Beruflich Dokumente
Kultur Dokumente
Manfred Roux
rouxsifi@gmail.com
1
0. Introduction
2
Organizational Topics
Who am I?
Some background & contact details
Schedule of lectures
07/29 - 09:00 18:00
07/30 - 09:00 18:00
07/30 - 09:00 18:00
08/01 - 09:00 - 12:00
Exam
Multiple choice
Date TBD What are your preferences?
Project Management I - 3
Useful References
Organizations
GPM Deutsche Gesellschaft fr Projektmanagement http://www.gpm-ipma.de
PMI Project Management Institute http://www.pmi.org/
Other Resources
PM Software Links: http://en.wikipedia.org/wiki/List_of_project_management_software
PM Software Directory : http://www.infogoal.com/pmc/pmcswr.htm
Good general PM reference site: http://www.maxwideman.com/index.htm
MBTI Personality Types: http://www.myersbriggs.org/my-mbti-personality-type/mbti-basics/
Project Management I - 4
1. Why Project Management
5
Project Management History
Project Management I - 6
What is Project Management?
Project Management I - 7
Projects that Failed : Example Denver
Airport
Building of new airport began 1989, planned opening 1993
Planned cost 1.7 billion USD
Result
Test run 1994 failed
Opening of airport delayed until 02/1995
Adaptation of system created cost overrun of 1 million USD/day!
Damage of 500 million USD, an additional 71 million USD for manual
replacement system
BAE went broke
Project Management I - 8
Example Denver Airport : What Went
Wrong?
Tight schedule
Complexity of system
New technology expected to perform faultlessly
Lack of planning
Changing requirements
Software not adaptable to changing rapidly
requirements
Project Management I - 9
Denver Airport in the News
Project Management I - 10
Lessons Learned
Ref.: http://www.computerworld.com/managementtopics/management/project/story/0,10801,102405,00.html
"The first lesson is that the best way to build a large, complex
system is to evolve it from a small system that works. No one
bothered to get a small system up and running in the first place --
they went for the big bang."
But "once the system gets to a certain point," he said, "there is an
attitude that the project is too big to fail, that 'we have to make it
work now.' There is an unwillingness in upper management to
believe that things are as bad as they are."
Mark Keil, a professor of computer information systems at Georgia
State University and a researcher on failed IT projects, said the plug
should have been pulled in 1994, when the system failed to work as
designed.
"Whenever you talk about building the biggest system in the world,
the most complex, you should take pause. That is often a warning
sign with these projects."
Project Management I - 11
Why Project Management in IT
Project Management I - 12
2001 Report Showed Improvement in
Project Success
Time overruns significantly decreased to 163%
compared to 222%
Cost overruns were down to 145% compared to
189%
Required features and functions were up to
67% compared to 61%
78,000 U.S. projects were successful compared
to 28,000
28% of IT projects succeeded compared to 16%
(up to 35% success rate in 2006)
Project Management I - 13
Why the Improvements?
Project Management I - 14
Factors Leading to Project Success
Executive support
User involvement
Experienced project manager
Clear business objectives
Minimized scope
Standard software infrastructure
Firm basic requirements
Formal methodology
Reliable estimates
The Standish Group International, Inc. 2001
Project Management I - 15
Lets Look @ IBM
16
IBMs Hardware Problem ... 1992
Project Management I - 17
Important Development Limitations
(early 1990s)
Project Management I - 18
Integrated Product Development
A Product Development Management System
Project Management I - 19
IPD Development Process : Key Elements
Disciplined Process
6 Phases
4 Decision Checkpoints
Best-of-Breed Enablers
Market Planning Project Management
User Centered Design Reuse
$APPEALS Portfolio Analysis
Best Practices Tools & Guide
Common Building Blocks
Project Management I - 20
Market Based Development Overview
Project Management I - 21
Event Driven Formal Decision Check Points
(DCPs)
Project Management I - 22
IPD Management Governance System
Strong Team Based Management
Project Management I - 23
Metrics
Project Management I - 24
IPD's Observed Benefits
Improved Execution
Checklists by phase minimize surprises
Customization by business area
Structured, planned activities; less react to problems
Cross-functional perspective to all major activities
Improved communication and change management
Repeatability and Lessons Learned
Documentation for clarity and general accessibility
Project Management I - 25
Project Management @ IBM
Project Management I - 26
Project Management A Core Competence
Project Management I - 27
Project Management Organizations
Project Management I - 28
2. Getting Started
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Getting Started
What is a project?
What is project management?
Project life cycle and phases
The project environment
Sources of conflict in a project environment
Project management, complexity, and change
Project Management I - 30
Objectives
Project Management I - 31
What Is a Project?
Attributes of projects
unique purpose
temporary
require resources, often from various areas
should have a primary sponsor and/or customer
involve uncertainty
Project Management I - 32
The Triple Constraint
Project Management I - 33
Project Management The Magic Triangle
Scope
Effectiveness Productivity
Quality
Budget Time
Project Size
Project Management I - 34
What is Project Management?
Formal definition -
The process of bringing a project to fruition in as effective a manner
as possible
PMI definition -
"Project management is the application of knowledge, skills, tools,
and techniques to project activities to meet project requirements."
Project Management I - 35
Advantages of Project Management
Project Management I - 36
Project Stakeholders
Project Management I - 37
Project Management Tools and
Techniques
Project management tools and techniques assist
project managers and their teams in various
aspects of project management
Project Management I - 38
How Project Management Relates to
Other Disciplines
Much of the knowledge needed to manage
projects is unique to the discipline of project
management
Project mangers must also have knowledge and
experience in
general management
the application area of the project
Project Management I - 39
PM Knowledge Areas & Processes
Project
Management
Project Management I - 40
9 Project Management Knowledge
Areas
Knowledge areas describe the key competencies
that project managers must develop
4 core knowledge areas lead to specific project
objectives (scope, time, cost, and quality)
4 facilitating knowledge areas are the means through
which the project objectives are achieved (human
resources, communication, risk, and procurement
management)
1 knowledge area (project integration management)
affects and is affected by all of the other knowledge
areas
Project Management I - 41
Overview: 5 Process Groups and 44 Processes
Initiating (2) Planning (21) Executing (7) Monitoring & Controlling (12) Closing (2)
Project
Activity Scope
Proj. Charter Management Verification Close
Sequencing Monitor &
Plan Project
Activity Direct & Manage Control Project
Definition Project Execution Work
Scope
Preliminary Scope Activity Control
Scope Stmt Planning Duration
Activity Estimating
Resource Quality Schedule
Estimating Assurance Control
Scope
Definition
Cost Schedule
Estimating Acquire Cost Control
Development Project Team
Plan Select
Risk Plan Seller Manage
Purchases &
Identification Contracting Stakeholders
Acquisitions
Project Management I - 42
Project Life Cycle
Project Management I - 43
PMI Project Life Cycle
Project Management I - 44
Example: IBMs Integrated Product
Development Model
Project Management I - 45
The Project Environment
High-stress environment
Ambiguous roles and responsibilities
Multiple bosses and multiple projects
Strong competitive pressures
Project Management I - 46
Sources of Conflict in a Project Management
Environment
Project priorities
Administrative procedures
Technical opinions and performance tradeoffs
Staff resources
Expenses
Schedule
Personalities
Unclear measurement
Cross-project dependencies
Project Management I - 47
Project Management, Complexity & Change
Changing players
Budgetary instability
Changing technology
Changing competitive environment
People changing their minds
Changing macro economics forces
Project Management I - 48
Project Management Complexity
Project Management I - 49
Global Projects Increase Complexity
Number of interfaces
Time differences
Physical distance
Language issues
Cultural differences
Country-specific laws and regulations
Project Management I - 50
Key Messages
Project Management I - 51
3. Kicking Off the Project
52
Objectives
Project Management I - 53
Types of Organizations Used in Projects
Functional
Projectized
Project Management I - 54
Functional vs Project Work
Project Management I - 55
How to Organize
Project Management I - 56
Organizations in Development
Project Management I - 57
Types of Organizations Used in Projects
Matrix Organization
Project Management I - 58
Project Organization
Project Management I - 59
Project Types and Preferred Organizational
Structures
Project Management I - 60
Organizational Structure Influence on
Projects
Project Management I - 61
Projects in a Matrix Organization
Project Management I - 62
Making the Matrix Work
Project Management I - 63
Project Organization Survival Techniques
Project Management I - 64
Project Charter
Project Management I - 65
How Do You Build a Team?
Project Management I - 66
Considerations for a Multi-Cultural Team
Social customs
Time zone differences
Language
Protocol practices
Documentation practices
Project Management I - 67
Team Charter
Project Management I - 68
Code of Conduct
Project Management I - 69
Elements of a Useful Team Charter
Project Management I - 70
Key Messages
Project Management I - 71
Team Member Selection :
Meyers-Briggs Personality Types
72
Personality Types
Project Management I - 73
Attitudes of Orientation
Project Management I - 74
The Four Mental Functions
Project Management I - 75
Project Management I - 76
The Explorer - Explorer or entrepreneur type project leaders have a vision of the future and
projects are the stepping stones. They are bold, courageous and imaginative. There is a constant
search for opportunities and improvements. They are comfortable in the lead, and exude
confidence and charisma. They are good at networking and selling. They may, however, have
little time for day-to-day problems which are delegated to others. Their project power derives
from past experience, enthusiasm, and superior ability to communicate.
The Driver - Drivers are distinctly action-oriented and are both hard-working and hard driving.
They are pragmatic, realistic, resourceful and resolute, and their focus is on project mission and
precise project goals. They are generally well planned and self-disciplined, so for those who have
similar traits, they are easy to work with. Conflict is likely with those who are not so inclined.
Their power is derived from authority and they are quite prepared to use it.
The Coordinator - Coordinators are just as important when the project phase or situation calls
for "facilitation". They generally take a more independent and detached view of their
surroundings. Coordinators are responsive to the views of project team members who must take
responsibility for their own decisions. Therefore, their role is to ensure that team issues are
surfaced, discussed and resolved to the team's mutual satisfaction. These individuals tend to be
humble, sensitive and willing to compromise. The Coordinator's power is derived from his or her
ability to persuade others to compromise.
The Administrator - Administrators recognize the need for stability, typically in order to
optimize productivity through maximizing repetition to the extent possible on a project and to get
the work finished. Often, requisite information must be assembled and carefully analyzed, with
thought given to the trade-offs and how conflicts and problems can be resolved and disposed of
in advance. Work must be carefully scheduled and procedurized if potential gains are to be
realized and "all the pieces are to be carefully put in place". The Administrator's power derives
from intellectual logic and organizational achievement.
Project Management I - 77
Leadership Types
Project Management I - 78
More Detail Available
http://www.myersbriggs.org/
http://www.maxwideman.com/papers/profiles/intro.htm
Project Management I - 79
4. Project Selection
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Objectives
Project Management I - 81
Projects for Selection
Project Management I - 82
The Project Selection Process
Project Management I - 83
Portfolio Analysis in Project Selection
Project Management I - 84
Portfolio Management Logical View
Project Management I - 85
Selection Responsibility
Project selection
Is the responsibility of a group of senior
managers
Representing the various corporate functional
departments
Usually rests with a corporate steering
committee
Or the "Selection committee"
Who are responsible for ensuring that the corporate
vision and objectives are implemented
Project Management I - 86
Project Categories
1. A regulatory requirement
E.g. Sarbanes-Oxley, Basel II, EU Data Protection
2. A need to satisfy public safety concerns
3. An operational efficiency improvement
4. Environmental improvement or public relations
opportunity
5. New business, or economic opportunity
6. Morally the "Right thing to do"
Project Management I - 87
Selection Criteria - 1
Project Management I - 88
Selection Criteria - 2
Project Management I - 89
Next Steps
Project Management I - 90
Project Ranking
Compares benefit/cost by
Three types of contribution to corporate goals
Strategic improvement
Efficiency improvement
Operational continuity
Versus cost effort or size
Size may imply high risk for a small organization
Swamping of resources
Think about: Time, effort, complexity, money, resistance, resources, tradeoffs, disruption
Project Management I - 91
Ranking Categories
Strategic
Directly contributes to corporate goals
Adds new revenue sources, products or services
Establishes new positioning
Efficiency
Increases production
Reduces costs
Operational
Equipment servicing to maintain output
System upgrades
To match current technology
Project Management I - 92
Plotting Results
Strategic
Efficiency
High Low
Priority Priority
Operational
Effort
Small Large
Project Management I - 93
Ranking Secondary Factors
Risks
Schedule risk
Cost estimate accuracy risk
Technological risk
Opportunities
Public relations
Marketing
Learning and competence
Impact on organization
Consequence of not doing
Degree of urgency
Benefits
Broadness of application
Return on investment
Project Management I - 94
Non-Numeric Models
Sacred cow
Suggested by Executive
Operating necessity
Major loss without project
Competitive necessity
Address competitive pressures
Product line extensions
Fill gap, eliminate weakness, extend life of product line
Comparative benefit model
Selection based on comparison of multiple investment
opportunities
Just do it!
Easy!
Project Management I - 95
Numeric Selection Models
Portfolio Analysis
Opportunities
Future
Perceived
Why not
Profitability measures
Return on sales
Return on investments and return on assets (ROA)
Net present value (NPV)
Project Management I - 96
Life-Cycle Cost
Project Management I - 97
Profitability Measures
Project Management I - 98
Using Financial Measures to Select Projects
and Alternative Strategies
Present value = PV
Project Management I - 99
NPV Example
N
CashFlown
NPV =
n =0 (1 + q )n
Sales = 1,000,000
Material = 500,000
Labor = 200,000
Overhead = 100,000
Profit = 200,000
Taxes = 80,000
Net Profit = 120,000
Calculate ROA.
There's nothing fancy or complicated about how to make economic value added
(EVA) go up. It's a fundamental measure of return on capital, and there are just
three ways to increase it:
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Objectives
Developing a proposal
Beginning a project
Taking over a project already in process
(revalidating)
Reassessing the requirements of a project (mid-
project)
Is an overview document
Sets project bounds
Establishes what the project will do and will not
do
Begins to organize project into manageable form
Is not a project charter
Is not a team charter
137
Objectives
Size and number of WBS levels vary with project, but the WBS must
be complete to relate all elements to one another and to the total
product.
Cost account
One level above the work package where costs are
accrued - lowest management and control level
Work package
Lowest level of the WBS consisting of required tasks
to complete each product - used to budget and
schedule with a defined delivery date
150
Objectives
Protect
Cost
Schedule
Specifications
Gain competitive advantage by recognizing opportunities
before competitors do
Focus on building the right offering the first time
Prevent surprises
Prevent management by crisis
Prevent problems from occurring, or if they do, from
escalating
A definable event
Probability of occurrence
Consequences (impact) of occurrence
Situational
No textbook answer
Must rely on sound use of tools to deal with risk
Interdependent
One risk event can affect others
Quantity of risks may affect perceptions
Magnitude dependent
Risk acceptability is ambivalent: the greater the pay-
off, the more risk is acceptable
Break point makes any pay-off unacceptable
Value based
Personal values affect company risk taking
Company values affect individual choices
Time based
Risk is future phenomenon only
Time affects risk perception
Risks are reversible
Control (choice)
Information available
Inadequate
Unfamiliar
Unreliable
Unpredictable
Time
Documentation reviews
Information-gathering techniques
Brainstorming
Delphi technique
Interviewing
SWOT analysis (strength, weaknesses, opportunities,
and threats)
Checklists
Assumption analysis
Diagram techniques
Organizational risks
Cost, time, and scope objectives that are internally
inconsistent
Lack of prioritization of projects
Inadequacy or interruption of funding
Resource conflicts with other projects
External risks
Shifting legal or regulatory environments
Labor issues
Changing owner priorities
Customer requirements
Resource availability and skill mix
Schedule realism
Startup difficulties
Cascading delays
Inadequate planning
Time-to-market
Maturity of technology
Technical expertise
Developmental level of technology maturity
Size or complexity
Integration requirements
Maintenance concerns
Licenses, royalties
Patent rights
Lawsuits
Data rights
Copyrights
Manufacturing Risks
Insufficient manufacturing capability
New or changed manufacturing processes
Distribution Risks
Inaccurate or changing volume production data
Distributor unable to meet schedule
High
Likely to cause significant serious disruption to schedule, increase in
cost, or degradation of performance - even with special supplier
emphasis and close customer monitoring
Medium
Has potential to cause some disruption of schedule, increase in cost,
or degradation of performance - special supplier emphasis and close
customer monitoring, however, will probably overcome difficulties
Low
Has little potential to cause disruption of schedule, increase in cost,
or degradation of performance - normal supplier effort and normal
customer monitoring will probably overcome difficulties
Probability of
Level Likelihood
Occurrence
C Likely ~ 50%
High
D
C
Medium
B
A Low
1 2 3 4 5
Impact / Consequence
Interviewing
Optimistic
Pessimistic
Most likely
Sensitivity analysis
Decision tree analysis
Simulation
Project simulation using Monte Carlo technique
Cost risk analysis based on WBS as its model
Schedule risk analysis using PDM (Preference Diagramming
Method)
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