1. Slide 2.1 4E1 Project Management Defining the Project

2. Slide 2.2 Lecture Objectives At the end of this lecture you should be: able to define discuss (intelligently!) the term ‘project’ and be familiar with definitions of what constitutes a project discuss trade-offs that occur in projects aware of the scope of projects the project cycle understand: what characterises projects and how they differ from production environments how projects vary what is meant by the ‘primary objectives’ of a project what is involved in defining a project

3. Slide 2.3 What is a Project? (1) “A project is a unique venture with a beginning and an end, conducted by people to meet established goals within parameters of cost, schedule and quality” (Buchanan and Boddy, 1992)

4. Slide 2.4 What is a Project? (2) “The simplest form of a project is a discrete undertaking with defined objectives often including time, cost and quality (performance) goals. All projects evolve through a similar ‘life cycle’ sequence during which there should be recognised start and finish points. In addition the project objectives may be defined in a number of ways, e.g. financial, social and economic, the important point being that the goals are defined and the project is finite” (Association of Project Managers, 1993)

5. Slide 2.5 Examples of Projects Refurbish a hotel Relocate an office Clean up after a tanker spillage Make a movie Organise Trinity Ball Deploy new social welfare payment scheme Eliminate polio

6. Slide 2.6 Engineering Examples Build a bypass Design a bridge Design a car braking system Commission a new factory Develop a new microprocessor Install a new generating unit in a power station Develop a new claims management system Install an ERP system

7. Slide 2.7 A Typology of Projects Individual Group Organisational Multi- National Multi- Organ. National LowHigh Complexity Uncertainty High Low Novel writing Basic Research Oil exploration Product development. Wedding Airport Chemical plant Oil tanker Maastrict treaty Channel tunnel Airbus A380 Car plant Military campaign Motorway Luas Advertising campaign Reorgan- isation Initial public offering

8. Slide 2.8 Projects Are novel Have objectives Are complex Are unique Face multiple uncertainties Involve risks Are transient

9. Slide 2.9 Projects versus Production Projects: One-off: single cycle Often new methods/ products/materials Limited time for tinkering Definite goals Production: Routine: repetitive cycles Known methods/ products/materials Continual improvement Goal=cost-effective, predictable production

10. Slide 2.10 Primary Objectives Cost (budget) Time (to completion) Quality (specification, performance) People

11. Slide 2.11 Trade-Offs Time vs. cost Time is money, margins Quality vs. cost Reduce costs → sacrifice performance Quality vs. time Competitive pressure, customer demands

12. Slide 2.12 Decision/Contract Project Lifecycle Close Obtain User Acceptance Complete Documentation Sign Off Post- Implementation Review Maintenance Value Assessment Execute Issue Change Orders Review Project Status Install Deliverables Report on Project Review Schedule and Budget Value Engineering Organise Team Establish Control Tools Assign Work Plan Identify Tasks Sequence Tasks Identify Critical Activities Assemble Resources Estimate Time and Cost Determine Staffing Value Planning Define Requirements Analysis Feasibility Study Requirements Specification Scenario Development Cost-Benefit Analysis Set Objectives Compare Alternatives Source: Field and Keller

13. Slide 2.13 Defining a Project - Overview The customer or client The project executor or contractor Documented project definition Suppliers, equipment manufacturers and subcontractors Concept and appraisal Commercial and technical agreement Planning and design Description Drawings Specification Budget Contract Initial Sales Specification Changes in project scope and detail Drawing list and drawings Engineering calculations Purchase schedules Purchase specifications Purchase orders Execution (making or building) Drawings Test certificates Changes and concessions Installation, operating and maintenance manuals Recommended spare parts holdings and lists Changes, revisions, permits and concessions Documents accumulate and become more accurate as project is designed and built Testing and commissioning Operation and maintenance Delivery and handover As-built record of the project

14. Slide 2.14 Defining a Project Business objectives What (business outcomes)? Why? Project ownership Who? Project objectives What (project results)? How (options)? Project definition What (tasks)?, What (deliverables)?, When?

15. Slide 2.15 Summary: Key Points Projects Vary in nature and scope Are one-off Involve new things Have specific objectives Involve an element of risk Tradeoffs: cost, quality, time Stages in a project life cycle Stage 1: define what the project is about