Project Manangement Introduction

Project Management Introduction B y ASIM SHAHZAD

Hope is not a strategy… Implementation is never an accident. It is the result of high intention, sincere effort, intelligent direction and skillful execution. It represents the wise choice of many alternatives. Donald G. Giles, US Steel

Your Projects Cannot Afford to Fail 66% of all IT projects fail, come in over budget or run past the original deadline Every year, $55 billion is wasted on failed IT projects in the U.S. Business Impacts: Reduced profitability Inability to fund new projects Poor customer satisfaction Source: Chaos Chronicles 2003, The Standish Group

What is a Project ? A project is a sequence of temporary, 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. Creation of Business Value – Important Fulfilling the Needs “ Projects are the Building Blocks of an Investment Plan” Types of Investments? Azhar & Sassone

1. A project is a one-time effort with specific objectives and deliverables. 2. A project requires a commitment of personnel, capital, and other resources over a period of time. 3. A project has a defined start and end date. 4. A project is executed by an organized team. 5. A project has a certain amount of complexity and is not "business as usual" (operations).

A strategic project is focused on expanding or changing your organization's objectives, capabilities, or direction in order to achieve a higher level of success. (e.g., build a new facility; reengineer a business process or workflow.) A tactical project is designed to produce a specific deliverable (e.g., develop a new sales brochure; choose a replacement for an aging computer).

All projects can be described using a four-phase lifecycle. First Phase: In the first phase, a need is identified by the client, customer or other stakeholder. This results in a process to describe and define the needs and requirements, sometimes soliciting information or proposals from vendors, contractors or consultants. We can call this phase Initiation.

Second Phase The second phase is characterized by the development of proposed solutions. This can be by a structured bid form which requests specific items of information related to project costs, staffing, timescales, description of the activities, compliance to technical standards and key deliverables.

The third phase is when the project is actually executed covering detailed planning and Implementation. The final phase is terminating the project or Closure. In some cases this is marked with formal acceptance by the customer or client with signed documentation.

Contd…. A project is a group of activities that are to be undertaken with limited resources to yield specific objectives in a specific time in a specific locality. A project has a specific starting point, and a specific ending point. An investment on which resources are used to create assets that will produce benefits over an expanded period of time. PMI has defines the project as single effort undertaken in order to create unique project or service. ISO 10006 Standard defines the project as, “unique processes, consisting of a set of coordinated and controlled activities with start and finish dates, undertaken to achieve an objective conforming to specific requirements, including the constraints of time, cost and resources”.

What is a Project (Contd) Unique Activities The project has never happened before and will never happen again under the same conditions. Complex Activities Not simple, repetitive acts, such as mowing the lawn, running the weekly payroll, washing the car, or loading the delivery truck Connected Activities There is some order or sequence Output from one activity is input to another. Temporary Activities Start and Finish Dates

What is a Project (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) According to Specification The customer or recipient expectation Self-imposed

What is a Project (Contd) What is a Program ? The co-ordinated management of a system of projects to achieve a set of business objectives. A program is different from a project. Programs are larger in scope and comprise multiple projects . Word program may also refer to a series of projects which make up one large project. What is a Portfolio? The constituent projects within a program, which will deliver the products needed to move the business forward from the current business operations to those described in the blueprint.

Project Parameters Cost Time Resources

What is a Project (Contd) The Scope Triangle: Time, Cost, Resources Time Cost Resources Scope and Quality

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 Development Harbors, dams, irrigation, Research Health, space, agriculture Defense Military equipment and systems Conservation Forests, shorelines, pollution

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 .

Modern Tools - Technique Leadership Paradigm PERT/CPM (Program Eval & Review Tech) VERT/GERT (Venture/Graphical) Linear Responsibility Charts Gantt Charts, Gozinto Charts Milestone Charts Work Breakdown Structures Project Action Plans Computers

What is Project Management? “ Project Management is the application of knowledge, skills, tools, and techniques to project activities to meet project objectives.” A Guide to the Project Management Body of Knowledge; T he Project Management Institute 2000 Edition The work typically involves: Competing demands for: scope, time, cost, risk, quality Stakeholders with differing needs and expectations Identified, and often progressive requirements

What is Project Management? Project Management can be applied to any project regardless of size, budget or timeline. Some examples are: Developing a new product or service Running a political campaign Sending a probe to Mars Designing a compensation system Negotiating a collective agreement Setting up an e-commerce internet site Or as in my current project – reorganization of business areas involving redesign of business processes, collapsing of roles and the introduction of new technology.

Why do organizations use Project Management? Improved communication among project participants Increased understanding of the project and its purpose Ability to define and control project scope Ability to identify, monitor, and track milestones Accurate projection of resource requirements ensures that available resources are used in the most effective and efficient manner Improved assessment and mitigation of project risk events Identification and communication of problem areas Prioritization of functional and project activities Clarification of and alignment with organizational goals

Why do organizations use Project Management? To sum it up….. Improve results Value……… 2. Decrease costs 3. Improve customer service 4. Time

Project cycle by definition classifies the major stages of a project in a symmetrical manner. “planning, implementation and evaluation ”

Project Life Cycle The defined Sequence of events that constitute a project. Conception/selection Planning Implementation Control Evaluation Termination

Project Selection Models Non-numeric Models The sacred cow The operating necessity The competitive necessity The product line extension Comparative benefit model Numeric Models: Payback period IRR Discounted cash flow, NPV Benefit Cost Ratio

What is Project Planning ? It is complete road-map to go from point A to B. Project planning is a rational 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

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

Project Management Processes Planning provides documented executing plans and the updates as the project progresses Initiating Processes Planning Processes Controlling Processes Executing Processes Closing Processes

Project Planning Considerations Too often people perceive project planning as only techniques or concepts such as PERT, CPM, and GANTT charts. However, project planning is much wider activity with following key considerations Cost estimating and budgeting Technology strategies scheduling Specification of deliverables Resource usage estimating Delineation of organizational structure Information and control system sign Risk Identification

Control and Evaluation Discrepancies are called variances The acceptable levels of variance should be determined at the outset of the project Control entails continual monitoring of project progress, while evaluation involves periodic stock-taking 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)

Project Implementation Procure Materials, Vehs, Equipt etc. Establish Field Offices (Build and test Facilities) Teams go Out to Work (Data Collection, survey etc) Develop support requirements Produce system Verify performance Modify as required

Termination When to Terminate? Very Important Exit Strategy (Donors are Extremely Interested) Train functional personnel Transfer materials Transfer responsibility Release resources Reassign project team members Sustainability Aspects Warranty/ Guarantee

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

Project Manager (Contd) The PM’s first set of tasks is typically to prepare a preliminary budget and schedule, to help select people to serve on the project team, to get to know the client, to make sure that the proper facilities are available, to ensure that any supplies required early in the project life are available when needed, and to take care of the routine details necessary to get the project moving.

Responsibilities of Project Manager To complete the project within time, within budget and according to specifications To act as an intermediary between top management and project team To obtain feedback for learning lessons To train and educate the project staff

FM Vs PM Functional manager is in charge of one of a firm’s functional departments such as marketing, engineering, or finance. Such department heads are usually specialists in the areas they manage. They are analytically oriented and they know something of the details of each operation for which they are responsible. They know how to analyze and attack a problem.

FM Vs PM (Contd) A PM, by contrast, is usually a generalist with a wide background of experience and knowledge. A PM must oversee many functional areas PM has an ability to put many pieces of a task together to form a coherent whole Project manager must be more skilled at synthesis Functional manager must be more skilled at analysis Functional manager uses the analytica l approach and the PM uses the systems approach

What is a Project Manager? Project Management is a skill as much as it is a profession – the “ Accidental Profession ”. The Project Manager is responsible for managing the project within the constraints of scope, quality, time and cost to deliver specified requirements and meet or exceed! customer satisfaction.

Competencies needed…. Additional Process mapping Business area analysis Team Building / Managing People Facilitation Financials / business case development Quality Assurance Core Planning Estimating Project Tools MS Project Project Workbench Conducting Meetings PM Methodology And a sense of humor!

What are the major roles on a Project? Functional Manager Team Members Project Manager Stakeholders Sponsor Project Participants Functional Manager – Managers responsible for activities and resources in a specialized department or function. Sponsor – The internal organizational owner of the project. Responsible for establishing the project’s priority within their organization. Has overall responsibility for its success. Stakeholders – Parties involved in or being affected by the project activities. Team Members – staff who use their skills to contribute to the project’s deliverables. Can report either directly or indirectly to the Project Manager. Project Manager – individuals with the authority and responsibility for delivering the documented project requirements – on time and within budget.

Project Management Challenges Handling Large complex projects Best Practices Proof of Concept before Actual Implementation Phased Execution with user acceptance per phase Separate environments for development, QA & Pre-Production Plan for external system dependency Joint Planning Senior Management Checkpoint meetings Separate testing and design teams for large projects Core Team for Subject Matter expertise and guidance

Project Management Challenges Handling Quick & dirty solutions Best Practices Active Participation of client PM in finalizing requirements Technical design for representative cases (with core team) Use of available open source or cost effective third party tools Extreme Programming / Pair Programming Schedule activities in parallel

Project Management Transition - Challenges Full Knowledge Coverage Cooperation from existing teams Availability of SMEs Knowledge Management Transition - Best Practices Audio-Video Recording Knowledge Scorecard – Certification Process Vendor shadowing client resources and vice versa Involvement of the vendor in testing/documenting the system or application Training of the vendor team on the application being out sourced Linking severance package with knowledge transfer activities

Project Organization Functional 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.

Functional Organization (Contd) The functional division also serves as a base of technological continuity when individuals choose to leave the project and even the parent firm. Functional division contains the normal path of advancement for individuals whose expertise is in the functional area Disadvantages Client is not the focus of activity and concern Functional division tends to be oriented toward the activities particular to its function

Functional Organization (Contd) 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 home may be dealt with carefully, but those outside normal interest areas may be given short shrift, if not totally ignored Motivation of people assigned to the project tends to be weak. Such an organization arrangement does not facilitate a holistic approach to the project.

Project Organization (Contd) Pure Project Organization The project is separated from the rest of the parent system. It becomes a self-contained unit with its own technical staff, its own administration, tied to the parent firm by the tenuous strands of periodic progress reports and oversight Advantages The project manager has full line authority over the project. All members of the project work force are directly responsible to the PM

Pure Project Organization Marketing Manufacturing R&D Finance Personnel Manager, Project A Manager, Project B Marketing Manufacturing R&D Finance Personnel

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.

Pure Project Organization (Contd) 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 Pure project groups seem to foster inconsistency in the way in which policies and procedures are carried out.

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. Worry about “life after the project ends” The Matrix Organization It couples some of the 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. In fact, the functional and the pure project organizations represent extremes.

Matrix Organization PM 1 3 1 1/2 1/2 4 1/2 PM 2 1 4 1/4 1 1/2 1/4 PM 3 0 1/2 3 1/2 1

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 Consistency with the policies, practices, and procedures of the parent firm tends to be preserved

Matrix Organization (Contd) Where there are 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.

Matrix Organization (Contd) For strong matrices, problems associated with shutting down a project are almost as severe as those in pure project organizations. Division of authority and responsibility inherent in matrix management is complex. Matrix management violates the management principle of unity of command. Project workers have at least two bosses.

Causes of Project Failure Projects can and do fail for many reasons that are predictable and avoidable. Projects failures fall into three broad categories: Project process-related factors, Project-related factors, and Uncontrollable factors. Some common project process-related factors include:  too many concurrent projects,  too few individuals who can manage projects effectively,  poorly defined roles and reporting relationships among those engaged in a project,  wavering priorities and resource commitments to the project,

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.

Causes of Failure Contd 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: Sluggishness and bureaucracy of the Government.

Project Management - 20 Steps to Success Ensure the viability of your project Develop the Project Charter Initiating Establish the Project Notebook/Extranet Hold the Project Kickoff Meeting Develop the Project Plan 5.1 Develop the Scope Statement 5.2 Develop the Work Breakdown Structure 5.3 Define Project Activities 5.4 Sequence Project Activities 5.5 Estimate Project Activity Durations 5.6 Develop the Project Schedule 5.7 Estimate Project Costs 5.8 Determine Resource Requirements 5.9 Develop the Risk Response Plan Subsidiary Management Plans 5.a Develop the Scope Management Plan 5.b Develop the Schedule Management Plan 5.c Develop the Cost Management Plan 5.d Develop the Quality Management Plan 5.e Develop the Staffing Management Plan 5.f Develop the Communications Management Plan 5.g Develop the Risk Management Plan 5.h Develop the Procurement Management Plan Planning Execute the Project Plan Carry out Quality Assurance Develop your Project Team Issue Status Reports Manage Procurement of External Resources Executing Control Project Changes Manage Project Issues Ensure Formal Acceptance of all Deliverables Control the Project Scope, Schedule and Cost Control the Project Quality Report Project Performance Control Project Risks Monitoring and Controlling Document Lessons Learned Close the Project Celebrate Project Success Closing

SAP Lessons Learned Controlling Scope, Schedule and Cost

A Project to Clean the Glacier Areas of the North- Solid Waste Management Skardu Area The value of Leadership and Teamwork

RMS Titanic left Queenstown at 1:30pm on April 11, 1912 Received ice warnings on April 12, 13 and six on April 14, from 9am to 9:40pm. (Not known if messages were delivered to the bridge, or ignored). Iceberg hit at 11:40pm on April 14, causing holes in 5 bulkheads. Ship finally starts sinking just after 2am on April 15. Reference: www.titanic.com April 11 April 12 April 13 April 14 April 10 1912

Titanic Lessons Learned The Value of Risk Management The importance of Communications

Risk Management Processes Risk Identification Risk Response Planning Risk Monitoring and Control Risk Analysis

Lessons Learned from the Movies Need to leverage your technical experts Star Trek – Wrath of Khan Role of Principles vs. Values Fight Club Risk Management Terminator “ Thinking out of the Box” Flight of the Phoenix Importance of clear objectives with no distractions from the objective. “Are we here to fight or are we here to surf?” Apocalypse Now Need to test assumptions Amelie Team formation, right skills (on the ground and in space). The Right Stuff Project Management Lessons Learned Movie

Lessons Learned from the Movies (Cont’d) Need for proper Risk Management, Project Governance and Scope Management. A Bridge Too Far Encourage Team Participation (Little boy felt he wasn’t valued and therefore sabotaged the project. The Incredibles Teamwork and Leadership; Risk Mitigation. Gladiator Contingency Planning, Risk Management, Needs of Team Members, Controlling Processes. Thomas Crown Affair It’s business, not personal. (Uses the Godfather example). You’ve Got Mail Importance of Planning. Field of Dreams Planning – Benefits of a well planned project show up at execution. The Great Escape Trust your Project Manager, no matter how eccentric she (or he) may be. Father of the Bride Project Management Lessons Learned Movie

Project Team A Project Team is thus a group of dedicated persons who work together to complete the project within time, within budget and according to the specifications Team Efficiency  = out put/ input What a team is capable of achieving and what it actually achieves.

Matrix Based Frictions Temporarily Borrowed Staff Staff Continuity Lack of Project Commitment Project Manager’s lack of direct control Tweed coat management

Because the project is, by definition, a temporary entity and must come to an end, the PM must be concerned with the future of the people who serve on the team. If the PM does not get involved in helping project workers with the transition back to their functional homes or to new projects, then as the project nears completion, project workers will pay more and more attention to protecting their own future careers and less to completing the project on time. (Shown by “S”Curve) Matrix Based Frictions (Contd)

Communication Channels Two people, one channel Three people, three channels Four people, six channels Five people, ten channels

Poor Communication Information communication to project staff is very vital for project success No. of Channels = n(n-1)/2 Communications as an End Rather than a Means Information Atherosclerosis Clogging of important information Poor Integration

Isomorphic Team Structure If project team closely reflects the physical structure of deliverables Risk of project’s quality integration PM functions as an integrator Duplication, linking, styles etc to be standardized by the PM It’s a simple structure Best suited to independent modules Simplicity is best suited to new comers and novices

Isomorphic Team Structure Structure of the Deliverable Structure of the Project Team Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Technical Report Team Member A Team Member B Team Member C Team Member D Team Member E Project Manager

Specialty Team Structure Team members apply their special expertise across a wide array of tasks Emphasis towards their specialty and not deliverables Responsibility is more diffused and problem diagnosis is difficult Integration problems are greater than those of the isomorphic structure It fits in nicely with matrix system

Special Team Structure PROJECT MANAGER Specialist A Specialist B Specialist C Chapter 1 Chapter 2 Chapter 4 Chapter 3 Chapter 5

Egoless Team Structure Egos may have ill-effects Ego-less team structure is a truly collaborative effort that makes it hard to find who produced what portion of the product No leader but consensus Team members collaborate jointly and ego problem is minimized Encourages interactivity and communication Due to lack of leadership Ego-less team could drift State of the art projects

Egoless Team Structure Chapter 1 Chapter 2 Chapter 4 Chapter 3 Chapter 5 Team Member A Team Member B Team Member C

Surgical Team Approach Chapter 1 Chapter 3 Chapter 2 Chapter 4 Chapter 5 Administrative Buffer Chief Writer Special Assistant Specialist A Specialist B Specialist C Project Administrator Editor Demands on project staff time coming from other project

END OF Project Management Introduction Thank You

Project Manangement Introduction

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Project Manangement Introduction