session 1 what is a project 2015-16 - samuel...
TRANSCRIPT
Project Management
Session 1 ‐What is a Project?Andre Samuel
This Session• Learning Outcomes of Module• Assessment Mechanism• Why Managers need Project Management (PM)Skills?
• What is a Project?• Constraints of a Project• Why Projects Fail?• Local Mega Projects Success or Failure!
Learning Outcomes1) Critically evaluate the nature of projects and theinter‐relationship between time, cost and quality constraints
2) Critically evaluate the role of the project managerand the human resource elements of projectmanagement3) Operate leading computer software tools to supportproject management activities4) Evaluate and apply project support techniquesincluding project optimization, control and troubleshooting5) Apply the fundamental principles of planningbudgeting, resourcing and risk management to aproject based environment
Why do managers need PM Skills• Traditionally most managers have not been involved in PM
• Today project based organizations are becoming common i.e. organization are shifting away from conventional management hierarchy
• Projects provide the means by which an organizations strategic objectives can be achieved
Link between PM and Strategy• Projects are essential to the growth and survival of organizations.
• Projects create value in the form of improved business processes, in the development of new products and services, and make it easier for companies to respond to changes in the environment, competition, and the marketplace.
• The project manager’s role therefore becomesincreasingly strategic
• Therefore, managers need to have PM skill in their armoury as the importance of the roles and functions of the project manager have increased
Kingdom Tower Saudi Arabia
https://www.youtube.com/watch?v=kRxflu3JB4s
Pt Fortin Highway
https://www.youtube.com/watch?v=0iCAS8SvClA
T&T Infrastructure Development Projects 2017
• Pt Fortin Highway‐reinitiated
• Moruga main road and Moruga Port
• Toco Port • Valencia to Toco road• Wallerfield to Manzanilla Highway
• TT WI‐FI initiative• Rehabilitation of the existing ANR Robinson International Airport
• Sandals Resort‐ Tobago• Large hotel in Trinidad
Typical projects in an organization
• Developing Information Systems• Develop new products• Mergers and Acquisitions• Change in Structure• Rebranding• New locations• Constructing a new Building or facility
‘ A project is whatever I call a project’
What is a Project?• The difficulty of defining a project arises from the enormous variation in size that is possible– From very small to the gigantic
• But whatever the scale, the same principles of Project Management apply
• It is therefore possible to discern Characteristics that are true for most projects:– Temporary– Unique– Progressive elaboration
1. Temporary• Projects are not ongoing operations• This means that a project is temporary• That is, it has a definite beginning and a definite end
• The end is reached when – the project’s objectives are achieved (successful) or – when it becomes clear that they cannot be met or – the project is no longer needed (terminated)
• Temporary does not mean short in duration e.g. Stonehedge in England estimated 3500 years to complete
2. Unique• Projects involve doing something novel• They are therefore produce an outcome which is unique
• Never been done before‐ one of a kind, first • We look at the outcome or product of the project for uniqueness
• Uniqueness can be achieved even if the category to which it belongs is large e.g. New McDonald Location
• Is a Healthy and Safety Inspection a Project?
3. Progressive Elaboration• This integrates the concepts of temporary and unique
• Because the product is unique, the product must be progressively elaborated
• That is proceeding in steps, continuing steadily by increments
• The unique characteristics must be thoroughly and carefully worked out
• Work required is gradually defined and increasing detail added over time
Formal Definition
• “Projects are unique, transient endeavoursundertaken to achieve a desired outcome”
APM (2004)
• “A project is a temporary endeavourundertaken to create a unique product or
service” PMI (2000)
• “A project is a unique set of coordinated activities, with a define starting and finishing
point, undertaken by individual or organization to meet specific objectives
within defined schedule, cost and performance parameters.”
BS 6079‐1 (2000, pg 2)
Project Constraints‐ Iron Triangle
Discussion Point
You can have it cheap, you can have it right or you can have it quick.
But you can only have two out of the three
Brazil Olympics 2016‐ Jeopardy !!!
• Cost Overruns • Delays in projects• BUT The Olympics start
date was Aug. 5 2016• "It means you just have to
throw more money at the thing to get it finished... The only variable you have is to spend more money,“ Flyvbjerg (May 2015) Oxford University
So what are the KPI of Project Success?
• Macro‐level success
• Micro‐level success
Toor and Ogunlana (2010) Beyond the ‘iron triangle’
Why do Projects Fail?
See Handout 1
Why Projects Fail?• Ready, fire, aim‐ shoot first whatever you hit is the target
• It’s all in my head• We don’t have time to do this stuff• I’ve got certification, therefore I am a Project Mgr• We have a procedure for that• We need not use that methodology• We’ve done this before• No Planning
UFF Report• Some design‐build projects ‐ International Waterfront Project and the Prime Minister's residence have been completed on time and budget;
• Projects carried out on a design‐tender basis‐the Government Campus Project and Belmont Police Station being two comparable projects have been the subject of major delay and cost overrun.
• Client bearing the consequences of delay and additional cost, with none of the parties being held to account.
• Uff report
Piarco International Airport
– the airport authority issued a $200m bond to fund the construction.
– Scope: – Entire project cost about $1.6Bn
– Started in 1998– Eleven month project– commissioned in July 2001
Water Front Project
– Commencement: August 2005
– Scope: Two 26 Storey Office buildings, A 22 storey 428 room Hyatt Regency, 7 storey carpark‐1200 vehicles
– Scheduled Open: 2008– Actual Opening: April 2009– Estimated Cost: TT$ 1.6
Billion– Actual Cost: TT$ 3.4 Billion– Funding: Loan, First
Caribbean fixed interest rate of 6.09 per cent for 15.9 years
Brian Lara StadiumConceptualization Date: 2003
– Initial Estimated Cost: TT$ 850 Million, TT$ 250 M for Cricket Stadium
– Scope: – Cricket stadium, the aquatic centre, cycling velodrome, football fields, gym, hotel accommodation
– Estimated Completion Date: Cricket World Cup 2007– Main Project Issue: TT $125 million in advance payments to the project's main contractor despite the fact that the project was behind schedule
– Estimated Cost at Completion: TT $ 1.2 Billion– Estimated Date of Completion: project scaled down to Cricket Stadium
– PM Dr. Rowley Commits to completing Project– Expected completion Nov 2016 @TT $ 90 Million repair cost
• NAPA– Completion: Nov 2009– Scope: 1500 seat hall, 2 practice halls, hotel, teaching rooms
– Estimated Cost: TT$ 500 Million– Funding: 2% concessional loan from Republic of China for 20years
– Project Issue: Structural Defects TT$ 80 Million– Contractor: Fixed Price, Design Build contract toShanghai, but TT$ 100Million subcontracted to local contractors
Role of Project Manager• To achieve the project's objectives within the time, cost and
quality/performance constraints imposed by the sponsor
• Make timely decisions to assure the project's success and satisfy all stakeholders
• Plan, monitor and control the project through to completion
• Select, build and motivate the project team
• Informing the sponsor and senior management of progress and problems
• Recommend termination of the project (if necessary)
• Serve as the principal point of contact between the sponsor, management and contributors
• Select and manage subcontractors.
Assessment• 3000 word report• Assignment based Fictitious Case Study
– Part A‐ Critical evaluation of Project Management Office• Evaluate the relationships between project planning and project controlling.
• What steps can be taken to improve the financial performance of projects at OmniBuild
• What are the key weaknesses the current HR focus? • What are the key measures and tactics to implement a new project planning approach?
– Part B‐ Project Planning and Progress Management • Build Baseline Gantt Chart 4 months• Modify to shorten to 2.5 months
– Part C‐ Project Budget Creation and Management• Create budget with a constraint of £ 850,000• Modify budget with new constraint of £ 650,000
Summary
• Projects have a number of key characteristics that distinguish them from ongoing operations.
Projects have:
• A finite and defined life‐span
• Defined and measurable product outputs
• Defined and measurable activities and resources
• Defined roles and responsibilities.
Useful Websites
• Project Management Instititue‐ http://www.pmi.org
• The Association for Project Management (UK)‐ http://www.apm.org.uk
• Prince 2 2009‐ http://www.prince2.com• International Project Management Association‐ http://www.ipma.ch
• Forum‐ http://www.gantthead.com