Chapter 1 Introduction to Project Management

“Welcome to the world of managing projects”

Chapter 1 Introduction 1

PROJECTS IN CONTEMPORARY ORGANIZATIONS

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Introduction

We live in a world of rapid development – physical and infrastructure, technological and human Projects in Malaysia – MNC (Malaysian National Car –1983), KLIA (completed 1998), KLCC twin tower, many more Who is involved? Public and Private sector, Local and foreign companies Chapter 1 Introduction 2

   Often hear about project being delayed, not completed, “abandoned/terbengkalai”, etc. why???

Lack of management skills and knowledge – is one of the reasons for    Costs overrun Delay – not meeting dateline Not meeting specification/performance/quality Therefore, need project management skills and knowledge Chapter 1 Introduction 3

Introduction

     Project mgmt (PM) provides “powerful tools” on how :  to plan, organize, implement & control activities  to use people & resources efficient and effective PM initiated by the military – Polaris Missile Programme (1950’s), NASA Apollo, Space shuttle program, EI DuPont (Chemical Plant Maintenance Shutdown Project) – to increase effectiveness of project implementation PM needed as intense competition between companies – quick response, fast delivery of new products Projects getting more complex, bigger, multidisciplinary – must organize efficiently using PM knowledge Chapter 1 Introduction 4

Project Objectives and Triple Constraints

 Main objectives of project mgmt (called Triple constraint): Performance cost Project Mgr constantly make tradeoffs -one affects the other Time  Also must consider risks involved in project management Chapter 1 Introduction 5

 Project Mgr (a

lso known as the Super manager

) – must integrate all aspects of project;  ensure proper knowledge & resources;  ensure the expected result on a timely & cost effective manner ,  know implications of decisions Chapter 1 Introduction 6

Basic Definition of Project

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Have a specific and finite tasks to be accomplished, whether large or small scales, long or short run

Chapter 1 Introduction 7

Common terms used in PM: Program, project, task,workpackage PROGRAM PROJECT 1 TASKS 1 TASKS 2 TASKS 1 PROJECT 2 TASKS 2 WORK PACKAGES 1 WORK PACKAGES 2 WORK PACKAGES 1 WORK PACKAGES 2 WORK UNITS 1 WORK UNITS 2 WORK UNITS 3 WORK UNITS 1 Chapter 1 Introduction WORK UNITS 2 8

Definition and Characteristics of a Project

Purpose  Project  usually a

one-time activity end result

with a set of desired  can be divided into subtasks, which required coordination & control Life Cycle  Project life cycle  slow beginning peak   progress to a buildup of size  begin decline  finally must terminate Chapter 1 Introduction 9

Definition and Characteristics of a Project

Interdependencies  Projects interact with other project being carried out simultaneously by parent org., but always interacts with the parent’s standard, ongoing operations, etc.

 The patterns of interaction between functional dept. may change. e.g:  Marketing Marketing Manufacturing Finance Finance Beginning of project Intermediate of project End of project Project mgr- keep these interactions clear & maintain Chapter 1 Introduction 10

Definition and Characteristics of a Project

Uniqueness  Every project are unique – no two projects are the same  Some degree of customization is there Conflict  Project mgr. – full of conflict; projects compete with functional dept. for resources & people   Project members – conflicting for project’s resources & leadership roles in solving problems; deal with clients & org.

Individual’s conflict – two bosses at the same time; different objectives & priorities Chapter 1 Introduction 11

Aspect Mgmt Quantity Product Input to the process No of process and activities

Difference between project management and production management

Project management Only one project at a time Production management Large numbers (mass production) No two projects are the same Brought to the ‘site’ (e.g; equipments, man, material) Similar but with variety (e.g;consumer goods cars,household,computers, etc) Put together in a facility (factory) but based on product Most activities carried out once Carried out repetitively/more than once Chapter 1 Introduction 12

Why Project Management?

   Project manager expected to coordinate & integrate all activities to reach project’s goals Project – allows the mgr to be responsive to the client & environ, to identify & correct problems, make timely decisions, ensure mgrs at separate tasks do not

sub-optimize

Advantages of project mgmt;   Better control & better customer relations Shorter development times, lower costs, higher quality & reliability, higher profit margins  Sharper orientation towards results, better interdepartmental coordination & higher worker morale Chapter 1 Introduction 13

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Some disadvantages of project mgmt

Increased organizational complexity Increase the likelihood that organizational policy being violated – project mgr being autonomous Higher costs, management difficulties, low personnel utilization PM is difficult even when everything goes well - w hat more if things go badly Project organization is the only feasible way to accomplish certain goals - literally not possible to design & build a major weapon system in

a timely & economically acceptable manner

, except through project organization – i.e. applying PM tools Chapter 1 Introduction 14

The Project Life Cycle

   Projects – go through similar stages  from origin to completion Project is born (start-up phase); mgr is selected  project team & resources are assembled  organize work Work gets way & momentum quickly builds  progress is made  until the end is in sight Chapter 1 Introduction 15

The Project Life Cycle

  Takes time to complete final tasks; Why? Often a number of parts must come together & team members “drag their feet” Pattern of slow-rapid-slow progress – is common due to changing level of resources used  Project effort, usually in man-hours (or number of people working on project) plotted against time Chapter 1 Introduction 16

The Project Life Cycle

   Beginning – minimal effort; development of concept & processes selection Activity increases – rises to a peak – begin to taper off as project nears completion – finally ceasing when evaluation is complete – terminated Some cases – effort never fall to zero; small group may be maintained for the next project Chapter 1 Introduction 17

The Project Life Cycle

    Performance – important at early stage of project’s life cycle; time when planners find the methods required to meet project’s performance goals (these methods is refer as project’s technology; application of science or art) While technology of project is defined – project schedule is designed & project costs are estimated Conventional wisdom - Early life cycle – performance important than schedule & costs; During high activities – costs important; Final stages – schedule become paramount – May not be true Recent research indicates – performance & schedule more important than cost during all stage Chapter 1 Introduction 18