McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, All Rights Reserved Business Plug-In B15 Project Management.

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Presentation transcript:

McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, All Rights Reserved Business Plug-In B15 Project Management

B15-2 LEARNING OUTCOMES 1.Describe the three primary activities performed by a project manager 2.Explain change management and how an organization can prepare for change 3.Explain risk management and how an organization can mitigate risk 4.Summarize the different strategies a project manager can use to ensure a successful project

B15-3 Introduction Project – a temporary endeavor undertaken to create a unique product or service Project management – the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations

B15-4 Project Management Fundamentals Project deliverable – any measurable, tangible, verifiable outcome, result, or item that is produced to complete a project or part of a project Project milestone – represents key dates when a certain group of activities must be performed Project manager – an individual who is an expert in project planning and management, defines and develops the project plan, and tracks the plan to ensure all key project milestones are completed on time

B15-5 Project Management Fundamentals Project management role

B15-6 CHOOSING STRATEGIC PROJECTS Organizations must determine which projects to pursue Three common techniques for selecting projects 1.Focus on organizational goals 2.Categorize projects 3.Perform a financial analysis

B15-7 CHOOSING STRATEGIC PROJECTS Techniques for choosing strategic projects –Focus on organizational goals –Categorize projects –Perform a financial analysis

B15-8 SETTING THE PROJECT SCOPE Project scope – defines the work that must be completed to deliver a product with the specified features and functions, and typically include: –Project product –Project objectives –Project deliverables –Project exclusions

B15-9 SETTING THE PROJECT SCOPE SMART criteria are useful reminders on how to ensure that the project has created understandable and measurable objectives

B15-10 MANAGING RESOURCES AND MAINTAINING THE PROJECT PLAN Project plan – a formal, approved document that manages and controls project execution A well-defined project plan should be: –Easy to understand and read –Communicated to all key participants –Appropriate to the project’s size, complexity, and criticality –Prepared by the team, rather than by the individual project manager

B15-11 MANAGING RESOURCES AND MAINTAINING THE PROJECT PLAN Two primary diagrams used in project planning include PERT and Gantt charts –PERT (Program Evaluation and Review Technique) chart – is a graphical network model that depicts a project’s tasks and the relationships between those tasks (Dependencies and Critical paths are found in PERT charts) –Gantt chart – a simple bar chart that depicts project tasks against a calendar

B15-12 MANAGING RESOURCES AND MAINTAINING THE PROJECT PLAN PERT Chart EXPERT – PERT Chart Example

B15-13 MANAGING RESOURCES AND MAINTAINING THE PROJECT PLAN MS Project – Gantt Chart Example

B15-14 Change Management and Risk Management Good project managers understand the fundamentals of project management and how to effectively deal with change management and risk management

B15-15 CHANGE MANAGEMENT Change management – a set of techniques that aid in evolution, composition, and policy management of the design and implementation of a system –Change management system – a collection of procedures to document a change request and define the steps necessary to consider the change based on the expected impact of the change –Change control board (CCB) – responsible for approving or rejecting all change requests

B15-16 CHANGE MANAGEMENT

B15-17 Preparing for Change Three important guidelines fore effectively dealing with change management 1.Institute change management polices 2.Anticipate change 3.Seek change

B15-18 RISK MANAGEMENT Project risk – an uncertain event or condition that, if it occurs, has a positive or negative effect on a project objective –Risk management – the process of proactive and ongoing identification, analysis, and response to risk factors

B15-19 RISK MANAGEMENT

B15-20 Mitigating Risk Actions to improve risk management capabilities –Promote project leadership skills –Learn from previous experience –Share knowledge –Create a project management culture

B15-21 Successful Project Management Strategies Top five successful project management strategies 1.Define project success criteria 2.Develop a solid project plan 3.Divide and conquer 4.Plan for change 5.Manage project risk

B15-22 Closing Case One Staying on Track – Toronto Transit Toronto Transit Commission (TTC) serves over 1 million customers daily TTC currently has over 50 large engineering and construction projects TTC’s 50 projects average 100 – 150 activities each, with some projects encompassing as many as 500 – 600 activities

B15-23 Closing Case One Questions 1.Describe Gantt charts and explain how TTC could use one to communicate project status 2.Describe PERT charts and explain how TTC could use one to communicate project status 3.How could TTC use its Master Schedule to gain efficiencies in its supply chain? 4.How could TTC use its Master Schedule to identify change management and risk management issues?

B15-24 Closing Case Two Change at Toyota Toyota Motor Sales undertook significant change to bring IT and the business closer The change began with the upheaval of a 400-person IS department 50 percent of jobs were changed over 6 months

B15-25 Closing Case Two Questions 1.What would be the impact on Toyota’s business if it failed to implement a project management solution and managed its projects using a myriad of spreadsheets and Word documents? 2.Why would Toyota find it important to focus on implementing good project management techniques? 3.Why are project management, change management, and risk management critical to a global company such as Toyota? 4.Describe the ramifications to Toyota’s business if it failed to anticipate change.