1. Engineering Economics Lecture 18 Project Management 6 January 2010

2. What is a project? A Project is a temporary endeavor undertaken to create a unique product or service. – Temporary – Unique

3. A project is a sequence of unique, complex, and connected activities having one goal or purpose and that must be completed by a specific time, within budget, and according to specifications. A project is a sequence of unique, complex, and connected activities having one goal or purpose and that must be completed by a specific time, within budget, and according to specifications. What is a Project?

4. Project characteristics Endeavors of any size may be a project – Large and small projects demand different handling Temporary – Distinguishes projects from operations Unique – Not the same old thing

6. What is Project Management? a method for organizing tasks a structured framework to help a group work productively tools to aid in task sequencing, dependency analysis, resource allocation, scheduling, etc. tools to track progress relative to plan

7. Project management is a set of principles and tools forProject management is a set of principles and tools for –Defining –Planning –Executing –Controlling... and –Completing a PROJECT What is Project Management?

8. Projects are oriented towards a goal.Projects are oriented towards a goal. There is something unique about every project.There is something unique about every project. Projects have a finite duration.Projects have a finite duration. Projects require coordination of interrelated activities.Projects require coordination of interrelated activities. Project Management Criteria

9. Why Need Project Management? 1. Multiple people 2. Multiple resources (labs, equipment, etc.) 3. Multiple tasks – some must precede others 4. Multiple decision points – approvals 5. Phased expenditure of funds 6. Matching of people/resources to tasks

10. Why Projects Fail 1. Failure to align project with organizational objectives 2. Poor scope 3. Unrealistic expectations 4. Lack of executive sponsorship 5. Lack of project management 6. Inability to move beyond individual and personality conflicts 7. Politics

11. Why Projects Succeed! 1. Project Sponsorship at executive level 2. Good project charter 3. Strong project management 4. The right mix of team players 5. Good decision making structure 6. Good communication 7. Team members are working toward common goals

12. Laws of Project Management No major project is ever on time, within budget, Yours will not be the first. No major project is ever on time, within budget, Yours will not be the first. Projects progress quickly until they become 90% complete, then they remain at 90% complete forever. Projects progress quickly until they become 90% complete, then they remain at 90% complete forever. When things are going well, something will go wrong. When things are going well, something will go wrong. When things just cannot get any worse, they will. When things just cannot get any worse, they will.

13. Laws of Project Management When things appear to be going better, you have overlooked something. When things appear to be going better, you have overlooked something. No system is ever completely debugged. Attempts to debug a system inevitably introduce new bugs that are even harder to find. No system is ever completely debugged. Attempts to debug a system inevitably introduce new bugs that are even harder to find. A carelessly planned project will take three times longer to complete than expected A carelessly planned project will take three times longer to complete than expected A carefully planned project will take only twice as long. A carefully planned project will take only twice as long. Project teams refuse progress reporting because it manifests their lack of progress. Project teams refuse progress reporting because it manifests their lack of progress.

14. Core Project Management Tools Project Charter Project Charter Work Breakdown Structure (WBS) Work Breakdown Structure (WBS) Project Schedule Project Schedule Project Budget Project Budget

15. Project Charter What must be done? What must be done? – What are the required resources? – What are the constraints? – What are the short and long term implications? Why do it? Why do it? When must it be done? When must it be done? Where must it be done? Where must it be done? Who does what? Who does what? – Who is behind the project? – Who is funding the project? – Who is performing the work of the project?

16. Project Charter Who What Where Why When

17. Project Charter Project Goal & Objective Sponsor Stakeholders Timeline Resources required Deliverables

18. Organize your approach Generate a credible schedule Track progress and control your project Identify where to focus your efforts Identify problems early – before they are crises Saves you TIME….MONEY Why is Project Management Important?

19. Five Phases of Project Management Scoping the Project Developing the Plan Scoping the Project Launching the Plan Monitoring & Controlling Closing Out the Project

20. Suggested Steps in Project Management 1. Generate a definition of project, goals, constraints 2. Identify project start/end dates, mandatory milestones. 3. List constraints – money, equipment, holidays, etc. 4. Identify tasks to be accomplished 5. Refine detailed task list, dropping/ combining, 6. Estimate time (person hours, calendar period) 7. Identify resources (people, money, parts, etc.) 8. Monitor, record progress at least weekly 9. Revise plan as needed to take into account changes

21. Proposal writing. Project planning and scheduling. Project costing. Project monitoring and reviews. Personnel selection and evaluation. Report writing and presentations. Management activities

22. Project Planning: Resources People - skills and value Facilities Equipment Money Materials Time

23. The project plan The project plan sets out: – The resources available to the project; – The work breakdown; – A schedule for the work.

24. PROJECT PLAN STRUCTURE 1. Introduction. 2. Project organisation. 3. Risk analysis. 4. Hardware and software resource requirements. 5. Work breakdown. 6. Project schedule. 7. Monitoring and reporting mechanisms.

25. Planning the Project: Work Breakdown Structure (WBS) A WBS is the functional decomposition of a systemA WBS is the functional decomposition of a system Breaks the project into chunks of work at a level of detail that meets planning and scheduling needsBreaks the project into chunks of work at a level of detail that meets planning and scheduling needs

26. Project scheduling 1. Split project into tasks and estimate time and resources required to complete each task. 2. Organize tasks concurrently to make optimal use of workforce. 3. Minimize task dependencies to avoid delays caused by one task waiting for another to complete. 4. Dependent on project managers intuition and experience.

27. End