project managementUnit 1.pdf
- 2. ❑ Project management is the use of specific knowledge, skills, tools and techniques to deliver something of value to people. ❑ Project management is the application of processes, methods, skills, knowledge and experience to achieve specific project objectives according to the project acceptance criteria within agreed parameters
- 5. The unique features which classify an activity as a project/ The characteristics of a project 1. A project involves a single, definable purpose, end-item, or result, usually specified in terms of cost, schedule, and performance requirements. 2. Every project is unique in that it requires doing something different than was done previously. Even in ‘routine’ projects such as home construction, variables such as geography, labour market, and public services make each project different. A project is a one time activity, never to be exactly repeated again. 3. Projects are temporary activities. An ad hoc organization of personnel, material and facilities is assembled to accomplish a goal, usually within a scheduled time frame. Once the goal is achieved, the organization is disbanded or reconfigured to begin work on a new goal. 4. Projects cut across organizational lines because they need the skills and talents from multiple functions, professions and organizations. 5. Involvement in anything new or different always carries some uncertainty about the outcome. It also involves unfamiliarity and risk. 6. The organization doing the project usually has something at stake. The work calls for special scrutiny or effort, because failure would jeopardize the organization or its goals. 7. A project is the process of working to achieve a goal. During the process the project passes through several distinct phases in the project life cycle. Often, the tasks, people, organizations, and resources change as the project moves from one phase to the next.
- 6. Complexity is measured by magnitude of the effort, number of groups and organizations that need to be coordinated, and the diversity in the skills or expertise needed to accomplish the work. Time and resource commitments tend to increase with complexity. Uncertainty is measured roughly by the difficulty in predicting the final outcome in terms of the dimensions of time, cost and technical performance. In most projects there is some uncertainty in one or two dimensions, at least in the initial stages of the planning. The most complex projects have uncertainty in all three dimensions (e.g. the international space station). The cost curve indicates that the expense of projects increases roughly in proportion to both complexity and uncertainty. When the uncertainty of the project drops to nearly zero, and when the project effort is repeated a large number of times, then the work is usually no longer considered a project. In all cases, projects are conducted by organizations that, after the project is completed, go on to do something else (construction companies) or are disbanded (Mars exploration team). In contrast, repetitive, high certainty activities (manufacturing the products in large quantities, tourist trips to different places) are performed by permanent organizations that do the same thing over and over, with few changes in operations other than scheduling. It is because projects are not repetitive efforts, they must be managed differently.
- 7. Project Management: The Need ➢ The importance of Project Management is an important topic because all organizations, be they small or large, at one time or other, are involved in implementing new undertakings. These undertakings may be diverse, such as the development of a new product or service, the establishment of a new production line in a manufacturing enterprise and a public relations promotion campaign. ➢ On a macro level organizations are motivated to implement project management techniques to ensure that their undertakings (small or major) are delivered on time, within the cost budget and to the stipulated quality. ➢ On a micro level, project management combined with an appropriate information management system has the objectives of: (a) reducing project overhead costs; (b) customizing the project workplace to fit the operational style of the project teams and respective team members; (c) proactively informing the executive management of the strategic projects on a real-time basis; (d) ensuring that project team members share accurate, meaningful and timely project documents; and (e) ensuring that critical task deadlines are met.
- 8. Project Management: The Evolution
- 9. The objectives of Project Management 1. The successful development and implementation of all project’s procedures which includes Initiation, Planning and Design, Construction and Execution, Monitoring and Control, Completion. The smooth and uninterrupted development and execution of all the above procedures ensures the success of a project. 2. Productive guidance, efficient communication and apt supervision of the project’s team. The success or failure of a project is highly dependent on teamwork, thus, the key to success is always in collaboration. To this end, the establishment of good communication is of major importance. 3. The achievement of the project’s main goal within the given constraints. The most important constraints are, Scope in that the main goal of the project is completed within the estimated Time, while being of the expected Quality and within the estimated Budget. Staying within the agreed limitations always feeds back into the measurement of a project’s performance and success.
- 10. 4. Optimization of the allocated necessary inputs and their application to meeting the project’s pre- defined objectives, is a matter where is always space for improvement. All processes and procedures can be reformed and upgraded to enhance the sustainability of a project and to lead the team through the strategic change process. 5. Production of a complete project which follows the customer’s exclusive needs and objectives. Meeting the customer’s expectations and keeping them happy will lead to a successful collaboration which might help to eliminate surprises during project execution.
- 11. Project management: The Person, The Team, The Methodology Three key features distinguish PM from traditional forms of management: the person, the team and the methodology. The person: The most important feature regarding PM is the role of the project manager – the individual who has overall responsibility to plan, direct and integrate the efforts of all project stakeholders to achieve the project goal. He coordinates the efforts across all of the involved functional areas and organizations, and oversees the planning and control of costs, schedules, and work tasks. The team: A project is a team effort, and the PM is bringing together individuals and groups to form the team and to direct toward a common goal. Often, the team consists of people and groups from different functional areas and organizations. Depending on project requirements, the size and composition of the team may fluctuate, and the team may disband after the project is completed.
- 12. The methodology: The project manager and the project team typically perform work in phases according to a “project management methodology”. As a project proceeds from one phase to the next, the project management methodology helps the project manager to 1. Identify the required project tasks 2. Identify the required resources and costs 3. Establish priorities 4. Plan and update schedules 5. Monitor and control end item quality and performance and 6. Measure project performance.
- 15. ➢ Initiating: This initial phase is brief, but four major things occur during it. ➢ First, the project has to be formally created and the manager needs to be given the authority to lead the project. ➢ Second, the key external stakeholders associated with the project are identified, including the customer, funding agency, and/or any key high-level management entities. ➢ Third, a clear, written understanding of what the PM is tasked with delivering has to be generated. This is called, unsurprisingly, defining the “deliverable” of the project. At this same time, any specific high-level constraints (e.g., max cost, schedule), performance requirements, or other key customer requirements are defined and documented. ➢ Finally, the project is kicked off and started.
- 16. ➢ Planning: The second primary phase of a project is where the unpacking and planning of the project takes place. There are a large number of tasks and work that comprise this phase, but these can be sorted into four basic categories. First is the development, definition, and approval of the project’s overall scope, its quality requirements, and a baselined budget and schedule. Second is the development of procurement, risk, and general execution, integration, & communication plans. Third is the determination of how the project will need to be staffed, and the acquisition/hiring of the key members of that planned organization. And finally, a plan for identifying, analyzing, and managing the expectations of all external stakeholders, both for, neutral, and against the project.
- 17. Executing: This is the phase when the actual work of creating the project’s deliverable occurs. The PMs primary functions during this period include directing and managing the work of the project staff, managing and mitigating risks that threaten project success, and ensuring that external stakeholders are engaged appropriately and that their expectations are being met.
- 18. Closing: The last step of a project is relatively easier than the preceding three phases of the project—but it’s no less important. This step is when the PM oversees the formal close-outs of external and internal procurement efforts, delivers the project’s product scope to the customer (including formal sign-off for delivery), documents the key lessons learned from the project, and then formally closes the project.
- 19. Different forms of PM PM has different forms with different names, including Systems management, Task force management, Team management, Ad hoc management, Matrix management, and Program management. Regardless, all these forms share two features: (1) a project team or project organization created uniquely for the purpose of achieving certain goal, and (2) a single person – a project manager – assigned responsibility for seeing that the goal is accomplished. Basic PM (the most commonly understood concept of PM) 1. The most common project approaches places the project manager and the functional managers on the same organizational level so that both report to the same senior level person. 2. The project manager is given final authority to plan, direct, organize, and control the project form start to finish. 3. The project manager may work directly with any level and functional area of the organization to accomplish project goals. 4. He reports to the GM or owner, and keeps him apprised of project status. 5. Some times the project manager has authority to hire personnel and procure facilities although more often he negotiates with functional managers to borrow them.
- 20. Program management The term “program management‘” is often used interchangeably with PM due to the similarities of programs and projects: both 1. are defined in terms of goals (in terms of desired product or service) about what must be accomplished. 2. emphasize the time period over which goals are to be pursued, and 3. require plans, budgets, and schedules for accomplishing the goals. Examples of program management that contains many projects within them are an Urban development program (housing rehab, job and skill training, and small business consulting assistance), a Mars exploration program (unmanned probes to Mars and its Moons, manned mission to Mars, etc.).
- 21. New Venture Management PM resembles new venture management, a type of management used in consumer-oriented firms for generating new products or markets. In new venture management, a team is created to find new products or markets that fit an organization’s specialized skills, capabilities and resources. Once it has defined the product, the team may go on to design and develop it, then determine the means to produce, market, and distribute it. Similarities between the PM and VM include: • The focus on a single unifying goal • Their multidisciplinary nature, with experts and managers from various functional areas working together under a single head.
- 22. Product management ➢The term product management refers to a single person for overseeing all aspects of a products production scheduling, inventory, distribution and sales. ➢The product manager coordinates and expedites the product’s launch, manufacture, distribution and support. Like the PM, the product manager communicates directly with functions inside and outside the organization, and coordinates efforts directed at product goals. ➢The product manager is active in managing conflicts and resolving problems that would degrade manufacturing capability, forestall distribution, alter price, harm sales, or in any way affecting financing, production, and marketing of the product. For products with long lifecycles, the product manager role is filled on a rotation basis. All the project forms described above are found in the commercial environment. However, the forms commonly found in government and military are basic PM and program management.