Download - Implementing Projects (2)
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Implementing projects
Project planning 1 (Scheduling and Resourcing)
Project planning 2 (Quality and Risk) Change and Conflict
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Project planning 1
(Scheduling and resourcing)
Learning objectives
Time planning
Scheduling
Budgeting
Resourcing
Reading from the set text
Chapter 5
Chapter 6
Chapter 7 (7.1 7.4)
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Ready, Fire Aim
Tom Peters well known business author and management guru
suggests that for most organisations planning almost never cuts
implementation time
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Formulating the plan
Those involved in developing the plan can include;
The sponsor or senior management
The project manager
The project team
A stakeholder committee
A planning group
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Content of plans
The plan seeks to address the following questions;
What are we trying to achieve ?
Who needs to be involved, when and what is their role ?
What resources are needed and when ?
When is the result required ?
In what order do events take place ?
What are the critical milestones ?
How will we control activities ? What could go wrong ?
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Content of the plan
Having asked the questions the plan is the document(s) which provides the answers;
Project schedule
- activities
- dependencies
- milestones
- critical path
Resource requirements
- project team
- training
- I.T.
- finance
- equipment etc.
Monitoring and control
- methods
- communication
- reporting
- slippage
Risk management methods
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Planning/diagnosing complex situations
What
How
clear
clear unclear
unclear
Situationtypes
questspainting bynumbers
movies lost in thefog
Winter 2006
Adapted from Obeng 1994
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Activity analysis
Most plans derive from an understanding of what has to be done.
Therefore we need to;
Identify tasks (or phases)
Establish durations
Identify dependencies
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Time planning
To establish an effective plan for time it is necessary to;
Estimate durations
Map networks or graphical representations
Establish schedules
Understand constraints
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Estimating time
When establishing time estimates project managers should;
Understand the level of accuracy that is required
Have classified tasks based upon prior experience
- familiar
- similar
- new
Understand the uncertainty of estimates and when they are morelikely to be inaccurate
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Project network techniques
The value of producing network charts and diagrams is threefold;
Aids project planning
Aids decision making
Enables communication of plans and decisions
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CPM (Critical Path Method)
and Pert (Programme Evaluation and Review Technique)
Activity on Arrow (A-o-A) or Activity on Node (A-o-N)
Handles inter-relationships between activities
Identifies critical activities that determine project duration
Conventions
Time flows left to right
Events are numbered left to right
No event can occur until all the activities leading to it are complete
No activity can start until the preceding event has occurred
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A
B
C
D
E
F
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18
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(F=1)
(F=2)
EET
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GANTT Charts
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Comparison of Networks and Bar Charts
Complexity
Training required
Ease of understanding
Operational planning
Use for control
Shows relationships
Plans resources
CPM/PERT GANTT
high low
yes minimal
poor good
no yes
poor good
yes can do
no can do
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Scheduling
Schedules are based upon;
Activities sequence (network logic)
Activities duration (time estimates)
Resource capability
Resource availability and capacity
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Project Name;
Date;
Task Number;
Resources Person to
contact
How many/much
needed
When needed Check if
available
Manpower
Money
Machinery
Materials
(Methods)
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Resource loading
The stages involved are;
The network diagram is annotated with the resource requirements
for each activity
The diagram is converted to calendar form, i.e. the activities aredrawn against a real time base for a GANTT chart
The demands for resources are summed vertically down the chart
for each time period
A load diagram is produced for each resource, in the form of a
histogram spanning the project time scale
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Resource levelling
Project managers benefit when resources are levelled by;
Spending less time managing fluctuating resources
achieving regular arrangements with materials suppliers
fewer errors in achieving the correct resource levels
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Priority rules
Shortest task first
Most resources first
Minimum float first
Most successors first
Last tasks as late as possible
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Project cost
Clear analysis of project activities and associated costs contribute to
an organisations performance in two ways;
They enable us to check upon and control the efficiency of the
project itself
They enable us to evaluate the likely cost of future projects more
effectively
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Mistakes on estimating costs
The number of things that may produce errors in estimates is almost
without limit, however some things occur with particular frequency;
Failure to account for learning curves
Changes in resource prices
Failure to account for the time value of money/resources
Failure to account for wastage and spoilage
Inadequate collection and analysis of data
Los of a key resource (e.g. technical specialist)
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Project budgets
Cannot be based upon previous track records and data
Should not possess slack to permit internal adjustments
Should be established at the outset of the project
When using budgets as a control mechanism, the project manager must;
Be familiar with the organisations financial and management accounting
systems
Allocate unique identifiers to each project task for logging itens of
expenditure
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Developing the project budget
Top down budgeting
Senior managers estimate overall project costs(based upon judgement and experience)
Overall cost estimate are broken down by less senior managers(into budgets for specific work packages)
Broken down further by junior mangers(into successively finer detail)
The project budget
Indirect costs, contingency and profit margins are added
Task budgets are aggregated
(to give total direct costs)
Estimates are improved(by applying analytical and statistical methods)
Estimates are made for labour and materials(based on the work breakdown structure)
Bottom up budgeting
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Project planning 2
(Quality and risk)
Learning objectives
The quality planning process
Organisational orientation and
quality
Risk management
Assessing risk
Reading from the set text
Chapter 7 (7.5 onwards)
Chapter 8
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Orientation and quality
Starting point Focus Means Ends
Production Products Selling and build Profit through
volume
Markets Customer needs Co-ordination
communication
Profit through
satisfaction
Adapted from Kotler
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Dominant activity and quality
Organisationalquality
definition
Customerrequirements
Manufacturing
paradigm
Service
paradigm
Project quality
definition
Conformancesystems
Performancesystems
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Quality definition
Quality in projects may therefore be seen as;
Products and designs
Satisfiers of needs
In many cases projects represent a little drawn from each approach, indoing so they need to plan for;
Core product/output
Augmented product/output
Performance quality
Conformance quality
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Quality and stakeholders
Is a piga pig?
What is a pig ?
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Value creation
Specification
Cost Time
Value/benefits
Deliverables Delivery
Classical view of projects
projects share three basic goals;
delivery on time, to specification, within budget
Business view of projects
satisfying customers and contributing
to strategic intent
Winter 2006
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Project risk
There is an element of risk in all projects. Risk management occurs
in three stages;
Risk identification (what are the risks?)
Risk assessment (how likely are they?)
Risk analysis (what will be their impact?)
Risk elimination/control (can we minimise this?)
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Risk identification
Risk occur through;
Inaccurate analysis of the project dynamics or change of
specification
Inappropriate choice(s) of methodology, resources, technology,
equipment etc.
Unplanned (unforeseen) occurrences
External factors beyond the control of the projects leadership
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Internal and external sources of risk
Quality/specification
Cost Time
External factors
the Macro environment
PEST(LE)
External factors
the competitive environment
customers, competitors
External factors
the project environment
contractors, weather, suppliers
Internal factors
design, resources, control
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Control point identification charts
(what if? Analysis to solve project problems)
Task What could go
wrong?
How/when would I
know?
What could I do?
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Linking common project problems and solutions
Problem Possible solution
Loss/ absence of ateam member
Vendor delays insupplies, materials,
equipment
Unavailability ofresources
Budget slippage
Profile the skills andknowledge sets,
develop an alternative
Vendor certification andassurance,
multi-sourcing,incentivise/penalise
Plan contingencies,shift resources,
reschedule, buy-in
Offer incentives for costsavings, descope
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Risk and project design
If we are able to identify potential risk during the definition of the
project we can hope to address it during the design stage;
Eliminate the risk
Reduce the risk
Share the risk
Control the risk
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Change and Conflict
Learning objectives
Change and resistance
Differences within projects
Conflict handling styles
There is no set reading for this
section, however you are
encouraged to access change
and conflict articles/literature
from other sources. In
particular writings by Noel
Tichy and Karl Lewin.
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The nature of change
When considering change it is important to be aware of two dimensions;content and process
Content
What is to be changed? The project purpose.
- systems
- resources- structure
- culture
Process
How is it to be changed? The project design
- with consultation and involvement- by imposition
- gradually
- quickly
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Resistance to change
Resistance occurs in a number of forms;
Rational resistance
- a logical assessment that the project will fail.
- a calculation that the costs to them outweigh the benefits.
- do not agree/accept the purpose of the project.
Emotional resistance
- fear of uncertainty
- need for functional structures and lines of authority
- low trust of stated project aims
Political resistance
- the project threatens status/power- the project reallocates resources
- peer group pressure
Adapted from Plant 1987 and Hicks 2004
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Overcoming resistance
Driving forces(forces for change)
Restraining forces(forces against change)
Lewins equilibrium
Project managers can overcomeresistance by listing each set of forces
and devising strategies to strengthen driving forcesand weakening resisting forces
It is not necessary to changesurvival is not mandatory
Demming
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Differences within projects
Handy outlines three types of difference that might arise within
organisations, these might equally be applied to projects;
Argument
Competition
Conflict
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Outcomes of conflict
Positive outcomes;
Better ideas produced
People forced to seek new
approaches Problems brought to the
surface
Clarification of views
Stimulation of interest and
creativity
Tests capabilities
Negative outcomes;
Some are defeated and
demeaned
Distance between people isincreased
Mistrust and suspicion
Focus on self interest
Resistance of teamwork
Loss of team members
Schmidt
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Conflict in projects
Thamhain and Wilemon suggest that conflict in projects arises from;
Schedules
Priorities
Staffing/labour
Technical issues
Administrative procedures
Cost estimates and budgets
Interpersonal issues and relationships
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Conflict and the project life cycle
It is possible to map conflict hotspots against the life cycle and
identify what might be triggers;
Different goals and expectations
Involvement and contribution
Responsibility and authority
Personalities and enmity
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Stages of conflict
Overt
conflict
Aftermath of
previous conflict
Perceived/felt
conflict
Latentconflict
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Conflict handling styles
Style Appropr iate use
Competition When quick action is vital
When important but unpopular actionis vital
Against those who take advantage ofnon competitive behaviour
Collaboration When both sets of concerns areimportant
To merge different perspectivesWhen mutual interests can beestablished
Avoidance When an issue is trivial
When potential disruption outweighsbenefits
When others ca resolve conflict moreeffectively
Accommodation When youre wrongTo minimise loss
When harmony and stability areimportant
Compromise When goals are important but notworth disruption
To achieve a temporary settlement
To arrive at solutions under time
pressure