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Chapters 1&2 Overview 1 Chapters 1&2 Overview 1

Project Management Institute • A non-profit organization dedicated to achieving the state of the Project Management Institute • A non-profit organization dedicated to achieving the state of the art in the profession of project management • Established in 1969, Pennsylvania • Over 100, 000 members worldwide • www. pmi. org • www. pmineo. org • PMP: Project Management Professional 2

Project Management Body of Knowledge (PMBOK) • “The PMBOK is the sum of knowledge Project Management Body of Knowledge (PMBOK) • “The PMBOK is the sum of knowledge within the profession of project management. ” – Generally recognized: knowledge and practice are applicable to most projects, most of the time – Provides a common lexicon for discussing, writing, and applying project management 3

 • Used for professional development programs: – Project Management Professional (PMP) certification – • Used for professional development programs: – Project Management Professional (PMP) certification – PMI Registered Education Providers – Accreditation of educational programs • We will follow PMBOK standards and use it as a reference 4

What is a Project? • It is a temporary endeavor undertaken to create a What is a Project? • It is a temporary endeavor undertaken to create a unique product, service or result. 5

Project Characteristics • Have a specific objective (which may • • • be unique Project Characteristics • Have a specific objective (which may • • • be unique or one-of-a-kind) to be completed within certain specifications Have defined start and end dates Have funding limits (if applicable) Consume human and nonhuman resources (i. e. , money, people, equipment) 6

Project Characteristics • Be multifunctional (cut across several • • functional lines) Technological sequence, Project Characteristics • Be multifunctional (cut across several • • functional lines) Technological sequence, developing in steps, continuing by increments (progressive elaboration) Numerous Tasks At all levels of the organization Takes few weeks to several years 7

Projects and operations differ in that operations are ongoing, but projects are temporary and Projects and operations differ in that operations are ongoing, but projects are temporary and unique. 8

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Examples of Projects • Development of a new product or service • Organizational change Examples of Projects • Development of a new product or service • Organizational change • Updating Information system in an organization • Construction of buildings, dams, highways • Running a political campaign • Implementing a new business procedure • Weddings, funerals, birthdays, etc. 10

What is Project Management? • Project management is the application of knowledge, skills, tools, What is Project Management? • Project management is the application of knowledge, skills, tools, and techniques to project activities to meet project requirements. 11

Project Context • Program – Group of related projects • Portfolios – Collection of Project Context • Program – Group of related projects • Portfolios – Collection of projects or programs • Subprojects – Manageable components (summary tasks) • Project Management Office – Organizational unit to centralize and coordinate the management of projects 12

Programs • Air Force – The integrated, time-phased tasks necessary to accomplish a particular Programs • Air Force – The integrated, time-phased tasks necessary to accomplish a particular purpose. • NASA – A relative series of undertakings that continue over a period of time (normally years) and that are designed to accomplish a broad, scientific or technological goal in the NASA long-range plan (lunar and planetary exploration, manned spacecraft systems). 13

Project Objectives ST TIM E CO RESOURCES PERFORMANCE/TECHNOLOGY 14 Project Objectives ST TIM E CO RESOURCES PERFORMANCE/TECHNOLOGY 14

Project Necessities • Complete task definitions • Resource requirement definitions (and • • • Project Necessities • Complete task definitions • Resource requirement definitions (and • • • possibly skill levels needed) Major timetable milestones Definition of end-item quality and reliability requirements The basis for performance measurement 15

Resources • • • Money Manpower Equipment Facilities Materials Information/technology 16 Resources • • • Money Manpower Equipment Facilities Materials Information/technology 16

Project Life Cycle • Project managers divide projects into phases to provide better management Project Life Cycle • Project managers divide projects into phases to provide better management and control with links to ongoing operations. 17

PROJECT LIFE CYCLE RESOURCES CONCEPTUAL FEASIBILITY AND DETAILED IMPLEMENTATION PHASE PRELIMINARY PLANNING PHASE CONVERSION PROJECT LIFE CYCLE RESOURCES CONCEPTUAL FEASIBILITY AND DETAILED IMPLEMENTATION PHASE PRELIMINARY PLANNING PHASE CONVERSION OR TERMINATION PHASE Resources Utilized TIME 18

Project Types • New Product Development • Information Systems 19 Project Types • New Product Development • Information Systems 19

New Product Development-I • Introducing and commercializing a new product idea. • High failure New Product Development-I • Introducing and commercializing a new product idea. • High failure rate in developing new products • Stages: – Idea – Preliminary Assessment – Concept – Development – Testing – Trial – Launch 20

New Product Development-II • • High risk Task definitions not clear Delays and reworks New Product Development-II • • High risk Task definitions not clear Delays and reworks are common Project Manager with technical and managerial skills Ex: drug development, P&G, telecommunication, HP, IBM, etc. 21

Information System Projects-I • IS Projects have the following characteristics: – Many, many replications Information System Projects-I • IS Projects have the following characteristics: – Many, many replications – Standard sequence of • Identify user requirements • Design of a system • Training and implementation • Maintenance of the system – Involve computers – Specialist in the IS project team are not as distinctly different as carpentry or electrical work? ? 22

Information System Projects-II • • • High level of uncertainty Benefits of the output Information System Projects-II • • • High level of uncertainty Benefits of the output are not apparent IS Project types: – Maintenance – Conversion – New System Development 23

Classical Management • • • Planning Organizing Staffing Controlling Directing Which of the above Classical Management • • • Planning Organizing Staffing Controlling Directing Which of the above is Usually NOT performed by the project manager? 24

Project Management • Project Planning – Definition of work requirements – Definition of quantity Project Management • Project Planning – Definition of work requirements – Definition of quantity and quality of work – Definition of resources needed • Project monitoring – Tracking progress – Comparing actual outcome to predicted outcome – Analyzing impact 25 – Making adjustments

From Hybrid to Project-Driven 1960 -1990 Hybrid 1990 -2001 Hybrid Traditional Project Management Modern From Hybrid to Project-Driven 1960 -1990 Hybrid 1990 -2001 Hybrid Traditional Project Management Modern Project Management • Entrance via project-driven divisions such as MIS and R&D v Entrance via marketing, sales, engineering and R&D 26

Life Cycle Phases for Project Management Maturity Embryonic Line Management Acceptance Executive Management Acceptance Life Cycle Phases for Project Management Maturity Embryonic Line Management Acceptance Executive Management Acceptance Growth Maturity 27

Life Cycle Phases for Level 2 Project Management Maturity Embryonic • Recognize need Executive Life Cycle Phases for Level 2 Project Management Maturity Embryonic • Recognize need Executive • Recognize benefits • Recognize Line applications Management Acceptance Management Growth • Recognize what Acceptance Maturity must be done 28

Life Cycle Phases for Level 2 Project Management Maturity Executive Management Executive Acceptance Embryonic Life Cycle Phases for Level 2 Project Management Maturity Executive Management Executive Acceptance Embryonic Management • Visible executive Acceptance support Line Management Acceptance • Executive understanding of project management Maturity Growth • Project sponsorship • Willingness to change way of doing business 29

Life Cycle Phases for Level 2 Project Management Maturity Line Management Acceptance • Line Life Cycle Phases for Level 2 Project Management Maturity Line Management Acceptance • Line management Embryonic support • Line management commitment Executive Management Acceptance • Line management education Growth • Willingness to release employees for project management training Maturity 30

Life Cycle Phases for Level 2 Project Management Maturity Growth • Development of a Life Cycle Phases for Level 2 Project Management Maturity Growth • Development of a Executive methodology Embryonic Management • Use of life cycle phases Acceptance • Commitment to planning Line • Minimization of Management Maturity Growth “creeping scope” Acceptance Selection of a project • tracking system 31

Life Cycle Phases for Level 2 Project Management Maturity Embryonic Line Management Acceptance • Life Cycle Phases for Level 2 Project Management Maturity Embryonic Line Management Acceptance • Development Executive of a management Management cost/ schedule control Acceptance system • Integrating cost and schedule control Maturity • Growth Developing an educational program to enhance project management skills 32

WHY USE PROJECT MANAGEMENT ? 33 WHY USE PROJECT MANAGEMENT ? 33

Why is a Project Management System Necessary? 34 Why is a Project Management System Necessary? 34

Benefits Of Project Mgt. Past View • Project management will require more people and Benefits Of Project Mgt. Past View • Project management will require more people and add to the overhead costs. Present View • Project management allows us to accomplish more work in less time and with less people. 35

Benefits Of Project Mgt. Past View • Project management • will increase the amount Benefits Of Project Mgt. Past View • Project management • will increase the amount of scope changes. Project management creates organizational instability and increases conflicts. Present View • Project management will provide better control of scope changes. • Project management makes the organization more efficient and effective. 36

Benefits Of Project Mgt. Past View • Only large projects need project management. Present Benefits Of Project Mgt. Past View • Only large projects need project management. Present View • All projects will benefit from project management. 37

Benefits Of Project Mgt. Past View • Project management Present View • Project management Benefits Of Project Mgt. Past View • Project management Present View • Project management will create power and authority problems. might reduce the majority of the power struggles. • Project management focuses on suboptimization by looking at only the project. allows people to make good company decisions. 38

Obstacles • Project complexity • Customer’s special requirements and • • scope changes Organizational Obstacles • Project complexity • Customer’s special requirements and • • scope changes Organizational restructuring Project risks Changes in technology Forward planning and pricing 39

Multiple Boss Reporting G M SPONSOR PM LM LM LM APM PM = Project Multiple Boss Reporting G M SPONSOR PM LM LM LM APM PM = Project Manager APM = Assistant Project Manager LM = Line or Functional Manager 40

Project Manager • Responsible for planning, implementing, and • • completing the project Who Project Manager • Responsible for planning, implementing, and • • completing the project Who appoints the project manager? Attributes: – – – Technical background Good marketer Good relations with senior manager, team members, and the client Worked in different departments Has positional power 41 Motivated, makes decisions, and good negotiator

Project Champion • Uses power entrepreneurially to enhance project success. – Creative Originator – Project Champion • Uses power entrepreneurially to enhance project success. – Creative Originator – Entrepreneur – Godfather – Project Manager • Usually from upper management • Can provide resources and time for the project 42

Most projects also have a project sponsor which may or may not reside at Most projects also have a project sponsor which may or may not reside at the executive levels of management. 43

Sponsorship Client Scope of Work Project Sponsor Project Manager Project Task Force Master Plan Sponsorship Client Scope of Work Project Sponsor Project Manager Project Task Force Master Plan Project Org. Structure Key Staffing Project Sponsor Policies Project Manager Executive Client Contact Monitoring Execution 44

The Functional Role • The functional manager has the • responsibility to define how The Functional Role • The functional manager has the • responsibility to define how the task will be done and where the task will be done (i. e. , the technical criteria) The functional manager has the responsibility to provide sufficient resources to accomplish the objective within the project’s constraints (i. e. , who will get the job done). 45

Functional Obstacles • Unlimited work requests (especially • • • during competitive bidding) Predetermined Functional Obstacles • Unlimited work requests (especially • • • during competitive bidding) Predetermined deadlines All requests having a high priority Limited number of resources Limited availability of resources Unscheduled changes in the project plan Unpredicted lack of progress 46

Functional Obstacles (continued) • • Unplanned absence of resources Unplanned breakdown of resources Unplanned Functional Obstacles (continued) • • Unplanned absence of resources Unplanned breakdown of resources Unplanned loss of resources Unplanned turnover of personnel 47

Critical Questions • How important is Project Management training ? • Part-time Project Management Critical Questions • How important is Project Management training ? • Part-time Project Management is it good or bad ? 48

Successes vs. Failures Successes Projects MATURITY 2 YEARS EXCELLENCE 5 YEARS Time 49 Successes vs. Failures Successes Projects MATURITY 2 YEARS EXCELLENCE 5 YEARS Time 49

Success • Definition of Success – Primary • • Factors Within Time Within Cost Success • Definition of Success – Primary • • Factors Within Time Within Cost Within Quality Accepted by The Customer 50

Warning Signs • Projects get staffed slowly after being approved • Schedules slip on Warning Signs • Projects get staffed slowly after being approved • Schedules slip on “all” projects • People jump frequently from project to project • Priorities shift constantly • Scheduling a meeting is almost impossible • Engineers split their time among multiple • projects Many dormant projects 51

THE TIP-OF-THE-ICEBERG SYNDROME DELEGATION OF AUTHORITY TO PROJECT MANAGER EXECUTIVE MEDDLING LACK OF UNDERSTANDING THE TIP-OF-THE-ICEBERG SYNDROME DELEGATION OF AUTHORITY TO PROJECT MANAGER EXECUTIVE MEDDLING LACK OF UNDERSTANDING OF HOW PROJECT MANAGEMENT SHOULD WORK LACK OF TRAINING IN COMMUNICATIONS / INTERPERSONAL SKILLS MANY OF THE PROBLEMS ASSOCIATED WITH PROJECT MANAGEMENT WILL SURFACE MUCH LATER IN THE PROJECT AND RESULT IN MUCH HIGHER COSTS 52

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Excellence in PM • Successfully managed projects vs. successful • • projects 100% of Excellence in PM • Successfully managed projects vs. successful • • projects 100% of the projects are successful => company is not taking enough risks Definition: “Develop cultures in which project managers are taught and encouraged to make decisions based on sound business judgment and not internal parochialism (close-minded). ” 54

Integrated Processes for The 21 st Century Project Management Concurrent Engineering Change Management Total Integrated Processes for The 21 st Century Project Management Concurrent Engineering Change Management Total Quality Management Risk Management 55

Project Charter • Project charter is the document that formally authorizes a project. • Project Charter • Project charter is the document that formally authorizes a project. • Provides the project manager with the authority to apply organizational resources to project activities. • Project manager should be assigned while the project charter is being developed. 56

Project Charter • Project sponsor issues the project charter (usually authorized external to the Project Charter • Project sponsor issues the project charter (usually authorized external to the project organization) • Ex: city authorizing the reconstruction of a downtown site; A company authorizing the development of a new training program; P&G authorizing a project to build new cleaner. 57

Commercial Development Process (Stage -Gate Process by Cooper) Clear Product Concept Gate Ideation 0 Commercial Development Process (Stage -Gate Process by Cooper) Clear Product Concept Gate Ideation 0 Is it a Winner? Stage 1 Approval to Spend More $$ Launch Decision Gate Stage 2 Gate Stage 3 Gate 1 Detailed 2 Development 3 Preliminary Assessment Analysis • Prelim. Tech. • Prelim. Comml • Simple financials • Manuf. feasibility • Killer assumptions • Plans • What is the product? • Who is the customer? • How is need being met? • Why will customer buy? • Where are the customers? • How much money will LZ make? • When will sales begin? Testing & Validation Post Launch Audit Stage 4 Gate 4 Commercialization & Launch • Product & Mfg specs • Launch Plans • Mktg & advertising • Ops/Manufacturing • Business Plan • Business Case • Customer input • Market input • Competition • Functional Specs • Risks • Plans Post Audit 58

Stage 0 Questions to Address • What is the product? • • • (this Stage 0 Questions to Address • What is the product? • • • (this is the product description) Who is the customer? Channel to market? (specifically who is going to pay for this) How is this need being satisfied today? (we need to understand competitive solutions) Why will the customer buy this product? (this is the value proposition) Where in the world are the customers? (emphasizes global perspective) How much money will the product make? (understand the size of addressable market / potential margins) When will sales begin? (emphasizes that sales revenue is the goal) 59

 • The time and cost of projects escalates with each stage, thus stage-gate • The time and cost of projects escalates with each stage, thus stage-gate processes only permit a project to proceed if all assessments indicate success. 60

Multi-project Management • Are the project objectives the same? – For the good of Multi-project Management • Are the project objectives the same? – For the good of the project? – For the good of the company? • Is there a distinction between large and small projects? • How do we handle conflicting priorities? – Critical versus critical projects – Critical versus non-critical projects – Non-critical versus non-critical projects 61

The Quality Gap Customer Expectations Quality Gap Achieved Improvements Time 62 The Quality Gap Customer Expectations Quality Gap Achieved Improvements Time 62