Get the Best out of Your Project Investment – Using Microsoft Project Ricky Ip Program Planning Professionals Asia Pacific Region November 17, 1999 This

Get the Best out of Get the Best out of Your Project Your Project Investment – Using Investment – Using Microsoft ProjectMicrosoft ProjectRicky IpRicky Ip

Program Planning ProfessionalsAsia Pacific Region

November 17, 1999

program planning professionals - shaping the future of program management

Agenda

IntroductionProject and Its ManagementProject Management – An Indispensable Discipline?Positioning Project ManagementThe Tool for A ToolMicrosoft Project As A ToolApplications


Introduction

Get the Best out of Your Project Investment – Using Microsoft Project


Introduction

Get the Best out of Your Project Investment – Using Microsoft Project


Introduction

A Project Is An Investment of Resources, i.e.,

TimeCostManpower


Project and Its Management

What is a project? A project is a unique, non-

repetitive and dynamic set of activities, designed to achieve innovation, metamorphosis or the introduction of something new, or to resolve a problem

(Wilson-Murray, R., 1997)



Characteristics of ProjectSpecific ObjectivesFiniteUniquenessLimits on ResourcesLife Cycle



Elements That Contribute Project Success




CHAOS




CHAOS




CommunicationsHAOS






CommunicationsHumanityAOS




CommunicationsHumanityAllocationOS




CommunicationsHumanityAllocationObservationS




CommunicationsHumanityAllocationObservationStandard



What is Project Management? Project Management is a

specialized branch of management which has evolved in order to coordinate and control some of the complex activities of modern industry

(Lock, D., 1990)



Project Management Is A Tool to:

Avoid Abortive WorkProvide Framework to Implement Quality Control Check Points / AuditGenerate More Focused Work PlanReduce Overlap of DutiesReflect Actual ProgressIdentify Risks and Changes



The Return Is:Improvement on ControlBetter Customer RelationshipShorter Development TimeLower CostHigher Quality and ReliabilityHigher Profit Margin



The Return Is: (Cont’d)

Sharper Orientation Towards ResultsBetter Interdepartmental CoordinationHigher Morale

(Dave, E.W., 1974)


Indispensable Discipline?

World Economy Growth Brought to Earth A Number of Business OpportunitiesHowever, the Bloom Has Also Created A Selection Force, i.e. Competition


Indispensable Discipline?

To Strive for Success in A World of Competition, Business Entities Need to Accomplish the Follows:

Identify, Control and Reduce CostReduce Time-To-MarketIncrease ProductivityCut Response Time to Customers


Positioning

Project Management Is A Very Strange Discipline. It Can Be Classified As:

An ArtA ScienceA TechnologyA Strategic Tool


The Tool for A Tool

Complexity has driven the need for computerized systemNo absolute solution and may change with time;

Depends on projectOrganizational culturalResourcesExisting situation


The Tool for A Tool

Selection of A ToolOperational Criteria

Scheduling activitiesBudgeting, cost estimation and cash flowResourcesProject structure


The Tool for A Tool

Selection of A Tool (Cont’d)

Operational CriteriaConfiguration managementProject controlReportingGeneral system characteristics


The Tool for A Tool

Selection of A ToolLife Cycle Cost Related Criteria

Purchase costCost of hardware, facilities and so onEstimated cost of operation and maintenanceExpected service lifeCost of updating and new versionEstimated value at phase out time


The Tool for A Tool

Sample Evaluation Result

Package A Package BCriteria Weight score/points score/points

Activities and Scheduling 20 5.56 4.66Budgeting, Cost Estimation, 15 6.26 5.22 and Cash FlowsResources 15 5.76 6.98Project Structure 10 8.10 6.45Configuration Management 10 7.80 10.00Project Control 10 5.46 8.00Reporting 10 4.80 7.60General Systems Characteristics 10 5.60 7.20Total Points 100 49.34 56.11Total Cost $36,000 $43,500Relative Cost (with respect to the 100% 121% lowest-cost package)Effectiveness Ratio (points/$1,000) 1.34 1.29

WEIGHTED SCORES FOR CRITERIA SETS AND RESULTS


Microsoft Project As A Tool

Microsoft Project 98Fifth Windows-Based ReleaseOver 2 Million Users WorldwideBuilt Up by Enormous Research and Development Efforts Focused on the Entire Spectrum of PlannersType of Users Ranges from Novice Planners to Expert Project Management Professionals



Three Types of UsersNovice Users Draws with Project

Not a graphic toolGenerate professional look graphicsPlan cannot be used because of the lack of precedence between poorly defined tasks



Three Types of UsersAverage Users Plans with Project

Generate average plans with precedenceRe-scheduling possibleProgress updateResources and costs tracked by Separate utilities, e.g. Excel, Access, etc.



Expert Users Tracks with ProjectDetailed Plans Up to A Certain ComplexityTasks Have PrecedenceResources and Costs UsedWorkgroup CapabilityActual Work Done Recorded



Design GoalsGive Users More Control Over Their Project plansImprove Project Communications to Keep Everyone Informed and InvolvedMake Microsoft 98 A Natural extension of Microsoft Office 97Provide Powerful Tools to Build Customized Planning Solutions


Applications

Use of Project in Supplier Business Contingency Planning

The ProblemOver a hundred suppliersEach with different lead-times and shipment periodCannot identify high risk supplierNeed to know the drop-dead day for ordering extra inventory from Suppliers


Applications

Use of Project in Supplier Business Contingency Planning

The SolutionBuild up Microsoft Project plan to simulate the scenarioUses precedence relationship to simulate scenario of air, sea and land transportationGot rough idea on how to arrange cash flow


Applications

Use of Project in Resource Management for Small-To-Medium Sized Enterprises (SME)

Previous ProcessVarious document for various reportsUses Excel to draw planUses Visio, AutoCAD, Word and Excel for tender plan submitSeparate Accounting procedure to manage or forecast cash flow


ApplicationsUse of Project in Resource Management for Small-To-Medium Sized Enterprises (SME)

The ProblemUnable to view resource management statusCannot get realistic cost planning and forecastNo Consistency in process or planning of project workUnable to compare planned schedule with actual progressFrequent slippageLow profit marginHigh level of inventory


Applications

Use of Project in Resource Management for Small-To-Medium Sized Enterprises (SME)

The SolutionUse of Project to track progress and resourcesSupport decision making


Applications

Use of Microsoft Project As A Solution for ERP System Implementation

BackgroundAn automobile sales company responsible for distribution of vehicle and partsERP system needed to be upgraded by a fixed dateNo down time can be afforded


Applications


The ApproachDefine scope – WBS / OBSProject management control solutionPlanning with Microsft Project 98


Applications


HardwareNT4 client-sever platformMicrosoft Project 98 as planning tool and workgroup structureMicrosoft Access as issue escalationMicrosoft Excel as an analytic tool


The End

Thank You

Documents

Get the Best out of Your Project Investment – Using Microsoft Project Ricky Ip Program Planning Professionals Asia Pacific Region November 17, 1999 This