The world of project management Ch01

The World of project management

Moustafa Mohamed Ali

Mo’men Mohamed Ibrahim

Mohamed Megahed Khalaf

Mina Abdo Hakeem

Key Points

• What is a project ?

• Project management VS General management

• The three goals of a project

• The life cycle of a project

• Selecting projects to meet organizational goals

• Management of risk

• Project portofilio process

What is a project ?

• According to PMI project is “ A temporary endeavor undertaken to

create a unique product or service ” (Project Management Institute, 2008).• Characteristics of a project

• Unique

• Have Scpecfic Deliverable

• Timely

• Why a project ?• To fix the reponsability and authority to achieve organizational goals on an individual

Common Characteristics of Projects

• Multidisciplinary .

• Complex : People with different kinds of Knowledge.

• Conflict • The budget, schedule and specfication

• Client desires and project team.

• Between project team’s members.

PROJECT MANAGEMENT VS. GENERAL MANAGEMENT

PROJECT MANAGEMENT GENERAL MANAGEMENT

Everything is an exception Manage by exception

Project Manager must be creative , flexible and problem solver

It just need a good project manager

Scope(Project deliverables ) and due date determine its plan

Need a good planning to achieve success

It can cross the organization boundaries

Rarely crossing organizational boundaries

Projects’ budget start from scratch It’s modified from the previous budget

Negotiation

• Why ?• So that PM can get the cooperation of other departments in the

organization to supply him with technology, information , resources … etc

• Win-Lose situations • Like buying a car or a house the less you pay the less profit the

seller gets.

• Win-Win situations• It’s a mandatory within the organizations.

The three goals of a project

Life Cycle of a project (Cont.)

• S Shape goes from SLOW Start to Fast Then Slow

Life Cycle of a project

• J Shape goes from SLOW to Fast

Selecting projects to meet organizational objectives

• There are two primary methods for selecting a project• Nonnumeric selection

• Numeric selection

Nonnumeric Selection Methods

• The Sacred Cow

• The Operating Necessity

• Is it necessary .. !?

• Comparative Benefits

• Divide these project to categories like (Good – Fair – Poor ) if a one group have more than 8 projects keep dividing like (Good plus – Good minus ) till no groups have more than 8 projects.

Numeric selection

• Financial Assessment Methods

• The payback period

• net present value (NPV)

• Financial Options and Opportunity Costs

• Scoring Methods

• the weighted factor scoring method.

THE MANAGEMENT OF RISK

• uncertainties found during projects :• Project completion time

• the availability and costs of key resources

• the timing of solutions to technological problems

• a wide variety of macroeconomic variables

• the whims of a client

• the actions taken by competitors

Simulation VS analytic modelsin real world problems

• Risk Analysis with Crystal Ball• Assumption Cells

• Distribution Gallery

• Forecast Cells

Project portofilio process

• Project portofilio process (PPP) attempts to link the organization ’ s projects directly to the goals and strategy of the organization.

Steps for The Project Portfolio Process(CONT.)

• Establish a Project Council• The main purpose of the Project Council is to establish and articulate a strategic

direction for projects.

• Identify Project Categories and Criteria• The task in this step is to list the goals of each existing and proposed project.

• Collect Project Data• For each existing and proposed project assemble the data appropriate to that

category‘s criteria.

• Assess Resource Availability• assess the availability of both internal and external resources.

Steps for The Project Portfolio Process(CONT.)

• Reduce the Project and Criteria Set• In this step, multiple screens are employed to reduce the number of competing

projects.

• Prioritize the Projects within Categories• Apply the scores and criterion weights to rank the projects within each category.

• Select the Projects to Be Funded and Held in Reserve• The first task in this step is to determine the mix of projects across the various

categories (and aspects, if used) and time periods. Next, be sure to leave some percent (the common 10 – 15% is often insufficient) of the organization ’ s resource capacity free

Steps for The Project Portfolio Process

• Implement the Process• The first task in this final step is to make the results of the PPP

widely known, including the documented reasons for project cancellations, deferrals, and non selection as was mentioned earlier

Case Study

United Screen Printers

Introduction

• United Screen Printers (USP) produces a wide range of decals for displaying promotional messages on fleet vehicles vehicles(including delivery vans, eighteen - wheelers, and aircraft).

• Although it is one of the oldest forms of printing, screen printing is superior to most of the more modern approaches..why ?!!!• Screen printing works by blocking out areas on a silk screen .

Problem

• USP is about to begin its annual evaluation of proposed projects. Six projects have been proposed as described .

• USP currently has annual sales of approximately $7 million. It typically allocates up to 10 percent of sales to these types of projects.

1-Purchase new large press

• There is currently a three - and - a-half to four - week backlog in the screen printing department

• USP ’ s total lead - time is 4 to 6 weeks instead of average lead - time of 3.5 to 4 weeks (13 % early – 38% on time -49 %late) , 75 percent of the backlog is waiting for press 6.

• press 6 is in dire need of replacement parts but USP has been unable thus far to locate a source for these parts .

• cost for purchasing a new large press is $160,000

• Achieve jobs 50 % to 100 % faster than press 6, the payback period for a new large press would be one year.

2-Build new headquarters

• company needs to have a strong corporate identity.

• improve operating efficiencies.

• Cost $4 million so too risky !! increase the company ’ s debt.

3-Pursue ISO 9000 certification

• Customers assurance .

• improve its processes .

• $250,000 to $300,000 and would take one year to complete