Project Management Summary Lecture 1 Summary Lecture 1 Summary Chapter 1 Summary Chapter 1 Summary Chapter 2 Summary Chapter 2

Project ManagementProject Management

Summary Lecture 1Summary Lecture 1Summary Chapter 1Summary Chapter 1Summary Chapter 2Summary Chapter 2

IntroductionIntroduction

What is a Project?What is a Project?• A project is any sort of planned undertaking.A project is any sort of planned undertaking. • All of us have been involved in projects, All of us have been involved in projects,

whether they be our personal projects or in whether they be our personal projects or in business and industry. business and industry.

• Examples of typical projects are :Examples of typical projects are : write a reportwrite a report plan a weddingplan a wedding plant a gardenplant a garden build a house extensionbuild a house extension

Other Examples of ProjectsOther Examples of Projects

Industrial projectsIndustrial projects• construct a buildingconstruct a building• rewire premisesrewire premises• provide a gas supply to an provide a gas supply to an

commercial buildingcommercial building• build a highwaybuild a highway• design a new cardesign a new car

Other Examples of ProjectsOther Examples of Projects

Business projectsBusiness projects• develop a computer systemdevelop a computer system• introduce a new productintroduce a new product• prepare an annual reportprepare an annual report• set up a new officeset up a new office

Projects can be of any size and Projects can be of any size and duration.duration.

Characteristics of ProjectsCharacteristics of Projects

Projects can be simple, like planning Projects can be simple, like planning a party, or complex like launching a a party, or complex like launching a space shuttle.space shuttle.

Generally projects are made up of :Generally projects are made up of :• a defined beginning pointa defined beginning point• multiple activities which are multiple activities which are

performed performed to a plan / schedule (and to a plan / schedule (and have)have)

• a defined ending point.a defined ending point.

Therefore a project may be Therefore a project may be defined as a means of defined as a means of

moving from a problem to a moving from a problem to a solution via a series of solution via a series of

planned activities.planned activities.

SummarySummary

Two essential features are present in Two essential features are present in every project no matter how simple or every project no matter how simple or complicated they are.complicated they are.• In the first place, all projects must be In the first place, all projects must be

planned out in advance if they are to be planned out in advance if they are to be successfully executed. successfully executed.

• Secondly, the execution of the project Secondly, the execution of the project must be controlled to ensure that the must be controlled to ensure that the desired results are achieved.desired results are achieved.

Activities & RelationshipsActivities & Relationships On most projects it is possible to carry out On most projects it is possible to carry out

multiple activities simultaneously.multiple activities simultaneously. Usually it is possible to perform several activities Usually it is possible to perform several activities

at the same time, however there will be activities at the same time, however there will be activities which cannot begin until a preceding activity has which cannot begin until a preceding activity has been completed.been completed.

These relationships are referred to as These relationships are referred to as dependencies or precedencies, and when dependencies or precedencies, and when planning a project it is important to establish the planning a project it is important to establish the order of precedence of dependent activities, and order of precedence of dependent activities, and to establish those activities which can be to establish those activities which can be performed in parallel with other activities.performed in parallel with other activities.

Regardless of the nature or Regardless of the nature or size of your project a size of your project a

successful outcome can successful outcome can only be achieved by using only be achieved by using sound project management sound project management

techniques.techniques.

Summary of ProjectsSummary of Projects

Projects are typically:Projects are typically:1.1. Complex and numerous activitiesComplex and numerous activities

2.2. Unique - a one-time set of eventsUnique - a one-time set of events

3.3. Finite - with a begin and end dateFinite - with a begin and end date

4.4. Involve limited resources and budgetInvolve limited resources and budget

5.5. Involve many people, usually across several Involve many people, usually across several functional areas in the organizationsfunctional areas in the organizations

6.6. Sequenced activitiesSequenced activities

7.7. Goal-orientedGoal-oriented

8.8. End product / service orientedEnd product / service oriented

Ten Major Causes of Project Ten Major Causes of Project FailureFailure

1.1. Lack of interest beyond the project teamLack of interest beyond the project team2.2. Solution in search of a problemSolution in search of a problem3.3. No one in chargeNo one in charge4.4. Project plan lacks structureProject plan lacks structure5.5. Project plan lacks detailProject plan lacks detail6.6. Project is under budgetedProject is under budgeted7.7. Insufficient resources allocated to projectInsufficient resources allocated to project8.8. Project not tracked to the planProject not tracked to the plan9.9. Poor Communication on teamPoor Communication on team10.10. Project strays from original goalsProject strays from original goals

Other Underlying Subtle Factors for Other Underlying Subtle Factors for Project FailuresProject Failures

Inadequate project manager skills, Inadequate project manager skills, influence, and authority influence, and authority

Poor coordination and rapport with the Poor coordination and rapport with the clientclient

Lack of project team participation and Lack of project team participation and team spiritteam spirit

Unrealistic schedulesUnrealistic schedules Project is of a different type or more Project is of a different type or more

complex than handled previously by complex than handled previously by manager / teammanager / team

Other Underlying Subtle Factors for Other Underlying Subtle Factors for Project Failures (2)Project Failures (2)

Plans were based upon insufficient data Plans were based upon insufficient data No attempt was made to systematize the No attempt was made to systematize the

planning process planning process No one knows or understands the ultimate No one knows or understands the ultimate

objective of the projectobjective of the project Project estimates are best guesses, and Project estimates are best guesses, and

are not based upon standards or historyare not based upon standards or history No one bothered to see if there would be No one bothered to see if there would be

personnel available with the necessary personnel available with the necessary skillsskills

Most Difficult Issue to Most Difficult Issue to Overcome - People working Overcome - People working to meet their own objectives to meet their own objectives / ends, not those defined in / ends, not those defined in the project specifications the project specifications

The Project OverviewThe Project Overview

State the ProblemState the Problem• What is the Problem/Opportunity?What is the Problem/Opportunity?• What is to be done?What is to be done?• Who is responsible for the project?Who is responsible for the project?• When must the project be completed?When must the project be completed?• Type - Business, Functional, TechnicalType - Business, Functional, Technical

The Project Overview (Continued)The Project Overview (Continued)

Identify Project Goals Identify Project Goals • Define project end product or serviceDefine project end product or service• Define to settle misunderstandingsDefine to settle misunderstandings• Establish a methodology to accomplish Establish a methodology to accomplish

objectives that is:objectives that is:• Action orientatedAction orientated• ShortShort• SimpleSimple• StraightforwardStraightforward• UnderstandableUnderstandable

The Project Overview (Continued)The Project Overview (Continued)

Develop Project Objectives (Critical Develop Project Objectives (Critical success factors or Milestones)success factors or Milestones)• Sub-goals that direct work activitySub-goals that direct work activity• Must be completed to achieve project goalMust be completed to achieve project goal• Objective statement should be (Objective statement should be (SMARTSMART):):

SSpecificpecific MMeasurableeasurable AAssignablessignable RRealisticealistic TTime-relatedime-related

Basic Definitions (1)Basic Definitions (1)

A A projectproject is an interrelated set of is an interrelated set of activities that has a definite starting and activities that has a definite starting and ending point and results in the ending point and results in the accomplishment of a unique, often major accomplishment of a unique, often major outcome. "Project management" is, outcome. "Project management" is, therefore, the planning and control of therefore, the planning and control of events that, together, comprise the events that, together, comprise the project. project. Project management aims to Project management aims to ensure the effective use of resources and ensure the effective use of resources and delivery of the project objectives on time delivery of the project objectives on time and within cost constraintsand within cost constraints..


An An activityactivity or task is the smallest or task is the smallest unit of work effort within the project unit of work effort within the project and consumes both time and and consumes both time and resources which are under the resources which are under the control of the project manager. control of the project manager. A A project is a sequence of activities project is a sequence of activities that has a definite start and finish, an that has a definite start and finish, an identifiable goal and an integrated identifiable goal and an integrated system of complex but system of complex but interdependent relationshipsinterdependent relationships..


A A scheduleschedule allocates resources to allocates resources to accomplish the activities within a accomplish the activities within a timeframe. timeframe. The schedule sets The schedule sets priorities, start times and finish priorities, start times and finish timestimes..


Project managementProject management is : is :• the adept use of techniques and skills the adept use of techniques and skills

(hard and soft) in planning and (hard and soft) in planning and controlling tasks and resources needed controlling tasks and resources needed for the project, from both inside and for the project, from both inside and outside of organisation, outside of organisation, to achieve to achieve resultsresults..

The Purpose Of Project The Purpose Of Project ManagementManagement

The purpose of project The purpose of project management is to achieve management is to achieve successful project completion with successful project completion with the resources available. A the resources available. A successful project is one which:successful project is one which:

1.1. has been finished on timehas been finished on time

2.2. is within its cost budgetis within its cost budget

3.3. performs to a technical/performance performs to a technical/performance standard which satisfies the end user.standard which satisfies the end user.

The Attributes of Successful The Attributes of Successful Project ManagementProject Management

The effectiveness of project management is The effectiveness of project management is critical in assuring the success of any substantial critical in assuring the success of any substantial undertaking.undertaking.

Areas of responsibility for the project manager Areas of responsibility for the project manager include planning, control and implementation.include planning, control and implementation.

A project should be initiated with a feasibility A project should be initiated with a feasibility study, where a clear definition of the goals and study, where a clear definition of the goals and ultimate benefits need to be established.ultimate benefits need to be established.

Senior managers' support for projects is Senior managers' support for projects is important so as to ensure authority and direction important so as to ensure authority and direction throughout the project's progress and, also to throughout the project's progress and, also to ensure that the goals of the organization are ensure that the goals of the organization are effectively achieved within this process.effectively achieved within this process.

The Attributes of Successful The Attributes of Successful Project Management (2) Project Management (2)

The particular form of support given The particular form of support given can influence the degree of can influence the degree of resistance the project encounters.resistance the project encounters.

Knowledge, skills, goals and personalities Knowledge, skills, goals and personalities are all factors that need to be considered are all factors that need to be considered within project management.within project management.

The project manager and his/her team The project manager and his/her team should collectively possess the necessary should collectively possess the necessary and requisite interpersonal and technical and requisite interpersonal and technical skills to facilitate control over the various skills to facilitate control over the various activities within the project.activities within the project.

The Attributes of Successful The Attributes of Successful Project Management (3)Project Management (3)

Projects normally involve the introduction of a Projects normally involve the introduction of a new system of some kind and, in almost all cases, new system of some kind and, in almost all cases, new methods and ways of doing things. This new methods and ways of doing things. This impacts upon the work of others: the "users".impacts upon the work of others: the "users".

User consultation is an important factor in the User consultation is an important factor in the success of projects and, indeed, the degree of success of projects and, indeed, the degree of user involvement can influence the extent of user involvement can influence the extent of support for the project or its implementation plan.support for the project or its implementation plan.

An essential quality of the project manager is that An essential quality of the project manager is that of being a good communicator, not just within the of being a good communicator, not just within the project team itself, but with the rest of the project team itself, but with the rest of the organization and outside bodies as well (the users organization and outside bodies as well (the users may be internal or external).may be internal or external).

Features Of Projects Features Of Projects

Projects are often carried out by a Projects are often carried out by a team of people who have been team of people who have been assembled for that specific purpose. assembled for that specific purpose. The activities of this team may be The activities of this team may be co-ordinated by a project manager.co-ordinated by a project manager.

Features Of Projects (2)Features Of Projects (2)

Project teams may consist of people Project teams may consist of people from different backgrounds and from different backgrounds and different parts of the organisation. In different parts of the organisation. In some cases project teams may some cases project teams may consist of people from different consist of people from different organisations.organisations.


Project teams may be inter-Project teams may be inter-disciplinary groups and are likely to disciplinary groups and are likely to lie outside the normal organisation lie outside the normal organisation hierarchies.hierarchies.


The project team will be responsible The project team will be responsible for delivery of the project end for delivery of the project end product to some sponsor within or product to some sponsor within or outside the organisation. The full outside the organisation. The full benefit of any project will not benefit of any project will not become available until the project become available until the project has been completed.has been completed.

Responsibilities of the Project Responsibilities of the Project ManagerManager

1.1. To plan thoroughly all aspects of To plan thoroughly all aspects of the project, soliciting the active the project, soliciting the active involvement of all functional areas involvement of all functional areas involved, in order to obtain and involved, in order to obtain and maintain a realistic plan that maintain a realistic plan that satisfies their commitment for satisfies their commitment for performance.performance.

Responsibilities of the Project Responsibilities of the Project Manager (2)Manager (2)

2.2. To control the organization of To control the organization of manpower needed by the project.manpower needed by the project.

Responsibilities of the Project Responsibilities of the Project Manager (3) Manager (3)

3.3. To control the basic technical To control the basic technical definition of the project, ensuring definition of the project, ensuring that "technical" versus "cost" trade-that "technical" versus "cost" trade-offs determine the specific areas offs determine the specific areas where optimisation is necessary.where optimisation is necessary.


4.4. To lead the people and To lead the people and organizations assigned to the organizations assigned to the project at any given point in time. project at any given point in time. Strong positive leadership must be Strong positive leadership must be exercised in order to keep the many exercised in order to keep the many disparate elements moving in the disparate elements moving in the same direction in a co-operative.same direction in a co-operative.


5.5. To monitor performance, costs and To monitor performance, costs and efficiency of all elements of the efficiency of all elements of the project and the project as a whole, project and the project as a whole, exercising judgement and exercising judgement and leadership in determining the leadership in determining the causes of causes of problems and problems and facilitating solutions.facilitating solutions.


6.6. To complete the project on To complete the project on schedule and within costs, and on schedule and within costs, and on time - these being the overall time - these being the overall standards by which performance of standards by which performance of the project manager is evaluated.the project manager is evaluated.

The Project Life CycleThe Project Life Cycle

Projects are “born” when a need is Projects are “born” when a need is identified by the customer.identified by the customer.

Project life cycles vary in length, from a few Project life cycles vary in length, from a few weeks to several years.weeks to several years.

Not all projects formally go through all four Not all projects formally go through all four phases of the project life cycle.phases of the project life cycle.

Phases of the Project Life Cycle (1)Phases of the Project Life Cycle (1)

The first phase involves the The first phase involves the identification of a need, problem, identification of a need, problem, or opportunity.or opportunity.

• The need and requirements are usually The need and requirements are usually written by the customer into a document written by the customer into a document called a request for proposal (RFP).called a request for proposal (RFP).


The second phase is the The second phase is the development of a proposed development of a proposed solution to the need or problem.solution to the need or problem.

• This phase results in the This phase results in the submission of a proposal.submission of a proposal.

• The customer and the winning The customer and the winning contractor negotiate and sign a contractor negotiate and sign a contract (agreement).contract (agreement).


TheThe third phase isthird phase is performing performing the project.the project.

•Different types of resources Different types of resources are utilizedare utilized

•Results in the Results in the accomplishment of the accomplishment of the project objectiveproject objective


TheThe final phasefinal phase is is terminating the projectterminating the project..

•Perform close-out Perform close-out activitiesactivities

•Evaluate performanceEvaluate performance

•Invite customer feedbackInvite customer feedback

Benefits of Project ManagementBenefits of Project Management

Satisfied customersSatisfied customers Additional businessAdditional business Expansion of career opportunities Expansion of career opportunities Satisfaction of being on a winning team Satisfaction of being on a winning team Improved knowledge and skillsImproved knowledge and skills

““When projects are successful, everybody When projects are successful, everybody WINS”WINS”

Needs IdentificationNeeds Identification

Recognize a need, problem, or Recognize a need, problem, or opportunityopportunity

Clearly define the problem or needClearly define the problem or need Quantify the problem Quantify the problem Determine the budgetDetermine the budget Prepare a request for proposalPrepare a request for proposal Select the project(s) with the greatest Select the project(s) with the greatest

benefit for the cost expendedbenefit for the cost expended

Preparing a Request for ProposalPreparing a Request for Proposal

State, comprehensively and in detail, what is State, comprehensively and in detail, what is

required, from the customer’s point of viewrequired, from the customer’s point of view Enable contractors or a project team to Enable contractors or a project team to

understand what the customer expects so that they understand what the customer expects so that they

can prepare a thorough proposalcan prepare a thorough proposal The need may be communicated informally—and The need may be communicated informally—and

sometimes only orallysometimes only orally

Preparing a Request for Proposal (2)Preparing a Request for Proposal (2)

Guidelines for drafting a formal RFP to Guidelines for drafting a formal RFP to external contractors:external contractors:• statement of work (SOW)statement of work (SOW)• customer requirementscustomer requirements• deliverables deliverables • customer-supplied itemscustomer-supplied items• approvals required by the customerapprovals required by the customer• type of contract type of contract

Preparing a Request for Proposal (3)Preparing a Request for Proposal (3)

• Payment termsPayment terms• Required schedule for completionRequired schedule for completion • Instructions for the format and content of the Instructions for the format and content of the

contractor proposalscontractor proposals• Due date for proposalsDue date for proposals• Evaluation criteria Evaluation criteria • Occasionally will indicate the funds the Occasionally will indicate the funds the

customer has availablecustomer has available

Soliciting ProposalsSoliciting Proposals

Methods:Methods:

Identify a selected group of contractors in Identify a selected group of contractors in advance and sending each an RFPadvance and sending each an RFP

Advertise in certain business newspapersAdvertise in certain business newspapers

Process considered a competitive situationProcess considered a competitive situation

Soliciting Proposals (Cont.)Soliciting Proposals (Cont.)

Don’t provide information that is not Don’t provide information that is not provided to all contractorsprovided to all contractors

May hold a bidders’ meeting to explain the May hold a bidders’ meeting to explain the RFP and answer questionsRFP and answer questions

Not all use RFPNot all use RFP

Documents

Project Management Summary Lecture 1 Summary Lecture 1 Summary Chapter 1 Summary Chapter 1 Summary Chapter 2 Summary Chapter 2