Project Management Project Management Eng. Mosab Tabash
Project Management Eng. Mosab Tabash. Project Management Introduction to Project Management Lecture 01.
Jan 13, 2016
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Project ManagementProject Management
Eng. Mosab Tabash
Project Management
Introduction to Project Management
Lecture 01
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.3
Agenda
Introduction What is a project? Project characteristics Project types Project failure causes Project success factors Project Management History of project management Project management profession
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.4
Statistics
The U.S. spends $2.3 trillion on projects every year, 25% of GDP.
The world as a whole spends nearly $10 trillion of its $40.7 trillion gross product on projects of all kinds.
More than 16 million people regard PM as their profession.
On average, a project manager earns more than $100,000 per year.
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.5
Statistics
*The Standish Group, “CHAOS 2001: A Recipe for Success”
More than half a million new IT application development projects were initiated in USA during 2001, up from 300,000 in 2000.*
Famous business authors and consultants are stressing the importance of project management.
Tom Peters writes in his book, Reinventing Work: the Project 50, “To win today you must master the art of the project!”
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.6
Production Systems
Production systems: Mass production Batch production Project (non-repetitive) production
Project production is used for one-off, non-repetitive items. No previous learning curve on which to rely High levels of complex management planning and control may be
required.
A project is an instrument for achieving one-off changes.
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.7
What is a Project?
Examples of projects Split the atom Chunnel between England and France Introduce Windows XP
“Projects, rather than repetitive tasks, are now the basis for most value-added in business”
-Tom Peters
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.8
What is a Project?
“A project is a temporary endeavor undertaken to create a unique product, service, or result”
(PMBOK® Guide 3rd Edition, p. 5)
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.9
What is a Project?
Elements of Projects
Complex, one-time processes
Limited by:
Budget
Schedule
Resources
Developed to resolve a clear goal or set of goals
Customer-focused
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.10
Programs are often confused with projects. are larger and often contain a series of related
projects. last longer and may not have a definite end point. Example:
NASA’s space program as a whole includes a number of smaller programs.
Each of these smaller programs contains a series of projects
What is a Program
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Characteristics of a project
It involves a single, definable purpose, product or result.
It usually has defined constraints or targets.
It uses skills and talents from multiple professions /
organizations.
It requires resources, often from various areas.
It is unique.
It is somewhat unfamiliar.
It is a temporary activity.
It can be of a long or short term duration.
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.12
Characteristics of a project
It is part of the process involved in working to achieve a
goal.
It is part of an interlinked process.
It is generally of secondary importance to the
organization.
It is relatively complex.
It should have a primary sponsor and/or customer.
It involves uncertainty.
Can be large or small task.
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.13
Characteristics of a project
Project goal should be SMARTE
Specific
Measurable (Evaluation : defined criteria)
Accepted (distributed Information)
Realizable
Temporal (fixed delay)
Ethical
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Process
1. Repeat process or product
2. Several objectives
3. On-going
4. People are homogeneous
5. Systems in place
6. Performance, cost, & time known
7. Part of the line organization
8. Bastions of established practice
9. Supports status quo
Project
1. New process or product
2. One objective
3. One shot – limited life
4. More heterogeneous
5. Systems must be created
6. Performance, cost & time less certain
7. Outside of line organization
8. Violates established practice
9. Upsets status quo
Process & Project Management
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.15
Project Types
Most of the projects were in construction
Today projects cover different areas: IT development
New product
Merger and acquisition
Searching a new drug
Marketing campaign
Web site
…
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.16
Project Types
Defined project Open project
Project manager Dedicated to the project
Initiative
Project team Responsibilities and tasks are clear
Group of interested people
Finance A sponsor Auto-finance
Cost Cost system No clear cost system
Phases and activities Determined Not determined
Project management applicable Not applicable
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.17
Major Causes of Project Failure
Identify 5 key causes of project failure
10’ for completing the Exercise
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Major Causes of Project Failure
The project is a solution in search of a problem
Only the project team is interested in the result
No one is in charge
There is no project structure
The plan lacks detail
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.19
Wrong project decision process
Insufficient budget and/or resources
Lack of communication
Straying from original goal
The project is not tracked against the plan
Major Causes of Project Failure
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.20
Major Causes of Project Failure
Process? Where is the process?
Because management said so !
Because marketing / sales promised the client !
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.21
Project Success Factors
Identify 5 key project success factors
10’ for completing the Exercise
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Senior Management support
Stakeholders are identified
Stakeholders expectations are known and met
Clear statement of requirements
There is a clearly stated purpose and a sound plan
Goal and objectives are understood and communicated
A constructive goal-oriented culture
User involvement
Hard-working, focused team
Project Success Factors
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.23
Technically competent team
Effective (and committed) team
Excellent communication
Trust
Using project management processes
Quality management
Project Success Factors
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.24
Information Technology Project “view”
Software & hardware projects fail at a 65% rate
31% IT projects were cancelled before completion
53% were completed, but were over-budget, over-
schedule, and did not meet the original requirements
47% of IT projects delivered but not used, 29% paid for
but not delivered; 19% abandoned
Average cost overrun is 45%; schedule overrun is 63%;
with only 67% of originally contracted features
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.25
IT Project Success Factors
According to the Standish Group’s report “CHAOS 2001: A Recipe for Success,” the following items help IT projects succeed, in order of importance: Executive support User involvement Experienced project manager Clear business objectives Minimized scope Standard software infrastructure Firm basic requirements Formal methodology Reliable estimates
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.26
Organizational Commitment
If the organization has a negative attitude toward
IT, it will be difficult for an IT project to succeed
Having a Chief Information Officer (CIO) at a high
level in the organization helps IT projects
Involving non-IT people with IT projects also
encourages more commitment
IT Project Success Factors
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.27
Improving the likelihood of success
Socio-technical Approach Cooperation between developers and users
Project Management Approach Depending more on processes and infrastructure Resources management Delivering the outcomes in a professional way as expected Coping with greater internal and external competition Improving efficiency and effectiveness
Knowledge Management Approach lessons learned best practices
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.28
The 2001 Standish Group Report Showed Decided Improvement in Project Success
Time overruns significantly decreased to 163%
compared to 222%
Cost overruns were down to 145% compared to 189%
Required features and functions were up to 67%
compared to 61%
78,000 U.S. projects were successful compared to
28,000
28% of IT projects succeeded compared to 16%
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.29
Why the Improvements?
"The reasons for the increase in successful projects vary. First, the average cost of a project has been more than cut in half. Better tools have been created to monitor and control progress and better skilled project managers with better management processes are being used. The fact that there are processes is significant in itself.“*
*The Standish Group, "CHAOS 2001: A Recipe for Success" (2001)
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.30
Projects and Management
Projects require a unique form of management. Project management is being applied across all
industry sectors. Project management is, in essence, the general
management of organization. Management skills include:
Financial awareness Marketing appreciation Technical knowledge Planning skills Strategic awareness Quality management
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.31
Project Management
PMI definition of Project Management:
“Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements”
PMI*, Project Management Body of Knowledge (PMBOK® Guide), 3RD Edition, p. 8
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.32
Project management is a method and/or set of techniques based on the accepted principles of management used for planning, estimating and controlling work
activities according to the project specifications.
PM is about achieving time, cost and quality targets, within the context of overall strategic and tactical client requirements, by using project resources.
A discipline evolving towards a profession
Project Management
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.33
Project Management
Project Management and Other Disciplines
Much of the knowledge needed to manage projects
is unique to the discipline of project management
Project mangers must also have knowledge and
experience in
General management
Specific industry
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.34
Project Management
Planning, gathering and managing the resources
needed to achieve particular goals and objectives
within defined time and budgetary constraints
MANAGEMENTRESOURCES
QUALITYQUALITY
TIMETIME COSTCOST
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.35
Project Management
Quality increaseTim
e inc
reas
e
Cost increase
BA
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.36
The Triple Constraint of PM
Choose 2
Good – cheap - Fast
What to do? Dynamic equilibrium How long? How does it cost?
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.37
The Triple Constraint of PM
Every project is constrained in different ways by its Scope: What is the project trying to accomplish? Time: How long should it take to complete? Cost: What should it cost?
It is the project manager’s duty to balance these three often competing goals
For each project, know which parameters are fixed and which ones are variable?
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.38
The Triple Constraint of PM
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.39
Project Stakeholders
A stakeholder is a person who has a business interest in the outcome of a project, or who is actively involved in a project.
Stakeholders take on various roles and responsibilities on projects.
Stakeholders may have a positive or negative influence on a project.
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.40
Sponsor If the sponsor is outside of the company, such as a
customer, the duties listed here may be his responsibility: Has the financial resources for the project. Has ultimate responsibility for project success. Signs on all planning documents and change requests. Authorizes team to use resources. Champions and mentors the project manager and team. Reviews progress and quality.
Project Stakeholders
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.41
Customer
The customer may be multiple individuals or companies
with conflicting requirements and specifications:
Takes delivery of the project output.
Pays for the project output.
Defines needs for the project output.
Project Stakeholders
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Project Manager The individual responsible for managing all aspects of the
project. The project manager: Works with stakeholders to define the project. Plans, schedules, and budgets project activities with team input. Works with the team to carry out project plans. Monitors performance and takes corrective action. Keeps the sponsor and the stakeholders informed. Requests and documents scope changes. Acts as a liaison between the project team and other
stakeholders.
Project Stakeholders
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Project team members Project team members (may include internal and/or external
resources) The individuals who work with the project manager to carry out
plans and produce the project work results.
Project management team The project team members who perform project management
activities.
Influencers Individuals who are not involved with acquiring or using the
project’s product, but have enough power in the organization to influence the project’s outcome.
Project Stakeholders
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.44
Working with Stakeholders Stakeholders have different interests, needs, and priorities.
They may have different opinions about what the project should be trying to accomplish, or what a successful outcome might be.
Therefore, it is important to identify all of the stakeholders as early as possible in the initiation process.
Once you have identified the stakeholders, learn what their needs are and get them involved in defining project parameters and success criteria.
While it may be difficult to negotiate to a consensus early in the project, it is far less painful and costly than getting to the end of the project only to learn that someone’s needs were not met or were misunderstood.
Project Stakeholders
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.45
Project Selection Criteria
Project selection criteria are the standards and measurements an organization uses to select projects.
The organization’s strategic goals provide a source for at least one dimension of selection criteria. Any project selected should be clearly linked to one or
more strategic goals. Other selection criteria may be qualitative or quantitative.
Qualitative criteria deal with the project’s fit with the organization’s capabilities.
Quantitative criteria may specify financial targets that the project must meet.
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.46
Capital Budgeting Capital budgeting
is a method of quantitative analysis that is frequently used if the project is large or likely to involve the purchase of fixed assets.
In these cases, the organization may use targets such as payback period, discounted cash flow, and net present value (NPV).
Payback period The amount of time it will take to recoup the project
investment. Does not take into account the cost of capital, which is also
called hurdle rate.
Project Selection Criteria
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.47
Capital Budgeting Discounted cash flow
The value of the investment, discounted to take into account the time value of money .
This technique looks at the present value of an investment by deducting the amount of earnings required to cover the cost of capital from the expected return.
Net present value (NPV) The present value of an investment minus the Initial investment. A negative NPV signals a poor investment risk.
Internal rate of return (IRR) The discount rate that makes the NPV of the future cash return equal to
the initial capital investment. A favorable IRR should be higher than the hurdle rate.
Project Selection Criteria
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Example Comparing Two Projects (NPV and IRR)
Project Selection Criteria
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History of Project Management
Historical legacy Pyramids / Roman aqueducts Great Wall / Inca/Mayan temples
Late 1800’s – Industrialization conversion from agrarian to industrial organizations evolving management concepts
1900’s - Large-scale plants and organizations Taylor’s “Scientific Management” established basis for work measurement and production
scheduling
1917 - World War I logistics Henry Gantt (Gantt chart) production scheduling and monitoring
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.50
History of Project Management
1940’s World War II Manhattan Project - reinforced importance of critical scheduling process flow diagrams
1950’s - Scheduling tools 1957 CPM (Critical Path Method)
Dupont - scheduling 1958 PERT (Program Evaluation and Review Technique)
U.S. Navy Polaris missile program
1960’s - Large scale applications Massive government contracts (Vietnam, nuclear power plants, NASA
Apollo) required computer aided planning and control 1961 - IBM first to use PM commercially 1968 combined in a Graphical Evaluation and review Technique
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.51
History of Project Management
1970 - Earned Value concept developed for monitoring schedule and cost
1980’s – Computerization 1988 Association for Project Management (APM) UK produced its
Body of Knowledge
1990’s - Standardization 1996 British Standards– BS6079 1997 European International Standard - ISO10006
2000’s – Certification 2004 Project Management Institute (PMI)
Project Management Body of Knowledge
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Project Management Framework
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Project Management Knowledge Areas
1. Project integration management
2. Project scope management
3. Project time management
4. Project cost management
5. Project quality management
6. Project human resource management
7. Project communication management
8. Project risk management
9. Project procurement management
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.54
Scope Management
Includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully.
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.55
Time Management
Includes the processes required to accomplish timely completion of the project.
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Cost Management
Includes the processes involved in planning, estimating, budgeting, and controlling costs so that the project can be completed within the approved budget.
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.57
Quality Management
Includes all the activities of the performing organization that determine quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken.
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.58
Human Resource Management
Includes the processes that organize and manage the project team.
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.59
Communications Management
Employs the processes required to ensure timely and appropriate generation, collection, distribution, storage, retrieval, and ultimate disposition of project information.
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.60
Risk Management
Includes the processes concerned with conducting risk management planning, identification, analysis, responses, and monitoring and control on a project. Increases the probability and
impact of positive events and decreases the probability and impact of events adverse to the project.
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.61
Procurement Management
Includes the processes to purchase or acquire products, services, or results needed from outside the project team to perform the work.
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.62
Integration Management
Includes the processes and activities needed to identify, define, combine, unify, and coordinate the various processes and project management activities within the project management process groups.
Dr. Iyad Zoukar ©–SVU–ISE–PM–S09–PM–Lecture 01 1.63
The WBS is on the left, and each task’s start and finish dateare shown on the right using a calendar timescale. Early GanttCharts, first used in 1917, were drawn by hand.
Sample Gantt Chart
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Each box is a project task from the WBS. Arrows show dependenciesbetween tasks. The bolded tasks are on the critical path. If any tasks on thecritical path take longer than planned, the whole project will slip unless something is done. Network diagrams were first used in 1958 on the Navy Polaris project, before project management software was available.
Sample Network Diagram
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Why do we learn project management?
It is different from system analysis
It will allow you to apply all the knowledge you have
learned in, such as programming, data management,
and system analysis, into the practices
But more – management
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