Download - BADM 318
What is Project Management?
• “The application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed shareholder needs and expectations from a project” – Project Management Institute (PMI)
What is Project Management?
• “A method and a set of techniques based on the accepted principles of management used for planning, estimating, and controlling work activities to reach a desired end result on time, within budget, and according to specification.” - Weiss and Wysocki, 1992
What is Project Management?
• “Maintaining cost, schedule and technical performance on a project.” - Santarossa, 2004
What is Project Management?
• “A systematic, risk management approach to proactively guide projects to improve chances of success”
Project junkie
“A growing band of professional gypsies whose careers consist of a series of independent projects”
PMI
• More than 500,000 members
• 170 counties
• Most popular PM designation
• Great for international work
West Coast B.C. Project Management Association
• Established in 1979
• PMBOK written by B.C. member
• 700 members
PM Careers in B.C.
• Software development
• Construction
• Engineering
• Environmental
• Video game
• Film
Project characteristics
• An established objective• A defined life span with a beginning and
an end• Usually the involvement of several
departments or people• Typically, doing something that has never
been done before (unique)• Specific time, cost and performance
objectivesSource: Gray, 2004)
Programs versus Projects
• Program Defined– A series of coordinated, related, multiple projects that
continue over an extended time and are intended to achieve a goal.
– A higher-level group of projects targeted at a common goal.
– Example:• Project: completion of a required course in project
management.• Program: completion of all courses required for a
business major.
Comparison of Routine Work with Projects
TABLE 1.1
Routine, Repetitive Work
Taking class notes
Daily entering sales receipts into the accounting ledger
Responding to a supply-chain request
Practicing scales on the piano
Routine manufacture of an Apple iPod
Attaching tags on a manufactured product
Projects
Writing a term paper
Setting up a sales kiosk for a professional accounting meeting
Developing a supply-chain information system
Writing a new piano piece
Designing an iPod that is approximately 2 X 4 inches, interfaces with PC, and stores 10,000 songs
Wire-tag projects for GE and Wal-Mart
Sgt. York Example
• More than one billion to build an air defense weapon that shot down a “port-a-potty”
Why do projects fail?
• List all the main reasons why you think projects fail
• Hint: Think of a large scale project (e.g. 2010 Olympics, RAV line) and think about possible reasons these projects could “fail”
Chaos Report – Exceeding Budget
Cost Overruns % of Responses Under 20% 15.5% 21 - 50% 31.5% 51 - 100% 29.6% 101 - 200% 10.2% 201 - 400% 8.8% Over 400% 4.4% Study of over 8,000 IT projects by Standish group
Over 50% of IT projects will go over budget by > 51%(e.g. $1.5 M instead of $1 M!)
Chaos Report- Exceeding schedule
Over 2/3rds of all IT projects will exceed their schedule by > 51%(e.g. 18 months instead of 12!)
Time Overruns % of Responses Under 20% 13.9% 21 - 50% 18.3% 51 - 100% 20.0% 101 - 200% 35.5% 201 - 400% 11.2% Over 400% 1.1%
Chaos Report- Features / functions not met
Less than 50% of all IT projects will deliver 75% or more of the featuresand functions that were promised
% of Features/Functions % of Responses Less Than 25% 4.6% 25 - 49% 27.2% 50 - 74% 21.8% 75 - 99% 39.1% 100% 7.3%
Interthink Consulting (2002)
• In survey of over 600 organizations, found that most companies don’t have an effective or consistent approach to managing projects
• Lots of inexperienced people managing projects but this is changing…
Coplan and Company (2003)
•Inadequately defined requirements.•Failure to divide the IT project plan into specific measurable deliverables.•Vendor failure to fulfill RFP requirements.•Lack of risk and quality management plans.
Coplan and Company (2003)
•Negotiating team with no IT experience and implementation contracts.•Vendor staff with inadequate system implementation experience.•Pressure to convert, implement and accept new system too quickly.•Inadequate acceptance test.
Why Projects Fail SummaryItem Success Criteria Points
1 User Involvement 19 2 Executive Management Support 16 3 Clear Statement of Requirements 15 4 Proper Planning 11 5 Realistic Expectations 10 6 Smaller Project Milestones 9 7 Competent Staff 8 8 Ownership 6 9 Clear Vision & Objectives 3
10 Hard-Working, Focused Staff 3 TOTAL 100
Source: Standish Group (Chaos Report)
70% of success criteria rely on the management plan and 30% on people duringthe execution phase!
How big is Canadian PM sector?
• Write a list of all the major Canadian projects that are currently being implemented or that will soon be implemented
• What percentage of Canada’s GDP do you think uses project management methodology?
Project Management in Canada-- Construction industry by 2004 forecast
Sector % Share $ billion Residential 35 45,045 Non-residential 17 21,879 Engineering 32 41,184 Repair 15 19,305 Other 1 1,287 Total 100 128,701
Source: CCA, March 2004
Project Location Value, $ billion Status Syncrude Oil Sands Plant Expansion
Fort McMurray, Alberta 7.17 Under construction
Alaska Natural Gas Transportation Pipeline
Yukon, Northern B.C., Northern Alberta
6.00 Announced, project to commence in 2005
Road and Rail Expansion Montreal, Laval 6.00 Under construction Canadian Space Agency Centre
St. Hubert, Quebec 4.00 Under construction
Expansion of Pearson Airport
Toronto, Ontario 4.00 Under construction
Pollution Control Upgrades
Toronto, Ontario 3.18 Under construction, upgrades completed by 2010
Long Lake Project Oilsands Upgrading
Long Lake, Alberta 3.00 Announced, project to commence in 2004
Concord Pacific Place Redevelopment
Vancouver, BC 3.00 Under construction
Mackenzie Valley Natural Gas Pipeline
Mackenzie Valley, N.W.T., Northern Alberta
2.70 Announced
Voyageur Oilsands Development
Fort McMurray, Alberta 2.50 Announced, project to commence in 2004
PM is a key methodology used to manage at least 12% of the Canadian GDP!
Largest Canadian projects as of November, 2003
Management Plan -- “the road map” used to execute project
1. Define the project- Obtain approval to create a detailed project plan
2. Define the work3. Create a schedule baseline4. Create a budget baseline5. Create a technical performance baseline6. Obtain approval of the detailed project plan
Management Plan
Next most important thing that a management plan does is to create a cost, schedule and technical performance baseline to measure against during the project execution phase.
•Is the project ahead of behind schedule?•Is the project over or under budget?•Do the project deliverables meet the technical requirements?•Is the project living up to contractual requirements?