Introduction to Project Management

Projektin hallinta Mritelmi

Introduction and DefinitionsProject Management

Autumn 2014Kimmo HaapeaAnne-Marie Tuomala 1

Project I Definitions II - HistoryIII Project Managements Purpose IV Project Types

2Project Management Skills

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I

DEFINITIONS3

Project Management Skills

I -DEFINITIONS (1)A project is an individual or collaborative enterprise that is carefully planned to achieve a particular aim

A project is a temporary endeavor undertaken to create a unique product, service, or result.

A project is a temporary organization that is created for a purpose of delivering one or more business products according to an agreed business case.

A project is a time and cost constrained operation to realize a set of defined deliverables (the scope to fulfill projects objectives) up to quality standards and requirements4Project Management Skills

I- DEFINITIONS Typical project characteristics:

Clear goals (e.g. new product or solution to a problem) Fixed schedule, settled START and END date Own resources, fixed budget Works according to the settled project plan Own project organization Divided in sequences which are dependent on each other Might be wide and complex, consisting of several sub-projects Unique Learning process Includes risks and uncertainty


I - DEFINITIONSProject isOnce-off activity, organized process making input and output to achieve the certain goal(s).

Project has series of complex and interdependency sequences, which have a common goal or aim. Project should be implemented in a certain time period, by a certain budget and should follow the project specifications. Project is a temporary organization, which will be collapsed when the goal has been achieved. 6Project Management Skills

I - DEFINITIONSCrazy people try to make the unwilling people to do impossible things

Project in the Finnish region Savo (North-Savo, South Savo): Its almost finished, only needs to be started

In principle, common sense should be enough for any project - but it is not always enough.


Projektiosaaminen8I - DEFINITIONS


Project Story9This is a short story about four people,Everybody, Somebody, Anybody and Nobody.There was an important job to be doneand Everybody was asked to do it.Everybody was sure that Somebody would do it.Anybody could have done it, but Nobody would.Somebody got angry about thatbecause it was Everybody's job to do it.Everybody thought that Anybody could do it,and Nobody realized that Everybody wouldn't.It ended up that Everybody blamed Somebody.In the meantime, Nobody got the job done..


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HISTORYProject Management Skills10

HISTORY (1)Project Management Skills11Academic research history of project management is young. In real life, a human being has implemented project thousands of years. The starting point in human history has been construction field and still today we have many of them

pyramidsmonumentsRoman aqueducts and canalization systemscastles

It is not surprising that project has quite often symbolic, political or even religious importance.

LAY-OUT OF ROMAN AQUEDUCT Project Management Skilla12

HISTORY (2)Project Management Skills13Ancient project, like construction of pyramids, required huge among of human labor and coordination of the operation. Only few of people could become leaders of the operation. Labor consisted of slaves and poor people.

Pharaoh Zosers burial monument was built in 2780 BC. His High Priest and architect Imhotep was the leader of the construction work. It represented a giant leap in building techniques. It is the world's oldest standing stone monument.

Pyramid of Cheops was built in 2650 BC. The height was 148 m and it consisted of 2 300 000 stone elements. It required work for 100 000 people in time period of 20 years. Workers were changed in every 3rd month. That time the equipments and tools were developed for the efficiency of the work. Meaning for the project management development:creation coordination of construction (projects)

HISTORY (3)14The history of purchases management and contract management started in the ancient Rome. History documents proves that construction work or parts of it has been managed by several contracts. E.g. construction work of Colosseum (ca. 7080 AD) was divided between four subcontractors. The contracts included in detail the descriptions of the work, materials to be used, guarantees and terms of payment. In the Middle Ages (5001500 AD) was the golden era for construction of cathedrals. The aims of the projects were mostly for the beauty and esthetic value of the buildings.The value of beauty was preferred instead of tight schedule and money. That is why the projects sometimes lasted for many generations.

Meaning for the project management development:

problem solving aiming at better solutions and problem solving from the business point of view, work efficiency via business


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HISTORY (4)15Viking conquerors (900th1100th centuries) and other war related operationsMeaning for the project management development:conquering progressing, project management in tactical and operational levels


HISTORY (5) INDUSTRIAL ERA 16Since 19th century technical and industrial development projects became more common, e.g.

Henry Gantt (1861-1919) - father of project management developed planning and monitoring techniques e.g. GANTT scheme. Gantt developed work sequences management as well (WBS). Project is divided in a smaller units which makes it easier to manage and disseminate tasks for staff members. Meaning for the project management development:

development to make a change by a project management: e.g. new product, goal, market mechanism, practice, organizational structure etc.


GANTT SCHEME BASICProjektiosaaminen17

GANTT WBS18

A Gantt chart showing three kinds of schedule dependencies (in red) and percent complete indications

III

PROJECT MANAGEMENTS PURPOSE19


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III PROJECT MANAGEMENT PURPOSE

Project Management is

to plan, lead and monitor resources (people, equipment and materials) in such way, that technical, budgetary and timeliness of the project will be achieved. Principles of project management remains the same in all projects Project management is to apply leadership methods to gain the projects aims and goals (Artto et al. 2006)

Project Management in Business

The business is more and more organized so that the work is organized to be done in project teams (because of the need for tailor made solutions to the clients)21Project Management Skills

III PROJECT MANAGEMENT PURPOSE22Project management enables to organize resources so that the project can be implemented according to the project plan. Quality Schedule Budget Resources; money, staff, materials, machinery and equipment, premises, energyProject Management Skills

III PROJECT MANAGEMENT PURPOSEProject definitionPlanning of goal and workAnalyzing goalsRisk managementProject scope managementEvaluation of resourcesDividing resourcesSet-up of project organization23Organizing the work Catch up of resources Dividing the tasks Project general management and follow-up Analyzing results Quality management Preventing mistakes Close-up of project Stakeholders need analysis Project communication


III PROJECT MANAGEMENT PURPOSE

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Project qualityProject risksProject indicatorsCost estimationsProject scheduleReporting and communication Human resourcesOther resourcesFollow-up of project progressProject Management Skills

IV

PROJECT TYPES25


SOME PROJECT TYPES

Companys internal development project Delivery project Research and development (R&D) projectTechnical implementation project Construction project Product development project Pre-feasibility and feasibility projects


COMPANYS INTERNAL DEVELOPMENT PROJECTSExamples:

Taking into use a new information systemCompany development, change or turnoverOpening new distribution channel Moving to new premises New product and its launchTo new markets (internationalization)

Characteristics:

Project staff works a part-time in a projectProject reflects the general team spirit and motivationBrings often required change to routine workTime resources are usually small ones as routine work keeps also goingExternal expertise is quite much inAmount of meetings increases Aim is to make a specific change to an operation or products


DELIVERY PROJECT

Examples :

Assembling and taking in the use of a softwareDelivery of machineryDelivery of computersRepairing projects

Characteristics:Delivered to an external customerUnique to a customer, routine to a seller/delivererbasic operationProject duration varies (days-years)Often deliveries to abroad Delivery is made by several contractors/sellersMuch parallel tasks, multi-tasks28Project Management Skills

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R & D PROJECTS

Examples:Market surveys and studiesProduct and service developmentAcademic research in HEIs

Characteristics: Intensive pre-planning to getUsually external financer(s)Discrepancy between academic and private companiesTime-frame usually quite short compared to a traditional form of research; research quick-deliveryResults are difficult to be defined beforehand?How to measure a success or failure?Organizational commanding norms do not work necessarily


Technical Implementation Project

Examples fairs, exhibitions festival, event play, concert seminar, training promotion event for clients marketing campaignOther technical implementationCharacteristics Schedule is the critical point Work load is progressive Many external risk factors Success is possible to estimate afterwards Often includes voluntary work Economic success hard to forecast


Characteristics Tough time schedules Tendering the best/most suitable wins the implementation Many partners Controlling and monitoring Implementing staff and employees are of project professionals Time schedule matching is challenging Delay in one phase may postpone the whole project Progress is concretely recognizable 31CONSTRUCTION PROJECTS Project Management Skills

PRODUCT (OR SERVICE) DEVELOPMENT PROJECTS

Characteristics:Exact goals, but starting point may be unclearOnly a small number or ideas become to the implementationIdea generation and collecting is nowadays planned and processed activity Feedback from potential clients is to be collected, preferably the project is nowadays user-driven (participates concretely in the project)There is quite often a lack of commercialization skills; the launch of the innovations is not automatically a success story32Project Management Skills

GENERAL MEANING OF PROJECT MANAGEMENT FOR BUSINESS AND STUDIES


Why are projects needed ?Growing requirements in operational environment:Increased competitionTodays work includes several collaborants like subcontractors, distributors etc. which nowadays locate abroad as wellInformation flow is harder to manageRapid development of information systemsOther standards, like quality systems, create new requirements


MORE EFFECTICITY

Why to learn project management skills?

Develops skills which help in operating in unexpected and real world situationsCoaches to project work and collaboration Helps to create more work contactsEnriches studies and make studies more versatileProjects are essential part of todays working lifeThe first engineering salary work is easier (and more likely) to get from a project35Project Management Skills

Project based learning (PBL)

Customer orientated planning and activitiesDevelopment approach from a working lifeMulti-skilled team work and sharing knowledgeDevelops self-discipline, flexibility, tolerance for uncertaintySearching and applying information and knowledge, defining problems and finding solutions, setting goals and working for themStudent has a active role, teacher is a facilitator and coordinates


Project based learning (PBL)

PBL is also learning by doingLearn to settle concrete goals and time schedulesGroup work/team work, but everybody has his/her own area and tasks of responsibilityStudent participates in assessments, self-assessment is also possibleConcrete output(s)Problem solving skillsCommunication skills


KYSY projektitoiminnan hytyj 5 min pareittain37

PROs of project work?Clear organizational structureFlexible structureBig volumes of operations are possible with skilled project workGoal orientation and clear objectivesFollow-up and measurabilityProject can also release some resourcesFlexible allocation of resources is possiblePossibility to share work and get support from colleaguesTeam workLearning from each othersProject work committed peopleIntensivity of a work38Project Management Skills

Battle for resources Contradicted goals of key personsPlan is not realisticMilestone schedules change continuously delays Lack of project leaderhsipContinuous changeDiscontinuityShort term partial optimization

Project is a box inside the organizationStress peaks Lack of project management skills among staff Disability to work in teamsTransfer of knowledgeInternal communicationDissemination to target groupsToo high and long-term work intensity39CONs of project work?Project Management Skills

Challenging factorsBig size of the project (many partners, big budget, strategic importance)Long durationHeavy interdependency between activitiesNo pre-knowledge or experience about new solutionsExceptional quality requirementsPublicity, political factorsNew operational environment, new culturesToo big pressure to succeed 40Project Management Skills

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Project pitfalls (1)

Action is just called as a projectAction is called project but is managed by a division managerProject is somebodys parallel job; side jobProject management tools are not known or usedSystemic approach and follow-up are missing

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Project pitfalls (2)

No project guidelines, everybody works as likesAttitudes like It is not possible to schedule my workCommunication is not a tool; managers dont know the project implementation and work load concretelyUnclear START and END datesNo professional project manager

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to concludea good project is or has:Projektiosaaminen43

Based on the real need and it makes the required change Clear goals and activities to achieve the goalsRealistic project plan Cost-efficient and efficiently implementedIt results to the future activitiesThere are more beneficiaries than an implementing body solely.

Introduction to Project Management

Education