THE MANAGERIAL PROCESS

1. Project Management THE MANAGERIAL PROCESS 1 BMFP 4542 Haeryip Sihombing & Nor Akramin Universiti Teknikal Malaysia Melaka (UTeM)

2. An Overview of Project Management .

3. What is a Project? A project is an interrelated set of activities with a definite starting and ending point, which result in a unique outcome for a specific allocation of resources. • Project Defined: A complex, non-routine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs.

4. What is a Project? • Major Characteristics of a Project • Has an established objective. • Has a defined life span with a beginning and an end. • Requires across-the-organizational participation. • Involves doing something never been done before. • Has specific time, cost, and performance requirements.

5. What is a Project? • Three main goals of any project: • Complete the project on time or earlier. • Do not exceed the budget. • Meet the specification to the satisfaction of the customer. • Needs the skills of multiple professions and organizations • Requiring new combination of skills and resource in the project process • Differences will arise with each replication, especially due to uncertainties. So can change the characteristic and countermeasures.

6. Programs versus Projects • Program Defined • A series of coordinated, related, multiple projects that continue over an extended time and are intended to achieve a goal. • A higher level group of projects targeted at a common goal. • Example: • Project: completion of a required course in project management. • Program: completion of all courses required for a business major.

7. Comparison of Routine Work with Projects Routine, Repetitive Work Taking class notes Daily entering sales receipts into the accounting ledger Responding to a supply-chain request Practicing scales on the piano Routine manufacture of an Apple iPod Attaching tags on a manufactured product Projects Writing a term paper Setting up a sales kiosk for a professional accounting meeting Developing a supply-chain information system Writing a new piano piece Designing an iPod that is approximately 2 X 4 inches, interfaces with PC, and stores 10,000 songs Wire-tag projects for GE and Wal-Mart

8. Project Management • Project managementis a systemized, phased approach to defining, organizing, planning, monitoring, and controlling projects. • A collection of projects is called aprogram, which is an interdependent set of projects with a common strategic purpose. • A cross-functional effort: Even though a project may be under the overall purview of a single department, other departments likely should be involved.

9. Project Management Questions • What activities are required to complete a project and in what sequence? • When should each activity be scheduled to begin and end? • Which activities are critical to completing the project on time? • What is the probability of meeting the project completion due date? • How should resources be allocated to activities?

10. The Nature of Project Management • Characteristics of Projects: purpose, life cycle, interdependencies, uniqueness, and conflict. • Project Management Process:planning (work breakdown structure), scheduling, and controlling. • Selecting the Project Manager: credibility, sensitivity, ability to handle stress, and leadership. • Building the Project Team: Forming, Storming, Norming, and Performing. • Principles of Effective Project Management: direct people individually and as a team, reinforce excitement, keep everyone informed, manage healthy conflict, empower team, encourage risk taking and creativity. • Project Metrics: Cost, Time, Performance

11. Project Life Cycle

12. The Challenge of Project Management • The Project Manager • Manages temporary, non-repetitive activities and frequently acts independently of the formal organization. • Marshals resources for the project. • Is linked directly to the customer interface. • Provides direction, coordination, and integration to the project team. • Is responsible for performance and success of the project. • Must induce the right people at the right time to address the right issues and make the right decisions.

13. Project Team • Selecting the right project manager is critical and specific skills are needed. • Facilitator: Able to resolve conflicts, have leadership skills and a systems view. • Communicator: Ability to keep senior management informed, communicate progress, and work with team members. • Decision Maker: Able to organize members and make difficult decisions. • Team members need to be technically competent, dedicated, and able to work well with other team members.

14. The Importance of Project Management • Compression of the product life cycle • Global competition • Knowledge explosion • Corporate downsizing • Increased customer focus • Rapid development of Third World and closed economies • Small projects that represent big problems • Factors leading to the increased use of project management:

15. Integrated Project Management Systems • Problems resulting from the use of piecemeal project management systems: • Do not tie together the overall strategies of the firm. • Fail to prioritize selection of projects by their importance of their contribution to the firm. • Are not integrated throughout the project life cycle. • Do not match project planning and controls with organizational culture to make appropriate adjustments in support of project endeavors.

16. Integrated Management of Projects

17. The Technical and Sociocultural Dimensionsof the Project Management Process

18. Organization Strategy and Project Selection Having a Nice Break Next to