PROJECT MANAGEMENT Dr. Meryem Uluskan

Agenda What is Project Project vs. Program Major Characteristics of a Project What is Project Management Project Life Cycle The Project Manager Driving Forces Behind the Demand for Project Management Integrative Approach to Project Management PDSA Cycle Example Project

Introduction Project management provides people with a powerful set of tools that improves their ability to plan, implement, manage activities to accomplish specific organizational objectives. Project management is more than just a set of tools; it is a results-oriented management style builds collaborative relationships among different characters Exciting opportunities await people who are skilled in project management.

Introduction Now project management has spread to all avenues of work. project teams carry out everything from port expansions to hospital restructuring to upgrading information systems. They create next generation, fuel efficient vehicles, developing sustainable sources of energy. The impact of project management is most profound in the electronics industry

Project Defined A complex, nonroutine, one-time effort limited by time, budget, resources, and performance specifications designed to meet customer needs. Building a football stadium Administrating a large research contract Performing a major transplant surgery Establishing a production line

Project The Project Management Institute provides the following definition of a project: A project is a temporary endeavor undertaken to create a unique product, service, or result. The major characteristics of a project are as follows: An established objective. A defined life span with a beginning and an end. Usually, the involvement of several departments and professionals. Typically, doing something that has never been done before Specific time, cost, and performance requirements.

The major characteristics of a project Projects have an established objective in daily organizational life workers perform repetitive operations each day. Projects have a defined life span with a beginning and an end which is contrary to the ongoing duties and responsibilities of traditional jobs. Projects require across-the-organizational participation combined efforts of a variety of specialists. project participants, such as engineers, financial analysts, marketing professionals, or quality control specialists, work closely together under the guidance of a project manager to complete a project.

The major characteristics of a project Projects are nonroutine have some unique elements. requires solving previously unsolved problems and breakthrough technology something that has never been done before even basic projects that have established routines and procedures require some degree of customization that makes them unique. Specific time, cost, and performance requirements bind projects Projects are evaluated according to accomplishment, cost, and time spent. These highlight one of the primary functions of project management, which is balancing the trade-offs between time, cost, and performance

What is Project Management? A project ends A project changes a process A project is unique A project is constrained The constraints are interrelated

What a Project Is Not Projects should not be confused with everyday work A project is not routine, repetitive work! Ordinary daily work typically requires doing the same or similar work over and over, while a project is done only once. a process continues over time doing the same things. A new product or service exists when the project is completed

What a Project Is Not

What a Project Is Not

Program versus Project A program is a group of related projects designed to accomplish a common goal over an extended period of time. Program management is the process of managing a group of ongoing, interdependent, related projects in a coordinated way to achieve strategic objectives. Although each project retains its own goals and scope, the project manager and team are also motivated by the higher program goal.

Program versus Project It has been said that a Program is a group of related projects designed to accomplish a common goal over an extended period of time. The major differences lie in scale and time span –Example: •Project: completion of a required course in project management. •Program: completion of all courses required for a business major.

The Project Life Cycle The life cycle states that projects have a limited life span there are predictable changes in level of effort and focus over the life of the project. There are a number of different life-cycle models Many are unique to a specific industry or type of project.

The Project Life Cycle

The Project Life Cycle Defining stage: Planning stage: specifications of the project are defined; project objectives are established; teams are formed; major responsibilities are assigned. Planning stage: the level of effort increases, plans are developed to determine what the project will involve, when it will be scheduled, whom it will benefit, what quality level should be maintained, what the budget will be.

The Project Life Cycle Executing stage: A major portion of the project work takes place - both physical and mental. The physical product is produced Time, cost, and specification measures are used for control. Is the project on schedule, on budget, and meeting specifications? What are the forecasts of each of these measures? What revisions/changes are necessary?

The Project Life Cycle Closing stage: includes three activities: delivering the project product to the customer include customer training and transferring documents redeploying project resources involves releasing project equipment/materials to other projects and finding new assignments for team members post-project review assessing performance capturing lessons learned

The Project Manager perform the same functions as other managers plan, schedule, motivate, and control unique temporary nonrepetitive activities complete a fixed life project create a project team and organization where none existed before decide what and how things should be done meet the challenges of each phase of the project life cycle

The Project Manager The Project Manager - Manages temporary, non-repetitive activities Gather 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. –Makes decision while playing many roles, –Balances customer and company needs,

The Project Manager Project managers provide direction, coordination, and integration to the project team, which is often made up of part-time participants loyal to their functional departments. are ultimately responsible for performance must ensure that appropriate trade-offs are made between the time, cost, and performance requirements of the project. they must orchestrate the completion of the project by inducing the right people, at the right time, to address the right issues and make the right decisions

The Project Manager A project manager makes decisions while playing many roles. technician, supervisor, leader, coach, problem solver, salesperson, politician, conflict resolver, negotiator, and communicator. A project manager balances client and company needs.

A Good Project Manager use the planning information for writing a responsive proposal; adjust the plan to match the contract; carefully incorporate the data representing actual activity; monitor and track the variance between the actual activity and the planned activity; adjust resources, schedule, and scope as a result of recognizing the variance; verify that the project was done well; and validate that the project does indeed meet the need and expectations of the client. GET THE JOBS DONE !!!

A project manager must plan the project and figure out what he or she intends to do to bring the project in on schedule, within cost, and meet the needs of the client. must execute the project using the plan as a guide. A good plan comes from good estimating. must verify how well the execution met the plan. Verification is accomplished through managing the variance between actual (execution) and plan.

Project management is not a title but a critical job requirement. It is hard to think of a profession or a career path that would not benefit from being good at managing projects.

The Importance of Project Management Factors leading to the increased use of project management: –Compression of the product life cycle –Knowledge explosion –Triple bottom line (planet, people, profit) –Corporate downsizing –Increased customer focus –Small projects represent big problems –PM tools make a difficult job easier –Keeps a project on a defined path

The Importance of Project Management An increasing percentage of the typical firm’s effort is being devoted to projects. Driving forces behind the demand for project management: Compression of the Product Life Cycle shortening of the product life cycle in high-tech industries the product life cycle is averaging 1 to 3 years Time-to-market for new products with short life cycles has become increasingly important Speed is a competitive advantage

The Importance of Project Management Knowledge Explosion The growth in new knowledge has increased the complexity of projects because projects encompass the latest advances. Today, each area has increased in complexity, including materials, specifications, codes, aesthetics, equipment, and required specialists. Product complexity has increased the need to integrate divergent technologies.

The Importance of Project Management Triple Bottom Line (planet, people, profit) The threat of global warming, pollution etc. Sustainable business practices are crucial Efforts to reduce pollution and utilize renewable resources are realized through effective project management. “Green” changes in the objectives and techniques used to complete projects.

The Importance of Project Management Corporate Downsizing Downsizing and focusing on core competencies have become necessary for survival for many firms. project management is replacing middle management in today’s flatter and leaner organizations Corporate downsizing led to a change in the way organizations approach projects. Companies outsource significant segments of project work, and project managers have to manage not only their own people but also their counterparts in different organizations.

The Importance of Project Management Increased Customer Focus Customers no longer look for generic products and services. They want customized products and services. Sales representatives are assuming more of a project manager’s role as they work with their organization to satisfy the unique needs and requests of customers. Development of customized products and services is a requirement Project management is critical both to development of customized products and services and to sustain profitable relationships with customers.

The Importance of Project Management Small Projects Represent Big Problems The velocity of change required to remain competitive, so many projects are implemented concurrently In this multi-project environment sharing and prioritizing resources is a major challenge for senior management Problems involved with inefficient management of small projects Small projects typically carry the same or more risk as do large projects. Small projects are perceived as having little impact because they do not demand large amounts of resources and/or money. the perception of the inefficiency impact is small many small projects add up to large sums of money Small projects can represent hidden costs

Small projects typically carry the same or more risk as do large projects.

The Importance of Project Management Organizations with many small projects going on concurrently face the most difficult project management problems. A key question becomes one of how to create an organizational environment that supports multiproject management. A process is needed to prioritize and develop a portfolio of small projects that supports the mission of the organization. Project management appears to be suited for a business environment requiring flexibility, innovation, speed, and continuous improvement.

Project Management Today—An Integrative Approach Dell, IBM, Hewlett-Packard, and Intel all have over 1,000 projects being implemented concurrently every day of the year across borders and differing cultures How do these organizations oversee the management of all these projects? How were these projects selected? How do they ensure performance measurement? How can project management continually improve?

Project Management Today—An Integrative Approach Integration is designed to improve project management in the whole organization over the long run. integration of project management provides senior management with An overview of all project management activities A big picture of how resources are being used An assessment of the project risks A rough metric for measuring the improvement of project management relative to others in the industry Linkage of senior management with actual project execution management

What does project management integration mean? It necessitates combining all of the major dimensions of project management under one umbrella. Each dimension is connected in one seamless, integrated domain. Integration means applying a set of knowledge, skills, tools, and techniques to a collection of projects in order to move the organization toward its strategic goals

Integration of Projects with Organizational Strategy Selection and management of projects often fail to support the strategic plan of the organization Strategic plans are set by one group of managers, projects selected by another group, and projects implemented by another. These independent decisions by different groups of managers create a set of conditions leading to conflict, confusion, and frequently an unsatisfied customer. Under these conditions, resources of the organization are wasted in non-value-added activities/projects.

Integrated Management of Projects

Integration of Projects with Organizational Strategy strategic alignment of projects is important for effective use of organization resources Selection criteria need to ensure each project is prioritized and contributes to strategic goals. Project selection process should be systematic, open, consistent, balanced. projects selected become part of a project portfolio that balances the total risk Management of the project portfolio ensures that only the most valuable projects are approved and managed across the entire organization.

Integration of Projects through Portfolio Management Project portfolios are frequently managed by a project office that serves as a bridge between senior management and project managers and teams. Portfolio management manages the integration of elements of organizational strategy with projects, along with their interdependencies.

Integration of Projects through Portfolio Management The major functions of portfolio management are to Oversee project selection. Monitor aggregate resource levels and skills. Encourage use of best practices. Balance projects in the portfolio in order to represent a risk level appropriate to the organization. Improve communication among all stakeholders. Create a total organization perspective that goes beyond non-integrated thinking. Improve the overall management of projects over time.

Integration of the Processes of Implementing Actual Projects There are two dimensions within the actual execution of projects Technical and Sociocultural Dimensions Technical dimension consists of the formal, disciplined, purely logical parts of the process. includes planning, scheduling, and controlling projects. project scope statements, work breakdown structures etc.

Integration of the Processes of Implementing Actual Projects Sociocultural dimension centers on creating a temporary social system within a larger organizational environment that combines the talents of a divergent set of professionals working to complete the project. Project managers must shape: a project culture that stimulates teamwork high levels of personal motivation a capacity to quickly identify and resolve problems that threaten project work. Also involves managing the interface between the project and external environment. Project managers have to assure and shape expectations of customers, sustain the political support of top management, negotiate with their functional counterparts, monitor subcontractors, and so on. Overall, the manager must build a cooperative social network among a divergent set of parties with different standards, commitments, and perspectives.

Integration of the Processes of Implementing Actual Projects technical dimension represents the “science” of project management the sociocultural dimension represents the “art” of managing a project. Good project managers balance their attention to both the technical and sociocultural aspects of project management.

The PDSA Cycle PLAN, the project manager figures out what he or she intends to do. DO, the project manager does what was intended to the best of his or her ability. STUDY, the project manager compares execution against plan (actuals against plan) to determine how well he or she did what was intended. ACT, the project manager uses what he / she learned while studying so he / she can improve the planning and doing for future projects. The PDSA Cycle is crucial for the project manager’s professional development

What is Project Management? Brief Overview A project has an established objective A project ends A project changes a process A project is unique A project is constrained The constraints are interrelated

What is Project Management? A project manager makes decisions while playing many roles. technician, supervisor, leader, coach, problem solver, salesperson, politician, conflict resolver, negotiator, and communicator. A project manager balances client and company needs. Project management tools make a difficult job easier.

What is Project Management? Tools address constraints Project management keeps a project on a defined path.

Constraints

Relationships

Example Project

Example Project As you work through each of the process steps and the associated tools, we’ll apply the steps and tools to an example project. We’ll consider a project for managing the construction of a house. Here’s the story of the example project.

Example Project Your sister, Mary, is seven years older than you. Not only have you always wanted to please her, but she has always been a bit of a perfectionist. Over dinner, Mary has asked you to be the general contractor of the house of her dreams. She has been dreaming of her house for many years and believes she knows exactly what she wants and what will meet her needs for many years to come.

Example Project Mary has asked you to be the project manager for her house because of your experience as a civil engineer. As general contractor/project manager, you’ll need to meet her needs and expectations, select the housing site, select the layout or the design for the house, work through all permits and site development, identify and manage a range of subcontractors, schedule and integrate the efforts of all construction workers, inspect all progress to ensure the building inspectors will be satisfied. You won’t participate in the construction of the house. You’ll hire people and contract subcontractors to do that.

Example Project You’ve met with Mary to capture what she wants. Here’s what you understand at the moment: She wants to be out of her present house in eight months. She wants a view, but wants to be as close as possible to the city of one million people. She likes large rooms, likes to entertain, and have family from around the country visit. She has three children aged 17 (a girl), 13 (a boy), and 8 (a girl). She’s a gourmet cook and likes to serve large dinners. Her husband, Harry, loves to garden and is big on cook- outs. Finally, she has a budget of $500,000.

Example Project While you’re eager to take on this project, you’ll have to schedule your time carefully. You have a demanding day job; but you’re free on the weekends and most evenings. You travel about 1-2 nights a month. In applying the project management tools to this example, you’ll go by the name of Taylor. Therefore, Mary is the client and Taylor is the project manager.

Constraints