THE MANAGERIAL PROCESSTHE MANAGERIAL PROCESS

Project ManagementProject Management

Haeryip Sihombing & Nor AkraminUniversiti Teknikal Malaysia Melaka (UTeM)

1BMFP 4542

An Overview of Project Management .An Overview of Project Management .An Overview of Project Management .An Overview of Project Management .

What is a Project?What is a Project?What is a Project?What is a Project?

A project is an interrelated set of activities A project is an interrelated set of activities with a definite starting and ending point, with a definite starting and ending point, which result in a unique outcome for a which result in a unique outcome for a specific allocation of resources.specific allocation of resources.

• Project Defined:Project Defined:

A complex, non-routine, one-time effort limited by A complex, non-routine, one-time effort limited by time, budget, resources, and performance time, budget, resources, and performance specifications designed to meet customer needsspecifications designed to meet customer needs.

What is a Project?What is a Project?What is a Project?What is a Project?

• Major Characteristics of a ProjectMajor Characteristics of a Project–Has an established objective.Has an established objective.–Has a defined life span with a beginning and an Has a defined life span with a beginning and an

end.end.–Requires across-the-organizational participation.Requires across-the-organizational participation.–Involves doing something never been done before.Involves doing something never been done before.–Has specific time, cost, and performance Has specific time, cost, and performance

requirements.requirements.

What is a Project?What is a Project?What is a Project?What is a Project?

• Three main goals of any project:Three main goals of any project:–Complete the project on time or earlier.Complete the project on time or earlier.–Do not exceed the budget.Do not exceed the budget.–Meet the specification to the satisfaction Meet the specification to the satisfaction of the customer.of the customer.

Needs the skills of multiple professions and organizationsRequiring new combination of skills and resource in the

project processDifferences will arise with each replication, especially due

to uncertainties. So can change the characteristic and countermeasures.

Programs versus ProjectsPrograms versus ProjectsPrograms versus ProjectsPrograms versus Projects

• Program DefinedProgram Defined–A series of coordinated, related, multiple projects A series of coordinated, related, multiple projects

that continue over an extended time and are that continue over an extended time and are intended to achieve a goal.intended to achieve a goal.

–A higher level group of projects targeted at a A higher level group of projects targeted at a common goal.common goal.

–Example:•Project: completion of a required course in project

management.•Program: completion of all courses required for a

business major.

Comparison of Routine Work with ProjectsComparison of Routine Work with ProjectsComparison of Routine Work with ProjectsComparison of Routine Work with Projects

Routine, Repetitive Work

Taking class notes

Daily entering sales receipts into the accounting ledger

Responding to a supply-chain request

Practicing scales on the piano

Routine manufacture of an Apple iPod

Attaching tags on a manufactured product

Projects

Writing a term paper

Setting up a sales kiosk for a professional accounting meeting

Developing a supply-chain information system

Writing a new piano piece

Designing an iPod that is approximately 2 X 4 inches, interfaces with PC, and stores 10,000 songs

Wire-tag projects for GE and Wal-Mart

Project ManagementProject ManagementProject ManagementProject Management

• Project managementProject management is a systemized, phased approach to defining, organizing, planning, monitoring, and controlling projects.

• A collection of projects is called a programprogram, which is an interdependent set of projects with a common strategic purpose.

• A cross-functional effortA cross-functional effort: Even though a project may be under the overall purview of a single department, other departments likely should be involved.

Project Management QuestionsProject Management QuestionsProject Management QuestionsProject Management Questions

•What activities are required to complete a project and in what sequence?

•When should each activity be scheduled to begin and end?

•Which activities are critical to completing the project on time?

•What is the probability of meeting the project completion due date?

•How should resources be allocated to activities?

The Nature of Project ManagementThe Nature of Project ManagementThe Nature of Project ManagementThe Nature of Project Management

•Characteristics of Projects: purpose, life cycle, interdependencies, uniqueness, and conflict.

•Project Management Process: planning (work breakdown structure), scheduling, and controlling.

•Selecting the Project Manager: credibility, sensitivity, ability to handle stress, and leadership.

•Building the Project Team: Forming, Storming, Norming, and Performing.

•Principles of Effective Project Management: direct people individually and as a team, reinforce excitement, keep everyone informed, manage healthy conflict, empower team, encourage risk taking and creativity.

•Project Metrics: Cost, Time, Performance

Project Life CycleProject Life CycleProject Life CycleProject Life Cycle

The Challenge of Project ManagementThe Challenge of Project ManagementThe Challenge of Project ManagementThe Challenge of Project Management

• The Project ManagerThe Project Manager–Manages temporary, non-repetitive activities and

frequently acts independently of the formal organization.

•Marshals resources for the project.•Is linked directly to the customer interface.•Provides direction, coordination, and integration to

the project team.•Is responsible for performance and success of the

project.

–Must induce the right people at the right time to address the right issues and make the right decisions.

Project TeamProject TeamProject TeamProject Team

• Selecting the right project manager is critical and specific skills are needed.Facilitator: Able to resolve conflicts, have leadership

skills and a systems view.Communicator: Ability to keep senior management

informed, communicate progress, and work with team members.

Decision Maker: Able to organize members and make difficult decisions.

• Team members need to be technically competent, dedicated, and able to work well with other team members.

The Importance of Project ManagementThe Importance of Project ManagementThe Importance of Project ManagementThe Importance of Project Management

–Compression of the product life cycle

–Global competition

–Knowledge explosion

–Corporate downsizing

– Increased customer focus

–Rapid development of Third World and closed economies

–Small projects that represent big problems

• Factors leading to the increased use of project Factors leading to the increased use of project management:management:

Integrated Project Management SystemsIntegrated Project Management SystemsIntegrated Project Management SystemsIntegrated Project Management Systems

• Problems resulting from the use of piecemeal Problems resulting from the use of piecemeal project management systems:project management systems:

–Do not tie together the overall strategies of the firm.

–Fail to prioritize selection of projects by their importance of their contribution to the firm.

–Are not integrated throughout the project life cycle.

–Do not match project planning and controls with organizational culture to make appropriate adjustments in support of project endeavors.

Integrated Integrated Management of Management of

ProjectsProjects

Integrated Integrated Management of Management of

ProjectsProjects

The Technical and The Technical and Sociocultural Sociocultural DimensionsDimensions

of the Project of the Project Management Management

ProcessProcess

The Technical and The Technical and Sociocultural Sociocultural DimensionsDimensions

of the Project of the Project Management Management

ProcessProcess

Organization Strategy and Project SelectionOrganization Strategy and Project SelectionOrganization Strategy and Project SelectionOrganization Strategy and Project Selection

Having a Nice Having a Nice BreakBreak

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