Introduction to Project Management and Planning.ppt
- 1. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Advance Project & Production Management (AAPM)-OM3 Introduction to Project Management & Planning
- 2. What is a project? • A project requires an organized set of work efforts. • Projects require a level of detail that is progressively elaborated upon as more information is discovered. • Projects are subject to limitations of time and resources such as money and people. • Projects have a defined beginning and ending. 2 Project – “a temporary endeavor undertaken to create a unique product, service, or result.”
- 3. What is a project? • A project has a unique combination of stakeholders 3 stakeholders – “persons or organizations … that are actively involved in the project, or whose interests may be positively or negatively affected by execution or completion of the project.”
- 4. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4 Project Characteristics A definite start and end point A definite start and end point Once the end point is reached project is over It is attempting to achieve something new
- 5. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Project constraints Time Cost Scope Resources Risk Quality
- 6. Project Management (PM) • PM includes work processes to plan, execute, and controlling of project activities • Work processes require tradeoffs among the scope, quality, cost, and schedule of the project • PM includes leadership tasks for visioning, motivating, and promoting work associates. • PM knowledge, skills, and methods apply for most projects 6 Project management – “the application of knowledge, skills, tools and techniques to project activities to meet project requirements.” PMBOK® Guide
- 7. History of Project Management • 3300 BC Indus Valley Civilization (well constructed houses and city) • 2570 BC Giza Pyramid • 208 BC Great Wall of China • 1917 Henry Gantt introduced Gantt chart • PM emerged as a formal discipline in the 1950s • 1957 Critical Path Method technique (CPM) developed by DuPont Corporation • 1958 Program Evaluation and Review Techniques(PERT) developed by US Navy 7
- 8. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. History of Project Management • 1962 Work Breakdown Structure (WBS) was introduced by US department od Defense • 1965 IPMA, International Project Management Association was formed • 1969 PMI ( Project Management Institute)US based non profit professional organization was established to promote project management professionals • 1987 PMI published PMBOK Guide (after that updated editions kept on coming. 7th edition came 2021) 8
- 9. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. History of Project Management • 1997 critical chain project management technique was invented • 2012 ISO 21500:2012 guidance on Project Management • Manufacturing, research and development, government, and construction projects used and refined management techniques 9
- 10. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Project Management Institute • The largest professional organization • Publishes and regularly updates A Guide to the Project Management Body of Knowledge (PMBOK® Guide) • Established a professional certification - Project Management Professional (PMP®) • Established a second certification—Certified Associate in Project Management (CAPM) 10
- 11. Highlights of Projects • Projects are temporary and unique; operations are more continuous. • Project managers need “soft skills” and “hard skills” to be effective. • Project managers frequently have more responsibility than authority. • Projects go through predictable stages called a life cycle. 11
- 12. Projects Versus Operations • Projects are temporary • Projects have both routine and unique characteristics • Operations consist of the ongoing work needed to ensure that an organization continues to function effectively 12
- 13. Soft Skills and Hard Skills • Soft skills include communication and leadership activities. • Hard skills include risk analysis, quality control, scheduling, and budgeting work • A successful project manager needs both soft and hard skills along with the judgment of when each is more necessary. • Training, experience, and mentoring are instrumental in developing necessary skills. 13
- 14. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Project Life Cycle • All projects go through predictable stages called a project life cycle. • Life cycle allows for control to assure that the project is proceeding in a satisfactory manner and that the results are likely to serve its customer’s intended purpose 14 Project life cycle – “a collection of generally sequential project phases whose name and number are determined by the control needs of the organization or organizations involved in the project.” PMBOK® Guide
- 15. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Project Life Cycle Stages • Selecting and initiating— a project is proposed, planned at a high level, and key participants commit to it in broad terms • Planning—starts after the initial commitment, includes detailed planning, and ends when all stakeholders accept the entire detailed plan. • Executing—includes authorizing, executing, monitoring, and controlling work until the customer accepts the project deliverables. • Closing and realizing—all activities after customer acceptance to ensure project is completed, lessons are learned, resources are reassigned, contributions are recognized, and benefits are realized. 15
- 16. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Project Life Cycle Stages • Most companies insist that a project must pass an approval of some kind to move from one stage to the next • The project life cycle is highly formalized and very specific • Projects are measured at selection, progress reporting, and benefits realization points 16
- 17. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Project Life Cycle Stages 17
- 18. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Defining Project Success and Failure • Project success is creating deliverables that include all of the agreed upon features • Outputs please the project’s customers. • Customers use the outputs effectively as they meet quality goals • The project should be completed on schedule and on budget (meet time and cost constraints). 18
- 19. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Defining Project Success and Failure • Successful projects are completed without heroics • People who work on the project should learn new skills and/or refine existing skills. • Organizational learning should take place and be captured for future projects. • Reap business-level benefits such as development of new products, increased market share, increased profitability, decreased cost, etc. 19
- 20. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Project Success •Meeting Agreements •Cost, schedule, and specifications met •Customer’ Success •Needs met, deliverables used, customer satisfied •Performing Organization’s Success •Market share, new products, new technology •Project Team’s Success •Loyalty, development, satisfaction 20
- 21. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Why Projects Fail • Not enough resources are available for project completion. • Not enough time has been given to the project. • Project expectations are unclear. • Changes in the scope are not understood or agreed upon by all parties involved. • Stakeholders disagree regarding expectations for the project. • Adequate project planning is not used. 21
- 22. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Levels of Decision making 22 Operating decision Administrative decision Strategic decision Taken by management level Lower level management Middle level management Top level management Structure of the decision Routine Semi-structured unstructured Level of resource commitment Minor resource commitment Moderate resource commitment Major resource commitment Time horizon Short-term Medium-term Long-term
- 23. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Facets of Project Analysis 23 Market Analysis Technical Analysis Financial Analysis Economic Analysis Ecological Analysis • Potential Market • Market Share • Technical viability • Sensible choices • Risk • Return • Benefit, costs, shadow prices • Other impacts • Environme ntal damage • Restoration measures
- 24. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Strategy The determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals. -Chandler A.D. 24
- 25. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Formulation of strategies 25 Environmental Analysis Customers, competitors, suppliers, regulations, infrastructure, political and social environment Internal Analysis Technical analysis, production capacity, logistics capacity, financial resources, skilled resource Opportunity and Threats Identify opportunities Strengths and Weaknesses Determine Core capabilities Find the fit between core capabilities and external opportunities Firms Strategies
- 26. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Grand Strategy 26 Contraction Stability Growth Concentration Diversification Vertical Integration Liquidation Divestiture Conglomerate Concentric
- 27. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 27 Strategy Principal Motivations Likely Outcomes Profitability Growth Risk Concentration Ability to serve a growing market, familiarity with technology and market, cost leadership High Moderate Moderate Vertical integration Greater stability for existing and proposed operations, greater market power High Moderate Moderate Concentric diversification Improved utilization of resources High Moderate Moderate Conglomerate diversification Limited scope in present business Moderate High Low Stability Satisfaction with status quo High Low Low Divestment Inadequate profit, poor strategy High Low Low
- 28. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Portfolio Strategy 1. BCG Matrix Developed by Boston Consulting Group 2. GE Stoplight Matrix Developed by General electric Company 3. McKinsey Matrix 28
- 29. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. BCG Matrix Market Growth Rate Market Share High Low High Stars Question Mark Low Cash Cows Dogs 29
- 30. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. General Electric’s Stoplight Matrix Industry Attractiveness Business Strength Strong Average Weak High Invest Invest Hold Medium Invest Hold Divest Low Hold Divest Divest 30
- 31. © 2012 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The McKinsey Matrix Industry Attractiveness Competitive Position Good Medium Poor High Winner Winner Question Mark Medium Winner Average Business Loser Low Profit Producer Loser Loser 31