Topic Project 2 Management Growth - Open University … · 2016-10-27 · TOPIC 2 PROJECT...

INTRODUCTION

If you are a baby boomer, you may not have heard the word project or project management in your teens or college days. Nowadays, project management is widely mentioned in the newspapers, magazines, TV, radio and so on. Further more, there are higher education institutions in Malaysia that offer degree programmes in project management at bachelors, master and doctorate levels. In this topic, we are going to find out when project management really began and its growth.

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ProjectManagement Growth

By the end of this topic, you should be able to:

1. Describe the project and its related tools and techniques history;

2. Differentiate between product and project management;

3. Describe Project Management Maturity Model (PMMM);

4. Explain the project life cycle;

5. Describe project management methodologies; and

6. Explain systems thinking in project management.

LEARNING OUTCOMES

Copyright © Open University Malaysia (OUM)

TOPIC 2 PROJECT MANAGEMENT GROWTH 17

PROJECT MANAGEMENT TIMELINE The modern project management period began in the 1940s. In the past, projects were accomplished on an ad-hoc basis using informal tools and techniques. Let us review the history of projects or related tools and techniques from the past to the present. 2570 BC: The Great Pyramid of Giza Completed The pyramids were built by the Pharaohs. Till today, archaeologists still debate about how they built these pyramids. Known records indicate that there were managers responsible for each of the four faces of the Great Pyramid. These managers were responsible for the managing the project with some degree of planning, execution and control involved. 208 BC: Construction of the Great Wall of China The Great Wall of China construction had been a large project in the Qin Dynasty (221 BC-206 BC). Three groups of labour forces were organised, which are soldiers, common people and criminals. Historical records show that the Emperor Qin Shi Huang ordered millions of people to complete this project. 1917: The Gantt chart Developed by Henry Gantt (1861-1919) Henry Gantt is the creator and founder of the Gantt chart diagram that was an innovation of worldwide importance in the 1920s. The Hoover Dam project was the first project to use the Gantt chart in 1931. Later, the Manhattan Project (atomic bomb project) also utilised Gantt chart in 1941. Do you know that the Gantt chart is still in use today and as part of a project managerÊs toolkit? 1957: The Critical Path Method (CPM) invented by the DuPont Corporation CPM, developed by DuPont, is a technique widely used to determine project duration by analysing which order of activities has the smallest amount of scheduling and flexibility. DuPont saved USD$1 million in the first year of implementation of CPM technique in their process of plant maintenance work.

2.1

ACTIVITY 2.1

Find out how many higher education institutions in Malaysia offersdegree programmes in Project Management.


TOPIC2 PROJECT MANAGEMENT GROWTH

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1958: The Program Evaluation Review Technique (PERT) invented for the U.S. Navy's Polaris Project The PERT was developed as part of the mobile submarine-launched ballistic missile project by the US Department of DefenceÊs US Navy Special Projects Office. PERT is a tool that provides a graphical representation of a project's timeline. 1962: United States Department of Defence Mandate the Work Breakdown Structure (WBS) Approach In 1962, Work Breakdown Structure (WBS) concept was mandated by the United States Department of Defence (DOD) for its projects and later it was adopted by the private sectors. 1969: Project Management Institute (PMI) launched to promote the Project Management Profession In 1969, the PMI was founded by five volunteers as a non-profit professional organisation to promote the project management profession. 1980s: Computers and Project Management Advancement in computers in the 1980s further enhanced connectivity and communication in project management. The famous project management software such as Microsoft Project and Primavera were developed in this era. 1987: A Guide to the Project Management Body of Knowledge (PMBOK Guide) Published by the Project Management Institute (PMI) In 1987, the PMI published PMBOK Guide as a white paper to document and standardise accepted project management information and practices. In 1996, the first edition was published, followed by a second in 2000, a third in 2004, a fourth in 2008 and a fifth in 2012. This guide has become the global standard for the project management industry. 1998: PMBOK Becomes a Standard The PMBOK has been recognised as a standard by the American National Standards Institute (ANSI) in 1998. In the very same year, the Institute of Electrical and Electronics Engineers (IEEE) was also recognised as a standard. 2012: ISO 21500:2012 Standard for Project Management Released In 2012, The International Organisation for Standardisation published "ISO 21500:2012, Guidance on Project Management‰. It was designed for use by any organisation, which is public, private or community groups, and for any project, irrespective of size, complexity and duration.



What's Next? With the latest development and globalisation, a lot of attention is given to increased speed-to-market for products and services. It has become increasingly difficult to manage projects which are large in size and complex. Globalisation has made a project team to be diverse and one that is spread across the world. Nowadays, work has been pushed to low-cost countries due to various economic and business reasons, which itself presents a number of issues. The world is changing, and project management needs to change with it.

PRODUCT VS PROJECT MANAGEMENT

Though they sound similar, product and project management are both complementary to one another but uniquely distinct. Let us define what a project and a product to are.; A Project is defined as a temporary effort taken to create a unique product or service. Required needs or wants to be delivered at a specific date and to whom is to be delivered is clearly stated or specified. A Product is defined as something that can be offered to the public to satisfy specific needs or wants or to solve a specific problem. A product has a life cycle with multiples stages that was conceived, developed, produced, sold and managed in the market and finally retired when the need for it diminishes. It is well known that a product is developed within the context of a project, and multiple projects can happen within a life cycle of a product. In short, a product is what is being produced by the work in the project. A product has no clear definition of what has to be delivered. The wants or needs evolve over time and the product too has to be evolved with no clear deadline. Consumers of the product are only interested to meet their immediate needs and not at some point of the future. So, the product development can be defined as not a temporary effort but a continuous process of satisfying customersÊ needs by improving the product over time.

2.2

ACTIVITY2.2

Briefly list down the components in the Project Management Body ofKnowledge (PMBOK Guide).



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Figure 2.1 lists the key deliverables between project and product management.

Figure 2.1: The key deliverables of project and product management

PROJECT MANAGEMENT MATURITY MODEL (PMMM)

The Project Management Maturity Model (PMMM) is a basic step undertaken by an organisation to achieve excellence in project management. The benefits of adopting PMMM are:

(a) Increased efficiency;

(b) Increased performance; and

(c) Increased customer satisfaction. The organisationÊs performance in various project management knowledge areas is evaluated to assess the PM maturity.

Kerzner, H. (2001) proposed a Project Management Maturity Model (PMMM) shown in Figure 2.2.

2.3



Figure 2.2: Project Management Maturity Model (PMMM) Source: Adapted from Kerzner, H. (2009)

The level details are depicted in Table 2.1 below:

Table 2.1: KerznerÊs Five Level Project Maturity Model

Level Description Steps to be taken to Attain Higher Level of Maturity

1 Common Language

The organization recognizes the importance and the need for a good understanding of the basic knowledge, language and terminology on project management

Provide training in project management and hire certified project management terminology in projects.

Support the use of project management terminology in projects.

Encourage the use of various project management tools templates, checklist, and forms.



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2 Common Process

Common processes need to be defined and developed so that project success can be repeated

Develop a support for project management throughout the organization.

Recognize the long term benefits of project management.

Choose one of the project management methodologies and then ensure the defined process is replicated in all projects.

3 Singular

Methodology

The organization recognizes the synergistic benefit of combining all methodologies into a single methodology, the center of which is project management that makes process control easier

Integrate all processes into a universally accepted project management methodology.

Develop a sense of shared responsibility for the principles of project management.

4 Benchmarking

Process improvement is necessary to maintain a competitive advantage

Create a culture of benchmarking within the organization.

Set up a project management benchmarking process as utilized in Six Sigma projects.

Understand the benefits of benchmarking

5 Continuous

Improvement

Evaluate the information obtained through benchmarking and decide if this information will enhance the methodology.

Creation of lessons learned after each project and application of lessons learned from previous projects into subsequent projects.

Source: Adapted from Kerzner, H.(2005)



PROJECT LIFE CYCLE

As we have seen earlier, a project takes place within a definite time frame. Figure 2.3 shows various stages of the project life cycle (defining, planning, executing and closure) with management tasks and the corresponding level of effort required to perform these tasks.

2.4

SELF-CHECK 2.1

1. Briefly state the history of Project Management from the 1940s to the present.

2. Discuss the meaning of project and product management.

3. Lists the key deliverables between project and product management.

4. Discuss the benefits of adopting the PMMM.

ACTIVITY 2.3

In a group, discuss which stage of the project life cycle can the projectmanagement team adopt and apply the „bechmarking‰ tool in theirprojects?



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Figure 2.3: Stages of the project life cycle

Source: Gray and Larson (2008)

The project life cycle is very crucial when managing projects as it generates urgency, focussed on manpower especially on what needs to be done and when it needs to be done and facilitates a timeframe for attaining the specified key deliverable. According to Hamel and Prahalad (1994), these approaches are key to productivity improvement for competitive advantage, which is by introducing products or services to market earlier than competitors. Alternatively, the Project Management Institute (PMI) developed a five phased of project management life cycle, which includes initiating, planning, executing, controlling and closing process. Figure 2.4 shows these five stages with management tasks and the corresponding level of effort required to perform these tasks. The difference between traditional project life cycle and PMIÊs project management life cycle is the inclusion of control phase.



Figure 2.4: PMIÊs Project management life cycle

Source: Adapted from PMI (2013)

Table 2.2 elaborates the project management life cycle phases in detail.

Table 2.2: Project Management Life Cycle Phase

Initiation During the first of these phase, the initiation phase, the project objective or need is identified; this can be a business problem or opportunity. An appropriate response to the need is documented in a business case with recommended solution options. A feasibility study is conducted to investigate whether each option addresses the project objective and a final recommended solution is determined. Issues of feasibility ("can we do the project?") and justification ("should we do the project?") are addressed.

Once the recommended solution is approved, a project is initiated to deliver the approved solution and a project manager is appointed. The major deliverables and the participating work groups are identified, and the project team begins to take shape. Approval is then sought by the project manager to move onto the detailed planning phase.



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Planning

The next phase, the planning phase, is where the project solution is further developed in as much detail as possible and the steps necessary to meet the project's objective are planned. In this step, the team identified, along with the strategy for producing them. This is also referred to as "scope management". A project plan is created outlining the activities, task, dependencies, and timeframes. The project manager coordinates the preparation of a project budget by providing cost estimates for the labor, equipment, and materials costs. The budget is used to monitor and control cost expenditures during project implementation.

Once the project team has identified the work, prepared the schedule, and estimated the costs, the three fundamental components of the planning process are complete. This is an excellent time to identify and try to deal with anything that might pose a threat to the successful completion of the project. This is called risk management. In risk management, " high-threat" potential problems are identified along with the action that is to be taken on each high-threat potential problem, either to reduce the probability that the problem will occur or to reduce the impact on the project if it does occur. This is also a good time to identify all project stakeholders and establish a communication plan describing the information needed and the delivery method tone used to keep the stakeholders informed.

Finally, you will want to document a quality plan, providing quality targets, assurance, and control measures, along with an acceptance plan, listing the criteria to be met to gain customer acceptance. At this points, the project would have been planned in detail and is ready to be executed.

Execution control

During the third phase, the implementation phase, the project plan is put into motion and the work of the project is performed. It is important to maintain control and communicate as needed during implementation. Progress is continuously monitored and appropriate adjustments are made and recorded as variances from the original plan. In any project, a project manager spends most of the time in this step. During project implementation, people are carrying out the task, and progress information is being reported through rehilarious team meetings. The project manager uses this information to maintain control over the direction of the project by comparing the progress reports with the project plan to measure the performance of the project activities and take corrective action as needed. The first course of action should always be to bring the project back on course (I. e., to return it to the original plan). If that cannot happen, the team should record variations from the original plan and record and publish modifications to the plan. Throught this step, Project sponsors and other key stakeholders should be kept



informed of the project's status according to the agreed-on frequency and format of communication. The plan should be updated and published on a regular basis.

Status reports should always emphasize the anticipated end point in terms of cost, schedule, and quality of deliverables. Each project deliverable produces should be reviewed for quality and measured againstthe acceptance criteria. Once all of the deliverables have been produced and the customer has accepted the final solution, the project is ready for closure.

Closing During the final closure, or completion phase, the emphasis is on releasing the final deliverables to the customer, handing over project documentation to the business, terminating supplier contracts, releasing project resources, and communicating the closure of the project to all stakeholders. The last remaining step is to conduct lessons-learned studies to examine what went well and what didnÊt. Through this type of analysis, the wisdom of experience is transferred back to the project organization, which will help future project teams.

Source: Adapted from Watt, A. (n.d.). Another thing to note is that if there is difference between project life cycle and product life cycle. The terms product life cycle and project life cycle are often confused. Table 2.3 shows the difference between the two.

Table 2.3: Difference between Product Life Cycle and Project Life Cycle

Product Life Cycle Project Life Cycle

A product life cycle begins with a business plan and moves to concept development, product development, ongoing operations and product investment.

A project life cycle is a series of phases that are completed to create a product. Each phase has defined tasks to be accomplished. Each team is responsible for the completion of each phase.

In other words, there can be many projects in product. For example, iPhone 6 is a product that consists of four projects, which are iPhone 6, iPhone 6 Plus, iPhone 6s and iPhone 6s Plus.



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2.5 PROJECT MANAGEMENT METHODOLOGIES

Project managers employ project management methodologies to achieve their objectives. There are a number of methodologies used to benefit different projects. For example, the National Aeronautics and Space Administration (NASA) uses space methodology to construct a space based station whereas the US Airforce may use another methodology to build fighter jets. So, different project management methodologies were used to cater for the needs of different projects spanned across different business fields. In the 90s, Project Management (PM), Total Quality Management (TQM), Concurrent Engineering (CE), Change Management (CM) and Risk Management (RM) were integrated into a single methodology as shown in Figure 2.5.

Figure 2.5: Integrated processes for the twenty-first century Source: Adapted from Kerzner, H. (2009)

It is expected that companies will integrate more of their business processes in the project management methodology in the coming years as shown in Figure 2.6.



Figure 2.6: Integrated processes (past, present and future)

Source: Adapted from Kerzner, H.(2009) The most frequently used project management methodologies are shown in Table 2.4.

Table 2.4: Project Management Methodologies

Project Management Methodologies

Description

Agile It was developed for projects requiring significant flexibility and speed and is comprised of „sprints‰ short delivery cycles. Agile may be best-suited for projects requiring less control and real-time communication within self-motivated team settings. Agile is highly iterative, allowing for rapid adjustments throughout a project.

Waterfall Is sequential in nature, itÊs used across many industries and most commonly in software development. ItÊs comprised of static phases (requirement analysis, design, testing, implementation and maintenance), executed in a specific order. Waterfall allows for increased control throughout each phase but can be highly inflexible if scope changes may be anticipated later.

Critical Path Method (CPM)

Is a step-by-step methodology used for projects with interdependent activities. It contains a list of activities and uses a work-break-down structure (WBS), a timeline to complete any dependencies, milestones and deliverables. It outlines critical and non-critical activities by calculating the „longest‰ (on the critical path) and „shortest‰ (float) time to complete tasks to determine which activities are critical and which are not.



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Critical Chain Project Management (CCPM)

It differs from Critical Path Method (CPM) in that it focuses on the use of resources within a project instead of project activities. To address potential issues with resources, buffers are built in to ensure projects are on-time and that safety is not compromised.

Six Sigma It was originally developed by Motorola to eliminate waste and improve processes and profits. It is data-driven and has three key components: DMAIC (define, measure, analyse, improve and control) DMADV (define, measure, analyse, design and verify) and DFSS (which stands for „Design for Six Sigma‰)

Scrum Named after rugby, is a part of the agile framework and is also iterative in nature. „Scrum sessions‰ or „30-day sprints‰ are used to determine prioritised tasks. A scrum master is used to facilitate instead of being a project manager. Small teams may be assembled to focus on specific tasks independently and then meet with the scrum master to evaluate progress or results and reprioritise backlogged tasks.

PRINCE2 A methodology and a de facto standard used extensively by the UK Government and is widely recognised and used in the private sector, both in the UK and internationally.

The PMI/PMBOK While it may be debatable whether this is a true project management methodology, you will find organisations that say they use the PMI or PMBOK method for managing projects.

Source: Adapted from Alexander (2015)

1. Briefly discuss the phases of a project life cycle.

2. Discuss the integrated processes for the 21st Century in project management.

SELF-CHECK 2.2



SYSTEM THINKING IN PROJECT MANAGEMENT

Project management is involved with complex problems and it is necessary to have systems thinking to manage them. The project management methodologies such as PMBOK, Six Sigma, Lean and PRINCE2 have a strong impact in systems thinking. Using these methodologies, the project manager is able to create solutions for the long-term by eliminating recurring problems and minimising surprising events. System thinking can bring about the following benefits:

(a) Inspire innovation by encouraging questions and revealing new options that are not seen when things are looked at independently;

(b) Identify and manage risks;

(c) Improved communication and reduced business silos;

(d) Higher awareness of greater business objectives;

(e) Lead to products, services and results that are well-designed;

(f) Allow faster response to rapid changes; and

(g) Improved leadership skills.

2.6

1. Discuss any TWO project management methodologies.

2. What are systems thinking in project management?

SELF-CHECK 2.3



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• In the past, projects were accomplished on an ad-hoc basis using informal

tools and techniques.

A project is defined as a temporary effort taken to create a unique product or service.

A product is defined as something that can be offered to the public to satisfy specific needs or wants or to solve a specific problem.

The Project Management Maturity Model (PMMM) is a basic step undertaken by an organisation to achieve excellence in project management.

The project life cycle is very crucial when managing projects as it generates urgency, focussed on manpower especially what needs to be done and when to be done and facilitates a timeframe for attaining the specified key deliverables.

Project managers do employ a project management methodology to achieve its objectives. There are a number of methodologies to benefit different projects.

Project management is involved with complex problems and is necessary to have systems thinking to manage them.

Agile

Change Management

CPM

Gantt Chart

PERT

Phases

PMMM

Project Life Cycle

Risk Management

Scrum

Six Sigma

TQM



Alexander, M. (2015). How to pick a project management methodology.

Retrieved from http://www.cio.com/article/2950579/project-manager/how-to-pick-a-project-management-methodology.html

Gray, C.F., & Larson, E. (2008). Project Management: The Managerial Process.

Boston, MA: McGraw-Hill. Hamel, G., & Prahalad, C.K. (1994). Competing for the Future. Boston, MA:

Harvard Business School. Kerzner, H. (2001). Strategic Planning for Project Management using a project

management Maturity Model. New York, NY: John Wiley & Sons. Kerzner, H.(2005). Using the project management maturity model: strategic

planning for project management. London, England: John Wiley & Sons. Kerzner, H.(2009). Project Management: A system approach to planning,

scheduling and controlling. New Jersey: NJ: Wiley. Project Management Institute. (2013). A Guide to the Project Management Body

of Knowledge: PMBOK Guide (5th. Ed.). Newtown Square, PA: Project Management Institute.

Watt, A. (n.d.). Project Management. Retrieved from

https://opentextbc.ca/projectmanagement/chapter/chapter-3-the-project-life-cycle-phases-project-management/


Topic Project 2 Management Growth - Open University … · 2016-10-27 · TOPIC 2 PROJECT...

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