SBI 202 – Project ManagementPrelim Portion – Ch 1 & 2Project Management , 2nd Edition (2010)By: Jeffery K. Pinto

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IntroductionChapter 1 - Why Project Management?

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What is a PROJECT

• A project is a “Unique Venture”, with a “Beginning and End”, “Conducted by People”, to meet “Established Goals”, with parameters of “Cost, Schedule, and Quality”.

• Project can also be defined as:• Specific Objective to be completed with certain specification• Have defined start and end dates• Have funding limits• Consume human and non human resource (money, people, equipment's)• Are multifunctional (across various departments)

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General Project Characteristics

• Projects are complex, one time process• Projects are developed to resolve a clear goal or set of goals• Project are ad hoc endeavor's with a clear life cycle• Projects are building blocks in design and execution of organizational

strategies• Projects are responsible for improving products, services and

organizational process• Projects provide strategy for the management of change

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General Project Characteristics

• Project management entails cross functional and organizational boundaries

• Management function like planning, organizing, motivation, directing and control applies to project management

• Principal outcomes of a project are satisfaction of customer requirements within the constrains of technical, cost and schedule objective

• Projects are terminated upon successful completion of performance objectives

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Process Management & Project Management

Process• Repeat process or products• Several objective's• Ongoing• People are homogenous• Well established system in

place• Greater certainty of cost,

performance & schedule• Part of line organization• Based on established

practices

Projects• New process or product• One objective• One shot – limited life• People are heterogeneous• System to be created to

integrate efforts• Greater uncertainty of cost,

performance & schedule• Outside line of organization• Violates established practices

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Importance of Project

• Shortened product life cycle• Narrow product launch windows• Increasingly complex and technical products• Emergence of global market

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Project Life Cycle

• Defining Stage• Planning Stage• Executing Stage• Delivering Stage

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Project Life Cycle & Man-hours spend

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Defining Stage

• Also know as Conceptualization• Initial goals and technical specification for a project along with the

needed resources are identified and the stake holders and the clients agree on it

• Activities involved in this stage are• Goals• Specifications• Tasks• Responsibilities

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Planning Stage

• Specification are given in detail along with the specification, schematics and schedule are given and laid out

• Work packages are created here, which is nothing but individual pieces of the project

• Activities involved in this stage are• Schedules• Budgets• Resources• Risks• Staffing

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Executing Stage

• The actual work of the project is carried out here• Maximum number of resources and man hours are required in this

stage of a project• Activities involved in this stage are• Status Reports• Changes• Quality• Forecasts

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Delivery Stage

• Also known as Termination• Occurs when the project is ready to be completed or has been

completed and is ready for transfer to the customer• Activities involved in this stage are• Train Customer• Transfer Documents• Release Resources• Release Staff• Lessons Learned

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Project Life Cycle & Effects

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Factors of Project Success

• Time• Cost• Performance

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Quadruple Constraint for Project Success

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Four Dimension of Project Success Importance

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Four Dimension of Project Success Importance

• Project Efficiency• Meeting budget and schedule expectation

• Impact on Customer• Meeting technical specification, addressing customer need and creating

a project that satisfies the client need• Business Success• Project has achieved significant commercial success

• Future Potential• The project has opened new market or new product line o had helped to

develop new technology for future use

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Project Management Maturity – A Generic Model

H i g h M a t u r i t yI n s ti t u ti o n a l i z e d , s e e k s c o n ti n u o u s

i m p r o v e m e n t s

M o d e r a t e M a t u r i t yD e fi n e d p r a c ti c e s , t r a i n i n g p r o g r a m s ,

o r g a n i z a ti o n a l s u p p o r t s

L o w M a t u r i t yA d h o c p r o c e s s , n o c o m m o n

l a n g u a g e , l i tt l e s u p p o r t 19

The Organizational ContextChapter 2 - Strategy, Structure, and Culture

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Projects & Organizational Strategy

• Developing VISION statement and MISSION statement• Formulating, implementing, and evaluating• Making cross functional decisions• Achieving objectives

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Characteristics of Objectives

• S Specific - Smart• M Measurable• A Attainable• R Realistic• T Time Related

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Relationship of Strategic Elements

Mission

Objectives

23Strategy Goals Programs

Stakeholder Management

• Project Stakeholders• Are all the individuals or groups who have an active stake in the project

and can potentially impact, either positively or negatively in the development.

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Identify Project Stakeholder

1. Internal• Top Management• Accountant• Other Functional Managers• Project Team Members

2. External• Clients• Competitors• Suppliers• Environmental, Political, Consumers and other intervenor group

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Managing Stakeholders

• Assess the environment• Identify the goals of the principal actors• Asses company and individual capability• Define the problem• Develop the solution• Test and refine the solution

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Organizational Structure

• Organizational structure designates formal reporting relationship including the level in the organization and the span of control for the manager and supervisor

• Organizational structure identifies the grouping together of individual into departments and departments into total organization

• Organizational structure includes the design of system to ensure effective communication, coordination, and integration of effort across department.

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Forms of Organizational Structure

• 3 types of organizational structure• Functional Organizations• Project Organizations• Matrix Organizations

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Functional Organizational

Strength• Developed within the basic

functional structure of the organization, no disruption or change to the design

• Development of in-depth knowledge and intellectual capital

• Standard career path and team members perform their duties while maintaining maximum connection with the group

Weakness• Makes it difficult to achieve

cross-functional cooperation• Lack of customer focus• Takes longer duration to

complete due to structural problem, slow communication, lack of ownership in project and for completion of activities

• Projects may be sub optimized due to varying interest or commitment

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Project Organization

Strength• Assign authority solely to the

project manager• Lead to improved

communication across the organization and among functional group

• Promotes effective and speedy decision making

• Promotes the creation of cadres of project management experts

• Encourages rapid response to market opportunities

Weakness• Setting and maintenance of

team is expensive• Potential for project team to

develop loyalty to the project rather than the overall organization

• Difficult to maintain a pooled supply of intellectual capital

• Concern about the project team members about the future once the project ends

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Matrix Organization

Strength• Suited for dynamic

environments• Emphasizes the dual

importance of project management and functional efficiency

• Promotes coordination across functional units

• Maximizes, scare resource between competing projects and functional responsibilities

Weakness• Dual hierarchies mean two

bosses• Requires significant time to be

spent negotiating the sharing of critical resources between projects and departments

• Can be frustrating for workers caught between competing projects and functional demands

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Project Management Office

• PMO is defined as a centralized unit within an organization or department that oversees or improves the management of projects• Weather Station• Control Tower• Resource Pool

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Organizational Culture

• Unwritten• Rules of behavior• Held by some subset of the organization• Taught to all new members

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How are Culture Formed

• Technology• Environment• Geographical Location• Reward System• Rules and Procedures• Key Organizational Member• Critical Incidents

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Organizational Culture and Project Management

• Departmental Interaction• Employee Commitment to Goal• Project Planning• Performance Evaluation

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