Project Manangement Introduction

Project Management

Introduction

B y ASIM SHAHZAD

Hope is not a strategy…

Implementation is never an accident. It is the result of high intention, sincere effort, intelligent direction and skillful execution. It represents the wise choice of many alternatives.

Donald G. Giles, US Steel

Fail15%

Over time or over budget

51%

Succeed34%

Your Projects Cannot Afford to Fail

• 66% of all IT projects fail, come in over budget or run past the original deadline

• Every year, $55 billion is wasted on failed IT projects in the U.S.

• Business Impacts:– Reduced profitability– Inability to fund new

projects– Poor customer satisfaction

Source: Chaos Chronicles 2003, The Standish Group

What is a Project ?• A project is a sequence of temporary, unique, complex and connected activities having one goal or purpose and that must be completed by a specific time, within budget, and according to specifications.

• Creation of Business Value – Important

• Fulfilling the Needs

“Projects are the Building Blocks of an Investment Plan” Types of Investments?

Azhar & Sassone

• 1. A project is a one-time effort with• specific objectives and deliverables. • 2. A project requires a commitment of• personnel, capital, and other • resources over a period of time. • 3. A project has a defined start and end• date. • 4. A project is executed by an organized • team. • 5. A project has a certain amount of • complexity and is not "business as usual" • (operations).

• A strategic project is focused on expanding or changing your organization's objectives, capabilities, or direction in order to achieve a higher level of success. (e.g., build a new facility; reengineer a business process or workflow.)

• A tactical project is designed to produce a specific deliverable (e.g., develop a new sales brochure; choose a replacement for an aging computer).

All projects can be described using a four-phase lifecycle.

First Phase:• In the first phase, a need is identified by the client, customer

or other stakeholder. This results in a process to describe and define the needs and requirements, sometimes soliciting information or proposals from vendors, contractors or consultants. We can call this phase Initiation.

Second Phase

• The second phase is characterized by the development of proposed solutions. This can be by a structured bid form which requests specific items of information related to project costs, staffing, timescales, description of the activities, compliance to technical standards and key deliverables.

• The third phase is when the project is actually executed covering detailed planning and Implementation.

• The final phase is terminating the project or Closure. In some cases this is marked with formal acceptance by the customer or client with signed documentation.

Contd….• A project is a group of activities that are to be undertaken with

limited resources to yield specific objectives in a specific time in a specific locality. A project has a specific starting point, and a specific ending point.

• An investment on which resources are used to create assets that will produce benefits over an expanded period of time.

• PMI has defines the project as single effort undertaken in order to create unique project or service.

• ISO 10006 Standard defines the project as, “unique processes, consisting of a set of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements, including the constraints of time, cost and resources”.

Project Inputs Project Output(s) Time & Cost Limits

Scope Constraint

What is a Project (Contd)• Unique Activities

– The project has never happened before and will never happen again under the same conditions.

• Complex Activities– Not simple, repetitive acts, such as mowing the lawn, running

the weekly payroll, washing the car, or loading the delivery truck

• Connected Activities– There is some order or sequence – Output from one activity is input to another.

• Temporary Activities– Start and Finish Dates

What is a Project (Contd)

• One Goal

– Projects must have a single goal as compared to a program.

• Specified Time

– Projects have a specified completion date

• Within Budget

– Projects also have resource limits (people, money, machines)

• According to Specification

– The customer or recipient expectation

– Self-imposed


• What is a Program ?

– The co-ordinated management of a system of projects to achieve a set of business objectives. A program is

different from a project. Programs are larger in scope and comprise multiple projects. Word program may also refer to a series of projects which make up one large project.

• What is a Portfolio?

– The constituent projects within a program, which will deliver the products needed to move the business forward from the current business operations to those described in the blueprint.

Project Parameters

• Cost

• Time

• Resources


• The Scope Triangle: Time, Cost, Resources

TimeCost

Resources

Scope and

Quality

Classification of Project Types

Projects can be classified as social sector and infrastructure. Some examples are:

Transportation Highways, mass transit, airportsUtilities Electric power, gas, telephonesEducation Schools, colleges, dormitoriesPublic Safety Police, fire, National guardRecreation Parks, playgrounds, historic sitesDevelopment Harbors, dams, irrigation, Research Health, space, agricultureDefense Military equipment and systemsConservation Forests, shorelines, pollution

Project Management

Project Management is an organized venture for managing projects. It involves scientific application of modern tools and techniques in planning, financing, implementing, monitoring, controlling and coordinating unique activities or tasks to produce desirable outputs in consonance with pre-determined objectives, within the constraints of time, cost, quality.

Modern Tools - Technique

• Leadership Paradigm

• PERT/CPM (Program Eval & Review Tech)

• VERT/GERT (Venture/Graphical)

• Linear Responsibility Charts

• Gantt Charts, Gozinto Charts Milestone Charts

• Work Breakdown Structures

• Project Action Plans

• Computers

What is Project Management?

“Project Management is the application of knowledge, skills, tools, and techniques to project activities to meet project objectives.”A Guide to the Project Management Body of Knowledge; The Project Management Institute 2000 Edition

The work typically involves: • Competing demands for: scope, time, cost, risk, quality

• Stakeholders with differing needs and expectations

• Identified, and often progressive requirements

What is Project Management?

Project Management can be applied to any project regardless of size, budget or timeline.

Some examples are:Developing a new product or serviceRunning a political campaignSending a probe to MarsDesigning a compensation systemNegotiating a collective agreementSetting up an e-commerce internet siteOr as in my current project – reorganization of business areas involving redesign of business processes, collapsing of roles and the introduction of new technology.

Why do organizations use Project Management?

Improved communication among project participantsIncreased understanding of the project and its purposeAbility to define and control project scopeAbility to identify, monitor, and track milestonesAccurate projection of resource requirements

- ensures that available resources are used in the most effective and efficient manner

Improved assessment and mitigation of project risk eventsIdentification and communication of problem areasPrioritization of functional and project activitiesClarification of and alignment with organizational goals

Why do organizations use Project Management?

To sum it up…..

1. Improve results Value………

2. Decrease costs

3. Improve customer service

4. Time

Project cycle by definition classifies the major stages of a project in a symmetrical manner. “planning,

implementation and evaluation”

Preparation Evaluation

Appraisal & Approval

Implementation & Monitoring

Identification

Financing

Project Life CycleThe defined Sequence of events that constitute a

project.

• Conception/selection

• Planning

• Implementation

• Control

• Evaluation

• Termination

Project Selection Models• Non-numeric Models

– The sacred cow– The operating necessity– The competitive necessity– The product line extension– Comparative benefit model

• Numeric Models:– Payback period– IRR– Discounted cash flow, NPV– Benefit Cost Ratio

What is Project Planning ?

• It is complete road-map to go from point A to B.

• Project planning is a rational determination of how to initiate,

sustain, and terminate a project

• Project planning starts with the development of a vision - the

ability to see something that is invisible to others

Why Plan a Project ?

• To eliminate or reduce uncertainty

• To improve efficiency of the operation

• To obtain a better understanding of the objectives

• To provide basis for monitoring and controlling work

Project Management Processes

• Planning provides documented executing plans

and the updates as the project progresses

Initiating Processes

Planning Processes

Controlling Processes

Executing Processes

Closing Processes

Project Planning Considerations

• Too often people perceive project planning as only techniques or concepts such as PERT, CPM, and GANTT charts. However, project planning is much wider activity with following key considerations

– Cost estimating and budgeting

– Technology strategies scheduling

– Specification of deliverables

– Resource usage estimating

– Delineation of organizational structure

– Information and control system sign

– Risk Identification

Control and Evaluation

• Discrepancies are called variances• The acceptable levels of variance should be determined at the outset of

the project• Control entails continual monitoring of project progress, while

evaluation involves periodic stock-taking• Control focuses on the details of what is occurring in the project,

whereas evaluation is more concerned with the big picture• Control activities are the responsibility of the project manager, while

evaluations are typically carried out by an individual or group not directly working on the project (so as to maintain objectivity)

Project Implementation• Procure Materials, Vehs, Equipt etc.• Establish Field Offices (Build and test Facilities)• Teams go Out to Work (Data Collection, survey etc)• Develop support requirements• Produce system• Verify performance• Modify as required

Termination• When to Terminate? Very Important• Exit Strategy (Donors are Extremely Interested)• Train functional personnel• Transfer materials• Transfer responsibility• Release resources• Reassign project team members• Sustainability Aspects• Warranty/ Guarantee

Project Manager• Project Manager is responsible for the project from cradle to

grave

• This person will take responsibility for planning, implementing, and completing the project

• The PM can be chosen and installed as soon as the project is selected for funding or at any earlier point

• PM is chosen late in the project life cycle, usually to replace another PM

Project Manager (Contd)

• The PM’s first set of tasks is typically to prepare a preliminary budget and schedule, to help select people to serve on the project team, to get to know the client, to make sure that the proper facilities are available, to ensure that any supplies required early in the project life are available when needed, and to take care of the routine details necessary to get the project moving.

Responsibilities of Project Manager

• To complete the project within time, within budget and according

to specifications

• To act as an intermediary between top management and project

team

• To obtain feedback for learning lessons

• To train and educate the project staff

FM Vs PM

• Functional manager is in charge of one of a firm’s functional departments such as marketing, engineering, or finance.

• Such department heads are usually specialists in the areas they manage.

• They are analytically oriented and they know something of the details of each operation for which they are responsible.

• They know how to analyze and attack a problem.

FM Vs PM (Contd)

• A PM, by contrast, is usually a generalist with a wide background of experience and knowledge. A PM must oversee many functional areas

• PM has an ability to put many pieces of a task together to form a coherent whole

• Project manager must be more skilled at synthesis• Functional manager must be more skilled at analysis• Functional manager uses the analytical approach and the PM

uses the systems approach

What is a Project Manager?

Project Management is a skill as much as it is a profession – the “Accidental Profession”.

The Project Manager is responsible for managing the project within the constraints of scope, quality, time and cost to deliver specified requirements and meet or exceed! customer satisfaction.

Competencies needed….

Additional• Process mapping• Business area analysis• Team Building / Managing People• Facilitation• Financials / business case

development• Quality Assurance

Core• Planning• Estimating• Project Tools

– MS Project– Project Workbench

• Conducting Meetings• PM Methodology

And a sense of humor!

What are the major roles on a Project?

Functional Manager

Team Members

Project Manager

Stakeholders

Sponsor

Project Participants

Functional Manager – Managers responsible for activities and

resources in a specialized department or function.

Sponsor – The internal organizational owner of the

project. Responsible for establishing the project’s priority

within their organization. Has overall responsibility for its

success.

Stakeholders – Parties involved in or being affected by the project

activities.

Team Members – staff who use their skills to contribute to the

project’s deliverables. Can report either directly or indirectly to the

Project Manager.

Project Manager – individuals with the authority and

responsibility for delivering the documented project requirements

– on time and within budget.

Project Management

Challenges

• Handling Large complex projects

Best Practices

• Proof of Concept before Actual Implementation

• Phased Execution with user acceptance per phase

• Separate environments for development, QA & Pre-Production

• Plan for external system dependency

• Joint Planning

• Senior Management Checkpoint meetings

• Separate testing and design teams for large projects

• Core Team for Subject Matter expertise and guidance

Project Management

Challenges

• Handling Quick & dirty solutions

Best Practices

• Active Participation of client PM in finalizing requirements

• Technical design for representative cases (with core team)

• Use of available open source or cost effective third party tools

• Extreme Programming / Pair Programming

• Schedule activities in parallel

Project Management

Transition - Challenges

• Full Knowledge Coverage

• Cooperation from existing teams

• Availability of SMEs

• Knowledge Management

Transition - Best Practices

• Audio-Video Recording

• Knowledge Scorecard – Certification Process

• Vendor shadowing client resources and vice versa

• Involvement of the vendor in testing/documenting the system or application

• Training of the vendor team on the application being out sourced

• Linking severance package with knowledge transfer activities

Project Organization

Functional Organization• Project is made a part of one of the functional divisions of the

firm

• Major Advantages– Maximum flexibility in the use of staff– Individual experts can be utilized by many different projects– Specialists in the division can be grouped to share knowledge

and experience.

Functional Organization (Contd)

– The functional division also serves as a base of technological continuity when individuals choose to leave the project and even the parent firm.

– Functional division contains the normal path of advancement for individuals whose expertise is in the functional area

• Disadvantages

– Client is not the focus of activity and concern

– Functional division tends to be oriented toward the activities particular to its function

Functional Organization (Contd)

– Occasionally in functionally organized projects, no individual is given full responsibility for the project.

– Response to client needs is slow and arduous

– Project issues that are directly within the interest area of the functional home may be dealt with carefully, but those outside normal interest areas may be given short shrift, if not totally ignored

– Motivation of people assigned to the project tends to be weak.

– Such an organization arrangement does not facilitate a holistic approach to the project.

Project Organization (Contd)

Pure Project Organization

• The project is separated from the rest of the parent system. It becomes a self-contained unit with its own technical staff, its own administration, tied to the parent firm by the tenuous strands of periodic progress reports and oversight

• Advantages

– The project manager has full line authority over the project. All members of the project work force are directly responsible to the PM


P rog ram M an ag er V .P . M arke tin g V .P . M an u fac tu rin g V .P . R & D

P resen d en t

MarketingManufacturingR&D FinancePersonnel

Manager, Project A

Manager, Project B

MarketingManufacturingR&D FinancePersonnel


– The lines of communication are shortened and PM

communicates directly with senior corporate management.

– The project team that has a strong and separate identity of its

own tends to develop a high level of commitment from its

members.

– Because authority is centralized, the ability to make swift

decisions is greatly enhanced.

– Unity of command exists.

Pure Project Organization (Contd)

– Pure project organizations are structurally simple and flexible which makes them relatively easy to understand and to implement.

• Disadvantages– When the parent organization takes on several projects, it is

common for each one to be fully staffed. This can lead to considerable duplication of effort.

– PM may stockpile equipment and technical assistance in order to be certain that it will be available when needed

– Pure project groups seem to foster inconsistency in the way in which policies and procedures are carried out.

– In pure project organizations, the project takes on a life of its own. Team members form strong attachments to the project and to each other.

– Worry about “life after the project ends”

The Matrix Organization

– It couples some of the advantages of the pure project organization with some of the desirable features of the functional organization, and to avoid some of the disadvantages of each, the matrix organization was developed. In fact, the functional and the pure project organizations represent extremes.

Matrix Organization

Progra m m a na ger Ma nufa cturing Ma rketing Fina nce R & D Personnel

President

PM1 3 1 1/2 1/2 4 1/2

PM2 1 4 1/4 1 1/2 1/4

PM3 0 1/2 3 1/2 1

Matrix Organization

• Advantages

– The project is the point of emphasis. PM takes responsibility for managing the project, for bringing it in time, within cost, and to specifications

– There is less anxiety about what happens when the project is completed

– Response to client needs is as rapid as in the pure project case

– Consistency with the policies, practices, and procedures of the parent firm tends to be preserved

Matrix Organization (Contd)

– Where there are several projects simultaneously under way, matrix organization allows a better company wide balance of resources to achieve the several different time/cost/performance targets of the individual projects.

• Disadvantages

– The movement of resources from project to project in order to satisfy the several schedules may foster political infighting among the several P.Ms.

Matrix Organization (Contd)

– For strong matrices, problems associated with shutting down a project are almost as severe as those in pure project organizations.

– Division of authority and responsibility inherent in matrix management is complex.

– Matrix management violates the management principle of unity of command. Project workers have at least two bosses.

Causes of Project Failure

• Projects can and do fail for many reasons that are predictable and avoidable. Projects failures fall into three broad categories: Project process-related factors, Project-related factors, and Uncontrollable factors.

• Some common project process-related factors include: too many concurrent projects, too few individuals who can manage projects effectively, poorly defined roles and reporting relationships among those

• engaged in a project, wavering priorities and resource commitments to the project,

Projects that have failed generally display several of the following characteristics:– The customer’s conditions of satisfaction have not been

negotiated.

– The project no longer has a high priority.

– No one seems to be in charge.

– The schedule is too optimistic

– The project plan is not used to manage the project.

– Sufficient resources have not been committed.

– Project status is not monitored against the plan.

Causes of Failure Contd

• No formal communications plan is in place.

• The project has lost sight of its original goals.

• There is no change management process in place. • Foreign aided projects: Sluggishness and bureaucracy of

the Government.

Project Management

- 20 Steps to Success

1. Ensure the viability of your project

2. Develop the Project Charter

Initiating

3. Establish the Project Notebook/Extranet

4. Hold the Project Kickoff Meeting

5. Develop the Project Plan5.1 Develop the Scope Statement5.2 Develop the Work Breakdown Structure5.3 Define Project Activities 5.4 Sequence Project Activities5.5 Estimate Project Activity Durations5.6 Develop the Project Schedule5.7 Estimate Project Costs5.8 Determine Resource Requirements5.9 Develop the Risk Response Plan

Subsidiary Management Plans5.a Develop the Scope Management Plan5.b Develop the Schedule Management Plan5.c Develop the Cost Management Plan5.d Develop the Quality Management Plan5.e Develop the Staffing Management Plan5.f Develop the Communications Management Plan5.g Develop the Risk Management Plan5.h Develop the Procurement Management Plan

Planning

6. Execute the Project Plan

7. Carry out Quality Assurance

8. Develop your Project Team

9. Issue Status Reports

10. Manage Procurement of External Resources

Executing

11. Control Project Changes

12. Manage Project Issues

13. Ensure Formal Acceptance of all Deliverables

14. Control the Project Scope, Schedule and Cost

15. Control the Project Quality

16. Report Project Performance

17. Control Project Risks

Monitoring and Controlling

18. Document Lessons Learned

19. Close the Project

20. Celebrate Project Success

Closing

SAP

Lessons Learned

Controlling Scope, Schedule and Cost

Project Management




Initiating





Planning






Executing












Closing

A Project to Clean the Glacier Areas of the North- Solid Waste Management Skardu Area

The value of Leadership and Teamwork

• RMS Titanic left Queenstown at 1:30pm on April 11, 1912

• Received ice warnings on April 12, 13 and six on April 14, from 9am to 9:40pm. (Not known if messages were delivered to the bridge, or ignored).

• Iceberg hit at 11:40pm on April 14, causing holes in 5 bulkheads.

• Ship finally starts sinking just after 2am on April 15.

Reference: www.titanic.com

April 11April 12April 13April 14 April 101912

Titanic

Lessons Learned

The Value of Risk Management

The importance of Communications

Project Management




Initiating





Planning






Executing












Closing

Risk Management Processes

Risk Identification

Risk Response

Planning

Risk Monitoring

and ControlRisk Analysis

Lessons Learned from the MoviesMovie Project Management Lessons Learned

The Right Stuff Team formation, right skills (on the ground and in space).

Amelie Need to test assumptions

Apocalypse Now Importance of clear objectives with no distractions from the objective. “Are we here to fight or are we here to surf?”

Flight of the Phoenix “Thinking out of the Box”

Terminator Risk Management

Fight Club Role of Principles vs. Values

Star Trek – Wrath of Khan

Need to leverage your technical experts

Lessons Learned from the Movies (Cont’d)Movie Project Management Lessons Learned

A Bridge Too Far Need for proper Risk Management, Project Governance and Scope Management.

The Incredibles Encourage Team Participation (Little boy felt he wasn’t valued and therefore sabotaged the project.

Gladiator Teamwork and Leadership; Risk Mitigation.

Thomas Crown Affair Contingency Planning, Risk Management, Needs of Team Members, Controlling Processes.

You’ve Got Mail It’s business, not personal. (Uses the Godfather example).

Field of Dreams Importance of Planning.

The Great Escape Planning – Benefits of a well planned project show up at execution.

Father of the Bride Trust your Project Manager, no matter how eccentric she (or he) may be.

Project Team

• A Project Team is thus a group of dedicated persons who work together to complete the project within time, within budget and according to the specifications

Team Efficiency = out put/ input

• What a team is capable of achieving and what it actually achieves.

Matrix Based Frictions

• Temporarily Borrowed Staff

• Staff Continuity

• Lack of Project Commitment

• Project Manager’s lack of direct control

Tweed coat management

• Because the project is, by definition, a temporary entity and must come to an end, the PM must be concerned with the future of the people who serve on the team. If the PM does not get involved in helping project workers with the transition back to their functional homes or to new projects, then as the project nears completion, project workers will pay more and more attention to protecting their own future careers and less to completing the project on time. (Shown by “S”Curve)

Matrix Based Frictions (Contd)

Communication Channels

Two people, one channel

Three people, three channels

Four people, six channels

Five people, ten channels

Poor Communication

• Information communication to project staff is very vital for project success

No. of Channels = n(n-1)/2

• Communications as an End Rather than a Means• Information Atherosclerosis

– Clogging of important information

Poor Integration

Isomorphic Team Structure

• If project team closely reflects the physical structure of deliverables

• Risk of project’s quality integration• PM functions as an integrator• Duplication, linking, styles etc to be standardized by the PM• It’s a simple structure • Best suited to independent modules• Simplicity is best suited to new comers and novices

Isomorphic Team Structure

Chapter

1

Chapter

2

Chapter

3

Chapter

4

Chapter

5

Technical Report

Team Member

A

Team Member

B

Team Member

C

Team Member

D

Team Member

E

Project Manager

Structure of the Deliverable

Structure of the Project Team

Specialty Team Structure

• Team members apply their special expertise across a wide array of tasks

• Emphasis towards their specialty and not deliverables • Responsibility is more diffused and problem diagnosis is

difficult• Integration problems are greater than those of the isomorphic

structure• It fits in nicely with matrix system

Special Team Structure

PROJECT

MANAGER

Specialist

A

Specialist

B

Specialist

C

Chapter

1

Chapter

2

Chapter

4

Chapter

3

Chapter

5

Egoless Team Structure• Egos may have ill-effects• Ego-less team structure is a truly collaborative effort that

makes it hard to find who produced what portion of the product• No leader but consensus• Team members collaborate jointly and ego problem is

minimized• Encourages interactivity and communication• Due to lack of leadership Ego-less team could drift• State of the art projects

Team Member A

Team Member B

Team Member C

Chapter

1

Chapter

2

Chapter

4

Chapter

3

Chapter

5

Egoless Team Structure

Chapter 1Chapter 3

Chapter 2Chapter 4

Chapter 5

Administrative Buffer Chief Writer Special

Assistant

Specialist A

Specialist B

Specialist C

Project Administrator

Editor

Surgical Team Approach

Demands on project staff time coming from otherproject

END OF Project Management Introduction

Thank You

Project Manangement Introduction

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