Transcript Document 7261627

Project Management
Summary Lecture 1
Summary Chapter 1
Summary Chapter 2

Introduction

What is a Project?
• A project is any sort of planned undertaking.
• All of us have been involved in projects,
whether they be our personal projects or in
business and industry.
• Examples of typical projects are :




write a report
plan a wedding
plant a garden
build a house extension
Other Examples of Projects

Industrial projects
• construct a building
• rewire premises
• provide a gas supply to an
commercial building
• build a highway
• design a new car
Other Examples of Projects

Business projects
•
•
•
•

develop a computer system
introduce a new product
prepare an annual report
set up a new office
Projects can be of any size and
duration.
Characteristics of Projects


Projects can be simple, like planning
a party, or complex like launching a
space shuttle.
Generally projects are made up of :
• a defined beginning point
• multiple activities which are performed
to a plan / schedule (and have)
• a defined ending point.
Therefore a project may be
defined as a means of
moving from a problem to a
solution via a series of
planned activities.
Summary

Two essential features are present in
every project no matter how simple or
complicated they are.
• In the first place, all projects must be
planned out in advance if they are to be
successfully executed.
• Secondly, the execution of the project
must be controlled to ensure that the
desired results are achieved.
Activities & Relationships



On most projects it is possible to carry out
multiple activities simultaneously.
Usually it is possible to perform several activities
at the same time, however there will be activities
which cannot begin until a preceding activity has
been completed.
These relationships are referred to as
dependencies or precedencies, and when
planning a project it is important to establish the
order of precedence of dependent activities, and
to establish those activities which can be
performed in parallel with other activities.
Regardless of the nature or
size of your project a
successful outcome can
only be achieved by using
sound project management
techniques.
Summary of Projects

Projects are typically:
1. Complex and numerous activities
2. Unique - a one-time set of events
3. Finite - with a begin and end date
4. Involve limited resources and budget
5. Involve many people, usually across several
functional areas in the organizations
6. Sequenced activities
7. Goal-oriented
8. End product / service oriented
Ten Major Causes of Project
Failure
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Lack of interest beyond the project team
Solution in search of a problem
No one in charge
Project plan lacks structure
Project plan lacks detail
Project is under budgeted
Insufficient resources allocated to project
Project not tracked to the plan
Poor Communication on team
Project strays from original goals
Other Underlying Subtle Factors for
Project Failures





Inadequate project manager skills,
influence, and authority
Poor coordination and rapport with the
client
Lack of project team participation and
team spirit
Unrealistic schedules
Project is of a different type or more
complex than handled previously by
manager / team
Other Underlying Subtle Factors for
Project Failures (2)





Plans were based upon insufficient data
No attempt was made to systematize the
planning process
No one knows or understands the ultimate
objective of the project
Project estimates are best guesses, and
are not based upon standards or history
No one bothered to see if there would be
personnel available with the necessary
skills
Most Difficult Issue to
Overcome - People working
to meet their own objectives
/ ends, not those defined in
the project specifications
The Project Overview

State the Problem
• What is the Problem/Opportunity?
• What is to be done?
• Who is responsible for the project?
• When must the project be completed?
• Type - Business, Functional, Technical
The Project Overview (Continued)

Identify Project Goals
• Define project end product or service
• Define to settle misunderstandings
• Establish a methodology to accomplish
objectives that is:
•
•
•
•
•
Action orientated
Short
Simple
Straightforward
Understandable
The Project Overview (Continued)
 Develop Project Objectives (Critical
success factors or Milestones)
• Sub-goals that direct work activity
• Must be completed to achieve project goal
• Objective statement should be (SMART):
 Specific
 Measurable
 Assignable
 Realistic
 Time-related
Basic Definitions (1)

A project is an interrelated set of
activities that has a definite starting and
ending point and results in the
accomplishment of a unique, often major
outcome. "Project management" is,
therefore, the planning and control of
events that, together, comprise the
project. Project management aims to
ensure the effective use of resources and
delivery of the project objectives on time
and within cost constraints.
Basic Definitions (2)

An activity or task is the smallest
unit of work effort within the project
and consumes both time and
resources which are under the
control of the project manager. A
project is a sequence of activities
that has a definite start and finish,
an identifiable goal and an integrated
system of complex but
interdependent relationships.
Basic Definitions (3)

A schedule allocates resources to
accomplish the activities within a
timeframe. The schedule sets
priorities, start times and finish
times.
Basic Definitions (4)

Project management is :
• the adept use of techniques and skills
(hard and soft) in planning and
controlling tasks and resources needed
for the project, from both inside and
outside of organisation, to achieve
results.
The Purpose Of Project
Management

The purpose of project
management is to achieve
successful project completion with
the resources available. A
successful project is one which:
1.
2.
3.
has been finished on time
is within its cost budget
performs to a technical/performance
standard which satisfies the end user.
The Attributes of Successful
Project Management




The effectiveness of project management is
critical in assuring the success of any substantial
undertaking.
Areas of responsibility for the project manager
include planning, control and implementation.
A project should be initiated with a feasibility
study, where a clear definition of the goals and
ultimate benefits need to be established.
Senior managers' support for projects is
important so as to ensure authority and direction
throughout the project's progress and, also to
ensure that the goals of the organization are
effectively achieved within this process.
The Attributes of Successful
Project Management (2)



The particular form of support given
can influence the degree of
resistance the project encounters.
Knowledge, skills, goals and personalities
are all factors that need to be considered
within project management.
The project manager and his/her team
should collectively possess the necessary
and requisite interpersonal and technical
skills to facilitate control over the various
activities within the project.
The Attributes of Successful
Project Management (3)



Projects normally involve the introduction of a
new system of some kind and, in almost all
cases, new methods and ways of doing things.
This impacts upon the work of others: the
"users".
User consultation is an important factor in the
success of projects and, indeed, the degree of
user involvement can influence the extent of
support for the project or its implementation
plan.
An essential quality of the project manager is
that of being a good communicator, not just
within the project team itself, but with the rest of
the organization and outside bodies as well (the
users may be internal or external).
Features Of Projects

Projects are often carried out by a
team of people who have been
assembled for that specific purpose.
The activities of this team may be
co-ordinated by a project manager.
Features Of Projects (2)

Project teams may consist of people
from different backgrounds and
different parts of the organisation.
In some cases project teams may
consist of people from different
organisations.
Features Of Projects (3)

Project teams may be interdisciplinary groups and are likely to
lie outside the normal organisation
hierarchies.
Features Of Projects (4)

The project team will be responsible
for delivery of the project end
product to some sponsor within or
outside the organisation. The full
benefit of any project will not
become available until the project
has been completed.
Responsibilities of the Project
Manager
1.
To plan thoroughly all aspects of the
project, soliciting the active
involvement of all functional areas
involved, in order to obtain and
maintain a realistic plan that
satisfies their commitment for
performance.
Responsibilities of the Project
Manager (2)
2.
To control the organization of
manpower needed by the project.
Responsibilities of the Project
Manager (3)
3.
To control the basic technical
definition of the project, ensuring
that "technical" versus "cost" tradeoffs determine the specific areas
where optimisation is necessary.
Responsibilities of the Project
Manager (4)
4.
To lead the people and
organizations assigned to the
project at any given point in time.
Strong positive leadership must be
exercised in order to keep the many
disparate elements moving in the
same direction in a co-operative.
Responsibilities of the Project
Manager (5)
5.
To monitor performance, costs and
efficiency of all elements of the
project and the project as a whole,
exercising judgement and
leadership in determining the
causes of problems and facilitating
solutions.
Responsibilities of the Project
Manager (6)
6.
To complete the project on schedule
and within costs, and on time these being the overall standards
by which performance of the
project manager is evaluated.
The Project Life Cycle



Projects are “born” when a need is
identified by the customer.
Project life cycles vary in length, from a few
weeks to several years.
Not all projects formally go through all four
phases of the project life cycle.
Phases of the Project Life Cycle (1)

The first phase involves the
identification of a need, problem,
or opportunity.
• The need and requirements are usually
written by the customer into a document
called a request for proposal (RFP).
Phases of the Project Life Cycle (2)

The second phase is the
development of a proposed solution
to the need or problem.
• This phase results in the
submission of a proposal.
• The customer and the winning
contractor negotiate and sign a
contract (agreement).
Phases of the Project Life Cycle (3)

The third phase is performing
the project.
• Different types of resources
are utilized
• Results in the
accomplishment of the
project objective
Phases of the Project Life Cycle (4)

The final phase is
terminating the project.
•Perform close-out
activities
•Evaluate performance
•Invite customer feedback
Benefits of Project Management





Satisfied customers
Additional business
Expansion of career opportunities
Satisfaction of being on a winning team
Improved knowledge and skills
“When projects are successful, everybody
WINS”
Needs Identification






Recognize a need, problem, or
opportunity
Clearly define the problem or need
Quantify the problem
Determine the budget
Prepare a request for proposal
Select the project(s) with the greatest
benefit for the cost expended
Preparing a Request for Proposal



State, comprehensively and in detail, what is
required, from the customer’s point of view
Enable contractors or a project team to
understand what the customer expects so that they
can prepare a thorough proposal
The need may be communicated informally—and
sometimes only orally
Preparing a Request for Proposal (2)

Guidelines for drafting a formal RFP to
external contractors:
•
•
•
•
•
•
statement of work (SOW)
customer requirements
deliverables
customer-supplied items
approvals required by the customer
type of contract
Preparing a Request for Proposal (3)
• Payment terms
• Required schedule for completion
• Instructions for the format and content of the
contractor proposals
• Due date for proposals
• Evaluation criteria
• Occasionally will indicate the funds the
customer has available
Soliciting Proposals
Methods:

Identify a selected group of contractors in
advance and sending each an RFP

Advertise in certain business newspapers

Process considered a competitive situation
Soliciting Proposals (Cont.)



Don’t provide information that is not
provided to all contractors
May hold a bidders’ meeting to explain the
RFP and answer questions
Not all use RFP