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Project ManagementBachelor International ManagementSummer Semester 2016

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Project

•A project is a temporary endeavor with a defined beginning and end, thus time-constrained, and often aditionallyconstrained by funding or deliverables, undertaken to meetunique goals and objectives, typically to bring about beneficialchange or added value.

http://en.wikipedia.org/wiki/Project

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Short Definition

• A project is a temporary endeavor undertaken to produce a

unique product or service.

• Temporary – Definitive beginning and end

• Unique – New undertaking, unfamiliar ground

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Project Management

• Project management is the discipline of

• planning,• organizing,

• securing,

• and managing resources to achieve specific goals.

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Project Management vs. daily tasks

• The temporary nature of projects stands in contrast withdaily tasks „business as usual“ (or operations), which are

repetitive, permanent, or semi-permanent functional activities to produce products or services.

• In practice, the management of these two systems is oftenquite different, and as such requires the development of

distinct technical skills and management strategies.

http://en.wikipedia.org/wiki/Business_operations

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Challenges in Project Management

1.The primary challenge of project management is to achieve all of the project goals and objectives while honoring thepreconceived constraints.

• Typical constraints are scope, time, and budget.

2.The secondary -and more ambitious- challenge is to optimizethe allocation and integrate the inputs necessary to meet

pre-defined objectives, thus managing a project effectively and efficently.

http://en.wikipedia.org/wiki/Resource_allocationhttp://en.wikipedia.org/wiki/Operations_researchhttp://en.wikipedia.org/wiki/Scope_(project_management)

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Project Management Triangle

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Triple Constraint

• Increased Scope =increased time + increased cost

• Tight Time =

increased costs + reduced scope

• Tight Budget =

increased time + reduced scope

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Project and Business Outputs

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Project Dilbert

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What are goals? 

A goal is normally a solution to a problem

• When defining goals, answer the following questions:

• What problem will we solve?

•e.g. Accounting department has 2 month turnaround for budget requests, which istoo long.

• In what sense will we solve the problem?

• e.g. Our accounting software will streamline the process of budget re-work.

We often have one overall goal - This may be made up of severalsmaller sub-goals (objectives).

• e.g. The software will look in volatile financial areas first, allowing the accountingdepartment to quickly find the resources.

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What are success criteria?

Success criteria define what must be true in order for the projectto be considered a success:

• These are related to the goals.• However, they are attributes that can be measured.

• e.g. The accounting department’s time to approve a budget is reduced by atleast 50%.

• We can measure after the project’s completion and testfor success.

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What are deliverables?

Deliverables are the actual artifacts created by the project teamfor the customer.

• e.g. Software Project:

•Binary packages

• Source packages (in open source projects)

• Documentation & tutorials

• Version history• Utilities

• Installation software

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What is a project scope?

The project’s scope defines its boundaries.

• This could include specific statements.

•They are called requirements.

• Often, a project manager will work with customers to decide which requirementsare necessary, and which are not.

• This could also include general statements.

•These could be used to determine whether or not a feature request (change) is

appropriate later.

• Thus, scope deals with both requirements and changes.

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What are project risks?

Risks are things that could cause the project to:

• Fail,

• Be delayed,

• Require additional budget,• Require additional personnel.

A project manager should identify:

• Impact: What is the expected negative impact should itoccur?

• Probability: How likely is it to occur?

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What are acitivities?

An activity is something a participant may undertake.

Activities can be:

• Estimated for time & resource requirements,

• Assigned to team member(s).

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What is a team?

A team is a group of participants with shared objectives.

• However, teams do not have to have the same skills andexperience.

Team effectiveness is impacted by:

• Individual participant effectiveness,

• Social dynamics within the team,• Motivation,

• Team leadership.

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Approaches to PM

• Agile, Interactive, Incremental, and phased approaches:

• e.g.: traditional phased approach, critical chain projectmanagement, extreme project management, event chain

methodology, PRINCE2, Process-based management, andagile project management.

Regardless of the methodology employed, careful consideration

must be given to the overall project objectives, timeline, and cost,as well as the roles and responsibilities of all participants andstakeholders.

http://en.wikipedia.org/wiki/Project_stakeholderhttp://en.wikipedia.org/wiki/Agile_Project_Management

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Traditional Approach

• A traditional phased approach identifies a sequence of stepsto be completed.

• In the "traditional approach", five developmental componentsof a project can be distinguished (four stages plus control):

• initiation;

• planning and design;

•execution and construction;

• monitoring and controlling systems;

• completion.

http://en.wikipedia.org/wiki/Project_planning

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Take care!

Not all projects will visit every stage. Projects may be terminatedbefore they reach completion.

Some projects do not follow a structured planning and/ormonitoring process. Some projects will go through steps 2, 3 and4 multiple times.

Many industries use variations of these project stages.

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Project Management Life Cycle

ImplementationPhase

DeploymentPhase

Definition Phase

Inition

Phase

Closing Phase

Planning Phase

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PMI Project Management Process

Initiating Planning Executing Monitoring +Controlling

Closing

t h e o r  y 

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PMI Project Management Process

Initiating Planning

ExecutingMonitoring +Controlling

Closing

r e a l  l i f  e 

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Initiating

• Determine nature and scope of the project.

• Bad performance leads to a likely failure of the project.

• Important: understand the business environment and makesure that all necessary controls are incorporated into theproject.

• Report deficits and make a recommendation on how to fixthem.

Initiating

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Initiating - Activites

• Analyzing the business needs/requirements in measurablegoals,

• Reviewing of the current operations,

• Financial analysis of the costs and benefits including a budget,first ROI analysis, make or buy decision,

• Stakeholder analysis, including users, and support personnel forthe project,

• Project charter including costs, tasks, deliverables, andschedule.

Initiating

http://en.wikipedia.org/wiki/Deliverablehttp://en.wikipedia.org/wiki/Project_charterhttp://en.wikipedia.org/wiki/Stakeholder_analysishttp://en.wikipedia.org/wiki/Budgethttp://en.wikipedia.org/wiki/Financial_analysishttp://en.wikipedia.org/wiki/Business_operationshttp://en.wikipedia.org/wiki/Requirement

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Planning

• After the initiation stage, the project is planned to anappropriate level of detail taking the project constraints intoaccount.

• The main purpose is to plan time, cost and resources adequately to estimate the work needed and to effectivelymanage risk  during project execution.

• Develop an quality assurance plan.

• Failure in planning greatly reduces the project's chances ofbeing success.

Planning

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Planning - Activities

• determine how to plan (e.g. by level of detail) and select theplanning team;

• develop scope statement;

•identify deliverables and create work breakdown structure;

• identify activities needed to complete those deliverables andnetwork activities in their logical sequence;

• estimate resource requirements for the activities;• estimate time and cost for activities;

• developing schedule and budget;• risk planning;• gain formal approval to begin work.

Planning

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Planning - EXTRAS

• Additional processes are generally advisable:

• planning for communications and for scope management,• identifying roles and responsibilities,• determining what to purchase for the project,• holding a kick-off meeting.

• New product development projects: conceptual design of theoperation of the final product.

Planning

http://en.wikipedia.org/wiki/New_product_development

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Executing

• Consists of the processes used to complete the workdefined in the project plan to accomplish the project'srequirements.

Executing

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Executing - Activities

• Coordinating people and resources,

• Integrating and performing the activities of the project (inaccordance with the project management plan),

• Accomplish project goals,

• Deliverables are produced as outputs.

Executing

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Monitoring & Controlling

• Actvities performed to observe project execution so thatpotential problems can be identified in a timely manner.

• Corrective action can be taken to control the execution ofthe project.

• The key benefit: project performance is observed andmeasured regularly to identify variances from the projectmanagement plan.

Monitoring +Controlling

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Monitoring & Controlling - Activities

• Measuring the ongoing project activities ('where we are');

• Monitoring the project variables (cost, effort, scope, etc.)against the project management plan and the projectperformance baseline (where we should be);

• Identify corrective actions to address issues and risksproperly (How can we get on track again);

• Influencing the factors that could circumvent integratedchange control so only approved changes are implemented

Monitoring +Controlling

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Closing

•Closing includes the formal acceptance of the project byinitiator and the ending thereof.

• Administrative activities include the archiving of the files anddocumenting lessons learned.

Closing

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Closing - Activities

• Project close: Finalize all activities across all of the processgroups to formally close the project or a project phase.

• Contract closure: Complete and settle each contract(including the resolution of any open items) and close eachcontract applicable to the project or project phase.

•Knowledge Management: Pin down lessons learned (positiveas well as negeative ones) in Knowledge database.

• Disburden the team leader and the team.

Closing

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Schedule Example

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Milestones Example