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PROJECT

MANAGEMENT
By Francois L. Detera, MM DBA Student ADNU Graduate School

Objectives:
Understand the difference between a project and project management Develop a working knowledge of how to properly scope a project for success Gain knowledge on standards of enterprise project management.

Introduction
What is Project and Project Management Project Differentiated from Project Management The Project Life Cycle Project Parameter

What is Project?
A project is a sequence of unique, complex, and connected activities having one goal or purpose and that must be completed by a specific time, within budget, and according to specifications.

What is Project Management Project management focuses on a project-an undertaking that has a beginning and an end, and is carried out to meet established goals within cost.

Project Management Defined


Project management is a set of principles and tools for Defining Planning Executing Controlling . . . and Completing a PROJECT

Project Management Criteria


Projects are oriented towards a goal. There is something unique about every project. Projects have a finite duration. Projects require coordination interrelated activities.
of

How did Project Management Develop? Early 1960s in U.S. Space Program. (Government and Industry) Sun Tzus the Art of War (Military)

Why is Project Management Important?


Organize your approach Generate a credible schedule Track progress and control your project Identify where to focus your efforts Identify problems early before they are crises Saves you TIME.MONEY If you fail to plan, PLAN TO FAIL

Projects Three Basic Parameters


Specified level of QUALITY + On or before the deadline (TIME) + And within budget (COST) = SUCCESSFULLY MANAGED PROJECT

The Origin of Projects


Projects grow out of problems or opportunities. A project is born when someone reacts to the level of frustration surrounding a problem or someone sees an opportunity to move into a new venture.

Project Life Cycle


Scoping or Conceiving and Defining the Project Planning the Project/Developing the Project Plan Launching/Implementing the Plan Concluding/Completing and Evaluating the Project

Five Phases of Project Management


Adapted from Weiss, J.W., and Wysocki, R.K. 1992. 5-Phase Project Management: A Practical Planning and Implementation Guide. Reading, MA: Addison Wesley.

Definingthe Scoping the Project Project Developing the Plan Implementing the Plan Closing Out the Project/Evaluating Monitoring & Controlling

Scoping the Project


State the Problem /Opportunity Establish the Project Goal Define the Project Objectives List Assumptions, Risks, Obstacles Identify the Success Criteria

Testing Your Preliminary Strategy


Market Study Pilot Test Computer Simulation Using the Study Results

Basic Actions in Planning:


1. Being aware of Opportunity 2. Establishing Objectives 3. Premising 4. Determining Alternative Course

5. Evaluating Alternative Course 6. Selecting a Course 7. Formulating Derivative Plans-CONTROL 8. Numberizing Plans by Budgeting

Scoping Document Example


A short, crisply phrased piece of information covering -- what is to be done -- why it is to be done -- value it provides if it is done

Do not use technical language!

Scoping Document Example


Problem/opportunity Project name, sponsor, manager Singular Project Goal Objectives that are Specific, Measurable, Assignable, Realistic, Time based (SMART) Success criteria Assumptions, risks, obstacles

Scope the Project: Problem/Opportunity


A statement of fact that everyone in the organization will accept as true Should communicate why the project should be accomplished

Define the Project - GOAL


A project has one primary goal: to give purpose and direction
Defines the final deliverable and outcome States in clear terms what is to be accomplished Is a reference point for questions about scope and purpose of the project

Scope the Project Objectives & Success Criteria


SMART Objectives
Specific Measurable Assignable Realistic Time-related

Success Criteria
Clearly states the bottom-line impact Quantifies outcomes so success can be measured

Scope the Project: Risks/Assumptions


Identify factors that might affect the outcome or completion of the project Used to alert management to factors that may interfere with project work Types of assumptions and risks Technological Environmental Interpersonal Cultural Political

Project Scoping Form


Project Name Project Manager Team Members
Problem / Opportunity (Why do this project?): Project Goal: Objectives (Specific, Measurable, Assignable), Duration? Cost? Success Criteria (Outcomes): Assumptions, Risks, Obstacles:

2. Planning the Project


Planning the Three Project Parameters Planning the Quality Dimensions
Planning the Time Dimension/Scheduling Planning the Cost Dimension/Budgeting

Assigning Responsibility

Project Planning Defined


PLANNING in organizations and public policy is both the organizational process of creating and maintaining a plan; and the psychological process of thinking about the activities required to create a desired future on some scale. PROJECT PLANNING is part of project management, which relates to the use of schedules such as Gantt charts to plan and subsequently report progress within the project environment.

Essentials of Planning:
Planning and control are especially inseparable-the Siamese twins of Management. Unplanned action cannot be controlled, for control involves keeping activities on course by correcting deviations from plans.

To offset uncertainty and change To focus attention on objectives To gain economical operation To facilitate control

2. PLANNING THE PROJECT


Planning the Time Dimension
The duration of each step The earliest time at which a step may be started The latest time by which a step may be started

Scoping the Project Project Developing the Plan Launching the Plan Closing Out the Project Monitoring & Controlling

Adapted from Weiss, J.W., and Wysocki, R.K. 1992. 5-Phase Project Management: A Practical Planning and Implementation Guide. Reading, MA: Addison Wesley.

Five Phases of Project Management

Identify Project Tasks (WBS)

Estimate Task Duration

Determine Resource Requirements Prepare the Project Proposal

Construct/Analyze Project Network

Developing The Plan

Planning the Project: Work Breakdown Structure (WBS)


A WBS is the functional decomposition of a system Breaks the project into chunks of work at a level of detail that meets planning and scheduling needs

WBS Completeness
Status/completion are measurable Clearly defined start/end events Activity has a deliverable Time/cost easily estimated Activity duration within acceptable limits Work assignments are independent

Responsibility Matrix
Creates accountability by assigning each task to a person Task Joe Mary Renee Activity 1 x Activity 2 Activity 3 x x

Tools in Project Planning


1. GANTT CHART 2. PERT Diagram (Program Evaluation and Review Technique) 1. Events are represented by circles 2. Activities are represented by arrows connecting the events 3. Non-activities connecting two events are shown as dotted line arrows.

PERT DIAGRAM
EVENT
ACTIVITY EVENT

PRECEDING ACTIVITYSTART EVENT

FOLLOWINGACTIVITY/ FINISH EVENT

Planning the Cost Dimension


Typical Cost Components:
1.LABOR wages paid 2.OVERHEAD cost of payroll taxes and fringe benefits 3.MATERIALS item/s purchased 4.SUPPLIES cost of tools, office supplies, etc. 5.EQUIPMENT RENTAL equipment necessary for the project 6.GENERAL AND ADMINISTRATIVE cost of management and support services 7. PROFIT (If Applicable) reward given for successfully completing the project

Potential Budget Problems


1. The impact of inflation on long term projects 2. The impact of currency exchange rates on international projects 3. Failure to obtain firm price commitments from suppliers and subcontractors 4. Poorly prepared work breakdowns structures that lead to incomplete budgets 5. Fudge factors built into internal support group estimates 6. Estimates based on different methods of cost analysis

3. Implementing the Plan


What Happens in the implementing stage? Controlling Work in Progress Providing Feedback Negotiating for Materials, Supplies and Services Ten Guidelines for Effective Negotiation Resolving Differences

What Happens in the implementing stage?


Key Duties during implementation:
1. Controlling work in progress 2. Providing Feedback 3. Negotiating for materials, suppliers and services 4. Resolving differences

Controlling Work in Progress


1. ESTABLISHING STANDARDS: a. Control Point Identification Charts b. Project Control Charts c. Milestone Charts d. Budget Control Charts

Controlling Work in Progress


2. MONITORING PERFORMANCE a. Inspection b. Interim Progress Review c. Testing d. Auditing 3. TAKING CORRECTIVE ACTION

10 Guidelines for Effective Negotiation


1. Prepare 2. Minimize perceptual differences 3. Listen 4. Take Notes 5. Be Creative 6. Help the other party 7. Make good trade-offs (avoid giving something for nothing) 8. Be quick to apologize 9. Avoid ultimatums 10. Set realistic deadlines

Resolving Differences
DEMANDING PROBLEM SOLVING BARGAINING GIVING IN

Providing Feedback
INTENTIONS ACTIONS RESULTS

FEEDBACK

Negotiating for Materials, Supplies and Services


Negotiation takes up as much as 20% of managers time- a discussion between two parties with a goal of reaching agreement on issues that separate them when neither party has the power/ Desire to use its power to force an action.

Completing the Project

BRINGING THE PROJECT TO A SUCCESSFUL COMPLETION

INDICATORS: (Client Acceptance)


1. The client agrees that the quality specifications of the project parameters were met. 2. The criteria (pre-determined) for judging performance were all met. 3. Documentation requirements were provided. 4. An evaluation review was conducted.

Project Management Softwares


PDCA-Cycle PRINCE 2 ADPM Project Memory Jogger

PlanDoCheckAct Cycle
Also called: PDCA, plandostudyact (PDSA) cycle, Deming cycle, Shewhart cycle Description The plandocheckact cycle (Figure 1) is a four-step model for carrying out change. Just as a circle has no end, the PDCA cycle should be repeated again and again for continuous improvement.

Plan-Do-Check-Act Procedure
Plan. Recognize an opportunity and plan a change. Do. Test the change. Carry out a small-scale study. Study/Act. Review the test, analyze the results and identify what youve learned. Act.
Take action based on what you learned in the study step: If the change did not work, go through the cycle again with a different plan. If you were successful, incorporate what you learned from the test into wider changes. Use what you learned to plan new improvements, beginning the cycle again.

PRINCE2 (Projects in Controlled Environments) was first developed in 1989 as a standard for IT project management by the UK government. PRINCE2 is a process-based approach for project planning, providing an easily tailored and scalable project planning methodology for the management of all types of projects. The method is the de-facto standard for project management in the UK and is practiced worldwide.

PRINCE2

(an increasingly widespread UK government standard which stands for "PRojects IN Controlled Environments").

PRINCE2 is powerful that during the

planning, it completely clarifies people's roles in projects, ensures that lines of communication are clear, makes sure that project risk is actively managed, sets up appropriate controls, establishes baseline costs, schedule and scope, and so on. In this, it embodies and codifies much of project management best practice.

AdPM METHOD
Project managers are typically taskoriented people with a strong sense of urgency and a keen focus on getting started and finishing. Not too surprisingly, the inclination of most PMs is to skip strategic project planning and start work. In AdPM Methodology, PMs were taught of planning techniques that unearth measurable business outcomes. We use those outcomes to build an achievement network that makes all our deliverables crystal clear.

The Project Memory Jogger

Joke Break: Types of Project Managers If you get in my way, I'll kill you! -- "ideal" project manager If you get in my way, you'll kill me! -- somewhat less than ideal project manager If I get in my way, I'll kill you! -- somewhat misguided project manager If I get in your way, I'll kill you! -- tough project manager (eats glass, cats, etc.) If get kill in will way I you. -- dyslexic, functionally illiterate project manager I am the way! Kill me if you can! -- messianic project mgr Get away, I'll kill us all! -- suicidal project manager

If you kill me, I'll get in your way. -- thoughtful but ineffective project manager If I kill you I'll get in your way. -- project manager who has trouble dealing with the obvious If you kill me, so what? If you get in my way, who cares? -weak, uninspired, lackluster project manager If I kill me, you'll get your way. -- pragmatic project manager If we get in each others' way, who will get killed? An utterly confused manager Kill me, it's the only way. -- every project manager to date. Source unknown

Rule for ultimate Success in life: Never tell everything you know.

Standards for Enterprise Project Management


Introduction Project Authorization and Initiation Project Analysis and Planning Project Closure

THANK YOU