Transcript PROJECT MANAGEMENT GROWTH: CONCEPT and DEFINITIONS
PROJECT MANAGEMENT GROWTH: CONCEPT and DEFINITIONS
By : Wiji Nurastuti, MT
GENERAL SYSTEM MANAGEMENT
Organizational theory and management philosophies have undergone a dramatic change in recent years with the emergence of the project management approach to management. Because project management is an outgrowth of system management, it is only fitting that the underlying principles of general systems theory be described. General system theory implies the creation of a management technique that is able to cut across many organizational disclipines-finance, manufacturing, engineering, marketing and so on-while still carrying out the functions of management.
Project Management 1945-1960
During the 1940s, line managers used the concept of over the fence management to manage projects.
Project Management 1960-1985
Between the middle and late 1960s, more executives began searching for new management techniques and organizational structures that could be quickly adapted to a changing environment. The table below and Figure 2-1 identify two major variables that executives consider with regard to organizational restructuring
Type of industry Tasks Environment
A B C D Simple Simple Complex Complex Dynamic Static Dynamic Static
Continue Project Management 1960-1985
◦ ◦ ◦ ◦ Almost all type C and most type D industries have project management-related structures. The key variable appears to be task complexity.
◦ In informal project management, just as the words imply, the projects were handled on an informal basis whereby the authority of the project manager was minimized. The following five questions help determine whether formal project management is necessary: Are the jobs complex?
Are there dynamic environmental considerations Are the constrains tight?
Are there several activities to be integrated?
Are there several functional boundaries to be crossed?
DYNAMIC 1980 S (INFORMAL PROJECT MGT.) 1960S : TOTALLY PROJECT DRIVEN 1970 S STATIC SIMPLE TYPE OF TASK FIGURE 2-1. Matrix Implementation scheme COMPLEX
PROJECT MANAGEMENT 1985-2003
By the 1990s, companies had begun to realize that implementing project management was a necessity, not a choice. The question was not how to Implement project management, but how fast could it be done?
◦ There are six driving forces that lead executives to recognize the need for project management: Capital project ◦ Customer expectation
Table 2-1 Life Cycle Phases for Project Management Maturity
Embryonic Phase Recognize need Executive Management Acceptance Phase Visible executive support Recognize benefits Recognize application s Recognize what must be does Executive understanding of project management Project sponsorship Willingness to change way of doing business Line Management Acceptance Growth Phase Maturity Phase line management support Line management commitment Line management education Willingness to release employees for project management training phases development of a project management methodology Commitment to planning Minimization of “creeping scope” use of life-cycle Selection of a project tracking system development of a management cost/schedule control system Integrating cost and schedule control Developing an educational program to enhance project management skills
Project management can be used to help such companies remain competitive during periods of growth and to assist in determining capacity constrains.
Because of the interrelatedness of these driving forces, some people contend that the only true driving forces is survival. This is illustrated in Figure 2-4. when the company recognizes that survival of the firm is at stake, the implementation of project management becomes easier
Efficiency and Effectiveness New Product Development SURVIVAL Capital projects Customers’ Expectations Executive Understanding Competitiveness FIGURE 2-4. The components of survival. Source: Reprinted from H. Kerzner, In Search of Excellence in Projeck Manegement. New York: Wiley, 1998, p.51.
PROJECT MANAGEMENT GROWTH: CONCEPT AND DEFINITIONS Project Driven Hybrid • PM has P & L Responsibility • PM is a recognized Profession • Multiple career Paths • Income comes from project Present • Primarily production • driven but with • Many projects • Emphasis on new • Product development • Marketing oriented • Short product life • Cycles • Need for rapid • development process Past Non Project - Driven • Very few projects • Profitability from • Production • Large brick walls • Long life cycle • Products Project Management Program Management Product Management FIGURE 2-7. Industry Classification (by project management utilization)
1960 – 1990 Hybrid 1990 – 2003 Hybrid Traditional Project Management Entrance via project Driven divisions such as MIS and R&D Modern Project Management Entrance via Marketing, engineering, and R&D FIGURE 2-8. From hybrid to project-Driven
SYSTEMS PROGRAMS, AND PROJECTS A DEFINITION
Business practitioners define a system as A group of elements, either human or nonhuman, that is organized and arranged in such a way that the elements can act as a whole toward achieving some common goal or objective.
If a system is significantly dependent on other systems for its survival, then it is an extended systems.
Once a group of tasks is selected and considered to be a project, the next step is to define the kinds of project units. There are four categories of projects :
Individual projects: these are short-duration project normally assigned to a single individual who may be acting as both a project manager and a functional manager Staff projects: these are project that can be accomplished by one organizational unit, say a department.
Special projects: often special project occur that require certain primary functions and/or authority to be assigned temporarily to other individuals or units.
Matrix or aggregate projects: these require input from a large number of functional units and usually control vast resources
PRODUCT VERSUS PROJECT MANAGEMENT: A DEFINITION
Project management and product management are similar, with one major exception: the project manager focused on the end date of this project, whereas the product manager is not willing to admit that this product line will ever end. The product manager wants his product to be as long lived and profitable as possible. Even when the demand for the product diminishes, the product manager will always look for spin-offs to keep his product alive.
Figure 2-10 shows the relationship between project and product management
VICE PRESIDENT GENERAL MANAGER RESEARCH SALES/ MARKETING PRODUCTION NEW BUSINESS MARKET RESEARCH PLANNING ONGOING BUSINESS MANU ENG A B C X Y Z PROJECT MANAGERS PRODUCT MANAGERS FIGURE 2-10. ORGANIZATIONAL CHART FINANCE ADMIN ADM PERS
MATURITY AND EXCELLENCE : A DEFINITION
Maturity in project management is the implementation of a standard methodology and accompanying processes such that three exists a high likelihood of repeated successes.
The definitions of excellence can be stated as Organizations excellence in project management are those that create the environment in which there exists a continuous stream of successfully managed project and where success is measured by what is in the best interest of both the company and the project.
PROJECT MANAGEMENT GROWTH: CONCEPTS AND DEFINITIONS Failures Successes Projects MATURITY 2 YEARS TIME FIGURE 2-11. The growth of excellence EXCELLENCE 5 YEARS
CONVENTIONAL PROJECT MANAGEMENT PROJECT MANAGEMENT WITH CONCURRENT ENGINEERING Life cycle phasese 1970s Policy and Procedure manuals EARLY 1980s Guidelines Per Life Cycle Phase Mid-1980s General Project guideliness Late 1980s FIGURE 2-12. Evolution of policies, procedures, and guidelines. Checklists with Periodic review points 1990s
THE MANY FACES OF SUCCESS
◦ ◦ ◦ ◦ ◦ Success is defined as a point on the time, cost, quality/performance grid.
Typical KPIs include Use of the project management methodology Establishment of the control processes use of interim metrics Quality of interim metrics Quality of resources assigned versus planned for Client involvement
RELATIVE MAGNITUDO OF DOCUMENTATION POLICIES AND PROCEDURES CRITICAL ISSUES • • • • • • HIGH INTENCITY CONFLICTS RESISTANCE TO MULTIPLE BOSS REPORTING RELIANCE ON POLICIES/ PROCEDURES INVISIBLE SPONSORS POWER/ AUTHORITY PROBLEMS CONTINUOUS MEETINGS GUIDELINES PER LIFE CYCLE PHASE FORMAL PROJECT MANAGEMENT GENERAL MATURITY PATH GUIDELINES PER PROJECT CHECKLISTS FOR END-OF-PHASE-REVIEWS • CONTINUOUS COMPETITION FOR RESOURCES • CONSTANTLY CHANGING PRIORITIES • POOR MOTIVATION • PROTECTION MEMOS • SCHEDUULE SLIPPAGES • CREEPING SCOPE • TRUST • COMMUNI CATION • COOPERA TION • TEAMWORK • DEVELOP MENT OF A METHODO LOGY • LIFE-CYCLE PHASES • CORE SKILLS TRAINING INFORMAL PROJECT MANAGEMENT
THE MANY FACES OF FAILURE
Failure is virtually assured since we have defined failure as unmet expectations.
Perceived failure is the net sum of actual failure and planning failure. In figure 2-15, project management has planned a level of accomplishment © lower than what is achievable given project circumstances and resources (D). This is a classic under planning situation. Actual accomplishment (B), however, was less than planned.
None A Actual B Planned C achievable D Perfection E Accomplishment Perceived Failure Actual Failure Planning failure FIGURE 2-15. Components of failure (pessimistic planning) None A Actual B Planned C achievable D Perfection E Accomplishment Perceived Failure Actual Failure Planning failure
THE STAGE-GATE PROCESS
The four most common decisions are ◦ Proceed to the next gate based upon the original objectives.
◦ Proceed to the next gate based upon revised objectives ◦ Delay making a gate decision until further information is obtained ◦ Cancel the project
PROJECT LIFE CYCLE
During the past few years, there has been at least partial agreement about the lifecycle phases of a product. They include: ◦ Research and development ◦ Market introduction ◦ Growth ◦ Maturity ◦ Deterioration ◦ Death
PROJECT MANAGEMENT METHODOLOGIES : A DEFINITION
Achieving project management excellent, or maturity, is more likely with a repetitive process that can be used on each and every project. This repetitive process is referred to as the project management methodology.
Good methodologies integrate other processes into the project management methodology as shown in Figure 2-24
Concurrent Engineering Project Management Total Quality Management Change Management Risk Management
Figure 2-24 Integrated Processes for The twenty-first century
SYSTEMS THINKING
The system approach may be defined as a logical and disciplined process of problem solving. The word process indicates an active ongoing system that is fed by input from is parts.
The systems approach : ◦ Forces review of the relationship of the various subsystems ◦ Is a dynamic process that integrates all activities into a meaningful total system.
◦ ◦ Systematically assembles and matches the parts of the system into a unified whole Seeks an optimal solution or strategy in solving a problem System thinking is vital for the success of a project. Project management system urgently need new ways of strategically viewing, questioning and analyzing project needs for alternative non technical and technical solutions. The ability to analyze the total project, rather than the individual parts, is essential for successful project management.
Referensi By : Kerzner, Harold, 2003.
and controlling”
, John Willey & Sons
“Project Management : a systems approach to planning, scheduling