Project Management

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Project Management

• Presented by Dr. Joan Burtner
• Certified Quality Engineer
• Associate Professor of
• Industrial Engineering and Industrial Management
• Mercer University

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Overview of Project Management

• Project management defined
• Project management tools
• Project planning and estimation tools
• Designing processes and deliverables
• Implementing and tracking the project
• Evaluating and closing out the project

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What is Project Management?

• Project management is a collection of proven
  techniques for proposing, planning, implementing,
  managing, and evaluating projects, combined with
  the art of managing people - Westcott (p. 237)
• Project management is a supplementary skill that
  augments an individuals primary skill. -
  Christensen, Coombes-Betz, Stein (p. 82)

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Project Lifecycle Stages

• Visualizing, selling, initiating the project
• Planning
• Designing processes and outputs
• Implementing and tracking
• Evaluating and closing out the project

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Tools for Stage 1 Risk Assessment

• Potential Issues
• Will the outcome of the project achieve a level
  of results acceptable to stakeholders?
• Will the project be accomplished on time?
• Will the project require more financial capital
  than initially anticipated?
• Identification of risks
• Brainstorming by a team
• Reviews of previous projects
• Inputs from stakeholders
• Quantification - Failure Mode and Effects
  Analysis
• Severity
• Occurrence
• Detection

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Tools for Stage 1 Benefit-Cost Analysis

• Is the project financially feasible?
• Determine ratio of projected revenues and cost
  estimates for projects under consideration
• Compare benefit/cost for each project
• Select projects that will be funded
• Verify projects financial impact after project
  is completed
• Quantification Benefits-to-Costs Ratio
• Direct costs and direct benefits
• Equipment, salaries, increased production, higher
  quality, increased sales, reduced delivery costs,
  higher reliability, decreased deficiencies, lower
  warranty costs, etc.
• Indirect costs and indirect benefits (often
  difficult to quantify)
• Displaced workers, opportunity costs, increased
  customer satisfaction, better trained employees,
  etc.

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Tools for Stage 1 Ranking/Prioritizing Projects

• Ranking projects (See pp. 242-245 of your text)
• Payback period
• Net present value (NPV)
• Internal rate of return (IRR)
• Return on investment (ROI)
• Return on assets (ROA)
• Prioritizing projects
• Portfolio analysis a comparison of the relative
  financial impacts of ongoing projects versus
  proposed projects
• Prioritization matrix a merit analysis method
  described in detail in chapter 13
• Strategic fit analysis Does the project fit
  within the organizations short-term and
  long-term strategies and resources?

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Tools for Stage 2 Project Planning Sequence -1

• Typical project planning sequence
• (See p. 247 of your text)
• Statement
• Project justification
• Payback period, NPV, IRR, ROI, ROA, BC ratio
• Draft project documents
• Mission statement, project scope and objectives
• Stakeholder requirements
• Stakeholder matrix, process map

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Tools for Stage 2 Project Planning Sequence -2

• Typical project planning sequence
• (See p. 247 of your text)
• Project team formation
• Update project documents, prepare charter,
  request project planning funds
• Identify deliverables
• Project outputs or contractually required
  deliverables (CDRLs)
• Internal outputs for planning and managing
  project

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Tools for Stage 2 Project Planning Sequence -3

• Typical project planning sequence
• (See p. 247 of your text)
• Work breakdown structure (WBS)
• Hierarchy of work categories
• Gantt chart
• Major project steps with projected start times
  and finish times
• Time-dependent task diagrams
• Resource requirements matrix (RRM)

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Tools for Stage 2 Project Planning Sequence -4

• Typical project planning sequence
• (See p. 247 of your text)
• Linear responsibility matrix (LRM)
• Project budget
• Measurements and reports
• Milestones, project monitoring process, data
  analysis methodology, reporting protocols
• Completed project plan
• Obtain final approval to proceed with project

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Tools for Stages 3 and 4

• Stage 3
• Designing project-specific processes and
  deliverables
• Varies with project type (software design,
  hardware design, integrated software/hardware,
  etc.)
• Stage 4
• Implementing and tracking the project
• Critical performance measures
• Timeliness (tracking overall progress, stage/gate
  reviews)
• Budget variance (tracking expenditures and
  comparing to budget)
• Earned value analysis (periodically tracking
  planned value, earned value of actual work
  completed, actual costs to achieve earned value)
• Resource usage (facilities, human, equipment,
  information)
• Risk analysis (proactively exercising control of
  potential future events)

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Tools for Stage 5

• Evaluating and closing out the project
• Typical end-of-project measures
• Objectives
• Deliverables
• Schedule
• Budget
• Payback
• Cost savings
• Earned value analysis results
• Lessons learned

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References

• Westcott, R.T. (Ed.). (2006). The Certified
  Manager of Quality/Organizational Excellence
  Handbook (3rd edition) , Milwaukee, WI ASQ
  Quality Press
• Project Management Institute (2004). Guide to the
  Project Management Body of Knowledge , Newton
  Square, PA PMI Publications
• Christensen, E., Coombes-Betz, K., and Stein, M.
  (2007). The Certified Quality Process Analyst
  Handbook , Milwaukee, WI ASQ Quality Press

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Contact Information

• Email Burtner_J_at_Mercer.edu
• US Mail
• Mercer University School of Engineering
• 1400 Coleman Avenue
• Macon, GA
• Phone [phone]