as a change

request Update project schedule and progress

information Update budget and calculate variances Take corrective actions, if necessary and,

decide if the plan needs to be adjusted or changed

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Plan Adjustment

A plan adjustment is a change to the internals of a plan, such as adding resources or changing the sequences of activities, that does not change the overall project scope, schedule or cost.

A plan adjustment does not require the approval of all the

stakeholders, only those directly affected. A plan change involves a change in scope, quality, schedule or

cost that must be approved by all the stake holders. Finally, project status and any action taken or recommended

need to be communicated regularly to the stakeholders including team members, management and the users.

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Project Control

Too many times the project team is busy getting on with completing the project and not spending the time and energy to understand the status of the project and to identify problems

Then once a problem emerges, the team acts too slowly to resolve the root of the problem.

The purpose of the project management control process is to identify potential problems early and present them from happening, or if that is not possible, minimizing their impact.

Preventing problems is far easier and less costly than solving them.

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P.M.-Potential Problems

Lack of good data on activity progress. Inadequate definition of requirements. Frequent and uncontrolled changes to the

baseline requirements. Poor time and cost estimates Difficulties in concluding tasks and projects,

because of lack of completion criteria Frequent replacement of personnel. Inadequate tracking and directing of project

activities

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P.M.-Potential Problems

One of the most common problems is that the project manager and possibly the full project team, is unaware of the existence of a major problem at a stage when it could be contained and eliminated.

This can be resolved by the consistent sharing of information and taking action based on that information.

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Closing and Maintenance

Closing includes the formal acceptance of the project and the ending thereof.

Administrative activities include the archiving of the files and documenting lessons learned.

Maintenance is an ongoing process, and it includes: Continuing support of end users Correction of errors Updates of the software / product over time

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Project Evaluation

Evaluation is an iterative process that focuses on the product's use rather than its features and functions.

Done early enough it can discover design faults and reduce the costs of having to rebuild everything.

It can reduce the need for a technical help desk and training costs, and can increase user satisfaction.

Evaluation can also reduce over design by making you aware of what the user really needs

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Project Evaluation

There is a range of different types of evaluation that can be applied to a product.

This range includes but is not limited to the following: usability expert review design evaluation prototype evaluation.

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Project management is chiefly associated with planning and managing change in an organization, but a project can also be something unrelated to

business - even a domestic situation, such as moving house, or planning a wedding!

Projects can be various shapes and sizes, from the small and straightforward to extremely large and highly complex.

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In organizations and businesses, project management can be concerned with anything, particularly introducing or changing things, in any area or function, for example: people, staffing and management products and services materials, manufacturing and production IT and communications plant, vehicles, equipment storage, distribution, logistics buildings and premises finance, administration, acquisition and divestment purchasing sales, selling, marketing human resources development and training customer service and relations quality, health and safety, legal and professional technical, scientific, research and development new business development and anything else which needs planning and managing within

organizations.

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What is not a Project? Emergency response to operations

problems Callouts Repairs and troubleshooting

Routine operations support Maintenance of equipment Minor modifications and tuning of

equipment

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R Russel Timothy

Project Management responsibilities

Manage the work involved in a project in terms of: Competing demands for scope, time,

cost, risk, and quality

Stakeholders with different needs and expectations

Identified requirements Russel Timothy, Assoc.Professor

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Template for PM specification (Initiation)

Describe purpose, aims and deliverables.

State parameters (timescales, budgets, range, scope, territory, authority).

State people involved and the way the team will work (frequency of meetings, decision-making process).

Establish 'break-points' at which to review and check progress, and how progress and results will be measured.

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Classical Management Vs Project Management

Classical management usually has Planning Organizing Staffing Controlling Directing

Project management is the planning, organizing, directing, and controlling of company resources for a relatively short-term objective that has been established to complete specific goals and objectives

We may notice that the staffing function has been missing as the project manager does not staff the project

Staffing is a line responsibiity Russel Timothy,

Assoc.Professor

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Project duration

Not all industries have the same definition for a short-term project In engineering, the project might be for six

months or two years In construction, three to five years

Long-term projects, which consume resources full-time are usually set up as a separate division

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Now we know the project manager must control company resources within time, cost and performance

Most companies have 6 resources, Man Manpower Equipment Facilities Materials Information / technology

The project manager does not control any of these resources except money project budget

Resources are controlled by the line managers, functional managers or resource managers

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Successful project management strongly depends on A good daily working relationship between the project manger and those line

managers who directly assign resources to projects

The ability of functional employees to report vertically to their line manager at the same time that they report horizontally to one or more project managers

We see that functional employees who are assigned to a project manager still take technical direction from their line mangers

Employees who report to multiple managers will always favour the manager who controls the money Thus most project managers appear to always be at the mercy of the line

managers!

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In classical management, the manager does not necessarily perform things for himself, but accomplishes objectives through others in a group situation

In project management, the project manager actually works for the line managers, not vice versa. Many executives have a tendency to put a halo around the head of the

project manager and give him a bonus at project termination, when, in fact, the credit should really go to the line managers, who are continually pressured to make better use of their resources.

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Project managers depend on line managers.

When the project manager gets in trouble, the only place he can go is to the line manager because additional resources are almost always required to alleviate the problems

When a line manager gets in trouble, he usually goes first to the project manager and requests either additional funding or some type of authorization

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who contributes to profits the line or project manager? Project managers feel that they control all project profits because they

control the budget

Line managers argue that they must staff with appropriately budgeted-for-personnel, supply the resources at the desired time, and supervise the actual performance

Actually, both the vertical and horizontal lines contribute to profits

These type of conflicts can destroy the project management structure

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Project management is more behavioral than quantitative

Effective project management requires an understanding of Quantitative tools and techniques Organizational structures Organizational behavior

OB is important because the functional employees at the interface position find themselves reporting to more than one boss a line manager and a project manager, for each project they are assigned to

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PMs role PM is responsible for coordinating and

integrating activities across multiple, functional lines

Thus, he needs strong communicative and interpersonal

skills

Must become familiar with the operations of each line organization

Should have a general knowledge of the technology

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Although the project organization is a specialized, task-oriented entity, it cannot exist apart from the traditional structure of the organization

To be an effective PM, an individual must have management as technical skills

It is found that it is usually easier to train engineers rather than businessmen to fill project management positions Because the engineers often consider their careers limited in the functional

discipllines, sometimes look PM and PE as careers.

But becoming a manager entails learning about psychology, human behavior, OB, interpersonal relations and communications.

The average age of PM in industry is between 30 & 40.

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Because an individual often makes his most profitable contribution to society between 30 & 40. If they dont they may be severely limited in career growth.

When is an individual most concerned about money? It is not between 20 & 30 because coming out of college, any money looks

good!

It is not between 40 & 50 because individuals are fairly set in their ways and living styles

But between 30 & 40, individuals is thinking about financial security, the future, a new home, travel and educating his children

The younger individual is willing to take more risks than the older individual in order to meet the project objectives

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The age of the PM varies from industry to industry Data processing PMs are usually younger R & D PMs may span the entire range because of

the technology requirements

Manufacturing & Construction PMs are often older because their experience is essential

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The lowest turnover rates of any profession in the world are in PM and PE!

In a project environment, the PM and PE get to see their project from birth to death

Work challenge and other non-monetary rewards are becoming increasingly important today

The PM is a general manager & gets to know the total operation of the company

Thats why PM is often used as a training ground to prepare future general managers!

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PM Risks PM is often recognized only as a high-salaried, highly challenging

position!

Some project management positions may require not only a 60 hour week, but also extensive time away from home

When a PM falls in love with his job than his family, the result is lack of friends, a poor home life and possibly a divorce!

Example : during the birth of the missile and space programs, companies estimated that the divorce rate among PM and PE was twice the national average!

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It is found from some workaholic PMs: Every Friday he thinks that there are only two

more working days until Monday

At 5.00pm. he considers the working day only half over

He has no time to rest or relax He always takes home work from the office He takes work with him on vacations.

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Do we need PM? The following questions give some insight to

whether we need PM or not? Are the jobs complex? Are there dynamic environmental considerations? Are the considerations tight? Are there several activities to be integrated? Are there several functional boundaries to be

crossed?

If any of these is answered YES, the PM is necessary!

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Not all industries need PM

Several industries with simple tasks, whether in a static or a dynamic environment, do not need PM

Manufacturing industries with slowly changing technology do not need PM, unless theres a requirement for special projects

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R Russel Timothy

On the micro level, virtually all organizations are either Marketing Engineering, or Manufacturing driven

But on the macro level, the organizations are either project or non-project driven

In a project-driven organization, such as construction or aerospace, all work is characterized through projects, with each project as a separate cost center having its own profit & loss statement The total profit to the corporation is simply the summation of the profits on all

profits.

Everything centers around the projects

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In the non-project-driven organization, such as low-technology manufacturing (for ex.weaving with non-automated looms), profit and loss are measured on vertical or functional lines

In this, projects exist merely to support the product lines or functional lines

Priority resources are assigned to the revenue-producing functional line activities rather than the projects

It may have a steady stream of projects all of which are usually designed to enhance the manufacturing operations

Some of the projects may be customer-requested such as, Introduction of process changes to enhance the final product Introduction of process change concepts to enhance product reliability

But this has the tip-of-the-iceberg syndrome

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R Russel Timothy

Tip-of-the-iceberg!

On the surface, all we see is a lack of authority for the project manager.

But beneath the surface we see the causes; There is excessive executive meddling due to lack of

understanding of project management, which, in turn, resulted from an inability to recognize the need for proper training.

Many of these problems surface much later in the project and result in a much higher cost to correct as well as increasing project risk

Russel Timothy, Assoc.Professor

Project ManagementProject ManagementWhat is a Project?What is a Project Life Cycle?Slide Number 5What is Project Management?Elements of Project Management Elements of Project Management-TasksElements of Project Management-ResourcesElements of Project Management-TimeElements of Project ManagementProject Management Process GroupsProject Management Knowledge AreasInitiating a ProjectInitiating a ProjectInitiating a ProjectPlanning a ProjectPlanning a ProjectPlanning a ProjectPlanning a ProjectPlanning a ProjectPlanning a ProjectThe Project Management TriangleThe Project Management Triangledifferent Project PlansPlanning and Establishing the Project Baseline What happens during Project Execution?What happens during Project Execution?Project ControlProject Control ProcessesPlan AdjustmentProject ControlP.M.-Potential ProblemsP.M.-Potential ProblemsClosing and Maintenance Project EvaluationProject EvaluationSlide Number 38Slide Number 39What is not a Project?Project Management responsibilitiesTemplate for PM specification (Initiation)Classical Management Vs Project ManagementProject durationSlide Number 45Slide Number 46Slide Number 47Slide Number 48Slide Number 49Slide Number 50PMs roleSlide Number 52Slide Number 53Slide Number 54Slide Number 55PM RisksSlide Number 57Do we need PM?Slide Number 59Slide Number 60Slide Number 61Tip-of-the-iceberg!