Project Management PM Jim Cook of Cook-Hauptman Associates

Project Management (PM) Jim Cook of Cook-Hauptman Associates, Inc. Introduction Project Management Day 1 in the am

Introducing Jim Cook Ø Vice President of Technology, US Fortune 500 Company (CAD/CAM) Ø President of NASDAQ Listed Company (Software Development Tools) Ø Consulted to Du. Pont, Motorola, Bell Labs … (Technology Management) Ø Projects: Apollo Moon Project (400, 000), US Navy Submarine Rescue (250), Speech Recognition (25), Rolls-Royce Jet Engine Reorg. (100), CAD/CAM Development (1, 000), Mobile Robot Reliability (12) Ø Started a Software Company in Beijing (Financial DB – 14) Ø Taught MBAs at UCSD (Mfg. Economics), Worcester Polytechnic Institute (Advanced Mfg. ) and Melbourne (Entrepreneuring) Ø Lectured at Harvard, MIT, Renda, and CAS; BS math, graduate studies Project Management Cook Day 1 in the am # 2 / 21

Agenda ØFriday – (Sessions am: 9 -12, pm: 1: 30 -3 & 3: 30 -5) Ø am: Introduction - Definition, Orientation, & Life Cycle Ø pm: Structures – Knowledge Framework, WBS, Gantt Chart, PERT Chart … ØSaturday – (Sessions am: 9 -12, pm: 1: 30 -3 & 3: 30 -5) Ø am: PLAN – Planning Walkthrough - Scoping, Scheduling, Budgeting and Planning. Ø pm: DO - Managing Walkthrough - Leading, Risk Managing, and Contracting. Project Management Cook Day 1 in the am # 3 / 21

Agenda (Continued) Ø Sunday – (Sessions am: 9 -12, pm: 1: 30 -3 & 3: 30 -5) Ø am: CHECK - Reporting, Assessing, and Controlling Ø pm: ADJUST - Reviewing, Fixing, and Closeout. Ø pm: Case: Bank of America's Masternet System You can find a copy of this entire lecture series on the Internet at: http: //cha 4 mot. com/PM Project Management Cook Day 1 in the am # 4 / 21

“Point of View” Ø “A point of view is [or can be] worth 80 IQ points” Alan Kay Ø Our Point of View: Ø Project Management is a tool, not the job Ø Project Management is not a substitute for management Ø One size does not fit all Ø Everything belongs to a bigger system (the strategic plan, the company, the market, the country, the times …) Ø Eventually, there is a diminishing return on detail Ø Using, editing, changing, and flexibility need to be simple Ø “Everything should be made as simple as possible, but not simpler” Ø China is unique with its own “Characteristics” Project Management Cook Day 1 in the am # 5 / 21

What’s going on here? Ø Information Economy: Ø Gates (software), Dell (computer distribution), Ellison (data management), Jobs & Wozniac (personal computers) Ø Industrial Economy: Ø Ford (cars, airplanes), Edison* (inventions), Kaiser* (roads, dams, ships, cars), Land (cameras), Sanders* (electronics) Keep an open mind about talent! * Significant government help Project Management Cook Day 1 in the am # 6 / 21

America’s Foremost Project Manager ØHenry J. Kaiser (1882 -1967) Ø 1920 s Built cement highways in California Ø 1931 Boulder Dam (largest dam, lake, generator) Ø 1935 Hoover Dam, later Grand Coulee Dam, et. al. Ø 1939 Built 60 freighters for Great Britain Ø 1941 Built Liberty Ships in 197 days Ø 1942 -5 Built 1, 490 of Liberty Ships; one in 4 2/3 days Ø 1946 Bought post-war aluminum factory Ø 1945 -54 Built Henry J car (failed badly as a business) Ø Left as legacy Kaiser Permanente Health Care Project Management Cook Day 1 in the am # 7 / 21

Why Study Project Management? Ø Project Managers are the #1 position IT managers say they need most for contract help. (Computer. World 1999) Ø According to a Standish Group International study (1994): Ø Ø Ø 88% of all (IT) projects are over schedule, budget, or both For every 100 projects started, there are 94 restarts 31 percent of all projects are cancelled before completion Average cost overrun is 189% of original estimates Average time overrun is 222% of original estimates Ø It is essential for investors, JV, and FDI confidence Project Management Cook Day 1 in the am # 8 / 21

What is a Project (for our purposes) ? Ø An organized activity which is not done repeatedly Ø To achieve a clear, measurable accomplishment Ø Involving several people (from one or more entities) Ø For a extended period of time (in excess of 2 months) Ø And a fixed completion date (and, perhaps, milestones) Ø Having a limited budget and limited resources Ø With centralized command, coordination, and control Ø Entailing risk, but not requiring breakthroughs for success. Project Management Cook Day 1 in the am # 9 / 21

Example: Restoration of Kuwaiti Oilfields Ø Requirements: (two important constraint missing) Ø Storage, docking, and warehousing facilities at Dubai Ø 125, 000 tons of equipment and supplies Ø 150 kilometers of pipeline capable of delivering 80, 000 liters of water/day to the fire site and 6 full-service dining halls Ø More than 200 lagoons with 8, 000 liters of seawater Ø Resources: Ø Ø Ø 8, 000 workers 1, 000 construction professionals 100 medical personnel 2 helicopter evacuation teams 6 full-service dining halls 40 bed field hospital Project Management Cook Day 1 in the am # 10 / 21

Example: Bank of America’s Master. Net Ø Requirements: Ø Ø Ø Deposits, withdrawals, disbursements Cash, savings, dividends, Stocks, bonds, options Real Estate, multi-currency Transactions, claims, settlement Fees, litigation, taxes, compliance Ø Resources: Ø Ø 100+ programmers (3. 5 million lines of code) CEO support, critical for future Large budget (originally $20 million, later tripled) Talent: Max Hopper (SABRE), Stephen Katz (Premier) Project Management Cook Day 1 in the am # 11 / 21

Advantages of Project Management Ø An effective tool for managing: reduces risk and informs of progress, prospects, and needs in advance of finish Ø A great focusing tool for managers and participants Ø An effective tool for financing: informs of costs, schedules, benefits, risks, and requirements Ø An aid to development: direction, context, dependencies, coordination, communication, and requirements Ø A basis for building an organizational memory: people, performance, and practices Ø A framework for building human capital: skill enhancement, span extension, and greater leverage Project Management Cook Day 1 in the am # 12 / 21

PM Relationship to Other Disciplines Ø PM is a framework in which disciplines (e. g. , finance, human resources, marketing) can be coordinated and thereby tackle projects beyond any person or group’s capability (Hoover Dam, Normandy, Moon, 3 Gorges) Ø PM needs a combination of technical skills (knowledge of the nature of the work), (time and risk discounted) financial analysis, and management skills (leadership, direction, monitoring, decision making, and communicating) Ø PM itself is a discipline requiring knowledge of the roles of specifications, work breakdown structure, critical path, and the tools of this profession Project Management Cook Day 1 in the am # 13 / 21

Project Management Profession Ø A 1996 Fortune magazine article called project management the “number one career choice” Ø Other authors, such as Tom Peters and Thomas Stewart, stress that projects are what add value to organizations Ø Professional societies like the Project Management Institute have grown tremendously Project Management Cook Day 1 in the am # 14 / 21

Project Management Certification Ø PMI provides certification as a Project Management Professional (PMP) Ø A PMP has documented sufficient project experience, agreed to follow a code of ethics, and passed the PMP exam, details at: www. pmi. org Ø PMI developed a project management code of ethics, details at: www. pmi. org/certification/code. htm Project Management Cook Day 1 in the am # 15 / 21

Growth in PMP Certification Project Management Cook Day 1 in the am # 16 / 21

Stages of Project Life Cycle Project Management Cook Day 1 in the am # 17 / 21

Level of Life Cycle Activity Preferred risk profile Project Management Cook Day 1 in the am # 18 / 21 Preferred cash profile

Project Failure by Stage Ø Initiating (40%) (aka Scoping) Ø lack of senior management buy in Ø lack of explicit involvement of stakeholders & end users Ø vague or excessively ambitious objectives (for budget / schedule) Ø Planning (20%) Ø lack of sound master plan Ø poor management of resources and expertise Ø Execution (30%) Ø shortage of skilled resources Ø lack of formal project management methodology Ø Closure (10%) Ø resistance to change Ø project doesn’t meet requirements Source: Gartner Group sept 2000 survey of 1375 IT professionals Project Management Early warnings checklist: Scope, Leadership, Strategy, Cook Resources, Sponsorship, Enthusiasm, Failure Risks Day 1 in the am # 19 / 21

A Balanced Perspective: Opinion Ø Three Gorges would be impossible without Project Management!!! Ø The Miracle of Shen. Zhen would be impossible with Project Management!!! Ø Project Management is a Black Cat, not a Black Cat and a White Cat – It thrives where Central Planning thrives Ø Where’s that? Infrastructure development, Complex dependencies, Known technology and environment, Clear goals, adequate resources Ø Where not? Where judgment or ingenuity are crucial or situation and/or technology is in great flux, few resources Project Management Cook Day 1 in the am # 20 / 21

Concluding Remarks Ø Questions and Answers Ø Thank you, again. You can find a copy of this lecture (150 KB) on the Internet at: http: //cha 4 mot. com/TG-PM 0309 Project Management Cook Day 1 in the am # 21 / 21

HJK Gallery – Henry J. Kaiser Quotes I make progress by having people around me who are smarter than I am and listening to them. I always have to dream up there against the stars. If I don't dream I will make it, I won't even get close. Having an aim is the key to achieving your best. You can't sit on the lid of progress. If you do, you will be blown to pieces. Live daringly, boldly, fearlessly. Taste the relish to be found in competition -- in having put forth the best within you. A problem is only an opportunity dressed in work clothes. Project Management Cook Day 1 in the am # 22 / 21

HJK Gallery – Liberty Ship Length: 133 m Beam: 18 m Draft: 9 m Project Management Cook Day 1 in the am # 23 / 21

HJK Gallery Ship Yard c. 1942 Project Management Cook Day 1 in the am # 24 / 21