Project Management & Control. What is a Project ? A project is a sequence of unique, complex and...
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Transcript of Project Management & Control. What is a Project ? A project is a sequence of unique, complex and...
May 20th, 2008 1
Project Management& Control
May 20th, 2008 2
What is a Project ?
A project is a sequence of unique, complex
and connected activities having one goal or
purpose and that must be completed by a
specific time, within budget, and according to
specifications.
“Projects are the Building Blocks of an
Investment Plan”
May 20th, 2008 3
Attributes/Characteristics
• Complex Activities
Not simple, repetitive acts, such as mowing the
lawn, running the weekly payroll, washing the
car, or loading the delivery truck
May 20th, 2008 4
Attributes/Characteristics
• Connected Activities
• There is some order to the sequence in which the activities that make up the project must be completed. Connected-ness follows from the fact that the output from one activity is input to another.
May 20th, 2008 5
Project Attributes (Contd)
• One Goal
– Projects must have a single goal as compared
to a program
• Specified Time
– Projects have a specified completion date
• Within Budget
– Projects also have resource limits (people,
money, machines)
May 20th, 2008 6
What is a Project • According to Specification
– The customer or recipient of the
deliverables from the project expects a
certain level of functionality and quality
from the project. These may be self-
imposed or customer-specified, and are
fixed as far as the project manager is
concerned.
May 20th, 2008 7
What is a Program???
A program is different from a
project. Programs are larger in
scope and comprise multiple
projects.
May 20th, 2008 8
What is a Project (Contd)
• The Scope Triangle: Time, Cost,
Resources
TimeCost
Resources
Scope and
Quality
May 20th, 2008 9
Classification of Project Types
Projects can be classified as social sector and
infrastructure. Some examples are:
Transportation: Highways, mass transit, airports
Utilities: Electric power, gas, telephones
Education: Schools, colleges, dormitories
Public Safety: Police, fire, National guard
Recreation: Parks, playgrounds, historic sites
May 20th, 2008 10
Classification of Project Types
Development Harbors, dams, irrigation,
Research Health, space, agriculture
Defense Military equipment and
systems
Conservation Forests, shorelines, pollution
May 20th, 2008 11
Project Management
Project Management is an organized venture for
managing projects. It involves scientific application of
modern tools and techniques in planning, financing,
implementing, monitoring, controlling and
coordinating unique activities or tasks to produce
desirable outputs in consonance with pre-determined
objectives, within the constraints of time, cost, quality.
May 20th, 2008 12
Projects in Contemporary Orgs
• Project Mgt Provides organizations with
powerful tools that improve its ability to
plan, implement and control its activities
as well as the ways in which it utilizes
its people and resources.
May 20th, 2008 13
Projects in Contemporary Orgs
• The society demands new methods of management because:
– expansion of knowledge
– Growing demand for complex, sophisticated, customized goods and services
– Creation of worldwide competitive markets for production and consumption of goods and services
• The problems thus have to be solved by the teams rather than the individuals
May 20th, 2008 14
Program, Task, Work package
• Program:
Refers to a an exceptionally large, long range
objective that is broken down into a set of projects.
• Projects are further divided into tasks
• Tasks are split into work packages
• Work packages are composed of work units
May 20th, 2008 15
Modern Tools - Technique
• PERT (Program Evaluation & Review Tech)
• Linear Responsibility Charts
• Gantt Charts
• Milestone Charts
• Work Breakdown Structures
• Project Action Plans
• Computers
May 20th, 2008 16
Project Life Cycle• Conception/selection
• Planning
• Implementation
• Control
• Evaluation
• Termination
– What is the difference between a project and a
process??
May 20th, 2008 17
What is Project Planning ?• It is complete road map to go from point A to B.
• Project planning is a determination of how
to initiate, sustain, and terminate a project
• Project planning starts with the development of a
vision - the ability to see something that is
invisible to others
May 20th, 2008 18
Why Plan a Project ?
• To eliminate or reduce uncertainty.
• To improve efficiency of the operation.
• To obtain a better understanding of the
objectives.
• To provide basis for monitoring and
controlling work.
May 20th, 2008 19
Project Management Processes
Planning provides documented executing and the updates as the project progresses
Initiating Processes
Planning Processes
Controlling Processes
Executing Processes
Closing Processes
May 20th, 2008 20
Project Planning Considerations
• Too often people perceive project
planning as only techniques or concepts
such as PERT, GANTT charts etc.
However, project planning is much wider
activity with following key considerations.
May 20th, 2008 21
Project Planning Considerations
– Cost estimating and budgeting.
– Technology strategies scheduling.
– Specification of deliverables.
– Resource usage estimating.
– Delineation of organizational structure.
May 20th, 2008 22
Project Planning Considerations
• People in general find that it is more comfortable to do than to plan
• Not too surprisingly, the inclination of most PMs to skip the strategic phase of project management (planning) and to start the project.
May 20th, 2008 23
The Vision
• Project planning also starts with a vision. The most important factor for high performance is a clear and elevating vision.
• When the vision statement is believed and frequently talked about by people, it takes on a life of its own and becomes important to everyone.
May 20th, 2008 24
Control and Evaluation
• Control entails continual monitoring of project
progress, while evaluation involves periodic stock-
taking.
May 20th, 2008 25
Control and Evaluation
• Control focuses on the details of what is occurring in
the project, whereas evaluation is more concerned
with the big picture
Control activities are the responsibility of the project
manager, while evaluations are typically carried out
by an individual or group not directly working on the
project (so as to maintain objectivity)
May 20th, 2008 26
Project Manager
• Project Manager is responsible for the project from
cradle to grave.
• This person will take responsibility for planning,
implementing, and completing the project.
• The PM can be chosen and installed as soon as the project
is selected for funding or at any earlier point .
• PM is chosen late in the project life cycle, usually to
replace another PM.
May 20th, 2008 27
Functional Manager Vs PM ????????
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May 20th, 2008 28
Project OrganizationFunctional Organization• Project is made a part of one of the
functional divisions of the firm.
• Major Advantages– Maximum flexibility in the use of staff.– Individual experts can be utilized by many
different projects.– Specialists in the division can be grouped to
share knowledge and experience.
May 20th, 2008 29
Functional Organization
– Occasionally in functionally organized projects, no individual is given full responsibility for the project.
– Response to client needs is slow and arduous
– Project issues that are directly within the interest area of the functional organization may be dealt with carefully but those outside normal interest areas may be given cold response if not totally ignored.
May 20th, 2008 30
Pure Project Organization
P rog ram M an ag er V .P . M arke tin g V .P . M an u fac tu rin g V .P . R & D
P resen d en t
MarketingManufacturingR&D FinancePersonnel
Manager, Project A
Manager, Project B
MarketingManufacturingR&D FinancePersonnel
May 20th, 2008 31
Pure Project Organization
– The lines of communication are shortened and PM
communicates directly with senior corporate
management.
– The project team that has a strong and separate identity
of its own tends to develop a high level of commitment
from its members.
– Because authority is centralized, the ability to make
swift decisions is greatly enhanced.
– Unity of command exists.
May 20th, 2008 32
Project Organization
– Pure project organizations are structurally simple
and flexible which makes them relatively easy to
understand and to implement.
– Disadvantages• When the parent organization takes on several
projects, it is common for each one to be fully staffed. This can lead to considerable duplication of effort.
• PM may stockpile equipment and technical assistance in order to be certain that it will be available when needed.
May 20th, 2008 33
– In pure project organizations, the
project takes on a life of its own. Team
members form strong attachments to
the project and to each other.
May 20th, 2008 34
The Matrix Organization
Advantages of the pure project organization with
some of the desirable features of the functional
organization, and to avoid some of the
disadvantages of each, the matrix organization
was developed.
May 20th, 2008 35
Matrix Organization
Progra m m a na ger Ma nufa cturing Ma rketing Fina nce R & D Personnel
President
PM1 3 1 2 4 2
PM2 1 4 4 2 4
PM3 3 2 3 2 1
May 20th, 2008 36
Matrix Organization• Advantages
– The project is the point of emphasis. PM takes
responsibility for managing the project, for bringing it in
time, within cost, and to specifications
– There is less anxiety about what happens when the project
is completed
– Response to client needs is as rapid as in the pure project
case.
May 20th, 2008 37
Matrix Organization (Contd)
– If several projects simultaneously under way, matrix
organization allows a better company wide balance of
resources to achieve the several different
time/cost/performance targets of the individual
projects.
• Disadvantages
– The movement of resources from project to project in
order to satisfy the several schedules may foster
political infighting among the several P.Ms.
May 20th, 2008 38
Causes of Project Failure• Projects that have failed generally display several of the following
characteristics:
– The customer’s conditions of satisfaction have not been negotiated.
– The project no longer has a high priority.
– No one seems to be in charge.
– The schedule is too optimistic
– The project plan is not used to manage the project.
– Sufficient resources have not been committed.
– Project status is not monitored against the plan.
May 20th, 2008 39
Causes of Failure
• No formal communications plan is in place.
• The project has lost sight of its original goals.
• There is no change management process in place.
• Foreign aided projects: bureaucracy of the Government.