pm lecture 7
TRANSCRIPT
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Lecture April 14, 2011
Project Management
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Overview
Project planning Repetition
Various PM Planning Issues
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adaptation
Model of Project Control
Project planning
content / deliveries
start and end dateteam members
Target values budget
Control
Activities
Project control
Real values
Monitoringdiscrepancies
Real values
Project execution scope change disturbance capacity problems
inter personal problems
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From the Structure to Scheduling of a Project
Work package
Work breakdown structure
2 6
7 12 153
4
5
8
9
10
11
13
14
16
Schedule (e.g. network)
1
BCreate list ofrequirements
CProject schedule
DConduct
Feasibility study
EPhase plan
Projektmmgtcreation
FProject report
study
GDesign
system concept
HDeterminefunctions
IPhase planconcept
JDetermine
development process
Project reportConcept
AProject
organization
Work Flow
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0 0 0
0 0 0
Project start
0 1 1
2 2 3
1 2 3
3 2 5
5 4 9
5 0 9
9 0 9
project end
9 0 9
0 5 5
0 0 5
5 1 6
6 1 7
6 2 8
7 1 9
earliest starting date estimated duration earliest finishing date
latest start Total float latest finishing date
Determine Critical Path
Activity 1 Activity 3 Activity 5
Activity 2 Activity 4 Activity 6
1. step: forward calculation
2. step: backward calculation
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People in Projects
Steering committee
Project leader
Project team
Specialfunctions
Expert committee
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Overview of the Project and Organization Structures
Pure project organization
Influence project organization
Matrix project organization
Department CDepartment BDepartment A
Projekt B
PMB
Board of
Management
Projekt A
PMA
Board ofManagement
Department B
PM Staff
Department CDepartment A
Executive board
Project 1
Project 2
Department A Department B Department C
Projectrelateddirectives
Function related directives
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Overview
Project planning Repetition
Various PM Planning Issues
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Cost Planning
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Examples for Cost Planning
Modification project of the ice-skating hall Bodensee-Arenawith restaurant and hotel (2000)- budgeted costs : 8,9 Mio. CHF
- real costs : 11,9 Mio. CHF
- overrun: 1,33 Mio. CHF
Acquisition and introduction of a new administration systemfor human resources (1998)
- budgeted costs : 2,4 Mio. CHF
- real costs : 3,1 Mio. CHF
- overrun: 0,7 Mio. CHF
Roof of Munich Olympia Stadium- budgeted costs: 20 Mio. Mark
- real costs: 171 Mio. Mark
- Factor: 8,6 (other project parts: average 1,9)
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Cost Calculation Terms
Cost calculationThe anticipatory consumption in terms of amount and value,respectively the effective consumption as well as the spatiotemporalclaim of production factors for the purpose of goods and services.
Cost-type accounting
Systematical recording of all the costs, which occur with the creationand application of goods and services (e.g. HR costs, material costs,logistic cost, capital costs, but also direct and indirect costs)
Cost-centre accountingComputed allocation of included costs of each cost-type to a cost-
centre during a period of time (e.g. distribution, engineering,...)
Cost-unit accountingCost-unit: marketable goods and services (e.g. product or service)Cost-unit accounting: calculation
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Top-down (global) estimation methods For a fast and easy, approximate estimation of projects cost. Uses parameters, key data (e.g. per volume)
Bottom-up (analytical, AP-based) estimation methods
Basis for detailed project cost planning Basis for cost based project controlling
Work packagecosts
Workpackages
Type ofcost
Projectcosts (PC)
Allocatio
n
PC overtime
Principles of Cost Estimation in Projects
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WBS
Workpackages
Identification of Work Packages in a WBS
Project
System A System B System C System D
sub system
CB
Sub system
AA
WorkPackage AA1
WorkPackage AA2
WorkPackage AA3
WorkPackage CB2
WorkPackage CB1
WorkPackage D2
WorkPackage D1
Source: Litke, H.-D.: Projektmanagement. Hanser 1995
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Costs
Human resources- Developer, constructing engineer, product leader,etc.
- in CHF/h
- cost/unit: e.g. 130.- / h
Material
- Steel plate, zinced, screws M4, P4 Chips, etc.
- in m2, pieces, etc.
- cost/unit: e.g. 20.-/m2 or 500.-/piece
Acquired services- Consultant services
- All-inclusive
Etc.
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Allocation
Personnel
Factory worker 60h 130.-/h = 7800.- CHF
MaterialSteel plate:
Screws M8:
30m2
300 pieces
20.-/m2
1.-/piece
=
=
600.- CHF
300.- CHFRest
C-parts, etc. = 400.- CHF
total =9100.- CHF
Work package AA3
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Project Calculation
WP-costs (CHF)see previous slide
WP1 + WPi + Wpn = sum of all direct costs
Overhead (%)- Infrastructure
- Management- Office equipment, EDV (utilities)
= sum of all overhead costs (e.g. 10%)
Profit and risk margin (%)- e.g. 50%
Offer price (CHF)- e.g. 15000.- CHF
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Different Cost Estimation Methods
Estimation of an expert (1 person)One employee (mostly project manager) estimates costsbased on his experience, called an educated guess. This kindof estimation is only based on one persons knowledge and hisluck. It might therefore end in a catastrophic mislead.
Estimation of experts (more than one persons)
classical Delphi method
no discussion between experts
broadband Delphi methodwith discussion between experts
Source: Litke, H.-D.: Projektmanagement. Hanser 1995
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Quality Issues in
Project Management
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Dependencies in Project Planning
Project task
Structuring thetask
Structuring the
processCapacities
Team
Quality
Schedule
Information
Resources
Cost Benefit
profit
Source: Litke, H.-D.: Projektmanagement. Hanser 1995
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Quality as Central Key Figure in the Project
TimeCosts
Project
Quality
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DIN 55350, part11, S.2:
Quality it the entirety of attributes and characteristic valuesof a unit concerning its eligibility to achieve defined andrequired demands.
en.wikipedia.org/wiki/Quality (accessed 02.05.07)
Quality refers to the inherent or distinctive characteristics orproperties of a person, object, process or other thing. Suchcharacteristics or properties may set a person or thing apart
from other persons or things, or may denote some degree ofachievement or excellence. When used in relation to people,the term may also signify a personal character or trait.
Definition of Quality
http://www.google.com/url?sa=X&start=6&oi=define&q=http://en.wikipedia.org/wiki/Quality&usg=AFrqEzcRk6sL_BgbEqF7LzTwk97x04fufAhttp://www.google.com/url?sa=X&start=6&oi=define&q=http://en.wikipedia.org/wiki/Quality&usg=AFrqEzcRk6sL_BgbEqF7LzTwk97x04fufA -
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Due to the uniqueness of each project and thereforenew/different quality requirements have to be defined
Observation of the requirements is the responsibility ofeach team member...
... but first and foremost the responsibility of the projectmanager
Quality management is an important task in projectmanagement
Quality Management
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Strategic management conceptwhich aligns the organization with all-embracing and consistentquality.
Collaborative quality awarenessRealization of an optimal product quality through an appropriatequality of the overall process
Unconditional orientationto the expectation of all stakeholders: costumers, employees,owners, suppliers and society, etc. and in all ranks:
- Product and process quality
- Service quality- Innovation quality- Environmental quality- social quality- ...
Quality Management
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Contents of Quality Management
Set up
qualitycharac-teristics
Quality
management
Quality planning Quality control Quality test
Performanceplanning
Performancecontrol
Performancecorrection
Inspection Test
To set up
arrangementsto reach thequalitycharacteristics
To set up
conduction andaffectivity ofthe qualitycharacteristics
To bring
aboutamendmentsof productquality
Verification of
documents
Check of
code orprototype
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Personnel Planning
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Dependencies in Project Planning
Project task
Structuring thetask
Structuring the
processCapacities
Team
Quality
Schedule
Information
Resources
Cost Benefit
profit
Source: Litke, H.-D.: Projektmanagement. Hanser 1995
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Resources initially budgeted for projects are frequently
inadequate- Sometimes resource trade-offs are required- Subcontracting is an option
- Project and functional managers perceive availability of resources tobe strictly limited
- Competition for resources CAN turn into win-lose propositions
between project and functional managers
Source: Meredith/Mantel Project Management 2005
Acquiring Sufficient Resources
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A major problem for the PM is that most people required for a
project must be borrowed- At times, functional managers may become jealous if they perceive a
project as more glamorous than their own functional area
- Typically, the functional manager retains control of personnelevaluation, salary, and promotion for those people lent out to projects
- Because the functional manager controls pay and promotion, the PM
cannot promise much beyond the challenge of the work itself- Violation of Unity of Command principle
Source: Meredith/Mantel Project Management 2005
Acquiring Inspiring Personnel
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Personnel Planning
The planning of personnel contains all reflections which
are related to the concrete assignment of employees to
the project team.
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Contents of the Personnel Planning I
Determination of the staff requirement
Required functions Required capacity Qualification profile
Recruitment of employees recruitments of qualified internal employees (Battle for
Talents) Possibly selection of employees Possibly external recruitment of employees
Agreement of the assignment to a project
part-time / full-time assignment Organizational form (pure project organization, influence
project organization, matrix project organization) Subordination Activity after project end
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Contents of the Personnel Planning II
Assignment of the employees To be carried out in oral and written form List of activities should contain:
- The task to be solved
- The available capacities
- The planned costs
- The closing date to be obtained
Optimal condition of employment and infrastructure
Work station
PC, development and test tools
Methodological instruments Further education (related to project task)
Career planning
Supervision / Coaching of employees
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The Project Manager
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Significance of a PM
Success and Failure correspond strongly with thetype and personality of the PM
Selection of the right PM is essential
Management support for PM
Requirements- Methodological Competence
- Social Competence
- Strong Leadership abilities
- Motivator- Trainer
- Psychologist
- Conflict Manager
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PM Career Model
Source: http://www.project-management-knowhow.com/project_management_career_model.html
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PM Career at Siemens
Quelle: PM@SiemensPM-Guide
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PM Career at Siemens
Quelle: PM@SiemensPM-Guide
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The project team
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Attracting the Best Team
Characteristics of effective team members:- High quality technical skills
- Political sensitivity
- Strong problem orientation
- Strong goal orientation
- High self-esteem
Source: Meredith/Mantel Project Management 2005
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High performance teams
A team is a small group of people with complementaryskills, who work actively together to achieve a commonpurpose for which they hold themselves collectivelyaccountable.
Teams are one of the major forces behind revolutionary
changes in contemporary organizations.
High performance teams:- Have strong core values
- Turn a general sense of purpose into specific performance objectives
- Have the right mix of skills- Possess creativity
Source: Schermerhorn, Hunt, and Osborn: Organizational behavior 2003
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Optimal team size I
Number of team members
Efficiency and
EffectivenessInformationexchange
CumulatedKnow-how
Coordination
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1 2 3 5 10 20Team size
Probability ofmistakes
Optimal team size II
Conflict: General Terms
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Conflicts arise if there are different ideas/person(s) howto achieve project objectives
Virtually impossible that interaction take place withoutconflict
Definition: the process which begins when one party
perceives that the other has frustrated, some concernsof his (Thamhain and Wilemon, 1975)
Conflicts arise over:- goals (indiv. or group pursues different goals; Raiffa, 1982)- feelings (emotion; most conflicts have their roots in uncertainty)
- beliefs (personality)- behaviour (education)
Conflict: General Terms
Forming a high performance team I
Conflict intensity over the project life cycleForming a high performance team II
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Schedule and technical conflicts are most frequent and serious in thebuild up and main program stage, and schedule conflict in particularduring the phase-out stage.
Conflict intensity over the project life cycleForming a high performance team II