lecture 1- understanding the importance of project management
DESCRIPTION
Lecture 1- Understanding the Importance of Project ManagementTRANSCRIPT
-
LECTURE 1
Understanding the Importance of Project Management
-
INTRODUCTION
Approximately $ 2.5 trillion (about 25% of US gross national product) are spent on projects each year in USA alone
Millions of people around the world consider project management the major task in their profession
The rapid expansion of PMP from 93,000 members in 2002 to 230,000 in 2008 and more than 600,000 currently
The purpose of the project management is obtaining better control and use of existing resource (internally)
A lot of authors and business consultants emphasize the importance of project management, such as Tom Peters Reinventing Work: the Project 50:
To win today you must master the art of the project!
2
-
A temporary endeavor undertaken to create a unique product or service (PMI)
A complex, non routine, one-time effort limited by time, budget, resources and performance specifications designed to meet customer needs
3
PROJECT DEFINITION
-
PERFORMANCE/TECHNOLOGY
RESOURCES
OVERVIEW OF PROJECT MANAGEMENT
4
-
UNDERSTANDING PROJECT MANAGEMENT
Project Management definition:
A set of principals, methods, and techniques that
people use to effectively plan and control project work.
The planning, organizing, directing and controlling
company resources for a relatively established short-
term objectives to complete specific goals and
objectives
5
-
UNDERSTANDING PROJECT MANAGEMENT
Successful project management when achieving
project objectives:
Within the allocated time period
Within the budgeted cost
At the desired performance level
With acceptance by the customer
With minimum or mutually agreed upon scope changes
Without disturbing the main work flow of company
Without changing the corporate culture
6
-
Have a specific objective to be completed within certain specifications
Have defined start and end dates
Have funding limits (if applicable)
Consume human and nonhuman resources (i.e., money, people, equipment)
Be multifunctional (cut across several functional lines)
7
PROJECT CHARACTERISTICS
-
Project Management
Project Planning
Definition of work requirements
Definition of quantity and quality of work
Definition of resources needed
Project monitoring
Tracking progress
Comparing actual outcome to predicted outcome
Analyzing impact
Making adjustments 8
-
The History of Project Management
Ancient Project Management
Military Project Management
Space Exploration
Heavy Construction
Others
9
-
Classroom Activity 1a
In your groups please provide examples of the following:
1. Industries that use Project Management
2. Examples of specific projects in those industries.
10
-
Understanding the Importance of Project Management
Why are project management skills important? Because these skills are key to completing projects:
On time
On budget, and
On target
This section helps you understand what project management is and how it differs from your normal day to day office duties.
11
-
Benefits
Identification of functional responsibilities to ensure all activities are accounted for, regardless of personnel turnover
Minimizing the need for continuous reporting
Identification of time limits for scheduling
Identification of methodology for trade-off analysis
Measurement of accomplishment against plans
12
-
Benefits (contd)
Early identification of problems so that corrective action may follow
Improved estimating capability for future planning
Knowing when objectives cannot be met or will be exceeded
13
-
Obstacles
Project complexity
Customers special requirements and scope changes
Organizational restructuring
Project risks
Changes in technology
Forward planning and pricing
14
-
WHY USE PROJECT MANAGEMENT ?
Classroom Activity 1b
15
-
Why is a Project Management System Necessary?
16
-
Project Management
ResourcesResources
17
-
THE LEGS REPRESENT THE:
Project Manager
Line Manager(s)
Executive Management (i.e... Project Sponsor)
Maturity cannot exist without stability
Maturity in project management is like a three - legged stool
18
-
The Three - Legged Stool
ProjectManager
LineManagement
ManagementSenior
(I.e. Sponsor)
19
-
Effective project management
20
ORGANIZATIONAL BEHAVIOR
QUANTITATIVE TOOLS & TECHNIQUES
ORGANIZATIONAL
STRUCTURE
-
Functional vs Project Work
Functional ProjectType of work Repeated, on-going Unique, no rehearsal. Often
involves change.
Focus Operations, accomplishing effective work.
Completing the project.
Management responsibility Managing people. Managing work.
Budgets On-going operational budgets. Project budgets to fund specific projects.
Consistency and standards Industry standards. May have few standards because work is unique.
Cross-cultural relevance Varies across cultures. More constant across cultures.
Risk On-going work is stable and less risky.
Higher risk because work is unique and unknown.
Visibility May have little visibility if standards are not met.
Obviously noted when project objectives are not met.
21
-
Project Vs. Functional Influences
Project Influence in Decision-Making
Dual Influence
FunctionalOrganization
ProjectOrganization
Re
lati
ve
In
flu
en
ce
Functional Influence
MatrixOrganization
22
In Decision-Making
-
DELEGATION OF AUTHORITY TO
PROJECT MANAGER
EXECUTIVE MEDDLING
LACK OF UNDERSTANDING OF HOW PROJECTMANAGEMENT SHOULD WORK
LACK OF TRAINING IN COMMUNICATIONS / INTERPERSONAL SKILLS
THE TIP-OF-THE-ICEBERG SYNDROME
MANY OF THE PROBLEMS ASSOCIATED WITH PROJECT MANAGEMENT WILLSURFACE MUCH LATER IN THE PROJECT AND RESULT IN MUCH HIGHER COSTS23
-
Classical Management
Planning
Organizing
Staffing
Controlling
Directing
Which of the above is Usually NOT
performed by the project manager?24
-
Resources
Capital
Materials
Equipment
Facilities
Personnel
Information/technology
25
-
26
Top management
Government agencies Consultants
Project manager
Functional managers Client
Project team
Other organization
Subcontractors
The Role of Project Manager
As part of interface management, the project managers role also includes integration management
-
IntegratedProcessesIntegratedProcesses
Integration Management
Capital
Materials
Equipment
Facilities
Information
Personnel
Capital
Materials
Equipment
Facilities
Information
Personnel
ResourcesResources
InputsInputs
IntegrationManagementIntegration
Management
Products
Services
Profits
Products
Services
Profits
OutputsOutputs
27
-
The Functional Role
The functional manager has the responsibility to define how the task will be done and where the task will be done (i.e., the technical criteria)
The functional manager has the responsibility to provide sufficient resources to accomplish the objective within the projects constraints (i.e., who will get the job done).
28
-
Stakeholders: individuals or organizations that can be favorably or unfavorably impacted by the project
Stakeholders may be included:
Organizational stakeholders
Executive officers
Line managers
Employees
Unions
Product/market stakeholders
Customers
Suppliers
Local committees
Governments
General public
Stakeholders
29
Capital market stakeholders
Shareholders
Creditors
Banks
-
Stakeholders
30
-
Classroom Activity 1c
In a current project of yours, can you clearly identify internal stakeholders and outside stakeholders?
Is your relationship with each of these people or groups clear and functional?
If not, what can you do to better define these relationships?
31
-
How important is Project Management training?
Part-time Project Management - is it good or bad?
Why are you studying it?
Classroom Activity 1d
32
-
Todays Business Trends
Focus on:
high-quality,
speed-to-market and
superior customer satisfaction. can only be accomplished across functional lines of authority.
Traditional job of doing the same tasks every day is disappearing as routine office and factory work become automated.
Traditional career path is changing. People define their careers more by professions (Im a computer program designer) and less by the organization they work for (I work for Microsoft).
33
-
Classroom Activity 1d
List problems you are currently having managing projects.
As we continue through the course, we will identify ways in which you can address these problems.
We will create a master list of all questions to be answered from your individual lists.
34
-
Current & Future Trends in Project Management
Forces for Change:
Global competition, knowledge explosion, innovation, time to market, and shortened product life cycles.
Two Major Outcomes for the 21st Century:
An increase in the scope of project management and system integration.
The focus of projects has shifted from tactical to strategic.
An increasing discipline in the way projects are managed.
35
-
Increasing Scope of Project Management and System Integration
Enterprise Project Management (EPM)
Centralized management of a portfolio of projects to ensure that the allocation of resources to projects is directed and balanced toward the strategic focus of the organization.
Project management office (PMO)
The unit responsible for continued support of standards, processes, and an information system that defines project management for the organization.
36
-
Increasing Discipline in the Way Projects Are Managed
Training
Uniform training extending across team makeup, team culture, outside partners, and organization support allows for standardization in practices and processes related to projects.
Organization Culture
A system of shared beliefs supports organizational flexibility in meeting the challenges of managing projects in globalized competitive environments.
37
-
Increasing Discipline in the Way Projects Are Managed
ProjectManagementDiscipline
OrganizationCulture
MulticulturalProjects
InformationTechnology
RiskManagement
Outsourcing
Training
38
-
Unresolved Issues
How far can virtual project management evolve?
How do we manage projects under high levels of uncertainty?
39
-
40
Questions?