MIT32 Lecture 1 - Introduction to project management Gunnar Wettergren [email_address] © Gunnar Wettergren
Agenda <ul><li>Course introduction </li></ul><ul><li>Today’s lecture (Chapter 1 & 2) </li></ul><ul><ul><li>What is project...
MIT32 – Project management <ul><li>Course responsible </li></ul><ul><ul><li>Gunnar Wettergren </li></ul></ul><ul><ul><li>[...
Cont. <ul><li>Textbook: Core concepts of project management (Wiley & Sons) </li></ul><ul><li>By Mantel, Meredith, Shafer, ...
How is this course structured? <ul><li>Lectures </li></ul><ul><li>Tutoring sessions </li></ul><ul><li>Final written examin...
How does it all fit together © Gunnar Wettergren -Planning -Budget -People -Scheduling -Resources -Monitoring -Control Ter...
What is a project? <ul><li>“ A temporary endeavor undertaken to create a unique product or service” </li></ul><ul><li>Sour...
Why the emphasis on project management? <ul><li>Many tasks and ideas do not fit into the organization </li></ul><ul><li>We...
How are we doing so far? <ul><li>In 1998, the Financial Review reported that only 13% of companies are very happy with the...
Characteristics of a project <ul><li>Unique </li></ul><ul><li>Has a specific start and end date </li></ul><ul><li>Temporar...
PM vs. general management <ul><li>PM’s deal with short term development projects while general managers is in charge of ru...
The three goals of a project <ul><li>What is managed in a project?  </li></ul><ul><ul><li>Time (Schedule) </li></ul></ul><...
Performance, cost, and time targets © Gunnar Wettergren
Project lifecycles <ul><li>It measures the completion of a project as a function of either time or resources </li></ul><ul...
Example of project life cycles (1) © Gunnar Wettergren
Example of project life cycles (2) © Gunnar Wettergren
Selecting projects <ul><li>What guides the selection process? </li></ul><ul><ul><li>Is the project potentially profitable,...
Selection methods <ul><li>Nonnumeric selection methods </li></ul><ul><ul><li>The Sacred cow </li></ul></ul><ul><ul><li>The...
Why is it important to understand the selection process? <ul><li>Knowing the reasons why a project is started will help yo...
Aggregate project plan <ul><li>The ROI selection criteria used by many companies to select which projects to fund is insuf...
Aggregate project plan (2) <ul><li>There are four different categories used </li></ul><ul><ul><li>Derivative projects – In...
Aggregate project plan (3) © Gunnar Wettergren
Being a PM – What does it mean? <ul><li>Using a definition from the book “It is the PM’s job to make sure that the project...
Roles and responsibilities of a project manager <ul><li>One could easily claim that a PM is a man or woman with many diffe...
Roles <ul><li>Facilitator </li></ul><ul><li>Communicator </li></ul><ul><li>Virtual PM </li></ul><ul><li>Speaking partner <...
Responsibilities/Duties <ul><li>Resources </li></ul><ul><li>Fighting fires and obstacles </li></ul><ul><li>Leadership and ...
More on why we use projects <ul><li>Cuts down time-to-market </li></ul><ul><li>Products today require special knowledge, t...
How does the project fit into the organization? <ul><li>What is the connection between the project and the organization? <...
The interface between the project and the organization <ul><li>The basic problem for most PM’s is the interface between th...
Pure project organization © Gunnar Wettergren
Advantages and disadvantages <ul><li>Advantages </li></ul><ul><ul><li>Effective and efficient for large projects </li></ul...
Functional project organization © Gunnar Wettergren
Advantages and disadvantages <ul><li>Advantages </li></ul><ul><ul><li>technological depth </li></ul></ul><ul><li>Drawbacks...
Matrix project organization © Gunnar Wettergren
Advantages and disadvantages <ul><li>Advantages </li></ul><ul><ul><li>flexibility in way it can interface with parent orga...
Summary and questions lecture 1 © Gunnar Wettergren
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  • Mit32 Iv102 Vl1

    1. 1. MIT32 Lecture 1 - Introduction to project management Gunnar Wettergren [email_address] © Gunnar Wettergren
    2. 2. Agenda <ul><li>Course introduction </li></ul><ul><li>Today’s lecture (Chapter 1 & 2) </li></ul><ul><ul><li>What is project management </li></ul></ul><ul><ul><li>The project </li></ul></ul><ul><ul><li>The role of the project manager </li></ul></ul><ul><ul><li>Projects organization and the parent organization </li></ul></ul>© Gunnar Wettergren
    3. 3. MIT32 – Project management <ul><li>Course responsible </li></ul><ul><ul><li>Gunnar Wettergren </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>08/6747090 </li></ul></ul><ul><li>7.5 Hp </li></ul><ul><li>Mandatory assignment and written examination </li></ul>© Gunnar Wettergren
    4. 4. Cont. <ul><li>Textbook: Core concepts of project management (Wiley & Sons) </li></ul><ul><li>By Mantel, Meredith, Shafer, and Sutton </li></ul>© Gunnar Wettergren
    5. 5. How is this course structured? <ul><li>Lectures </li></ul><ul><li>Tutoring sessions </li></ul><ul><li>Final written examination </li></ul>© Gunnar Wettergren
    6. 6. How does it all fit together © Gunnar Wettergren -Planning -Budget -People -Scheduling -Resources -Monitoring -Control Termination + Project models =
    7. 7. What is a project? <ul><li>“ A temporary endeavor undertaken to create a unique product or service” </li></ul><ul><li>Source: A Guide to the Project Management Body of Knowledge , Project Management Institute Standards Committee, p. 167, 1996 </li></ul>© Gunnar Wettergren In other words IT’S A RISK
    8. 8. Why the emphasis on project management? <ul><li>Many tasks and ideas do not fit into the organization </li></ul><ul><li>We need to be able to assign responsibility and authority to achieve organizational goals </li></ul>© Gunnar Wettergren
    9. 9. How are we doing so far? <ul><li>In 1998, the Financial Review reported that only 13% of companies are very happy with their return on technology investments </li></ul><ul><li>In 53 out of 59 industries, increased IT spending did not result in a corresponding jump in productivity (McKinsey, 2002) </li></ul><ul><li>~ 50% of IT projects fail (Standish Group, 2002) </li></ul><ul><li>60% of the surveyed companies in 2002 had little or no formal training in project management (Organizational Project Management Baseline Study, Interthink Consulting, September 2002) </li></ul>© Gunnar Wettergren
    10. 10. Characteristics of a project <ul><li>Unique </li></ul><ul><li>Has a specific start and end date </li></ul><ul><li>Temporary organization </li></ul><ul><li>Can be structured and managed separate from the organization as a whole </li></ul>© Gunnar Wettergren
    11. 11. PM vs. general management <ul><li>PM’s deal with short term development projects while general managers is in charge of running the day-to-day activities </li></ul><ul><li>Little time to develop and improve the human capital </li></ul>© Gunnar Wettergren
    12. 12. The three goals of a project <ul><li>What is managed in a project? </li></ul><ul><ul><li>Time (Schedule) </li></ul></ul><ul><ul><li>Cost (Budget) </li></ul></ul><ul><ul><li>Performance (Goal attainment) </li></ul></ul>© Gunnar Wettergren
    13. 13. Performance, cost, and time targets © Gunnar Wettergren
    14. 14. Project lifecycles <ul><li>It measures the completion of a project as a function of either time or resources </li></ul><ul><li>It is important for you to understand different cycles and different phases of a cycle since it affects how you should manage </li></ul>© Gunnar Wettergren
    15. 15. Example of project life cycles (1) © Gunnar Wettergren
    16. 16. Example of project life cycles (2) © Gunnar Wettergren
    17. 17. Selecting projects <ul><li>What guides the selection process? </li></ul><ul><ul><li>Is the project potentially profitable, will it yield ROI? </li></ul></ul><ul><ul><li>Does the firm in question have the knowledge or manpower to carry out such a project </li></ul></ul><ul><ul><li>In line with the firms strategic plan? </li></ul></ul><ul><ul><li>Can we do it in the set time frame? </li></ul></ul>© Gunnar Wettergren
    18. 18. Selection methods <ul><li>Nonnumeric selection methods </li></ul><ul><ul><li>The Sacred cow </li></ul></ul><ul><ul><li>The operating/competitive necessity </li></ul></ul><ul><ul><li>Comparative benefits </li></ul></ul><ul><li>Numeric selection methods </li></ul><ul><ul><li>Financial assessment methods </li></ul></ul><ul><ul><li>Scoring method </li></ul></ul>© Gunnar Wettergren
    19. 19. Why is it important to understand the selection process? <ul><li>Knowing the reasons why a project is started will help you manage the project and help you understand the role of the project </li></ul><ul><li>It could potentially help you get your project proposal approved </li></ul>© Gunnar Wettergren
    20. 20. Aggregate project plan <ul><li>The ROI selection criteria used by many companies to select which projects to fund is insufficient </li></ul><ul><li>In order to address the problem of choosing the right projects Wheelwright/Clark developed a model called the aggregate project plan </li></ul>© Gunnar Wettergren
    21. 21. Aggregate project plan (2) <ul><li>There are four different categories used </li></ul><ul><ul><li>Derivative projects – Incremental/Minor Improvements to existing products /processes </li></ul></ul><ul><ul><li>Breakthrough projects – Seek to develop a new generation of products </li></ul></ul><ul><ul><li>Platform projects – The creation of a platform that can serve as a foundation for other products </li></ul></ul><ul><ul><li>R&D Projects – The development of new knowledge </li></ul></ul>© Gunnar Wettergren
    22. 22. Aggregate project plan (3) © Gunnar Wettergren
    23. 23. Being a PM – What does it mean? <ul><li>Using a definition from the book “It is the PM’s job to make sure that the project is properly planned, implemented, and completed” </li></ul>© Gunnar Wettergren
    24. 24. Roles and responsibilities of a project manager <ul><li>One could easily claim that a PM is a man or woman with many different faces. The different roles that you might be forced to handle during a project are almost endless </li></ul><ul><li>With these roles come different responsibilities and duties </li></ul>© Gunnar Wettergren
    25. 25. Roles <ul><li>Facilitator </li></ul><ul><li>Communicator </li></ul><ul><li>Virtual PM </li></ul><ul><li>Speaking partner </li></ul><ul><li>Problem solver </li></ul><ul><li>Customer relationships </li></ul><ul><li>Stakeholder management </li></ul><ul><li>Etc…. </li></ul>© Gunnar Wettergren
    26. 26. Responsibilities/Duties <ul><li>Resources </li></ul><ul><li>Fighting fires and obstacles </li></ul><ul><li>Leadership and making trade-off’s </li></ul><ul><li>Negotiation, solving conflicts, and persuasion </li></ul>© Gunnar Wettergren
    27. 27. More on why we use projects <ul><li>Cuts down time-to-market </li></ul><ul><li>Products today require special knowledge, teams can be formed and quickly disbanded </li></ul><ul><li>Technology impact and the rate and magnitude of the changes </li></ul><ul><li>Lack of confidence in upper management ability to cope with large scale changes </li></ul>© Gunnar Wettergren
    28. 28. How does the project fit into the organization? <ul><li>What is the connection between the project and the organization? </li></ul><ul><li>Does it affect us? </li></ul><ul><li>How should the relationship be handled? </li></ul>© Gunnar Wettergren
    29. 29. The interface between the project and the organization <ul><li>The basic problem for most PM’s is the interface between the organization and the project. PM’s have no control over that interface </li></ul><ul><li>The resources used in a project comes from the parent organization where managers running the day-to-day operations have “power” over resources </li></ul>© Gunnar Wettergren
    30. 30. Pure project organization © Gunnar Wettergren
    31. 31. Advantages and disadvantages <ul><li>Advantages </li></ul><ul><ul><li>Effective and efficient for large projects </li></ul></ul><ul><ul><li>Resources available as needed </li></ul></ul><ul><ul><li>Broad range of specialists </li></ul></ul><ul><ul><li>short lines of communication </li></ul></ul><ul><li>Drawbacks </li></ul><ul><ul><li>Expensive for small projects </li></ul></ul><ul><ul><li>Specialists may have limited technological depth </li></ul></ul><ul><ul><li>May require high levels of duplication for certain specialties </li></ul></ul>© Gunnar Wettergren
    32. 32. Functional project organization © Gunnar Wettergren
    33. 33. Advantages and disadvantages <ul><li>Advantages </li></ul><ul><ul><li>technological depth </li></ul></ul><ul><li>Drawbacks </li></ul><ul><ul><li>lines of communication outside functional department slow </li></ul></ul><ul><ul><li>technological breadth </li></ul></ul><ul><ul><li>project rarely given high priority </li></ul></ul>© Gunnar Wettergren
    34. 34. Matrix project organization © Gunnar Wettergren
    35. 35. Advantages and disadvantages <ul><li>Advantages </li></ul><ul><ul><li>flexibility in way it can interface with parent organization </li></ul></ul><ul><ul><li>strong focus on the project itself </li></ul></ul><ul><ul><li>contact with functional groups minimizes problems </li></ul></ul><ul><ul><li>ability to manage fundamental trade-offs across several projects </li></ul></ul><ul><li>Drawbacks </li></ul><ul><ul><li>violation of the Unity of Command principle </li></ul></ul><ul><ul><li>complexity of managing full set of projects </li></ul></ul><ul><ul><li>conflict </li></ul></ul>© Gunnar Wettergren
    36. 36. Summary and questions lecture 1 © Gunnar Wettergren

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