Chapter One: Modern Project Management

To determine what is a project. To understand the evolution of project management. To understand the importance of project management.

– 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.

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What is NOT -- 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 What is -- 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

Knowledge explosion Increased Customer Focus Growing demand for flexibility Remain competitive Downsizing Global competition

It is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. Involves balancing competing demand: – Time, Cost, & Performance (quality) – Stakeholders – Requirements

6/17/ S pectific M easurable A ttainable R ealistic T angible E nergy R ecord

Cust. Needs Relationships Comp. Analysis Target Values Relationships Critical Chara. Processe s Process Parameters Processes Processes & Quality Controls SERVICE PLANNING PROCESS PLANNING PROCESS/QUALITY CONTROL Critical Characteristics  Define & prioritize Customer needs  Analyze Competitive opportunities  Plan a SERVICE to respond  Establish Critical Characteristics & Values  Determine Critical Processes & flow  Develop Resource requirements  Establish Critical process parameters  Determine Critical process characteristics  Establish process control methods & parameters  Establish monitoring methods

What Questions The Pareto Chart Answers 1.What are the largest issues facing our team or business? 2.What 20% of sources are causing 80% of the problems (80/20 Rule)?80/20 Rule 3.Where should we focus our efforts to achieve the greatest improvements? Identify Problems

Use if you want to determine which category of item, you focus your efforts on. Study current conditions – problem identification

Benefits – Help identify the root cause of a problem – Determine relationship between different root causes of a problem – One of the simplest tools; easy to complete without statistical analysis

Root Cause Contrib. Cause Contrib. Cause Direct Cause Event Contrib. Cause

One way to capture these different ideas and stimulate the team's brainstorming on root causes – helps to visually display the many potential causes for a specific problem or effect. – It is particularly useful in a group setting and for situations in which little quantitative data is available for analysis. Another benefit – We like to get right to determining what to do about a problem, this can help bring out a more thorough exploration of the issues behind the problem - which will lead to a more robust solution.

Infers causes

Methodology for monitoring a process which can identify special causes of variation and take corrective action when appropriate. Standardize improvements