Introduction Project Management

Projects A unique process, consisting of a set of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements including constraints of time, cost and resources. unique specific objectives (the project product) constraints (especially: limited time frame)

Notes Projects may form parts of a larger project Project objectives and scope are updated and defined progressively as the project proceeds. Project product: it is defined in the project scope. One or more units, tangible or intangible. The project’s organisation is normally temporary. Complexity and interactions among project activities.

Projects are connected to change management Usual business of the firm Projects Routines & regular tasks Changes (uncertainty)

Common project elements Product specification Project plan Time frame Budget Cost plan Statemet of quality required Identification of areas of uncertainty Risk management: evaluation & responses

Collecting information Real time Facilities needed to analyse the collected data

The project triangle + customer focus

Project management Project management is the discipline of planning, organizing, and managing resources to bring about the successful completion of specific project goals and objectives. It is possible (and sometimes very efficient) to manage non-project processes as projects.

The project cycle 4 phases: Conception (= definition) Development (= planning) Realisation (= implementation) Termination (= closing)

Conception phase Idea of a new project Internal External Desirability (Does it fit the strategy and the mission?) Feasibility (costs, resources, schedule) Documentation: project Statement of Work End of phase: formal authorization

Conception phase: Feasibility evalutaion Capability to deliver the project product in time Final price of the product Project budget Specification of the product Ability to support the capital outlay Availability of the items and services needed Acceptability of geographical and ecological Acceptability of any further contract conditions

Development phase Appointment of the project manager and the project management team. From now on the project manager is in control. The first step of planning is the Project Management Plan (PMP). It contains all plans for the project, but it is continuously changing. Then a broad brush plan is needed, and the detailed plan for the first part of the project.

Realisation phase Turning the plans into reality (implementation). The project development (incremental planning and revision) and an appropriate reporting (monitoring) system are running simultaneously with the implementation process. A project log is needed

The project termination Closing the project and its activities. Knowledge management tasks: Success of methods used Project team performance Reliability of suppliers Disposing the residual capital and equipment.

Project management maturity Project management development is an evolutionary process: every firm goes through nearly the same, step-by-step development process in their use of PM techniques. Different organizations are on different levels of sophistication in their best practices for managing projects.

PMP (Project Management Professional) sample questions (Pinto 2010)

PMP sample questions (Pinto 2010)

Discussion questions

Simplified case study There is a family owned manufacturing company that produces spare parts for motorcycles in great volumes and built customized motorcycles in a small number per year, too, only for order. Some of the produced spare parts are manufactured in nearly the same form for years and no significant change is estimated in the future. However, there are some goods, that are demanded only for shorter periods. In these cases the firm configures the manufacturing equipment, creates the wanted volume and disassemble the machinery after the market demand (and so the profitability) drops below a given level. The ‚customized bike’ building is organized in a form of job shops, because these are built one by one. The company has now the organizational design of a typical small enterprise with only one managerial unit for every function and problem. Because of the increasing production volumes (and revenues) they need to change the structure sooner or later. The plan is to separate the sparepart-making activities from the customized bike building via creating two divisions with autonomous divisional heads. It is a great reorganization with many possible difficulties, that is why the owners hesitate when to start it. Are there a (reasonal) place for projects and project management in this company?

Case studies http://oktato.econ.unideb.hu/kunandras/ Project management (bachelor) Cases_1.1_1.2.doc

Thanks for the attention!