Project Management

1. Project Management Barbaros Ozdogan Internet Business Systems bozdogan@mercynet.edu

2. Outline • Objectives of the lecture • What are project characteristics • How to run a project (Project Management)

3. Objectives of the lecture • Define Project Management and discuss its importance and main features • Give a conceptual framework related to project management.

4. What is a Project A sequence of : - Unique, - Complex - Connected activities - that has a beginning and an end (a deadline) - and is carried out to meet a given goal within budget, and according to specification. Wysocki, Beck, and Crane

5. Comments on the definition(1/2) • An activity is a chunk of work • A project has never happened before, and is never likely to happen again under the same conditions • While some tasks may overlap, many tasks are dependent on the completion of other tasks. • The development of a system represents a goal.

6. Comments on the definition (2/2) • Projects have a completion date. The deadline is beyond the control of anybody working on the project. • Projects have resource limits • The System must satisfy the business, user, and management expectations and specifications.

7. Project Planning example: Map Out Concurrent and Dependent Tasks

8. Factors constraining project success : SCHEDULE SCOPE CUSTOMER SATISFACTION COST

9. SCOPE The project scope is all the work that must be done in order to satisfy the customer that all the deliverables meet the requirements and acceptance criteria agreed upon at the onset of the project.

10. SCHEDULE The schedule for a project is the timetable that specifies when each activity should start and finish. The project objective usually states the time by which the project scope must be completed in terms of a specified date agreed upon by the customer and the individual or organization performing the work.

11. COST The cost is the amount that the customer has agreed to pay for acceptable project deliverables. This is generally based on budget that includes the costs for the various resources that work on a project.

12. Customer Satisfaction The objective of a project is to complete the scope within budget by a certain time and to the customer’s satisfaction. Customer satisfaction is an ongoing process that must be actively managed by the project manager. Ongoing communication is required between the customer and project manager in order to keep expectations locked in and highlight any changes in project expectations or any issues that the customer has.

13. CLASS PARTICIPATION What are the 4 phases of the project life cycle ? ? ? ? ?

14. 4 Phases of the project life cycle As a project moves through its lifecycle, different organizations, individuals, and resources play dominant roles. IDENTIFY A NEED DEVELOP A PROPOSED SOLUTION PERFORM THE PROJECT TERMINATE THE PROJECT

15. Identify the need : The first phase of the project life cycle involves the identification of a need, problem, or opportunity and can result in the customer’s requesting proposals to address the identified need. Document that outlines the need and requirements for a project. Request for Proposals

16. Develop a Proposed Solution : The second phase of the project life cycle is the development of a proposed solution to address the need or problem. This phase results in the submission of a proposal to the customer by one or more contractors.In this phase the contractor effort becomes dominant as they develop the plan. Contract is awarded to the the proposal that is selected by the customer Document that outlines the need and requirements for a project. Request for Proposals Contract Proposal Proposal Response on: How the need will be fulfilled. How much will it cost. How long will it take. Proposal Proposal

17. Perform the Project : The third phase of the project life cycle is the implementation of the proposed solution. This phase involves doing the detailed planning for the project and then implementing the plan to accomplish the project. This phase utilizes the most resources by type and volume. Architects Engineers Steelworkers Carpenters Electricians Painters Landscapers Interior Touches

18. Terminate the Project : The final phase of the project life cycle is terminating the project. When a project is completed, certain close- out activities need to be performed, such as confirming that all of the deliverables have been completed and accepted by the customer. Deliverables Complete Invoices Paid Performance Evaluation Customer Feedback

19. Project Resources • Human resources : competencies, talents • Time • Financial resources (budget) • Equipment

20. What is Project Management?

21. What is Project Management? • For any systems development project, effective project management is necessary to ensure that • the project meets the deadline, • is developed within an acceptable budget, • and fulfills expectations and specifications. • Project management is the process of defining, planning, directing, monitoring, and controlling the development of an acceptable system at a minimum cost within a specified time frame.

22. Project Management Objective of Project Management: To effectively manage time, costs, and resources while providing high-quality solutions and deliverables. • Scope and Objectives What? • Project Approach How? • Work Effort and Schedule When? • Organization and Staffing Who? • Professional Fees How Much? • Key Risks and Action Plan What Can Go Wrong?

23. Project Management • Scope and Objectives (What?) - What kind of engagement is it and what are the desired business outcomes of the engagement? • Approach to Completing Work and Key Deliverables (How?) - What structured approaches, methodologies, and tools will be employed to get the work done, what is the sequence of the work, and what are the key deliverables the work will produce? • Work Effort and Schedule(When?)- What is the estimated workday effort by skillset required to complete the work and what is the timeframe? • Organization and Staffing (Who?) - How will the members be organized and what are the different roles and responsibilities? • Professional Fees and Out-of-Pocket Expenses(How much?) - Is the engagement fixed fee or time and materials, what is the billing schedule, and what out-of-pocket expenses will the client incur? • Key Risks and Action Plan(What can go wrong?)- What are the key engagement risks that could impede the desired outcome and what are the mitigating strategies to be employed?

24. The Project Management Process: “planning the work and then working the plan” Define the Project Objective Clear definition of the deliverables between the customer and project manager Divide and sub-divide the project into manageable pieces. WORK BREAKDOWN STRUCTURE. Breakdown the Work Structure Define the specific activities and place them in order of execution. Work Packages Sequence the Work Packages Create a network diagram that has an activity number and a responsible person. Develop a Network Diagram A roadmap to ensure that the project is completed on time and within budget. Make a Time & Cost Estimate for each Activity Develop a baseline plan Estimate a cost and time for each activity

25. A Network Diagram Prepare Mailing Labels This diagram shows the necessary sequence and interdependencies of activities to achieve the project objective. 4 STEVE Print Questionnaire Mail Questionnaire /Get Responses ID Target Customers Develop Draft Questionnaire Review & Finalize Comments 5 STEVE 8 STEVE 1 SUSAN 2 SUSAN 3 SUSAN Develop Data Analysis Software Test Software 6 ANDY 9 ANDY Accountable Person Activity Number Develop Software Test Data 7 SUSAN

26. Project Management • Different organizations take different approaches to project management. • One approach is to appoint a project manager from the ranks of the team (once it has been formed). • This approach is a result of the self-directed team paradigm. • But many organizations have found that successful project managers apply a unique body of knowledge and skills that must be learned. • These organizations tend to hire and/or develop professional project managers who are assigned to one or more projects at any given time.

27. Successful Project Management Implies • The cooperative efforts of a team • The use of certain managerial techniques • The use of specialized communication software when the team is composed of distant partners • The use of a common language to communicate...

28. Causes of Failed Projects • Failures and limited successes far outnumber successful systems. Why? • Many systems analysts and information technologists are unfamiliar with or undisciplined in the tools and techniques of systems analysis and design. • Many projects suffer from poor leadership and management. • Project mismanagement can sabotage the best application of the systems analysis and design methods.

29. Causes of Failed Projects • One of the most common causes of project failure is taking shortcuts through or around the methodology. • Project teams often take shortcuts for one or more of the following reasons: • The project gets behind schedule and the team wants to ‘catch up.’ • The project is over budget and the team wants to make up costs by skipping methodology steps. • The team is not trained or skilled in some of the methodologies activities and requirements, so they skip them.

30. Causes of Failed Projects • Another common cause of project failures is poor expectations management. • All users and managers have expectations of the project. • Over time, these expectations change and takes the form of scope creep. • Scope creep is the unexpected growth of user expectations and business requirements for an information system as the project progresses. • Unfortunately, the schedule and budget are rarely modified at the same time. • The project manager is ultimately held accountable for the inevitable and unavoidable schedule and budget overruns. • The users' expectations of schedule and budget did not change as the scope changed.

31. Causes of Failed Projects • A similar problem is caused by feature creep. • Feature creep is the uncontrolled addition of technical features to a system under development without regards to schedule and budget. • Each unplanned feature, however impressive, adds time and costs to the overall schedule. • Cost overrun problems: • Many methodologies or project plans call for an unreasonably precise estimate of costs before the project begins. • Poor estimating techniques. • Schedule delays.

32. Causes of Failed Projects • Poor people management can also cause projects to fail. • Another cause of project failure is that the business is in a constant state of change. • If the project’s importance changes, or if the management and business reorganizes, all projects should be reassessed for compatibility with changes, and importance to the business.

33. Standard Project Problems • Lack of a particular competence, needed to achieve the goal, in the team members • Lack of an equipment or component • Technical solution not known • Individual lack of motivation to achieve project goal (the productivity of a workgroup seems to depend on how the group members see their own goals in relation to the goals of the organization) • Project member does not communicate his difficulties. (hope creep) • A task overrun the task deadline (work but no progress) • Conflicts between project members • Team member add features or functions to the deliverables...

34. Reasons for IT Project Failure(based on 1000 IT managers, Standish Group 1995) • Incomplete requirements • Lack of user involvement • Lack of resources • Unrealistic expectations • Lack of executive support • Changing requirement and specifications • Lack of planning • Elimination of need for the project • Lack of IT management • Technology illiteracy

35. Summary:How to carry out a project successfully • Defining the scope of the project • Planning the Project • Implementing the plan (executing) • Controling and monitoring progress • Completing the project

36. The Actions in Project Management: The four C • Communicate • Coordinate • Cooperate • Control

37. Communicate and motivate • To generate a common desire to reach the objective • To transform the goal into reality • To provide a reward system coherent with project goals

38. Need to Coordinate (organize) • To avoid the dispersion of efforts (bad use of resources) • to define the task of each project participant • to have clear responsibility for the project and for each tasks right from the beginning • to plan the necessary resources in terms of manpower, competencies , equipment, finance, ….

39. Task of Project Control • Motivate participants • Control realization of tasks (budget, time, quality) • Project scheduling • Estimate consequences of incidents ( rescheduling,…)

40. To solve all the above problems we need a “talented” PROJECT MANAGER • This section provides an overview of the responsibilities of the project manager, the skills needed to successfully manage projects, and how these skills can be developed. • Responsibilities of the Project Manager • Skills of the Project Manager • Developing the Skills of a Project Manager • Approaches to Effective Delegation • Methods a Project Manager can Manage and Control Changes to the Project • To read more about talent read the attached presentation.PDF file.

41. Responsibilities of the Project Manager • It is the responsibility of the Project Manager to make sure that the customer is satisfied that the • WORK SCOPE IS COMPLETED, WITHIN BUDGET, AND ON-TIME. • The Project Manager has primary responsibility for providing leadership in …. PLANNING ORGANIZATION and CONTROL of the work effort required to meet the project objectives.

42. Responsibilities of the Project Manager PLANNING • PM defines the project objective and reaches agreement with the customer • PM then communicates the project objective and project “vision” to the team • PM develops the plan to attain the objective • SHOULD THE PM INVOLVE THE PROJECT TEAM IN PLAN DEVELOPMENT? • PM reviews the plan with the customer and gains acceptance and commitment • PM plans a measurement system to measure plan, actual, variance

43. Responsibilities of the Project Manager ORGANIZATION “Securing the appropriate resources to do the work” • PM defines task to be done inhouse and which tasks should be done by subcontractors • PM gains commitment from inhouse personnel to work on the project • PM negotiates contact with outsourced resources • PM assign accountability and authority to specific individuals for their tasks • PM creates an environment in which the individuals are highly motivated to work together as a project team. • WHAT CAN BE DONE TO HELP MAKE A GOOD PROJECT ENVIRONMENT ?

44. Responsibilities of the Project Manager CONTROL “Helps distinguish between busy-ness and accomplishments” • PM implements a project management information system that compares actual progress to planned progress. • Team members monitor the progress of their assigned tasks and regularly provide data on progress, schedule, costs. • PM executes regular project review meetings and takes action on off-schedule conditions. • PM actively measures in order to forecast potential off-schedule conditions and increase their ability to take pro-active action.

45. Skills of the Project Manager SKILLS The PM is a key ingredient in the success of a project. In addition to providing experienced process execution the PM must possess a set of skills that will both inspire the project team to succeed and win the confidence of the customer. Leadership Ability Communication Skills Ability to Develop People Stress Management Skills Time Management Skills Problem Solving Skills Interpersonal Skills

46. Skills of the Project Manager Leadership Ability CLASS PARTICIPATION What is Leadership and what are some fundamental characteristics?

47. Skills of the Project Manager Key Points : Needs to create and communicate a vision Needs to create an environment of trust and high expectations ( attainable) PM should employ a participative and consultative leadership style PM should involve individuals in decisions affecting them and should empower them to make decisions within their assigned area of responsibility Must balance empowerment with control through use of limits and guidelines PM understands and manages what motivates team members What are some project situations that can de-motivate team members? PM needs to be highly motivated and lead-by-example Leadership Ability

48. Skills of the Project Manager Ability to Develop People CLASS PARTICIPATION Why is it necessary for a PM to have people development skills and what could be some project mechanisms that could be employed to increase skills?

49. Skills of the Project Manager Key Points : Effective PM has a commitment to training in order to ensure that all project personnel have the opportunity to develop their skills and knowledge PM skills are very important to organizations Development Mechanisms: Scheduled Training during Project “Rookie ” work along training for specific tasks Formal Off-Site Training Ability to Develop People

50. Skills of the Project Manager Communication Skills CLASS PARTICIPATION Why are communication skills important and what are some methods of communication that would be used on a project ?