Chapter 1: Introduction

Project Management Summer 2014/2015

Dr. Nouh Alhindawi

Department of Software Engineering Jordan University of Science and Technology

The project (30%)(Due last day of week 5, presentation starts at week 6,

maximum 4 students per project)

• Reports: (5%) Two reports the first due at end of week 4 the other end of week 8, 3-5 pages each report, done by each

student individually (Meeting minutes, who is doing what, how the project evolving, an appraisal of the team)

• Project document includes: (10%) - mission and scope - Statement Of Work - Project charter - Work Breakdown Schedule - GANTT chart - standards followed

• Technical documentation: (5%) - SDLC document• Presentation: (5%) - problems you face and how you solve it - success factors - Failure factors - lessons learned• Implementation: (5%) - scenarios you implement

Once upon a time...

Once upon a time there was a company with four employees, named Everyone, Someone, Anybody and Nobody. One day it became necessary to complete an

important task. Everyone was sure that Someone will do it. Anybody could do it, but Nobody did not do it. Someone got angry

because it was work for Everyone. Everyone thought that Anybody could do it but Nobody realized that Everyone will not do it. In the end, Everyone blamed Someone that Nobody did not do what Anybody could do.

Managers and Leaders

• Managers are people who do things right.

• Leaders are people who do the right thing.

• The difference may be summarized as activities of vision and judgment versus activities of mastering routines. 

More about mangers and leaders

• · The manager administers; the leader innovates.• · The manager is a copy; the leader is an original.• · The manager maintains; the leader develops.• · The manager accepts reality; the leader investigates it.• · The manager focuses on systems and structure; the leader focuses on people.• · The manager relies on control; the leader inspires trust.• · The manager has a short-range view; the leader has a long-range

perspective.• · The manager asks how and when; the leader asks what and why.• · The manager has his or her eye always on the bottom line; the leader has his

or her eye on the horizon.• The manager imitates; the leader originates.• · The manager accepts the status quo; the leader challenges it.• · The manager is the classic good soldier; the leader is his or her own person.• · The manager does things right; the leader does the right thing.

More about mangers and leaders

• position A person becomes a manager by his position. A person becomes a leader on basis of his personal qualities.

• Followers The subordinates are the followers of managers. The group of employees whom the leaders leads are his followers.

• Necessity A manager is very essential to a concern. A leader is required to create friendly and warm relation between person working in and for organization.

• Functions A manager performs all five functions of management. Leader influences people to work willingly for group objectives. (Planning, staffing, Organizing, Directing/Leading, Controlling)

• Stability It is more stable. Leadership is temporary. • Accountability Manager is accountable for self and subordinates behavior and

performance. Leaders have no well defined accountability. • Followers People follow manager by virtue of job description. People follow them

on voluntary basis. • Role continuation A manager can continue in office till he performs his duties

satisfactorily in correspondence with organizational goals. A leader can maintain his position only through day to day wishes of followers.

Five functions of Management• Planning, It is the basic function of management. “Planning is deciding in advance - what

to do, when to do & how to do. It bridges the gap from where we are & where we want to be”. A plan is a future course of actions. It is an exercise in problem solving & decision making.

• Staffing, It is the function of manning the organization structure and keeping it manned. Manpower, training….

• Organizing: It is the process of bringing together physical, financial and human resources and developing productive relationship amongst them for achievement of organizational goals. According to Henry Fayol, “To organize a business is to provide it with everything useful or its functioning i.e. raw material, tools, capital and personnel’s”.

• Directing, Supervision, Motivation, Leadership, Communication

• Controlling, The purpose of controlling is to ensure that everything occurs in conformities with the standards. An efficient system of control helps to predict deviations before they actually occur. According to Theo Haimann, “Controlling is the process of checking whether or not proper progress is being made towards the objectives and goals and acting if necessary, to correct any deviation”. Therefore controlling has following steps:

– Establishment of standard performance.– Measurement of actual performance.– Comparison of actual performance with the standards and finding out deviation if any.– Corrective action.

Quotes…• Remember the difference between a boss and a leader; a boss says "Go!" - a leader says "Let's go!" 

• A chief is a man who assumes responsibility.  He says "I was beaten," he does not say "My men were beaten.“

  • A leader leads by example, whether he intends to or not.

• "Leadership is the art of getting someone else to do something you want done because he wants to do it."

•   Leadership is action, not position.

•   You don't have to hold a position in order to be a leader. 

• Example is not the main thing in influencing others.  It is the only thing. 

Leaders don't create followers, they create more leaders. 

Why Project Management?

• Better control of financial, physical, and human resources

• Improved customer relations• Shorter development times• Lower costs• Higher quality and increased reliability• Higher profit margins• Improved productivity• Better internal coordination• Higher worker morale

Standish Group….

Project Attribute 1994 Statistics

2004 Statistics

Cancelled before completion

31% 23%

Missed deadline, over budget

88% 51%

Average cost overrun

189% 45%

schedule overrun 223% 65%

Latest Report of Standish Group • Recession-related IT budget slashing and layoffs are taking their toll on IT project

success rates, according to the results of the latest CHAOS Summary 2009 report from The Standish Group

• The Boston, Mass.-based IT project management research and consulting firm surveyed 400 organizations and found a decrease in IT project success rates and an increase in IT Project Failure rates during the past two years. Specifically:

- 32 percent of IT projects were considered successful, having been completed on time, on budget and with the required features and functions. Nearly one-in-four

- 24 percent IT projects were considered failures, having been cancelled before they were completed, or having been delivered but never used.

- The rest (44 percent) were considered challenged: They were finished late, over budget, or with fewer than the required features and functions.

Project Fails for many different reasons…

• Other project take precedence• Team members loose sight of the purpose• Project managers try to do the work rather than lead the

teamAt the root is a fundamental problem: VISION. • Vision in project management terms, is the ability to

clearly see intangible and recognize the actions required to get there…

• One of your jobs, as PM, is to develop, nurse, and transfer the vision to everyone on your team.

Quotes in Vision

• People only see what they are prepared to see.

• Vision is the art of seeing what is invisible to others.

• Vision without action is a dream. Action without vision is simply passing the time. Action with vision is making a positive difference.

• There are always flowers for those who want to see them.

• It's easy to see, hard to foresee.

Vision

• Is an attractive, ideal future that is credible yet not readily attainable, the dream of what it wants to become, where the organization needs to be headed.

• It represent a dream that can come true: - Is easily understood by all stakeholders - Is briefly stated, yet clear and comprehensive - Is challenging, yet attainable - Is lofty, yet tangible - Stir excitement, create unity of purpose - Is not concerned with numbers

Sample of visions• Heinz vision, is to be "THE WORLD'S PREMIER (best) FOOD COMPANY, OFFERING

NUTRITIOUS, SUPERIOR TASTING FOODS TO PEOPLE EVERYWHERE.“• Nike, 1960s: Crush Adidas Current: To be the number one athletic company in the world• HONDA vision is to Be a Company that Our Shareholders, Customers and Society Want.• Kraft Foods, Our Vision is Helping People Around the World Eat and Live Better.• Mazda established a new corporate vision in December 1999, comprised of: - Vision: To create new value, excite and delight our customers through the best automotive products and services. - Mission: With passion, pride and speed, we actively communicate with our customers to deliver insightful automotive products and services that exceed their expectations. - Value: We value integrity, customer focus, creativity, and efficient and nimble actions and respect highly motivated people and team spirit. We positively support environmental matters, safety and society.

Mission• A broadly stated definition of the organization’s basic business scope and

operations that distinguishes it from similar types of organizations.

• The mission takes the next step (after vision) and describes WHO the organization is, WHAT it does, and WHERE it is going.

• Is a brief description of a company's fundamental purpose. It answers the question, "Why do we exist?

• When writing mission, be brief, but comprehensive, choose wording that is simple, easy to understand, and descriptive

• Avoid HOW statements, how the mission will be accomplished is described in the “strategies” section in the plan

• Microsoft mission “ To enable people and business throughout the world to realize their full potential”

Management is needed in ALL:

• Sizes of organization

• Types of organizations

• Organization levels

• Organization areas

• An organization is a deliberate arrangement of people to accomplish some specific purpose.

Things (sayings) to think about…..Golden Rules

• “If you can not measure it, you can not manage it”

• “Do unto others as you would have them do unto you”

• “Don’t ever take a fence down until you know the reason why it was put up”

• “Similar problems have similar (not same) solutions.”

Management approaches

• Traditional culture, managers think and employee do what they are told, the role of the manager in a traditional management model is to solve problems at the top level

• Quality culture, managers are coaches of the team they do: - communicate the vision, mission, and goals - Provide resources - Remove barriers - Seek employee input and feedback - Build trust - Provide training - Reward and recognize performance

Denver International Airport(example of project failure)

• Designed as largest US airport• Denver International Airport Baggage System. It ran over

budget by almost 30%, with an actual cost of $250M vs. $195M planned, and completion was delayed 18 months.

• Cost

– Estimate $1.7 billion (to be done Oct 1993)– Pre-construction budget $2.08 billion– Aug 1994 spent $3.2 billion– Final 16 months late, $2 billion over budget

What is a project?• It is a group of individuals who are assembled to perform different tasks on a common set of

objectives for a defined period of time

• How is it different from “work”?– A project is “a temporary endeavor (attempt) undertaken to accomplish a unique product,

service, or result”– (PMBOK® Guide 2009, p. 4

• A project is a temporary effort to create a unique product or service. Projects usually include constraints and risks regarding cost, schedule or performance outcome.

• Attributes of projects– Unique, despite the presence of repetitive elements within it.– Temporary, definite beginning and end, does not apply to the product or service of the

project.– require resources, often from various areas– should have a primary sponsor and/or customer– involve uncertainty

Software project versus others

• Invisibility, progress in software project is not immediately visible.

• Complexity.

• Conformity, software system has to conform to the requirement of human (inconsistent) clients.

• Flexibility, one strength of software is its flexible and easy to change.

Categories of Software projects

• Information system project, system interface with organization, registration system.

• Embedded system (process control), system interface with a machine, control the air conditioning equipment in a building.

Project management and operation management

• Similarities are, consume resources, constrained, planned , executed, uncertainty, Consist of activities, Predecessor relationships and controlled.

• Differences, projects are temporary and unique, operations are repetitive and ongoing.

Project and operation

• Opening new branch in city center is a project• Daily weather forecast is an operation.• Soccer team daily training sessions is an operation.• Installing a pool in your backyard is a project • Room service at a hotel is an operation• Soccer team qualifying for world champion ship cup

is a project. • Cutting your grass is considered operation 

Group Size

individual term papergroup wedding

system implementationorganization auditing

plant constructionmulti-organization space shuttle

wars

What is Project Management?

Project management is “the application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements”

(PMI, Project Management Body of Knowledge , 2009, p. 6)

• Project Management is the discipline of planning, organizing, motivating, and controlling resources to achieve specific goals

• Project management is a methodical approach to planning and guiding project processes from start to finish.

PM at it’s Most Basic…• Key project management responsibilities include - creating clear and attainable project objectives, - building project requirements - managing the triple constraint for projects, which is cost, time, and scope• The Triple Constraint

• The scope constraint refers to what must be done to produce the project's end result

• The time constraint refers to the amount of time available to complete a project?

• The cost constraint refers to the budgeted amount available for the project• It is the project manager’s duty to balance these three often competing goals

What to do if we have lot ofprojects?

• Are they independent?• If they have common goal >> Program• If not?• What causes their mutual dependence?• How to manage this situation?• Portfolio = a means for management of a collection of Projects and/or Programs.

Program and Portfolio

• A program is a group of related projects managed together to obtain specific  benefits and controls that would likely not occur if these projects were managed individually. The Program Manager will be responsible for the rolling up of information from each of the projects and ensuring the overall program is driving towards achieving the business objectives.

• A portfolio is a collection of projects or programs grouped together to facilitate effective management of efforts to meet strategic business objectives. The Portfolio Manager  will become very  involved in the front end activities of identifying, prioritizing and initiating projects and programs.

Portfolio, program, project, and sub project

• All project done by a company is a portfolio

• Construction projects done by same company is a program.

• Development of a subdivision contains 500 houses is a project.

• Construction of a house in the subdivision is a sub project.

Quotes• The sooner you begin coding the later you finish.

• What is not on paper has not been said.

• If you don’t know where you’re going, any road will take you there.

• If you fail to plan you are planning to fail.

• If you don't attack the risks, the risks will attack you.

PM Tools and Techniques

• Assist project managers and their teams in various aspects of project management

• Some specific ones include– Project Charter, scope statement, and WBS (scope)– Gantt charts, network diagrams, critical path

analysis, critical chain scheduling (time)– Cost estimates and earned value management

(cost)

Project Charter It is similar to the goal, but more official, more detailed, and in line with

vision and goals of the company. In most companies a project charter is the foundation for success, it accomplishes the following:

-The Project Charter describes the project vision, objectives, scope, organization and implementation plan

• Authorizes the project• Define the business need• Identify the sponsor of the project• Identify the project manager, makes him accountable for the project.• Assigns authority to the project manager on behalf of the project sponsor

How to create a Project Charter

Step 1: Identify the Project Vision• Vision: The first step taken when defining a Project Charter is to identify

the project vision. The vision encapsulates the purpose of the project and is the defined end goal for the project team.

• Objectives: Then based on the vision, list three to five objectives to be achieved by the project. Each objective should be Specific, Measurable, Achievable, Realistic and Time-bound (SMART).

• Scope: With a clear view of the Vision and Objectives of the project, it’s time to define the project scope. The scope defines the formal boundaries of the project by describing how the business will be changed or altered by the project delivery.

• Deliverables: Then  you need to describe each of the deliverables that the project will produce.

How to create a Project Charter

Step 2: Describe the Project Organization• The next step is to identify how the project will be structured by listing the

customers, stakeholders, roles, responsibilities and reporting lines.• Customers: First, identify the project customers. A customer is a person or entity

that is responsible for accepting the deliverables when the project is complete.• Stakeholders: Then identify the project stakeholders. A stakeholder is a person or

entity within or outside of the project with a specific key interest or stake in the project. For example, a Financial Controller will be interested in the cost of the project, and a CEO will be interested in whether the project helps to achieve the company vision.

• Roles: Now list the key roles involved in delivering the project. Examples of roles include the Project Sponsor, Project Board and Project Manager. Then summarize each of the primary responsibilities of each role identified.

• Structure: Once you have a clear view of the roles needed to undertake the project, you can depict the reporting lines between those roles within a Project Organization Chart.

How to create a Project Charter

Step 3: Plan the Approach to Implementation, You now have a solid definition of what the project needs to achieve and how it will be organized to achieve it. The next step is to describe the implementation approach as follows:

• Implementation Plan: To provide the Customer and Stakeholders with confidence that the project implementation has been well thought through, create an Implementation Plan listing the phases, activities and timeframes involved in undertaking the project.

• Milestones: In addition, list any important milestones and describe why they are critical to the project. A milestone is typically an important project event, such as the achievement of a key deliverable.

• Dependencies: List any key dependencies and their criticality to the project. A dependency is defined as an activity that is likely to impact on the project during its life cycle.

• Resource Plan: Create plan which summarizes the resources involved in undertaking the project by listing the labor, equipment and materials needed. Then budget the financial resources needed.

How to create a Project Charter

Step 4: List the Risks and Issues• The final step taken to complete your Project Charter is to identify any project

risks, issues, assumptions and constraints related to the project.

• And that’s it. If you complete each of the steps above, then you will create a solid Project Charter for your project, helping you to manage scope and deliver consistently on time and within budget.

Project charter elements• Project name• Project sponsor name• Project manager name• Project team• Project purpose• Business case• Project result• Project resources• Project objectives (measurable with success criteria)• Requirement and description at high level• Risks at high level• Basic time line and Milestone schedule at a summary level• Budget at a summary level• Approval requirements

Management Styles

• Situational management, is a method whereby the current state of the organization determines what operational procedures will be implemented to achieve desired outcomes. Situational management emphasizes a very adaptive management style.

• Change management, is a systematic approach to dealing with change, both from the perspective of an organization and on the individual level.

To define Change Management, you could say that it is about managing this transition from the old position to the new one.

Change management has at least three different aspects, including: adapting to change, controlling change, and implementing change

So you’re gonnabe a Project Manager…

• Requisite Skills– Comfortable with change– Understand the organizations they work in – Able to lead teams to accomplish project goals– Need both “hard” and “soft” skills

• Hard skills - product knowledge, knowing the various PM tools and techniques

• Soft skills - being able to work with people

So you’re gonnabe a Project Manager…

• Suggested Skills…– Soft skills (expanded)

• Communication: listening, persuading

• Organizational: planning, goal-setting, analyzing

• Team Building: empathy (understanding), motivation.

• Leadership: set examples, be energetic, have vision (big picture), delegate, be positive

• Coping: flexibility, creativity, patience, persistence

• Technological: experience, project knowledge

Effective Project Manager requires:

• For a project manager to be effective he/she needs to be able to both manage and Lead .

• Manage: Knowledge in PM good practice. Tools, and techniques Plans – project, risk, contingency, assumptions, scope, change, communication, Resource Allocation, Time/schedule, Costs/budgets, Monitoring and Controlling, Coordinating, Directing, Conflict, Decision Making and Problem Solving

• Lead, Vision/goals, Team Building, Persuasion, Inspiration & Motivation, Communications, Counseling & Coaching, Instructing & Teaching, Mentoring & Guiding

Project manger power…

• Expert, authority comes from experience.

• Reward, authority to reward the team.

• Formal (legitimate), assigned by senior management.

• Coercive, (intimidation) has the authority to discipline members of the project team.

• Referent, referred by CEO and has some of the power of the person who assigned him.

Effective decision making

• Ability to negotiate and influence the organization and the project management team

• Guidelines: - focus on goals to be served

- follow a decision making process

- study the environment factors

- develop personal qualities

- simulate team creativity

- manage opportunity

Decision making process

• Define Problem: The problem here is which TV to buy

• Fact Collection: Collect all data related to the different TVs from different

showrooms • Solution Finding: narrow down the TV options. Consider your budget and your

needs • Select Solution: narrow down your choice to select any one.

• Implement Solution: Once you have decided on the TV, go ahead and buy it • Monitor Solution: See if the TV that you purchased is working for you.

Check if all the features that you selected work for you or no

Effective Project manger…

• Follow management, do the same they have done before you.• Delegation is necessary.• You are in charge, establish the flow of communication from

your team to you, not around you.• Remember the user.• Keep the big picture in mind.• Learn how to speak different languages, business speak,

techno-speak, speak appropriately to the audience you address.• Delegate, delegate, delegate…

Delegation

• “You can delegate authority, but you can never delegate responsibility for delegating a task to someone else.”

• Empowering other to act on your behalf.• Accountability remains with the manager as he still

responsible for success• Team member is accountable towards the manager.• Management function should not be delegated such as

appraisal, motivation, and reprimands.

Benefits of delegation are free your self for important work, team building, and skill development.

Presenting the project to Management

• Start at the end, tell them first what the proposed project will deliver, forgot the techno-language that only impresses geeks.

• Follow WIIFM Principle, What’s In It For Me.

• Tailor the presentation, get to the point.

PM phases….

Relationships Among PGs and Knowledge Areas

The Process group’s interactions (Topics of Project Management)

1- Project integration management, includes the process and activities needed to identify, define, combine, unify, and coordinate the various processes and PM activities.

2- project scope management, includes processes required to ensure that the project includes the work required, and only the work required to, complete the project successfully.

3- Project time management, includes the processes required to manage the timely completion of a project.

4- Project cost management, includes the processes involved in estimating, budgeting, and controlling cost so that the project can be completed within the approved budget.

5- Project quality management, includes the processes and activities of the performing organization that determine quality policies, objective and responsibilities so that that project will satisfy the needs for which it was undertaken

The Process group’s interactions (Topics of Project Management)

6- Project human resources, includes the processes that organize and mange project team.

7- Project communications management, includes the processes required to ensure timely appropriate generation, collection, distribution, storage, retrieval, and ultimate disposition of project information.

8- Project risk management, includes the processes concerned with conducting risk management planning, identification, analysis, responses, and monitoring and control on a project.

9- Project procurement management, includes the processes to purchase or acquire the product, services, or results needed from outside the project team to perform the work.

Quotes

• The most important thing in communication is hearing what isn't said. Peter F. Drucker

• The role of a writer is not to say what we all can say, but what we are unable to say.

• What is important is seldom urgent and what is urgent is seldom important. Dwight D. Eisenhower

• A work well begun is half ended

FoxMeyer Drug

Large drug distributor, wanted to implement ERP

ERP Market Share(SAP)

• Systems, Applications & Products in Data Processing

• founded 1972, Walldorf, Germany• #1 vendor of standard business-application software in the world - 32% market

share

• PRODUCTS: R/2 (mainframe; 11 modules)

R/3 (client/server - 1992; now > 1 million users

• over 9000 customers in 90 countries

FoxMeyer Corp

• Statistics: Public Company Incorporated: 1977 Employees: 4,097 Sales: $5.17 billion (1995) Stock Exchanges: New York 

• Holding company in health care services• wholesale distribution of drugs & beauty aids

• served drug stores, chains, hospitals, care facilities• US: 23 distribution centers

FoxMeyer• Due to aging population & growth in health care, expected high

growth• Market had extreme price competition, threatening margins• Long-term strategies:

– efficiently manage inventory– lower operating expenses– strengthen sales & marketing– expand services

• 3 data processing centers, linked• included electronic order entry, invoice preparation, inventory tracking• 1992 began migration of core systems• Benefits not realized until system fully integrated

New System• Needed new distribution processes & IS to capitalize on growth• Wanted to be able to undercut competitors• Replacing aging IS key• PROJECT: 1994 - hoped to save $40 million annually (estimated cost $65

million)– complete ERP installation & warehouse automation system (another $18

million)• Select ERP

– hundreds of thousands of transactions– meet DEA & FDA regulations– benchmarked & tested for months– picked SAP R/3– hired Andersen Consulting to integrate– hired Pinnacle Automation for warehouse automation system

Operations

• FoxMeyer expected the new systems to improve operational efficiency

• Signed several giant contracts– counted on savings, underbid competitors

• Counted on being up and running in 18 months

Project risks

• The FoxMeyer Corporation Delta III project had the following project risks:

- Environmental- the management had little or no control. - Execution- the project lacked skilled and knowledgeable personnel.  - Scope- FoxMeyer was an early adopter of SAP R/3. After the project began, FoxMeyer signed a large contract. - customer mandate – the commitment from the top management and users. This was not the case for some of the senior management. - SAP & warehouse automation system integration, two sources, two installers - coordination problems - New contracts forced change in system requirements after testing & development underway• Late, Over budget

– SAP successfully implemented

Outcomes• Lost key customer - 15% of sales• To recoup, signed new customer, expected $40 million benefit from

ERP immediately - pushed ERP project deadline ahead 90 days, no time to reengineer

• Warehouse system consistently failed– late orders, incorrect shipment, lost shipments– losses of over $15 million

• August 1996 filed for Chapter 11• McKesson Bought FoxMeyer operation• Made ERP work

– On time– Within budget– Full functionality

Project Critical Success FactorsBelassi & Tukel [1996]

• Goal Definition– Define goals, scope, requirements

• Top Management Support– Continued involvement

• User Involvement• Project Manager

– Competent; on-site

• Others– Project team, manpower, accurate estimates, test & train– see table 1-2 on page 11 for more.

Executive Summary… Knowledge AND skills (and attitude(

Thanks!

Summary

• All projects are complex– IS projects even more so– Get diverse people to work together

• Time• Cost• Functionality

• Systems view helps understand projects• Critical Success Factors

• Top management support• Clearly stated objectives• End user involvement