Chapter 3

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Chapter 3 Project Management
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What is a Project?

• A task involving an end goal requiring

1. Planning - goal setting, defining the project,
   team organization
2. Scheduling - relate people, money, and supplies
   to specific activities and activities to each
   other
3. Controlling - monitor resources, costs, quality,
   and budgets revise plans and shift resources to
   meet time and cost demands

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What does the term Project mean to you?

• What does the term PROJECT mean to you?
• What are some types of possible projects?
• Name some other types of projects?
• What are some possible challenges of a project?

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Examples of types of project and their size

• Individual decorating your bedroom
• Group organising a wedding
• Organisation construction company, building the
  Millennium bridge in London
• Project Organisation creation of a separate
  independent organisation specifically for
  accomplishing a particular project, e.g. the
  Olympic games committee
• Multinational design construction of Concorde

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What is a Project?

• A task involving an end goal requiring

1. Planning - goal setting, defining the project,
   team organization
2. Scheduling - relate people, money, and supplies
   to specific activities and activities to each
   other
3. Controlling - monitor resources, costs, quality,
   and budgets revise plans and shift resources to
   meet time and cost demands

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Definition of a Project

• An activity with a fixed start and end point,
  managed with finite resources, involving change
  and often achieved by the collective effort of a
  team of people IPM
• the application of knowledge, skills, tools and
  techniques to project activities in order to meet
  (or exceed?) stakeholder needs and expectations
  from the project

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Definition of a Project Contd

• A project is a sequence of unique, complex, and
  connected activities. Having one goal or purpose
  that must be completed by a specific time, within
  budget, and according to specification (Artto,
  2002)

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Features of a project

• A start and a finish
• Is a unique activity with a visible output
• May involve uncertainty and risk
• Involves a team coming together specifically for
  the project
• A budget
• Non repetitive tasks, sequential order
• Use of resources (including human resources)
• A single point of ultimate responsibility
• Clearly defined team roles
• Clear aims, objectives, goals

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Terms often confused with project

• Process a series of steps needed to perform a
  routine activity (e.g. purchasing). A project may
  contain many processes.
• Programme work performed towards achieving a
  long term goal (e.g. a health awareness
  programme). Programmes may never achieve all
  their goals, and may comprise a series of
  projects.

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Video 1 Project Management at Hard Rocks
Rockfest (826)
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What is the Role of the Project Manager?
Highly visible Responsible for making sure that

1. All necessary activities are finished in order
   and on time
2. The project comes in within budget
3. The project meets quality goals
4. The people assigned to the project receive
   motivation, direction, and information

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The Role of the Project Manager
Highly visible Responsible for making sure that

1. All necessary activities are finished in order
   and on time
2. The project comes in within budget
3. The project meets quality goals
4. The people assigned to the project receive
   motivation, direction, and information

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Ethical Issues

• Project managers face many ethical decisions on a
  daily basis
• The Project Management Institute has established
  an ethical code to deal with problems such as

1. Offers of gifts from contractors
2. Pressure to alter status reports to mask delays
3. False reports for charges of time and expenses
4. Pressure to compromise quality to meet schedules

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The project managers adage(a light hearted
motto)

• You can have any two of three things in a
  project
• You can get it done on time
• You can get it done within budgeted cost
• You can get it done properly/well
•  If you are willing to wait, you can get the job
  done right, within cost.
•  If you are willing to spend the money, you can
  get the job done on time.
• Or you can get the job done on time and within
  budget only it might not do what it was supposed
  to do.

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PM Stages (5 Phases)

• Stages in the Development of a project
• Define/Initiate/ Analysis (Conception/ Idea)
  Phase I
• Planning/Development (The Plan outlined) Phase
  II
• Organize/Execution (Develop the process/ team)
  Phase III
• Monitoring/Control (is it correct?) Phase IV
• Close out (The Wrap Up) Phase V

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Key Components of a Project
5-Phase Project Management
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Project Management Activities(Phase II-III)

• Planning
• Objectives
• Resources
• Work break-down structure
• Organization

• Scheduling
• Project activities
• Start end times
• Network

• Controlling
• Monitor, compare, revise, action

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Define Initiate (Phase I)

• Essentially - What are we going to do?
• For small projects an informal discussion might
  adequate
• For larger projects, a more formal review and
  discussion processes required.
• Key questions to answer should be
• Should you do it? What is the benefit and do the
  benefits outweigh the costs?
• Can you do it? Is it technically feasible and are
  there enough resources?

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But I am too busy to spend time
planning!Planning allows you to

• Ensure that people only work on activities which
  are needed, and do them correctly the first time,
  not waste time doing unnecessary activities.
• Anticipate potential problems and take
  preventative action to deal with them before they
  happen.
• Do things in the right order at the right time,
  which should prevent things going wrong later.

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What can go wrong !
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The Initiation phase start up

• Assign people to project roles, ensure they are
  available when needed. Negotiation may be
  necessary.
• Give and explain all tasks to team members.
• Set up systems and accounts to track personnel
  information and financial expenditure.
• Announce the projects start, what it will
  produce. When it will start when it will finish

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Implementation phase the do

• Doing the tasks as laid out in your plan
• Regularly comparing the actual performance with
  the plan, knowing and anticipating when things
  are not going according to schedule
• Fixing problems that arise.
• Keeping everyone informed

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The Evaluation phase the wrap up or review

• Get the customers approval of final results.
• There may be formal project hand over to the
  client
• Complete any paperwork.
• Hold a post project evaluation to recognise
  achievements and discuss lessons learned

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Project OrganizationWorks Best When

1. Work can be defined with a specific goal and
   deadline
2. The job is unique or somewhat unfamiliar to the
   existing organization
3. The work contains complex interrelated tasks
   requiring specialized skills
4. The project is temporary but critical to the
   organization
5. The project cuts across organizational lines

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The Evaluation phase the wrap up or review

• Get the customers approval of final results.
• There may be formal project hand over to the
  client
• Complete any paperwork.
• Hold a post project evaluation to recognise
  achievements and discuss lessons learned

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Roles in projects who is responsible for what?

• One of the the benefits of project management
  techniques is the opportunity to clarify roles.
• Project sponsor person whos paying for it
• Project champion - person who wants to see it
  happen
• Project manager will ensure it happens
• Project team will make it happen
• Stakeholders those affected by it and with an
  interest in it, but not necessarily part of it.
• Audience well consider them later!

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Attributes of an effective project manager

• Group exercise
• What you think are the attributes/qualities
  required to be an effective project manager?

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Attributes of an effective project manager
typically are

• Excellent time management skills
• Can do proactive attitude
• Adaptable, flexible.
• Fair respecting different peoples viewpoints
• Committed to the team and the projects goals
• Decisive and realistic
• Excellent communication skills
• Leadership
• Assertiveness

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Attributes of an effective project manager
typically are

• Be prepared to roll up their sleeves and get
  their hands dirty
• Foresight
• Planning skills
• Knowledge of the subject / area of work
• Be prepared to walk, if necessary i.e. leave!
• A sense of humour ?

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A Sample Project Organization
Figure 3.2
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Matrix Organization
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Project Controlling

• Close monitoring of resources, costs, quality,
  budgets
• Feedback enables revising the project plan and
  shift resources
• Computerized tools produce extensive reports

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Work Breakdown Structure (WBS)
Organizes project into major components during
planning phase of project.
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Work Breakdown Structure (WBS)
Figure 3.3
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Project Management TechniquesDuring Scheduling
phases of project

• Gantt chart
• Critical Path Method (CPM)
• Program Evaluation and Review Technique (PERT)

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Gannt Chart

• A Gantt chart is a horizontal bar chart developed
  as a production control tool in 1917
• Typically created in Microsoft Project, Excel
• Provides a graphical illustration of a schedule
  that helps to
• plan
• coordinate
• track specific tasks in a project

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A Simple Gantt Chart
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Sample Gannt Chart, (contd)
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Service For a Delta Jet
Figure 3.4
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Project Control Reports

• Detailed cost breakdowns for each task
• Total program labor curves
• Cost distribution tables
• Functional cost and hour summaries
• Raw materials and expenditure forecasts
• Variance reports
• Time analysis reports
• Work status reports

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Determining the Project Schedule
Perform a Critical Path Analysis

• The critical path is the longest path through the
  network
• The critical path is the shortest time in which
  the project can be completed
• Any delay in critical path activities delays the
  project
• Critical path activities have no slack time

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• Methods for identifying Critical Path
• Identify every path through the network and the
  time to complete each path. Critical path is the
  longest path.
• Identify the sequence of activities with zero
  slack time. Path with zero slack time is
  Critical path.
• Slack time is the amount of delay that could be
  tolerated in the starting time or completion time
  of an activity without causing a delay in the
  completion of the project

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Video 2 Project Management at Arnold Palmer
Hostpital (921))
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CostTime Trade-Offs and Project Crashing

• It is not uncommon to face the following
  situations

• The project is behind schedule
• The completion time has been moved forward

Shortening the duration of the project is called
project crashing
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Factors to Consider When Crashing a Project

• The amount by which an activity is crashed is, in
  fact, permissible
• Taken together, the shortened activity durations
  will enable us to finish the project by the due
  date
• The total cost of crashing is as small as possible

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Steps in Project Crashing

1. If there is only one critical path, then select
   the activity on this critical path that (a) can
   still be crashed, and (b) has the smallest crash
   cost per period. If there is more than one
   critical path, then select one activity from each
   critical path such that (a) each selected
   activity can still be crashed, and (b) the total
   crash cost of all selected activities is the
   smallest. Note that the same activity may be
   common to more than one critical path.

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Types of Project Management Software How do
we control projects?

• There are several popular packages for managing
  projects
• Primavera
• MacProject
• MindView
• HP Project
• Fast Track
• Microsoft Project

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Using Microsoft Project
Program 3.1
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Using Microsoft Project
Program 3.2
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Using Microsoft Project
Pollution Project Percentage Completed on Aug. 12 Pollution Project Percentage Completed on Aug. 12
ACTIVITY COMPLETED
A 100
B 100
C 100
D 10
E 20
F 20
G 0
H 0
Program 3.3
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ANY QUESTIONS?