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Fundamental concepts
Recent pdf, ppt, video versions of the course available here: project management
Project management
1Image: public domain (source)
Dr. Rémi Bachelet
Introduction
Objectives
Course plan
Centrale Lille
Getting started
2
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Dr. Rémi Bachelet
Introduction
Objectives
Course plan
Centrale Lille
3
Course under Creative Commons license
Images : cc-by source
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Dr. Rémi Bachelet
Introduction
Objectives
Course plan
Centrale Lille
Objectives
4
Understand team structures in projects
Explain what a project is
Calculate life cycle costCharacterize the types of
projects in business
FUNDAMENTALS
Dr. Rémi Bachelet
Introduction
Objectives
Course plan
Centrale Lille
Course outline
5
Project
1. What is a project?
2. Projects in business
3. How is a project organized?
4. Case studies
5. Project team structure
Chapter 1
Definition
Why projects?
Managing a projet
Training
Dr. Rémi BacheletCentrale Lille
FundamentalsChapter 1
What is a project?Image: cc-by source
Chapter 1
Definition
Why projects?
Managing a projet
Training
Dr. Rémi BacheletCentrale Lille
You said "project"?
7Image : cc-by ou pd source1, source2, source3, source4
Chapter 1
Definition
Why projects?
Managing a projet
Training
Dr. Rémi BacheletCentrale Lille
We talk about projects every day: what is it?
1. Temporary: a start and an end
2. Prepare before acting, stages
3. Result = the deliverables
ISO 21500 - PMBOK® Guide
What is a project ?
8Image: cc-by source
Chapter 1
Definition
Why projects?
Managing a projet
Training
Dr. Rémi BacheletCentrale Lille
Why projects?
Productivity =Cost
Value Creation
Costs: is no longer the best way to go
• Competition
• Globalization
• Create more value: innovate
• Innovation = Project
9
Chapter 1
Definition
Why projects?
Managing a projet
Training
Dr. Rémi BacheletCentrale Lille
10
The paradox of project management
• At the project start: more flexibility
• Project termination: you know what you should have done, but too late…
Freedom of actionProject experience
time
Chapter 1
Definition
Why projects?
Managing a projet
Training
Dr. Rémi BacheletCentrale Lille
From student to professional…
11
A student:
1. alone
2. an isolated, abstract problem…
3. …clearly defined: the data are available…
4. well-posed problem: a unique solution
A professional:
1. with a team, for a client
2. interconnected, concrete problems
3. unclear
4. with many possible solutionsImages : source 1 source 2
Chapter 1
Definition
Why projects?
Managing a projet
Training
Dr. Rémi BacheletCentrale Lille
Summary
12
Project?
Innovation = ProjectTo create more
value: innovate
Training
Chapter 1
Definition
Why projects?
Managing a projet
Training
Dr. Rémi BacheletCentrale Lille
Further exploration
13
• In three essential words : define the concept of project
• Think of an innovation that you would like to implement
• What do you think are the four most important realizations in your country over the last ten years? Do they match the definition of a project?
Quiz
Dr. Rémi BacheletCentrale Lille
14
Course outline
Project
1. What is a project?
2. Projects in business
3. How is a project organized?
4. Case studies
5. Project team structure
Chapter 2
Projects in business
Typology of projects
Project profiles
Projects and Operations
Dr. Rémi BacheletCentrale Lille
FundamentalsChapter 2
Projects in businessImage : cc-by source
Chapter 2
Projects in business
Typology of projects
Project profiles
Projects and Operations
Dr. Rémi BacheletCentrale Lille
Position of projects in the organizational chart of a company
16
Management
Division
Team P
P
P
ProjectP
Chapter 2
Projects in business
Typology of projects
Project profiles
Projects and Operations
Dr. Rémi BacheletCentrale Lille
17
Company 2 Joint-Venture
Project
Management
Division
Team
Position of projects in the organizational chart of a company
Chapter 2
Projects in business
Typology of projects
Project profiles
Projects and Operations
Dr. Rémi BacheletCentrale Lille
Review of projects in a multinational company: a typology
18
Size
Small local
projects
New factory
R&Dprojects
Complexity
Chapter 2
Projects in business
Typology of projects
Project profiles
Projects and Operations
Dr. Rémi BacheletCentrale Lille
Project profiles
19
PICQ (1999 : 42)
Size
Material output
Complexity
Innovation
Team autonomy
Integration in the organization
Stakes +
STRONG
-
WE A K
Chapter 2
Projects in business
Typology of projects
Project profiles
Projects and Operations
Dr. Rémi BacheletCentrale Lille
Project profiles: quality certification
20
Low level of innovation
Small size
Low stakes
Immaterial deliverable
Low complexity
Weak autonomy
Project is integratedin an organization
Large size
High stakes
Material deliverable
High complexity
High level of innovation
Strong autonomy
Organization is constructed around the project
PICQ (1999 : 42)
Chapter 2
Projects in business
Typology of projects
Project profiles
Projects and Operations
Dr. Rémi BacheletCentrale Lille
Project profiles: productivity service
21
Low level of innovation
Small size
Low stakes
Immaterial deliverable
Low complexity
Weak autonomy
Project is integratedin an organization
Large size
High stakes
Material deliverable
High complexity
High level of innovation
Strong autonomy
Organization is constructed around the project
Other approaches to analyzing a project:
• 5W’s : who, what, where, when, why
• Strategic analysis
Chapter 2
Projects in business
Typology of projects
Project profiles
Projects and Operations
Dr. Rémi BacheletCentrale Lille
Project vs. Operations
22Image : cc-by (source1 source2)
Chapter 2
Projects in business
Typology of projects
Project profiles
Projects and Operations
Dr. Rémi BacheletCentrale Lille
PROJECT OPERATIONS
Environment
Unknown, Innovative, temporary
organization
Environment
Repetitive, stable organization
Unique process
Irreversible decisions
Recurring process
Reversible decisions
High uncertaintyExogeneous variables, degrees of
freedom
Low uncertaintyEndogeneous variables, controled
actions
Negative cash-flowInvestment is needed before getting
returns
Positive cash-flowFunctioning generates a profit
Create future activitiesthat ensure the future of the
business
Maintain existing activities
that keep the business running
DifficultyManage a complex “leap into the
unknown”
DifficultyIntervene rapidly in the event of a
blockage
Difference between project and operations
23
Chapter 2
Projects in business
Typology of projects
Project profiles
Projects and Operations
Dr. Rémi BacheletCentrale Lille
PROJECT OPERATIONS
Environment
Unknown: Innovative, temporary
organization
Environment
Repetitive: stable organization
Unique process
Irreversible decisions
Recurring process
Reversible decisions
High uncertaintyExogeneous variables, degrees of
freedom
Low uncertaintyEndogeneous variables, controled
actions
Negative cash-flowInvest before getting a return
Positive cash-flowOperating generates a profit
Create future activitiesthat ensure the future of the
business
Maintain existing activities
that keep the business running
DifficultyManaging a complex “leap into the
unknown”
DifficultyIntervening quickly in case of a
blockage
Difference between project and operations
24
Chapter 2
Projects in business
Typology of projects
Project profiles
Projects and Operations
Dr. Rémi BacheletCentrale Lille
Summary
2525
Projects in business
Position Typology
Profile Projects vs Operations
Chapter 2
Projects in business
Typology of projects
Project profiles
Projects and Operations
Dr. Rémi BacheletCentrale Lille
Further exploration
26
Professionally, do you prefer working on a project or in operations management? Why?
Choose three projects that you know…
• Characterize their profiles
• Think of other elements to include in the project profile
Quiz
Dr. Rémi BacheletCentrale Lille
1. What is a project?
2. Projects in business
3. How is a project organized?
4. Case studies
5. Project team structure
Project
Waterfall dev.
Concurrent engineering
Cost of a project
Life cycle cost
Chapter 3
Dr. Rémi BacheletCentrale Lille
FundamentalsChapter 3
How is a project organized?
Image : cc-by source
Waterfall dev.
Concurrent engineering
Cost of a project
Life cycle cost
Chapter 3
Dr. Rémi BacheletCentrale Lille
Sequential development: waterfall
29
Qualification
Commercial reflection
Design
Industrial definition
Industrialization
Decision to launch the project
Then
Then
Then
Transfer of files
Transfer of files
Transfer of files
Waterfall dev.
Concurrent engineering
Cost of a project
Life cycle cost
Chapter 3
Dr. Rémi BacheletCentrale Lille
Sequential development: waterfall
30
Qualification
Commercial reflection
Design
Industrial definition
Industrialization
Decision to launch the project
Then
Then
Then
Transfer of files
Transfer of files
Transfer of files
Waterfall dev.
Concurrent engineering
Cost of a project
Life cycle cost
Chapter 3
Dr. Rémi BacheletCentrale Lille
Sequentialvs. concurrent engineering
31
60 50 40 30 20 10 0
01 02 A B C D
Time
Design
Industrial definition
Industrialization Qualif Prod
Time gainDesign
Industrial definition
Industrialization Process Qualif Prod
Marketing
Needs
Pre-
project
Sequential development
Concurrent engineering
Waterfall dev.
Concurrent engineering
Cost of a project
Life cycle cost
Chapter 3
Dr. Rémi BacheletCentrale Lille
Cost of a project and a product
32
Use and
After-sales
Use costs
Mass
production
Production costs
Investment
Development
Industrialization
Start of the
project
01 02 A B C D
Waterfall dev.
Concurrent engineering
Cost of a project
Life cycle cost
Chapter 3
Dr. Rémi BacheletCentrale Lille
Notion of life cycle cost
33
Industrial
Client-User
Cost
Development cost
Industrialization cost
Production cost
Use and
maintenance cost
Termination
cost
Community
t
Waterfall dev.
Concurrent engineering
Cost of a project
Life cycle cost
Chapter 3
Dr. Rémi BacheletCentrale Lille
Summary
34
Organization of a project
Waterfall development Concurrent engineering
Cost of a project Life cycle cost
Waterfall dev.
Concurrent engineering
Cost of a project
Life cycle cost
Chapter 3
Dr. Rémi BacheletCentrale Lille
Further exploration
35
In your activities…
• Design the stages of a project in...
a) sequential mode b) concurrent mode
• What do you deduce from this?
• Concerning the cost of this project, who paid and how?
Quiz
Dr. Rémi BacheletCentrale Lille
1. What is a project?
3. How is a project organized?
4. Case studies
5. Project team structure
36
Project
2. Projects in business
Project / product owner
Case of automobile industry
Case of civil engineering
Chapter 4
Dr. Rémi BacheletCentrale Lille
FundamentalsChapter 4
Case studies37Image: cc-by, source
Project / product owner
Case of automobile industry
Case of civil engineering
Chapter 4
Dr. Rémi BacheletCentrale Lille
Define and distinguish the responsabilities
38
• Product owner (Client)
• Project owner (Engineer)
– Subcontracting
– Coordination
Image: cc-by, source
Distribution of roles across functions:example of automobile industry
39
Preliminary phases Development phases
Phases
Actors
Marketing needsOpportunities
01
Pre-projectsFeasability
02
Design
A
Industrialdefinition
B
Industrialization
C
Certification
D
Marketing , Benchmarking
Upstream technical research
Design
Design office
Project Group
Purchasing
Methods
Quality
Logistics
Suppliers
Users
LaunchAppointment of project manager
Distribution of roles across functions:example of automobile industry
40
Preliminary phases Development phases
Phases
Actors
Marketing needsOpportunities
01
Pre-projectsFeasability
02
Design
A
Industrialdefinition
B
Industrialization
C
Certification
D
Marketing , Benchmarking
Upstream technical research
Design
Design office
Project Team
Purchasing
Methods
Quality
Logistics
Suppliers
Users
LaunchAppointment of project manager
Distribution of roles: example of civil engineeringProgramming(opportunity
studies)
Design, negociation Consultations and studies
Realization
Rec
ep
tio
n,
wo
rk a
ud
it
Phases
Actors Pre
-pro
gram
Pro
gram
Dra
ft
Pre
limin
ary
p
re-p
roje
ct
Det
aile
d
pre
-pro
ject
Ten
der
d
ocu
men
ts
Pri
cin
g
Mar
kets
and
ad
min
istr
ativ
e fo
rmal
itie
s
Pre
par
atio
n
Exec
uti
on
Mo
nit
ori
ng
Product owner
Design architect
Design office, Client
Commercialmanagement
Pricing office, Eng
Works and methods management
Work forceOwn production
Subcontractors
41
Distribution of roles: example of civil engineeringProgramming(opportunity
studies)
Design, negociation Consultations and studies
Realization
Del
iver
y
Phases
Actors Pre
-pro
gram
Pro
gram
Dra
ft
Pre
limin
ary
p
re-p
roje
ct
Det
aile
d
pre
-pro
ject
Ten
der
d
ocu
men
ts
Pri
cin
g
Mar
kets
and
ad
min
istr
ativ
e fo
rmal
itie
s
Pre
par
atio
n
Exec
uti
on
Mo
nit
ori
ng
Product owner
Architect
Design office, Client
Commercialmanagement
Pricing office
Works and methods management
WorkforceOwn production
Subcontractors
Project / product owner
Case of automobile industry
Case of civil engineering
Chapter 4
Dr. Rémi BacheletCentrale Lille
Image: DP source
Summary
43
Distribution of roles
Case studies
Product owner
Project ownerSubcontractors
Civil engineering
Automobile industry
Project / product owner
Case of automobile industry
Case of civil engineering
Chapter 4
Dr. Rémi BacheletCentrale Lille
Further exploration
44
An internal project in your company is failing, but its manager says: "we have already spent 40% of the budget, there is no going back". What is your response?
In a past project for which you were involved … List all the roles and responsibilities of the actorsDid the elaboration of this grid help you?
Quiz
Dr. Rémi BacheletCentrale Lille
45
Course outline
Project
1. What is a project?
2. Projects in business
3. How is a project organized?
4. Case studies
5. Project team structure
Functional
Weak matrix
Strong matrix
Task force
Organization/tools
Chapter 5
FundamentalsChapter 5
Project team structure46Image : cc-by source
Functional
Weak matrix
Strong matrix
Task force
Organization/tools
Chapter 5
Project support structures (1/4)
Management
Project in a functional structure
ECOSIP/GIARD & MIDLER (1993)
47
Specialist actors in the project
Functional
Weak matrix
Strong matrix
Task force
Organization/tools
Chapter 5
"Weak matrix" structure
Sector project leader
Coordinator
Project support structures (2/4)
Management
Specialist actors in the project
48
Functional
Weak matrix
Strong matrix
Task force
Organization/tools
Chapter 5
Management
Actors in the project
Project support structures (3/4)
Sector project leader
Project manager
49
"Strong matrix" structure
Functional
Weak matrix
Strong matrix
Task force
Organization/tools
Chapter 5
Project support structures (4/4)
"Dedicated team" structure, task force
Project manager
Management
50
Functional
Weak matrix
Strong matrix
Task force
Organization/tools
Chapter 5
Questions
• Project team? • Work breakdown?• Scheduling?
Organization Tools
Project
Company
• Meeting, todo lists• Planning, budget• Progress indicators • Risk management…
• Sectors and careers• Organizational structure• Continue/stop a project?• Internal or subcontracted?
• Planning / strategy• Project portfolio• General overseeing• Budgetary control
51
Functional
Weak matrix
Strong matrix
Task force
Organization/tools
Chapter 5
Summary
52
Support structuresin an organization
Functional
Weak matrix
Strong matrix
Task force
Organization/tools
Chapter 5
Further exploration
Studying means working in a matrix environment: as a student, you divide your time between different subjects.
• How did you manage your priorities?
• What improvements would you suggest to the school/university?
For two projects that you know…
• What type of support-structure? Is it appropriate?
53
Quiz
Dr. Rémi BacheletCentrale Lille
Fundamentals
Conclusion
Dr. Rémi BacheletCentrale Lille
Project management
55
Anticipate = be proactive
Be flexible in the initial phases of the project
Adapted and effective solutions
Dr. Rémi BacheletCentrale Lille
Two issuesin the organization of projects
56
• After the end of a project
• Knowledge Management
Are you now able to…?
57
Understand team structures and configurations in project
mode
Explain what a project is
Calculate life cycle costCharacterize the types of
project in business
FUNDAMENTALS
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