Prmn6210 2014 (lu 1 & 2)pdf

PRMN6210 - 2014

Trudi Schuin-Dorfling

PROJECT MANAGEMENT

All text & information taken & adapted from Project Management Techniques by Rory Burke (2nd Edition)

Assignment 21 Oct

TEST 03 SEPT

AEGROTAT TEST 29 SEPT

EXAM 11 NOV

IMPORTANT DATES:

GETTING TO KNOW YOU

WHAT IS YOUR NAME?

WHAT ARE YOUR INTERESTS?

WHAT ARE YOUR EXPECTATIONS OF THIS SUBJECT?

ICE BREAKER

WHAT DO YOU KNOW ABOUT PROJECTS AND

PROJECT MANAGEMENT?

WHAT DO THESE BALLOONS REMIND YOU OF?

HAVE YOU EVER ARRANGED A PARTY? …………..

THEN YOU HAVE DONE A PROJECT !

LU 1 – Chapter 1 : Pages 17 - 35

INTRODUCTION TO PROJECT MANAGEMENT TECHNIQUES

LESSON 1

LU 1 - OBJECTIVES

The Definition of a project

The Definition of project management

Defining the roles of the following:

Project Sponsor

Project Manager

Project Steering Committee

Defining project success 6

DEFINITION OF PROJECT

Temporary endeavor undertaken to create a unique

product or service.

Temporary: Every project has a defined beginning

& end.

Unique: A produce or service is different in some

way to distinguish it from similar products /

services.

7

• A project is only performed once.

• A project is a multi-task job that has performance,

cost, time & scope requirements according to schedule.

• Seeks solution to problem or need.

Page 18

PROJECTS

Characteristics / Attributes of Projects:

Client & Sponsors

Stakeholders

Life Cycle (Start & Finish)

Charter

Project Manager - 1 person responsible

Teams / Team Work / Team Roles

Scope of work

Schedule - CPM

Budget – associated with cash flow & WBS

Use resources – Teams needing co-ordination

Procurement

Quality

Risks 8

Page 18 -19

Lets review definitions on pages 18 - 19

TYPES OF PROJECTS

9

1 of 8 Construction & Engineering Projects:

Construction of houses, buildings, bridges, dams or power

stations. Usually Unique & use temporary workforce & offices.

Page 20

2 of 8 Military & Aerospace Projects :

The application innovative technology in the construction of

warships, tanks, fighter aircraft and many other armoured

platforms. Large complex projects with lots of R&D.

10

TYPES OF PROJECTS Page 20

3 of 8 Offshore & Petrochemical Projects :

Search & large scale refinement of new energy sources.

Safety standards are of large concern due to flammable items.

11

Page 21 TYPES OF PROJECTS

4 of 8 Information technology (IT) & Computer Projects:

New hardware and software application development as well

as networks. High cost & often over budget & late schedule.

Did you know that more than 98 % of all IT projects are never

cancelled even though they are over budget & are late in finishing –

do you know why?

Page 21 TYPES OF PROJECTS

5 of 8 Product development Projects :

New consumer products to meet market demands which

includes design & development which is fast-tracked to get

product to market before competitors.

TYPES OF PROJECTS Page 22

6 of 8 Advertising & marketing Projects :

Launch of newly developed products usually with advertising & campaigns. This happens with new product releases to consumers.

..\..\Videos\Funny video - Sports drink.wmv

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..\..\Videos\Funny Video's - Astra Dog ad.wmv

..\..\Videos\Funny Video's - Bud...Ad.wmv

..\..\Videos\GVOW_3986_33415.wmv

..\..\Videos\Real Men don't complain - Pepsi Max.wmv

..\..\Videos\Project Management\Most creative Ad ever.mp4

..\..\Videos\Project Management\How the Internet Is Changing Advertising.mp4

14

TYPES OF PROJECTS Page 22

7 of 8 Bank Projects:

Launch of newly developed financial products.

When introducing a new mortgage product for a bank, it would

involve the project of co-ordinating staff training, IT systems,

brochures at the banks as well as advertising, marketing &

launching the financial products to the market or consumers.

15

TYPES OF PROJECTS Page 22

8 of 8 Events Projects:

Organising sport, fashion, exhibition, conventions & music

events. Often temporary 1 or 2 day events. Stressful!

TYPES OF PROJECTS Page 23

WHAT IS PROJECT MANAGEMENT

17

PMBOK defines project management as the

application of knowledge, skills, tools & techniques to

project activities in order to meet stakeholders needs

& expectations as well as the requirements of a

project.

AMBOK: The application of processes, methods,

knowledge, skills & experience to achieve project

objectives.

Projects also require special project management

techniques – these are as follows:

Page 24

PROJECT MANAGEMENT TECHNIQUES

18

Characteristics of Project Management:

Project Charter

Tools & Techniques

Project Plan

Project Management process

Project Organization Structure

Project Methodology

Lets review page 24 for the details of these.

..\..\Videos\Project Management\Project Management Explained

Simply.mp4 3 Minutes

Page 24

10 KNOWLEDGE AREAS OF PMBOK

19

1 of 10 – Scope Management

The process of DEFINING & CONTROLLING what is included in the project together with any scope changes to meet the client’s & stakeholders objectives.

Scope refers to ALL THE WORK that is required to complete a project successfully.

..\..\Videos\Project Management\Defining Scope for Your Team_Project - Corporate Trainer_Keynote Speaker Dana Brownlee.mp4 4 minutes

PMBOK: Project Management Body Of Knowledge

describes project management under the following

10 knowledge areas:

Page 25

9 KNOWLEDGE AREAS OF PMBOK

20

2 of 10 – Time Management

Activities are sequenced in an optimal order to achieve the project completion in the QUICKEST TIME possible through

Activity Definition ~ Activity Sequencing ~ Duration Estimation ~ Schedule development & time control.

3 of 10 – Cost Management

Projects are planned according to BUDGETS. Projects need to be completed within this constraint through

Cost Estimating ~ Cost Budgeting ~ Cash flow &

Cost Control.

Page 25

9 KNOWLEDGE AREAS OF PMBOK

21

4 of 10 – Quality Management

QUALITY is closely related to cost.

Ensure project will satisfy the need though:

Determining the Required condition ~ Quality Planning ~ Assurance, Control & Continuous Improvement.

..\..\Videos\Project Management\cost of poor quality.mp4.mp4 Minutes

5 of 10 – Human Resources Management

PEOPLE carry out projects. People are unpredictable & often unreliable, need to find most effective people to do the project through:

Organizational Planning ~ Staff Acquisition ~ Team Development.

Page 25

9 KNOWLEDGE AREAS OF PMBOK

22

6 of 10 – Communications Management

COMMUNICATION is key to good management. Ensures proper collection & dissemination of project info by:

Communication Planning ~ Information Distribution ~ Project Meetings ~ Progress Reporting & Administrative closure.

7 of 10 – Risk Management

The future is UNCERTAIN & we need to identify, quantifying & respond to RISKS through

Controlling the Risk Management Plan & being prepared for disaster recovery – have contingency plans.

Page 25

9 KNOWLEDGE AREAS OF PMBOK

23

9 of 10 – Integration Management

INTEGRATES the 3 main project management processes of Planning, Execution & Control as well as coordinating the elements from the other knowledge areas.

8 of 10 – Procurement Management

ACQUIRE goods & services from outside suppliers through

Procurement Planning ~ Solicitation ~ Source Selection ~ Contract Administration & Contract Closure.

Page 25

10 of 10 – Project Stakeholder Management

Identify key stakeholders & determines their NEEDS & EXPECTATIONS – develop strategies to involve them in decision making process

24

Role of the Project Sponsor Page 28

The role of the project manager is our main focus, but in small projects the project manager & project sponsor is often the same person, however on large projects their roles are distinctly different.

Lets review the table on pages 28 – 29 establish the difference in their roles.

AMBOK Definition:

1. The project sponsor is the person or body for whom the project is undertaken. (primary risk taker)

2. The individual representing the sponsoring body to whom the project manager reports.

3. A person or organization providing funds for the project.

25

Please use your devices to search on the internet for the role of the project manager.

The project manager's role in a nutshell is the overall responsibility for the successful planning, execution, monitoring, control and closure of a project.

http://www.projectsmart.co.uk/role-of-the-project-manager.html

A project manager is the person who has the overall responsibility for the successful initiation, planning, design, execution, monitoring, controlling and closure of a project.

http://www.projectsmart.co.uk/the-role-of-the-project-manager.html

Project managers can have the responsibility of the planning, execution and closing of any project, typically relating to construction industry, architecture, Aerospace and Defence, computer networking, telecommunications orsoftware development.

http://en.wikipedia.org/wiki/Project_manage

26

Role of the Project Manager

PMBOK Definition:

The project manager is the person assigned by the performing organization to lead the team that is responsible for achieving the project objectives.

Page 30

He is the single point of responsibility who integrates & co-ordinates all contributions & guides them to successful completion of the project.

Lets review pages 30 – 31 for the desirable project manager attributes & duties.

27

Role of the Project Steering Board Page 32

The project steering board usually consist of a small group of eminent professionals who have a wealth of knowledge & experience in the field of the company & the disciplines of the project, this enables the to foresee pitfalls & offer impartial advice on how to make the project successful.

These board members are appointed by the CEO & or board of directors & work in conjunction with portfolio managers, project sponsor & project manager.

Lets review pages 32 – 33 this details how the steering

board represents the interests of the key players in a project.

28

Project Success Page 34

The main purpose of a company & a project is to be successful. The media is quick to portray projects that are late or over budget as a failure but not all are failures.

From the project managers perspective the project success relates to deliverables:

1. Was the project delivered on time?

2. Within the set budget?

3. At the required quality?

From the project sponsors perspective the success of the project is related to:

1. Were benefits realized as set out in the business case

2. Quantifiable benefits: profit, improved brand image, increased sales etc.

29

RE-CAP = Summary Chapter 1

Discussed what you know about projects – turns out you DO KNOW something!

Defined what is a Project

Discussed Characteristics of projects

Listed the types of projects

Defined what is Project Management

Discussed the 10 knowledge areas of Projects

Defined Role of the Sponsor

Internet searched the Role of the Project manager

Touched on the Role of the Project Steering Board

Project Success

LU 2 – Chapter 2 : Pages 36 - 49

PROJECT

LIFECYCLE

LESSON 2

LU 2 - OBJECTIVES

Sub-dividing a project into phases

Compare levels of effort at each

stage of the projects life-cycle

Explain how the level of influence &

the cost of changes vary over the

project life-cycle

31

INTRODUCTION

32

The PMBOK states…. Because projects are unique &

involve a certain degree of risk, companies performing

projects will generally use a technique that enables the

project manager to subdivide their projects into sequential

project phases to provide better management control.

Each phase is organized to produce a distinct deliverable

or result.

The challenge is to group the project work into distinct

phases to enable projects to best use company resources

in order to achieve each phase according to the project

objectives & effectively implement the corporate strategy.

..\..\Videos\Project Management\The Essential Skills Series - Project Management.mp4

Page 36

WHAT IS A PROJECT LIFECYCLE?

33

The PMBOK defines project lifecycle as the series of

phases that a project passes through from its initiation to

its closure.

APMBOK says a project lifecycle is the inter-related

phases of a project, programmed or portfolio & provides a

structure for governing the progression of work.

When project lifecycle is expanded to include the

corporate strategy phases & operation phases it is often

referred to as the PRODUCT lifecycle

See Figure 2.1 on Page 37 for Project Lifecycles

Page 37

PROJECT LIFECYCLE (4 Phases)

34

1. Project Feasibility Phase:

Establishing a need or opportunity for the product, facility or service.

A feasibility of proceeding with the project is investigated & on

acceptance of the proposal moves on to the next phase.

Input: Business case, project & phase charter

Output: Project feasibility study

2. Project Definition Phase:

Uses guidelines set by feasibility study to design the product, outline

the build-method & develop detailed schedules & plans for making or

implementing the product.

Input: Phase charter & project feasibility study

Output: Project design & project plan

Page 38

PROJECT LIFECYCLE (4 Phases)

35

3. Execution Phase:

Implements the project as per the design & project plan as developed

in the previous phase, definition phase.

Input: Phase charter, Project design & project plan

Output: Certificate of completion

4. Commissioning & Handover Phase:

This stage confirms the project has been implemented or built to the

approved design & hands the project over to client for operation.

Input: Phase charter & Certificate of completion

Output: Closeout report

See page 39 for an example actual project & its phases ..\..\Videos\FUNNY VIDEO - Coca-Cola team work.wmv

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Page 38

WHAT IS PROJECT PHASES?

36

See table 2.1 on page 40 for an explanation of project

phase characteristic:

Phase deliverables

Beneficial grouping

Phase name

Sequential

Fast Track

Time Constraints

Project Control

Go / No Go Decisions

Page 40

Please review these now

PMBOK defines project phase as a collection of logically

related project activities that culminates in the completion

of one or more deliverables

LEVEL OF EFFORT

37

The project lifecycle often presents with its associated level

of effort. This is any parameter that can be measured but it

is most commonly expressed as:

MAN-HOURS or EXPENSES / costs

See Figure 2.4 on page 41 – Lets Discuss

Rate of effort clearly shows a slow build-up of effort during the initial

phase as the project is begun, designed & developed.

The build up accelerates during the construction / execution phase to a

maximum as the faces are opened up & more work can be performed.

There is a sharp decline as the work is progressively completed.

The accumulated effort is the sum of the effort to date & shows a typical

‘S curve’ profile.

Page 41

Level of Influence vs. Cost of changes

38

In the 1960s & 1970s project management tools & techniques

(CPM & Gantt charts) tended to focus on the execution phase

because of the greatest amount of effort was incurred.

But since 1980s emphasis has shifted to focused on more

front end of the lifecycle where corporate vision & values are

established to maintain competitive advantage.

See figure 2.5 it shows level of influence vs. cost of changes

Please read page 43 to understand the figure 2.5 as well as

seeing the example of ship building project & figure 2.6

showing an IT project.

Page 42 - 43

PRODUCT LIFE CYCLE

39

See page 44 – 45 for the 10 phases in a product lifecycle.

Strategy ~ Project ~ Operational stages

However if a project is a building, factory, computer system or

sports stadium, you need to look at the project from the clients

perspective – “the efficient operation of the facility & return on

investment.”

Pre-project Phase usually evolves from the work environment

or market – something that triggers the project.

..\..\Videos\NEW 2014\Top 10 Terms Project Managers Use(1).mp4

Page 44 - 45

40

RE-CAP = Summary Chapter 2

Researched Benefits of Project Management

Internet searched Project Management Associations

Discussed the Project Life-Cycle

Reviewed on all 4 phases of a Project

Defined Project Phases

Explained Characteristics of Project Phases

Level of Effort as a parameter in Projects

Level of Influence vs. cost of changes

PRODUCT Life-Cycle (Cradle to Grave)

41

Please complete at home the 3.6 Revision exercise 2, Question 2.1 in your manual on Page 64.

By consulting a variety of resources, identify at

least five (5) benefits of the project management

approach.

We will discuss next lesson – Please come prepared with your answers next class.

You will need to find this information in other sources, remember to reference your sources & web sites!

REVISION – LU 1 - ICE 1

BENEFITS OF PROJECT MANAGEMENT

42

OTHER WEB SITES: www.pmi.org/.../Value%20of%20Project%20Management_FINAL.ashx http://www.brighthubpm.com/project-planning/2350-the-top-ten-benefits-of-project-management/ www.brighthubpm.com www.mnp.ca www.westerncape.gov.za/text/2009/.../project_management_approach

Benefits of Project Management approach.docx

12 BENEFITS OF PROJECT MANAGEMENT

43

Fast Tracking Brings a product to market quickly before competitor.

Schedule Gantt Chart Communicates the what, where, when & who of a project

Project Integration Co-ordinates & integrates the contribution of all the project

participants

Reporting Interfaces Planning & controlling systems data base can be structured around

Work Breakdown Structures (WBS) or project reporting around

Organisation Breakdown Structures (OBS) for corporate reporting.

Response Time Timely response on projects is essential for effective control.

12 BENEFITS OF PROJECT MANAGEMENT

44

Trends Projects are best controlled by monitoring the progress trends of

time, cost & performance. Trends within the organisations

functional areas need to be communicated to the project

manager.

Procedures planning & control system enables the project manager to

develop procedures & work instructions which are tailored to the

specific project needs.

Project Management Office (PMO) Offers a center for project management excellence.