21/01/2014

A Project is a temporary endeavor undertaken to create a unique product, service, or result. within a specific period* Operations is work done to sustain the business. A project ends when its objectives have been reached, or the project has been terminated. *PMI, A Guide to the Project Management Body of Knowledge (PMBOK) Projects can be large or small and

 A project:
has a unique purpose. is temporary. has a team leader (project manager) has constraints (time, cost, scope & quality) is developed using progressive elaboration. requires resources, often from various areas. should have a primary customer or sponsor. the project sponsor usually provides the direction and funding for the project. involves uncertainty.

 Operations are ongoing execution of activities those produce the same result, product, or provide repetitive services. Operations are used to run regular business models. Operations are different as opposed to the Projects, which are known for its uniqueness. Operational works are performed to achieve business goal and to sustain the business. They are permanent in nature

Projects
Projects are unique and temporary

Operations
Operations are recurring activities and permanent with repetitive output

Projects are executed to start Operational work are a new business objective and performed to keep terminated when it is achieved organization functioning Projects have definitive beginning and ending Projects create a unique product, service, or results Operations are ongoing Operations produce the same product

The person who is fully responsible for the project and will be held accountable for its success or failure.
Its the people (Project Manager and Project Team), not the procedures and techniques, that are critical to accomplishing the project objective. Procedures and techniques are merely tools to help the people do their jobs.

 Project Managers work with project sponsors, project teams, and other people involved in projects to meet the project goals. Program: A group of related projects managed in a coordinated way to obtain benefits and control not available from managing them individually. * Program Managers oversee programs and often act as bosses for project managers.

*PMI, A Guide to the Project Management Body of Knowledge (PMBOK Guide) (2004), p. 16.

o Program- Programs have a larger scope (than projects), usually a group of inter-related projects, and provide more significant benefits. Operates over the long-term, and are designed to use the organizations resources to impact a specific subject area. o Project- Has a beginning and end, defined resources, and creates a unique product or service. o Process- Part of the ongoing operations of the organization; may be introduced or changed over time, but once established, an organizational process operates on a continuous basis without a specified end.

 Project Management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements. *
*PMI, A Guide to the Project Management Body of Knowledge (PMBOK Guide) (2004), p. 8.

 A method for organizing tasks

A structured framework to help a group work productively

Tools to aid in task sequencing, dependency analysis, resource allocation, scheduling, etc. Tools to track progress relative to plan

A systematic approach to achieve the desired objectives and results

 Complex project needs coordination of:

Multiple people Multiple resources (labor, equipment, etc.)

Multiple tasks some must precede others

Multiple decision points approvals

Phased expenditure of funds

Matching of people/resources to tasks

 Better control of financial, physical, and human resources. Improved customer relations. Shorter development times. Lower costs. Higher quality and increased reliability. Higher profit margins. Improved productivity. Better internal coordination. Higher worker morale (less stress).

Customers Project Sponsor - the Guy with deep pockets Users Project team Support staff Suppliers Inspectors Opponents People involved in or affected by project activities Surroundings

 Every project is constrained in different ways by its:

Scope goals: What work will be done? Time goals: How long should it take to complete? Cost goals: What should it cost?
In project management there is a key concept called the triple It is the Project Managers duty to constraint or the project management triangle. The idea is that while managingthese a project the PM must keep three constraints balance three often-competing in balance; the scope or work that is required to produce the goals. projects end results, the amount of time required to perform the work, and the cost or budget for the project.

Successful project management means meeting all three goals (scope, time, and cost) and satisfying the projects sponsor!

 Builds the dashboard you use for controlling the project. Without this dashboard, you Scope (Performance) have no way of knowing where the project is currently heading, how far off course it is, or what action to take to get Time Client Cost it back on course. (Budget) (Schedule) Agreement If you neglect this function, you and all project stakeholders are subject to Manage the Triple Constraint unhappy surprises. Uncontrolled projects rarely reach their original goal.

 Complexity of problems facing the project manager Growth in number of project oriented organizations Project Management Institute (PMI) was established in the year 1969. Its Headquarter is in Newtown Square, Pennsylvania, United States By 1990 it had 7,500 members Within next 10 years, over 60,000 members By 2005, it had exploded to over 150,000 members And at present, it has over 400,000 members spread in more than 184 countries. Exponential growth is indicative of the rapid growth in the use of projects

Also reflects the importance of PMI as a force in the development of project management as a profession Over 500,000 people hold the PMP credentials/certifications.

Weak business case

is this just a whim or is there a real need for the project? If so, prove it!

Lack of senior management commitment

these are the decision-makers and hold the purse strings. You have to have their buy-in or else you set yourself up for failure.

Inadequate project planning (budget, schedule, scope, etc.)

This will always present problems. You have to know what you are doing, why you are doing it, whos doing what, when it needs to be done and how much it will cost.

Absence of user involvement New or unfamiliar technology Lack of defined, clear, or concise requirements

1.
2.

3.
4. 5. 6. 7. 8. 9.

Sound project management processes Project tied to the organizations business goals Senior management commitment Good change management Detailed requirements Realistic schedule Good stakeholder relationships Empowered project manager Skilled and appropriate team members with

 31% of all new software development projects are cancelled before completion 53% of projects cost increase by up to 89% of original estimates 16.2% of software projects completed on time and on budget Average overrun is 222% of original estimates

A survey on overall applications development projects revealed: 46% of IT projects were "challenged" (completed over budget and past the original deadline). 6% of projects succeeded. 28% of projects failed.

Source: Standish Group, 1995

Source: Standish Group, 1998

 The Standish Group are not the only organization to report similar findings. In August 2007, Dynamic Markets surveyed 800 project managers from eight different countries. They found that: 62% of projects overrun on time. 49% of projects overrun on budget. 47% of projects suffer from higher than expected maintenance costs. 28% of organization have experienced projects that not fit Japan, requirements. France, Germany, UK,do United States, India, Singapore, Sweden

Geo Spread National & International Sector Industrial & Non Industrial Technology Non Conventional, High Tech, Conventional Technology, Low Tech Size Mega, Major, Medium, Mini New or Existing Grass Root, Expansion, Modification Research Knowledge, market oriented
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1. 2. 3. 4. 5. 6. 7. 8. 9.

Scope Management Cost Management Time Management Communication Management Human Resource Management Quality Management Risk Management Procurement Management Integration Management

PS All slides containing are mainly for your help in understanding the concept. You dont have to memorize each n every word of such slides.

23/01/2014

Make your Choice

"The world is mainly divided into two classes people who do things, & people who get the credit. Try, if you can, to belong to the first class. There's far less competition."
(Dwight Morrow 1873-1931)

Modern Concept of Project Management

Project management is the link between creative thoughts, engineering innovation and reality. In order to translate engineering creativity into a portfolio of standardized and validated technologies, project managers facilitate timely execution of activities utilizing a variety of knowledge, skills, tools and techniques.

Projects in Contemporary Organizations

Today, the project management landscape is changing, opening new competitive advantages for companies. While some are struggling with the pains of traditional project management tools and e-mail etc, others are becoming more efficient and innovative by leveraging the benefits of the new technologies. Project Management has emerged because the characteristics of modern society demands the development of new methods of management

Projects in Contemporary Organizations .contd

Many forces have now fostered the emergence and expansion of Project Management The use of Project Management has grown quite rapidly and is likely to continue growing. With increased international competition, customers demand to have their products and services developed and delivered better, faster, and cheaper. Because project management techniques are designed to manage scope, quality, cost, and schedule, they are ideally suited to this purpose.

Forces of Project Management

Paramount forces driving Project Management:

1. The phenomenal expansion of human knowledge & technological disruption. 2. The growing demand for a broad range of complex, sophisticated, customized goods and services. 3. The evolution of worldwide competitive markets for the production and consumption of goods and services. All 3 forces combine to mandate the use of

Project Management
Pros
Project Management is a great stepping stone to professional growth. Project Managers are better paid than their technical discipline colleagues. Completing a project gives one a strong sense of achievement. Work associated with Project Management has considerable variety No two days are the same. As a Project Manager you are normally given significant freedom of choice. Project Management provides an opportunity to make significant changes to the organization and/or environment. A Project Managers role cuts across several technical disciplines.

Cons

Project Management

As a Project Manager, you will need to be tolerant to the politics around the project and the people who participate in it. Project Managers need to deal with significant ambiguity and uncertainty. There is always someone threatening to halt the project. By definition projects are transformational and not all people like change. Project Managers are given a lot of responsibility but very little authority. The process of executing projects often disconnects project managers from their roots. Sometimes this is an alienating experience. There is social stigma in that the technocrats often perceive Project Management as not a real job

Project Life Cycle

All projects go through predictable stages called a project life cycle. A project life cycle is a collection of generally sequential project phases whose name and number are determined by the control needs of the organization or organizations involved in the project. An organizations control needs are to be assured that the work of the project is proceeding in a satisfactory manner and that the results are likely to serve its customers intended purpose. The project customer is the person or organization that will use the projects product, service, or result.

Project Management Life Cycle

The Five Phases/Processes

1. Initiating Process consists of processes performed to define a new project or a phase of an existing project by obtaining authorization to start the project or phase. 2. Planning Process consists of processes required to establish the scope of the project, refine the objectives and define the course of action required to attain the objectives that the project was undertaken to achieve. 3. Executing Process consists of processes performed to complete the work defined in the project management plan to satisfy the project specifications. 4. Monitoring and Controlling Process are required to track, review and regulate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes. 5. Closing Process consists of processes performed to finalize all activities across all the process groups to formally close out the project or phase.

A Generic Project Life Cycle (Effort Level)

Stages of a Conventional Project

Slow beginning Gradual buildup Peak Begin a decline Termination

Risk during the Project Life Cycle

With most projects there is an element of uncertainty about the ability to meet the project goals Uncertainty of outcome is greatest at the start of a project Uncertainty decreases as the project moves toward completion

Nine Project Management Knowledge Areas

Knowledge areas describe the key competencies that project managers must develop.
Four core knowledge areas lead to specific project objectives (scope, time, cost, and quality). Four facilitating knowledge areas are the means through which the project objectives are achieved (human resources, communication, risk, and procurement management). One knowledge area (project integration management) effects and is effected by all of the other knowledge areas.
All knowledge areas are important!

Project Management Tools and Techniques

Project management tools and techniques assist project managers and their teams in various aspects of project management. Specific tools and techniques include:
Project charters, scope statements, and WBS Gantt charts, network diagrams, critical path analyses, scheduling (time). Cost estimates and earned value management (cost). Communication plans & matrix, performance reports Risk management plan, risk response.

Project Management Pothole

Scope Creep
Scope creep occurs when additional requirements, sometimes even minor, are continually identified and added to the project with persistency, until they start going beyond control.

 Gradual, progressive increase in the projects scope that is not noticed immediately

Occurs when additional requirements result in scope change and can cause cost and schedule overruns Often dont recognize it because it happens when everyone is agreeing!

Need to bring a change? Ask these Questions!

Is it a must? Can the customer/user do the job without it? Does it contribute to the viability of the system? Have a change control process that involves all of your Does it add value as have a feature/function to stakeholders, so you know you their buy-in, particularly the system? if the change significantly impacts the budget or timeline. Is it worth the additional cost?

Keeping Control of the Budget

o This ties back to the triple constraint and our nemesis scope creep. It also may reflect poor planning. o Keep on top of your budget. Dont let changes in time or scope occur without updating your budget.
o While some changes in budget are not uncommon, projects that go significant over budget are in danger of not getting something they really need or want that comes later in the project because of failure to control cost.

A GOOD PROJECT MANAGER STAYS ON TOP OF THE BUDGET

Focus on the Entire Project

Report? What report? By whom? To whom? When? Documentation.
One of the areas of concern for a project manager is maintaining focus on the entire project! Especially when youre getting close to the end of your project and everyone is eager to test and pilot. You have to make sure the system provides you with the ample data to prepare accurate reports.

Project Management Reporting

Establish reporting requirements upfront Include the good, the bad, and the ugly Be brief but accurate Establish reporting requirements upfront (frequency, delivery Management really does want tobe know! method) (meeting, written, conference call), items to included.
This is where you should establish a change control process. Remember! these are management reports be brief but provide accurate and sufficient information. Also remember higher up the chain you go, shorter the attention span, but believe it or not management really does want to know!

What is a Project Manager?

Ultimately responsible for the Projects success or failure Good project manager is like a mini-CEO Plans and Acts Focuses on the projects end (completion) Be a Manager & a Leader (adaptive to both roles)

Tips for Project Managers

Project Manager does no work other than manage the project! Clearly outline the critical path of the project. Understand the project flow from beginning to end. Identify risks and develop contingencies. Establish the right relationships. Establish a speedy conflict resolution process.

Vital Dozen for Project Managers

1. Understand the context of Project Management. 2. Recognize project team conflict as progress. 3. Understand who the stakeholders are and what they want. 4. Accept and use the political nature of organizations. 5. Lead from the front. 6. Understand what the success means. 7. Build and maintain a cohesive team. 8. Over enthusiasm and despair are both infectious. 9. One look forward is worth two looks back. 10. Remember what you are trying to do. 11. Use time carefully or it will use you. 12. Above all, plan and act accordingly.

LEADERSHIP
Whoever wants to be a leader should educate himself before educating others. Before preaching to others he should first practice himself. Whoever educates himself and improves his own morals is superior to the man who tries to teach and train others. ~ Hazrat Ali RA "Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall. ~ Stephen R. Covey "The difference between a boss and a leader: A Boss says, 'Go!' A Leader says, 'Let's go!. ~ George E.M. Kelly

Importance of Leadership Skills

Effective project managers provide leadership by example A Leader focuses on long-term goals and bigger-picture objectives while inspiring people to reach those goals A Manager deals with the day-to-day details of meeting specific goals Project managers often take on the role of both leader and manager Managers do things right, Leaders do the right thing Managers achieve the vision, Leaders determine the vision

Leadership is all about integrity

A leader must have the trust of followers and therefore must display integrity. A person of integrity is the same on the outside and on the inside. Such an individual can be trusted because he or she never veers from inner values, even when it might be expeditious to do so. Transformation leaders interact with team members in a positive and inspiring manner. A leader has a vision that is fuelled by an overall confidence and willingness to take risks. Sharpens and utilizes peoples skills, intelligence, and talents to attain a goal, create an excellent

Questions?

28/01/2014

Project Organization
A project organization is a structure that facilitates the coordination and implementation of project activities. Its main reason is to create an environment that fosters interactions among the team members with a minimum amount of disruptions, overlaps and conflict. One of the important decisions of project management is the form of organizational structure that will be used for the project. Each project has its unique characteristics and the design of an organizational structure. A project structure can take on various forms with

 There are many reasons for the rapid growth, but most of them can be grouped in four general areas: Speed and market responsiveness have become absolute requirements for successful competition The development of new products, processes, or services regularly requires input from diverse areas of specialized knowledge Rapid expansion of technological possibilities in almost every area of enterprise tends to destabilize the structure of organizations A majority of senior managers rarely feel much confidence in their understanding and control of the activities in their areas

Growth of Project Oriented Organizations

Types of Project Organizations

There are two fundamentally different ways of organizing projects within the parent organization The project as part of the Functional Organization The project as a free-standing part of the parent organization A third type, called a Matrix Organization is a hybrid of the two main types

Advantages of the Project as Part of the Functional Organization

Advantages of using the functional elements of the parent organization as the administrative home for a project include: 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 The functional division also serves as a base of technological continuity when individuals choose to leave the project

Disadvantages of the Project as Part of the Functional Organization

There are also disadvantages to housing the project in a functional area: The client is not the focus of activity and concern The functional division tends to be oriented toward the activities particular to its function Occasionally, no individual is given full responsibility for the project There are often several layers of management between the project and the client There is a tendency to sub optimize the project

Pure Project Organization

An organization in which the project is separated from the rest of the parent system. It becomes a selfcontained unit with its own staff.

 The project manager has full line authority over the project All members of the project work force are directly responsible to the project manager When the project is removed from the functional division, the lines of communication are shortened When there are several successive projects of a similar kind, the pure project organization can maintain a permanent cadre of experts who develop skills in specific technologies A project team that has a strong and separate identity and develops a high level of commitment among its members Because the authority is centralized, the ability to make a swift decision is enhanced. Unity of command exists The organizational structure tends to support a holistic approach to the project

Advantages of Pure Project Organization

Disadvantages of Pure Project Organization

Each project tends to be fully staffed which can lead to a duplication of effort in every area from clerical staff to technological support The functional division is a repository of technical lore, but it is not readily accessible to team members of the pure project team Pure project groups seem to foster inconsistency in the way in which policies and procedures are carried out In a pure project organization, the project takes on a life of its own There tends to be concern among team members about life after the project ends

The Matrix Organization

The matrix organization is a combination of functional and pure project A matrix organization can take on a wide variety of specific forms
Project or strong matrix organization most resembles the pure project organization The coordination or functional or weak matrix most resembles the functional form The balanced matrix lies in between these

The Matrix Organization

Rather than being a stand alone organization, like the pure project, the matrix project is not separated from the parent organization:

Advantages of Matrix Organization

The project is the point of emphasis Because the project is overlaid on the functional divisions, the project has reasonable access to the reservoir of technology in all areas There is less anxiety about what happens when the project is completed Matrix management gives the project access to representatives from the administrative units of the parent firm The matrix organization allows a better company-wide balance of resources to achieve goals There is a great deal of flexibility in precisely how the project is organized within the matrix

 The balance of power between the project and functional areas is very delicate The movement of resources from project to project may foster political infighting Problems associated with shutting down projects can be as severe as in a pure project organization The division of authority and responsibility in a matrix organization is complex, and uncomfortable for the project manager. Matrix management violates the management principle of unity of command. Project workers have at least two bosses, their functional heads and the project manager.

Disadvantages of Matrix Organization

Mixed Organizational Systems

Divisionalization is a means of dividing a large organization into smaller more flexible units This enables the parent organization to capture some of the advantages of small, specialized organizational units while retaining some of the advantages that come with larger size units

Mixed Organizational Systems

Pure functional and pure project organizations may coexist in a firm

Mixed Organizational Systems

Advantages of a mixed organization: The hybridization of the mixed form leads to flexibility The firm is able to meet special problems by appropriate adaptation of its organizational structure Disadvantages include: Dissimilar groupings within the same accountability center tend to encourage overlap, duplication, and friction because of incompatibility of interests Conditions still exist that result in conflict between functional and project managers

Choosing an Organizational Form

Selecting the organizational interface between the project and the firm is a difficult task
The choice is determined by the situation, but is also partly intuitive Must consider the nature of the potential project, the characteristics of the various organization options, the advantages and disadvantages of each, the cultural preferences of the parent organization, and then make the best compromise that can be made

Choosing an Organizational Form

Criteria for the selection of a project organization:
1. Define the project with a statement of the

objective(s) that identifies the major outcomes

desired 2. Determine the key tasks associated with each objective and locate the units in the parent organization that serve as functional homes for

these types of tasks

Choosing an Organizational Form

Criteria for the selection of a project organization (contd):
4. Determine which organizational units are required to carry out the work packages and which units will work particularly closely with which others 5. List any special characteristics or assumptions associated with the project 6. In light of items 1-5, and with full cognizance of the pros and cons associated with each structural form, choose a structure

The Project Team

To staff a project, the project manager works from a forecast of personnel needs over the life cycle of the project
A work breakdown structure (WBS) is prepared to determine the exact nature of the tasks required to complete the project Skills requirements for these tasks are assessed and like skills are aggregated to determine work force needs From this base, the functional departments are contacted to locate individuals who can meet these needs Certain tasks may be subcontracted

The Project Team

There are some people who are more critical to the projects success than others and should report directly to the project manager or the project managers deputy:
Senior project team members who will be having a long-term relationship with the project
Those with whom the project manager requires continuous or close communication Those with rare skills necessary to project success

Human Factors and the Project Team

Meeting schedule and cost goals, without compromising performance is a technical problem, with a human dimension Project professionals tend to be perfectionists

Pride in workmanship leads the team member to improve (and thus change) the product These changes cause delays in the project

Human Factors and the Project Team

Motivating Project Team Members:
The project manager often has little control over the economic rewards and promotions of project team members, but this does not mean he/she cannot motivate members of the team How are technical employees motivated? Recognition Achievement The work itself Responsibility Advancement The chance to learn new skills

Human Factors and the Project Team

Empowerment of project teams is also a motivational factor:
1. It harnesses the ability of the team members to manipulate tasks so that project objectives are met. The team is encouraged to find better ways of doing things 2. Professionals do not like being micromanaged. Participative management does not tell them how to work but given a goal, allows them to design their own methods 3. The team members know they are responsible

Human Factors and the Project Team

Advantages of Empowerment (cont.):
4. There is a good chance that synergistic solutions
will result from team interaction 5. Team members get timely feedback on their performance 6. The project manager is provided a tool for evaluating the teams performance

Interpersonal Conflict
The focus of conflict can often be related to the stage in the projects life cycle
When the project is first organized, priorities, procedures and schedules all have roughly equal potential to cause conflict During the buildup phase, priorities become significantly more important than any other conflict factor In the main program phase schedules are the most important cause of conflict followed by technical disagreements At the project finish, meeting the schedule is the critical issue

Interpersonal Conflict
Conflict and the Project Manager
Most of the conflict on project teams is the result of individuals focusing on the project through the eyes of their individual discipline or department Conflict avoiders do not make successful project managers
On occasion, compromise appears to be helpful, but most often, gently confronting and resolving the conflict is the method of choice, for a win-win situation

Authorities Linked to Various Matrices