PM_Lecture_1_23_02_2012

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1Prof. Dr. Christian Marxt 2012

Lecture February 23, 2012

Project Management

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Overview

What is Project Management?- What is a project?- Successful and failed projects- Critical success factors of PM

Structure of the lecture- Agenda

- People- Administration

The Case- Content of the Case Study- Schedule

- Deliverables

Summary and Outlook

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What is a project?

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Working Definition Project I

A project is a temporary endeavor undertaken to create aunique product or service (PMI, PMBOK Guide, 2008)

A project is a temporary endeavor undertaken to create aunique product or service. Temporary means that theproject has an end date. Unique means that the project's

end result is different than the results of other functions ofthe organization.(en.wikipedia.org/wiki/Project)

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Characteristics of a Project

Supported purpose/importance

Performance specifications (form, fit, function)

Known (bounded) solution

Life cycle with finite due date

Interdependencies

Uniqueness

Resource requirements and tradeoffs

Stakeholder Conflict

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Other terms used in PM

Distinction between terms:

- Program - an exceptionally large, long-range objective that isbroken down into a set of projects

- Project- temporary endeavor

- Work Packages - division of tasks

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Strategy, Programs, Projects

Corporate strategy

Project 1

Program n

Project i

Project n

Project phases

Project phases

Project phases

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What is project management?

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Definition

Project Management:- The science and art of solving a given problem within

predetermined time and resource parameters (PMI, PMBOKGuide, 2008)

- Shouldering just enough risk to escape with your career

intact!!!

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Why is PM Important?

Traditional hierarchical management declining

Consensual management increasing

Increasing reliance on systems engineering

Projects integral to organizational strategy

Companies have experienced:

- Better customer relations

- Shorter overall delivery times

- Lower costs and higher profit margins

- Higher quality and reliability

- Higher worker morale

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Aspects of Project Management

Source: Meredith/Mantel Project Management 2005

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Phase Models

ProjectInitiation

ProjectStart

Project

Implementation

ProjectPlanning

ProjectCompletion

Feedback Loops

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Definition Planning Implementation Delivery

Levelof

effort

1. Goals

2. Specifications

3. Scope

4. Responsibilities

5. Teams

1. WBS

2. Budgets

3. Resources

4. Risks

5. Schedule

1. Status reports

2. Change Orders

3. Quality Audits

4. Contingencies

1. Train user

2. Transfer documents

3. Release resources

4. Reassign staff

5. Lessons learned


The Project Life Cycle

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Example of a Activity-on-Node with Critical Path


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Successful and Failed Projects

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Project Examples

Project Examples

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2012

Projects in Companies

Marketing

Human Resources

Information Management & Technology

Finance & Controlling

General Management

R&D Production Logistics Distribution

Based on value chain by Michael Porter

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2012

Successful Projects and Programs

Project Apollo

Human Genome Project

Airport Munich (Erdingermoos)

Introduction of EDOZ at ETH Zurich

KnowInnet

NUMMI

etc.

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2012

Already planned and started in the1990s

Technology Push Project

Professional PM

Several Vehicles in the US

Platform Technology also applied inLexus 400h

Toyota Hybrid Synergy Drive

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2012

NUMMI (New United Motors Manufacturing, Inc.)

Started in 1984 as a joint project between GM and Toyota.

Legally a joint venture

Successfully manufactured cars for 25 years.

Was shut down in 2010.

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2012

..............Climb

Planning and preparation:

approx. 3 years

Success rate: approx. 50%

Employees: approx. 150-200

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2012

Failed Projects

London Ambulance Airport Malpensa

German Toll System

Iridium (failed, back on track)

Many software projects

etc.

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Failed Software Projects: Examples

Source: http://www.spectrum.ieee.org/sep05/1685/failt1

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London Ambulance I

The major objective of the London Ambulance

Service Computer Aided Dispatch (LASCAD )project was to automate many of the human-intensive processes of manual dispatch systemsassociated with ambulance services in the UK.

Source: LAS inquiry

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London Ambulance II

LAS failed to follow the PRINCE Project Management Methodin the set up and operation of an Information Technology(IT) executive committee, project board, projectmanagement team and project assurance team; LondonAmbulance Service

Project management throughout the development andimplementation process was inadequate and at timesambiguous. A major systems integration project such as CADrequires full time. professional, experienced project

management. This was lacking.

Source: LAS inquiry

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Critical Success Factors of Projects

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CriticalSuccess Factors

Why Are Projects Successful?

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Overview





- Deliverables

Summary and Outlook

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Goals for the Lecture Series

You will understand the basics of successful PM

You are able to apply the concepts and methods ofPM in your day to day work

You are able to distinguish between good and badPM and are able to suggest improvements

You will contribute to projects in your organizationin a positive way

You will be able to plan, manageand execute projects successfully

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Tentative Program (1)

Lecture Nr. Date Content Lecture Content Case Study

1 23.02.2012 Introduction, Definition,Administration: Success Factors,

Example ProjectsIntroduction Case Study

2 01.03.2012 History of PM, Elements: ProjectPhases, PM Concepts and Models

3 08.03.2012 Project Start, Project Planning I:Project Ideas, Project Goals, Task,Contracts

Due Date: Project

Phases4 15.03.2012 Project Planning II: Structuring,

Scheduling, Resource Allocation5 22.03.2012 Project Planning III: Time, Cost,

Performance6 29.03.2012 Project Planning IV: Organization Due Date: WBS and

Schedule7 05.04.2012 Project Planning V: Risk

Management

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Tentative Program (2)

Lecture Nr.

Date

Content Lecture

Content Case Study

8 19.04.2012 Monitoring and InformationSystems Due Date: ProjectOrganization

9 26.04.2012 Project Control10 03.05.2012 Guest Lecturer: Project

Management in SME11 10.05.2012 Project Auditing and Project

Termination12 24.05.2012 Presentation Case Studies Due Date: Final Project Plan13 31.05.2012 Harvard Case Study and

Summary

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People

Prof. Dr. sc. techn. Christian Marxt

Chair of Technology and Entrepreneurship

Research areas:- Collaborative innovation in open innovation systems

Teaching areas:- Technology and Innovation Management

- Corporate Entrepreneurship

- Alliance Advantage

- Project Management

- Mixed Methods (PhD Program Liechtenstein)

Mag.rer.soc.oec. Markus Spiegel

Chair of Technology and Entrepreneurship

Research areas:- Complexity in technology oriented companies

Teaching area:- Introduction to General Management

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Type of Lecture

Presentation Interaction

Case Studies

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Administration

Administration

Assistant: Markus Spiegel

Email: [email protected]

Testat

On-time delivery of Case Study (final document)Active participation

Exam (for all students)

60 minutes written

No materials (except dictionary and calculator)

Prerequisite: case study accepted

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Documentation and Literature

Handouts Lecture slides

Additional Material

Case Study Material

Literature

Meredith, Jack R.; Mantel, Samuel, J.,: ProjectManagement: A Managerial Approach, 8th EditionInternational Students Version, New York: Wiley, 2012.

Project Management Institute: A Guide to the ProjectManagement Body of Knowledge: (PMBOK Guide); 2008.

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Overview





- Deliverables

Summary and Outlook

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Content of the Case Study

Introduction

Since 1896 the IOC is organizing the Olympic Gamestogether with local partners.

In 2012 the Summer Olympic Games will take place inLondon (www.london2012.com)

Task

Plan the opening ceremony. Take all important factors (e.g.organization, safety, catering, funding etc.) into account.Prepare a detailed project plan which will allow to executethe project.

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Administration

IMPORTANT Do not contact IOC or any other officials related to the

project in London or anywhere else!

Use information on the official websites, if necessary.

Groups

Form groups of max. 5 persons (no exceptions). Pleaseorganize yourself.

Send an email with an excel sheet with names and emailaddresses of all group members to Markus Spiegel

([email protected]) until Friday, March 2nd 2012.

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Schedule

The following dates are important:- 23.02.2012: Introduction

- 22.03.2012: Due date WBS

- 19.04.2012: Due date Schedule and project organization

- 24.05.2012: Due date final project plan and presentationof selected project plans

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Deliverables

Drafts:

- Document as email attachment to the assistant on the due date

- Make it readable. No rough-rough drafts.

- Feedback will be provided in the plenary session.

Final Report:

- Project report (electronic) with all necessary elements.- Word file with corresponding pdf of PM Software File (either MS

Project or freeware)

- An accepted final report is necessary prerequisite to the exam.

Software can be found on the web as freeware, if you haveno access to MS Project

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Success Factors of PM

Critical

Success Factors

Explicit principal

with vital interest in project success

Clear Project Goal

full ManagementCommitment

realistic

Planning of

Tasks

ResourcesCosts

Timeanticipation

of possible disturbances

People

Qualified

motivated

appropriate

project organization

professional

Project-Controlling

Luck!

adequate

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PM is key to company success. Projects are done in all parts of an organization.

Projects are new, risky and have a defined start and end.

There are several key success factors for projects.

PM is about managing people!

Next Lecture

Project management (History, PM Concepts, Project Phases)

Summary and Outlook

Documents

PM_Lecture_1_23_02_2012