PM Introduction Chapter 1

8/6/2019 PM Introduction Chapter 1

1/45

Introduction to Projects and

Project management


2/45

2

What Is a Project?

A project is a temporary endeavor undertaken

to create a unique product, service, or result.

Operations is work done to sustain the business.

A project ends when its objectives have been

reached, or the project has been terminated.

Projects can be large or small and take a short

or long time to complete.


3/45

What Is a Project?

A temporary endeavor undertaken to create

a unique product or service.*

*2000 PMBOK Guide (p. 4).

Term Mean s th a t a Pro j ect

tempo rary Has a beg i nn i ng and end

endeavo r Invo l ves e ffo rt, work

to create Has an i ntenti on to p roduce someth i ng

(proj ect "del iverab les"

u ni q ue On e o f a k in d , ra th er th an a co ll ecti on of

identical i tem s

p ro duct Tang i b l e o b jects, bu t co u ld i n cl u de th i ngs l ik e

com pu ter software, f i lm or stag e works

servi ce M igh t i n cl u de th e e sta b li shmen t o f a day-ca re

center, for in stance, b ut not its dai ly

operat ions.


4/45

4

Project Stakeholders

Stakeholders are the people involved in oraffected by project activities.

Stakeholders include: Project sponsor Project manager Project team Support staff Customers

Users Suppliers Opponents to the project


5/45

5

History of Project Management

Some people argue that building the Egyptianpyramids was a project, as was building theGreatWall of China.

Most people consider the Manhattan Project tobe the first project to use modern projectmanagement.

This three-year, $2 billion (in 1946 dollars) project hada separate project and technical managers.


6/45

6

Advantages of Using Formal

Project Management

Better control of financial, physical, and humanresources.

Improved customer relations.

Shorter development times. Lower costs. Higher quality and increased reliability. Higher profit margins.

Improved productivity. Better internal coordination. Higher worker morale (less stress).


7/45

7

Project Success Factors

1. Executive support

2. User involvement

3. Experienced project manager

4. Clear business objectives

5. Minimized scope

6. Standard software

infrastructure

7. Firm basic requirements

8. Formal methodology

9. Reliable estimates

10. Other criteria, such as small

milestones, proper planning,

competent staff, and

ownership


8/45

Project Management Knowledge

Areas


9/45

Nine Project Management Knowledge

Areas

1. Integration Management

2. Scope Management

3. Time Management

4. Cost Management

5. Quality Management

6. Human Resource Management

7. Communications Management8. Risk Management

9. Procurement Management


10/45

#1Project Integration Management

Bringing it All Together:

Building the Project Plan

Project Execution Integrated Change Control

Project Management Nerve Center


11/45

#2Project Scope Management

Staying Vigilant in Defining and Containing

Scope throughout the Project

Project Initiation

Scope Planning

Scope Definition

Scope Verification

Scope Change Control


12/45

#3Project Time Management

DeterminingWhat Gets Done and When

through:

Activity Definition

Activity Sequencing

Activity Duration Estimating

Schedule Development

Schedule Control


13/45

#4Project Cost Management

Planning for Resources

Estimating Costs

Creating the Budget Managing/Controlling

the Budgets


14/45

#5Project Quality Management

Quality Planning

Quality Assurance

Quality Control


15/45

#6Project Human Resource

Management

Organizational Planning

Staff Acquisition

Team Development


16/45

#7Project Communications

Management

Keeping Stakeholders Informed

(and Involved!)

Communications Planning

Dissemination of Information

Progress Reporting

Administrative Closure


17/45

#8Project Risk Management

Expect the Unexpected!

Risk Management Planning

Risk Identification Qualitative Risk Analysis

Quantitative Risk Analysis

Risk Response Planning

Risk Management and Control


18/45

#9Project Procurement

Management

For Projects Using Outside Resources:

Procurement Planning

Solicitation Planning Solicitation

Source Selection

Contract Administration

Contract Closeout


19/45

Characteristics of Project

Objective

Life cycle

Conception

Design

Implementation

commissioning

Defined time limit

Uniqueness

Team work


20/45


21/45

Rational choice

Principle of succession

Optimality Control mechanism

Multi-disciplinary

Conflicts Part of large programme


22/45

22

The Role of the Project Manager

Job descriptions vary, but most include

responsibilities such as planning, scheduling,

coordinating, and working with people to

achieve project goals.

Remember that 97 percent of successful

projects were led by experienced projectmanagers.


23/45

23

Define scope of project.

Identify stakeholders, decision-

makers, and escalation

procedures.

Develop detailed task list (work

breakdown structures).

Estimate time requirements.

Develop initial project

management flow chart.

Identify required resources and

budget.

Evaluate project requirements.

Identify and evaluate risks.

Prepare contingency plan.

Identify interdependencies.

Identify and track critical milestones. Participate in project phase review.

Secure needed resources.

Manage the change control process.

Report project status.

Fifteen Project Management Job

Functions


24/45


25/45


26/45

26

Suggested Skills for Project Managers

Communication skills: Listens, persuades.

Organizational skills: Plans, sets goals, analyzes.

Team-building skills: Shows empathy, motivates, promotes espritde corps.

Leadership skills: Sets examples, provides vision (big picture),delegates, positive, energetic.

Coping skills: Flexible, creative, patient, persistent.

Technology skills: Experience, project knowledge.


27/45

27

Most Significant Characteristics of Effective

and Ineffective Project Managers

Leadership by example

Visionary

Technically competent Decisive

Good communicator

Good motivator

Stands up to uppermanagement whennecessary

Supports team members

Encourages new ideas

Sets bad example

Not self-assured

Lacks technical expertise Poor communicator

Poor motivator

Effective Project Managers Ineffective Project Managers


28/45

The Triple Constraint


29/45

The Triple Constraint

OR, INPLAIN

ENGLISHFast Cheap

Good

Cost

Quality/Scope

Time


30/45

Triple Constraint Trade-Offs

Cost

Quality/Scope

Cons t r a i n t

C h a n g e

Shorter Tim e Hig her Cost Reduced Qual i ty o r Narrowed

Scope

Reduced Cost More Tim e Reduced Qual i ty o r NarrowedScope

Hig her Qual ity or

Increased Scope

More Tim e Hig her Cost

Requ i r e d Ad j u s tm en t A l te r n a t i ve s (One o r

Com b i n a ti o n o f Bo t h )


31/45

Triple Constraint: Setting Priorities

Co n str a i n t 1 2 3 M ea su rem en tTim e

Cost

Quality/Scope

Pr i o r i t y Ma t r i x

Must be set by customer and sponsor near startup.

May change over time, but a change is a significant event!

If these are the established priorities and measurements, what are

some of the implications for the project if the project starts running late

or shows signs of exceeding budget?

C o n s tr

i n t 1 2 3 M e a s u r e m e n t

Tim e XBu i l d in g m ust

e o m p leted

t ober 3 1 o f th is ea r to

accom m o d a te co rp o ra te m ove.

Cost X Costs fo r th ep rojectm ustn o texceed $2 2 . 5 m i l l io n .

Qu a l i ty/Scope XMustp ro vi d e o rkspace fo r 1 2 0 ca l l

center sta ff.

Ex am p l e o f a C o m p l e t e d Pr i o r i ty M a tr i x f o r a C o n s tr u ct i o n Pr o j e c t


32/45

Project Selection


33/45


34/45

Sacred Cows and Pressing Needs

Sacred Cow selectionSenior Management wants it!(it may often turn out well; many visionary projectsstart here)

Business opportunity (make more $$$)

Savings potential (save $$$) Keeping up with competition (example, many e-commerce projectswere in response to competitors initiatives)

Risk management (examples: disaster recovery initiatives, Y2K)

Government or regulatory requirements

URGENT!!!


35/45

First Selection CriterionSanityCheck: Does the project fit in with the stated goals of the

organization?

Which of the following meet this criterion? Why or why not?

An environmental group proposes a project to raise money by sellingaerosol cans of a powerful new pesticide.

A video store chain proposes to develop a web site for ordering anddistributing videos.

A bank offers a free rifle to anyone opening a new savings account.

A restaurant equipment manufacturer decides to introduce a line ofhigh-end refrigerators for the consumer market.


36/45

Selection ToolsN u m e r i c e th o d Descr i p ti o nPaybackPeriod Determ ineshow uicklyap ro ject

recoupsi tscosts

NetPresent Value Estim atesthecurrentworth o f

anticipated cash fl owsresult ing from

th ep ro ject

Unweighted election Scoresmult ip lep ro jectsaga instase t

o f selectioncriteria, with al l criteria

be ing equal

Weighted Selection Scoresmult ip lep ro jectsaga instase t

o f selectioncriteria, with each

criterion assigned anumer icwe igh t

PairwisePrio ri ties Rank order ing anumbe ro f candidate

p ro jectsbysystem atical lycompar ing onewith each o f theothers


37/45

Classification of projects

Based on the type of activity Industrial

Non-industrial

Based on location of the project National

International project Fully owned, joint ventures, M&A

Based on the completion time Normal

Crash

Based on ownership Private sector

Public sector

Joint sector


38/45

Based on size Small

Medium

Large

Based on need New projects

Balancing projects

Expansion projects

Modernization projects

Replacement projects Diversification projects

Backward integration

Forward integration


39/45

The Project Life Cycle

Gener l r f r ject ife cle

Phase 1 Phase 2 Phase 3 Phase... Phase " "

Pr ject


40/45

Project Life Cycles Are Like Snowflakes!

S im p le T h re e -P h a s e P r o je c t L i fe C y c le

In itia tio n E xe c u tio n C lo se -O u t

Pro jec t

Nine-Phase Project Life Cycle

Formulate Concept Evaluate Concept Verify Scope Design Construct Deploy Maintain Close

Project


41/45

Our Project Life CycleProject Life Cycle Used in this Workshop

Initiation Definition Planning Implementation Closure

Project

Ph a e Pu r e

In

a

n In

r

uce r jec

a

a n a

r va an crea

e r jec

char

er

e f n

n cumen

r jec

c e , e vera e , an m e

h f r

c n

a n n c e .

Plann n Crea

e lan

cumen

n

he ac

v

e re u re

c m le

e

he r jec

, a lon

h e uence o f a c

v

e ,

re ource a ne

o

he ac

v

e , an re u l tin

che u le an u e ts.

Im le m e n tati on Ex ecu te an mana e the lan , usin arti facts create in

the lann in hase .

Closure Fo rm a l ly revie the ro ject, inclu in lesso nslearne an

turnove r o f ro ject ocumen tati on .


42/45

Continuous Improvement

Initiation Definition Planning Implementation Closure

Project

LessonsLearned


43/45

A Word About Tools

Many people assume that project

management is all about

management software.

Thats like saying that residential

construction is all about hammers!

Such tools will often make your worksimpler and handle complex

calculations with ease.

However, without a solid

understanding of PM concepts, the

tools often provide an illusion of

project control that does not exist.

Learn the concepts, then the tool.


44/45


45/45

Project Assumptions

Almost every lesson includesthe reminder Dont Assume!!

Turn that around and make it

Document Assumptions! Dont expect others to read your mind.

Capture as many assumptions as possible to include in

your initial project charter.

D

ont be surprised if others do not share all yourassumptions. This is the time to resolve differences

before the project is underway!

Documents

PM Introduction Chapter 1