Projects management student notes. .ppt
- 1. BA 4115: PROJECT MANAGEMENT GRADING: (A) Group project work = 10% (B) 2 quizzes = 10% (C) Mid-sem exam = 20% (D) End-sem exam = 60% Academic policies and guidelines on: (A) Class attendance (B) Make-ups for quizzes/exams (C) Dress code for class
- 2. I. TERMINOLOGY • 1. MANAGEMENT • (a) soldering subordinates to get things done (F.W. Taylor, 1910). • (b) an activity of directing others to do their work for economic performance – improve the wealth- producing capacity of the economic resources (Peter F. Drucker, 1968).
- 3. • (c) delegation of authority for tasks to be performed in cooperation, synchronization, and communication (Peter F. Drucker, 1977). • (d) attainment of organizational goals in an effective and efficient manner through planning, organizing, leading, and controlling organizational resources. • -- Planning: defining future goals and tasks and resources to attain • them. • -- Organizing: assigning tasks, grouping them into departments, • and allocating resources to departments.
- 4. • Leading: influencing and motivating others to • achieve goals. • Controlling: monitoring employees’ activities in order to keep the organization on track toward its goals, and making corrections as needed. • Effectiveness: degree to which the organization • achieves a stated goal. • Efficiency: use of minimal resources – raw • materials, money and people to • produce a desired volume of output • (Richard L. Daft, 2000)
- 5. • 2. PROJECT • i. (a) A multi-task job that has performance, cost, • time, and scope requirements and that is • done only one time (James Lewis, 2002, p.1). • (b) A project is a problem scheduled for solution • (J.M. Juran, 2000, p.7) • (c) A temporary endeavor undertaken to achieve • a unique product, service, or result (Sid • Kemp, 2004, p. 4)
- 6. • (d) A temporary endeavor undertaken to create a • unique product, service or result. (PMBOK) • -- 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
- 7. • ii. KEY COMPONENTS OF A PROJECT: • (a) A Project needs a specific goal • (b) A Project has a time frame • (c) A Project has a final outcome or result • (d) A Project has a budget and requires resources • (e) A Project requires a plan of action defining • what needs to be done, when, and by whom? • (f) Projects can be evaluated on their own.
- 8. • 3. PROJECT MANAGEMENT • i. (a) The process and techniques to follow when you are doing something you have never done before or trying to improve something you have done before (Rick Morris, 2008, p.1). • (b) Facilitating the planning, scheduling, and controlling of all activities that must be done to achieve project objectives (James Lewis, 2002, p.4).
- 9. • PM includes work processes that initiate, plan, • execute, and close work • Work processes require tradeoffs among the scope, quality, cost, and schedule of the project • PM includes administrative tasks for planning, documenting, and controlling work • PM includes leadership tasks for visioning, motivating, and promoting work associates. • PM knowledge, skills, and methods apply for most projects
- 10. • ii) Importance of Quality Project Management • a) Customer/client satisfaction • -- leading to loyalty and thereby increasing the • market share. • b) Consistent projects/products • -- assists to attain consistency in activities and • enhances the effectiveness by improvement • in the resource and time usage. • c) Less reworks • -- reduces the chances of an activity being • redone which in the end wastes time and money.
- 11. • d) Increase in production • -- improved production is achieved due to • proper evaluation techniques being applied • and better training of workforce. Then all • project activities are done faster. • e) Many projects fail (about half of all projects) • f) Over-spending • g) Errors.
- 12. • iii. Why projects fail? • (a) People who do the work do not take part to plan it. • (b) Failure to plan appropriately. • (c) Failed leadership/management of cost, time, quality. • (d) Failure to assess risks. • (e) Failed estimations. • (f) Failure to define critical path. • (g) Poor project sponsorship. • (h) Undefined requirements. •
- 13. • (i) Miscommunication. • (J) lack of formal project methodology. • (K) Not enough resources • (L) Not enough time • (m) Unclear expectations • (n)Changes to the project • (o) Disagreement about expectations
- 14. II. PROJECT MANAGEMENT CONTEXT • (A) PROJECT LIFE CYCLE • 1. (i) All projects go through predictable stages • called a project life cycle. • (ii) 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
- 15. • (iii) 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 • (iv) Common characteristics of Project life • cycle include: •
- 16. • ● Definite starting and ending points • ● Phases with required activities before • proceeding to the next phase – Initiating, planning, executing (one or more), closing. • ● Organizations adapt life cycle models to • organizational culture
- 17. • (v) Stages of a Project Life Cycle • ●Selecting and initiating • -- project is proposed, • -- planned at a high level, and • -- key participants commit to it in broad terms. • ◊ The first phase of a project is the initiation phase. During this phase a business problem or an • or opportunity is identified and a business case providing various solution options is defined.
- 18. • ◊ Next, a feasibility study is conducted to investigate whether each option addresses the business problem and a final recommended solution is then put forward. • ◊ Once the recommended solution is approved, a project is initiated to deliver the approved solution. • ◊ Terms of reference are completed outlining the objectives, scope
- 19. • ● Planning • -- starts after the initial commitment, includes • -- detailed planning, and • -- ends when all stakeholders accept the entire • detailed plan. • ◊ Once the scope of the project has been defined in the terms of reference, the project enters the detailed planning phase.
- 20. • ◊ This involves creating a: • -- project plan outlining the activities, tasks, • dependencies and timeframes; • -- resource plan listing the labour, equipment and • materials required; • -- financial plan identifying the labour, equipment • and materials costs; • -- quality plan providing quality targets, assurance • and control measures;
- 21. -- risk plan highlighting potential risks and actions to be taken to mitigate those risks; -- acceptance plan listing the criteria to be met to gain customer acceptance; -- communications plan describing the information needed to inform stakeholders; -- procurement plan identifying products to be sourced from external suppliers.
- 22. • ● Executing • -- includes authorizing, • -- executing, • -- monitoring, and • -- controlling work until the customer accepts • the project deliverables.
- 23. • ◊ This phase involves implementing the plans • created during the project planning phase. • -- While each plan is being executed, a series of • management processes are undertaken to • monitor and control the deliverables being • output by the project. • -- This includes identifying change, risks and • issues, reviewing deliverable quality and • measuring each deliverable produced against the acceptance criteria.
- 24. • ◊ Once all of the deliverables have been • produced and the customer has accepted the • final solution, the project is ready for closure.
- 25. • ● Closing the Project • -- all activities after customer acceptance to • ensure project is completed, • -- lessons are learned, resources are reassigned, • contributions are recognized, and benefits are • realized.
- 26. • ◊ Project closure involves releasing the final • -- deliverables to the customer, • -- handing over project documentation to the • business, • -- terminating supplier contracts, • -- releasing project resources and • • -- communicating the closure of the project to • all stakeholders.
- 27. • ◊ The last remaining step is to undertake a post- • implementation review to quantify the level of • project success and identify any lessons learnt • for future projects.
- 29. • NOTA BENE • ● 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
- 30. • (v) General Models of Project Life Cycle • a)
- 32. • (c) • Research and Development (R&D) • Project Life Cycle Model
- 33. • (d) • Construction Project Life Cycle
- 34. • (e) • Information Systems (IS) Project Life Cycle
- 35. • (f) • Life Cycle for Quality Improvement Projects
- 36. • PROJECT ROLES
- 37. • PROJECT EXECUTIVE ROLES • Steering Team (ST) • Sponsor • Chief Projects Officer (CPO)
- 38. • STEELING TEAM • The top person in the organization and his/her direct reports • Collectively represent all of the major functions of the organization • In large organizations, there may be multiple steering teams; such as: • executive team, management team, leadership team, operating team
- 39. • Steering Team Activities • Overall priority setting • Project selection and prioritization • Sponsor selection • General guidance – at set times or at project • milestones (a significant point or event in the project) • Offer encouragement
- 40. • Sponsor • Sponsor – “the person or group that provides financial resources, in cash or in kind, for the project” PMBOK® Guide • Has a major stake in the project outcome • Often a member of the steering team • May pick the project manager and core team • Mentor the project manager • Active role in chartering the project • Share their vision for the project
- 41. • Sponsor Ensures Performance of Customer- Related Tasks • All customers (stakeholders) have been identified. • Customer desires are uncovered and prioritized. • Project delivers what the customers need. • Customers accept the project deliverables.
- 43. VI. CHARTERING PROJECTS (a) Definitional meaning i. An informal contract between the project team and the sponsor • A contract – is an agreement entered into freely by two or more parties. – cannot arbitrarily be changed – offers something of value for each party – is a living document that can evolve with changing conditions
- 44. • Signing a charter represents the transition from the project initiating stage into the project planning stage
- 45. • (b) Importance/Purposes • The four major purposes for a charter are to: 1. authorize the project manager to proceed -- The project charter authorizes the commitment of resources to a project -- The project charter gives the project and the project manager official status within the parent organization.
- 46. 2. Help the project team and sponsor develop a common understanding Benefits associated with the common understanding include: – Teamwork develops. – Agreement, trust, communication, and commitment between the sponsor, project manager, and project team develop – The project team does not worry if management will accept a decision. – The sponsor is less likely to unilaterally change the original agreement.
- 47. 3. help the project team and sponsor commit to the project 4. quickly screen out obviously poor projects
- 49. • Typical Elements in a Project Charter • The term “charter” may be substituted with project request, project submission form, project preplanning form • Typical elements of a project charter include: • Title Risks, assumptions, constraints • Scope overview Spending approvals/budget estimates • Business case Communication plan requirements • Background Team operating principles • Milestone schedule Lessons learned • Signatures and commitment
- 50. • Typical Elements in a Project Charter
- 51. Scope Overview -- A high-level description of what needs to be accomplished and how it will be done • The project in a nutshell -- Used to help prevent scope creep • Considered to be the project boundaries. -- Scope creep – “adding features and functionality (project scope) without addressing the effects of time, costs, resources, or without customer approval.”
- 52. Business Case -- The project purpose or justification statement answers the question “why?” -- Used to justify the necessity of the project Clearly tie the project to the organization’s strategy -- May be just the rationale or include high-level estimates of the costs and benefits of the project. -- Persuades decision makers to support the project and inspire team members to work hard on it.
- 53. Background -- Used to provide more detail to support the scope statement and business case statements. -- The background statement is optional. Milestone Schedule with Acceptance Criteria -- Divides the project into 3 to 8 intermediate points whose completion can be verified -- Lists major milestones and deliverables -- a summary-level schedule that identifies the major schedule milestones or significant points or events in the project.
- 54. Milestone Schedule with Acceptance Criteria -- A column for acceptance criteria helps determine who will judge the quality of the deliverable and by what criteria -- Acceptance criteria represent the project’s vital signs -- Never turn in a deliverable without knowing how it will be judged -- Acceptance criteria – “those criteria, including performance requirements and essential conditions, which must be met before project deliverables are accepted.
- 55. Six-Steps for Constructing a Milestone 1.Briefly describe the current situation that requires the project 2.Describe the project at its successful completion 3.Describe the acceptance criteria for the final project deliverables
- 56. 4. Determine the few key points in the milestone column where quality needs to be verified 5. For each milestone, determine who the primary stakeholder(s) is(are) and how the resulting deliverable will be judged 6. Determine expected completion dates for each milestone
- 57. Risks, Assumptions, and Constraints -- Risk – “an uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives.” PMBOK® Guide -- Assumptions – “factors that, for planning purposes, are considered to be true, real, or certain without proof or demonstration.” PMBOK® Guide -- Constraint – “an applicable restriction or limitation, either internal or external to the project, that will affect the performance of the project.” PMBOK® Guide
- 58. Risk Contingency Plan Example
- 59. Team Operating Principles Instructions -- Establish how meetings will be conducted -- Establish how decisions will be made -- Establish how work gets done -- Establish how everyone will treat each other with respect Lessons Learned Instructions • Consider what has worked well and what has worked poorly • Each project should report lessons learned at key reviews and project completion • Make lessons available in a lessons learned knowledge base • The more specific the lessons, the more likely they will be found useful
- 60. NOTA BENE: -- Reminders of what could prevent successful completion of a project -- The more comprehensive, the more likely to discover problems before they occur -- A false assumption becomes a risk -- A constraint that limits money, time, or resources is a risk
- 61. Spending Approvals or Budget Estimates -- A preliminary budget should include the level of confidence in the estimate -- Some internal projects do not develop formal budgets -- Identify expenses the project manager can authorize and expenses the sponsor needs to control
- 62. Team Operating Principles -- Established to enhance team functioning -- Goal is to increase team effectiveness -- Ensure that all parties are aware of what is expected -- Useful team operating principles deal with conducting meetings, making decisions, accomplishing work, and treating each other with respect.
- 63. Lessons Learned -- Successes and failures of previous projects become practical advice -- Avoid the risk of repeating mistakes from previous projects -- the learning gained from the process of performing the project. -- Lessons learned knowledge base – “a store of historical information and lessons learned about both the outcomes of previous project selection decisions and previous project performance.
- 64. Signatures and Commitment -- Who is involved -- Extent to which each person can make decisions -- Expected time commitment for each person -- The project sponsor, project manager, and core team members show commitment by signing the charter
- 65. Constructing a Project Charter -- It is helpful if the sponsor creates the first draft -- The organization’s leadership team may contribute information in addition to the business case and scope overview -- One to four sentences should be written for the scope overview and business case
- 66. STAKEHOLDER ANALYSIS AND COMMUNICATION PLANNING
- 67. i. Developing the Project Plan • Relationship building and detailed planning occur simultaneously • Plans include: • • • • • Plan communications– “the process of determining project stakeholder information needs and defining a communications approach.” PMBOK® Guide • schedule communications scope budget resources risk quality
- 68. ii. The Communications Management Plan • Communication needs and expectations • The who, what, where, when, and how • Communications management plan – • “the document that describes: the communication needs and expectations for the project; how and in what format information will be communicated; when and where each communication will be made; and who is responsible for providing each type of communication.” PMBOK® Guide
- 69. iii. Determinants of Project Success which are communicated
- 70. iv. Understand the Stakeholders -- Multiple users with different requirements -- May not know what they want -- May not be the actual user -- Unreasonable requests -- Stakeholders other than the users
- 72. vi. Success Criteria for Various Stakeholders • on on meet Profit • Time budget Requirements Partnership Realized Challenges • a) Customer • b) End user • c) Customer Management • d) Project Manager • e) Contractor Management • f) Project Team Management • g) Subcontractor
- 73. vii. Stakeholder Identification and Prioritization Matrix
- 74. viii. Results of Stakeholder Identification and Prioritization -- Set clear direction -- Prioritize objectives -- Recognize complex tradeoffs and consequences -- Facilitate necessary decisions -- Develop a shared sense of risk -- Build a strong relationship with their customers -- Lead with an empowering style -- Serve as good stewards of resources
- 75. ix. Prioritize Stakeholders -- Select top 10 to 15 stakeholders for emphasis during planning -- Get feedback from sponsors -- Team considers top stakeholders throughout the project -- Complete the stakeholder register
- 76. x. Project Decision-Making Guide
- 77. xi. Purposes of a Project Communications Plan ● Use effective communications to: – Set and manage expectations – Resolve conflicting desires – Ensure project work is completed – Document meaningful lessons
- 78. xii. Project Communications Plan Considerations
- 79. xiii. Six Cs of Project Communications -- Clearly state the subject. -- Concisely make the point. -- Courteously deliver the message. -- Consistently reinforce your point. -- Respect confidentiality at all times. -- Compel the recipient to be receptive.
- 80. Model Applied to Project Meetings
- 81. Using Appreciative Inquiry to Understand Stakeholders -- Appreciative inquiry is a positive philosophy for change wherein whole systems convene to inquire for change -- Four phases: Discovery, Dream, Design, and Delivery
- 83. Key Outcome – Stakeholders have elicited a clear understanding of their true needs and wants – Understanding of how their needs and wants link to a future state.
- 84. Chapter 6