Transcript PROJECT MANAGEMENT - Amirkabir University of Technology

PROJECT
MANAGEMENT
Ehsan Shahvand, Ph.D. Candidate
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Ehsan Shahvand, Ph.D. Candidate
Project Management
 The Project Management Framework
 Introduction
 The Standard for Project Management of a Project
(PMBOK)
 PM in US and the World
 The Project Management Knowledge Areas
 Project Process Groups
 Project Success
 Organizational Culture
 Case Study
 Project Life Cycle
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Ehsan Shahvand, Ph.D. Candidate
What is a Project?
 A project is a temporary endeavor undertaken to create
a unique product, service or result
 A project has a unique purpose/output.
• Products are quantifiable, services like business functions
supporting production or distribution & results such as
outcomes or documents
 A project is temporary/one time.
• One time with definite beginning and end, NOT means short
duration!!
 A Project is Progressive elaboration
• developing in steps, and continuing by increments
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Ehsan Shahvand, Ph.D. Candidate
What is a Project?
 A project requires various resources & has a limited
resources & time
 A project has a primary sponsor/customer.
 A project involves uncertainty.
• Total work, Methods, Costs, Durations, Issues
 Examples of projects
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Split the atom
Chunnel between England and France
Introduce Windows XP
Running a campaign for political office
“Projects, rather than repetitive tasks, are now the basis for
most value-added in business” -Tom Peters
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Ehsan Shahvand, Ph.D. Candidate
Reasons for Projects?
 Strategic Planning / Competitive Positioning
 Business Process Improvement/Reengineering
 Entrepreneurship / New Product Development
 Changing Environment, Technology, etc.
 Project-oriented by Nature of Business
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Ehsan Shahvand, Ph.D. Candidate
Process
Process & Project Management
Project
(Operations)
 Organizations perform work to achieve a set of
objectives. Generally, work can be categorized as either
Repeat process or product
New process or product
projects or operations
Several objectives (sustain
business)
One/few objective
 Characteristics
Shared
On-going
One shot – limited life
 Performed by people
More heterogeneous
 Constrained by limited resources
Systems in place
Systems must be created
 Planned, executed, and controlled
People are homogeneous
Performance, cost, & time known
Performance, cost & time
uncertain
Part of the line organization
Outside of line organization
Bastions of established practice
Violates established practice
Supports status quo
Upsets status quo
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Ehsan Shahvand, Ph.D. Candidate
What is Project Management?
 Project management is the application of knowledge,
skills, tools, and techniques to project activities to meet
project requirements.
 Managing a project includes:
 Identifying requirements
 Establishing clear and achievable objectives
 Balancing the competing demands for quality, scope, time
and cost
 Adapting the specifications, plans, and approach to the
different concerns and expectations of the various
stakeholders.
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Ehsan Shahvand, Ph.D. Candidate
Managing Projects in Multi-Dimensions
Risk?
Customer Sat
Time
Time, Cost and Quality Triangle
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Managing Projects under Many Influencing Factors
Project Environment Model
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Project Management Body of Knowledge
(PMBOK 2004)
 The PMBOK® Guide is approved as an American National
Standard (ANS) by the American National Standards
Institute (ANSI).
 The PMBOK® Guide has been developed by a team of
professionals, evolved over 25 years, and now translated
officially into 14 languages worldwide.
 Project Management Professional (PMP®) certification is the
preeminent professional credential for individuals associated
with project management. Certified Associate (CAPM)
 5 Process Groups, 44 Processes, 9 knowledge areas
 2000(39) => 2004(44) : +7, -2, 13 revised Processes
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PMBOK 2008
Elements of PMBOK 2000
Scope
Time
Quality
Cost
Integration
HRM
Communication
Procurement
Risk
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Project Management Body of
Knowledge (PMBOK2004)
Purpose of the PMBOK GUIDE
 To identify that subset of the Project Management Body
of Knowledge that is generally recognized as good
practice.
 The PMI uses this document as a foundational, but not
the sole, comprehensive project management reference
 Addresses only single projects
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Ehsan Shahvand, Ph.D. Candidate
Audience for the PMBOK Guide
 Senior executives
 Program managers and managers of project managers
 Project managers and other project team members
 Members of a project management office
 Customers and other stakeholders
 Functional managers with employees assigned to project teams
 Educators teaching project management and related subjects
 Consultants and other specialists in project management and
related fields
 Trainers developing project management educational programs
 Researchers analyzing project management.
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Ehsan Shahvand, Ph.D. Candidate
PM in US and the World
 The U.S. spends $2.3 trillion on projects every
year, an amount equal to one-quarter of the GDP.
 The world as a whole spends nearly $10 trillion of
its $40.7 trillion gross product on projects of all
kinds.
 More than sixteen million people regard project
management as their profession;
 On average, a project manager earns more than
$82,000 per year.*
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PM in US and the World
 More than 0.5 million new information technology
(IT) application development projects were initiated
during 2001, up from 300,000 in 2000.*
 Famous business authors and consultants are
stressing the importance of project management. As
Tom Peters writes in his book, Reinventing Work: the
Project 50, “To win today you must master the art of
the project!”
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PM in Iran
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PMI Project Management Institute
 world’s foremost advocate for the project
management profession.
 Over 150,000 members in 150 countries
Over 75,000 certified in 125 countries
 PMI sets industry standards, conducts research
and provides education, certification and
professional
exchange opportunities to strengthen the
profession.
http://www.pmi.org
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International Project Management Association
 IPMA www.impa.ch in Netherlands
 Over 20000 members in Europe, Asia, Africa.
 30 national association members
 Project Excellence worldwide Awards
 World Congress, Advance Seminars
 Publications, International Journal
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Association for Project Management(APM)
 www.apm.org.uk in England
 UK Association with 13500 individual members &
300 corporate members
 APM Body of Knowledge (APM BOK) with 42
knowledge areas for PM
 Founder of IPMA with 36 national member
associations worldwide
 Certification exam, self assessment
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Iran Project Management Association
www.ipma.ir
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Class Resources
 Kerzner, Harold, “Project Management: A Systems
Approach to Planning, Scheduling, and Controlling”, John
Wiley and Sons, New York, 2000,7th Edition.
 Halpin, Daniel, W., and Woodhead, Ronald, W.,
“Construction Management’, John Wiley and Sons, New
York, 2000, 2nd Edition.
 Project Management Body of Knowledge
 Construction Extension, A Guide to PMBOK
‫ انتشارات دانشگاه صنعتی اصفهان‬،‫ مدیریت و کنترل پروژه‬،‫ دکتر حاج شیر محمدی‬
‫ مدیریت طرح های عمرانی‬،‫ قرارگاه خاتم االنبیاء‬
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Ehsan Shahvand, Ph.D. Candidate
Areas of Expertise
 The Project Management Body of Knowledge
 Application area knowledge,
standards, and regulations
Project Management
Body of environment
Knowledge
 Understanding the project
 General management knowledge and skills
PMBOK
 Interpersonal skills.
Guide
relationship among these five areas
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Ehsan Shahvand, Ph.D. Candidate
Understanding the Project Environment
 Cultural and social environment
 understand how the project affects people and how people
affect the project
 International and political environment
 be familiar with applicable international, national, regional,
and local laws and customs, as well as the political climate
that could affect the project.
 Physical environment
 local ecology and physical geography that could affect the
project or be affected by the project
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Ehsan Shahvand, Ph.D. Candidate
General Management Knowledge and Skills
 General management encompasses planning, organizing,
staffing, executing, and controlling the operations of an
ongoing enterprise. Which includes supporting disciplines:
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Financial management and accounting
Purchasing and procurement
Sales and marketing
Contracts and commercial law
Manufacturing and distribution
Logistics and supply chain
Strategic planning, tactical planning, and operational planning
Organizational structures, organizational behavior
compensation, benefits, and career paths
Health and safety practices
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Ehsan Shahvand, Ph.D. Candidate
Information technology
Interpersonal Skills
 Effective communication. The exchange of information
 Influencing the organization. The ability to “get things done”
 Leadership. Developing a vision and strategy, and motivating
people to achieve that vision and strategy
 Motivation. Energizing people to achieve high levels of
performance and to overcome barriers to change
 Negotiation and conflict management. Conferring with
others to come to terms with them or to reach an agreement
 Problem solving. The combination of problem definition,
alternatives identification and analysis, and decision-making.
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Project Manager’s big challenge
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Project Management Context
strategic
plan
portfolio
management
Portfolio
program
management
program
project
project
management
office
subproject
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Ehsan Shahvand, Ph.D. Candidate
Corporate Strategy Alignment
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Ehsan Shahvand, Ph.D. Candidate
Process Groups
 A process is “a series of actions bringing about a result.
Project Management processes can be organized into five
groups of one or more processes each:
 Initiating processes – authorizing the project or phase.
 Planning processes – defining and refining objectives and
selecting the best of the alternative courses of action to attain
the objectives that the project was undertaken to address.
 Executing processes – coordinating people and other
resources to carry out the plan.
 Controlling processes – ensuring that project objectives
are met by monitoring and measuring progress regularly to
identify variances from plan so that corrective action can be
taken when necessary.
 Closing processes – formalizing acceptance of the project
or phase and bringing it to an orderly end.
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Project Process
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Ehsan Shahvand, Ph.D. Candidate
Project Success
Secondary Factors
Primary Factors
Alignment with corporate culture
Within Time
Follow-on Work Flow of ORG
Within Cost
Technical Superiority
Within Quality
Health and Safety
Within Scope
Environmental Protection
(Accepted by The Customer)
Corporate Reputation
Ethical conduct
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Project Failure
Scope Creep
Poor Requirements
Gathering
Unrealistic planning and
scheduling
Lack of resources
Project “Success” in Information Technology
 Software & hardware projects fail at a 65% rate
 Over half of all IT projects become runaways
 Up to 75% of all software projects are cancelled
 Average cost overrun is 45%; schedule overrun is
63%; with only 67% of original contracted features
 47% of IT projects delivered but not used, 29%
paid for but not delivered; 19% abandoned
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Cost
Success: Point Or Cube?
Time
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Components of Failure
None
A
Accomplishment
Actual
B
Planned Achievable Perfection
C
D
E
Perceived
Failure
Actual Failure
Planning
Failure
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Components of Failure
None
A
Accomplishment
Actual
B
Achievable Planned
C
D
Perceived Failure
Actual
Failure
Planning
Failure
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Perfection
E
Organizational Culture
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The unwritten rules of behavior, or norms used to
shape and guide behavior, is shared by some subset
of organization members and affects all members of the
company.
Key factors that affect culture development
 Technology
 Environment
 Geographical location
 Reward systems
 Rules and procedures
 Key organizational members
 Critical incidents
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Types of Cultures
 Cooperative
 Non-cooperative
 Competitive
 Isolated (large companies)
 Fragmented (multinational)
The Organizational Culture Inventory (Culture Clusters)
By Robert A. Cooke
 Constructive Cultures
 Passive/Defensive Cultures
 Aggressive/Defensive Cultures
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Resistance to Change
High
Neutral
Low
I.T.
H.R.
Eng.
Sales
Finance
R&D
Marketing Procurement Manu.
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Resistance to Change
 Potential changes in work habits
 Potential changes in the social groups
 Embedded fears
 Potential changes in the wage and salary administration
program
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Change Process
Support for Change
Support
Denial
Exploration
Resistance
Resistance
Time
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CASE
 WILLIAMS MACHINE TOOL COMPANY
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For 85 years
the third largest U.S.-based machine tool company by 1990
due to one product line of standard manufacturing machine tools
Between 1980 and 1990, the company’s profits soared to record
levels
The recession of the early 1990s
By 1995, the recession had been over
In 1996, the company was sold to Crock Engineering
Crock replaced all of the Williams senior managers with its own
personnel.
employees who would not support this new direction would be
replaced.
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Ehsan Shahvand, Ph.D. Candidate
WILLIAMS MACHINE TOOL COMPANY
 Customer demand for specialty products had increased
threefold in just the last twelve months alone.
 company culture was about to change, spearheaded by
project management, concurrent engineering, and total
quality management.
 time and money spent in educating the employees.
 20-year-plus veterans still would not support the new
culture.
 support for project management in addition to hiring a
project management consultant to work with the people
 losses in 24 consecutive quarters. The quarter ending
March 31, 2002, was the first profitable quarter in over six
years
 In May 2002, the Williams Division was sold. More than
80% of the employees lost their jobs when the company
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was relocated over 1,500 miles
away. Ehsan Shahvand, Ph.D. Candidate
Project Life Cycle
 Definition: The phases that connect the beginning of a
project to its end.
 Overlapping phases, normally done in sequence-”Fast
Tracking”
 There is no single best way to define an ideal project life
cycle.
 Project phases complete with 1 or more deliverables
 A deliverable is a measurable, verifiable work product
 such as a specification, feasibility study report, detailed
design document, or working prototype.
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Ehsan Shahvand, Ph.D. Candidate
common characteristics of Project LC
 Phases are generally sequential
 Cost and staffing levels
 The level of uncertainty
 The ability of the stakeholders to influence the final
characteristics
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Cost and staffing levels
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System Costs
 operating (recurring)
 implementation (nonrecurring).
kerzner
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Influence of the stakeholders
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Product VS Project LC
 Product life-cycle phases: (Partial agreement)
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Research and development
Market introduction
Growth
Maturity
Deterioration
Death
 Project life-cycle phases: (theoretical definitions)
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Conceptual
Planning
Testing
Implementation
Closure
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Ehsan Shahvand, Ph.D. Candidate
Project Life Cycle
kerzner
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Project Life Cycle Examples
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Stages & Gates
 Stage: Groups of series or parallel activities
 Managed by cross-functional teams
 To reach a predetermined deliverable
 Gate (phase exits or kill points): review of key deliverables
and project performance at the end of stage, to decide:
a) if the project should continue into next phase
b) detect and correct errors.
 Number of gates must be limited
 providing checklists, forms, and guidelines
 Gatekeepers
 Who? & Power?
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Sequence of Project Phases
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Project Phases and Project Life Cycle
Gate
Stage
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Stage-Gate Failures
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Assigning gatekeepers and not empowering them to
make decisions
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Assigning gatekeepers who are afraid to terminate a
project
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Failure to provide the team with information critical to
gate reviews
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Allowing the team to focus more on the gates than on
the stages
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Project Life-Cycle (level of detail)
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Construction Project Life Cycle
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Software Development Life Cycle
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Scholarly Communication LC
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Ehsan Shahvand, Ph.D. Candidate
Any Question???
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Ehsan Shahvand, Ph.D. Candidate