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Project management for the supply management professional rev. 5 13-13
 

Project management for the supply management professional rev. 5 13-13

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    Project management for the supply management professional rev. 5 13-13 Project management for the supply management professional rev. 5 13-13 Presentation Transcript

    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 2Project Management forThe Supply ManagementProfessional
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 2Learning Objectives:2L.O. # Seminar Objective1 Identify the Various Stages in the Life Cycle of a Project2Understand How to Construct a Work Breakdown Structure Using a SampleProject3 Understand How to Read & Interpret a Gantt Chart Using a Sample Project4Use Project Management Principles to Get Things Done and Drive MoreEfficient Execution5 Diagram the Critical Path of a Sample Project6 Create a Project Plan to Use in Managing Your Projects7 Assess the Benefits of Using Microsoft Project 20108 Identify Software Tools Available to Help You Manage Your Projects
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 2Terminal Course Objectives of a TypicalProject Management Course:• Select the best alternative from among competing projects.• Conduct a task analysis .• Determine task costs, total project cost and develop theproject budget.• Understand the demands placed upon a project managerand issues that must be addressed• Analyze resource conflicts that jeopardize the projectschedule.• Apply earned value techniques to calculate projectvariances.• Use project management software.• Develop and apply management by exception thresholdcriteria.3
    • Copyright 2012 John Wiley & Sons, Inc.4 4
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 2Introduction to This Course:• Provide an overview of Project Management.• Address the basic nature of managing all types of projects,• Focus specifically on those of interest to the SupplyManagement Professional.• Notice specific techniques and insights required to carry out thisunique way of getting things done.• Align with the material presented in the CPSM Exam 2 StudyGuide, Task 2-G-1 Perform Project Management ActivitiesRepresenting the Supply Management Organization• Major topic areas: Project Initiation, Project Planning, ProjectExecution, Project Monitoring and Control, and Project Closure.• Introduce Microsoft Project 2010 - offer an overview of benefitsof using it to manage projects.5
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 2Introduction to Project Management:• I am not a certified Project Manager.• Six credentials available - visit the ProjectManagement Institute website http://www.pmi.org• You will probably not become a ProjectManagement Professional but “Today, more than ever, supplymanagement professionals are active participants on projects, particularly with the advent of outsourcing.They may be involved in enterprise-wide projects, projects with other functions including engineering,operations, marketing and sales or their own internal projects. Most often they are concerned with theacquisition, purchase and value to the organization of those goods and services that will be needed todeploy any organization-related project plans. Some supply management professionals work in a projectenvironment on a full-time basis while others are brought into a project as needed. Examples of projectswhere supply management lends expertise and will most likely be involved include:• a. Creating a supplier certification program• b. Developing and implementing an online auction program• c. Selecting and recommending materials or developing a statement of work for a new product or service• d. Contract preparation and negotiation• e. Developing a key supplier”• (Effective Supply Management Performance (ISM Professional Series), by Darin L. Matthews and LindaL. Stanley, Chapter 2 (p. 23)6
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 27How Project Management Developed• Credit for the development of project managementgoes to the military Navy’s Polaris program NASA’s Apollo space program Development of “smart bombs” and “missiles”• Project management has found wide acceptance inindustry• It has many applications outside of construction Managing legal cases Managing new product releases Managing Procurement & Sourcing Projects
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 28Project Management Organizations• The Project Management Institute, founded in 1969, is themajor project management organization• Grew from 7,500 members in 1990 to over 320,000 in2010• Other organizations Association for Project Management International Project Management Association
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 29The Definition of a “Project”• “a temporary endeavor undertaken to create a uniqueproduct, service, or result” (PMI PMBOK Guide)• “a special piece of work outside the normal flow of dailyactivities that has a specific objective and a time andbudget limit” (ISM Glossary)• Modern project management began with the ManhattanProject• In its early days, project management was used mainly forlarge complex projects• As the tools and techniques were developed, the use ofproject organization began to spread
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 210Why Project Management?• The main purpose for initiating a project is to accomplishsome goal• Project management increases the likelihood ofaccomplishing that goal• Project management gives us someone (the projectmanager) to spearhead the project and to holdaccountable for its completion
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 211Projects Are Typically Created to Meet atLeast One of These Objectives• Create a change in an organization• Exploit new opportunities• Implement the strategic plan• Fulfill a contractual agreement• Solve some problem
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 212Project Management Defined“the process of coordinating the organization,planning, scheduling, controlling, monitoringand evaluating of activities so that theobjectives of a project are met”(Source: ISM Glossary)
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 213Project Life Cycle - Process Stagesa) Initiatingb) Planningc) Executingd) Monitoring/Controllinge) Closing
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 214Project Life Cycle – Knowledge Areasa) Integration Managementb) Scope Managementc) Time Managementd) Cost Managemente) Quality Managementf) Human Resources Managementg) Communications Managementh) Risk Managementi) Procurement Management
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 215The Knowledge Area of Project ProcurementManagement includes a discussion of :a) Plan Purchases and Acquisitionsb) Plan Contractingc) Request Seller Responsesd) Select Sellerse) Contract Administrationf) Contract Closeout
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 216Initiating the Project – To Define theProblem that the Project Will Solve:• SWOT Analysis• Kepner-Tregoe Analysis• Six-Sigma Analysis• Business Case Analysis• Alternative Analysis• Stakeholder Analysis
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 217Planning the Project – To define ProjectObjectives, Scope and Tasks• Solicitation Planning• Scope Development• Team Roles/Responsibilities• Budget• Schedule• Risk Management
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 218Executing the Project –Solicitation &Source Selection Phase• Source Selection Process• Managing the Project Team• Change Management
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 219Monitoring and Controlling the Project• Performance Measurement Tools Earned Value Analysis Schedule Analysis Budget Analysis• Change Control Process• Risk Management Process• Reporting
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 220Closing the Project• Contract Closeout Process: Property Dispositions Process Final Product/Service Acceptance Final Payment Process• Best Practice/Lessons Learned• Post Project Audit
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 2Task 2-G-1 Case StudyProduction Line-RedesignInstructions: In your table groups, read the case study, answer the discussion questions and be preparedto explain your responses. You have five minutes.Martin Rodriguez works as the Supply Manager at the Summit Pewter Company, a small manufacturingcompany headquartered in Littleton, Colorado. The company manufactures a line of commemorativepewter products for the American market. For the past 18 years, commemorative wedding pewter gobletshave been the companys best-selling product line.The company’s design group, along with corporate marketing, is busy developing new product lines forthe burgeoning home accessories market. The operations and production management group isimplementing a production line redesign initiative, including relevant software upgrades. This initiative isdriven by the need to retool the company’s production lines to support the new products and findings in arecent study indicating that time delays involved in the existing procurement system are shutting downproduction. To compensate, production has increased inventory on hand, negatively affecting cash flow.Senior management has tasked the operations and production, information technology and supply chainmanagement groups with successfully implementing the production line redesign and replacing relevantsoftware modules. Rodriguez has been assigned as a full-time supply management subject matter expertin the new initiative’s project team structure. Rodriguezs role will be to perform project managementactivities representing the supply management organization by providing procurement expertise in all ofthe phases of the project.In order to be successful, Rodriguez will follow a standard methodology for project management and willbe involved in each of the following phases of the initiative: initiation, execution, monitoring andcontrolling and closing. He will rely on his supply management and project management training andskills throughout all project life cycle activities. As a supply professional, what questions shouldRodriguez consider from the project management point of view?21
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 2Task 2-G-1 Case Study #1Discussion Questions1. What are some analysis tools Rodriguez shouldincorporate when analyzing capital equipmentacquisitions during the project initiation phase?2. List four or five processes or tools Rodriguez can use inthe project monitoring and control phase to manage thecontract.22
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 2Benefits of Using a Project ManagementSoftware Tool – MS Project 2010• Increased ability to effectively manage and understand projectschedules• Improved ability to become productive quickly• Increased capability to build effective charts, graphs, anddiagrams• Better communication within the project team• Improved understanding of change impacts• Increased control over finances and the resources allocated tothe project• More effective tracking according to the project team needs23
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 224
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 2Using Microsoft Project 2010• User has 3 main options to Learn Project 2010: Use the trial –and-error method. Many people prefer to just start using the software andlearn as they go, using the Help menu provided by Microsoft as needed. Read/skim a book. There are many good books on the market. One of those is MicrosoftProject 2010 for Dummies by Nancy Muir. We quote extensively from this book in thispresentation. Watch a video tutorial. One such product is the set of 147 videos offered by Infinite Skills(see www.infiniteskills.com).• MS Project functions much like Excel but, as Nancy Muir says in herbook, Microsoft Project 2010 For Dummies, “it’s probably not like anyother software you’ve ever used, so mastering it can seem a dauntingprocess.”25
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 2Using MicroSoft Project 2010• The file that you create in MS Project is called a Projectplan, or schedule.• This plan contains a plethora of information.• The many “views” of Project allow you to observe thestructure of your plan and see the progress of it.• Project offers many ways to move around and displaydifferent information in your views.26
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 2Using MicroSoft Project 2010 –You move from one view to another by using the Task and View tabs on the Ribbon.Clicking the down arrow on the Gantt Chart button displays the 13 most used views: Calendar, Gantt Chart Network Diagram Resource Sheet Resource Usage Resource FormResource GraphTask UsageTask FormTask Sheet,Team PlannerTimelineTracking Gantt.27
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 2Benefits of Using a Project ManagementSoftware Tool - Excel• It is Simple to Use• It is readily available – not everyone has MS ProjectSoftware• It is suitable for many simple projects, involving onlyyourself and your team• Here is a simple project plan I used to develop a course inProject Management for Webster University this Spring 1Term28
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 229
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 230
    • © Copyright 2010 Institute for Supply Management™. All rights reserved. Reprinted with permission from the publisher, the Institute for Supply Management™Exam 2Reference Sources• CPSM Study Guide, Exam 2, Task 2-G-1 (pp. 179 –190)• Effective Supply Management Performance (ISMProfessional Series), by Darin L. Matthews andLinda L. Stanley, Chapter 2 (pp. 23 – 70)• Microsoft Project 2010 for Dummies by Nancy Muir• Managing Projects in Organizations by J. DavidsonFrame• Project Management: A Managerial Perspective byJack R. Meredith and Samuel J. Mantel, Jr.31