MITM743 Advanced Project Management Dr. Abdul Rahim Ahmad Assoc. Professor College of IT, UNITEN Kerzner Chapter 1 Growth of Project Management

Contents Introduction Understanding project management Resistance to Change Strategic Imperatives for Project Management Project management Life Cycle Excellence in Project Management

1.0 Introduction

Introduction You should have some Project management exposure through Seminar/class/readings on project management Exposed to PMBOK Guide Advanced project management is supposed to pick up from there: Put theory into practice For this course, besides some theory of project management and PMBOK knowledge, we use textbook by Kerzner

1.1 Understanding Project Managemenrt

Understanding Project Management A unique endeavour (never been attempted in the past) that has a definable objective, consume resources, and operate under time, cost and quality constraints Project Management The planning, scheduling and controlling of a series of integrated tasks such that the objectives of the project are achieved successfully and satisfy the stakeholders

Workflow Traditional Project management based Vertically Horizontally top down chain of commands Less interaction between functional groups Project management based Horizontally Organized across functional groups More coordination and communication among functional groups Productive, efficient and effective Vertically and horizontally

Project Management Implementation Based on organization culture In many organizations currently Select PM after project planning is completed. PM not involved in market analyses or revenue projection A good project management culture is to: Educate PM Through PM COE Involve in bottom line PM has more authority

1.2 Resistance to Change

Project Management Acceptance Why was project management so difficult to accept implement? Historical! Due to earlier industry classification Non Project driven – Product management Project driven – Project Management Mix of both – Program Management Economic reasons. Dominance of white collar/management ranks. No emphasis on project management . Senior managements preference to status quo.

Project Management Acceptance Now, many companies run organization by “Management by project” basis. Advantageous. Acceptance of Project management in the late 80’s after recession TQM, reengineering, lean and mean etc Effects of IT in workplace What makes companies successfully implement project management? Successful implementations Successful Execution of processes Successfulmethodologies

1.3 Strategic Imperatives for project management

Strategic imperatives Strategic imperatives (absolutely required) behind achieving excellence in PM comes from : Internal Benefits discovery by senior managers Suggestion by middle managers? External Pressure in order to accept: Competition, quality, financial, legal, technology, social, political, economic, stakeholder Can be integrated with concurrent engineering, TQM, risk mgmt., change mgmt.

1.4 Project management Life Cycles

PM Life Cycle To achieve PM excellence – need training and education 5 Phases of PM life cycle Embryonic : recognize need, benefits, apps, what to do. Executive management acceptance – from support to sponsors Line management acceptance – from support to willingness Growth – life recognize cycle, tracking Maturity – manage, integrate, educate.

1.5 Excellence in project management

6 components of excellence 6 areas in which successful companies excel in project management Integrated processes Culture Management support Training and Education Informal project management Behavioral excellence All requires communications and sharing of informations

View of project management: Past vs present Need more people Need more cost Decrease profit Creates unstabiliy/conflicts Create problems Only for larger project Quality problems Power and authority problems Only delivers product Make organization uncompetitive Less people Less cost More profit Better control scope and changes Org more efficient Work closely with customers Solve problems Reduce power struggles Allows people to make good company decisions Delivers solutions

Case studies Kerzner chose 300 companies Identified through Published literatures Survey questionnaires First hand meetings External trainers and consultants How studies were made 3 sets of questionnaires Follow-up interviews Not all good companies participated Afraid of loosing competitive edge Afraid of being benchmarked Not authorised to release information Afraid of higher expectation

Case studies Case 1: Clark Faucet Company. Case 16: Cortez Plastics. Case 2: Photolite Corporation (A). Case 3: Photolite Corporation (B). Case 4: Photolite Corporation (C). Case 5: Photolite Corporation (D). Case 6: Continental Computer Corporation. Case 7: Goshe Corporation. Case 8: Hyten Corporation. Case 9: Acorn Industries. Case 10: Mohawk National Bank. Case 11: First Security Bank of Cleveland. Case 12: Como Tool and Die (A). Case 13: Como Tool and Die (B). Case 14: Apache Metals, Inc. Case 15: Cordova Research Group. Case 16: Cortez Plastics. Case 17: Haller Specialty Manufacturing. Case 18: Macon, Inc. Case 19: Jones and Shephard Accountants. Case 20: The Trophy Project. Case 21: The Blue Spider Project. Case 22: Corwin Corporation. Case 23: Denver International Airport. Case 24: MIS Project Management at First National Bank. Case 25: Concrete Masonry Corporation. Case 26: Construction of a Gas Testing Laboratory in Iran. Case 27: The Space Shuttle Challenger Disaster. Case 28: Phillip Condit and the Boeing 777: From Design and Development to Production and Sales.

Discussions Why PM is less likely to be implemented during favourable economic times? Is PM excellence more achievable through knowledge and education or by doing it? In project driven organization, acceptance of PM is more internally driven or customer driven.

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Project Management…. Work Smart Not Hard !!!