1. Project Management Karl A. Smith University of Minnesota ksmith@umn.edu www.ce.umn.edu/~smith ISE 5101 Fall, 2001

2. Objectives To enhance the understanding of critical technical competencies in project management. To understand the critical dimensions of project scope, time and cost management. To enhance understanding of project management, important project manager roles and responsibilities, and keys to project success. To build skills in working with the project management process. To increase understanding of modern tools and techniques. To apply the concepts and techniques.

3. 3 RESOURCES Textbooks Lewis, James P. 2000. Project Planning, Scheduling & Control, 3 rd ed. McGraw ‑ Hill; ISBN: 0071360506 Scholtes, Peter R. 1998. The leader’s handbook. New York: McGraw-Hill. Smith, Karl A. 2000. Project Management & Teamwork (B.E.S.T. Series). McGraw ‑ Hill Higher Education; ISBN: 0070122962 PMI Standards Committee. 1996. A guide to the project management body of knowledge. Upper Darby, PA: Project Management Institute (http://www.pmi.org) (Supplemental. Available in PDF format from PMI web site or from www.ce.umn.edu/~smith) Computer Software CritPath for Windows. Available from Karl Smith or download from www.ce.umn.edu/~smith.

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5. 5 Why project management? “Those organizations that take project management seriously as a discipline, as a way of life, are likely to make it into the 21st century. Those that do not are likely to find themselves in good company with dinosaurs.” –Tom Peters

6. ... Tomorrow ’ s corporation is a > collection of projects ’... Everyone needs to learn to work in teams with multiple independent experts--each will be dependent upon all the others voluntarily giving their best....The new lead actor/boss--the Project Manager- -must learn to command and coach; that is, to deal with paradox. From C Eight Commandments for Project Managers C Tom Peters

7. 7 The Emerging Role of Project Management – William M. Hayden Deming –Appreciation for a system –Knowledge about variation –Theory of knowledge –Psychology of individuals and groups PMBOK PMOS – Project Management Operating System

8. 8 Top Three Main Engineering Work Activities (Burton, Parker & LeBold, 1998) Engineering Total Design – 36% Computer applications – 31% Management – 29% Civil/Architectural 1.Management – 45% 2.Design – 39% 3.Computer applications – 20% Burton, L., Parker, L, & LeBold, W. 1998. U.S. engineering career trends. ASEE Prism, 7(9), 18-21.

9. 9 Project Management (Haynes, 1989) Project management focuses on a project. A project is an undertaking, that has a beginning and an end, and is carried out to meet established goals within cost, schedule and quality objectives. Project management brings together and optimizes the resources necessary to successfully complete the project. These resources include the skills, talents, and cooperative efforts of a team of people; facilities, tools and equipment; information, systems and techniques; and money.

10. 10 Project Management is not just scheduling (Lewis, p. 8) It’s the intersection of: Tools People Systems

11. 11 Fundamental tools for the new generation of engineers and project managers…. Systems/ systems thinking/ systems engineering Models Team work Quality

12. 12 What is a system? A system is a network of interdependent components that work together to try to accomplish the aim of the system ( W. Edwards Deming. 1993. The new economics for industry, government, education. Cambridge, MA: MIT Center for Advanced Engineering Study) A system is a perceived whole whose elements "hang together" because they continually affect each other over time and operate toward a common purpose. The word descends from the Greek verb sunistánai, which originally meant “to cause to stand together.” As this origin suggests, the structure of a system includes the quality of perception with which you, the observer, cause it to stand together. Examples of systems include biological organisms (including human bodies), the atmosphere, diseases, ecological niches, factories, chemical reactions, political entities, communities. industries, families, teams -- and all organizations. You and your work are probably elements of dozens of different systems. (Art Kleiner) Excerpted from The Fifth Discipline Fieldbook. Copyright 1994 by Peter M. Senge, Art Kleiner, Charlotte Roberts, Richard B. Ross, and Bryan J. Smith. http://www.solonline.org/solonline/About_SoL/structure.html (Accessed 9/6/00)

13. 13 Systems Approach (Churchman, C. West. 1968. The systems approach. New York: Laurel) Systems are made up of sets of components that work together for the overall objective of the whole. The systems approach is simply a way of thinking about these total systems and their components. Five basic considerations must be kept in mind when thinking about the meaning of a system: (1) the total systems objectives and the performance measures of the whole system, (2) the system’s environment; the fixed constraints, (3) the resources of the system; (4) the components of the system, their activities, goals and measures of performance; and (5) the management of the system.

14. 14 Art & Practice of the Learning Organization 1. Building Shared Vision. The idea of building shared vision stresses that you never quite finish it--it's an ongoing process. 2. Personal Mastery. Learning organizations must be fully committed to the development of each individual's personal mastery--each individual's capacity to create their life the way they truly want. 3. Mental Models. Our vision of current reality has everything to do with the third discipline--mental models--because what we really have in our lives is constructions, internal pictures that we continually use of interpret and make sense out of the world. 4. Team Learning. Individual learning, no matter how wonderful it is or how great it makes us feel, if fundamentally irrelevant to organizations, because virtually all important decisions occur in groups. The learning unit of organizations are "teams," groups of people who need one another to act. 5. Systems Thinking. The last discipline, the one that ties them all together, is systems thinking. Senge (In Ray & Rinzler, 1993)

15. 15 Systems Thinking Systems thinking is a discipline for seeing wholes. It is a framework for seeing interrelationships rather than things, for seeing patterns of change rather than static "snapshots." It is a set of principles and a set of specific tools and techniques. (Senge, 1990) Senge, Peter. 1990. The fifth discipline: The art and practice of the learning organization. New York: Doubleday.

16. 16 Engineering Business, government, academic, or individual efforts in which knowledge of mathematics and/or natural science is employed in research, development, design, manufacturing, systems engineering, or technical operations with the objective of creating and/or delivering systems, products, processes, and/or services of a technical nature and content intended for use – National Research Council A scientist discovers that which exists. An engineer creates that which never was -- Theodore von Kármán (1881-1963)

17. Evolution of Models of Project Management Central Concept Era of Model Dominant Project Characteristics Main Thrust Metaphor Means Scheduling (Control) 1960s Simple, Certain Coordinating activities Scheduling regional flights in an airline Information technology, Planning specialists Teamwork (Integration) 1970s Complex, Certain Cooperation between participants Conducting a symphony orchestra Process facilitation, Definition or roles Reducing Uncertainty (Flexibility) 1980s Complex, Uncertain Making stable decisions Exploring an unknown country Search for information, Selective redundancy Simultaneity (Dynamism) 1990s Complex, Uncertain, Quick Orchestrating contending demands Directing a three-ring circus with continuous program modification based on live audience feedback Experience, responsiveness and adaptability

18. Era of Model 2000s Central Concept? Dominant Project Characteristics? Main Thrust? Metaphor? Means? Discuss in your group.

19. 19 The Age of Project Management (Pinto and Kharbanda, 1995) 1. Shortened market windows and product life cycles. 2. Rapid development of third world and closed economies. 3. Increasingly complex and technical products. 4. Heightened international competition. 5. The environment of organizational resource scarcity.

20. 20 Minute Paper – Reflection 1. Most interesting, valuable, useful thing you learned. 2. Question you would like to have addressed. 3. Contract you’re working toward

21. Organizational Models PMBOK (www.pmi.org) Functional Project Matrix Balanced Composite

22. Criteria for Selecting an Organizational Structure 1.Technology 2.Finance and accounting 3.Communication 4.Responsibility to a project/product 5.Coordination 6.Customer relations

23. 23 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

24. 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.

25. Predictors of Lowered Project Success William M. Hayden Unrealistic project work plans Inability to deal early with suspected problem issues Technical complexities not well communicated to team members Conflict between client expectations and the state of deliverables Insufficient involvement on the part of senior management early in the life cycle

26. 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.

27. 27 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

28. Project Success: Quadruple Constraint

29. 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).

30. www.lewisinstitute.com

31. 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. 1997. Project Management Memory Jogger. GOAL/QPC.

32. 32 charterform.pdf

33. 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

34. 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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37. Brief Report Option -- 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

38. Bus Shelter Construction Example Job Name Duration Resources Predecessor(s) 1 Shelter Slab 2 25 2 Shelter Walls 111 3 Shelter Roof 2 2 2,4 4 Roof Beam 3 22 5 Excavation 2 3 6 Curb and Gutter 235 7 Shelter Seat 12 4,6 8 Paint 1 17 9 Signwork 12 2,6 Scheduling Problem - CPM

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41. 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 22 242 400 2 YES 2 Shelter Walls 114 5 45004 YES 3 Shelter Roof 22 8 10 8 00 8 YES 4 Roof Beam 3 25 8 580 0 5 YES 5 Excavation 2 30 2 020 0 0 YES 6 Curb and Gutter 2 32 4 684 1 2 NO 7 Shelter Seat 12 898 900 8 YES 8 Paint 11 9 10 9 00 9 YES 9 Signwork 12 569 10 44 5 NO

42. 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.

43. 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

44. 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

45. 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

46. 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