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
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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
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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
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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
Turner, R.J. 2009, The Handbook of Project-based Management, Third Edition, McGraw-Hill, USA.
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
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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
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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
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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 Time Management
Project Management Institute, I. 2013, The Project Management Body of Knowledge, vol. Fifth Edition, Project Management Institute, Inc, Newtown Square, PA, pp 141.
22
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
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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
Turner, R.J. 2009, The Handbook of Project-based Management, Third Edition, McGraw-Hill, USA.
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.
Project Risk Management
Project Management Institute, I. 2013, The Project Management Body of Knowledge, vol. Fifth Edition, Project Management Institute, Inc, Newtown Square, PA, pp 309. 32
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
Project Risk Management
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.
Project Procurement Management
Project Management Institute, I. 2013, The Project Management Body of Knowledge, vol. Fifth Edition, Project Management Institute, Inc, Newtown Square, PA, pp 355. 34
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
Project Procurement Management
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
Project Management Institute, I. 2013, The Project Management Body of Knowledge, vol. Fifth Edition, Project Management Institute, Inc, Newtown Square, PA, pp 392. 36
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
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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
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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