1. BUSINESS PLUG-IN B15
Project Management

2. LEARNING OUTCOMES
Describe the project stakeholders and executive sponsor’s roles in choosing strategic projects
Highlight the five components of a project charter

3. LEARNING OUTCOMES
Describe the two primary diagrams most frequently used in project planning
Identify the three primary areas a project manager must focus on managing to ensure success

4. PROJECT MANAGEMENT FUNDAMENTALS
Project – temporary endeavor undertaken to create a unique product, service, or result
Project management – the application of knowledge, skills, tools, and techniques to project activities to meet project requirements
Project manager – an individual who is an expert in project planning and management

5. PROJECT MANAGEMENT FUNDAMENTALS
Project management role

6. CHOOSING STRATEGIC PROJECTS
Project stakeholders - individuals and organizations actively involved in the project or whose interests might be affected as a result of project execution or project completion
Executive sponsor - the person or group who provides the financial resources for the project

7. CHOOSING STRATEGIC PROJECTS
Three common techniques for selecting projects
Focus on organizational goals
Categorize projects
Perform a financial analysis

8. UNDERSTANDING PROJECT PLANNING
After selecting strategic projects and identifying a project manager the next critical component is the project plan
Building a project plan involves two key components:
Project charter
Project plan

9. Project Charter
Project charter - a document issued by the project initiator or sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities and includes:
Project scope
Project objectives
Project constraints
Projects assumptions

10. Project Charter
SMART criteria are useful reminders on how to ensure that the project has created understandable and measurable objectives

11. 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

12. Project Plan
Two primary diagrams used in project planning include PERT and Gantt charts
PERT chart – a graphical network model that depicts a project’s tasks and the relationships between those tasks
Dependency
Critical path
Gantt chart – a simple bar chart that depicts project tasks against a calendar

13. Project Plan
PERT Chart EXPERT – PERT Chart Example

14. Project Plan
MS Project – Gantt Chart Example

15. MANAGING PROJECTS
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 the projects is completed on time and on budget
Project milestones - represent key dates when a certain group of activities must be performed

16. MANAGING PROJECTS Managing a project includes:
Identifying requirements
Establishing clear and achievable objectives.
Balancing the competing demands of quality, scope, time, and cost
Adapting the specifications, plans, and approach to the different concerns and expectations of the various stakeholders

17. MANAGING PROJECTS
A project manager must focus on managing three primary areas to ensure success:
Managing people
Managing communications
Managing change
Managing risk

18. MANAGING PROJECTS
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

19. MANAGING PROJECTS Common reasons change occurs
An omission in defining initial scope
A misunderstanding of the initial scope
An external event
Organizational changes
Availability of better technology
Shifts in planned technology
Users needs and requests
Management reducing funding

20. Preparing for Change
Three important guidelines fore effectively dealing with change management
Institute change management polices
Anticipate change
Seek change

21. 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

22. Mitigating Risk Actions to improve risk management capabilities
Promote project leadership skills
Learn from previous experience
Share knowledge
Create a project management culture

23. 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

24. CLOSING CASE ONE QUESTIONS
Describe Gantt charts and explain how TTC could use one to communicate project status
Describe PERT charts and explain how TTC could use one to communicate project status
How could TTC use its Master Schedule to gain efficiencies in its supply chain?
How could TTC use its Master Schedule to identify change management and risk management issues?

25. 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

26. CLOSING CASE TWO QUESTIONS
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?
Why would Toyota find it important to focus on implementing good project management techniques?
Why are project management, change management, and risk management critical to a global company such as Toyota?
Describe the ramifications to Toyota’s business if it failed to anticipate change.