introduction prepared by john nicholas, ph.d. loyola university chicago project management for...
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Introduction
Prepared byJohn Nicholas, Ph.D.
Loyola University Chicago
Project Management for Business, Engineering, and Technology
IENG 466/566
Session One – 24 Jan 2011
• Introduction to the Course
• Introduction to Project Management
• Project Management Philosophy
• Systems Approach
Great Pyriamid of Cheops (2,500 B.C.)
2,300,000 Stone Blocks
40 Stories
Accuracy of 0.04 inch
13 acres level within 1 inch
100,000 laborers 40,000 skilled masons
150,000 women & children
Evidence of projects is everywhere…
From: blog.lib.umn.edu/muwah005/architecture/
From: www.educ.uvic.ca/.../438/CHINA/CHINA-WALL.HTML
…and in the news. Recent examples:
• Millennium Park, Chicago– Ground breaking targets, 1998:
• Total cost: $150 million• Gehry band shell: $10.8 million• Completion: 2000 (millennium!)
– Actual• Total Cost: $475 million• Gehry band shell: $60.3 million• Completion date: Summer 2004
Recent examples
• Boston Big Dig– Cost estimate for total project:
Circa 1989, seeking federal funding $ 2.5B
– 1991, ground-breaking $ 5 B– 1997
$10.8 B – Summer 2004, 92% complete $14.6 B
– Projected at completion $ 20 B??
From: www.cegltd.com/story.asp?story=8751&headline=...
From: www.roadtraffic-technology.com/.../big_dig1.html
Performance of IT Projects
• 2003 “Chaos” Report, Standish Consulting Group– Major IT projects that fail, 66%– Average cost overrun, 43%– Projects with schedule overrun, 82%– Required features/functions not included in
released system, 48%
Performance (cont’d)
• Criteria for Project “Failure” or “Overrun”– >20% over budget, and– >20% late, and– >20% of business requirements not met
Why Do Projects Fail or Suffer Overruns?
• Typical reasons – Weather– Inadequate requirements definition– Insufficient resources– Changing priorities of customer or management – Intractable technical problems – Resistance from stakeholders– Wrong project for the stated needs– Inadequate tracking and control– Inexperienced project manager and/or team
Project Failure, Sources and Solutions
Internal to Project External to Project
Reasons Organizational Environmental
Poor definition Inadequate resources Weather
Poor tracking Changing priorities Competitors
Technical barriers Wrong project Legal barriers
Project Failure, Sources and Solutions
Internal to Project External to Project
Reasons Organizational Environmental
Poor definition Inadequate resources Weather
Poor tracking Changing priorities Competitors
Technical barriers Wrong project Legal barriers
Possible Solutions:
Planning / control Portfolio mgt Stakeholder mgt
Risk mgt Risk mgt Risk mgt
PMO
PROJECT MANAGEMENT!
What’s a “Project?”
• Goal-oriented– Aims at a specific end result or deliverables
• Somewhat unique– Non-routine
• Time- and resource-constrained– Temporary; has target completion date and
target cost
What’s a “Project?” (cont’d)
• Cross-functional– Cross-disciplinary– Cross-organizational
• Somewhat unfamiliar and risky– Involves something new or different
• Something is at stake• Follows logical sequence or progression of phases or
stages
From: history.sandiego.edu/gen/WW2Index/picindex5.html
Mulberry harbor example
What is “Project Management?” Simple Definition
• Management to accomplish project goals.
What is “Project Management?” Longer Definition
Management to • Define and execute everything necessary
to complete a complex system of tasks• Achieve project end results that might be
unique and unfamiliar • Do it
– by target completion date– with constrained resources – with an organization that is cross-functional
and newly-formed
Project Goals
Cost
Time
Perfo
rman
ce
Ref: M. Rosenau, Successful Project Management, LL Pubs., 1981
Key Elements of Project Management:
Project Team
Project MethodologyProject
Manager
PMBOK, Nine Areas of Knowledge
• Project Integration Management• Project Scope Management• Project Time Management • Project Cost Management• Project Quality Management• Project Human Resource Management• Project Communications Management• Project Risk Management• Project Procurement Management
Book chapters
PMBOK Knowledge Areas
Key: P = PMBOK Knowledge Area is a major focus of this chapter * = PMBOK Knowledge Area is addressed in this chapter
Introduction
Project Life
Cycle and
Organization
Project Manage
ment Process
Project Integrat
ion Management
Project Scope
Management
Project Time
Management
Project Cost
Management
Project Quality Management
Project Human Resour
ce Management
Project Communicatio
ns Management
:Project Risk
Management
Project Procurement Management
Introduction P * *
Chapter 1; What is Project Management? P *
Chapter 2: The Systems Approach and Systems Engineering * * *
Chapter 3: System Development Cycle and Project and Conception P * * * P
Chapter 4 Project and System Definition * P
Chapter 5: Planning Fundamentals * * * P * P
Chapter 6: Time Planning and Project Networks * * P
Chapter 7: Advanced Time Planning * P *
Chapter 8: Cost Estimating and Budgeting * P *
Chapter 9: Project Quality Management * P
Chapter 10: Project Risk Management * P
Chapter 11: Project Execution and Control * * P *
Chapter 12: Project Evaluation, Communication, and Closeout * * P *
Chapter 13: Project Organizations: Differentiation and Integration * P *
Chapter 14: Project Roles, Responsibilities, Authority * * *
Chapter 15: Project Leadership and Teamwork * * P
Chapter 16: Managing Project Management * *
Chapter 17: Project Selection and Portfolio Management * * * *
Chapter 18: International Project Management * * * * * * * * *
Management Functions
Planning
Control
Leadership
Organizing Purpose or Goal
Change
Characteristics of Projects
• Goal-oriented– Aims at a specific end result or deliverables
• Somewhat unique– Non-routine
• Time- and resource-constrained– Temporary; has target completion date and target cost
Characteristics of Projects
Cross-functional Cross-disciplinary Cross-organizational
Somewhat unfamiliar and risky Involves something new or different
Something is at stake Follows logical sequence or progression of phases or
stages
What is “Project Management?” Simple Definition
• Management to accomplish project goals.
What is “Project Management?” Longer Definition
Management to • Define and execute everything necessary to
complete a complex system of tasks• Achieve project end results that might be
unique and unfamiliar • And do it
– by target completion date– with constrained resources – with an organization that is cross-functional
and newly-formed
Characteristics of Projects1. A single person, the project manager, heads the
project organization. The project organization reflects the cross-functional, goal-oriented, temporary nature of the project.
2. The project manager is the person who brings together all efforts to meet project objectives.
3. Project requires a variety of skills and resources, and is performed by people from different functional areas or by outside contractors.
4. The project manager integrates people from different areas and disciplines in the project.
Characteristics of Projects
5. Project manager negotiates with functional managers for personnel. Functional managers responsible for work tasks and personnel in the project; project manager responsible for integrating tasks.
6. Project manager focuses on delivering product or service according to time, cost, and technical requirements. Functional managers maintain pool of resources to support organizational goals; sometimes conflicts arise over allocation of resources to projects.
7. A project might have two chains-of-command, one functional and one project; workers might report to both a project manager and a functional manager.
Characteristics of Projects (cont’d)
8. Decision making, accountability, outcomes, and rewards are shared among members of the project team and supporting functional units.
9. Each project organization is temporary. When project ends, the project organization disbands and people return to their functional or subcontracting units, or are reassigned to new projects.
10.Project management sets into motion work in numerous support functions such as HR, accounting, procurement, and IT.
Project Management in History
The role*of the project manager has existed for a long time. Two
examples:
•The title of project manager is recent and became common starting in the 1950’s.
1413 Santa Maria del Fore, FlorenceFilippo Brunelleschi
Santa Maria del Fore
Santa Maria del ForeBrunelleschi’s mandate
To “provide, arrange, compose or cause to have arranged and composed, all and everything necessary and desirable for the building, continuing, and completing the dome.”Circa 1413
Advanced engine development at Pratt & Whitney,1939
1939 internal memo to establish new role, the “project engineer”
Project Engineers should in effect be Chief Engineers for their particular project
…they should then have at all times a general knowledge of the entire company situation concerning their project and…their thinking will be guided by this picture…
[They] should appreciate the functioning of each of the subdivision [of the project, including]1. Product (engineering)2. Sales3. Manufacturing4. Quality5. Service
Recent History of Project Management
• 1969 PMI founded by 5 volunteers• 1992 5000 members• 2004 142,000 members• 2005 over 170,000 members worldwide in
120 countries
1958 Publication of many articles on project management 1961 Systems Managers at IBM
Where Do You Need Project Management?
• Is UnfamiliarThe job is different from the ordinary and routine. Requires that different things be done, the same things be done differently, or both.
• Requires Greater Effort The job requires more resources (people, capital, equipment, etc.) than are normally employed by the department or organization.
• Is in a Changing Environment The industry or environment involves high innovation, high competition, rapid product change, shifting markets.
Answer: Situations where the work …
Where Do You Need Project Management?
• Requires a Multifunctional EffortThe job requires lateral relationships between the areas to coordinate and expedite work and reconcile conflicts.
• Could Impact the Reputation of the Organization or Other StakeholdersFailure to satisfactorily complete the work could result in financial ruin, loss of market share, damaged reputation, loss of future contracts, or other problems for the stakeholders or larger environment.
Answer: Situations where the work …
Different Forms of Project Management
Basic Project Management
• Most common project approach• Project manager has authority to plan, direct, organize,
and control the project from start to finish. • PM and functional managers are on the same
organizational level. • Implemented in two widely used forms—pure project and
matrix. – In pure project, the project is a complete, self-
contained organization – In matrix, the project is created from resources
borrowed from the functional units.
Different Forms of Project ManagementProgram Management
• Similarity between programs and projects – both defined in terms of goals or objectives about what
must be accomplished– both emphasize time period over which goals or
objectives are to be pursued– both require plans, budgets, and schedules for
accomplishing specific goals. • Differences between programs and projects
– Program extends over a longer time horizon– It consists of several parallel or sequential work efforts or
projects coordinated to meet a program goal. – Projects within a program share a common goal and
resources, and often are interdependent.
Different Forms of Project Management (cont’d)
New Venture Management
• Used for generating new products or markets. • Team is specially created to find products/markets that fit
the organization’s specialized skills, capabilities, and resources.
• After defining a product, the team may go on to design and develop it, then determine means for producing, marketing, and distributing it.
• Similarities between project groups and venture groups – Focus on a single unifying goal.– Multidisciplinary, with experts and managers from
various functional areas– Action-oriented and dedicated to change.– Temporary.
Different Forms of Project Management (cont’d)
Product Management
• A single person has authority to oversee all aspects of a product’s production scheduling, inventory, distribution, and sales
• Like the project manager, the product manager communicates directly with all levels and functions within and outside the organization
• The product manager coordinates functional units so that the total effort is directed at the accomplishment of product goals.
Different Forms of Project Management (cont’d)
Ad Hoc Committees and Task Forces
• For some projects of short or medium duration, a temporary team is assembled with a project leader.
• The team is an ad hoc committee called a task force or interdepartmental committee.
• The leader and members are selected by (and the leader reports directly to) the person responsible for the project—a functional manager, vice president, or CEO.
• The leader expedites and coordinates efforts and may have authority to direct project tasks to certain individuals or units, or to contract work out.
Project Management
• Project involves a single definable purpose
• Cuts across organizational lines
• Unique, one time activity
• Unfamiliar
• Temporary activity
• Process of working to achieve a goal– Phases constitute Life CycleLife Cycle
Topology of Projects
Cost - Time (Labor Hours) Complexity
Individual Group Organization Multiorg. Multination
U
ncer
tain
ty in
C
ost,
Tim
e, P
erfo
rman
ce
Term Papers
FamilyMoves
Company Moves
Market Surveys
MotionPictures
ShipsSkyscrapers Interstates
Olympic Games
PanamaCanal
Trans-English Channel
Resource(gas, oil)Exploration
Space Station(US, CanadaEurope, Japan)
Manhattan
Topology of Projects
Unc
erta
inty
in
Cos
t, T
ime,
Per
form
ance
Cost - Time (Labor Hours) Complexity
Individual Group Organization Multiorg. Multination
Basic Research
Applied Research
Product Development
Construction
Cost of P
roject
Milit
ary
Campa
igns
Project Organization
Top Management
Accounting Engineering Manufactur. Procurement
Projec t One
Task A
Task B
Task C
Review
How is project management
different from functional management?
Review
• How is project management different from functional management?
Functional organizations are efficient in stable environments, they tend to be rigid and, thus, unsuitable for the unstable and dynamic environments that characterize projects.
Project Mgmt. Characteristics
• Project manager operates project independently of normal chain-of-command
• Project manager is focal focal point for all efforts of project
• Work on project is performed by many functional areas
• Project team responsible for integrating people from different functional areas
Project Mgmt. Characteristics
• Project manager negotiates with functional managers for support
• There will be conflict for resources between project goals and functional goals
• Project might have 2 chains-of-command– vertical and functional– horizontal and project (fig. 1.5)
• Decision making, accountability, and outcomes shared among team members
2-Chains of Command
Top Management
Accounting Engineering Manufactur. Procurement
Projec t One
Project Two
Task A
Task B
Task C
Task D
Task E
Project Mgmt. Characteristics
• Project organization is temporary• Functional units are permanent• Projects originate at differing locations
within organization– product development from marketing– technology applications from R&D
• Project manager starts other support functions for project
Project Management Criteria
• Magnitude of Effort
• Unfamiliarity
• Changing Environment
• Interrelatedness
• Reputation of Organization
Ref: Cleland & King, Systens Analysis & Project Management, 259.
Forms of Project Mgmt.
• Project Management
• Program Management
• New Venture Management
• Product Management
• Task Forces
Project Environments
• Commercial Project Management
• Government/Nonprofit Project Management
• Military Project Management
Review
• List the main characteristics of projects. How do these features distinguish projects from other nonproject activities?
Review
• What are the characteristics of project management? Contrast these to functional and other types of nonproject management.
Review
• What are the five criteria that Cleland and King suggest for determining when to use project management? From these briefly describe how a manager should know when project management is appropriate for the task.
Next Class