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INME 423: Project Planning
Lecture 1: Introduction To Projects
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Instructor : Amina AshiDepartment: Industrial Engineering and Engineering ManagementOffice:F129Campus Phone:3473E-mail: [email protected]
Time Monday Tuesday Wednesday Thursday Friday338:00
INME202INME324 INME3248:30
9:00INME2029:30
O.HO.H
10:00
INME423 INME42310:3011:00
11:30
INME423 INME42312:0012:30
1:001:30
2:002:30
3:003:30
4:004:30
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Evaluation profile:
Project and reports 20% Exam 1 20% Exam 2 20%Final 40%
Reports should be submitted on due dateLate reports are not acceptedstudents who miss more than one-fifth of the sessions
in the first ten weeks of the semester will be required to withdraw from the course with a grade of “WF”.
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Subjects covered Introduction to Project Management Techniques used for Project Planning and
Scheduling The Critical Path Method (CPM) Precedence Networks Program Evaluation and Review Technique
(PERT) Schedule compression and Time-Cost Trade-
Off Schedule Updating and Project Control Computer Applications using Primavera
Understand the growing need for better projects
Explain what is a project provide examples of projects, list various attributes of projects describe project constraints
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Chapter 1-Introduction Learning Objectives
Many organizations today have a new or renewed interest in project management (PM)In 2011, the average annual salary for someone in
the PM profession was: $160,409 in Switzerland (the highest-paid country) $139,497 in Australia $105,000 in the United States $23,207 in China
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Introduction
A 1995 Standish Group study (The CHAOS Report) found that:
only 16.2 percent of information technology (IT) application development projects were successful in meeting scope, time, and cost goals.
Over 31 percent of the projects were canceled before completion, costing over $81 billion in the U.S. alone
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What Went Wrong?
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A 2004 PriceWaterhouse Coopers study of 200 companies from 30 different countries found that over half of all projects fail.
Software & hardware projects fail at a 65% rate,
Only 30% of technology-based projects and programs are a success.
Over 50% of global business projects fail,
Approximately 42% of the 1,200 Iraq reconstruction projects were eventually terminated
Project Success/Fail Rates
Reasons Why Projects FailPoliticsNaïve promisesIntensive competition caused by
globalization, & appearance of new technologies
Unexpected government regulationsUnexpected and/or unplanned crises
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Improved Project Performance Follow-up studies by the Standish Group
showed some improvement in the statistics for IT projects:
◦ The number of successful projects has doubled, from 16 percent in 1994 to 37 percent in 2010
◦ The number of failed projects decreased from 31 percent in 1994 to 21 percent in 2010
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Improved Project Performance
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“The reasons for the increase in successful projects vary, but:
better tools have been created to monitor and control progress
better skilled project managers with better management processes are being used.
There are different ways to define project success:
The project met scope, time, and cost goals.The project satisfied the customer/sponsor.The project produced the desired results.
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Project Success
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Quadruple Constraint of Project Success
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Building construction
© 1995 Corel Corp.
An Example of projects
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Research project
An Example of projects
A young couple hires a firm to design a new house.
A retail store manager works with employees to display a new clothing line.
A college campus upgrades its technology infrastructure to provide wireless Internet access.
A construction company designs and constructs a new office building for a client.
A school implements new government standards for tracking student achievement.
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Examples of Projects
A project is “a temporary endeavor undertaken to create a unique product, service, or result”*
Project: it is a collection of activities that have a definite start and a definite finish.
Projects end when their objectives have been reached, or the project has been terminated
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What Is a Project?
*Project Management Institute, Inc., A Guide to the Project Management Body of Knowledge (PMBOK® Guide, Fifth Edition) (2012).
A project:Has a unique purposeIs temporary, Defined start and end datesIs developed using progressive elaboration Developed to resolve a clear goalRequires resources, often from various areasLimited by budget, schedule, and Human and
nonhuman resourcesShould have a primary customer or sponsor
The project sponsor usually provides the direction and funding for the project
Involves uncertainty
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Project Attributes
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Related definitions Activity: it is work or task that should be
done at a certain specified date and within a certain specified duration and with a predetermined amount of resources. Relations and sequence of activities should be known.
Resources: man, machine, equipment, labor, are typical examples of resources. Money is the global image of all resource types.
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Related definitions
Deliverable : is a measurable work productIn project management, a deliverable is a
product or service that is given to your client. Has a due date is tangible and specific.
Related Definitions Milestones are events or stages of the project that
represent a significant accomplishment.
Milestones
• show completion of important steps
• signal anchors such as a project start and end date
• can motivate the team
13-021
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Related definitions Milestones: milestones do not impact project duration.
Instead, they focus on major progress points that must be reached to achieve success.
sometimes milestone and deliverable are used interchangeably : both are used to identify products , but milestones represent key-products
Some project managers focus on the triple constraint:
Scope: What work will be done as part of the project? What unique product, service, or result does the customer or sponsor expect from the project?
Time: How long should it take to complete the project? What is the project’s schedule?
Cost: What should it cost to complete the project? What is the project’s budget? What resources are needed?
Other constraints: Quality Risk resources
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Project Constraints
Types of Project ConstraintsTechnical or Logic Constraints: Constraints related
to the sequence in which project activities must occur.
Resource Constraints: The absence or shortage of resources
PeopleMaterialsEquipmentWorking Capital
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Figure 1-2. Typical Project Constraints
Project Life CyclesMan Hours
Conceptualization
Planning Execution Termination
Fig 1.3 Project Life Cycle Stages
01-26
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Conceptualization - the development of the initial goal and technical specifications.
Planning – all detailed specifications, schedules, schematics, and plans are developed
Execution – the actual “work” of the project is performed
Termination – project is transferred to the customer, resources reassigned, project is closed out.
Project Life Cycles Stages
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Project life cycle
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End of lecture 1