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Project Management

Project Management. BMCF. Agenda – Oct. – Dec. 2011. Instructor Introduction Timetable and Syllabus Group Setup Session 1 : Projects in Contemporary Organizations; The Project Manager; Project Organization; Introduction; Defining the Project

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Project Management

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  1. Project Management BMCF

  2. Agenda – Oct. – Dec. 2011 • Instructor Introduction • Timetable and Syllabus • Group Setup • Session 1 : Projects in Contemporary Organizations; The Project Manager; Project Organization; Introduction; Defining the Project • Session 2 : Project Planning; Conflict and Negotiation; Budgeting and Cost Estimation; Scheduling; The Planning Process • Session 3 : Resource Allocation; Monitoring and Information Systems; Project Control; Controlling the Project • Session 4 : Risk Management; Project Auditing; Project Termination; Putting the Discipline to work • Session 5 : Future of project Management • Project/Oral Presentation • Final Exam

  3. Instructor Introduction – Eric Abhyankar • Consultant in Prague – customers include DHL, CSOB, US Hedge Funds • Teach at UNVA, VSFS, VSM, UJEP • Investment Banker at Swiss Bank (UBS) • 10 years progressive Management Consulting experience at AT&T, IBM, UBS, DHL • PM experience in USA, Asia, Europe • Masters in CS, Masters in PM, MBA

  4. Overview of Course Activities Assignment and Credit

  5. Session 3 : Controlling the Project Resource Allocation; Monitoring and Information Systems; Project Control Sessions Session 1 : Defining the Project Projects; The Project Manager; Project Organization; Introduction to Project Planning Session 2 : The Planning Process Project Planning; Conflict and Negotiation; Budgeting and Cost Estimation; Scheduling; • Session 4 : Putting the Discipline to work Project Auditing; Project Termination

  6. 1.1 Projects in Contemporary Organizations • Why manage projects? • Need for Management of ever expanding Knowledge • Growing demand for customized solutions • Globalization and global competition • General direct objectives of any project – performance (scope), time (schedule), cost (under budget), quality • Indirect objectives – client satisfaction (impact), project efficiency, organizational improvement, business development (sales opportunities)

  7. 1.2 Project Stakeholders • Project Manager • Project Team • Senior Management • The Client • The Client’s End Customers • Others?

  8. 1.3 Project Management defined PMI Definition of a Project: A project is a temporary endeavor undertaken to create a unique product or service. Temporary means that every project has a definite beginning and a definite end. Unique means that the product or service is different in some distinguishing way from all similar products or services. PMI definition of Project Management: Project Management is the application of knowledge, skills, tools and techniques to project activities in order to exceed or meet stakeholder needs and expectations from a project.

  9. 1.4 Project Lifecycle • All projects are divided into phases: A project phase is completed when a verifiable work product (deliverable) is completed. The completion of a project phase is marked by reviews to determine a) if project should continue and b) detect and correct errors cost effectively. • Collectively, the project phases are known as the project lifecycle. • Example : See power point slide Completion & Closure Build & Test Prototype Review System Design Architecture and Design document Project Start up Approve Plan

  10. 1.4 Project Management Maturity • Project Management Maturity models are used to allow organizations to benchmark the best practices of successful project management firms. • Development of better project management practices is an evolutionary process involving a systematic commitment to continuous improvement. • Example CMMI (Capability and Maturity Model) Level 5 Level 4 Level 3 Level 2 Level 1

  11. 1.5 Project Organization Pure Project Functional Matrix The project is a self contained unit with its own technical staff, own administration tied to the parent firm by tenuous strands of periodic progress reports and oversight. A pure project organization overlaid on the functional divisions of the parent firm. A hierarchy where each employee has one clear superior. Staff are grouped by specialty such as production, marketing, engineering etc. Pure functional, pure project and Matrix co-exist Mixed

  12. 1.6 Group Exercise • Student Introductions • Project Experience/Background • Identify some typical projects in your company/organization • If you do not have typical projects in your organization think of a business you would like to do • Who are the stakeholders? • What is the Project Organization like? • In what part of the Project Lifecycle are they in?

  13. 1.7 Project Selection – What are the criteria for model selection? • Realism • Capability • Flexibility • Ease of Use • Cost EXERCISE: What is your criteria in selecting a project? See Examples on Page 92, 93

  14. Session 3 : Controlling the Project Resource Allocation; Monitoring and Information Systems; Project Control Sessions Session 1 : Defining the Project Projects in Contemporary Organizations; The Project Manager; Project Organization Session 2 : The Planning Process Project Planning; Conflict and Negotiation; Budgeting and Cost Estimation; Scheduling • Session 4 : Putting the Discipline to work Risk Management; Project Auditing; Project Termination

  15. 2.1 The Project Planning process • Also known as Project Scope Management (PMI) • Initiation or Initial Project Coordination – committing the organization to begin the next phase of the project. • Scope planning – developing a written scope statement as the basis for future project decisions. • Scope definition – subdividing the major project deliverables into smaller more manageable components • Scope Verification – formalizing acceptance of the project scope • Scope Change Control – controlling changes to project scope

  16. 2.2 Work Breakdown Structure (WBS) ***** • Definition – A WBS is a deliverable oriented grouping of project elements that organizes and defines the total scope of the project. WORK NOT IN THE WBS IS OUTSIDE THE SCOPE OF THE PROJECT. • A WBS is presented in chart form (similar to a spreadsheet) where each descending level represents an increasingly detailed description of the project elements. • Each item in the WBS is assigned a unique identifier; these identifiers collectively are known as code of accounts. The items at the lowest level of the WBS are referred to as work packages. • In very complex projects, work element descriptions are often collected in a WBS dictionary. A WBS dictionary will typically include work package descriptions as well as other planning information such as schedule dates, cost budgets, staff assignments. • EXERCISE: WBS

  17. 2.3.1 Inputs to Initiation • Product description • Strategic plan • Project selection criteria • Historical information

  18. 2.3.2 Inputs to Scope planning • Product description • Project charter • Constraints • Assumptions

  19. 2.3.3 Inputs to Scope Definition • Scope statement • Constraints • Assumptions • Other planning outputs • Historical information

  20. 2.3.4 Inputs to Scope Verification • Work results • Product documentation

  21. 2.3.5 Inputs to Scope Change Control • Work breakdown structure • Performance Reports • Change Requests • Scope Management plan

  22. 2.4 Project Planning • What is Project Integration Management? – includes the processes required to ensure that the various elements of the project are properly coordinated. • Project plan development • Project plan execution • Overall Change control

  23. 2.4.1 Elements of a Project Plan (PMI) • Project Charter • A description of the project management approach or strategy (a summary of the individual management plans from the other knowledge areas). • Scope statement which includes project deliverables and the project objectives • Cost estimates, scheduled start dates and responsibility assignments to the level of the WBS at which control will be exercised. • Performance measurement baselines for schedule and cost • Major milestones and target dates for each • Key or required staff • Key risks, including constraints and assumptions, planned responses for each management plans, including scope management plan, schedule management plan, etc. • Open issues and pending decisions

  24. 2.4.2 Group Exercise • Each Group should pick one project from the list of typical projects in their organization or companies • Write the Project Plan incorporating the elements of the project plan (Assume that the project has not yet started). • Hint: Use the WBS you have prepared earlier

  25. 2.4.3 Project Plan Execution • What are the tools and techniques required for Project plan execution? • General Management skills • Product skills and knowledge • Work authorization system • Status review meetings • Project Management information systems • Organizational procedures • QUESTION: What percentage of a project’s budget will be expended in Project Plan execution?

  26. 2.4.4 Overall Change Control ***** • Overall Change Control is concerned with (a) influencing the factors which create changes to ensure that changes are beneficial, (b) determining that a change has occurred and (c) managing the actual changes when and as they occur. • Inputs to Overall Change control System: (a) Project Plan (b) Performance Reports (c) Change Requests • Tools and Techniques for overall change control • Change Control Systems • Configuration Management • Performance measurement • Additional planning • Project Management Information system

  27. 2.5 Conflicts and Negotiation • Under what circumstances do conflicts arise on projects? • When should the PM use negotiation to resolve conflicts? • Project Team conflicts • Customer conflicts – Scope creep • Change Control conflicts • Vendor/Sub contractor conflicts

  28. 2.5.1 Categories of Conflict • Groups working on projects may have different goals and expectations • There is considerable uncertainty about who has the authority to make decisions • There are interpersonal conflicts between people who are parties-at-interest in the project

  29. 2.5.2 Conflicts in the Project Team • Dynamics of team formation • Forming • Storming • Norming • Performing • Adjourning

  30. 2.5.3 Principled Negotiation • Separate the people from the problem • Focus on interests, not positions • Before trying to reach agreement, invent options for mutual gain • Insist on objective criteria

  31. 2.5.4 Why do Project Teams fail? • Poorly developed or Unclear goals • Poorly defined Project Team roles and interdependencies • Lack of Project Team motivation • Poor communication • Poor Leadership • Turnover Among Project Team Members • Dysfunctional behavior

  32. 2.5.4 Group Exercise • Group A - Customer • Group B – Project Team • Group C – Sub contractor • Identify areas of potential conflict. How will you use Principled Negotiation to resolve conflicts?

  33. 2.6 Project Cost Estimation • Project Cost Estimation and Management includes the processes required to ensure that the project is completed within the approved budget. • Resource Planning – determining what resources (people, equipment, materials) and what quantities of each should be used to perform project activities. • Cost Estimating – developing an approximation (estimate) of the costs of the resources needed to complete project activities. • Cost Control – controlling changes to the project budget

  34. 2.6.1 Inputs to Resource Planning • Work breakdown structure • Historical information • Scope statement • Resource pool description • Organizational policies

  35. 2.6.2 Inputs to Cost Estimating • Work breakdown structure • Resource Requirements • Resource Rates • Activity duration estimates • Historical information • Chart of accounts

  36. 2.6.3 Inputs to Cost Budgeting • Cost Estimates • Work breakdown structure • Project schedule

  37. 2.6.4 Inputs to Cost Control • Cost Baseline • Performance Reports • Change requests • Cost management plan

  38. 2.7 Scheduling • Also known as Project Time Management. What does Scheduling consist of? • Activity Definition – identifying the specific activities that must be performed to produce the various project deliverables • Activity sequencing – identifying and documenting interactivity dependencies. • Activity Duration Estimating – estimating the number of work periods which will be needed to complete individual activities • Schedule Development – analyzing activity sequences, activity durations and resource requirements to create the project schedule • Schedule control – controlling changes to the project schedule.

  39. 2.7.1 Inputs to Activity Definition • Work Breakdown structure • Scope statement • Historical information • Constraints • Assumptions

  40. 2.7.2 Inputs to Activity Sequencing • Activity List • Product description • Mandatory dependencies • Discretionary dependencies • External dependencies • Constraints • Assumptions

  41. 2.7.3 Inputs to Activity Duration Estimating • Activity List • Constraints • Assumptions • Resource requirements • Resource capabilities • Historical information

  42. 2.7.4 Project Network Diagrams - Homework • Find the Network, expected activity time and critical path • Modern PM software such as Microsoft Project can automatically generate CPM networks

  43. 2.7.5 Inputs to Schedule Development • Project Network Diagram • Activity duration estimates • Resource requirements • Resource pool description • Calendars • Constraints • Assumptions

  44. 2.7.6 Inputs to Schedule Control • Project Schedule • Performance reports • Change requests • Schedule management plan

  45. 2.7.7 Group Exercise • Develop a project schedule and project network diagram for the Project you have chosen for earlier exercises. • Develop a budget for your project keeping in mind the resource requirements and the Project schedule. • Hint: Use the Project Plan and WBS you developed earlier

  46. Session 3 : Controlling the Project Resource Allocation; Monitoring and Information Systems; Project Control Sessions Session 1 : Defining the Project Projects in Contemporary Organizations; The Project Manager; Project Organization Session 2 : The Planning Process Project Planning; Conflict and Negotiation; Budgeting and Cost Estimation; Scheduling; • Session 4 : Putting the Discipline to work Risk Management; Project Auditing; Project Termination

  47. 3.1 Resource Allocation • The Resource Allocation problem – The problem of managing the trade offs among time, performance and cost utilizing the available resources. • The extreme points of relationship between time use and resource use are: • Time Limited – The project must be finished by a certain time, using as few resources as possible. It is time, not resource usage that is critical. • Resource limited – The project must be finished as soon as possible, but without exceeding some specific level of resource usage or some general resource constraint. • The points between these two extremes represent time/resource use trade offs

  48. 3.1.1 Critical Path Method - Definitions • Crashing definition – Taking action to decrease the total project duration after analyzing a number of alternatives to determine how to get the maximum duration compression for the least cost. • Critical Path definition – In a scheduling diagram, the series of activities which determines the earliest completion of projects. • Critical Path method definition - A technique used to predict project duration by analyzing which sequence of activities (or path) has the least amount of scheduling flexibility. Early dates are calculated by means of a forward pass using a specified start date. Late dates are calculated by means of a backward pass starting from a specified completion date. • Critical activities in real world projects typically constitute less than 10% of the total activities

  49. 3.1.2 Resource loading and Resource levelling - definitions • Resource loading describes the amounts of individual resources an existing schedule requires during specific time periods. It gives the demands a project or a set of projects will make on a firm’s resources. • Resource levelling aims to minimize the period by period variations in resource loading by shifting tasks within allowances. • Homework - Solved problem on Page 443 of the text

  50. 3.2 Monitoring and Information Systems • Planning, Monitoring, Controlling cycle – key things to be planned, monitored and controlled are time (schedule), cost (budget) and performance/quality (specifications) • PM must examine the project plan in order to extract performance, time and cost goals • These goals should relate in some fashion to each of the different levels of detail e.g. activities, tasks, work packages etc. • Data must be identified that measure achievement against these goals and mechanisms designed that gather and store such data.

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