Chapter 3 “Project Management”

What is a Project? A task involving an end goal requiring: Planning - goal setting, defining the project, team organization Scheduling - relate people, money, and supplies to specific activities and activities to each other Controlling - monitor resources, costs, quality, and budgets; revise plans and shift resources to meet time and cost demands

What does the term Project mean to you? What are some types of possible projects? Name some other types of projects? What are some possible challenges of a project?

Examples of types of project and their size: Individual – decorating your bedroom Group – organising a wedding Organisation – construction company, building the Millennium bridge in London Project Organisation – creation of a separate independent organisation specifically for accomplishing a particular project, e.g. the Olympic games committee Multinational – design construction of Concorde

What is a Project? A task involving an end goal requiring: Planning - goal setting, defining the project, team organization Scheduling - relate people, money, and supplies to specific activities and activities to each other Controlling - monitor resources, costs, quality, and budgets; revise plans and shift resources to meet time and cost demands

Definition of a Project “An activity with a fixed start and end point, managed with finite resources, involving change and often achieved by the collective effort of a team of people” – IPM “the application of knowledge, skills, tools and techniques to project activities in order to meet (or exceed?) stakeholder needs and expectations from the project”

Definition of a Project – Cont’d “A project is a sequence of unique, complex, and connected activities. Having one goal or purpose that must be completed by a specific time, within budget, and according to specification” (Artto, 2002)

Features of a project A start and a finish Is a unique activity with a visible output May involve uncertainty and risk Involves a team coming together specifically for the project A budget Non repetitive tasks, sequential order Use of resources (including human resources) A single point of ultimate responsibility Clearly defined team roles Clear aims, objectives, goals

Terms often confused with ‘project’ Process – a series of steps needed to perform a routine activity (e.g. purchasing). A project may contain many processes. Programme – work performed towards achieving a long term goal (e.g. a health awareness programme). Programmes may never achieve all their goals, and may comprise a series of projects.

Video 1: Project Management at Hard Rock’s Rockfest (8:26)

What is the Role of the Project Manager? Highly visible Responsible for making sure that: All necessary activities are finished in order and on time The project comes in within budget The project meets quality goals The people assigned to the project receive motivation, direction, and information

The Role of the Project Manager Highly visible Responsible for making sure that: Project managers should be: Good coaches Good communicators Able to organize activities from a variety of disciplines All necessary activities are finished in order and on time The project comes in within budget The project meets quality goals The people assigned to the project receive motivation, direction, and information

Ethical Issues Project managers face many ethical decisions on a daily basis The Project Management Institute has established an ethical code to deal with problems such as: Offers of gifts from contractors Pressure to alter status reports to mask delays False reports for charges of time and expenses Pressure to compromise quality to meet schedules

The project manager’s adage (a light hearted motto) You can have any two of three things in a project: You can get it done on time You can get it done within budgeted cost You can get it done properly/well  If you are willing to wait, you can get the job done right, within cost.  If you are willing to spend the money, you can get the job done on time. Or you can get the job done on time and within budget; only it might not do what it was supposed to do.

PM Stages: (5 Phases) Stages in the Development of a project: Define/Initiate/ Analysis (Conception/ Idea) – Phase I Planning/Development (The Plan outlined) – Phase II Organize/Execution (Develop the process/ team) – Phase III Monitoring/Control (is it correct?) – Phase IV Close out (The Wrap Up) – Phase V

Key Components of a Project 5-Phase Project Management 16

Project Management Activities: (Phase II-III) Planning Objectives Resources Work break-down structure Organization Scheduling Project activities Start & end times Network Controlling Monitor, compare, revise, action

Define – Initiate (Phase I) Essentially - What are we going to do? For small projects an informal discussion might adequate For larger projects, a more formal review and discussion processes required. Key questions to answer should be: Should you do it? What is the benefit and do the benefits outweigh the costs? Can you do it? Is it technically feasible and are there enough resources?

But I am too busy to spend time planning!…Planning allows you to: Ensure that people only work on activities which are needed, and do them correctly the first time, not waste time doing unnecessary activities. Anticipate potential problems and take preventative action to deal with them before they happen. Do things in the right order at the right time, which should prevent things going wrong later.

What can go wrong !

The Initiation phase – start up Assign people to project roles, ensure they are available when needed. Negotiation may be necessary. Give and explain all tasks to team members. Set up systems and accounts to track personnel information and financial expenditure. Announce the project’s start, what it will produce. When it will start when it will finish

Implementation phase – the do Doing the tasks as laid out in your plan Regularly comparing the actual performance with the plan, knowing and anticipating when things are not going according to schedule Fixing problems that arise. Keeping everyone informed

The Evaluation phase – the wrap up or review Get the customer’s approval of final results. There may be formal project hand over to the client Complete any paperwork. Hold a post project evaluation to recognise achievements and discuss lessons learned

Project Organization Works Best When Work can be defined with a specific goal and deadline The job is unique or somewhat unfamiliar to the existing organization The work contains complex interrelated tasks requiring specialized skills The project is temporary but critical to the organization The project cuts across organizational lines

The Evaluation phase – the wrap up or review Get the customer’s approval of final results. There may be formal project hand over to the client Complete any paperwork. Hold a post project evaluation to recognise achievements and discuss lessons learned

Roles in projects – who is responsible for what? One of the the benefits of project management techniques is the opportunity to clarify roles. Project sponsor – person who’s paying for it Project champion - person who wants to see it happen Project manager – will ensure it happens Project team – will make it happen Stakeholders – those affected by it and with an interest in it, but not necessarily part of it. Audience – we’ll consider them later!

Attributes of an effective project manager Group exercise What you think are the attributes/qualities required to be an effective project manager?

Attributes of an effective project manager – typically are Excellent time management skills ‘Can do’ proactive attitude Adaptable, flexible. Fair – respecting different people’s viewpoints Committed to the team and the project’s goals Decisive and realistic Excellent communication skills Leadership Assertiveness

Attributes of an effective project manager – typically are Be prepared to ‘roll up their sleeves and get their hands dirty’ Foresight Planning skills Knowledge of the subject / area of work Be prepared to walk, if necessary i.e. leave! A sense of humour ?

A Sample Project Organization Marketing Finance Human Resources Design Quality Mgt Production President Test Engineer Mechanical Project No. 1 Project Manager Technician Technician Project No. 2 Project Manager Electrical Engineer Computer Engineer Figure 3.2

Matrix Organization Marketing Operations Engineering Finance Project 1

Project Controlling Close monitoring of resources, costs, quality, budgets Feedback enables revising the project plan and shift resources Computerized tools produce extensive reports

Work Breakdown Structure (WBS) Organizes project into major components during planning phase of project. Level 1. Project 2. Major tasks in the project 3. Subtasks in the major tasks 4. Activities (or “work packages”) to be completed

Work Breakdown Structure (WBS) Level 1 Develop Windows 8 Operating System 1.0 Level 2 Software Design Cost Management Plan System Testing 1.1 1.2 1.3 Level 3 Develop GUIs Design Cost Tracking Reports Module Testing Ensure Compatibility with Earlier Versions Develop Cost/Schedule Interface Defect Testing 1.1.1 1.2.2 1.3.2 1.3.1 1.2.1 1.1.2 Level 4 Compatible with Windows 7 Compatible with Windows Vista Compatible with Windows XP 1.1.2.3 1.1.2.2 1.1.2.1 (Work packages) Figure 3.3

Project Management Techniques During Scheduling phases of project Gantt chart Critical Path Method (CPM) Program Evaluation and Review Technique (PERT)

Gannt Chart A Gantt chart is a horizontal bar chart developed as a production control tool in 1917 Typically created in Microsoft Project, Excel Provides a graphical illustration of a schedule that helps to: plan coordinate track specific tasks in a project

A Simple Gantt Chart Time J F M A M J J A S Design Prototype Test Revise Production

Sample Gannt Chart, (cont’d)

Service For a Delta Jet 0 10 20 30 40 Time, Minutes Figure 3.4 Passengers Baggage Fueling Cargo and mail Galley servicing Lavatory servicing Drinking water Cabin cleaning Flight services Operating crew Deplaning Baggage claim Container offload Pumping Engine injection water Main cabin door Aft cabin door Aft, center, forward Loading First-class section Economy section Container/bulk loading Galley/cabin check Receive passengers Aircraft check Boarding 0 10 20 30 40 Time, Minutes Figure 3.4

Project Control Reports Detailed cost breakdowns for each task Total program labor curves Cost distribution tables Functional cost and hour summaries Raw materials and expenditure forecasts Variance reports Time analysis reports Work status reports

Determining the Project Schedule Perform a Critical Path Analysis The critical path is the longest path through the network The critical path is the shortest time in which the project can be completed Any delay in critical path activities delays the project Critical path activities have no slack time

Methods for identifying Critical Path Identify every path through the network and the time to complete each path. Critical path is the longest path. Identify the sequence of activities with zero slack time. Path with zero slack time is Critical path. Slack time is the amount of delay that could be tolerated in the starting time or completion time of an activity without causing a delay in the completion of the project

Video 2: Project Management at Arnold Palmer Hostpital (9:21))

Cost–Time Trade-Offs and Project Crashing It is not uncommon to face the following situations: The project is behind schedule The completion time has been moved forward Shortening the duration of the project is called project crashing

Factors to Consider When Crashing a Project The amount by which an activity is crashed is, in fact, permissible Taken together, the shortened activity durations will enable us to finish the project by the due date The total cost of crashing is as small as possible

Steps in Project Crashing If there is only one critical path, then select the activity on this critical path that (a) can still be crashed, and (b) has the smallest crash cost per period. If there is more than one critical path, then select one activity from each critical path such that (a) each selected activity can still be crashed, and (b) the total crash cost of all selected activities is the smallest. Note that the same activity may be common to more than one critical path.

Types of Project Management Software: How do we control projects? There are several popular packages for managing projects Primavera MacProject MindView HP Project Fast Track Microsoft Project

Using Microsoft Project Program 3.1

Using Microsoft Project Program 3.2

Using Microsoft Project Pollution Project Percentage Completed on Aug. 12 ACTIVITY COMPLETED A 100 B C D 10 E 20 F G H Program 3.3

ANY QUESTIONS?