Project Management Project Management


Published on

Published in: Business, Technology

Project Management Project Management

  1. 1. Project Management Merrie Phinney
  2. 2. Day 1: Overview of Project Management • Define Project and Project Management • Describe the three constraints that affect project success • Describe the main phases of the project management processes • Establish project objectives • Apply the management by objectives (MBO) methodology
  3. 3. What is a Project? A project is a temporary endeavor undertaken to accomplish a unique product or service with a defined start and end point and specific objectives that, when attained, signify completion. PMBOK definition PMBOK is a trademark of the Project Management Institute
  4. 4. What can go wrong in a Project? The major cause of project failure is not the specifics of what went wrong, but rather the lack of procedures, methodology and standards for managing the project. PMBOK definition PMBOK is a trademark of the Project Management Institute
  5. 5. 5
  6. 6. 60 50 40 % success 30 fail cancel 20 10 0 1994 1995 1998 2000
  7. 7. How can we reduce the risks?
  8. 8. How Project Management can help  Single point of contact and accountability for the overall success of the project  Focuses on meeting customer needs and ensuring satisfaction  Improves performance in time, cost and technical areas  Focuses on managing project scope and controlling change  Helps avoid disasters by managing risks  Strengthens project teams and improves internal morale
  9. 9. History of Project Management  In 1917 Henry Gantt developed the Gantt chart as a tool for scheduling work in job shops  Modern project management began with the Manhattan Project (circa 1943), which led to the development of the atomic bomb  In 1958, the Navy pioneered the use of PERT network charts  In the 1970s, the military began the broad use of project management software, as did the construction industry.  By the 1990s, virtually every industry uses some form of project management
  10. 10. What is Project Management? Project management is the application of knowledge, skills, tools, and techniques applied to project activities in order to meet or exceed stakeholder needs and expectations from a project. PMBOK definition PMBOK is a trademark of the Project Management Institute
  11. 11. The Triple Constraint
  12. 12. Scope Creep 1. Add Time- delay the project to give you more time to add the functionality ($) 2. Add Cost- recruit, hire or acquire more people to do the extra work ($) 3. Cut Quality- trade off some non-essential requirements for the new requirements ($)
  14. 14. Read this quote from a Petrobras executive, citing the benefits of cutting quality assurance and inspection costs:
  15. 15. on the project that sunk into the Atlantic Ocean off the coast of Brazil in March 2001.
  16. 16. "Petrobras has established new global benchmarks for the generation of exceptional shareholder wealth
  17. 17. through an aggressive and innovative programme of cost cutting on its P36 production facility.
  18. 18. Conventional constraints have been successfully challenged
  19. 19. and replaced with new paradigms appropriate to the globalised corporate market place.
  20. 20. Through an integrated network of facilitated workshops,
  21. 21. the project successfully rejected the established constricting and negative influences of prescriptive engineering,
  22. 22. onerous quality requirements, and outdated concepts of inspection and client control.
  23. 23. Elimination of these unnecessary straitjackets has empowered the project's suppliers and contractors to propose highly economical solutions,
  24. 24. with the win-win bonus of enhanced profitability margins for themselves
  25. 25. The P36 platform shows the shape of things to come
  26. 26. in the unregulated global market economy of the 21st Century.“
  27. 27. And now you have seen the final result of this proud achievement by Petrobras.
  28. 28. "We can do GOOD, QUICK and CHEAP work. You can have any two but not all three. 1. GOOD QUICK work won't be CHEAP. 2. GOOD CHEAP work won't be QUICK. 3. QUICK CHEAP work won't be GOOD."
  29. 29. Project Management Processes
  30. 30. Management by Objectives (MBO) Approach Establish clear and realistic objectives Good objectives are “clearly stated” and contain a “measure” of how to assess whether they have been achieved. To be realistic, objectives must be “determined jointly” by managers and those who perform the work.
  31. 31. Exercise 1: Setting Clear Objectives “To have the painter paint my office a pleasing color”
  32. 32. But the ceiling is oppressive! Not only did you paint Ceilings should never be the same color aswallswalls. They my office the blue, but you painted the ceiling should always be a lighter color. blue as well! You asked for a blue You asked me to room. the room blue, paint You’re lucky Iand now you’ve got didn’t paint the floor blue as well. a blue room. Office Manager Contractor
  33. 33. How could I have said it? The floor and all furniture will be covered by drop cloths prior to painting each of the 4 office walls, not including the door, base-boards, crown molding, window frames, windows, light switches, or power outlets that will be masked with painters tape. The walls should be painted using Behr paint in Sapphire Berry #550C-2 in the semi-gloss sheen, using a nylon/polyester 3” inch wide brush using a vertical brush stroke, applying two coats of paint, allowing 16 hours between coats, and be completed by Friday, October 6 including removal of all protective tape.
  34. 34. “I know that’s what I said, but it’s not what I meant!”
  35. 35. Key Messages  A Project is a unique endeavor directed toward achieving a specific result; it is temporary, with a beginning and an end  Project management is the process of successfully completing a project  The triple constraints affecting project success are requirements, time and cost (resources)  The main processes of project management are initiation, planning, execution, control and closeout  MBO is a specific methodology used to establish realistic objectives and to measure achievement
  36. 36. Reading Assignments Case Study 1-1: The Education of Jerry; Part 1- The Project Environment Case Study 2-1: Ralph’s Drugstore