Definition of Project “An organized endeavor aimed at accomplishing a specific non-routine or low-volume task.” Definition of Project Management “The systematic integration of technical, human, and financial resources to achieve goals and objectives.” Badiru

Production Systems Mass Production Batch Production Specific processes, high demand Special-purpose, high-efficiency equipment Batch Production Multiple processes General-purpose, flexible equipment (FMS) Complexity in operations planning, scheduling & control Non-repetitive Projects

Production Systems Mass Production Batch Size Batch Systems Projects Volume

Important Factors in Project Mgmt Technology Specifications Performance Quality Time Due dates Milestones Cost Total investment Required cash flow Profits Resource Utilization Market Acceptance

Major Processes in Project Mgmt

Relative importance of goals

Risk & Uncertainty in Proj. Mgmt. Uncertainty in Scheduling Uncertainty in Cost Uncertainty in Technology Other Uncertainties: Organizational Political

Risk & Uncertainty in Proj. Mgmt. Parkinson’s Law Work expands to fill the available time or space. Peter’s Law People rise to the level of their incompetence. Murphy’s Law Whatever can go wrong will.

Laws of Project Management 1. No major project is ever installed on time, within budget, or with the same staff that started it. Yours will not be the first. 2. Projects progress quickly until they become 90% complete, then they remain at 90% complete forever. 3. One advantage of fuzzy project objectives is that they let you avoid the embarrassment of estimating the corresponding costs.

Laws of Project Management 4. When things are going well, something will go wrong. When things just cannot get any worse, they will. When things appear to be going better, you have overlooked something. 5. If project content is allowed to change freely, the rate of change will exceed the rate of progress.

Laws of Project Management 6. No system is ever completely debugged. Attempts to debug a system inevitably introduce new bugs that are even harder to find. 7. A carelessly planned project will take three times longer to complete than expected; a carefully planned project will take only twice as long. 8. Project teams detest progress reporting because it vividly manifests their lack of progress.

Phases of Project 1. Conceptual design 2. Advanced development (or Preliminary system design) 3. Detailed design 4. Production 5. Termination

Project Life Cycle Project Cost $ Money committed Money spent Conceptual design Advanced development Detailed design Production Termination

Work Breakdown Structure (WBS) A document that divides the project into major hardware, software, data, and service elements. These elements are further divided and a list is produced identifying all tasks that must be accomplished to complete the project. WBS helps define the work to be performed and provides a framework for planning, budgeting, monitoring, and control.

Organizations of Project Mgmt 1. Functional organization 2. Project coordinator 3. Matrix organization 4. Project team 5. Projectized organization

Basic Functions of Project Manager Scheduling, budgeting, resource allocation, resource management, human relations, negotiation. (Project Management Institute) 1. Manage project’s scope 2. Manage human resources 3. Manage communications 4. Manage time 5. Manage quality 6. Manage costs

Important Skills of Project Manager Technical skills (scope of project) Leadership skills (goals, performance measures) Scheduling & Time management skills Budgeting & cost skills Resource mgmt, human relationship skills Communication skills Negotiating skills Marketing, contracting, customer relationship skills

Major Interactions of Project Participants Top management Consultants Government agencies Functional managers Client Project manager Project team Subcontractors Other organizations

Major Components of a Project 1 Major Components of a Project 1. Project initiation, selection, & definition Identification of needs (QFD, market research) Development of technological alternatives Evaluation of alternatives Selection of the “most promising” alternatives Estimation of life-cycle cost Assessment of risk Development of configuration baseline “Selling” the configuration

Major Components of a Project 2. Project organization Selection of participating organizations Structuring work content into WBS Development of project organizational breakdown structure (OBS) and associated communication and reporting facilities Allocation of WBS elements to participating organizations

Major Components of a Project 3. Analysis of activities Definition of the project’s major tasks Development of a list activities Development of precedence relations Development of a network model Development of high-level network elements Development of milestones Updating of network and its elements

Major Components of a Project 4. Project scheduling Definition of a calendar Estimation of activity durations Estimation of activity performance dates Monitoring actual progress and milestones Updating the schedule

Major Components of a Project 5. Resource management Definition of resource requirements Acquisition of resources Allocation of resources Monitoring actual resource use and cost

Major Components of a Project 6. Technological management Development of a configuration management plan Identification of technological risks Configuration control Risk management and control Total quality management

Major Components of a Project 7. Project budgeting Estimation of direct and indirect costs Development of a cash flow forecast Development of a budget Monitoring actual cost

Major Components of a Project 8. Project execution and control Development of data collection systems Development of data analysis systems Execution of activities Data collection & analysis Detection of deviation in cost, configuration, schedule, and quality Development of corrective plans Implementation of corrective plans Forecasting of project cost and completion date

Major Components of a Project 9. Project termination Evaluation of project success Recommendation for improvements in project management practices Analysis and storage of information on actual cost, actual duration, actual performance, and configuration

Project Life Cycle Resources & effort Conceptual Design Goals Scope Baseline Requirements Feasibility Desirability Advanced Development Plan Budget Schedule Bid proposal Management commitment Detailed Design Responsibility Team OBS Detailed plan Kickoff Production Manage Measure Control Update Replan Problem solving Termination Closeout Document Suggestions Transit Reassign Dissolve team

Strategic & Tactical Issues 1. Conceptual design phase Selection of projects Expected cost, profitability, risk Technological aspects: Availability, maturity Environmental factors

Strategic & Tactical Issues 2. Advanced development phase Organizational structure Lines of communication and procedure Environmental factors

Strategic & Tactical Issues 3. Detailed design phase Product and process design Final performance requirements Detailed WBS Scheduling Cost and resource management Detailed contingency plan Budgets Expected cash flows

Strategic & Tactical Issues 4. Production phase Top management support Flow of communications

Strategic & Tactical Issues 5. Termination phase Lessons learned 6. Termination phase Long-term relationship with customers

Factors Affecting Success of a Project 1. Project mission & goals 2. Top management support 3. Project planning 4. Client consultation 5. Personnel issues 6. Technical issues 7. Client acceptance 8. Project Control 9. Communication 10. Trouble shooting