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    57086 01 introduction 57086 01 introduction Presentation Transcript

    • 157086Contract and Project ManagementThe University of Hull
    • 157086Contract and Project ManagementIntroductionJim Gilbert,David SowdenThe University of Hull
    • Overview• Aims of the Module• Why use a project management method?• What is a Project?• The Terminology• The Processes• The Components• The Techniques• Process and Component links 3
    • Aims of the Module The aim of this module is to present various current practices, topics and methodologies relevant to contract and project management that underpin engineering projects, products and services. This module focuses upon developing your own personal ‘practitioner’ skills. 4
    • Aims of the ModuleAt the end of the module, with guidance, You will be expected to have the ability to:Demonstrate some breadth and understanding of a range of tools, techniquesand methodologies relevant to planning, managing and controlling anengineering project involving a wide range of resources within the workplaceenvironment. (Learning Outcome 1 (LO1))Construct and convey to a range of stakeholders, a fully detailed contract /project proposal (including appropriate cost estimates) drawing upon data /information / literature from a largely prescribed range of sources utilisingappropriate IT skills and applications. (Learning Outcome 2 (LO2))Coherently evaluate and reflect upon their own proposals identifying risks, andseeking appropriate guidance with respect to relevant legal and ethical issuesassociated with engineering projects. (Learning Outcome 3 (LO3)) 5
    • Method of Assessments for this module• Problem solving exercises (40%)• Project proposal (40%)• Reflective review (20%) 6
    • What is Project Management?• It is the application of knowledge, skills and techniques to execute projects effectively and efficiently.• It’s a strategic competency for organisations, enabling them to tie project results to business goals — and thus, better compete in their markets. 7
    • History (1)• Henri Fayol (1841 - 1925) – Creator of the basic project-management functions‘To manage is to forecast and plan, to organise, co-ordinateand to control’ • forecasting • planning Development • organising Phases • commanding • coordinating • controlling 8
    • History (2)• Henry Gantt (1861 - 1919) – Invent of the project management tool - the Gantt chart. Strength Weakness • easy to read • tendency to depict dates as • understandable set in ‘stone’ • movement of milestones difficult http://www.ganttchart.in/GanttChartHistory.html 9
    • Why do project fail?• Remember that Gantt charts and basic project management principle were developed in the 19th Century• The traditional way of project management is called ‘waterfall’, little flexibility at times Requirements Specification Design Implementation No way back! 10
    • ‘be flexible’ 11
    • Why use a project management method?• Project failure are all too commonYear Company Cost Outcome2010 Lumber Liquidators £9 million Insufficient training of personnel on new SAP implementation resulted in lost sales.2010 Virgin Airlines (Australia) £13 million Cloud hosting failure disrupted travel for 50,000 customers.2010 EDS £296 million Fine paid to settle lawsuit over a failed CRM project for British Sky Broadcasting.2007 Deloitte £26 million Poor requirements gathering and testing of LAUSD payroll system caused overruns.2005 Hudson Bay Co. [Canada] £21.5 million Problems with inventory system led to loss.2005 UK Inland Revenue £2.15 billion Software errors contributed to tax-credit overpayment.2004 Avis Europe PLC [UK] £35 million Enterprise resource planning (ERP) system cancelled.2004 J Sainsbury PLC [UK] £340 million Supply-chain management system abandoned after deployment.1994 Eurotunnel £7.34 billion The project of Channel Tunnel came in over its predicted budget.1993 London Stock Exchange [UK] £386 million Taurus stock settlement system cancelled after 10 years of development.1993 London Ambulance Service [UK] £16 million First attempt to build dispatch system cancelled; second abandoned after deployment.
    • Why use a project management method?• Project failure - some causes – Insufficient attention to checking a valid business case exist for the project. – Insufficient attention to quality at the outset and during development. – Insufficient definition of the required outcomes, leading to confusion over what the project is expected to achieve. – Lack of communication with stakeholders and interested parties, leading to products being delivered that are not what the customer wanted. – Inadequate definition and lack of acceptance of project management roles and responsibilities, leading to lack of direction and poor decision making. – Poor estimation of duration and costs, leading to project taking more time and costing more money than expected. – Inadequate planning and co-ordination of resources, leading to poor scheduling. – Insufficient measurables and lack of control over progress, so that projects do not reveal their exact status until too late. – Lack of quality control, resulting in the delivery of products that are unacceptable or unusable.
    • Breakdown into Work Packages• Consider small work packages, that build to the final requirements 14
    • Satisfy the customerthrough early andcontinuous deliveryDon’t be afraid to deliver to customers quickly evenif it mean living without a full roadmap 15
    • Terminology• Business Case is used to define the information that justifies the setting up, continuation or termination of the project - it answers the question: ‘Why should this project be done?’ it is updated at key points throughout the project• Customer is used to represent the person or group who has commissioned the work and will be benefiting from the end result• Product is used to describe everything that the project has to create or change, however physical or otherwise this may be. Results of projects can vary enormously from physical items, such as buildings and machinery, to intangible things such as culture change and public perception. 16
    • Terminology• Programme is a collection of projects that together achieve a beneficial change for an organisation.• Supplier is used to mean the group that is providing specialist resources and skills to the project or is providing goods and services to create the project outcome required by the customer and user(s).• User is defined as the person or group who will use or operate the final product. In some situations, the customer and user may be the same group of people. 17
    • What is Contract ManagementUsed in Procurement or Purchasing departmentsAs part of the department’s responsibilities, the manager of thedepartment usually negotiates, accepts, and signs contractswith suppliers of goods and services to the organisation.Contract management is the process of ensuring that thesupplier honours their negotiated contract terms.Although the role of procurement in the negotiation process isan essential part of a cost management process, contractmanagement is where the actual savings are either achieved ormissed. 18
    • WHAT ISWhat is Project Management A P R O JE CT?• A Project is a finite process with a definite start and end• Projects should: –focus on business justification –define an organisational structure –use a product based planning approach –be divided into manageable, controllable stages –be flexible to be able to be applied to the scale of the project / investment 19
    • WHAT ISWhat is Project Management A P R O JE CT?• Projects should therefore, have the following: –A finite and defined life cycle –Defined and measurable business products –A corresponding set of activities to achieve the business products –A defined amount of resources –An organisation structure, with defined responsibilities, to manage the project. 20
    • What is the Project life span? Idea Study (Research) WBL3 Trigger Specify Design Product Project life span Develop life Test span Change over Assess value Use Scrap 21
    • Project life span Clear Start Project ‘Board’ Meeting 1 Stage 1 Project ‘Board’ Meeting 2 Stage 2 Project ‘Board’ Meeting 3Communication Stage 3 Project ‘Board’ Meeting 4 Stage 4 Project ‘Board’ Meeting 5 Stage 5 Project ‘Board’ Meeting 6 Stage 6 Project ‘Board’ Meeting 7 Clear End
    • Processes THE BASICS Monitoring Initiating Planning Executing and Closing Controlling 23
    • Processes Start up Initiating Stage Control ‘Product’ Closing Delivery Stage Management Planning (Work Packages) 24
    • Processes Start up Initiating Stage Control ‘Product’ Closing Delivery Stage Management Planning (Work Packages) 25
    • Knowledge THE BASICS Integration Scope Time Cost Quality Procurement Human Management Communication Resources of Risk 26
    • The Components Business Case Organisation Controls Plans Configuration Change control Management Quality in a Management project environment of Risk 27
    • The ComponentsDifferent methodologies mapped PMBOK® Knowledge Area Comparable PRINCE2™ Components Integration Combined Processes and Components, Change Control Scope, Time, Cost Plans, Business Case Quality Quality, Configuration Management Risk Risk Communications Controls Human Resources Organisation Procurement Not CoveredPMBOK® - see - A guide to the Project Management Body of Knowledge, 2008, Project Management Institute, ISBN 978-1-933890-51-7PRINCE2™ - see - PRojects IN Controlled Environments 2, Managing Successful project with PRINCE2, 2009, OGC, ISBN 978-0-11-331059-3 28
    • Common Glossary EXAM Models Guides PLERefresh pending Portfolio, Programme Portfolio, and Project Gateway® M_O_R® ITIL®Programme and Office Project (P3O®) ManagementMaturity Model (P3M3TM) Portfolio Guide (PfM) PRINCE2 TM TMMaturity Model MSP (programme) (P2MM) TM PRINCE2 (Project) 29
    • The Different MethodologiesService Management – ITIL®ITIL is the most widely accepted approach to IT service management in the world. Providing acohesive set of best practice guidance drawn from the public and private sectors across the world, ithas recently undergone a major and important refresh project.IT Service Management (ITSM) derives enormous benefits from a best practice approach. BecauseITSM is driven both by technology and the huge range of organisational environments in which itoperates, it is in a state of constant evolution. Best practice, based on expert advice and input fromITIL users is both current and practical, combining the latest thinking with sound, common senseguidance.ITIL UsersITIL has been adopted by hundreds of organisations worldwide. These include: • Microsoft • IBM • Barclays Bank • HSBC • Guinness • Procter & Gamble • British Airways • Ministry of Defence • Hewlett Packard • NASA • Disney 30
    • The Different MethodologiesProject Management – PRINCE2PRINCE® (Projects in Controlled Environments), is a widely used project management method thatnavigates you through all the essentials for running a successful project. Since its introduction in 1989 as aUK government standard for IT project management, PRINCE has been taken on by both the public andcommercial sectors and is now recognised as a de facto standard for project management. PRINCE is aflexible method and although originally designed for the management of IT projects is now aimed at allother types of projects too.The latest version of the PRINCE method is PRINCE2 which was driven by user based improvements,project management specialists and a review panel of 150 public and private sector organisations. Thisend result is a generic best practice tool which is flexible enough to be tailored to your organisation andused successfully for all types of projects.How does PRINCE2 work?The PRINCE2 series consists of a range of linked publications covering everything from business benefitsto people issues. Along with all other OGC guidance, they share a common vocabulary and way ofapproaching projects.Who uses PRINCE2?PRINCE2 has been adopted by hundreds of organisations worldwide. Equally applicable to large andsmall organisations in the public and private sectors, clients include: • Barclays • British Telecom • GlaxoSmithKline • Ministry of Defence 31
    • The Different MethodologiesProgramme Management – Managing Successful Programme - MSPLarge, complex deliveries are often broken down into manageable, inter-relatedprojects. For those managing this overall delivery the principles of programmemanagement are key to delivering on time and within budget. MSP offers best-practice guidance to all organisations - large or small, public or private sector - tohelp them achieve successful outcomes from programme management, time andtime again. MSP has been developed to help achieve excellence by improvingpractices, offering better services and preparing more effectively for the future.Who uses MSP?MSP has been adopted by hundreds of organisations worldwide. Equallyapplicable to large and small organisations in the public and private sectors,clients include: • Barclays • British Telecom • GlaxoSmithKline • Ministry of Defence 32
    • The Different MethodologiesRisk Management – Management of Risk (M_o_R)M_o_R: How it worksIn organisations almost every decision has an upside and a downside involving some degree of risk. Aimed ateveryone who has ever made an important decision, M_o_R is a robust yet flexible framework that allowsorganisations to assess risk accurately time and time again.How M_o_R worksM_o_R is a route map for risk management, bringing together principles, an approach, a set of interrelatedprocesses, and pointers to more detailed sources of advice on risk management techniques and specialisms. Italso provides advice on how these principles, approach, and processes should be embedded, reviewed andapplied differently depending on the nature of the objectives at risk.M_o_R shows how risks can be: • Identified • Assessed • Controlled.Only in recent years have organisations begun to recognise that risk management – in its broadest sense – can beapplied to both negative threats and positive opportunities.Who uses M_o_R?MoR has been adopted by hundreds of organisations worldwide. Equally applicable to large and smallorganisations in the public and private sectors, clients include: • British Telecom • GlaxoSmithKline • Ministry of Defence 33
    • TASK There are many othermethodologies investigate these
    • The Techniques• Very few techniques are usually offered by different Project Management methodologies, however one that is useful to follow is a product based start to the planning activity, this involves: – Establishing what products are needed – Defining the form and content of each product – Determining the sequence in which each product should be produced. 35
    • TASKWhat products do you have within your project?
    • Overview of ProjectManagement processes 37
    • Controls Quality Management of Risk Starting a Organisation Business Case Project Plans Quality Initiating a Management of Risk Project Business Case Controls Configuration Management Change Control Controlling a Stage Controls Change Control Configuration Management Business Case Planning Management of Risk Quality review Change control QualityDirecting a Project Change Control Quality Controls Managing Plans Management of Risk ‘Product’ Delivery Plans Quality Business Case Managing Management of Risk Controls a Stage Organisation Boundary Controls Configuration Management Business Case Product Closing a Management of Risk based Project Change Control planning 38 Process Component Techniques
    • Delivery Management Direction Corporate or programme
    • Project Corporate or programme mandateDirectionManagementDelivery
    • Project Corporate or programme mandateDirection Starting up a ProjectManagementDelivery
    • Project Corporate or programme mandateDirection Starting Request to up a initiate a project ProjectManagementDelivery
    • Project Corporate or programme mandate Directing a ProjectDirection Starting Request to up a initiate a project ProjectManagementDelivery
    • Project Corporate or programme mandate Initiation notification Directing a ProjectDirection Authority to initiate a project Starting Request to up a initiate a project ProjectManagementDelivery
    • Project Corporate or programme mandate Initiation notification Directing a ProjectDirection Authority to initiate a project Starting Request to up a initiate a project ProjectManagement Initiating a ProjectDelivery
    • Project Corporate or programme mandate Initiation notification Directing a ProjectDirection Authority to initiate a project Starting Request to Request to up a initiate a project deliver a project ProjectManagement Initiating a ProjectDelivery
    • Project Corporate or programme mandate Initiation Project authorisation notification notification Directing a ProjectDirection Authority to initiate a project Starting Request to Request to up a initiate a project deliver a project ProjectManagement Initiating a ProjectDelivery
    • Project Corporate or programme mandate Initiation Project authorisation notification notification Directing a ProjectDirection Authority to initiate a project Starting Request to Request to up a initiate a project deliver a project ProjectManagement Initiating a Project Controlling a StageDelivery
    • Project Corporate or programme mandate Initiation Project authorisation notification notification Directing a ProjectDirection Authority to initiate a project Starting Request to Request to up a initiate a project deliver a project ProjectManagement Initiating a Project Stage boundary approaching Controlling a StageDelivery
    • Project Corporate or programme mandate Initiation Project authorisation notification notification Directing a ProjectDirection Authority to initiate a project Starting Request to Request to up a initiate a project deliver a project ProjectManagement Initiating a Project Stage boundary approaching Controlling a Stage Authority to deliver a Work PackageDelivery Managing ‘Product’ Delivery
    • Project Corporate or programme mandate Initiation Project authorisation notification notification Directing a ProjectDirection Authority to initiate a project Starting Request to Request to up a initiate a project deliver a project ProjectManagement Initiating a Project Stage boundary approaching Controlling a Stage Authority to deliver a Work Package CompletedDelivery Work Package Managing ‘Product’ Delivery
    • Project Corporate or programme mandate Initiation Project authorisation notification notification Directing a ProjectDirection Authority to initiate a project Starting Request to Request to up a initiate a project deliver a project ProjectManagement Initiating Managing a a Project Stage Boundary Stage boundary approaching Controlling a Stage Authority to deliver a Work Package CompletedDelivery Work Package Managing ‘Product’ Delivery
    • Project Corporate or programme mandate Initiation Project authorisation notification notification Directing a ProjectDirection Authority to initiate a project Starting Request to Request to Request to approve up a initiate a project deliver a project next stage plan ProjectManagement Initiating Managing a a Project Stage Boundary Stage boundary approaching Controlling a Stage Authority to deliver a Work Package CompletedDelivery Work Package Managing ‘Product’ Delivery
    • Project Corporate or programme mandate Initiation Project authorisation notification notification Directing a ProjectDirection Stage Authorisation Authority to initiate a project Starting Request to Request to Request to approve up a initiate a project deliver a project next stage plan ProjectManagement Initiating Managing a a Project Stage Boundary Stage boundary approaching Controlling a Stage Authority to deliver a Work Package CompletedDelivery Work Package Managing ‘Product’ Delivery
    • Project Corporate or programme mandate Initiation Project authorisation notification notification Directing a ProjectDirection Stage Authorisation Authority to initiate a project Starting Request to Request to Request to approve up a initiate a project deliver a project next stage plan ProjectManagement Initiating Managing a a Project Stage Boundary Stage boundary Request for approaching advice Controlling a Stage Authority to deliver a Work Package CompletedDelivery Work Package Managing ‘Product’ Delivery
    • Project Corporate or programme mandate Initiation Project authorisation Project Board notification notification request for advice Directing a ProjectDirection Stage Authorisation Authority to initiate a project Starting Request to Request to Request to approve up a initiate a project deliver a project next stage plan ProjectManagement Initiating Managing a a Project Stage Boundary Stage boundary Request for approaching advice Controlling a Stage Authority to deliver a Work Package CompletedDelivery Work Package Managing ‘Product’ Delivery
    • Project Corporate advice Corporate or programme mandate and decisions Initiation Project authorisation Project Board notification notification request for advice Directing a ProjectDirection Stage Authorisation Authority to initiate a project Starting Request to Request to Request to approve up a initiate a project deliver a project next stage plan ProjectManagement Initiating Managing a a Project Stage Boundary Stage boundary Request for approaching advice Controlling a Stage Authority to deliver a Work Package CompletedDelivery Work Package Managing ‘Product’ Delivery
    • Project Corporate advice Corporate or programme mandate and decisions Initiation Project authorisation Project Board notification notification request for advice Directing a ProjectDirection Stage Authorisation Authority to Project initiate a project Board advice Starting Request to Request to Request to approve up a initiate a project deliver a project next stage plan ProjectManagement Initiating Managing a a Project Stage Boundary Stage boundary Request for approaching advice Controlling a Stage Authority to deliver a Work Package CompletedDelivery Work Package Managing ‘Product’ Delivery
    • Project Corporate advice Corporate or programme mandate and decisions Initiation Project authorisation Project Board notification notification request for advice Directing a ProjectDirection Stage Authorisation Authority to Project initiate a project Board advice Starting Request to Request to Request to approve up a initiate a project deliver a project next stage plan ProjectManagement Initiating Managing a a Project Stage Boundary Exception raised Stage boundary Request for approaching advice Controlling a Stage Authority to deliver a Work Package CompletedDelivery Work Package Managing ‘Product’ Delivery
    • Project Corporate advice Corporate or programme mandate and decisions Initiation Project authorisation Project Board notification notification request for advice Directing a ProjectDirection Stage Authorisation Authority to Exception Project initiate a project Plan request Board advice Starting Request to Request to Request to approve up a initiate a project deliver a project next stage plan ProjectManagement Initiating Managing a a Project Stage Boundary Exception raised Stage boundary Request for approaching advice Controlling a Stage Authority to deliver a Work Package CompletedDelivery Work Package Managing ‘Product’ Delivery
    • Project Corporate advice Corporate or programme mandate and decisions Initiation Project authorisation Project Board notification notification request for advice Directing a ProjectDirection Stage Authorisation Authority to Exception Project initiate a project Plan request Board advice Request to approve Exception Plan Starting Request to Request to Request to approve up a initiate a project deliver a project next stage plan ProjectManagement Initiating Managing a a Project Stage Boundary Exception raised Stage boundary Request for approaching advice Controlling a Stage Authority to deliver a Work Package CompletedDelivery Work Package Managing ‘Product’ Delivery
    • Project Corporate advice Corporate or programme mandate and decisions Initiation Project authorisation Project Board notification notification request for advice Directing a ProjectDirection Stage Authorisation Authority to Exception Exception Plan Project initiate a project Plan request approved Board advice Request to approve Exception Plan Starting Request to Request to Request to approve up a initiate a project deliver a project next stage plan ProjectManagement Initiating Managing a a Project Stage Boundary Exception raised Stage boundary Request for approaching advice Controlling a Stage Authority to deliver a Work Package CompletedDelivery Work Package Managing ‘Product’ Delivery
    • Project Corporate advice Corporate or programme mandate and decisions Initiation Project authorisation Project Board notification notification request for advice Directing a ProjectDirection Stage Authorisation Authority to Exception Exception Plan Project Premature initiate a project Plan request approved Board advice close Request to approve Exception Plan Starting Request to Request to Request to approve up a initiate a project deliver a project next stage plan ProjectManagement Initiating Managing a Closing a a Project Stage Boundary Project Exception raised Stage boundary Request for Project end approaching advice approaching Controlling a Stage Authority to deliver a Work Package CompletedDelivery Work Package Managing ‘Product’ Delivery
    • Project Corporate advice Corporate or programme mandate and decisions Initiation Project authorisation Project Board notification notification request for advice Directing a ProjectDirection Stage Authorisation Authority to Exception Exception Plan Project Premature initiate a project Plan request approved Board advice close Request to approve Exception Plan Starting Closure Request to Request to Request to approve recommended up a initiate a project deliver a project next stage plan ProjectManagement Initiating Managing a Closing a a Project Stage Boundary Project Exception raised Stage boundary Request for Project end approaching advice approaching Controlling a Stage Authority to deliver a Work Package CompletedDelivery Work Package Managing ‘Product’ Delivery
    • Project Corporate advice Corporate or programme mandate and decisions Initiation Project authorisation Project Board Closure notification notification request for advice notification Directing a ProjectDirection Stage Authorisation Authority to Exception Exception Plan Project Premature initiate a project Plan request approved Board advice close Request to approve Exception Plan Starting Closure Request to Request to Request to approve recommended up a initiate a project deliver a project next stage plan ProjectManagement Initiating Managing a Closing a a Project Stage Boundary Project Exception raised Stage boundary Request for Project end approaching advice approaching Controlling a Stage Authority to deliver a Work Package CompletedDelivery Work Package Managing ‘Product’ Delivery
    • ‘Tailoring the methodologies to suit’ 40
    • COMMUNICATION 41
    • COMMUNICATION 41
    • TASK Consider your communicationtechniques to all those involved in your project