General theory and historyof Project Management

March 1st 2010

Yvet van ‘t HofBart Vermeeren

&Adien HuismanMarien Roorda

Content- What is a project?- Definition of PM- History of PM- PM Process Groups- The iron triangle (scope) 15.00-15.15 Break- The iron triangle (time &

cost)

- Project manager (case)- Project manager16.15-16.30 Break - Project vs. General

Management- When to use PM?- Questionnaire

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

What is a project?

“A project is a temporary endeavor undertaken to create a unique product, service or result” Project Management Institute

- Temporary

- Beginning, middle and end - Unique outcome

- Unique deliverable, tangible or intangible - Something new, that has never been done before

- Well defined scope - Project is supposed to achieve a specific deliverable with specific

attributes at the end

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

Definition of PM

“Project Management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements.” Project Management Institute

“Project management is the planning, organizing, directing and controlling of company resources for a relatively short-term objective that has been established to complete specific goals and objectives.” Harold Kerzner

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

History of PM

40 years of great projects (1969 – 2009)

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

History of PMThere have been projects and management since humans

worked together to build for example a shelter

- Until 1900, civil engineering projects were generally managed by creative architects and engineers

- Since WW II, formal project management discipline has emerged

- Since early 1950, apply PM tools and techniques for projects

No official starting point

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

History of PMFour different time periods - Prior to 1958: Craft system to Human Relations Administration

- Henry Gantt invented the Gantt chart- Job specification became basis of Work Breakdown Structure (WBS)- Manhattan Project (1942 – 1945)

- 1958 – 1979: Application of Management Science - Several project management tools are introduced (CPM / PERT / MRP)

- 1980 – 1994: Product center: Human Resources - PM software was available for PC

- 1995 to present: Creating a new environment - Internet was adopted

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

History of PMHenry Gantt Henri Fayol

- Born in 1861- American mechanical engineer

and management consultant- Famous for developing the

Gantt chart (1910)

- Born in 1841- French mining engineer,

director of mines and management theorist

- Five primary functions of a manager

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

PM Process Groups

The Project Wizards Guide

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

PM Process Groups

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

A process is a set of interrelated actions and activities that are performed to achieve a pre-specified set of products, results, or services

PM Process Groups

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

Project Life Cycle

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

PM Process Groups

Initiating Process Group- Consists of the processes that facilitate the formal

authorization to start a new project (or project phase)- Project description - Project manager will be selected

Two PM processes- Develop a project charter- Develop project scope statement

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

PM Process Groups

Planning Process Group- Is used to plan and manage a successful project - Output is a project management plan

21 PM processes, including- Scope planning & definition - Work Breakdown Structure (WBS)- Cost estimating- Activity definition - Risk management planning

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

PM Process Groups

Executing Process Group- Consists of the processes used to complete the work defined

to accomplish the requirements- Coordinating people- Integrating and performing activities

Seven PM processes, including- Develop project team- Information distribution

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

PM Process Groups

Monitoring and Controlling Process Group- Consist of those processes performed to observe project

execution- Monitors and controls the entire project effort

Twelve PM processes, including- Scope control- Manage project team- Risk monitoring and control

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

PM Process Groups

Closing Process Group- Includes the processes used to formally terminate all

activities of a project (or project phase)

Two PM processes- Close project- Contract closure

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

Project Management

NASA Project Management Challenge 2007

“When I think of excellence, I think of people more than things because only people can bring quality, excellence, perfection to the things that must work. It is in that light that we achieved the Apollo landings on the Moon.”

George M. LowFormer Deputy Administrator

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

Succeed a projectIn order for a project to be successful the project team must

- Open communication- Keep stakeholders informed and involved, comply with

requirements to meet stakeholders- Balance risk: technical, time, scope, cost, quality, recourses

- Use a defined approach to adapt product specifications and plans to meet project and product requirements

- Select appropriate processes within the PM-process groups

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

Project Management Plan

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

The Iron Triangle

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

Scope

- Project objectives

- Project requirements

- Project deliverables

- Cost estimate factors

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

Work Breakdown Structure

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

Break

After the break- The Iron Triangle (time & cost)- Project Manager

Back in 15 minutes

Time

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

Cost

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

Project manager

A day in the life: Construction project manager

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

Case Quantum Bank

Quantum Bank is a regional bank

In 1999, a Web site is launched for customers to check account balances and obtain information. Quantum would like to expand this website

Stacey Thomas (vice president of information systems) needs to select a project manager

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

Case Quantum BankBill Fence - Joined in 1995- Graduated at a well-respected

small private school- Degree in computer science- Ability to solve difficult

technical problems- Ability to describe concepts in

non-technical terms - Developed a Web site in 1998- Last project was on time and

budget

Andy Dover- Joined in 1995- Graduate at large public

university- Promoted to senior operations

analyst - Ability to step back from a

problem - Highly motivated self starter- Good communication and

organizational skills- Basic understanding of

Internet

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

The role of a project manager- Responsible for coordinating and integrating activities across

multiple, functional lines- The major responsibility is planning- Project manager must provide

- Complete task definitions - Resource requirement definitions - Major timetable milestones- Definition of end-item quality

- Risk management- Unknown unknowns will become known unknowns

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

The skills of a project manager- Communicative and interpersonal skills

- Becoming familiar with operations of each line organization

- General knowledge of the technology being used

- Needs to be organized

- Working well with a team

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

Project manager

“You give me an individual who has good communicative skills and interpersonal skills, and I’ll give that individual a job. I can teach people the technology and give them technical experts to assist them in decision making. But I cannot teach somebody how to work with people.”

Executive of computer manufacturer company

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

Interview

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

Project Manager

Summary of the Interview

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

- Project Manager at Sogeti

- Current project at the AMC

- Project manager: “Make sure the things are getting done.”

- Project success: Defining the deliverables (scope), time and cost. Deal with risk management.

Break

After the break- Project vs. General Management- When to use PM and when not- Questionnaire

Back in 15 minutes

Project vs. General Management

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

When to use PM- To manage unique or rare activities, to deal with specific ad

hoc problems and opportunities

- To deal with rapid changing competitive or environmental conditions

- To deal with new technologies

- To deal with a task that is bigger than anything the organization is accustomed to handle

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

Specific uses of PM- Project Management for a company who wants to deliver

it’s customers competitive products and services

- Project Management to support an organization crisis management strategy

- Project Management to support a company’s factory operations, who is dealing in very rapid changing technologies

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

When not to use PM- Highly standardized products, processes are routine

- Decisions can be made within an organizational framework

- The product or service technology is stable

- The political, social, economic, technological, and competitive environments faced by the enterprise are stable

- The organization is small as well as the projects

Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

Questionnaire

1. ‘The Internet technology was adapted to become more efficient in monitoring and controlling aspects of projects’

True / False

Questionnaire

2. ‘Scope definition is one of the five process groups of the Project Management Process Groups’

True / False

Questionnaire

3. ‘Without defining a scope of a project, it is difficult to know were the project will end’

True / False

Questionnaire

4. ‘Develop a project team is one of the processes in the initiating process group of the traditional approach’

True / False

Questionnaire

5. ‘The iron triangle contains conflicting elements’

True / False

Questionnaire

6. ‘The project scope statement is one of the most important parts of the project scope’

True / False

Questionnaire

7. ‘The WBS contains an activity list’

True / False

Questionnaire

8. ‘Project requirements are a part of the project time management plan’

True / False

Questionnaire

9. ‘Project cost management gives an overview of the resources needed to complete the project activities’

True / False

Questionnaire

10. ‘A project manager must have authority as well as responsibility’

True / False

Questionnaire

11. ‘Social and organizational skills are the most important characteristics of a Project manager’

True / False