SBI 202 – Project Management Prelim Portion – Ch 1 & 2 Project Management , 2nd Edition (2010) By: Jeffery K. Pinto

Chapter 1 - Why Project Management? Introduction Chapter 1 - Why Project Management?

What is a PROJECT A project is a “Unique Venture”, with a “Beginning and End”, “Conducted by People”, to meet “Established Goals”, with parameters of “Cost, Schedule, and Quality”. Project can also be defined as: Specific Objective to be completed with certain specification Have defined start and end dates Have funding limits Consume human and non human resource (money, people, equipment's) Are multifunctional (across various departments)

General Project Characteristics Projects are complex, one time process Projects are developed to resolve a clear goal or set of goals Project are ad hoc endeavor's with a clear life cycle Projects are building blocks in design and execution of organizational strategies Projects are responsible for improving products, services and organizational process Projects provide strategy for the management of change

General Project Characteristics Project management entails cross functional and organizational boundaries Management function like planning, organizing, motivation, directing and control applies to project management Principal outcomes of a project are satisfaction of customer requirements within the constrains of technical, cost and schedule objective Projects are terminated upon successful completion of performance objectives

Process Management & Project Management Projects Repeat process or products Several objective's Ongoing People are homogenous Well established system in place Greater certainty of cost, performance & schedule Part of line organization Based on established practices New process or product One objective One shot – limited life People are heterogeneous System to be created to integrate efforts Greater uncertainty of cost, performance & schedule Outside line of organization Violates established practices

Importance of Project Shortened product life cycle Narrow product launch windows Increasingly complex and technical products Emergence of global market

Project Life Cycle Defining Stage Planning Stage Executing Stage Delivering Stage

Project Life Cycle & Man-hours spend

Defining Stage Also know as Conceptualization Initial goals and technical specification for a project along with the needed resources are identified and the stake holders and the clients agree on it Activities involved in this stage are Goals Specifications Tasks Responsibilities

Planning Stage Specification are given in detail along with the specification, schematics and schedule are given and laid out Work packages are created here, which is nothing but individual pieces of the project Activities involved in this stage are Schedules Budgets Resources Risks Staffing

Executing Stage The actual work of the project is carried out here Maximum number of resources and man hours are required in this stage of a project Activities involved in this stage are Status Reports Changes Quality Forecasts

Delivery Stage Also known as Termination Occurs when the project is ready to be completed or has been completed and is ready for transfer to the customer Activities involved in this stage are Train Customer Transfer Documents Release Resources Release Staff Lessons Learned

Project Life Cycle & Effects

Factors of Project Success Time Cost Performance

Quadruple Constraint for Project Success

Four Dimension of Project Success Importance

Four Dimension of Project Success Importance Project Efficiency Meeting budget and schedule expectation Impact on Customer Meeting technical specification, addressing customer need and creating a project that satisfies the client need Business Success Project has achieved significant commercial success Future Potential The project has opened new market or new product line o had helped to develop new technology for future use

Project Management Maturity – A Generic Model High Maturity Institutionalized, seeks continuous improvements Moderate Maturity Defined practices, training programs, organizational supports Low Maturity Ad hoc process, no common language, little support

The Organizational Context Chapter 2 - Strategy, Structure, and Culture

Projects & Organizational Strategy Developing VISION statement and MISSION statement Formulating, implementing, and evaluating Making cross functional decisions Achieving objectives

Characteristics of Objectives S Specific - Smart M Measurable A Attainable R Realistic T Time Related

Relationship of Strategic Elements Mission Objectives Strategy Goals Programs

Stakeholder Management Project Stakeholders Are all the individuals or groups who have an active stake in the project and can potentially impact, either positively or negatively in the development.

Identify Project Stakeholder Internal Top Management Accountant Other Functional Managers Project Team Members External Clients Competitors Suppliers Environmental, Political, Consumers and other intervenor group

Managing Stakeholders Assess the environment Identify the goals of the principal actors Asses company and individual capability Define the problem Develop the solution Test and refine the solution

Organizational Structure Organizational structure designates formal reporting relationship including the level in the organization and the span of control for the manager and supervisor Organizational structure identifies the grouping together of individual into departments and departments into total organization Organizational structure includes the design of system to ensure effective communication, coordination, and integration of effort across department.

Forms of Organizational Structure 3 types of organizational structure Functional Organizations Project Organizations Matrix Organizations

Functional Organizational Strength Developed within the basic functional structure of the organization, no disruption or change to the design Development of in-depth knowledge and intellectual capital Standard career path and team members perform their duties while maintaining maximum connection with the group Weakness Makes it difficult to achieve cross-functional cooperation Lack of customer focus Takes longer duration to complete due to structural problem, slow communication, lack of ownership in project and for completion of activities Projects may be sub optimized due to varying interest or commitment

Project Organization Strength Assign authority solely to the project manager Lead to improved communication across the organization and among functional group Promotes effective and speedy decision making Promotes the creation of cadres of project management experts Encourages rapid response to market opportunities Weakness Setting and maintenance of team is expensive Potential for project team to develop loyalty to the project rather than the overall organization Difficult to maintain a pooled supply of intellectual capital Concern about the project team members about the future once the project ends

Matrix Organization Strength Suited for dynamic environments Emphasizes the dual importance of project management and functional efficiency Promotes coordination across functional units Maximizes, scare resource between competing projects and functional responsibilities Weakness Dual hierarchies mean two bosses Requires significant time to be spent negotiating the sharing of critical resources between projects and departments Can be frustrating for workers caught between competing projects and functional demands

Project Management Office PMO is defined as a centralized unit within an organization or department that oversees or improves the management of projects Weather Station Control Tower Resource Pool

Organizational Culture Unwritten Rules of behavior Held by some subset of the organization Taught to all new members

How are Culture Formed Technology Environment Geographical Location Reward System Rules and Procedures Key Organizational Member Critical Incidents

Organizational Culture and Project Management Departmental Interaction Employee Commitment to Goal Project Planning Performance Evaluation