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Slide 1.2
Lecture Objectives
At the end of this lecture you should know:• the objectives of this part of the module and how it is organised
• the topics which will be covered
• where to find out more information
You should understand:• why PM is important to engineers
• the relationship of soft issues to PM
• the basic career roles for an engineer
Slide 1.3
Course Organisation
Eighteen lectures/demonstrations • Two 50-minute lectures with a 10-minute break
• Slides available in advance of each lecture at www.cs.tcd.ie/Simon.McGinnes
Handouts as required• Case studies, exercises, case material
Software used will be Microsoft Project (any recent version)
Slide 1.4
Texts
We will be closely following:• Lock, D (2003) Project Management (8th Ed.), Gower.
• (earlier editions ok - a shorter version is called “The Essentials of Project Management”)
There are also 200+ books on project management in the library
Slide 1.5
Module Objectives
To give you • a broad understanding of PM
• a good grounding in key techniques
• a solid foundation for further developing your skills in this area
Slide 1.6
Overview of Topics
Intro• Definitions, why projects fail, objectives of PM
Project organisation• Structures, roles, project definition, work breakdown, packages, responsibilities
Budgeting• Evaluation, appraisal, costing, estimating
Slide 1.7
Overview of Topics (cont.)
Planning & scheduling • Network analysis, critical path, PERT
Other topics• Risk management, contingency planning
• Consolidated plans, management, adjustment
• PM software, Microsoft project
• Purchasing, Admin
• Legal aspects, Contracts
Slide 1.8
The 7 Stages of a Project
1. Wild enthusiasm
2. Diminished expectations
3. Growing concern
4. Panic
5. Search for the guilty
6. Punishment of the innocent
7. Promotion of the uninvolved
Slide 1.10
BAE Defence Contracts (2003)
Nimrod (plane) project• Production delayed until performance of first three aircraft demonstrated
Astute (submarine) project• Effort needed to turn computer designs into reality greater than anticipated
Original budget £5bn
Overrun £750m
Slide 1.11
CIE (2000)
£15.7m signalling system project• Two years late
• Overrun estimated £44m
Consultants questioned role of four execs who handled contract and then moved to company carrying out the work
CIE attributed overrun to:• Change in Iarnrod Eireann safety requirements
• Upgrade in system specifications
Slide 1.12
Luas (2003)
Original plan (1996)• Budget: €279m
• Due 2001
Final cost estimated €800-1,000m
Delayed 4 years
Slide 1.14
Dublin Port TunnelEarly 1990s First proposed
Mar 1996 £130M (€165M) cost proposed to DCC
Dec 1999 Government agrees £204M (€260M)
Dec 2000 £353M (€448M) design contract
Jun 2001 Work starts
Jan 2003 Cost now €625M
Apr 2004 Cost ‘could rise’ to €780M
Nov 2006 Estimated completion €752M
Slide 1.16
Why Do Projects Fail?Unforeseen technical problems
• The Kildare snail, Metal fatigue
Over-optimistic forecasts• LUAS
Labour problems• Disputes, Illness
Planning objections• The M50
Changes of requirements• Moving goalposts, New requirements
Changes in cost base
Slide 1.17
Why Do Projects Fail? (cont.)Political interference
• Political ego trips, eco warriors, …
Regulatory problems• EPA/EU/conservation, etc.
Inadequate contracts• The N11
Changes of personnel• Loss of key staff, learning curves
Aggressive underbidding (“winner’s curse”)
Professional incompetence
…and so on and on
Slide 1.18
On-Time, Every Time?
Tiny 1 15% 83% 2% 0%
Small 10 11% 81% 6% 2%
Modest 102 6% 75% 12% 7%
Medium 103 1% 61% 18% 2%
Major 104 0% 28% 24% 48%
Large 105 0% 14% 21% 65%
Average 6% 57% 14% 24%
% of IT projects which are:
Source: Capers Jones
Size (Function Points) Early On-Time Delayed Cancelled
Slide 1.19
The 8 Laws of PM
1. No major project is ever installed on time, within budget or with the same staff that started it. Yours will not be the first.
2. Projects progress quickly until they become 90% complete, then remain at 90% complete for eternity.
3. One advantage of fuzzy project objectives is that they let you avoid the embarrassment of estimating the corresponding costs.
4. When things are going well, something will go wrong. When things cannot get worse, they will. When things appear to be going better, you have overlooked something.
The following are (only part in jest) from the American Production & Inventory Control Society:
Slide 1.20
The 8 Laws of PM (cont.)
5. If the project content is allowed to change freely, the rate of change will exceed the rate of progress.
6. No system is ever completely debugged. Attempts to debug a system produce new bugs that are even harder to find.
7. A carelessly planned project will take three times longer than expected. A carefully planned project will take only twice as long.
8. Project teams detest progress reporting because it all too vividly highlights their lack of progress.
Slide 1.21
And Never Forget
Murphy’s Law
O’Leary’s Corollary to Murphy’s Law
Fetridge’s Law of Frustration
Slide 1.23
Some Soft Issues
Management
Leadership
Politics
Communications
Interpersonal dynamics
Group dynamics
Personal psychology
Group psychology
Power
Organisation
Decision-making
Judgement
Risk
Relationships
Slide 1.24
Why Study Project Management?
Civil• Channel tunnel
• Luas
• Port Tunnel
• N11
Mechanical• Eurofighter (most military
projects!)
• GM X car
Electrical/Electronic• Iarnrod Eireann signalling
system
• IBM bubble memory project
Software• Irish League of Credit
Unions
• Health Services Executive
A catalogue of disasters and overruns:
Slide 1.25
Why Study PM?
A great deal of engineering is about projects (including the most interesting bits)
Top class project managers are rare and therefore they tend to be well paid
A sizeable number of you will end up in management
Slide 1.26
Dealing With the Intangible
“Managers are not confronted with problems that are independent of each other, but with dynamic situations that consist of changing problems that interact with each other. I call such situations messes. Managers do not solve problems: they manage messes.”
Russell Ackoff
Slide 1.28
Summary – Key Points
Much engineering takes the form of projects
Projects can go wrong – often spectacularly
All engineers need some knowledge of PM • Many need a reasonable knowledge of PM
• Some (including many of you) spend most of their working lives in PM