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  • Today project teams carry out everything from port expansions, to hospital restucturing, to upgrading information systems. Endeavors such as, providing emergency aid to a region devastated by a hurricane or flood; devising a strategy for reducing crimewithin a city; organizing a community effort to renovate a historic site; organizing an (annual) music festival; would and do benefit from the application of modern project management skills and techniques. Some successful projeicts hidden in the headlines Nintendo64 games instant success in Christmas market; 5000 years old Egyptian temples relocated at Abu Simbel.
  • A singular purpose, such as, Constructing a 12 story apartment complex by January of 2003; Releasing version 2 of a specific software package; is often lacking in daily organizational life in which workers perform repetitive operations. Having definite endpoints is contrary to the ongoing duties and responsibilities of traditional jobs. Classic organizational work is segmented according to functional speciality, whereas projects typically require the combined efforts of a variety of specialists. Even basic construction projects that involve established set of routines and procedures, require some degree of customization that makes them unique. Projects are generally evaluated according to what was accomplished, what it cost and how much time it took. These triple constraints impose a high degree of accountability than is found in most classic jobs or functions.
  • A singular purpose, such as, Constructing a 12 story apartment complex by January of 2003; Releasing version 2 of a specific software package; is often lacking in daily organizational life in which workers perform repetitive operations. Having definite endpoints is contrary to the ongoing duties and responsibilities of traditional jobs. Classic organizational work is segmented according to functional speciality, whereas projects typically require the combined efforts of a variety of specialists. Even basic construction projects that involve established set of routines and procedures, require some degree of customization that makes them unique. Projects are generally evaluated according to what was accomplished, what it cost and how much time it took. These triple constraints impose a high degree of accountability than is found in most classic jobs or functions.
  • Definition : Specifications of the project are defined; project objectives are established; teams are formed; major responsibilities are assigned. Planning : The level of effort increases; plans are developed to determine what the project will entail, when it will be scheduled, who it will benefit, what quality lmevel should be maintained, what the budget will be. Execution : A major portion of the physical and mental project work takes place at this stage. The physical product is produced (bridge; report; software program, movie). Time, cost and specification measures are used for control (through questions such as: is the project on schedule, on budget and meeting specifications? what are the forecasts of each of these measures?) Revision/changes in plans are made and implemented. Delivery : This stage includes two major activities: Delivering the product produced to the customer (including customer training and transferring documents); Redeploying project resources (i.e. releasing project equipment / materials to other porject, and finding new assignments for project team members) Since most organizations have a portfolio of projects going on concurrently, each at a different stage of its life cycle, careful planning and management at the organization and project level are imperative.
  • Planing Activities: Scope Planning; Resource Planning; Cost Planning; Quality Planning; Organizational Planning; CommunicationsPlanning; Risk Management Planning; Procurement Planning. Control and Monitoring Activities Scope and Change Control; Schedule Control; Cost Control; Quality Control; Risk Monitoring and Control;
  • Planing Activities: Scope Planning; Resource Planning; Cost Planning; Quality Planning; Organizational Planning; CommunicationsPlanning; Risk Management Planning; Procurement Planning. Control and Monitoring Activities Scope and Change Control; Schedule Control; Cost Control; Quality Control; Risk Monitoring and Control;
  • Project Stakeholders: Parties involved in or affected by the project activities. Anyone wit a “Stake” in a project. Customers; Various end-users; Shareholders; Support and Maintenance Departments; Customer Service Representatives; Operations and Production Departments; Team Members; Sponsors; Functional Managers; Projject Managers.
  • Project Management Body of Knowledge is an inclusive term that describes the sum of knowledge within the profession of Project Management. Includes knowledge of proven, widely applied traditional practices; Innovative and advanced practices which may have seen more limited use. The Knowledge and Practices that are applicable to most projects, most of the time. Encompasses Planning, Organizing, Staffing, Executing, and Controlling the operations of an ongoing enterprise. Knowledge required to accomplish a project in a specific industrial, technical, or service area (e.g. construction, software development)
  • Project based management is sweeping aside traditional functional line management. Accordingly, project managers are filling the voids created by the extinction of middle management. Project managers generally possess only rudimentary technical knowledge regarding the project they are managing. Instead, they must orchestrate the successfull completion of the project, by inducing the right people, at the right time, to address the right issues and make the right decisions.
  • The technical side includes planning, scheduling, and controlling projects. Clear project scope statements are written to link the project and customer and to facilitate planning and control. Creation of the work break down structure facilitates planning and monitoring the progress of the project. WBS serves as a database that links all levels in the organization. Effects of project changes are documented and traceable. This integrated information approach can provide all project managers and the customer with decision information appropriate to their level and needs. In contrast with the orderly world of project planning, the second dimension involves the much messier, often contradictory and paradoxical world of implementation. It centers on creating a temporary social system within a larger organization that combines the talents of a divergent set of professionals. This dimension also involves managing the interface between the project and the external environment. Project managers must effect a project culture that stimulates teamwork, motivation and a capacity to quickly identify and resolve problems. Overall the manager must build a cooperative social network among a divergent set of allies with different standards, commitments, perspectives.
  • Improved Assessment and Mitigation of Project Risk Events; Clarification of and Alignment with Overall Organizational Goals.
  • Project Management is rapidly becoming a standard way of doing business. The future promises an increase in the importance and the role of projects in contributing to the strategic direction of organizations. Below are the major reasons of this development. Compression of the Product Life Cycle : Instantaneous, worldwide flow of information reduce competitive advantage of new products, which are more easily imitated. Computed-aided design and manufacturing have also forces radical changes in the product life cycle. In the world of high tech product development, a six month project delay can result in a 33% loss in product revenue share. Because of the rapid change in technology, time to market for new products with short life cycles has become important. Many organizations are relying on cross-functional project teams and project management methods to get new products and services to the market as quickly as possible. Glabal Competition : The transformation of national economies to one global economy has not only led to major technological innovations but also has created tremendous pressures on quality and cost. Quality management & improvement invariably involve project management Cost pressures have led to individuals being assigned responsibility to achieve a specific objective, within a given budget, and by a specified deadline. Knowledge Explosion : Today each area has increased in complexity, including materials, specifications, codes, aesthetics, equipment and required specialists. Not only has basic project work become more complex, requiring greater coordination, but existing products and services are also more complex.
  • Corporate Dowsizing : The last decade has seen a dramatic restructuring of organizational life. Middle management is a mere steleton of the past. In today’s flatter and leaner organizations, where change is constant, project management is replacing middle management as a way of ensuring that things get done. It is rare today to find any major project performed totally inhouse. Companies outsource significant segments of project work, and project managers have to manage not only their own people, but also their counterparts in different organizations. Increased Customer Focus : Customers no longer settle for generic products and services; they want customized products and services that cater to their specific needs. This mandate requires a close working relationship between the provider and the receiver. Project management is critical both to the development of customized products and services and to sustaining lucrative relationships with customers. Rapid Development of Third World Economies : International firms are scrambling to introduce their products and services to these new markets and many firms are using project management techniques to establish distribution channles, and foreign bases of operation. In these economies, the drive to revitalize inefficient industries and decrepit infrastucture, has opened a tremendous market for core project work in heavy construction, transportation, health and telecommunications.
  • Phase 1- Add Hoc Use : Often a specific project is picked in which timing or control is important, competitors are successfully using project management tools, or the company senses a lack of control on all its projects. Top management may have little or no involvement in the decision to use these tools. If failure results, the blame is placed on the tools, whereas the real cause is usually the lack of coordination between projects and resources. Phase 2 - Formal Application : Typical of this phase is the recognition that project management training is needed for every management level in the organization. The importance of multi-project scheduling is known; the need for quality control, time to market are recognized issues. The concept of a customer for each project is part of the organizational culture. Project managers are given more control over the projects; functional managers are less fearful of giving up power to project managers. Phase 3 - Project Driven Organizations : Project management is a part of the organizational culture. Top management is active in project selection and prioritizing projects. The organizational structure is shifted toward a project matrix and project teams with dedicated resources; resources are balanced across all projects by their priority. Projects are integrated with accounting. Evaluation and incentive systems are tied to individual contributions to the project team and the group effort of the project team. Training and policy manuals are written for each phase of the project life cycle. Termination of projects include a project audit and evaluation of time, cost, technical performance and management performance.
  • Today, in many organizations hundreds of projects are being implemented concurrently. In such a climate, sharing and prioritizing resources across projects becomes a major challange for the top management. Additionally, in many cases the organizational culture does not suppport small projects and control systems are nonexistant, even though a small project carry the same or more risk as do large projects. Small projects are perceived as having little impact on the bottom line because they do not demand large amounts of scarse resources and/or money. Because so many small projects are going on concurrently, and because the perception of inefficiency impact is small, measuring inefficiency is usually nonexistant. Unfortunately, many small projects soon add up to large amounts of tied up resources. So, a process to screen, evaluate and prioritize small projects becomes very much necessary.
  • In many organizations selection and management of projects fail to support the strategic plan of the organization. Strategic plans are written by one group of managers, projects are selected by another group and projects are implemented by another group. These independent decisions by different groups create a set of conditions leading to conflict, confusion and ultimately unsatisfied customers. In a well managed organization, development of a central mission, objectives and strategies depending on prevailing external and internal environmental factors are key management concern, and they are set to meet the needs of the customers. Implementing strategies is the most difficult step. Strategies are typically implemented through projects. The management almost always faces more project proposals than there are resources. The key is selecting those projects that make the largest and most balanced contribution to the objectives and strategies (and thus customers) of the organization. This means prioritizing projects so that scarse resources are allocated to the right projects.
  • In many organizations selection and management of projects fail to support the strategic plan of the organization. Strategic plans are written by one group of managers, projects are selected by another group and projects are implemented by another group. These independent decisions by different groups create a set of conditions leading to conflict, confusion and ultimately unsatisfied customers. In a well managed organization, development of a central mission, objectives and strategies depending on prevailing external and internal environmental factors are key management concern, and they are set to meet the needs of the customers. Implementing strategies is the most difficult step. Strategies are typically implemented through projects. The management almost always faces more project proposals than there are resources. The key is selecting those projects that make the largest and most balanced contribution to the objectives and strategies (and thus customers) of the organization. This means prioritizing projects so that scarse resources are allocated to the right projects.
  • Transcript

    • 1. Modern Project Management <ul><li>What is a Project </li></ul><ul><ul><li>A project is a complex, nonroutine one time effort limited by time, budget, resource and performance specifications designed to meet customer needs. </li></ul></ul><ul><ul><li>A project is a temporary endeavor undertaken to create a unique product or service. </li></ul></ul><ul><li>Project work is not limited to private sector. </li></ul><ul><ul><li>It is also a vehicle for solving social problems. </li></ul></ul><ul><li>Some Successful Projects Hidden in Headlines </li></ul><ul><ul><li>$200 Million TITANIC breaks box-office record; </li></ul></ul><ul><ul><li>Mars Lunar landing produces first pictures; </li></ul></ul><ul><ul><li>Chunnel celebrates five millionth customer. </li></ul></ul>
    • 2. Modern Project Management <ul><li>Major Characteristics of Projects </li></ul><ul><ul><li>An Established Objective ; </li></ul></ul><ul><ul><li>A Defined Lifespan with a beginning and an end; </li></ul></ul><ul><ul><li>Involvement of Several Departments & Professionals (usually); </li></ul></ul><ul><ul><li>Doing something that has Never Been Done Before (typically) ; </li></ul></ul><ul><ul><li>Specific Time , Cost and Performance Requirements. </li></ul></ul>
    • 3. Modern Project Management Comparison of Routine Work with Projects Routine, Repetitive Work Taking class notes Daily entering sales receipts into the accounting ledger Responding to a supply-chain request Practicing scales on the piano Routine manufacture of an Apple iPod Attaching tags on a manufactured product Projects Writing a term paper Setting up a sales kiosk for a professional accounting meeting Developing a supply-chain information system Writing a new piano piece Designing an iPod that is 2 X 4 inches, interfaces with PC, and stores 10,000 songs Wire-tag projects for GE and Wal-Mart
    • 4. Modern Project Management The Project Life Cycle <ul><li>The starting of a point is the moment the go ahead is given. </li></ul><ul><li>Project life cycle passes sequentially through 4 stages: </li></ul><ul><ul><li>Definition Stage : Specifications / Objectives / Teams / Responsibilities; </li></ul></ul><ul><ul><li>Planning Stage : Plans / Schedules / Quality Level / Budget; </li></ul></ul><ul><ul><li>Execution Stage : Physical & Mental Effort / Actual Product Produced / Controls / Revisions; </li></ul></ul><ul><ul><li>Delivery Stage : Delivery to Customer / Redeployment. </li></ul></ul>
    • 5. Modern Project Management The Project Life Cycle Definition Planning Execution Delivery Level of Effort Time 1. Goals 2. Specifications 3. Tasks 4. Responsibilities 5. Teams 1. Schedules 2. Budgets 3. Resources 4. Risks 5. Staffing 1. Status Reports 2. Control & Monitoring 3. Changes 4. Forecasts 5. Documentation 1. Train Customer 2. Transfer Documents 3. Release resources 4. Reassign staff 5. Lessons learned Project Life Cycle
    • 6. Modern Project Management The Project Life Cycle
    • 7. Modern Project Management <ul><li>Project Management </li></ul><ul><ul><li>Project Management is the application of Knowledge, Skills, Tools and Techniques to project activities in order to meet project requirements. </li></ul></ul><ul><li>The work typically involves </li></ul><ul><ul><li>Competing demands for: Scope,time, cost, risk, quality; </li></ul></ul><ul><ul><li>Stakeholders with differing needs and expectations; </li></ul></ul><ul><ul><li>Identified, and often progressive, requirements. </li></ul></ul><ul><li>Major Roles on a Project </li></ul><ul><ul><li>Customer / Owner / Sponsor; </li></ul></ul><ul><ul><li>Project Manager / Functional Manager; </li></ul></ul><ul><ul><li>Team Members / Stakeholders </li></ul></ul>
    • 8. Modern Project Management Project Management Body of Knowledge Generally Accepted Project Management Knowledge and Practice Application Area Knowledge and Practice General Management Knowledge and Practice
    • 9. Modern Project Management The Project Manager <ul><li>Project Managers perform the same functions as other managers. </li></ul><ul><ul><li>They plan, schedule, motivate and control. </li></ul></ul><ul><li>They manage temporary, nonrepetitive activities and often act independently of the formal organization. </li></ul><ul><ul><li>They are unique in that sense. </li></ul></ul><ul><li>They are expected to marshal resources to complete a project on time, on budget and within specifications. </li></ul><ul><li>They are the direct link to customer </li></ul><ul><ul><ul><li>They manage the interface between customer expectations and what is feasible and reasonable. </li></ul></ul></ul><ul><li>They must identify and learn from similarities between projects. </li></ul>
    • 10. <ul><li>Project Management Process has 2 dimensions. </li></ul><ul><ul><li>The Technical Side </li></ul></ul><ul><ul><li>Formal, Disciplined, Pure Logic parts of the process; Relies on the Formal Information System available. </li></ul></ul><ul><ul><ul><li>Scope, WBS, Schedules, Resource allocation; Budget, Reports </li></ul></ul></ul><ul><ul><li>The Socio-Cultural Side </li></ul></ul><ul><ul><li>Project Managers have to, </li></ul></ul><ul><ul><ul><li>Incite teamwork, motivation & capacity to identify/resolve problems; </li></ul></ul></ul><ul><ul><ul><li>Sustain political support of top management; </li></ul></ul></ul><ul><ul><ul><li>Assuage and shape expectations of customers; </li></ul></ul></ul><ul><ul><ul><li>Negotiate with their counterparts; </li></ul></ul></ul><ul><ul><ul><li>Monitor subcontractors. </li></ul></ul></ul>Modern Project Management The Project Manager
    • 11. Modern Project Management <ul><li>Why do Organizations Use Project Management </li></ul><ul><ul><li>Improved Communication among Project Participants; </li></ul></ul><ul><ul><li>Increased Understanding of the Project and its Purpose; </li></ul></ul><ul><ul><li>Ability to Define and Control Project Scope; </li></ul></ul><ul><ul><li>Ability to Identify, Monitor and Track Milestones; </li></ul></ul><ul><ul><li>Improved Project Risk Management; </li></ul></ul><ul><ul><li>Accurate Projection of Resource Requirements; </li></ul></ul><ul><ul><li>Capability and Mechanisms to Measure Performance; </li></ul></ul><ul><ul><li>Identification & Communication of Problem Areas; </li></ul></ul><ul><ul><li>Clarification - Alignment with Organizational Goals; </li></ul></ul><ul><ul><li>Prioritization of Functional and Project Activities. </li></ul></ul>
    • 12. Modern Project Management <ul><li>The Importance of Project Management </li></ul><ul><ul><li>Compression of the Product Life Cycle : Ease in imitation, rapid advances in technology, are reducing the life cycles of most products. Speed in reaching the market is becoming a competitive advantage. </li></ul></ul><ul><ul><li>Global Competition : Tremendous pressures on quality improvement and cost containment. PM, with its triple focus on time, cost and performance, is proving to be an efficient, flexible way to get things done. </li></ul></ul><ul><ul><li>Knowledge Explosion : Project complexity has increased the need to integrate divergent technologies. </li></ul></ul>
    • 13. Modern Project Management <ul><li>The Importance of Project Management </li></ul><ul><ul><li>Corporate Downsizing : In today’s flatter and leaner organizations, PM is replacing middle management as a way of ensuring that things get done. </li></ul></ul><ul><ul><li>Increased Customer Focus : Customers want customized products and services that cater to their specific needs. </li></ul></ul><ul><ul><li>Rapid Development of Third World Economies : Establishment of distribution channels & operation bases are best accomplished through PM techniques. </li></ul></ul><ul><ul><ul><li>There is also a big market for core project work (construction, transportation, health, telecommunications). </li></ul></ul></ul>
    • 14. Modern Project Management <ul><li>The Evolution of Project Management Systems </li></ul><ul><ul><li>Phase 1 - Ad Hoc Use : An individual department initiating the use of one or more of the basic PM tools; </li></ul></ul><ul><ul><li>Phase 2 - Formal Application : Various inadequacies & needs are recognized as barriers to project success. </li></ul></ul><ul><ul><li>Phase 3 - Project Driven Organizations : With a long run outlook, the top management playing a significant role in setting strategy, in developing a balanced portfolio of project, and in setting project priorities. </li></ul></ul><ul><li>It is usually not practical to leapfrog to the last phase. Movement through these phases can be incremental </li></ul>
    • 15. Modern Project Management <ul><li>Small Projects Represent Big Problems </li></ul><ul><ul><li>In many organizations hundreds of projects are being implemented concurrently. </li></ul></ul><ul><ul><li>But since small projects are perceived as having little impact on the bottom line, measuring their inefficiency is usually nonexistent. </li></ul></ul><ul><ul><li>Unfortunately, many small projects soon add up to large amounts of tied up resources. </li></ul></ul><ul><ul><li>So, a process to screen, evaluate and prioritize small projects becomes very much necessary. </li></ul></ul>
    • 16. Modern Project Management <ul><li>An Integrative Approach </li></ul><ul><li>There is a need for an integrated PM process that focuses all project effort toward the strategic plan and facilitates the mastery of both PM tools/techniques and the interpersonal skills needed to orchestrate successful project completion. </li></ul><ul><ul><li>Piecemeal priority systems fail to prioritize project selection to resources and to projects that contribute most to the strategic plan; </li></ul></ul><ul><ul><li>Piecemeal tools and techniques fail to be integrated throughout the project life cycle; </li></ul></ul><ul><ul><li>Piecemeal approaches fail to balance the application of project planning/control tools & methods with appropriate adjustments in the organization’s culture; </li></ul></ul>
    • 17. <ul><li>In a well managed organization, development of a mission, objectives and strategies, depending on external & internal environmental factors, are key management concerns . </li></ul><ul><ul><li>External environmental factors can be classified as political, social, economic, and technological; </li></ul></ul><ul><ul><li>Internal environmental factors are strengths & weaknesses such as management, facilities, core competencies, and financial condition. </li></ul></ul><ul><ul><li>These factors signal opportunities or threats in setting the direction for the organization. The outcome of their analysis is a set of strategies designed to best meet the needs of the customers. </li></ul></ul><ul><li>Strategies are implemented through projects. The key is selecting those projects that make largest & most balanced contribution to objectives and strategies of the organization. </li></ul>Modern Project Management Integration of Projects with the Strategic Plan
    • 18. Modern Project Management Overview

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