2 Days Training on Project Management

at NESPAK, Lahore

Facilitator Muhammad Umer

EDUCATION
PhD Manufacturing Engineering & Management (N.U.S.T).Ongoing MS Engineering Management (C.A.S.E) Studied MS Operations Research at London School of Economics (LSE, U.K) BE Aeronautical Engineering (N.U.S.T) One Year Certificate in Nanotechnology Management from Stanford University, U.S.A. PM TRG & CONSULTANCY PEC, DESTO, PIQC, NESPAK, IST, LMDA PM EPERIENCE Time & Motion St. Helicopter Manufacturing (France) Contract Management of Projects

AFFILIATIONS
External Proctor Harvard University E-mail: mumer@iqraisb.edu.pk

Ground Rules
Confidentiality Respecting others opinions Giving time to others Participation Safe House Synergy Sessions
Mobile Phones Tte--ttes

Project Management (Level 1)

Day-1. Intro to Project Management, Project Life Cycle, Project Feasibility, Project Proposal, Proj Scope & Charter Day-2. Project Planning, WBS, Project Networking & Scheduling

Project Management (Level 2)

Day-1. Project Communication Mgt, Project HR & Project Contract & Procurement. Day-2. Project Cost Management & Financial Analysis

Project Management (Level 3)

Day-1. Project Quality Management, Proj Leadership & Motivation Day-2. Proj Productivity, Project Risk Management, Project Close up,

Sessions
0900-1100 1100-1120 1120-1300 1300-1400 1400-1520 1520-1540 1540-1700 Session 1 Break Session 2 Break Session 3 Break Session 4

Day 1 Projects in Contemporary Organizations

Day 1 Project Scope Management
Muhammad Umer A Special Presentation for NESPAK

Knowledge has to be improved, challenged, and increased constantly, or it vanishes. Peter Drucker

Before success comes in any man's life he is sure to meet with much temporary defeat and, perhaps, some failures. When defeat overtakes a man, the easiest and most logical thing to do is to quit. That is exactly what the majority of men do. Napoleon Hill

I've found that luck is quite predictable. If you want more luck, take more chances. Be more active. Show up more often. Brian Tracy

Success is neither magical or mysterious. Success is the natural consequence of consistently applying the basic fundamentals. - Jim Rohn

Science and psychology have isolated the one prime cause for success or failure in life. It is the Hidden self-image you have of yourself. Bob Proctor

Forces Fostering Project Management

Expansion of knowledge: Solution to Problems Product design integrated & inherent to production & distribution systems to satisfy demand for more complex & customized products & services Worldwide markets force: what, where, when, & how to produce & distribute output

Emergence of Project Management

Combination of all three forces
require use of teams to solve problems that used to be solvable by individuals greatly increases complexity of goods & services produced; & complexity of processes used to produce them

Thus need for more sophisticated systems to control both outcomes & processes

Brief History of Project Management

Project management practiced for thousands of years: Egyptian epoch Mid-1950's: application of formal project management tools & techniques to complex projects. Henry Gantt is considered to be the forefather of project management, as his planning and organizing methods with the use of the bar charts as a project management tool recognizes him as the foremost precursor for contemporary project management practices employed today. Modern project management methods had their origins in two parallel but different problems of planning and control in projects in the United States.

Polaris Missile Project

U.S Navy: control of contracts. Research, development work and manufacturing of parts that were unique and had never been previously undertaken. Characterised by high uncertainty. Hence, completion times were based on probabilities. Time estimates based on optimistic, pessimistic and most likely. 3 time scenarios mathematically assessed to determine the probable completion date. This procedure was called program evaluation review technique (PERT). Initially, the PERT did not consider cost; later included using the same estimating approach as with time. PERT was found (and still is) to be best suited for projects with a high degree of uncertainty reflecting their level of uniqueness.

E.I du Pont de Nemours Company

Construction of major chemical plants in U.S. Unlike the Navy Polaris project, these construction undertakings required accurate time & cost estimates. Methodology developed originally referred to as project planning & scheduling (PPS); required realistic estimates of cost & time, and thus more definitive approach than PERT. PPS later developed into critical path method (CPM) that became very popular in construction industry.

 PERT & CPM increasingly popular in private and public sectors, in 60s & 70s Defence Departments in many countries, NASA, & large-scale engineering and construction companies world wide applied PM principles/tools to manage large budget projects. Computer Packages for PM developed in 70s; costly 80s; PCs & low cost PM software Manufacturing & software sectors adopted sophisticated project management practices as well 1990s; PM theories, tools & techniques widely received. PRINCE2 & PMI Models

4 Periods in Development of Project Management

Prior to 1958
Craft system to human relations. Evolution of technology, such as, automobiles & telecommunications shortened the project schedule. For instance, automobiles allowed effective resource allocation & mobility, whilst the telecommunication system increased the speed of communication. Furthermore, the job specification which later became the basis of developing the Work Breakdown Structure (WBS) was widely used & Henry Gantt invented the Gantt chart. Examples:
Pacific Railroad in 1850s Construction of Hoover Dam in 1931-1936; 5,200 workers, still one of the highest gravity dams in the U.S. generating four billion kilowatt hours a year; & The Manhattan Project in 1942-1945; pioneer research & development project for producing the A-bomb, 125,000 workers & costing nearly $2 billion.

1958-1979
Application of Management Science. Significant technology advancement, such as, Xerox. CPM & PERT introduced. Development of computer technology. Computers from mainframe to the mini-computer; Microsoft founded in 1975. Project management software companies, including, Artemis (1977), Oracle (1977), & Scitor Corporation (1979). Material Requirements Planning (MRP) Examples:
Polaris missile project ;that had the objective of delivering nuclear missiles carried by submarines, known as Fleet Ballistic Missile. Successfully launched its first Polaris missile in 1961; Apollo project; sending man to the moon; & E.I du Pont de Nemours chemical plant project

1980-1994
Production Centre Human Resources. Revolutionary development in the information management, PC & associated computer communications networking facilities. Low cost PM software for PCs. Examples:
England France Channel project, 1989 to1991. International project, involved two governments, several financial institutions, engineering construction companies, & various organisations. Language, use of standard metrics, & other communication differences needed to be closely coordinated; Space Shuttle Challenger project, 1983 to 1986. Disaster focused attention on risk management, group dynamics, & quality management xv Calgary Winter Olympic of 1988, successfully applied project management practices to event management.

1995-Present
Creating a New Environment. Internet provided fast, interactive, & customized new medium that allows people to browse, purchase, & track products & services online instantly. Firms more productive, more efficient & more client oriented; allows automatic uploading of data so that anyone around the globe with a standard browser can: Input the most recent status of their assigned tasks; find out how the overall project is doing; be informed of any delays or advances in the schedule; & stay "in the loop" for their project role, while working independently at a remote site.

Program & Project

Sometimes achieving a certain organizational objective may not be possible through one project. Programs involve number of interrelated projects. Example:
Economic Development Programs Earthquake reconstruction of schools in Bakot

Project, Program, & Portfolio Management

In mature project management organizations, project management exists in a broader context governed by program management and portfolio management. Organizational strategies and priorities are linked and have relationships between portfolios and programs, and between programs and individual projects.

Portfolio, Program, and Project Management Interactions

Comparative Overview of Project, Program, and Portfolio Management

Projects & Processes are often contrasted

Process: day-to-day working of an organization Project: used to describe activities outside the day-to-day working of an organization In fields such as Software, Construction, Research; day-to-day working is often Projects

Managers in Projects
Line managers - responsible for activities making direct contributions to production of organizations basic goods or services. Staff managers - use special technical expertise to advise & support the efforts of line workers. Functional managers - responsible for one area of activity, finance, marketing, production, personnel, accounting, or sales. Gen mgrs - responsible for complex organizational unit that - many areas of functional activity An administrator -manager, who works in a public or non profit organization. Project mgrs cannot perform their tasks well unless they have: Understanding of & are responsive to, many elements of external environment economic, technological social, political & ethical factors that effect their areas of operations.

Management Functions
Process of mgmt consists of 4 basic managerial functions Planning Organizing Controlling Leading

Planning
Basic activity of mgt, Mgr at every level do planning Determined through Objectives of organization & establishment of appropriate Strategies for achieving them. Strategy provides- with direction, A sense of unity of purpose integrative blueprint for org Strategy serves to obtain a match b/w external environment & internal capabilities. intended to achieve a sustained competitive advantage over competitors. Planning Involves selecting missions & objectives & actions to achieve them.

Organizing
Involves establishing intentional structure of roles for people to fill in organization Organizing involves turning plans into actions After developing strategy, & plans to achieve the objective they need to develop an organization to accomplish objectives

Controlling
Measuring & correcting individual & organizational performance to ensure that events conform to plans. 3 elements:
Establishing Standard of Performance

Info that indicates Deviation b/w actual vs established standards

Actions to Correct performance that doesnt meet standards

Facilitates accomplishment of plans.

Leading
Influencing people- so that they will contribute to organization & group goals Predominantly, to do with interpersonal aspect of managing In project Most important problems arise form people their desires & attitudes, their behavior as individuals & in groups Effective project mgrs also need to be effective leaders. Leadership implies follower-ship & people tend to follow those who offer means of satisfying their own needs, wishes, & desires.

Planning
Setting performance objectives & deciding how to achieve them

Organizing
Arranging tasks, people, & other resources to accomplish the work

The Management Process

Controlling
Measuring performance & taking action to ensure desired results

Leading
Inspiring people to work hard to achieve high performance

The Project Manager

Management (Expertise, Tools, HRM, QM ) Conflicts Visibility Risks Teams Managing Stakeholders, Schedule, Budget, Plan Cross Functional management

Changes in Managing Organizations

From
Industrial Society

To
Information Society

Forced Technology National Economy

Short Term Centralization Institutional Help Representative Democracy Hierarchies West Either/OR

High Technology World Economy

Long Term Decentralization Self-Help Participatory Democracy Networking East Multiple Option

Some Definitions
A project is a sequence of unique, complex & connected activities having one goal or purpose & that must be completed by a specific time, within budget, & according to specifications.

What is a Project ?
Unique venture with beginning & end, conducted by people to meet established goals within parameters of cost, schedule & quality (Buchanan & Boddy 1992) Set of people & other resources temporarily assembled to reach specific objective, normally with fixed budget & time period
(Graham 1985)

Project Management Consists Of

Work Products Roles
Who is responsible?

Guiding Principles

What to deliver?

Hints & Tips

Processes
1 2

Techniques

How to produce?

How to produce?

Project Characteristics
Unique Activities
The project has never happened before & will never happen again under the same conditions. (Uncertainty & Risk)

Complex Activities
Not simple, repetitive acts, such as mowing the lawn, running the weekly payroll, washing the car, or loading the delivery truck. (Expertise Required)

Connected Activities
There is some order to the sequence in which the activities that make up the project must be completed. Connectedness follows from the fact that the output from one activity is input to another. (Interdependencies)

Project Characteristics..
One Goal
Projects must have a single goal as compared to a program

Specified Time
Projects have a specified completion date

Within Budget
Projects also have resource limits (people, money, machines)

Project Characteristics...
According to Specification
Certain level of functionality & quality expected. may be self-imposed or customer-specified, & are fixed for a given time

Require Efforts of people

Human Resource Management

Measures of Quality will apply

Quality Management

Project is .
Organized work for a predefined goal requiring resources & efforts, a unique (thus risky) venture having budget & schedule. Its success can be measured in terms of how closely it comes to meeting goals within set parameters. Once complete, it ceases.

Some Humor!!!!!
Enthusiasm Disillusionment Panic Search for the guilty Punishing the innocent Praising those not involved

ACTIVITY 1
Think about how you might identify whether or not a project is successful. List those items that you would look at to determine a projects success.

DISCUSSION ACTIIVTY 1
Asking these questions can reflect upon the success of a project. Did the project achieve its time, cost and quality objectives? Does it meet the customers perceived requirements? Does its outcome make the client come back for further business? Has it completed leaving the project organization fit and able to continue further work?

Quality in Projects
An aspect that will remain relevant throughout the project (and this course) Defining quality not easy, some perspectives are:
Product Based View User Based View Manufacturing based view Value Based View Transcendent View

ACTIVITY 2
From your personal experience, choose a major item you have purchased and spend 5 minutes writing down an appreciation of its quality from the different points of views on previous slide.
Our discussion: Motor Car, you can choose whatever you like Purpose: appreciate several perceptions of quality

DISCUSSION ACTIIVTY 2
Product Based View: focuses on standard of material used in the car User Based View: depends on who the user is, and what he or she wants from the car. May range from utilitarian to exotic. Manufacturing Based View: rate quality against given set of standards. A cheap, low specs car can be rated much higher than a costly, high specs car Value Based View: combines users requirements with the price, or conformity to specs at an acceptable costs Transcendent View: something like a Rolls Royce, top of the line Mercedes Benz or a hand-built luxury sports car.

Some Examples of Projects

Constructing firm: construct access roads & a group of small industrial units on derelict road to generate jobs. May involve surveying, demolition, clearing rubble, removing trees & shrubs, leveling, laying out roads, foundations, raising buildings. A R&D Department in a chemical firm may be asked to devote time to exploring possibilities of developing new products using a new polymer. Marketing group of a company: prepare the launch of new product. May involve marketing research, planning & executing advertising campaign, organizing promotional events & press release & liaising with wholesalers & retail outlets.

Construction

R&D

Marketing

Triple Constraints
SCHEDULE
For analytical purposes, the time required to produce a deliverable is estimated using several techniques. One method is to identify tasks needed to produce the deliverables documented in a work breakdown structure or WBS. The work effort for each task is estimated & those estimates are rolled up into the final deliverable estimate. Scope are requirements specified to achieve the end result. The overall definition of what the project is supposed to accomplish, and a specific description of what the end result should be. A major component of scope is the quality of the final product.

COST

QUALITY

SCOPE

Costs include: resource costs, labor rates, material rates, risk management (i.e. cost contingency), Earned value management, plant (buildings, machines, etc.), equipment, cost escalation, indirect costs, and profit. The economic cost that must be considered; worker skill & productivity which is calculated by variation to project cost estimates.

Project Constraints
Scope

Risk

Quality

Resources

Schedule

Budget

Project Constraints
Scope Risk Quality

Resources

Schedule

Budget

Management sets priority of each constraint PM uses this priority throughout the project Change to one constraint should be evaluated for its effect on others Stakeholders will try to change things through out the project. PM must evaluate all those changes through Integrated Change Control.

Project Initiation
Identify Needs

Establish Objectives & Constraints

Establish Scope Undertake Studies Appoint project Mgr

Generate Alternatives
Approximate Estimating Establish Feasibility Identify Stakeholders

Obtain Approvals

Not Proceed End of project

Proceed

Product vs. Project Management

Project Manager focuses Project Constraints Product Manager not willing to admit Production line will ever end. Product Manager wants product to be long-lived & profitable . Even with less demand for product Prod Manager looks to keep Product alive.

Project Management in Practice-1

The Olympic Torch Relay Project

Getting the Olympic Flame, known as the Olympic Torch Relay, to the Salt Lake City, Utah, USA 2002 Olympic Games promised to be no simple matter. Generally, the Torch Relay has gotten longer and more complex with every Olympic event. This complexity is driven by the realization of host-country citizens that it is a rare opportunity to have the Olympic torch pass through your hometown and the corresponding goal of the Olympic Committee to touch as many lives as possible in a positive way. Planning for the 1996 Atlanta Olympic Torch Relay took two years, cost over $20 million, and involved an 84 day, 42 state campaign using 10,000 runners to carry the torch for 15,000 miles! Accompanying the runners was a 40-vehicle caravan carrying security officers, media personnel, medical personnel, computers, telecommunications gear, clothing, food, and spare lanterns with extra flames in case the original torch

went out. The caravan included: 50 cellular telephones; 60 pagers; 120 radios; 30 cars; 10 motorcycles; and clothing for 10,000 runners, 10,000 volunteers, as well as 2,500 escort runners. However, the torch relay is also a major marketing campaign, primarily for the relay's sponsors. Thus, accompanying the Atlanta-bound caravan were trucks hawking Olympic memorabilia: t-shirts, sweatshirts, baseball caps, tickets to the soccer matches, and on and on. In addition to retail commercialism, a number of companies were piggybacking on the torch relay to further their own commercial interests: IBM, Motorola, Bell-South, Texaco, BMW, Lee, Coca-Cola, and so on. AU in all, a very successful relay!
Source: G. Ruffenach, "Gelling the Olympic Flame to Atlanta Won't be a Simple Cross-Country Run," The Wall Street Journal, February 26, 1996.

Questions on Project Management in Practice 1

Is the torch relay another part of the Olympics themselves, perhaps a sub-project? Given the geography of Australia, with most of the populace living on the edges of the continent and few in the interior, what path for the torch relay would make sense? Is the life cycle for this project S-shaped or shaped like the right half of a U or something else? Why?

Typical Sequence of Phases in a Project Life Cycle

Product vs Project Life Cycles

Modern Tools - Technique

PERT/CPM (Program Eval & Review Tech)

VERT/GERT (Venture/Graphical)
Linear Responsibility Charts Gantt Charts Milestone Charts Work Breakdown Structures

Project Action Plans

Computers

Project Selection Models

Non-numeric Models
The sacred cow The operating necessity The competitive necessity The product line extension Comparative benefit model Payback period IRR Discounted cash flow, NPV Benefit Cost Ratio

Numeric Models:

The 5 Process Groups are:

1. Initiating, 2. Planning, 3. Executing, 4. Monitoring and Controlling, and 5. Closing.

Project Management Lifecycle

Level of Activity

Executi ng Process Initiatin g Proces s Plannin g Proces s

Controllin g Process

Closing Process

Start

Time

Finish

Project Life Cycle Example Phases

Concept & Proposal Development

Implementation

Verification Termination

Initial Phase

Intermediate Phases

Final Phase

The Project Lifecycle

Additional Reading(s): Page 14-19 of textb

Generic Cost & Staffing Life Cycle

Cost and Staffing Level

Initial Phase

Intermediate Phases (one or more) Final Phase

Start

Time

Finish

Time Distribution of Project Efforts

Risks During Project Lifecycle

Estimates made at project start

Risks During Project Lifecycle..

Estimates made at times t0, t1 & t2

Project Management in Practice-2

Demolishing San Franciscos Bridges Safely

The Central Freeway Viaduct in downtown San Francisco suffered major structural damage during the 1989 Loma Prieta earthquake and recently had to be safely demolished. The task was complicated because the bilevel, multi span bridge passed within six feet of heavily populated buildings, ran in the vicinity of both overhead and underground utilities (gas, water, electric, and sewer lines), and crossed both commercial and residential areas with strict vibration and sound level restrictions. Thus, managing the demolition while ensuring the safety of both the on-going population and existing facilities was a major challenge. The primary tools for conducting such a delicate, but dangerous operation were detailed planning and thorough communications with all related parties. An extensive Demolition Plan was required and included: - a Code of Safe Practice describing personal protective equipment for the workers, as well as a maintenance plan for the equipment; - a demolition sequence plan (sequence of work, staging, equipment location, restraints,

safety structures, traffic control) , a dust control plan , work-hour schedule , noiselevel monitoring , load determinations and structural analyses. Most of the demolition was accomplished using a breaker on the upper deck of the bridge and a pulverizer on the lower deck. First the road-way slab was demolished, then the girders were pulverized and all the debris pushed down to the ground. Then the cap, columns, and restrainers were demolished. This process continued along the length of the bridge until the entire distance was demolished. Constant monitoring was conducted for noise, vibration, safety, and procedures throughout the project. Continuous communication was made with utility companies and others concerned with a particular segment being demolished. In this fashion, the entire viaduct was demolished with no major accidents or injuries.
Source: O. Y. Abudayyeh, "Safety Issues in Bridge Demolition Projects: A Case Study," PM Network. January 1997, pp. 43-45.

Questions on Project Management in Practice 2

What was the main consideration in this demolition project? How would a demolition project differ from a more common construction project? Consider performance, schedule, and budget. Would the life cycle for this project be Sshaped or the right half of a U or something else? How about the life cycle for a freeway construction project?

Class Discussion/Assessment
Give several examples of projects found in our society, avoiding those already discussed in the chapter. Describe some situations in which project management would probably not be effective. How does the rate-of-project-progress chart (Fig. 1-3) help a manager make decisions? Expound on the adage, Projects proceed smoothly until 90 percent complete, and then remain at 90 percent forever. Discuss the duties and responsibilities of the project manager. How critical is the project manager to the success of the project? Would you like to be a project manager? Why, or why not?

Class Discussion/Assessment..
Discuss why there are trade-offs among the three prime objectives of project management. Why is the life cycle curve often S shaped? How might project management be used when doing a major schoolwork assignment? Why is there such a pronounced bend in the curve of Figure 1-2? Which of the identified project attributes in Section 1.1 are always present? Which are simply frequently present? Describe a project whose life cycle would be a straight line from start to finish. Describe a project with an inverse-S life cycle.

9 Knowledge Areas
CORE FUNCTIONS Scope Mgt Time Mgt Cost Mgt Quality Mgt Tools and Techniques

Stake holders needs and expecta tions

Project Integration Management

Project Success

HR Mgt

Comm Mgt

Risk Mgt

Procur Mgt

FACILITATING FUNCTIONS

Functional Authority Number

HR
R&D Finance

Top Managers

Middle Managers

Operatives

Marketing Accounting

First-Line Managers

Organizational Levels

Engineering

Managerial Expertise Technical Expertise

Use of Management Functions at different hierarchical levels

PLANNING

ORGANIZING

LEADING

CONTROLLING

First Line Mangers

Middle Mangers

Top Mangers

Technical Skills

Human Skills

Conceptual Skills

First Line Mangers

Middle Mangers

Top Mangers

Key Players in a Project

Project manager. The person responsible for managing the project. Customer/user. The person or organization that will use the projects product. There may be multiple layers of customers. For example, the customers for a new pharmaceutical product can include the doctors who prescribe it, the patients who take it and the insurers who pay for it. In some application areas, customer and user are synonymous, while in others, customer refers to the entity acquiring the projects product and users are those who will directly utilize the projects product. Performing organization. The enterprise whose employees are most directly involved in doing the work of the project.

 Project team members. The group that is performing the work of the project. Project management team. The members of the project team who are directly involved in project management activities. Sponsor. The person or group that provides the financial resources, in cash or in kind, for the project. Influencers. People or groups that are not directly related to the acquisition or use of the projects product, but due to an individuals position in the customer organization or performing organization, can influence, positively or negatively, the course of the project. PMO. If it exists in the performing organization, the PMO can be a stakeholder if it has direct or indirect responsibility for the outcome of the project.

Organizational Planning
Mission Statements and Projects Change from above, Strategic Planning Change from below Change from outside

STRATEGIC PLANNING
QUESTIONS TO EXPLORE OUTCOME

What are we here to do? What are we now? What do we want to achieve? How will we go about achieving it?

Mission Statement
SWOT Analysis Market Analysis, Forecasting, PEST, Technological forecasting

Objectives Strategies Plans

Enhanced SWOT Analysis

Many Environmental Opportunities

QUADRANT 3
Crucial Internal Weaknesses
Supports a turnaround-style strategy

QUADRANT 1
Calls for an aggressive strategy

Enormous Internal Strengths

QUADRANT 4
Will need a defensive-style strategy

QUADRANT 2
Requires a diversification strategy

Grave Environmental Threats

Two Investigative Tools

Pareto Analysis
The 80/20 Rule

Cause and Effect Diagram

Identify root-cause

Pareto Chart Example

Cause and Effect Diagram

How is a Pareto Chart constructed?

Step 1 - Record the data Step 2 - Order the data Step 3 - Label the axis Step 4 - Plot the bars Step 5 - Add a cumulative line, title, legend, and date

ACTIVITY 3
You are part of a team responsible for the quality of the Hostel Room. You want to improve the service you provide but are not sure where to begin or where to concentrate your efforts. You decide to keep track of the complaints received over a three-month period. Rank order your data in an analysis sheet and draw a Pareto Chart.

Now answer the following questions:

1. Does the Pareto Principle apply? 2. Where should you concentrate your efforts? 3. Do your proposed efforts pass a sanity check? In other words, do the top problems really stand out as most important to you and your customers?

Answer Activity 3

Answer Activity 3

DISCUSSION ACTIIVTY 3
In this problem, the Pareto Principle is very much in evidence. Notice the sharp change of slope after the first three items. Most Pareto Charts will have such a break point. Attacking the problems to the left of the break point will have the greatest payoff. In fact, if you solve these problems, you will have dealt with 81.7 percent of the deficiencies uncovered in your customer survey. Therefore, this is where you should concentrate your initial efforts. Later, you can do another Pareto analysis which will probably show some of the lesser problems becoming more dominant. How about your sanity check? Well, not only is the cockroach problem number one in your survey, but from a health standpoint, it merits immediate action.

Organizational Objectives
What we want to achieve? Organizations can have diverse objectives
Increase Profits Improve Living Standards Electricity Provision Encourage use of Public Transport

Identifying Objectives, Towards Project Proposals

Brainstorming Nominal Group Techniques Affinity Diagrams

Positives: People Involvement, Clarity of Purpose

Matrix Diagrams From Objectives to Strategies

ACTIVITY 4
Produce a short Matrix Diagram for the following objectives:
Develop Study Skills Study Project Management Pass a Professional Exam

List your key strategies and indicate their links with these objectives

DISCUSSION ACTIIVTY 4
Your Key strategies might be:
Attend a course on study skills Read PMBOK Take notes Revise notes

The links might be

Project Conception
PROJECT PROPOSALS ???
MISSION

ANALYSES & FORECASTING

Proprieties and Linkages drawn Proposals for Actions become detailed Their costs and benefit analysis becomes clearer STRATEGIES PLANS

OBJECTIVES

Requirements for the Project

Getting requirements right
What are acceptable requirements What are acceptable demonstration of each elements of those requirements Resolution of conflicts that may appear from requirements Agreement on & documentation of REQUIREMENTS and DEMONSTRATION

Requirements vs. Specifications

Customer Complaint Resolution Department Requirement: To enable workforce to travel independently of the public transport system Specification: Get each group a 1000 cc <brand> car, capable of carrying <x> passengers.

ACTIVITY 5
Assume you are drawing up requirements for a door. First list 2 or 3 qualities the door should exhibit, then refine this by listing 2 contributing factors for each quality

DISCUSSION ACTIIVTY 5

More can be added, such as strength etc

Classification of Project Types

Projects can be classified as social sector and infrastructure. Some examples are: Transportation Utilities Education Public Safety Recreation Development Research Defense Conservation Highways, mass transit, airports Electric power, gas, telephones Schools, colleges, dormitories Police, fire, National guard Parks, playgrounds, historic sites Harbors, dams, irrigation, Health, space, agriculture Military equipment and systems Forests, shorelines, pollution

Life Is A Project

111

Project Selection

Rapid Adoption of Project Management means:

there are many projects that fall outside the organizations stated mission; there are many projects being conducted that are completely unrelated to the strategy and goals of the organization; and there are many projects with funding levels that are excessive relative to their expected benefits.

Problems in Organizations managing Multiple Projects

Delays in one project delay other projects because of common resource needs or technological dependencies The inefficient use of corporate resources results in peaks and valleys of resource utilization Bottlenecks in resource availability or lack of required technological inputs result in project delays that depend on those scarce resources or technology

Success with Project Management

30% projects canceled midstream 50% + completed projects 190% over budget & 220% late Primary motivation of organizations to improve & expand their project management processes due to:
Major troubled or failed projects new upcoming mega-projects to meet competition maintain their market share

 Firms that bought PM skills from consultants:

tend to see it as a commodity rely on outsourcing difficult activities, even entire projects

Those who developed the skills internally:

Saw project management as offering a proprietary competitive advantage Moved toward recognizing project management as a viable career path in their organization, leading to senior management positions

Project Management Maturity

controlled & measured processes, results more in line with plans Managed

some processes exist, inconsistent management, unpredictable results

Adoptive

Organized
Abbreviated standardized processes, more predictable results

continuous improvement in processes, success is normal, performance keeps improving

Ad-hoc disorganized, accidental successes & failures

Project Management in Practice Implementing Strategy through Projects at Blue Cross/Blue Shield

Since strategic plans are usually developed at These may include new product development, the executive level, implementation by middle upgrading information systems, or level managers is often a problem due to poor implementing facility automation systems. understanding of the organizations CPAG also works with the project teams to capabilities and top managements develop their plans, monitoring activities, and expectations. However, bottom-up reports so they dovetail with the strategic development of departmental goals and intentions. future plans invariably lacks the vision of the The primary benefits of the system have been overall market and competitive environment. that it allows: At Blue Cross/Blue Shield (BC/BS) of Louisiana, senior management to select any corporate this problem was avoided by closely tying initiative and determine its status; project management tools to the PMs to report progress in a relevant, organizational strategy. systematic, timely manner; The resulting system provided a set of checks all officers, directors, and managers to view and balances for both BC/BS executives and the corporate initiatives in terms of the project managers. Overseeing the system is a overall strategic plan; and newly created Corporate Project senior management to plan, track, and Administration Group (CPAG) that helps senior adjust strategy through use of financial management translate their strategic goals project data captured by the system. and objectives into project management performance, budget, and schedule targets.

Diab P (98)

Questions - Project Management in Practice

Is the new project management approach to implementing strategy bottom-up or topdown? What is the role of projects and their management in this new process? That is, wouldnt a functional approach have worked just as well? What other benefits might you expect from a system such as this?

Questions ?

Additional/Linked slides

PERT Chart

Gantt Chart

Collect Requirements: Data Flow Diagram