Advanced Project Management

1
Advanced Project Management

• Level 6

2
Session 1

• Managing and Leading Projects

3
Learning Outcomes

• At the end of this session candidates will be
  able to
• Explore the various definitions and
  characteristics of a project
• Analyse the difference between leadership and
  management relating to projects
• Explore why organisations in different sectors
  need to engage in projects and consider different
  types of project
• Evaluate the importance and relationship of
  project and people management in achieving
  project goals.
• Demonstrate an understanding of external business
  environmental factors and how they may affect a
  project.
• Critically evaluate the concept of power and
  influence.
• Identify the key stakeholders for a purchasing
  and logistics project and how their power and
  influence change throughout the life of the
  project.

4
Definitions of Project Management

• A set of activities with a defined start point
  and a defined end state, which pursues a defined
  goal and uses a defined set of resources. (Slack
  et al)
• ... A temporary endeavour undertaken to create a
  unique product or service. (US PMI)
• ... The process by which projects are defined,
  monitored, controlled delivered.....desired
  outcome......bring about change (APM)

5
Definitions

• Cips Study Guide
• a group of activities that have to be performed
  in a logical sequence to meet pre-set objectives
  outlined by client
• Meredith Mantel
• a specific, finite task to be accomplished......p
  roject seen as a unit....characteristics..importan
  ce, performance, lifecycle, interdependencies,
  uniqueness, resources and conflict
• What are key features? Group exercise

6
Distinctions between Leadership and Management

• Leadership is the lifting of a persons vision
  to higher sights, the raising of performance to a
  higher standard, the building of personality
  beyond its normal limitations.
• Nothing better prepares the ground for such
  leadership than a spirit of management that
  confirms in the day-to-day practices of the
  organisation strict principles of conduct and
  responsibility, high standards of performance and
  respect for the individual and his work.
• Drucker The Practice of Management

7
What do Managers Do?

• Plan
• Organise
• Coordinate
• Control
• Lead
• Fayol
• Is this mainly a shorter term focus?

• Establishing overall purpose or policy
• Forecasting and planning
• Organising and allocating work
• Giving instructions
• Checking performance
• Coordinating the work of others
• Buchanan

8
What do Leaders Do?

• Enable people and groups to achieve their
  objectives
• Set and communicate objectives
• Monitor performance and give feedback
• Establish basic values
• Clarify and solve problems for others
• Organise resources
• Longer term?

• Administer rewards and punishments
• Provide information, advice and expertise
• Provide social and emotional support
• Make decisions on behalf of others
• Represent the group to others
• Arbitrate in disputes
• Act as a father figure
• Become a scapegoat

9
Leader or Manager?

• Group exercise
• What do you see as the key differences between
  management leadership?
• Which skills are more important in project
  management?
• Recap Kotter p 11 effective v efficient?
• Also Mintzberg p 12

• 1

10
Reasons that Organisations Undertake Projects

• Change in
• The external environment
• Markets and customer needs
• Technology
• Products and services
• Processes
• Globalisation
• Impatient customers
• Increasing demand for unique and customised
  solutions
• Change within organisations initiated by senior
  managers
• Paired ex list examples for each point above
  own org. or alternative

11
Hard or Soft Projects

• Hard normally refer to tangible, measurable
  activities and processes
• Soft human factors and processes eg
  communication, behavioural change and acceptance
• Can you easily distinguish simply between these
  two aspects of project work
• Is Millau Bridge a hard project?

12
Hard vs Soft Projects

• Product development p8
• Process development eg BPR
• Re-design/modification of products and processes
• Technology development
• Installation of new IT systems example p9
  London Ambulance Service
• Site relocation/closure
• Culture change
• Introduction of a new organisational structure
• A new appraisal scheme
• How would you categorise each of these?

• Lysons categorisation of projects
• Manufacturing projects
• Construction projects
• Management projects
• Research projects
• Too simplistic?

13
Constituents of the Project Context

• PEST/SLEPT factors
• Porters 5 Forces analysis
• Stakeholders
• Resource constraints
• Time constraints
• Overall strategy of the organisation
• CIPS syllabus

• Complexity
• Completeness
• Competitiveness
• Customer focus
• Maylor

14
Common Stakeholder Expectations

• Fit for purpose
• Aesthetically pleasing
• Free from defects
• Delivered on time
• Value for money
• Reasonable running costs
• Satisfactory reliability/durability
• Supported by worthwhile guarantees
• Which stakeholders do each of above relate to?

15
Stakeholder Power/Interest Matrix
Level of interest
Low
High
Low
Keep informed
Minimal effort
Stakeholders are likely to move between segments
during the life of a project
Power
Keep satisfied
Key players
High
Source Mendelow, 1991
16
How do you keep stakeholders satisfied?

• Satisfaction perception expectation
• Manage their expectations
• Re projects may be necessary to sell the
  final outcome
• Ensure know actual requirements dont
  over-promise
• Keep advised of progress
• Spec exam paper Sportsco Q 1

17
Session 2

• Managing and Leading Projects

18
Learning Outcomes

• At the end of this session candidates will be
  able to
• Evaluate and explain the idea of the project as a
  conversion or transformation process.
• Explore the concept of variety and volume in
  defining the nature of an operation and evaluate
  its application to project management.
• Describe the role of a project selection

19
A Project is a Conversion Process
Input resources Materials Information Customers
Input resources
Output (product/ service)
The project (transformation process)
Input trans- forming resources Facilities Staff
20
Conversion Process
Inputs Transformed into Outputs Same as a
process? What other input resources do you need?
See p 30
21
Projects as a Technology
Volume
Low
High
Projects
High
Small batch
Variety
Large batch
Process plant
Low
22
The Project Model

• Constraints
• Financial
• Legal
• Ethical
• Environmental
• Logic
• Activation
• Time
• Quality
• Indirect effects

Output satisfied need
Input Want/need
Project

• Mechanisms
• people
• knowledge expertise
• capital
• tools techniques
• technology

23
Project Constraints
Group exercise Discuss examples and give reasons
why Maylor lists these factors - in previous
slide -as constraints in his ICOM model
24
Project Portfolio Process

• How many projects can an organisation handle?
• Identify projects that satisfy strategic needs
• They support multiple goals feasible?
• They drive organisational improvement why might
  these take priority?
• They enhance/enable key areas how determine?

25
Portfolio Process

• Prioritise candidate projects
• Limit active projects to a manageable level do
  you always have necessary resources?
• Identify risk-intensive efforts why?
• Balance short-, medium- and long-term returns
  why is this important?
• Prevent projects getting in the back door
  how/why might this happen?
• Meredith Mantel, 2005

26
Project Selection Factors - Issues to Consider

• Operations
• Interruptions, learning, process
• Marketing
• Customer management issues
• Financial
• Return on investment what is acceptable?
• Personnel
• Skills and training, working conditions what
  impact on employee motivation?
• Administrative
• Regulatory standards, strategic fit with
  what?
• Meredith Mantel, 2005

27
Strategic Success Factors

• Project mission clearly defined and agreed
  objectives
• Top management support top managers must get
  behind the project and make clear to all
  personnel at the outset their support
• Project action plan showing details of the
  required steps and resource requirements in the
  implementation process
• Group ex how would getting each of these
  factors wrong cause problems for an organisation?
  Can you think of any project failures
  attributable to any of these factors?
• Meredith Mantel, 2005

28
What Projects Have in Common

• An objective or objectives, usually defined in
  terms of quality, time and cost the iron
  triangle
• Each is unique a one-off always?
• Of a temporary nature what is temporary?
• A degree of complexity, stemming from multiple
  tasks and participants often the key challenge
• A degree of uncertainty, often technical
• NB. A programme implies greater longevity or
  continuity
• Spec Exam paper Q 3

29
Session 3

• The Project Life Cycle

30
Learning Outcomes

• At the end of this session candidates will be
  able to
• Consider different approaches to the project life
  cycle
• Identify the different stages of the project life
  cycle and the key characteristics, demands and
  problems most likely to be encountered at each
  stage
• Evaluate the concept of the project life cycle as
  a management tool
• Investigate a variety of problem-solving
  approaches and the extent to which they may be
  relevant during the project life cycle

31
Comparison of Characteristics of Projects and
Problems

• Projects
• A supported purpose/ importance
• Specifications of performance (form, fit,
  function)
• Known solution
• Stages with finite due date
• Interdependencies
• Uniqueness
• Resource requirements and tradeoffs
• Stakeholder conflict
• Meredith Mantel, 2005

• Problems
• Intransparency lack of clarity of situation
• Polytely multiple goals
• Complexity large numbers of items,
  interrelations and decisions
• Dynamism time considerations

32
Three-stage Project Life Cycle
Source Meredith Mantel, 2003, Wiley
33
Three Stage Life Cycle

• Why might work in project follow this guideline?
• Any examples? construction of new housing
  estate
• Consider time/effort impact fig 4.2 p 39
• Alternative patterns? See p 40
• Why is it important to know what is likely scale
  of progress? How identify in advance?
• Group ex look at p 42 relative importance of
  project objectives agree?

34
Four-stage Project Life Cycle
D1 Define the project
The brief
D2 Design the project process
Process product knowledge
The proposal/PID
D3 Deliver the project
D4 Develop the process
The outcomes
Source Maylor
35
Maylors Four-phase Approach
Phase Key issues Key questions
Define the project Organisational project strategy goal definition What is to be done? Why is it to be done?
Design the project process Modelling planning estimating resource analysis conflict resolution business case How will it be done? Who will be involved in each part? When can it start and finish?
Deliver the project Organisation control leadership decision-making problem-solving How should the project be managed?
Develop the process Assessment of process outcomes evaluation changes for the future How can the process be continually improved?
36
Developing a Project Strategy
Getting started
Moving forward
Bringing it in
Handing it on
Analysis Commitment Consultation
Preparation Feasibility trials
Doing the work Making the change
Handover Support Review
Source CIPS
37
4 Stage Models

• Group exercise
• Compare and contrast Maylors 4 stage model to
  Cips version on slide also use Cips version p
  45 table 4.4
• Are they effectively one and the same or are
  there genuine differences?

38
Five-stage Project Life Cycle
Stage 1
Define
Weiss Wysocki
Stage 2
Plan
Changes
Stage 3
Organise
Corrective action
Stage 4
Stage 5
Close Out
Control
39
5 Stage Models

• See also Frigenti and Comninos model p 45/6
• Tables 4.5 and 4.6 p 46 individual homework
  exercise critically evaluate these 2 models,
  recommending your preferred option for use in
  your organisation

40
McKinseys 7S Framework
Strategy
Structure
Systems
Shared purpose
Style/ culture
Staff
Skills
Source McKinsey 7S framework
41
The 7S Project Approach
Element Description
Strategy High-level requirements of the project and means to achieve them
Structure Organisational arrangements that will be used to carry out project
Systems Methods for work to be designed, monitored and controlled
Staff Selection, recruitment, management and leadership of those working on project
Skills Managerial and technical tools available to project manager and staff
Style/culture Underlying way of working and inter-relating within the project/organisation
Stakeholders Individuals and groups who have an interest in project process or outcome
Source 7S framework adapted by Maylor
42
7 S Framework

• This is a more strategic approach to Project
  management focuses upon strategic alignment and
  fit
• Considers organisations capabilities, capacity,
  priorities and strategic objectives.
• Does project fit or match these areas?
• Consider impact of project on other activities
  and areas of the organisation resources,
  culture etc

43
Problem Solving Techniques

• Maylor
• Thamhain Wilemon
• Thomas-Killman Conflict Resolution
• Brainstorming
• Ishikawa Fishbone Analysis
• Cause Effect Cause Analysis
• Decision Trees
• Pareto Analysis
• 5 Whys
• Lewins Force Field Analysis

44
Systematic Problem-solving Model
Problem identification
Select solution
Seek alternative definitions
Implement
Select definition
Check and amend
Evaluate possible solutions
Source Adapted from Maylor
45
Thamhain Wilemon

• What are main causes of conflict in projects?
• Group exercise prioritise from following-
• Cost, Personalities, Priorities, Procedures,
  Schedules, Staffing, Technical Problems
• At what stage will some be more significant than
  others use 4 stage approach formation, early
  implementation, main programme, closing.

46
Thomas-Killman Model

• 5 Approaches to conflict resolution
• Avoiding what? When use?
• Forcing what?
• Accommodating why?
• Compromising isnt this always the best way?
• Collaborating how does this work?
• Is it horses for course approach?

47
Brainstorming

• Purpose
• To generate a large number of ideas
• To stimulate creativity
• Technique
• The problem to be solved is described or stated
• Everyone participates, either in turn or simply
  by calling out in an orderly way
• A team member captures everything as said on
  paper/board
• No judgement or criticism of others suggestions
  the group accepts outrageous, unrelated ideas
• Ideas are developed by building on others ideas
• When there are no more ideas, the exercise is
  over
• What are difficulties of using this technique in
  work environment?

48
Ishikawa Fishbone Analysis

• Purpose
• To visually represent in specific categories the
  probable causes of a problem
• To help people visualise a problem and structure
  its analysis
• Process
• Identify the problem and place it in the
  Effect box.
• Trace the process through all stages to identify
  all possible contributory causes. Use the
  Brainstorming technique to consider all the
  possible causes that may result in the Effect.
• Group possible causes under headings (for
  example, the 4Ms Methods, Manpower, Materials,
  Machines or steps in the process being analysed).

49
Example of Fishbone Diagram
MACHINERY
MANPOWER
Insufficient space at locations
Incorrect quantity at location
Mixed or mis- placed stock
Incorrect tube pattern
Counting
EFFECT
Labelling on lowest rack
Error in item stock control
Poor quality staff training
Consecutive rack numbering
No stock stickers
Poor procedures
Loose components
Excessive movements
Uneven tube lengths
Loose end stops
Returns
METHODS
MATERIALS
50
Cause-effect-cause Analysis

• Purpose
• To overcome stagnation in solving problems that
  are complex and difficult to structure
• To identify the root cause of a problem
• Technique
• Best results emerge when a skilled facilitator is
  available
• State the problem and identify the effects
• Explore how the effects relate to one another
• Use why and how successively to explore
  causes of the observed effects
• Form a cause-effect diagram on which action can
  be taken see p 59/60

51
Decision Trees

• Purpose
• To identify likely outcomes and probabilities in
  a problem
• To calculate the expected value of possible
  outcomes
• Technique
• Identify the scope of the decision to be taken
• Identify sub-decision points
• Identify the outcomes and probabilities possible
  from each decision point
• Calculate the expected values for specific routes
  through the tree
• May 07 Exam paper Q 5

52
Session 4

• Contemporary Approaches to
• Managing Projects

53
Learning Outcomes

• At the end of this session candidates will be
  able to
• Explain the 6S approach and what it seeks to
  achieve
• Identify the eight key processes and requirements
  of PRINCE2 and evaluate the effectiveness of this
  approach to project management
• Analyse the key requirements of Critical Chain
  and explain how projects that use CCPM can
  achieve better results than other methods
• Explain concept of theory of constraints

54
Six Sigma

• A continuous improvement method Motorola, 1986
• Since applied and popularised by others, for
  example, GE and Honeywell
• Aim
• To profitably improve the quality of products and
  services to the customer
• Statistically, a defect rate 3.4 defects per
  million opportunities 99.9997 perfect
• Is this always appropriate?
• Requires major investment in time and resources

55
Six Sigma

• Key characteristics
• Focuses on the customer's critical-to-quality
  needs (CTQs) V.O.C.- what are they? How
  establish?
• Concentrates on measuring product quality and
  improving process engineering
• Gives top-down, project-driven process
  improvement and cost savings
• Is a business strategy execution system and so is
  truly cross-functional
• Provides focused training with verifiable ROI
• Is business results oriented
• Has 3 key component areas Process Improvement,
  Process Design (Redesign), Process Management

56
Process Improvement - DMAIC
Define
the project goals and customer deliverables
Measure
the process to determine current performance
Analyse
and determine the root causes of defects
Improve
the process by eliminating defects
Control
future process performance so that
improvements can be sustained
57
Process Design (Redesign) - DMADV

• Define Id and set goals
• Match/measure benchmark against customer
  needs/expectations
• Analyse performance measurements outline
  enhanced processes to meet customer needs
• Design/implement new processes in detail
• Verify controls to ensure compliance

58
Process Management

• Changes how organisation is structured and
  managed
• 4 Steps are -
• 1) Understanding processes and customer
  expectations
• 2) Continual measurement
• 3) Analysis of data
• 4) Responding to variances
• Is 6 Sigma a project management tool?

59
Benefits of Six Sigma

• Direct benefits
• decrease in defects
• reduced cycle time
• lower costs to provide goods and services.
• data-based decisions
• sustained gains and improvements
• better safety performance
• fewer customer complaints

• Indirect benefits
• improved customer relations and loyalty
• team-building
• effective supply chain management
• increased margins
• greater market share
• world-class standard
• development of staff skills

60
Statistical Basis of Six Sigma
61
Prince 2

• Originated by UK Gov in 1989 Prince 2 - 1996
• Designed for public sector I.T. Projects
• Now generic approach for all types of project
• 8 stage model see Fig 6.1 page 67 and note the
  8 inter-reacting stages plus external stage of
  Corporate Management goup ex read and evaluate

62
PRINCE2 (Projects In Controlled Environments)

• Key processes
• Directing the project
• Planning a project
• Starting up a project
• Initiating a project
• Controlling a stage
• Managing product delivery
• Managing the stage boundaries
• Closing a project

• Project management
• Project Board
• Project assurance
• Project support
• Project manager
• Documentation
• Quality log
• Issues log
• Risk log
• Bureaucratic controls
• Emphasis on early conflict resolution

63
Prince 2

• Group exercise
• What are advantages and criticisms re this
  approach?
• See p 69 agree with OGC claims?

64
Critical Chain

• Traditional project estimation techniques
  ineffective
• Time and resource constraints usually violated,
  for example,
• People have to multi-task see p 71
• General Uncertainties
• Departments include safety margins
• Parkinsons Law
• Goldratt pass on delays but not advances
• Student syndrome (last minute)
• So, PMs rely on padding of schedules and
  budgets to provide slack
• Unknown nature of event interaction
• Maylor, 2003, Meredith Mantel, 2005

65
Theory of Constraints Approach

• Project cannot move faster than slowest process
  convoy effect or weakest link
• Approach is to manage bottlenecks (constraints)
• Activities with several predecessors and/or
  successors
• Add time buffers at bottleneck events
• Safety stock has equivalent in manufacturing
• Just-in-case equivalent to JIT
• Statistically-derived path buffers
• Establish the critical chain for scarce resources
• Prioritise resources in chain events

Meredith Mantel, 2005 and Goldratts Theory of
Constraints
66
Constraints 2 see p 72/73

• Main stages of the TOC approach
• Identify the constraint (critical path/critical
  resources)
• Exploit the system constraint ie work it to its
  maximum capacity
• Subordinate everything to the constraints
• Elevate the constraint find additional
  resources for it
• Go back and find new constraints
• May Exam Case Study Q 1

67
Session 5

• Exploring the Stages of a Project

68
Learning Outcomes

• At the end of this session candidates will be
  able to
• Identify and explain key stages in a typical
  project.
• Explain the tasks during project initiation and
  definition
• Explain what is involved in developing a project
  plan and budget and in evaluating project risk
• Explain how a project might be structured and
  resources recruited, organised and allocated
• Identify key methods of measuring and controlling
  project performance and recommend an appropriate
  approach for a project
• Explain what is involved in the closure of a
  project
• Explain what is involved in the review and
  evaluation of a project and the learning stemming
  from it

69
Stages of a Typical Project

• Initiation and definition
• Planning
• Organisation and implementation
• Measurement, monitoring, control and improvement
• Closure
• Review, evaluation and learning
• Not directly comparable with earlier examples
  of life cycle models
• Lysons

70
Stage 1 Initiation and Definition
Whats involved Identifying project goals Listing project objectives Determining preliminary resources Identifying assumptions and risks
Tools techniques Financial appraisal Project initiation document (PID) Quality Function Deployment Risk analysis risk/impact matrix Suitability/feasibility/vulnerability Voice of the customer
71
Stage 1

• Needs to consider-
• Project selection sacred cow, operating
  necessity, competitive necessity, product line
  extension, comparative benefit what do these
  mean?
• Numerical selection methods unweighted factor
  (how many boxes does it tick), unweighted factor
  scoring ( what marks does it score in each box),
  weighted factor score (which boxes are more
  important)
• See P79 - discuss

72
Stage 1 - continued

• Scope/outcomes what is excluded?
• Timing
• Resources what types?
• What R.O.I? Resources. Cashflow
• Risk Impact how? Likelihood/impact
• V.O.C. remember 6 sigma

73
Stage 2 Project Planning
Whats involved Identifying activities Estimating time and cost Sequencing activities why important? Identifying critical activities Refining the plan Updating the initial risk analysis Writing the project proposal
Tools and techniques Project initiation document (PID) Work breakdown structure what/who/where/when Network diagrams and CPA QFD Risk analysis risk/impact matrix SIPOC see session 7
74
Stage 2

• What will be involved?
• Range and scope
• Sequence often critical why?
• Why written plan? How used? Project creep
• Timing Costs assess spending against likely
  achievements not time spent on activity why?
• Budgets top down/bottom up?
• Use of Critical path analysis significant
  aspect at this stage why?

75
Stage 3 Organisation and Implementation
Whats involved Determining personnel needs Recruiting the project manager Recruiting the project team Organising the team Assigning work packages
Tools and techniques Network diagrams and CPA Seven tools of quality control Problem-solving tools Risk analysis risk/impact matrix Team roles (Belbin)
76
Stage 3

• How project team is set up! How does existing
  organisational structure impact upon this?
• Group exercise - What attributes do we need on
  the team?
• Where do Belbin, Tuckman, Maylor models fit in
  this aspect of project management?
• Cross functional teamworking issues, problems

77
Stage 4 Measurement, Monitoring and Improvement
Whats involved Defining management style Establishing control tools Preparing status reports Reviewing the project schedule Issuing change orders
Tools techniques SIPOC Problem-solving tools Seven quality tools QFD
78
Stage 4

• Consider both Organisation Project Team
  Structure
• What is appropriate management style vary
  depending on project type/nature?
• How control project? which methods?
• Reporting process to whom?
• Deadlines key stages
• How/when review/evaluate progress?
• How communicate change?
• Important at this stage to refer back to original
  proposal why?

79
Stage 5 Closure of the project
Whats involved Obtaining client acceptance Installing deliverables Documenting the project Issuing the final report
Tools and techniques SIPOC Seven quality tools
80
Stage 5

• Have we met project aim?
• V.O.C.
• Implement project do it! Does it work?
• Why record the process used?
• Learning is crucial can be more important than
  project itself? Why?
• Report to who?
• Finality
• Team feedback
• Closure

81
Stage 6 Review, Evaluation and Learning
Whats involved Conducting a project audit Learning lessons (from successes and failures) Communicating the review, evaluation and learning
Tools and techniques SIPOC Seven quality tools (including cost of quality) Project review
82
Stage 6

• Audit process did we achieve success?
• Who audits? Internal? External?
• Audit only at end of project?
• Is on-going audit preferable? Why?
• What are problems/drawbacks re auditing?
• Learning Kolbs learning cycle
• Spec exam paper Q 4

83
Session 6

• Tools Techniques for Data Collection,
• Analysis and Decision Making

84
Learning Outcomes

• At the end of this session candidates will be
  able to
• Utilise a range of tools and techniques to assist
  in data collection, analysis and decision-making
• Appraise appropriateness, selection and
  implementation of the tools and techniques
  available to the project team

85
Project Management Tools

• Seven tools of quality control
• Financial appraisal
• Voice of the customer
• Quality function deployment
• Project initiation document (PID)
• Moments of truth
• Risk analysis and assessment (risk mitigation)
• Risk/Impact matrix
• Suitability/feasibility/vulnerability

86
Evaluating PM Tools and Techniques

• Appropriateness
• Show that you can pick the right tool for the
  task
• Selection
• Show that you are aware of the limitations, as
  well as its capabilities
• Implementation
• Show that you can use the tools correctly

87
Ishikawa 7 Tools of QC

• Flowcharts graphical depiction of process
• Check sheets simple log of occurrences of
  specific event/problem
• Pareto
• Fishbone diagram
• Histogram bar chart shows data in grouped
  frequency distribution
• Scatter diagram eg correlation between
  advertising spend and sales
• Statistical Process Control charts control
  limits re acceptable performance/tolerances

88
Risk Assessment

• What is the situation to be assessed?
• What can go wrong? (What are the hazards?)
• What is the probability that each hazard will
  occur?
• What are the consequences if it does go wrong?
• What is the uncertainty of our risk assessment?
• Summary probability, impact and uncertainty
• Recommendations

89
Risk vs Uncertainty

• Risk When the decision maker knows the
  probability of each and every state of nature and
  thus each and every outcome. An expected value
  of each alternative action can be determined
• Uncertainty When a decision maker has
  information that is not complete and therefore
  cannot determine the expected value of each
  alternative
• Meredith Mantel, 2005

90
Financial Appraisal

• Payback period time to recover initial
  investment through estimated cash inflows from
  the project
• Average rate of return (ARR) average annual
  profit average investment
• Discounted cash flow (DCF) present value method
  
• Internal rate of return (IRR) rate of return
  that equates present value of cash inflows and
  outflows
• Profitability index NPV of all future expected
  cash flows initial cash investments

91
Quality Function Deployment

• QFD VOC
• Final design/outcome customers needs
• See p 109/110 for worked example

92
Service Quality

• Dimensions of service quality
• Access
• Communication
• Competence
• Courtesy
• Credibility
• Reliability
• Responsiveness
• Security
• Understanding
• Tangibles
• Parusuruman, Zeithaml Berry

• Moment(s) of truth
• An interaction with a customer
• SAS in 1980s
• Average passenger was in contact with five SAS
  staff per trip
• Five million passenger journeys a year
• 25m opportunities a year to satisfy or dissatisfy
  customers

93
Risk/impact Matrix
Impact
Low
High
High
Tolerance threshold (depends on organisation)
Probability
Low
94
Session 7

• Systems and Processes in Project Management

95
Learning Outcomes

• At the end of this session candidates will be
  able to
• Demonstrate the approach of systems thinking and
  process focus using process mapping techniques
  and procedures
• Explain end-to-end processes
• Construct a flow chart for a process
• Explain the interfaces and swim lanes
• Explain the workings of critical chains software
  and its impact on projects
• Appraise appropriateness, selection and
  implementation of the systems and process
  techniques available to the project team

96
SIPOC Mapping
Process
Suppliers
Inputs
Outputs
Customers
97
Flow-charting Processes

• Purpose
• To describe the flow of a process
• Process
• Identify the process to be charted. It should
  have defined inputs and outputs and an owner.
• Define the start and end of the process with a
  circle or oval.
• Identify the major steps and represent each with
  a rectangle. Start the description of each step
  using a verb (doing word), for example, measure
  diameter, collect from stores.
• Show decisions as a diamond with no more than two
  outcomes (for example, yes and no)
• Represent the flow through the process with
  lines, using arrows where necessary for
  clarification, for example, up-arrow where flow
  returns to a previous step.

98
Work Breakdown Structure

• Lists tasks to be completed assigns
  responsibility for each task
• Cant eat an elephant
• Supported by Linear responsibility chart who
  owns task and where co-operation between depts
  or individuals is required
• Gantt Charts measures actual and planned
  progress quickly highlights overruns resource
  planner even out demand for resources

99
Interfaces and Swim Lanes

• Activities organised into channels each one
  representing the responsibilities of individual,
  dept or organisation
• Highlight processing gaps and inefficiencies
• Focus attention on high-risk areas where work is
  transferred between groups the interface
• See p 135

100
Critical Path Analysis

• Use Profex p 114 118
• Worked example
• Crashing the project
• Pert use of estimates of likely duration of
  activity, optimistic estimate and pessimistic
  estimate to calculate mean time and standard
  deviation re activity.
• Then use of probability statistics to estimate
  likelihood of over-runs
• Gert uses concept that some activities may fail
  need repeating use of statistics to estimate
  likely occurrence and costs of such events

101
Session 8

• Techniques for Purchasing and Logistics Projects

102
Learning Outcomes

• At the end of this session candidates will be
  able to
• Identify a range of purchasing and logistics
  projects
• Identify characteristics that differentiate these
  projects from projects in other functional areas
• Apply and appraise the usefulness of standard
  project management tools and techniques for
  purchasing and logistics projects
• Apply computerised project management systems for
  purchasing and logistics projects

103
Examples of P and S Projects

• Group exercise what projects are currently
  running in your org purchasing function?
• What is your involvement?
• What are key objectives?
• What are main difficulties and constraints?

104
Characteristics of P and S projects

• Specific
• Time Constrained
• Limited Resources
• Cost Reduction
• Product performance
• Overcoming reluctance to change by internal
  stakeholders
• Including int. Stakeholders in project getting
  their commitment
• Accessing variety of data internal external
• Securing significant added value for org.
• Develop good external relationships with
  suppliers

105
Managing P and S Projects

• Group exercise
• Applying concepts and models which of those
  examined so far do you use in your organisation?
• Applying tools and techniques which work best
  in your org?
• Applying software which do you use? How
  effective is it? What are advantages? See next
  slide

106
Software Systems

• Provide support in
• Tracking contracts
• Tracking responsibilities
• Tracking activities
• Communicating
• Integrating
• E-tendering

• Evaluation criteria
• The nature of the products
• Ownership of the code
• Stability of requirements
• Software maintenance and development

107
Software Systems

• Group exercise
• What are main benefits in using software packages
  for running projects?
• What are the disadvantages?

108
Session 9

• Key Factors in Successful Project Management

109
Learning Outcomes

• At the end of this session candidates will be
  able to
• Evaluate the elements of the iron triangle and
  their interdependency
• Contrast the iron triangle approach with the
  contingency and critical chains (crashing)
  approaches
• Analyse and identify process-based factors in the
  success and failure of purchasing and logistics
  projects
• Explain the requirements of effective project
  leadership
• Appraise the qualities and characteristics of a
  successful project manager
• Analyse and explain the characteristics and
  importance of teamwork in a project
• Analyse the extent to which people management and
  leadership issues contribute to success and
  failure in projects

110
The Iron Triangle
Quality

• Constituents of objectives
• Purpose
• End result
• Success criteria

Cost
Time
111
Iron Triangle

• Standard idea
• Simple concept
• Relatively simple factors to measure
• Relevant for all projects at least in part
• Need to clarify objectives of each clearly at
  outset
• Fundamental to negotiations
• However remember targets will probably change
  during project lifetime

112
Contingent Approaches - no one best way it
depends

• Developed during the 1990s to overcome weaknesses
  in the previous one best way approach
• Loose framework of approaches use most suitable
  for the circumstances
• Emphasise and cater for
• Strategic context of projects with their wide
  range of stakeholders
• Developments in technology
• New management methods, for example, virtual
  teams
• Development of more capable PM software

113
Contingency approach 2

• Project managers integrate
• Resources
• Knowledge
• Processes
• Means using one approach (or more) appropriate to
  the circumstances (contingencies)

114
Crashing Project Float

• Crashing is the process of reducing time spans
  on critical path activities so that the project
  is completed in less time
• Usually involves greater cost
• Overtime working
• Allocating additional resources
• Subcontracting
• Effect

Cost
Time
115
Responsibilities of a Project Manager

• Responsibility to the parent organisation
• Responsibility to the client
• Responsibility to the team members
• Above all, the PM must never allow senior
  management to be surprised
• Being prepared to give bad news
• Meredith Mantel, 2005

116
Key Activities of Project Managers

• Shaping goals and objectives project goal
  inevitably changes
• Obtaining resources easy?
• Building roles and structures for their team
  followers make their leader
• Establishing good communications
• Seeing the whole picture strategic vision
• Moving things forwards (especially in difficult
  circumstances) - driver

117
Role and Skills of the Project Manager

• Background and experience relevant to needs of
  project
• Leadership and strategic expertise for the big
  picture
• Technical expertise for sound decisions always?
• Interpersonal competence and people skills to
  champion, communicate, facilitate, motivate, and
  so on
• Proven managerial ability for getting things done
• Weiss Wysocki

118
Skills

• He who has not walked the road, does not know
  the potholes Confuscius
• Group exercise
• Agree with Confuscius?
• What other skills does project manager need?

119
Factors Affecting the Project Managers Role and
Style

• Nature of the task
• Organisational structure
• Organisational culture
• Individual motivations of the team members
• Style Cooperation ? Coercion
• Maylor

120
Four Roles for Project Managers

• Leadership the vision and style
• Motivation managing expectations and rewards
• Team building skills mix and cooperation
  between members
• Communication different aspects and different
  stakeholders

121
Project Teams

• Personality theories, for example, Belbin based
  on
• Intelligence (high/low)
• Dominance (high/low)
• Extraversion/introversion
• Stability/anxiety
• Team activities
• Content what the team does
• Process how the group works
• Task processes
• Maintenance processes
• Team dynamics
• Forming
• Storming
• Norming
• Performing
• Mourning

122
Project Teams

• Teams make projects succeed agree?
• Who is in team?
• Temporary?
• Cross functional
• Conditional
• Crisis?
• Virtual teams? core peripheral team members

123
Belbins Team Roles
Implementor Organising practical Inflexible
Coordinator Welcoming strong sense of objectives Ordinary intellect or creativity
Shaper Drive Prone to impatience and provocation
Plant Genius Up in the clouds
Resource investigator Knows a man who can Soon loses interest
Monitor evaluator Judgement critical reasoning Unimaginative not inspirational
Teamworker Promotes team spirit Indecisive
Completer/ Finisher Perfectionist Tends to worry about nothing
Specialist Technically specialised Uninterested outside own area
124
Dimensions of Project Success

• Efficiency meeting the budget and schedule
• Customer impact/satisfaction complex to define
  and evaluate what is their perception of
  success/failure? Does it match yours?
• Business/direct success delivering a result for
  the business
• Future potential again, somewhat difficult and
  nebulous to ascertain
• Meredith Mendel, 2005
• See also work of Westerveld Profex p180 para
  1.10

125
Critical Success Factors in Projects

• Clearly defined goals
• Competent project manager
• Top management support
• Competent project team members
• Sufficient resources allocated
• Adequate communications

• Control mechanisms
• Feedback capabilities
• Responsiveness to clients
• Troubleshooting mechanisms
• Project staff continuity
• See p 158 slight variance
• Pinto Slevin (1987) in
• Slack, Chambers Johnston

126
Critical Success Factors

• Westerveld
• Leadership Team
• Policy Strategy
• Stakeholder management
• Resources
• Contracting
• Project management itself scheduling, budgeting
  etc
• P180 para 1.11

127
Ten Ways Projects may Fail

1. Failure to appreciate the impact of a
   multi-project environment on single project
   success
2. Irrational promises made due to a failure to take
   into account the variable nature of task
   performance
3. Irrational promises made due to a failure to take
   into account the statistical nature of project
   networks
4. Insufficient identification of dependencies
5. Focus on, and active management of, only a
   portion of what should be the full project

• Reliance on due-date and wasting of any safety
  included in the project
• Wasting of resources through sub-optimal
  utilisation
• Wasting of the best resources through over-use,
  multi-tasking and burn-out
• Delivering original scope when conditions/needs
  change OR accepting changes to scope without
  sufficient impact analysis
• Multi-tasking
• Group ex what others can you add?

128
Project Failure

• Consider Greer p 159 table 11.4
• Do you agree with these?
• Are they more logical than those selected on
  previous page?

129
Session 10

• Project Management and Strategic Practice

130
Learning Outcomes

• At the end of this session candidates will be
  able to
• Critically evaluate the key characteristics of
  the various forms of organisation structure and
  culture and their consequences for project
  management
• Explain the key factors for consideration in
  choosing the best organisational structure for a
  project
• Critically evaluate the use and value to
  organisations of project management maturity
  models
• Evaluate the relationship between the business
  excellence model and the project management
  excellence model
• Understand and explain what is meant by knowledge
  management and organisational learning
• Demonstrate the strategic benefits and advantages
  gained through knowledge management and
  organisational learning
• Appraise the impact of a organisational learning
  on the management of projects in purchasing and
  logistics

131
The Functional Structure
The project

• Advantages
• The owning division should have the relevant
  expertise
• Specialists can share their knowledge and
  overtime expertise accumulates
• It provides a clear sense of ownership and
  ensures continuity

• Disadvantages
• It may engender a silo mentality. Other
  specialists may not be consulted
• Routine work may take precedence over the project
• Motivation may suffer if the project is perceived
  as a professional diversion

132
The Project Structure
Project A
Project B
Project C

• Advantages
• Manager has full authority over the project with
  senior management backing
• Grouping necessary resources in the project
  ensures rapid decision making
• Relevant expertise is drawn from other parts of
  the organisation
• The project team has a strong sense of identity
  and common purpose

• Disadvantages
• It is suitable only for larger projects as it is
  expensive to resource
• Isolationism can develop leading to an us and
  them culture
• Team members may lack technical expertise or
  understanding of user needs

133
The Matrix Structure
The project

• Advantages
• An individual project manager takes
  responsibility, usually with strong senior
  management support
• Relevant resources are allocated as required,
  giving flexibility as well as expertise

• Disadvantages
• Decision-making power may still reside outside
  the project team
• Members are likely to be working only part-time
  on the project and have at least two managers,
  which may cause anxiety
• There may be a high level of competition and
  in-fighting for resources

134
What is Organisational Culture?

• The deeper level of basic assumptions and
  beliefs that are shared by members of an
  organisation, that operate unconsciously and
  define in a basic taken-for-granted fashion an
  organisations view of itself and its
  environment
• E. Schein (quoted in Johnson Scholes)

135
A Typology of Culture
Type of culture Representation
Power A web spider power from the centre
Role A Greek temple columns highly defined structure large, hierarchical orgs
Task A net or matrix suit project/problem solving teams power from knowledge
People A cluster members superior to the org.
Source Handy, Understanding Organisations
136
Culture and Management Approaches
Characteristic of culture Impact on management style
Anglo-Saxon cultures Delegation a preferred managerial style
Highly centralised authority It is PMs responsibility to seek out information
International culture PM cannot count on being voluntarily informed of problems by subordinates
Highly structured social classes Participative management is difficult to practise there is an assumption that the more educated, higher-class managers authority will be denigrated by using a participative style
Highly structured social system The less direct managerial communication tends to be
Adapted from Meredith Mantel, 2005
137
Culture

• Group exercise
• Why is it important for a project manager to be
  aware of cultural issues within an organisation?

138
Organisational Readiness

• The organisation places a high value on serving
  customers
• The commitment of senior managers is long-lasting
• Key staff departments are positive about the
  prospect of change
• The organisation has the human resources needed
• The organisation had the financial resources
  needed
• The organisation as a whole recognises the need
  for fundamental change
• The organisation has none of the complacency and
  arrogance that often follows a sustained period
  of success
• The organisation is free of the scepticism,
  mistrust and ambivalence that often follows a
  period of change
• The organisations experience with TQM has
  created an environment that is receptive to
  change
• Hammer Stanton

139
Project Management Maturity Matrix
World-class
Wannabes
Improvers
Flat-liners
Flat-liners Little or no progress in project performance Mistakes repeated performance stays flat
Improvers Some improvement Performance improves slightly over time
Wannabes Follow every initiative going in order to catch the leaders
World-class performers Set ever-increasing standards of performance
140
Project Excellence

• Project excellence comprises cross-functional
  processes, project decision making, and team
  organisation that enable firms to bring
  high-quality products to market rapidly. Project
  excellence builds on functional excellence (that
  is, when a function has the necessary resources,
  along with standards, procedures, and tools, to
  be effective and efficient). Four major elements
  are required to deliver projects effectively.
  These elements include the people and processes
  involved in development project governance, a
  defined development process, project core teams,
  and the project decision process are the four
  elements.

141
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142
Project Excellence Model
Source Westerveld
Feedback
143
EFQM Business Excellence Model
Enablers
Results
Business Results (15)
People Management ( 9 )
People Satisfaction ( 9 )
Processes (14)
Leadership (10)
Customer Satisfaction ( 20 )
Policy Strategy ( 8 )
Resources ( 9 )
Impact on Society ( 6 )
144
Knowledge Creation and Management
Externalisation Articulating tacit knowledge
explicitly
Socialisation Sharing experiences
Tacit knowledge
Combination Building a knowledge system
Internalisation Learning by doing
Explicit knowledge
Tacit knowledge
Explicit knowledge
To
145
A Learning Organisation is

• Capable of benefiting from the variety of
  knowledge, experience and skills of individuals
  through a culture which encourages mutual
  questioning and challenge around a shared purpose
  or vision.
• Johnson Scholes

146
Characteristics of a Learning Organisation

• Existence of conflicting ideas and views
• Tolerance of failure
• Acceptance of ambiguity and uncertainty with
  their attendant risks
• Surfacing of assumptions and explicit debate
  widely within the organisation
• Tolerance of a diversity of views
• Tolerance of organisational slack

147
Using Learning and Discovery

• Start with a loose project approach built on
  many assumptions which are known
• Accept the risks associated with the
  uncertainties
• Track and review assumptions on a regular basis
• Modify the assumptions and activities in the
  light of experience
• Gradually learn what works and what doesnt