Project Management

1. Project Management

2. Project Scheduling SEEM 3530 2 How many events? How many participants? Where are the events located? How should the events be scheduled? What infrastructure needs to be built? When to build? Completion time?

3. Project Scheduling SEEM 3530 3 What is a Project? A project is a “temporary endeavor undertaken to create a unique product or service”. A project is a well-defined set of tasks or activities that must all be completed in order to meet the project’s goals. Two prevalent characteristics: Each task may be started or stopped independently of other tasks; Tasks are ordered such that they must be performed in a given sequence.

4. Project Scheduling SEEM 3530 4 Examples of Projects Building the pyramids Apollo moon landing mission Developing MS Windows Making The Lord of the Rings Organizing the Olympics Games Developing and marketing a new drug Implementing a new company wide IT system Designing this course Project management spans both the manufacturing and service sectors.

5. Project Scheduling SEEM 3530 5 Other examples of “projects" Construction of dams, warehouse, freeways, railways, etc. Design of new models of products, such as new cars, ships, and aircraft. Development of computer systems, software, etc. New product marketing, advertising campaigns, global mergers, capital acquisitions, etc. Set-up of a new enterprise, organization, department, office, etc. Performing major maintenance or repair.

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7. Project Scheduling SEEM 3530 7 Definition of a “project" A project is an organized endeavor aimed at accomplishing a specific non-routine set of tasks within a certain time and under a certain resource constraint. Time required and costs are usually significant.

8. Project Scheduling SEEM 3530 8 Characteristics of projects There is a set of well-defined goals. There is a specific start and a specific end point. The endeavor is unique and not repetitious. A project usually contains costs and time schedules to produce a specified product or result. A project often cuts across many organizational and functional lines, and thus there are requirements for specific expertise, and sometimes conflicts with within the project team.

9. Project Scheduling SEEM 3530 9 Project management The means, techniques, and the concepts used to run a project and achieve its objectives subject to various constraints and limits on time, resources, technology, and personnel. Planning Organising resources Directing and Controlling

10. Project Scheduling SEEM 3530 10 Project management The main components : Project initiation, selection, and definition. Project organization Analysis of activities/tasks Project scheduling Project budgeting Resource management Project execution and control Project termination

11. Project Scheduling SEEM 3530 11 What is a Project Manager?

12. Project Scheduling SEEM 3530 12 Characteristics Needed as a Project Manager During planning: Detail oriented, organized, logical thinker, can deal with uncertainty, creative. During execution: Effective communicator, problem solver, quick thinker, good memory. During assessment: Analytic, sensitive, continuous improver. During collaboration: Effective communicator, facilitator, motivator, team builder. Acknowledgment: Ms. Sally Stark, Director of Program Management, New Product Innovations, Powell, Ohio, USA

13. Project Scheduling SEEM 3530 13 History of Project Management Some early examples of project management was the construction of the pyramids in Egypt, building the Great Wall of China Henry L. Gantt (1861-1919) added an important visualization tool around 1917 with the Gantt Chart

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15. Project Scheduling SEEM 3530 15 History of Project Management In 1957, J.E. Kelly of Remington-Rand and M.R. Walker of DuPont Company developed the Critical Path Method (CPM) for project scheduling, i.e. the basic algorithm used in MS Project scheduling maintenance shutdown of chemical plants Also in the late 1950s, Booz Allen Hamilton developed the Program Evaluation and Review Technique (PERT), which models uncertainty in project management Lockheed Aircraft, US Navy Special Projects Office: Polaris Missile Project New directions since 1995: critical chains, agile and extreme project management

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17. Project Scheduling SEEM 3530 17 Importance of Project Management Project management effectively controls organizational change, allowing organizations to introduce new products, new processes, and new programs effectively. Projects are becoming more complex, making them more difficult to control without a formal management structure. Projects with substantially different characteristics, especially in IT, are emerging. Project management helps cross-functional teams to become more effective.

18. Project Scheduling SEEM 3530 18 Importance of Project Management “At last we are beginning to see research which proves how important project management is ... without well-trained and capable project managers the percentage of GDP spent through projects is inflated due to many exceeding their budget through poor management.”

19. Project Scheduling SEEM 3530 19 Manufacturing Perspective Flowshop: The same sequence of operations is used to create each product or service. Job Shop: A product or service only flows through centers which are required to create it.

20. Project Scheduling SEEM 3530 20 Characteristics of Flowshop, Job Shop and Project

21. Project Scheduling SEEM 3530 21 Project Management versus Process Management “Ultimately, the parallels between process and project management give way to a fundamental difference: process management seeks to eliminate variability whereas project management must accept variability because each project is unique.”

22. Project Scheduling SEEM 3530 22 Measures of Project Success Overall perception Cost Completion time Technical goals, compared to initial specifications (“scope”) Technical goals, compared to other projects in the organization Technical goals, taking into account the problems that arose in the project

23. Project Scheduling SEEM 3530 23 Nine Factors Critical to the Success of Many Projects Clearly defined goals Competent project manager Top management support Competent project team members Sufficient resource allocation Adequate communication channels Effective control mechanisms Use of feedback for improvement Responsiveness to clients

24. Project Scheduling SEEM 3530 24 Challenges of Project Management Initiation: Over-commitment - management commits to a schedule, budget, or deliverable that is unrealistic. Planning: Outsourced contributors present problems which can affect client satisfaction and delivery. Execution: Resource competition / unfocused resources result in missed estimates. Controlling: Change control is good, but apparently not nearly as good as apathy. Closing: “We need project managers, not historians!” Acknowledgment: Mr. Carl Long, Medical IT Portfolio Manager, Cardinal Health, Dublin, Ohio

25. Project Scheduling SEEM 3530 25 Famous Project Failures (1 of 5) In 1988, Westpac Banking Corporation initiated a 5-year, $85m project to improve its information system. Three years later, after spending $150m with nothing to show for it, they cancelled the project and eliminated 500 IT development jobs.

26. Project Scheduling SEEM 3530 26 Famous Project Failures (2 of 5) The computerized baggage handling system at the Denver International Airport delayed the opening of the airport from March 1994 to February 1995 and added $85 million to the original budget. The baggage system tried to unload bags that were jammed on the conveyor belt. The system also loaded bags into telecarts that were already full. Hence, many bags fell onto the tracks, jamming the telecarts…

27. Project Scheduling SEEM 3530 27 Lack of preparations behind H.K. airport opening chaos Asian Economic News, Jan 25, 1999 A Hong Kong government commission Friday attributed last July's chaotic systems operations at the opening of the territory's new airport to overconfidence by the authorities and lack of coordination. The government-appointed Commission of Inquiry led by Justice Woo Kwok-hing said in a report that the chaos at the Chek Lap Kok airport could have been avoided by postponing operations by about two months. The report said the Airport Authority and the major cargo operator, Hong Kong Air Cargo Terminals Ltd. (HACTL), were overconfident in assessing the risks involved in compressing the testing and training time for the new systems at the airport.

28. Project Scheduling SEEM 3530 28 London Heathrow Terminal 5 Opening (2008)

29. Project Scheduling SEEM 3530 29 Famous Project Failures (3 of 5) Disney's shipbuilder was six months late in delivering its new cruise ships in 1998. Thousands of tourists who had purchased tickets had to be compensated for making different plans.

30. Project Scheduling SEEM 3530 30 Famous Project Failures (4 of 5) The “Big Dig” road construction project in Boston (1987-2007) was budgeted at $5.8b but eventually cost over $15b. The project resulted in criminal arrests, thousands of water leaks, the death of a motorist from a tunnel collapse, and hundreds of millions of dollars in lawsuits.

31. Project Scheduling SEEM 3530 31 Famous Project Failures (5 of 5) In 2005, UK grocery chain J. Sainsbury wrote off its $526m investment in an automated supply chain management system. They hired 3,000 additional workers to stock their shelves manually.

32. Project Scheduling SEEM 3530 32 Reasons Why Projects Fail Improper focus of the project management system, e.g. too much focus on low level details Fixation on first budget estimates Too much reliance on inaccurate project management software Too many people on the project team Poor communication within the project team Incentives that reward the wrong actions

33. Project Scheduling SEEM 3530 33 Common Excuses for Project Failures Unexpectedly poor weather delayed construction Unforeseeable poor performance by contractors Senior management imposed an unrealistic schedule Instructions by senior management were unclear Many wasteful “synchronization” meetings interrupted actual work

34. Project Scheduling SEEM 3530 34 PM Thinking Exercise: Office Move Your professional services firm (100 employees) is moving between two downtown office buildings The CEO has asked you to serve as project manager for this weekend move You do not have substantial project management experience There is a budget for hiring office movers, and for new customized furniture The continuation of revenue generation activities is important

35. Project Scheduling SEEM 3530 35 Comments about Office Move This type of project is not particularly complex or difficult to manage, so general PM principles apply. One reason is that everyone understands what a successful project would look like, which is not the case with, for example, many IT projects. Another reason is that ownership is general, rather than limited to some members of the organization, so everyone is “pulling in the same direction”. An office move or expansion can be a high morale event (improved work environment) or a low morale event (concern about disruption). Three sources of difficulty are commonly associated with this type of project. The first is the need for substantial outsourcing. The second is the possibility of scope changes. The third is disruption to normal work during the move.

36. Project Scheduling SEEM 3530 36 Management of IT Projects More than $250 billion is spent in the US each year on approximately 175,000 information technology projects. IT project management is an $850 million industry and is expected to grow by as much as 20 percent per year.

37. Project Scheduling SEEM 3530 37 IT Project Outcomes

38. Project Scheduling SEEM 3530 38 Why Do IT Projects Fail? Ill-defined or changing requirements Poor project planning/management Uncontrolled quality problems, e.g. software fails to complete computing task in time Unrealistic expectations/inaccurate estimates Adoption of new technology without fully understanding it

39. Project Scheduling SEEM 3530 39 Design (Scope), Cost, Time Tradeoffs

40. Project Scheduling SEEM 3530 40 Project management The main components : Project initiation, selection, and definition. Project organization Analysis of activities/tasks Project scheduling Project budgeting Resource management Project execution and control Project termination