Project M 1

PowerPoint Presentation

Project ManagementResource PersonDr. Syed Amir Iqbal

A little about me:2Project ManagementDr. Syed Amir IqbalBachelors in Mechanical Engineering, NED UETMasters in Mechanical Engineering (Specialization in Manufacturing Systems), NED UETDoctor of Philosophy, Mechanical Engineering, The University of Manchester, UKWorking / Tecahing Experience:Over 20 years of (combined field and teaching) experience.

29/13/2014Dr. Syed Amir IqbalProject Management3Lets see WHO is sitting nextDr. Syed Amir IqbalProject Management4Recommended BooksBook : Project Management: A Systems Approach to Planning, Scheduling, and ControllingAuthor : Dr. Harold KerznerEdition : 11th or 10th Publishers : Wiley & Sons

Book : A Guide to the Project Management Body of KnowledgeAuthor : MiscellaneousEdition : 5th Publishers : PMI

Book : Project Management Case StudiesAuthor : Dr. Harold KerznerEdition : 2nd Publishers : Wiley & Sons

Book : PMP Exam PrepAuthor : Rita Mulcahy et. al.Edition : 8th Publishers : RMCPublicationsClass Room DecorumProject Management class is an open discussion forum, where students can add their experiences or raise queries. During discussions, resource person will act as moderator. Punctuality of time is necessary to validate the attendance, else it will be marked absent.One Break will be allowed.Mobile phone ringtones should be on silent.Food, smoking and Drinks not allowed.Submission of assignments and conduction of tests will be on prescribed dates.Assignments must be submitted with the Assignment Format uploaded on one-drive.Dr. Syed Amir IqbalProject Management5Course ContactConsulting Time: Before and after class Consulting Office: Faculty Lounge, IoBMe-mail: [email protected] drive folder:Will announce later. (for lecture slides)

Dr. Syed Amir IqbalProject Management6Sessional MarksSessional Marks60Hourly Exams30Presentation /Assignments20Class participation05Attendance05Final Examination Marks 40

Dr. Syed Amir IqbalProject Management7Course ContentsIntroduction to Project Management Project Management Growth Stakeholders and Organizational StructureProject Human RecourseProject Management Processes Project Integration ManagementDr. Syed Amir IqbalProject Management8Project Scope ManagementProject Time Management (Networking and Scheduling)Project Cost ManagementProject Management tools (MS-Project)Project Risk ManagementCourse ObjectivesClear understanding of project management, its scope, responsibilities and limitation.Knowledge of organization behavior, culture and influence on the project management.Development of Project Life Cycle from planning and initialization to the closure.Understanding and implementation of time, cost, risk and scope management processes during the project management.Dr. Syed Amir IqbalProject Management9Dr. Syed Amir IqbalProject Management10Topic # 1

Introduction to Project ManagementResource Person:Dr. Syed Amir Iqbal.Visiting FacultyInstitute of Business ManagementDr. Syed Amir IqbalProject Management11Project & Project ManagementDr. Syed Amir IqbalProject Management12

Project Management is used in all industries, at all levels

Dr. Syed Amir IqbalProject Management13Project CharacteristicsHave a specific objective (which may be unique or one-of-a-kind) to be completed within certain specifications.Have defined start and end dates.Have funding limits (if applicable).Consume human and nonhuman resources (i.e., money, people, equipment).

Be multifunctional (cut across several functional lines).

Dr. Syed Amir IqbalProject Management14Definition of ProjectA project is a temporary endeavor undertaken to create a unique product, service or result. Temporary means that every project has a definite beginning and a definite endProjects involve creating something that has not been done in exactly the same way before and which is, therefore, unique and distinctDefinition of ProjectDr. Syed Amir IqbalProject Management15According to Kerzner;A project can be considered to be any series of activities and task that:Have specific objective to be completed within certain specifications,Have definite start and end dates,Have funding limits (if applicable),Consume human and non-human resources,Are multi-functional (cut across several functional lines).

Definition of ProjectDr. Syed Amir IqbalProject Management16According to PMBOK;A project is a temporary endeavor undertaken to create a unique product, services or result.Temporary does not refers to short duration but means definite beginning and end dates.E.g. Building a national monument construction time is limited but result expected to last for centuries.Unique means new product, service or result.E.g. Constructing buildings - similar activities, materials, teams but each building has new design, location, situation and stake holder.

Project AttributesUnique objective,Temporary,Developed using progressive elaboration,Requires resources, often from various areas,have a primary customer or sponsor,Involves uncertainty.

Dr. Syed Amir IqbalProject Management17Project ExamplesDeveloping a new product, service, or result;Effecting a change in the structure, processes, staffing, or style of an organization;Developing or acquiring a new or modified information system (hardware or software);Conducting a research effort whose outcome will be aptly recorded;Constructing a building, industrial plant, or infrastructure; orImplementing, improving, or enhancing existing business processes and procedures.Dr. Syed Amir IqbalProject Management18Portfolio, Program and ProjectDr. Syed Amir IqbalProject Management19PortfolioProgramProjectDefinitionA collection of projects or programs and other work that are grouped together to facilitate effective management of that work, to meet strategic businessobjectives.A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually.A Project is a temporary endeavor undertaken to create a unique, product, service, or result.ExamplesTo maximize the return on investment - infrastructure firm may put together a portfolio that includes a mix of projects in oil & gas, power, water, roads, railways etc.Transportation program

Power sector program

Extraction ProgramSpecific highway projectLocal railway projectWind power projectHydro power projectsNuclear plant projectsCoal and other mining projectsPortfolio, Program and ProjectDr. Syed Amir IqbalProject Management20

Dr. Syed Amir IqbalProject Management21Projects Vs. OperationsProjects and operations sometimes overlap and they share many of the same characteristics:Performed by peopleConstrained by limited resourcesPlanned, executed and controlledOperations are ongoing and repetitive, while projects are temporary and uniqueProject objectives are fundamentally different than operational objectives:Purpose of a project is to attain its objective and terminatePurpose of an ongoing operations is to sustain businessDr. Syed Amir IqbalProject Management22OperationRepeat process or productSeveral objectivesOn-goingPeople are homogeneousSystems in place Performance, cost, & time knownPart of the line organizationBastions of established practiceSupports status quoProjectNew process or productOne objectiveOne shot limited lifeMore heterogeneousSystems must be createdPerformance, cost & time less certainOutside of line organizationViolates established practiceUpsets status quoProjects Vs. OperationsProject Vs. OperationsDr. Syed Amir IqbalProject Management23

ExerciseWhy Project Management ?Identification of time limits for schedulingEarly identification of problemsImproved estimating capabilityIdentification of functional responsibilitiesMinimizing the need for continuous reportingMeasurement of accomplishment against plansDr. Syed Amir IqbalProject Management24

Why Project Management ?Always class or prestige gaps between various levels of management.Companies are made up of small operational islands that refuse to communicate for fear of giving up information, may strengthen their opponents.Project Managers responsibility is to get these islands to communicate cross-functionally toward common goals and objectives.

Dr. Syed Amir IqbalProject Management25

Project ManagementProject management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements.

Its both a science and an artPMI breaks it into:Process groupsKnowledge AreasProfessional and social responsibility

Dr. Syed Amir IqbalProject Management26Project ManagementProject management can mean different things to different people. Quite often, people misunderstand the concept because they have ongoing projects within their company and feel that they are using project management to control these activities. In such a case, the following might be considered an appropriate definition:

Dr. Syed Amir IqbalProject Management27Project management is the art of creating the illusion that any outcome is the result of a series of predetermined, deliberate acts when, in fact, it was dumb luck.

Project Management - DefinitionProject management is the planning, organizing, directing, and controlling of company resources for a relatively short-term objective that has been established to complete specific goals and objectives.

Furthermore, project management utilizes the systems approach to management by having functional personnel (the vertical hierarchy) assigned to a specific project (the horizontal hierarchy).Dr. Syed Amir IqbalProject Management28Classical/Project Management Dr. Syed Amir IqbalProject Management29Classical management have five functions or principles:PlanningOrganizingStaffingControllingDirecting

Project management have four functions or principles:PlanningOrganizingControllingDirecting

Project manager does not staff the project. Staffing is a line responsibility.The project manager requests specific resources, but the final decision to deliver resources will be taken by line managers.Project Management Constraints Dr. Syed Amir IqbalProject Management30Project management is designed to; manage or control company resources on a given activity, within time, within cost, and within performance. If the project is to be accomplished for an outside customer, then the project has a fourth constraint: good customer relations.

Project Management Constraints Dr. Syed Amir IqbalProject Management31ProjectResourcesTimeCostScopeQualityRiskCustomer SatisfactionProject DeliverablesDr. Syed Amir IqbalProject Management32Deliverables are outputs, or the end result of either the completion of the project or the end of a life-cycle phase of the project. Deliverables are measurable, tangible outputs and can take such form as:Hardware Deliverables: Hardware items, such as a table, a prototype, or a piece of equipment.Software Deliverables: Usually paper products, such as reports, studies, handouts, or documentation.Interim Deliverables: Either hardware or software deliverables and progressively evolve as the project proceeds. Such as interim reports.Project DeliverablesDr. Syed Amir IqbalProject Management33

Project ManagerDr. Syed Amir IqbalProject Management34Selection of project manager is based on;Manage or control company resourcesType of customer relationship,Size, nature and scope of deliverable,Dealing with Stakeholders.

Dr. Syed Amir IQbalProject Management35

Project Failures (Common Causes)Dr. Syed Amir IqbalProject Management36Only 28% of Projects Succeed! (ref. Standish group)Poor communicationsScope CreepPoor planningWeak business caseLack of management direction & involvementIncomplete specificationsMismanagement of expectations

Dr. Syed Amir IqbalProject Management37Stakeholders &Project Management MaturityStakeholdersDr. Syed Amir IqbalProject Management38Stakeholders are the people involved in or affected by project activities they may also exert influence over the project and its results Stakeholders include;the project sponsorproject teamsupport staffcustomersusersSuppliers and vendorsopponents to the projectSponsorProject ManagerFunctional ManagersOther Project MembersSeller/ Business PartnersCustomers/UsersProject Mgmt TeamOther StakeholdersPMOProject TeamProgram ManagerPortfolio ManagerDr. Syed Amir IqbalProject Management39

Stakeholders Influence, Risk & UncertaintyDr. Syed Amir IqbalProject Management40Risk and uncertainty are greatest at the start of the project. Decrease over the time as decisions are reached and as deliverables are accepted.Influence to the projects product, without significantly impacting cost, is highest at the start of the project and decreases as the project progresses towards completion.The cost of making changes and correcting errors typically increases substantially as the project approaches completion.

Project Manager Line Manager InterfaceDr. Syed Amir IqbalProject Management41Most companies have six resources:

MoneyManpowerEquipmentFacilitiesMaterialsInformation/technologyProject Manager Line Manager InterfaceDr. Syed Amir IqbalProject Management42Project manager does not control any of these resources directly, except money (i.e., the project budget).Resources are controlled by the line managers, functional managers, or, as they are often called, resources managers. Project managers must, negotiate with line managers for all project resources. Project managers control project resources (which are temporarily loaned to them) through line managers.Project Manager Line Manager InterfaceDr. Syed Amir IqbalProject Management43PMLMLMLMPM = Project ManagerAPM = Assistant Project ManagerLM = Line or Functional ManagerAPMAPMSPONSOR GMEffective Project ManagementDr. Syed Amir IQbalProject Management44A good daily working relationship between the project manager and those line managers who directly assign resources to projects.Ability of functional employees to report vertically to their line manager at the same time they report horizontally to project managers.PM is not designed to be a unity of command methodology. It is designed to have shared authority and responsibility between Project and Functional Managers.Maturity in Project ManagementDr. Syed Amir IQbalProject Management45Is like a TripodLegs represent:Project ManagerLine Manager(s)Executive Management (including, Project Sponsor)Maturity cannot exist without stabilityOPM3: (Organizational Project Management Maturity Model)PMIs model that is designed to help organizations determine their level of maturity in project management.

Project ManagerExecutivesLine ManagerDr. Syed Amir IQbalProject Management46Effective project managementORGANIZATIONALSTRUCTUREORGANIZATIONALBEHAVIORQUANTITATIVETOOLS &TECHNIQUES

Conflicts can destroy the entire project management system.

Project management is more behavioral than quantitative.Role of Project ManagerDr. Syed Amir IQbalProject Management47Project Managers have increasing responsibility, but very little authority.This lack of authority forces them to negotiate with upper level management as well as functional management.

Interface Management:Managing human interrelationships in the project organization.Maintaining balance between technical and managerial project functions.Coping with risk associated with project management.Surviving organizational restraints.

Role of Project ManagerDr. Syed Amir IQbalProject Management48

The project manager is responsible for coordinating and integrating activities across multiple, functional lines.the project manager must convert the inputs (i.e., resources) into outputs of products, services, and ultimately profits.Role of Functional ManagerThe functional manager has the responsibility to define how the task will be done and where the task will be done (i.e., the technical criteria).The functional manager has the responsibility to provide sufficient resources to accomplish the objective within the projects constraints (i.e., who will get the job done).The functional manager has the responsibility for the deliverable.


Role of Executive/SponsorsExpected to interface a project in:

Project planning and objective setting Conflict resolution Priority setting Project sponsor


Role of Executive/SponsorsDr. Syed Amir IQbalProject Management51RELATIONSHIP

Project TeamProjectManagerProjectSponsorProjectManagerProject SponsorLower Middle ManagementProject SponsorSenior ManagementObjective settingUp-front planningProject organizationKey staffingMaster planningPolicesMonitoring executionPriority ProjectsMaintenance ProjectsDr. Syed Amir IQbalProject Management52Project Manager As the Planning AgentPlanning AgentFew projects are ever completed without some conflict or trade-offs for the project manager to resolve.The project manager provides overall or summary definitions of the work to be accomplished, but the line managers (the true experts) do the detailed planning.As the architect of the project plan, the project manager must provide:Complete task definitionsResource requirement definitions (possibly skill levels)Major timetable milestonesDefinition of end-item quality and reliability requirementsThe basis for performance measurement

Dr. Syed Amir IQbalProject Management53Functional Employees ConcernsProject managers cannot make any promises to a functional employee concerning:PromotionGradeSalaryBonusOvertimeResponsibilityFuture work assignments

Dr. Syed Amir IQbalProject Management54Downside Of Project ManagementCharacteristics of the workaholic project manager include:

Every Friday he thinks that there are only two more working days until Monday.At 5:00 P.M. he considers the working day only half over.He has no time to rest or relax.He always takes work home from the office.He takes work with him on vacations.

Dr. Syed Amir IQbalProject Management55Project-driven Versus Nonproject-driven OrganizationsOn micro level, virtually all organizations are either marketing, engineering, or manufacturing-driven.But on the macro level, organizations are either project- or nonproject-driven.In a project-driven organization, everything centers around the projects. (such as aerospace, construction etc.)Priority resources are assigned to the revenue-producing functional line activities rather than the projects in non-project driven organizations. (such as automotive assembly line, power plants).

Dr. Syed Amir IQbalProject Management56Project-driven Versus Nonproject-driven OrganizationsProject management in a nonproject-driven organization is generally more difficult for these reasons:Projects may be few and far between.Not all projects have the same project management requirements, and therefore they cannot be managed identically. This difficulty results from poor understanding of project management and a reluctance of companies to invest in proper training.Executives do not have sufficient time to manage projects themselves, yet refuse to delegate authority.

Dr. Syed Amir IQbalProject Management57Project-driven Versus Nonproject-driven OrganizationsProject management in a nonproject-driven organization is generally more difficult for these reasons:Projects tend to be delayed because approvals most often follow the vertical chain of command. As a result, project work stays too long in functional departments.Because project staffing is on a local basis, only a portion of the organization understands project management and sees the system in action.There is heavy dependence on subcontractors and outside agencies for project management expertise.

Dr. Syed Amir IQbalProject Management58The Tip-of-the-iceberg Syndrome Dr. Syed Amir IQbalProject Management59

Classification Of Projects/CharacteristicsDr. Syed Amir IQbalProject Management60

Location Of The Project ManagerDr. Syed Amir IQbalProject Management61Two questions must be answered:What salary should the project manager earn?To whom should the project manager report?Ideally project managers should be at the same pay scale as the people they negotiate.Location depends upon:Type of organizationResponsibility

High-Level ReportingProject Manager:is charged with getting results from the coordinated efforts of many functions. He should, therefore, report to the man who directs all those functions.must have adequate organizational status to do his job effectively.needs direct access to an upper echelon of management to get adequate and timely assistance in solvingIf reports to a high echelon then customer, particularly in a competitive environment, will be favorably impressed.Dr. Syed Amir IQbalProject Management62Low-Level ReportingInefficient to have too many projects, especially small ones, diverting executives from more vital concerns.

Although giving a small project a high place may create the illusion of executive attention, its real result is to foster executive neglect of the project.

Placing a junior Project Manager too high in the organization will alienate senior functional executives on whom the organization must rely for support.


Documents

Project M 1