principles of project management module 1 terminology
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Principles of Project Management
Module 1
Terminology
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All rights reserved. Colm Toolan, Business Architect. 2001 - 2005
A Project ...
• is an approach to solution of a problem• has the following characteristics
• a project goal - clearly defined, measurable• a beginning and an end - i.e. limited in time• requires multiple participants• interdependent constraints - time, resources
and costs• uniqueness (as a result of goals, constraints)• complexity• may involve (substantial) risk
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All rights reserved. Colm Toolan, Business Architect. 2001 - 2005
Project Management (PjMt)
• The organised planning and conduct of the complex activities within a project
• Effective• doing the correct things
• Efficient• doing them correctly
• Goal oriented
• Optimising time, money and resources
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All rights reserved. Colm Toolan, Business Architect. 2001 - 2005
3 Levels of PjMt
• Subject Matter• Terms of Reference [Projektauftrag], Goals
and how they will be achieved, Sub-projects
• Methods• Methods, Techniques and Tools that will be
used during the project
• Relationships• External and internal relationships
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All rights reserved. Colm Toolan, Business Architect. 2001 - 2005
Successful Projects
• Balance between subject matter, methods and relationships determines project success
• Relationships within project team probably most important
• Project Manager (PjM) should have• good understanding of the subject matter• good knowledge of methods and tools• excellent team-building and social skills
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All rights reserved. Colm Toolan, Business Architect. 2001 - 2005
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All rights reserved. Colm Toolan, Business Architect. 2001 - 2005
Project Goal(s)
• Defines what is to be done
• Agreed between contracting parties [Auftraggeber und Auftragnehmer] and accepted by Project Manager
• Enhanced through a detailed specification
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All rights reserved. Colm Toolan, Business Architect. 2001 - 2005
Project Goals must be
• Achievable
• Complete
• Clear - not open to interpretation
• Measurable
• Consistent
• Solution independent (“what” not “how”)
• Documented - in writing!
• Agreed between all involved parties
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Projects Goals are defined
• to provide both client and contractor with a reliable basis for planning and implementation
• so that the client knows what he will receive, when and at what cost
• to provide a basis for the acceptance of the project deliverables
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Project Goals need Metrics
• Production line “B2” completed
• Production line “B2” completed, producing 35 units/day
• Warehouse software completed
• Warehouse software installed and in use for 6 weeks
• Rationalisation of the office organisation is completed
• Office organisation is rationalised and saving € 5000/week
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All rights reserved. Colm Toolan, Business Architect. 2001 - 2005
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Project Organisation I
• Required to ensure efficient project implementation
• Key Members• Client [Auftraggeber]• Contractor [Auftragnehmer]• Project Manager• Project Team
• Other decision-making and control instances, as required
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Project Organisation II
• Structure is specific and temporary• organised around project goals• dissolved after project completion
• Co-exists with standard company structure
• Requires clearly defined responsibilities and authority to reduce politics
• Team is usually multi-disciplinary
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All rights reserved. Colm Toolan, Business Architect. 2001 - 2005
Company Organisation ICEO / Board of Directors Staff
Assistant
Staff
Secretary
IT Staff
Secretary
Production
Hardware Software Networks
DesktopDesktop ServerServer PeripheralsPeripherals
O’Connor
Dywer
Murphy
Group
Department
Team
Specialists
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Company Organisation II
• Also referred to as “line organisation”
• Always there, seldom changed
• Addresses standard tasks and subjects
• Groups similar skills into teams
• Line organisations are not suited to project management tasks
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Project Organisation Framework• Every good company has one!
• Applies for all projects within the company
• Define the roles• Tasks• Responsibilities• Authority
of each project team member
• Reduces / avoids political conflict
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3 Types of Framework
• Classical project management• The project manager carries full
responsibility for the project results
• Matrix• The departments involved and the project
manager share the responsibility
• Project co-ordination• The client carries the responsibility and is
kept informed by a project co-ordinator
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Which Type, When?
• Project Management• Often with external contractors / consultants
• Rescuing failed projects• Software development
• Matrix• Standard Framework for in-house projects
• Project Co-ordination• Suited for small, well-defined projects• Requires good company culture to work
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All rights reserved. Colm Toolan, Business Architect. 2001 - 2005
Classical Project Management
Classical PjMt - Structure Company Management
Dept 1 Dept 2 Dept 3
Project Team MembersProject Manager
Client
Steering Committee
FullResponsibility
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Classical PjMt - Features
• Project Manager has directive authority [Weisungsbefügnis]• often limited and insufficient
• Project organisation behaves as “company within company”
• PjM has unlimited control over project budget
• PjM can award external (sub-)contracts
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Classical PjMt - Advantages
• PjM has all the authority necessary to successfully complete project
• Project responsibilities are clearly defined
• Project team works closely together• Fast reactions for problems and surprises
• Team members identify with project• Increased motivation
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Classical PjMt - Disadvantages• Information exchange with other projects
is limited• project teams work independently
• Know-how and experience gained can be lost when project team disbands
• Internal team members must be re-integrated into line organisation
• Long term goals may be neglected• Training, staff development etc
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All rights reserved. Colm Toolan, Business Architect. 2001 - 2005
Matrix
Matrix - Structure Company Management
Dept 1 Dept 2 Dept 3
PjM - Project A
PjM - Project B
PjM - Project C
Project Office
SharedResponsibility
Who How Where
When
What
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Matrix - Features
• Directive authority shared between project and line organisations
• Project organisation extends existing line organisation
• Staff work for both projects and departments
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Matrix - Advantages
• Single person responsible for each project
• Expert knowledge is available to multiple projects
• Staff development and training managed by the appropriate department
• Re-integration of team members after project completion is simplified
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Matrix - Disadvantages
• Project manager has full responsibility, but limited authority
• Projects must be very carefully planned (Work Packages) to ensure success
• Planning must be co-ordinated between project and line organisations
• Conflict potential (projects and line)
• Difficulties with team members’ priorities
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Project Co-ordination
Co-ordination - Structure
Project Co-ordinator
Client
Steering Committee
Information, notResponsibility
Project A Project B Project C
Dept 1 Dept 2 Dept 3
Company Management
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Co-ordination - Features
• Project co-ordinator has no directive or decision-making authority
• Co-ordinator is (internal) consultant and reports to the line organisation
• Line organisation is unchanged
• Project tasks are carried out with the line organisation
• Suited for simple projects with low risk
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Co-ordination - Advantages
• Personnel changes not required
• No changes in intra-departmental relationships
• Resources not tied to project
• Specialist information flow is maintained
• Involvement (and commitment) of departments is high
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Co-ordination - Disadvantages• Client can not always assume
responsibility
• Team members not motivated (line priorities more important than project)
• Project status is harder to monitor
• Decision-making processes within the departments • slower response to problems and difficulties
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Project Documentation
• Needed to provide project transparency
• Maintained in Project File
• Provides up-to-date status information
• Records decisions made
• Facilitates Final Report and re-use of project experience and know-how gained
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Project File - Contents
• Project Brief [Projektauftrag]
• Project Definition• Project Organisation• Agreements /
Contracts• Correspondence
• Project Plan(s)• Work Breakdown• Milestones• Dates / Deadlines• Resources• Budgets / Costs
• Minutes [Protokolle]• Reports• Contact Information• Presentations
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Project Pre-Requisites I
• The Project Goal(s) is/are clearly defined
• The PjM has a client contact for issues relating to• subject matter, organisation, inter-personal
relationships
• The project roles• tasks, responsibilities and authority
and rules are clearly defined in writing
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Project Pre-Requisites II
• Team members are chosen • availability, qualifications and motivation
• Project Kick-Off is conducted
• Each team member’s tasks are continuously defined, in writing• contents, dates, deliverables (constraints)
• Project File has been created
• Project organisation is in place• infrastructure, tools, PjMt-software, people
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The Project Manager (PjM)
• Project Management is an integral [ganzheitlich] activity• Interesting• Difficult• Decisions, decisions, decisions
• “The Project Manager lives the project”
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A Good Project Manager...
• Understands the project subject matter
• Possesses excellent inter-personal skills
• Exhibits entrepreneurial and business talents
• Accepts responsibility
• Can lead a (heterogeneous) team
• Has an integrative spirit
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PjM Personality
• Open, extrovert, communicative
• Determined, hard-working, goal oriented
• Socially competent• Lead, motivate and harass the team• Not afraid of conflict• Understands “win/win” and how to achieve
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… and then some!
• In depth knowledge of subject matter
• Project Management training
• Training-on-the-job• Successes• Failures• Learning from others• Mentors and coaching
• and about 20 years experience!
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Contact Information
Colm Toolan, Business Architect
Isarweg 35
24146 Kiel
Colm(full stop)toolan(funny symbol)toolan(full stop)de
T: +49 431 7859 - 737 F: -738
M: +49 171 6450 998