Project Management Karl A. Smith University of Minnesota ISE 5101 September 28, 2001

2 Successful Projects 1.Take a moment to recall one of your most successful projects 2. Describe it briefly 3. Listen as others describe their successful projects 4. List common characteristics

A recent survey of technology projects in the United States by the Project Management Institute reveals some startling percentages. Close to half of the projects started were never finished, 30% were completed but took at least twice as long as expected, some took 5 times as long. Only 10% of the projects were finished on time.

Critical Success Factors and Their Importance for System Implementation (Listed in decreasing order of correlation) 1.Project mission. Initial clearly defined goals and general directions. 2.Top management support. Willingness of top management to provide the necessary resources and authority/power for implementation success. 3.Schedule plans. A detailed specification of the individual action steps for system implementation. 4.Client consultation. Communication, consultation, and active listening to all parties impacted by the proposed project. 5.Personnel. Recruitment, selection, and training of the necessary personnel for the implantation project team. 6.Technical tasks. Availability of the required technology and expertise to accomplish the specific technical action steps to bring the project on-line. 7.Client acceptance. The act of "selling" final product to its ultimate intended users. 8.Monitoring and feedback. Timely provision of comprehensive control information at each stage in the implementation process. 9.Communication. The provision of an appropriate network and necessary data to all key actors in the project implementation process. 10.Troubleshooting. Ability to handle unexpected crises and deviations from plan.

5 What is a project? (Cleland and Kerzner, 1985; Nicholas, 1990) … a combination of human and nonhuman sources pulled together in a temporary organization to achieve a specified purpose. Features –Definable purpose with established goals –Cost, time and performance requirements –Multiple resources across organizational lines –One-time activity –Element of risk –Temporary activity –Process with phases/ project life cycle

Project Success: Quadruple Constraint

Project Planning Projects typically start with at Statement of Work (SOW) provided by the client. The statement of work is a narrative description of the work required for the project. A Project Charter is often developed. Planning starts with the development of a Work Breakdown Structure (WBS). A WBS is ‘ a deliverable-oriented grouping of project elements which organizes and defines the total scope of a project ’ (PMBOK, 1996). There are typically three to six levels in WBSs -- program, project, task, subtask, etc. Developing a work breakdown structure is important for scoping a project, i.e., determining the specific tasks that have to be completed, choosing appropriate groupings for these activities, and setting precedence and interdependence (what has to follow what and what can be going on at the same time).

Creating a Project Charter 1.Write an Overview of the Project Scope 2.Determine the Team’s Boundaries for Creating the Deliverables 3.Define the Customer’s Criteria for Acceptance 4.Determine the Required Reviews and Approvals 5.Establish Risk Limits 6.Select the Project Leader and Team Members 7.Set Deadlines for Delivery of the Final Deliverables 8.Set Limits on Staffing & Spending 9.Create a List of Required Reports 10.Identify Organizational Constraints & Project Priorities. 11.Assemble a Project Charter Martin, P. & Tate, K Project Management Memory Jogger. GOAL/QPC.

10 charterform.pdf

Office Remodeling Project The following activities must be accomplished to complete an office remodeling project: Activity Estimated Duration (Days) Procure Paint 2 Procure New Carpet 5 Procure New Furniture 7 Remove Old Furniture 1 Remove Old Carpet 1 Scrub Walls 1 Paint Walls 2 Install New Carpet 1 Move in New Furniture 1

Office Remodeling Project - WBS Procure Procure Paint Procure New Carpet Procure New Furniture Prepare Remove Old Furniture Remove Old Carpet Scrub Walls Install Paint Walls Install New Carpet Move in New Furniture

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Bus Shelter Construction Example Job Name Duration Resources Predecessor(s) 1 Shelter Slab Shelter Walls Shelter Roof 2 2 2,4 4 Roof Beam Excavation Curb and Gutter Shelter Seat 12 4,6 8 Paint Signwork 12 2,6 Scheduling Problem - CPM

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Bus Shelter Construction Critical Path Method Results ACT NAME DUR RES EARLY LATE FLOAT CUR start CRIT PATH ST FN ST FN TOT FREE 1 Shelter Slab YES 2 Shelter Walls YES 3 Shelter Roof YES 4 Roof Beam YES 5 Excavation YES 6 Curb and Gutter NO 7 Shelter Seat YES 8 Paint YES 9 Signwork NO

Estimating Activity Duration 1.Activity length between 0.5% and 2% of project duration. If an activity takes a year, each activity should be between a day and a week. 2.Critical activities that fall below this range should be included. 3.If the number of activities is very large (say, above 250), the project should be divided into subprojects, and individual schedules developed for each.

Homework Assignment 1 Develop a Statement of Work (SOW), a Project Charter, and Complete a Work Breakdown Structure (WBS) and a Critical Path Schedule for a project (or sub- project) from your workplace or experience

Characteristics of ‘Effective’ Project Managers? 1.Formulate your response to the question individually 2.Share your answer with a neighbor 3.Listen carefully to your neighbor's answer 4.Work together to Create a new answer through discussion

What is takes to be a good project manager --Barry Posner (1987) Communications (84% of the respondents listed it) Listening Persuading Organizational skills (75%) Planning Goal-setting Analyzing Team Building Skills (72%) Empathy Motivation Esprit de Corps Leadership Skills (68%) Sets Example Energetic Vision (big picture) Delegates Positive Coping Skills (59%) Flexibility Creativity Patience Persistence Technological Skills (46%) Experience Project Knowledge

Skills necessary for effective project managers -Pinto and Kharbanda (1995): Planning Work breakdown Project scheduling Knowledge of PM software Budgeting and costing Organizing Team building Establishing team structure and reporting assignments Define team policies, rules and protocols Leading Motivation Conflict management Interpersonal skills Appreciation of team members' strengths and weaknesses Reward systems Controlling Project review techniques Meeting skills

Keys to success as a project manager--Lientz and Rea (1996): Communicate regularly in person with key team members Keep management informed Keep informed on all aspects of the project Delegate tasks to team members Listen to input from team members Be able to take criticism Respond to and/or act on suggestions for improvement Develop contingency plans Address problems Make decisions Learn from past experience Run an effective meeting Set up and manage the project file Use project management tools to generate reports Understand trade-offs involving schedule and budget Have a sense of humor