mbb3173 project management introduction topic to be covered defining of project management history...
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MBB3173 Project Management, ABO@2014 1
MBB3173Project Management
IntroductionTopic To Be Covered
• Defining of Project Management• History of Project Management• Project Management Functions• Project Planning and Scheduling• Project Management Application• Benefits and Limitations of Network Planning
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Making a Satellite
Factory operations
What is common between these activities?
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The Great Pyramid of Giza (2,550 B.C.)
The Great Wall of China (221 B.C. -206 B.C.)
Pre 19th Century
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The 16th Century and Modern Age of Engineering
This marked the beginning of modern engineering with the formation of professionalsocieties, printing of treatise on engineering subjects in quantity, engine specialization within the profession, and engineers began to take advantage of the brilliant scientific discoveries of the time.
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The 18th and 19th Century and the Industrial Revolutions
The end of the 18th and 19th century witnessed colossal changes in the Western World with industrial revolutions and with this the birth of management principles in the business to become the backbone of project management
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The First Industrial Revolution and Steam
The changes brought about by the first industrial revolution and itsrepercussions required new thinking and solutions at a more macro level. For example, this new industrialized world with mass production required a system to supply large quantities of raw materials, resources, man power, equipment and organization.
It needed more sophisticated systems of transportation, storage, manufacturing, assembly and distribution. Further a rapidly expanding workforce of thousands needed to be taken care of in terms of housing, health, welfare, and education. All this brought in new institutions, establishments, and organizations. It also brought a more to business and management based on scientific research and principles.
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The Second Industrial Revolution Electricity and Combustion Engines
The very late part of the 19th century saw the second industrial revolution emerge with a host of new emerging technologies. The second, dominated by electricity and chemicals, lasted 1890-1930, and brought telephones, electrical devices, the internal combustion engine, and transportation by land (automobiles), sea (ocean going liners), and air.
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Establishment of Project Management Institute (PMI)
In 1969, the Project Management Institute (PMI) was formed in the United States of America to serve the interest of the project management industry. The premise of PMI is that the tools and techniques of project management are common even among the widespread application of projects from the software industry to the construction industry.
In 1981, the PMI Board of Directors authorized the development of what has become A Guide to the Project Management Body of Knowledge (PMBOK Guide), containing the standards and guidelines of practice that are widely used throughout the profession.
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Project Management as a Profession
• Project Management Institute• More than 64,000 members
• Project Management Body of Knowledge (PMBOK)• Project-oriented organization
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Understanding of Project Management
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Projects versus Operations
• Organizations perform work - either• Operations, or• Projects
• Shared characteristics of projects and operations• Performed by people• Constrained by limited resources• Planned, executed and controlled
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Operations and projects differ:
• Operations are ongoing and repetitive (Factory operations)• Projects are temporary and unique (Making of satellite)
• “A project is a temporary endeavor undertaken to create a unique product or service.”
• temporary - definite beginning and end• unique - different in some distinguishing characteristic
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Examples of projects
• Developing a new product or service• Effecting a change in structure, staffing, or style of an
organization• Designing a new transportation vehicle• Constructing a building or facility• Running a campaign for political office• Implementing a new business procedure or process
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Project Characteristics• Have a specific objective (which may be unique or one-of-
a-kind) to be completed within certain specifications• Have defined start and end dates• Have funding limits (if applicable)• Consume human and nonhuman resources (i.e., money,
people, equipment)
• Be multifunctional (cut across several functional lines)
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What is Project Management?
• Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project.
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The project management challenge
Meeting or exceeding stakeholder needs and expectations invariably involves balancing competing demands among:
• Scope, time, cost, and quality• Stakeholders with differing needs and expectations• Identified needs and unidentified expectations -
“client relations challenge”
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• Critical to identify early• Analyze their interests, importance, influence• Classify stakeholders and prioritize relationships
building accordingly
Identify Stakeholders
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Identify Project Stakeholders
Project Manager
Project Sponsor
Department Managers Customers Project Team
Board of Directors
Contractors, Suppliers
Executive Managers
Project Management
Office
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Sample of Power/Interest GridStakeholder
KeepSatisfied
Manage Closely
Monitor(Minimal effort)
Keepinformed
High
HighLow
Low
Pow
er
Interest
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Communication Matrix-StakeholderStakeholder Business
Specific Meetings
Project Working
Committee (PWC)
Meetings
Project Steering
Committee (PSC)
Meetings
Project Status Reports (PSR)
News Bulletin Personal Updates
Project Sponsor
Yes Yes Yes Yes
Project Manager
Yes Yes Yes Yes Yes Yes
IT Manager Yes Yes Yes Yes
Finance Manager
Yes Yes
Business Manager/ Consultant
Yes Yes Yes
Staff & Customers
Yes
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Communication Mode
Mode Working Committee Meetings
Steering Committee Meetings
Status Reports News Bulletin Personal Updates
Announcement/ Reminders
Minutes/ Email Minutes/ Email Verbal
Distribution Hard copies/ Email
Hard copies/ email
Verbal
Meeting Modes On-site On-site
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The core of project management
published by PMI in 1987 W
here
mos
t
proj
ects
fail?
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Project Management Knowledge Areas (PMBOK)
• Scope Management• Cost Management• Communications
Management• Human Resources
Management
• Time Management• Quality Management• Risk Management• Procurement
Management
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Relationship to other disciplines - similarities• General management encompasses
• Planning• Organizing• Leading• Controlling
• PM management functions overlap
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Function overlap
• Planning the work, schedule and budget• Organizing and staffing a team to implement the work• Controlling the project through tracking and monitoring progress
against the plan• Leading people and resources so the plan is implemented and
adjusted as smoothly as possible
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Relationship to other disciplines - differences• Much of the knowledge needed to manage projects is unique or
nearly unique to project management, e.g.• Critical path analysis, and• Work breakdown structures
• Primary differences between general management and PM found in the use of specialized tools and techniques.
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Why do you need project management techniques?• “The reason for organizing an assignment as a project is to
FOCUS the responsibility, authority, and scheduling of the project in order to meet defined goals.”
• schedule• cost• performance (quality)
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Other major reasons to use PM techniques• Clear work descriptions minimize surprises and conflicts• Responsibilities and assignments for specific tasks are easily
identified• Reduces need for continuous reporting• Progress can be measured against a plan• Time limits for task completion are more easily specified
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The two types of project management activities
• Project planning and definition activities• Project implementation and control activities• More simply
• Deciding, and• Doing
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Planning and definition activities
• Definition of project goals and objectives• Definition of work requirements• Definition of quantity of work• Definition of quality of work• Definition of required resources• Definition of organization structure• Planning of task sequencing and schedule• Planning of the budget
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Implementation and control activities
• Initiating work• Monitoring and tracking progress• Comparing schedules and budgets to plans• Analyzing impact of changes and progress• Coordinating activities and people• Making adjustments to the plan as required• Completing the project• Assessing project results
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Success factors in project management
• Appropriately skilled project manager• Clear authority for the PM to act• Commitment to the PM methodology• A skilled PM team agreed to the project goals• A complete project plan that is understood by all
participants• Objectives that contribute to the larger goals of the
organization• Workable tracking and monitoring methods
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Bottom line
• What project management will do is provide a system for planning, documenting, organizing, and communicating.
• It provides a basis for better decisions• Ultimately, it is the people who will make things happen and
make things work, not the methodology!
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Project Management
• Project Planning• Definition of work requirements• Definition of quantity and quality of work• Definition of resources needed
• Project monitoring–Tracking progress–Comparing actual outcome to predicted outcome–Analyzing impact–Making adjustments
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The Pure Project Organization
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The Pure Project Organization• Advantages
• Effective and efficient for large projects• Resources available as needed• Broad range of specialists• short lines of communication
• Drawbacks• Expensive for small projects• Specialists may have limited technological depth• May require high levels of duplication for certain
specialties
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Functional Project Organization
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Functional Project Organization
• Advantages• technological depth
• Drawbacks• lines of communication outside functional
department slow• technological breadth• project rarely given high priority
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Matrix Project Organization
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Matrix Project Organization• Advantages
• flexibility in way it can interface with parent organization• strong focus on the project itself• contact with functional groups minimizes projectities• ability to manage fundamental trade-offs across several
projects• Drawbacks
• violation of the unity of command principle• complexity of managing full set of projects• conflict
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Mixed Project Organization
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Communicator
Communication Paths Between a Project’s Parties-At-Interest
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Benefits
• Identification of functional responsibilities to ensure that all activities are accounted for, regardless of personnel turnover.
• Minimizing the need for continuous improvement• Identification of time limits for scheduling• Identification of a methodology for trade-off analysis• Measurement of accomplishment against plans
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Benefits (continued)
• Early identification of problems so that corrective action may follow
• Improved estimating capability for future planning• Knowing when objectives cannot be met or will be exceeded
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Obstacles• Project complexity• Customer’s special requirements and scope changes• Organizational restructuring• Project risks• Changes in technology• Forward planning and pricing
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Classical Management• Planning• Organizing• Staffing• Controlling• Directing
Which of the above is Usually NOT performed by the project manager?
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Resources• Money• Manpower• Equipment• Facilities• Materials• Information/technology
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Successful Culture• A good daily working relationship between the project manager
and those line managers who directly assign resources to projects
• The ability of functional employees to report vertically to their line manager at the same time they report horizontally to one or more project managers
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Interface Management• Managing human interrelationships within the
project team• Managing human interrelationships between the
project team and the functional organization• Managing human interrelationships between the
project team and senior management• Managing human interrelationships between the
project team and the customer’s organization, whether an internal or external organization
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IntegratedProcessesIntegratedProcesses
Integration Management
· Capital· Materials· Equipment· Facilities· Information· Personnel
· Capital· Materials· Equipment· Facilities· Information· Personnel
ResourcesResources
InputsInputs
IntegrationManagement
IntegrationManagement
ProductsServicesProfits
ProductsServicesProfits
OutputsOutputs
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The Functional Role• The functional manager has the responsibility to define how
the task will be done and where the task will be done (i.e., the technical criteria)
• The functional manager has the responsibility to provide sufficient resources to accomplish the objective within the project’s constraints (i.e., who will get the job done).
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Functional Obstacles• Unlimited work requests (especially during competitive
bidding)• Predetermined deadlines• All requests having a high priority• Limited number of resources• Limited availability of resources• Unscheduled changes in the project plan• Unpredicted lack of progress
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Functional Obstacles (continued)
• Unpredicted lack of progress• Unplanned absence of resources• Unplanned breakdown of resources• Unplanned loss of resources• Unplanned turnover of personnel
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Results of Good Planning• Assurance that functional units will understand their
total responsibilities toward achieving project needs.
• Assurance that problems resulting from scheduling and allocation of critical resources are known beforehand.
• Early identification of problems that may jeopardize successful project completion so that effective corrective action and replanning can occur to prevent or resolve problems.
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