Project Management
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Chapter13.pptProject Management: A Systems Approach To Planning, Scheduling and Controlling (11th Edition)
By
Harold Kerzner, Ph.D.
Chapter One
Overview
OVERVIEW OF PROJECT MANAGEMENT
TIME
COST
PERFORMANCE/TECHNOLOGY
RESOURCES
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Project Characteristics
- Have a specific objective (which may be unique or one-of-a-kind) to be completed within certain specifications
- Have defined start and end dates
- Have funding limits (if applicable)
- Consume human and nonhuman resources (i.e., money, people, equipment)
- Be multifunctional (cut across several functional lines)
Project Management
- Project Planning
- Definition of work requirements
- Definition of quantity and quality of work
- Definition of resources needed
- Project monitoring
Tracking progress
Comparing actual outcome to predicted outcome
Analyzing impact
Making adjustments
PROJECT MANAGEMENT IS THE ART OF CREATING THE ILLUSION THAT ANY OUTCOME IS THE RESULT OF A SERIES OF PREDETERMINED, DELIBERATE ACTS WHEN IN FACT IT WAS DUMB LUCK !
PM
LM
LM
LM
PM = Project Manager
APM = Assistant Project Manager
LM = Line or Functional Manager
APM
APM
SPONSOR
GM
Multiple Boss Reporting
WHY USE PROJECT MANAGEMENT ?
- Project Management and productivity are related!
MATURITY IN PROJECT MANAGEMENT IS LIKE A THREE - LEGGED STOOL.
THE LEGS REPRESENT THE:
- Project Manager
- Line Manager(s)
- Executive Management (i.e... Project Sponsor)
Maturity cannot exist without stability
The Three-Legged Stool
Project
Manager
Line
Management
Management
Senior
(I.e. Sponsor)
TOP OF THE THREE - LEGGED STOOL
ORGANIZATIONAL
STRUCTURE
ORGANIZATIONAL
BEHAVIOR
TOOLS &
TECHNIQUES
- How important is Project Management training ?
- Part-time Project Management - is it good or bad ?
Critical Questions
Role Of The Project Manager
Negotiating For Resources
The Project Kickoff
Meeting
Establishing The Project’s Policies and Procedures
Laying Out The Project Workflow And Plan
Establishing Performance Targets
Obtaining Funding
Executing The Plan
Acting As The Conductor
Putting Out Fires
Counseling And Facilitation
Encouraging The Team To Focus On Deadlines
Monitoring Progress By “Pounding The Pavement”
Evaluating Performance
Develop Contingency Plans
Briefing The Project Sponsor
Briefing The Team
Briefing The Customer
Closing Out The Project
Why is a Project Management System Necessary?
Project Management
Time
Resources
Cost
Quality/Technology
Benefits
- Identification of functional responsibilities to ensure that all activities are accounted for, regardless of personnel turnover.
- Minimizing the need for continuous improvement
- Identification of time limits for scheduling
- Identification of a methodology for trade-off analysis
- Measurement of accomplishment against plans
Benefits (continued)
- Early identification of problems so that corrective action may follow
- Improved estimating capability for future planning
- Knowing when objectives cannot be met or will be exceeded
Obstacles
- Project complexity
- Customer’s special requirements and scope changes
- Organizational restructuring
- Project risks
- Changes in technology
- Forward planning and pricing
Humor
- Project management is the art of creating the illusion that any outcome is the result of a series of predetermined, deliberate acts when, in fact, it was dumb luck.
Classical Management
- Planning
- Organizing
- Staffing
- Controlling
- Directing
Which of the above is Usually NOT
performed by the project manager?
Resources
- Money
- Manpower
- Equipment
- Facilities
- Materials
- Information/technology
Successful Culture
- A good daily working relationship between the project manager and those line managers who directly assign resources to projects
- The ability of functional employees to report vertically to their line manager at the same time they report horizontally to one or more project managers
Interface Management
- Managing human interrelationships within the project team
- Managing human interrelationships between the project team and the functional organization
- Managing human interrelationships between the project team and senior management
- Managing human interrelationships between the project team and the customer’s organization, whether an internal or external organization
As part of interface management, the project manager’s role also includes integration management.
Integration Management
Capital
Materials
Equipment
Facilities
Information
Personnel
Resources
Inputs
Integration
Management
Products
Services
Profits
Outputs
Integrated
Processes
The Functional Role
- The functional manager has the responsibility to define how the task will be done and where the task will be done (i.e., the technical criteria)
- The functional manager has the responsibility to provide sufficient resources to accomplish the objective within the project’s constraints (i.e., who will get the job done).
Functional Obstacles
- Unlimited work requests (especially during competitive bidding)
- Predetermined deadlines
- All requests having a high priority
- Limited number of resources
- Limited availability of resources
- Unscheduled changes in the project plan
- Unpredicted lack of progress
Functional Obstacles (continued)
- Unpredicted lack of progress
- Unplanned absence of resources
- Unplanned breakdown of resources
- Unplanned loss of resources
- Unplanned turnover of personnel
Most projects also have a project sponsor which may or may not reside at the executive levels of management.
The Project Sponsor Interface
Priority Projects
Maintenance Projects
Project Team
Project
Manager
Project Manager
Project
Sponsor
- Objective Setting
- Up-Front Planning
- Project Organization
- Key Staffing
- Master Plan
- Policies
- Monitoring Execution
- Priority-Setting
- Conflict Resolution
- Executive-Client Contact
Relationship:
Project Sponsor:
Lower/Middle Management
Project Sponsor:
Senior Management
Project Necessities
- Complete task definitions
- Resource requirement definitions (and possibly skill levels needed)
- Major timetable milestones
- Definition of end-item quality and reliability requirements
- The basis for performance measurement
Results of Good Planning
- Assurance that functional units will understand their total responsibilities toward achieving project needs.
- Assurance that problems resulting from scheduling and allocation of critical resources are known beforehand.
- Early identification of problems that may jeopardize successful project completion so that effective corrective action and replanning can occur to prevent or resolve problems.
Promises Made???
- Promotion
- Grade
- Salary
- Bonus
- Overtime
- Responsibility
- Future work assignments
Project Management in Non-Project-Driven Groups
- Projects may be few and far between
- Not all projects have the same project management requirements, and therefore they cannot be managed identically. This difficulty results from poor understanding of project management and a reluctance of companies to invest in proper training.
- Executives do not have sufficient time to manage projects themselves, yet refuse to delegate authority.
Project Management in Non-Project-Driven Groups (Continued)
- Projects tend to be delayed because approvals most often follow the vertical chain of command. As a result, project work stays too long in functional departments.
- Because project staffing is on a “local” basis, only a portion of the organization understands project management and sees the system in action.
- There exists heavy dependence on subcontractors and outside agencies for project management expertise.
High-level Reporting
- The project manager is charged with getting results from the coordinated efforts of many functions. He should, therefore, report to the man who directs all those functions.
- The project manager must have adequate organizational status to do his job effectively.
- To get adequate and timely assistance in solving problems that inevitably appear in any important project, the project manager needs direct and specific access to an upper echelon of management
High-level Reporting (continued)
- The customer, particularly in a competitive environment, will be favorably impressed if his project manager reports to a high organizational echelon.
Low-level Reporting
- It is organizationally and operationally inefficient to have too many projects, especially small ones, diverting senior executives from more vital concerns.
- Although giving a small project a high place in the organization may create the illusion of executive attention, its real result is to foster executive neglect o f the project.
- Placing a junior project manager too high in the organization will alienate senior functional executives on whom he must rely for support.
DELEGATION
OF AUTHORITY TO
PROJECT MANAGER
EXECUTIVE
MEDDLING
LACK OF UNDERSTANDING OF HOW PROJECT
MANAGEMENT SHOULD WORK
LACK OF TRAINING IN COMMUNICATIONS /
INTERPERSONAL SKILLS
THE TIP-OF-THE-ICEBERG SYNDROME
MANY OF THE PROBLEMS ASSOCIATED WITH PROJECT MANAGEMENT WILL
SURFACE MUCH LATER IN THE PROJECT AND RESULT IN MUCH HIGHER COSTS
Project Vs. Functional Influences
Project Influence
in Decision-Making
Dual Influence
Functional
Organization
Matrix
Project
Organization
Relative Influence
Functional Influence
In Decision-Making
Organization
