THINK.CHANGE.DO Lecture 2: Project Management Context … · UTS:DESIGN, ARCHITECTURE AND BUILDING UTS CRICOS PROVIDER CODE: 00099F 15315 Project Management Principles Lecture 2:

UTS:DESIGN, ARCHITECTURE

AND BUILDING UTS CRICOS PROVIDER CODE: 00099F

15315 Project Management Principles Lecture 2: Project Management Context and Practice

THINK.CHANGE.DO

Ø  Project Management Context •  PM Beginnings & Trends

•  Defining Projects

•  Project Dimensions & Types

Ø  Project Management Practice •  Project Knowledge Areas

•  Organisational Structure and Culture

Agenda

2

Manhattan Project Organization Chart, 1946

First Powered Flight, 1903, Orville piloting, Wilbur

running at wingtip

Hoover Dam By-Pass Bridge, 2010 (1931-1936)

Pyramids at Giza, 2560 BCE

Generators inside Hoover Dam, 2011

3

Year Global Local1950s •  Builtonlarge-scalemilitaryprojects,suchas

Manha?anProject•  CriBcalPathMethod(CPM)andProject

EvaluaBonandReviewTechnique(PERT)•  USAFusedwidespreadjointprojectoffices

•  EarlyPMconceptsintroducedfromtheUSandUK,internallyandexternally

1960s •  CPMandPERTinconstrucBonanddefence•  Projectcostmanagementadded•  UBlisedresourceschedulingandlevelling•  IPMA(1965)andPMI(1969)formed

•  AdopBonofoverseasPMtechniques,suchasCPMtocontrolvalueandBme

1970s •  WBS,OBS,responsibilityassignmentmatrices,andearnedvaluespreading

•  OrganisaBonalstructuretosupportprojectmanagement(PMO’s?)

•  Managementofconflictonprojects•  APM(1972)formed

•  PMinminingsectorandeconomyshi\edfromagriculturaltoresources

•  ProjectManagersForum(PMF)formed(1976)

In the Beginning….

4

Year Global Local1980s •  1stediBonPMBOK(PMI–1987)

•  LifeCycle“cosBng”•  Frontendmanagement,needsanalysis,feasibility

studies,valueanalysisandriskmanagementtorealisebenefits

•  Stakeholdermgtandenvironmentalconstraints•  PMcerBficaBon/registraBonprograms

•  AwarenessofinternaBonalPMdevelopment

•  FormaDonoftheAustralianInsDtuteofProjectManagement(1989)

1990s •  Implementcorporatestrategiesandfinancial,ITandtelecommunicaDonssector

•  Project-BasedManagement•  WidespreadPMcomputer-basedtools•  MulBPMtechniques,leadingtoProgramandPorMolio

Management

•  ManagementbyProjects,partneringalliances,competencystandards,ethicsandRegPMcerBficaBon

2000s •  Largeandcomplexprojects•  CommunicaBonandcomputerliteracy•  Economicstructureshi\(GFC)•  EnvironmentalsensiBvity(globalwarming)

•  GFC,spliteconomybasedonminingandresources,focusonsustainability

•  IPMA(2009),APFPM(2010)

In the Beginning….

5

q $AUS 921 billion pipeline of existing and potential major capital projects (Business Council of Australia, 2012), across resources, manufacturing, retail, financial services, professional services and construction sectors.

© Chivonne Algeo

Project Management Trends

6

q Need to prepare for pipeline of growth as: q Australian project workforce productivity is

estimated to be 30% - 35% lower than for comparable projects in the United States

q 73,000 additional employees will be needed by 2014 to deliver Australia’s resources investments alone (Skills Australia, 2011)

q PM and executive leadership skills shortages in remote and regional environments (Skills Australia, 2011)

© Chivonne Algeo

Project Management Trends

7

q Aprojectis:q auniquesetofobjecBvesq definitestartpointandendpointq governedbyscope,costandBmegoalsq aimedtoachieveresultsanddisbandq acontracttoon-goingmanagement

What is a Project?

8

Management of the

Project

Inputs Business Needs Requirements

Outputs Deliverables

Product/Service

Constraints Time, Cost, Quality

Performance Legal

Environmental

Mechanisms Resources

Tools and Techniques Organization

A Systems View of PM

9

FIGURE 1.2

Larson, E.W. & Gray, C.F. 2011, Project Management: The Managerial Process, 5th edn., McGraw-Hill, Boston, USA, inside back cover

Project Life Cycle

10

PHASE 1 Initiation & Concept

PHASE 2 Planning & Development

PHASE 3 Implementation

PHASE 4 Commissioning & Handover

Initiating Processes

Planning Processes Closing

Processes Executing Processes

Controlling Processes

4 Phases and 5 Processes

11

Context➥ poliBcal➥ economic➥ social➥ environment➥ legal

Sponsorship➥ benefit➥ finance➥ value➥ schedule➥ urgency

Aetudes➥ commitment➥ moBvaBon➥ support➥ right1stBme➥ sharedvision

DefiniBon➥ objecBves➥ scope➥ technology➥ design➥ resourcing

People➥ leadership➥ management➥ teamwork➥ influence➥ IR

Systems➥ planning➥ control➥ reporBng➥ quality➥ risk

OrganizaBon➥ roles➥ resources➥ type➥ contractstrategy

ProjectDrivers

ExternaltoOrganizaBon

Pressures Resistance

InternaltoOrganisaBon

Turner, R.J. 2009, The Handbook of Project-based Management, Third Edition, McGraw-Hill, USA.

The Seven Forces

12

FIGURE 1.4

Yin Yang of PM

Technical Sociocultural Dimensions

Larson, E.W. & Gray, C.F. 2011, Project Management: The Managerial Process, 5th edn., McGraw-Hill, Boston, USA, inside back cover

13

CorporateStrategytoProjectStrategy

Portfolio Strategy

Portfolio Objectives

Corporate Strategy

Context

Program Strategy

Program Objectives

Project Strategy

Project Objectives

Work area Strategy

Work area Objectives

Team Strategy

Team Objectives

Individual Objectives Project Strategy

Corporate Strategy to Project Strategy

14

Why do we Need this Project?

Safety/ Regulatory

Lower Costs

Meet Competition

15

Type2Product

Development

Type4R&D

Organisa7onalChange

Type1

Engineering&Construc7on

Type3

SystemsDevelopment

WorksM

etho

dsW

ellD

efine

d

NO

YES

Projectgoalswelldefined

YES NO

Success

Failure

Project Types


16

Ø  What are the seven forces that may impact on the project and define the project type.

Activity

•  Located in Oslo, Norway •  Norwegian Centre for Project

Management •  http://www.bi.edu/

University of Quebec, Montreal •  Located in Quebec, Montreal •  The Project Management

Chair •  http://www.uqam.ca/

Technische Universität, (TU) Berlin •  Located in Berlin, Germany •  Chair for Technology and

Innovation Management •  http://www.tu-berlin.de/

Project Knowledge Areas

Project Management

Project Integration

Ø  Develop Project Charter

Ø  Develop Project Management Plan

Ø  Direct & Manage Project Work

Ø  Monitor & Control Project Work

Ø  Perform Integrated Change Control

Ø  Close Project or Phase

Project Scope

Management Ø  Plan Scope

Management Ø  Collect

Requirements Ø  Define Scope Ø  Create WBS Ø  Validate

Scope Ø  Control Scope

Project Time Management

Ø  Plan Schedule Mgt

Ø  Define Activities Ø  Sequence

Activities Ø  Estimate Activity

Resources Ø  Estimate Activity

Durations Ø  Develop

Schedule Ø  Control Schedule

Project Cost Management Ø  Plan Cost Mgt Ø  Estimate

Costs Ø  Determine

Budget Ø  Control Costs

Project Human Resource

Management Ø  Plan Human

Resource Development

Ø  Acquire Project Team Ø  Develop Project

Team Ø  Manage Project

Team

Project Communications

Management Ø  Plan Communications Mgt Ø  Manage Communications Ø  Control Communications

Project Quality

Management Ø  Plan Quality

Mgt Ø  Perform Quality

Assurance Ø  Quality Control

Project Procurement Management

Ø  Plan Procurement Mgt Ø  Conduct Procurements Ø  Control Procurements Ø  Close Procurements

Project Risk Management

Ø  Plan Risk Management Ø  Identify Risks Ø  Perform Qualitative Risk

Analysis Ø  Perform Quantitative Risk

Analysis Ø  Plan Risk Responses Ø  Control Risks

Project Management Institute, I. 2013, The Project Management Body of Knowledge, vol. Fifth Edition, Project Management Institute, Inc, Newtown Square, PA.

Project Stakeholder Management

Ø  Plan Stakeholder Mgt Ø  Manage Stakeholder

Engagement Ø  Control Stakeholder

Engagement

17

A Project Plan may include: Ø  Project objective/s with a link back to the organisational goals Ø  Project benefits and success criteria Ø  Inclusions, Exclusions, constraints and assumptions Ø  Stakeholder analysis Ø  Deliverables Ø  Work breakdown structure Ø  Project schedule, including a milestone plan Ø  Project budget Ø  Quality measures and management plan Ø  Resource plan, including a project organisation structure Ø  Communications plan Ø  Risks and mitigation strategies Ø  Procurement strategy

Project Integration

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o Objective

o Deliverables

o Milestones

o Technical requirements

o Inclusions & exclusions

o WBS

o Reviews

Project Scope Management

Quality

Time Cost

SCOPE

19

Work Breakdown Structure

20

Ø  Project Requirements o  What is the function to be performed? o  What are the benefits you want? o  What kind of change are you trying to make? o  How is this measured? o  What is the process you use

to define it? o  What does success look like?

Project Scope Management

21

Ø  Plan schedule management

Ø  Define activities

Ø  Sequence activities

Ø  Estimate activity resources

Ø  Estimate activity durations

Ø  Develop schedule

Ø  Control schedule


Project Management Institute, I. 2013, The Project Management Body of Knowledge, vol. Fifth Edition, Project Management Institute, Inc, Newtown Square, PA, pp 141.

22


23

Cost Feasibility Ø Estimate costs and benefits Ø Assign cash flows to each activity Ø Determine financing costs Ø Carry out sensitivity analysis

Cost Management

Ø  Estimate Costs Ø  Determine Budget Ø  Control Costs

Project Cost Management

24

Project Cost Management

25

Provides input to the overall project plan and must address quality control, quality assurance, and quality improvement for the project.

Quality Management Plan Ø A quality plan needs to cover a number of key

elements: •  What needs to go through a quality check? •  What is the most appropriate way to check the quality? •  When should it be carried out? •  Who should be involved? •  What "Quality Materials" should be used?

Project Quality Management

26

Qualitystandardsrelevanttoprojectmanagement:•  AS/NZSISO9000:2006-Qualitymanagementsystems-

Fundamentalsandvocabulary•  AS/NZSISO9001:2008-Qualitymanagementsystems–

Requirements•  AS/NZSISO10005:2005-Qualitymanagementsystems-

Guidelinesforqualityplans•  ASISO10006:2003-Qualitymanagementsystems-

Guidelinesforqualitymanagementinprojects

Project Quality Management

27

Ø  Plan human resource management

Ø  Acquire project team

Ø  Develop project team

Ø  Manage project team

Project HR Management

Project Management Institute, I. 2013, The Project Management Body of Knowledge, vol. Fifth Edition, Project Management Institute, Inc, Newtown Square, PA, pp 255. 28

Project HR Management


Leadership Styles

RASCI Chart

Responsibility Codes: N

ame

Nam

e

Nam

e

Nam

e

Nam

e

Nam

e

Nam

e

Responsible: Performs the work Accountable: Ultimately accountable for delivery; Sign-Off: Approval must be gained for deliverable to be accepted Consult: Review & provide feedback Informed (blank) = not involved WBS # Description

29

Ø  Stakeholder analysis

Ø  Information needs

Ø  Sources of information

Ø  Dissemination modes

Ø  Responsibility and timing

Project Communications Mgt.

30

Project Communications Matrix Communications Matrix Project Name Version

Project Manager Date WHO WHAT WHEN HOW COST WHO

(names of people or groups to receive comms)

(information requirements)

(frequency of communications)

(method of communications)

(estimate of comms cost)

(names of people or groups to send comms)

Project Communications Mgt

31

PMBoK®

“Project risk management includes the processes of conducting risk management planning, identification, analysis, response planning, and controlling risk on a project” … to increase positive and decrease negative impacts on a project.



Plan Risk Management

Identify Risks

Control R

isks

PMBOK® - Project Risk Management

CO

MM

UN

ICAT

E A

ND

CO

NSU

LT

MO

NIT

OR

AN

D R

EVIE

W

Establish Context •  External, Internal & Process •  Risk Criteria

Identify Risks •  Events •  Causes

Analyse Risks •  Likelihood & Impact

Evaluate Risks •  Determine Controls •  Prioritise Actions

Treat Risks •  Select Treatment Options •  Implement Treatment Plans

AS/NZS ISO 31000:2009 Risk Management

Plan Risk Responses

Perform Qualitative Risk Analysis Perform Quantitative Risk Analysis


33

Project procurement management includes the process necessary to purchase or acquire products, services, or results needed from outside the project team. Project procurement management includes contract management and change control processes required to develop and administer contracts or purchase orders Project procurement management also includes administering contracts issued by an outside organisation (the buyer) placed on the project team by the contract

Project procurement management includes the process necessary to purchase or acquire products, services, or results needed from outside the project team. Project procurement management includes contract management and change control processes required to develop and administer contracts or purchase orders. Note! The project organisation can be either the buyer or seller of the product or services.



Procurement Methods Ø  Public tendering Ø  Selective or pre-registered tendering Ø  Lump sum fully documented Ø  Schedule of Rates Ø  Detailed Design & Construct Ø  Cost plus Ø  Design and Construct Ø  Construction Management Ø  Alliances/Partnerships Ø  BOO, BOOT


35

Identify Stakeholders Ø  Inputs

o  Project Charter o  Procurement documents o  Enterprise environmental factors o  Organisational process assets

Ø  Tools & Techniques o  Stakeholder analysis o  Expert judgement o  Meetings

Ø  Outputs o  Stakeholder register

Project Stakeholders


Classifying Stakeholders PMBoK® Turner Sponsor Employees Customers/users Management Sellers Shareholders Business Partners Resource providers Organisational Groups Customers (internal/external) Functional Managers Suppliers (internal/external)

Neighbors Government (local/national) Opinion formers (media)

Source: PMI (2013) PMBoK ® Source: Rodney Turner (2009)

Project Stakeholders

37

Ø  The type of organisational structure will impact on how projects are supported

Ø  Three main structures: 1.  Functional (silo) 2.  Matrix 3.  Project

Organisational Structures

38

q  A system of shared norms, beliefs, values, and assumptions which bind people together, thereby creating shared meanings

q  The “personality” of the organisation that sets it apart from other organisations. q Provides a sense of identify to its members q Helps legitimise the management system of the

organisation q Clarifies and reinforces standards of behaviour

Organisational Culture

39

Ø  For the client project define the project

scope, and prepare a Work Breakdown Structure.

Activity

“Trust the instinct to the end, though you can render no reason.”

Ralph Waldo Emerson,

1803-1882

Developing a Project Plan

Documents

THINK.CHANGE.DO Lecture 2: Project Management Context … · UTS:DESIGN, ARCHITECTURE AND BUILDING UTS CRICOS PROVIDER CODE: 00099F 15315 Project Management Principles Lecture 2: