Project Management

profileRjyadav@890
Chapter21.ppt
Home>Information Systems homework help>Project Management

Chapter Two

Project Management Growth: Concepts and Definitions

When to Use Project Management

  • Are the jobs complex?
  • Are there dynamic environmental considerations?
  • Are the constraints tight?
  • Are there several activities to be integrated?
  • Are there several functional boundaries to be crossed?

The Need For Restructuring

  • Accomplish tasks that could not be effectively handled by the traditional structure
  • Accomplish onetime activities with minimum disruption to routine business

Restructuring Problems

  • Project priorities and competition for talent may interrupt the stability of the organization and interfere with its long-range interests by upsetting the normal business of the functional organization.
  • Long-range planning may suffer as the company gets more involved in meeting schedules and fulfilling the requirements of temporary projects.

Restructuring Problems
(Continued)

  • Shifting people from the project to project may disrupt the training of new employees and specialists. This may hinder their growth and development within their fields of specialization.

Imperatives

  • The time span between project initiation and completion appears to be increasing.
  • The capital committed to the project prior to the use of the end item appears to be increasing.
  • As technology increases, the commitment of time and money appears to become inflexible.

Imperatives (Continued)

  • Technology requires more and more specialized manpower.
  • The inevitable counterpart of specialization is organization.
  • The above five “imperatives” identify the necessity for more effective planning, scheduling, and control.

Obstacles

  • Unstable economy
  • Shortages
  • Soaring costs
  • Increased complexity
  • Heightened competition
  • Technological changes
  • Societal Concerns

Obstacles (Continued)

  • Consumerism
  • Ecology
  • Quality of work

Results of NOT Controlling Obstacles

  • Decreased Profits
  • Increased manpower needs
  • Cost overruns, schedule delays, and penalty occurring earlier and earlier
  • An inability to cope with new technology
  • R&D results too late to benefit existing product lines
  • Temptation to make hasty decisions that prove to be costly

Results of NOT Controlling Obstacles (Continued)

  • Management insisting on earlier and greater return on investment
  • Greater difficulty in establishing on-target objectives in real time
  • Problems in relating cost to technical performance and scheduling during the execution of the project

Project Management Growth

  • Technology increasing at an astounding rate
  • More money invested in R&D
  • More information available
  • Shortening of project life cycles

Early Reasons For Failure

  • There was no need for project management.
  • Employees were not informed about how project management should work.
  • Executives did not select the appropriate projects or project managers for the first few projects.

Early Reasons for Failure
(Continued)

  • There was no attempt to explain the effect of the project management organizational structure on the wage and salary administration program.
  • Employees were not convinced that executives were in total support of the change (to project management).

Integrative Responsibility

  • Total accountability assumed by a single person
  • Project rather than functional dedication
  • A requirement for coordination across functional interfaces
  • Proper utilization of integral planning and control

Advantages

  • Easy adaptation to an ever-changing environment
  • Ability to handle a multidisciplinary activity within a specified period of time
  • Horizontal as well as vertical work flow
  • Better orientation toward customer problems
  • Easier identification of activity responsibilities
  • A multidisciplinary decision-making process
  • Innovation in organizational design

Project Management Evolution

  • Biblical Project Management
  • Military Project Management
  • Space Exploration
  • Heavy Construction
  • Other

Life Cycle Phases for Project Management Maturity

Line
Management
Acceptance

Growth

Maturity

Embryonic

Executive
Management
Acceptance

Executive
Management
Acceptance

Line
Management
Acceptance

Growth

Maturity

Life Cycle Phases for Level 2
Project Management Maturity

Embryonic

  • Recognize need
  • Recognize benefits
  • Recognize applications
  • Recognize what must be done

Embryonic

Executive
Management
Acceptance

Line
Management
Acceptance

Growth

Maturity

Life Cycle Phases for Level 2
Project Management Maturity

Executive

  • Visible executive support
  • Executive understanding of project management
  • Project sponsorship
  • Willingness to change way of doing business

Management Acceptance

Embryonic

Executive
Management
Acceptance

Growth

Maturity

Life Cycle Phases for Level 2
Project Management Maturity

Line Management
Acceptance

  • Line management support
  • Line management
    commitment
  • Line management education
  • Willingness to release employees for project management training

Embryonic

Executive
Management
Acceptance

Line
Management
Acceptance

Growth

Maturity

Life Cycle Phases for Level 2
Project Management Maturity

Growth

  • Development of a methodology
  • Use of life cycle phases
  • Commitment to planning
  • Minimization of “creeping scope”
  • Selection of a project tracking system

Embryonic

Executive
Management
Acceptance

Line
Management
Acceptance

Growth

Maturity

Life Cycle Phases for Level 2
Project Management Maturity

Maturity

  • Development of a management cost/ schedule control system
  • Integrating cost and schedule control
  • Developing an educational program to enhance project management skills

Driving Forces for Maturity

  • Capital projects
  • Customer expectations
  • Competitiveness
  • Executive understanding
  • New product development
  • Efficiency and effectiveness

The Components of Survival

Efficiency and
Effectiveness

New Product
Development

Executive
Understanding

Capital
Projects

Customer
Expectations

Competitiveness

SURVIVAL

Internal

Efficiencies &

Effectiveness

Fast

Slow

Speed of Maturity

The Speed of Maturity

Customer

Expectations

Competitiveness

Project-Driven

Organizations

Non-Project-Driven

and Hybrid

Organizations

Benefits Of Project Mgt.

  • Project management will require more people and add to the overhead costs.

  • Profitability may decrease.
  • Project management allows us to accomplish more work in less time and with less people.

  • Profitability will increase.

Present View

Past View

Benefits Of Project Mgt.

  • Project management will increase the amount of scope changes.

  • Project management creates organizational instability and increases conflicts.
  • Project management will provide better control of scope changes.

  • Project management makes the organization more efficient and effective.

Present View

Past View

Benefits Of Project Mgt.

  • Project management is really “eye wash” for the customer’s benefit.

  • Project management will create problems.
  • Project management will allow us to work closer with our customers.

  • Project management provides a means for problem solving.

Present View

Past View

Benefits Of Project Mgt.

  • Only large projects need project management.

  • Project management will increase quality problems.
  • All projects will benefit from project management.

  • Project management increases quality.

Present View

Past View

Benefits Of Project Mgt.

  • Project management will create power and authority problems.

  • Project management focuses on suboptimization by looking at only the project.
  • Project management will reduce the majority of the power struggles.

  • Project management allows people to make good company decisions.

Present View

Past View

Benefits Of Project Mgt.

  • Project management delivers products to a customer.

  • The cost of project management may make us noncompetitive.
  • Project management delivers solutions to a customer.

  • Project management will increase our business.

Present View

Past View

$

?

Time

Project Management Costs Versus Benefits

Additional
Profits from
Better Project
Management

Pegged

Cost of Project Management

Project -Driven

Industry Classification
(By Project Management Utilization)

  • PM has P&L responsibility
  • PM is a recognized profession
  • Multiple career paths
  • Income comes from projects

Hybrid

  • Production driven but with many projects
  • Emphasis on new product develop.
  • Short product life cycles
  • Marketing-orient.
  • Need for rapid develop. process

Program Management

  • Very few projects
  • Profitability from production
  • Large brick walls
  • Long life cycle products

Product Management

Present

Past

Project
Management

Non-

Project-Driven

From Hybrid to Project-Driven

  • Entrance via project-driven divisions such as MIS and R&D

  • Entrance via marketing, sales, engineering and R&D

Traditional Project

Management

Modern Project

Management

1960 -1990 Hybrid

1990 -Present Hybrid

Recessionary Effects

Recession

Layoffs

R&D

Training

Solutions
Sought

Results of the
Recessions

1979-1983

Blue
Collar

Eliminated

Eliminated

Short-
Term

  • Return to status quo
  • No project management support
  • No allies for
    project management

  • Change way of doing
    business
  • Risk management
  • Examine lessons
    learned

1989-1993

White
Collar

Focused

Focused

Long-
Term

Characteristics

New Processes Supporting Project Management

1960-
1985

1985

1990

1991-
1992

1993

1994

No
Allies

Total
Quality
Manage-
ment

Concurrent
Engineer-
ing

Empower-
ment and
Self-
Directed
Teams

Re-
Engineering

Life
Cycle
Costing

Increasing Support

New Processes Supporting Project Management (Continued)

1995

1996

1997-

1998

1999

2000

Scope

Change

Control

Risk

Management

Project

Offices

And

COEs

Co-
Located

Teams

Multi-

National

Teams

Increasing Support

New Processes Supporting Project Management (Continued)

2001

2002

2003

2004

2005

Maturity

Models

Strategic

Planning

For

Project

Management

Intranet

Status

Reports

Capacity

Planning

Models

Six Sigma Project Mgt

Increasing Support

New Processes Supporting Project Management (Continued)

2006

2007

2008

2009

Virtual Project Teams

Lean

Project Teams

Best

Practice

Libraries

Capacity

Planning

Models

Increasing Support

Definitions: Systems

  • Air Force

A composite of equipment, skills, and techniques capable of performing and/or supporting an operational role. A complete system includes related facilities, equipment, material services, and personnel required for its operation to the degree that it can be considered as a self- sufficient unit in its intended operational and/or support environment.

Definitions: Systems (continued)

  • NASA

One of the principal functioning entities comprising the project hardware within a project or program. The meaning may vary to suit a particular project or program area. Ordinarily, a “system” is the first major subdivision of project work (spacecraft systems, launch vehicle systems).

Definitions: Programs

  • Air Force

The integrated, time-phased tasks necessary to accomplish a particular purpose.

  • NASA

A relative series of undertakings that continue over a period of time (normally years) and that are designed to accomplish a broad, scientific or technological goal in the NASA long-range plan (lunar and planetary exploration, manned spacecraft systems).

Definitions: Projects

  • NASA/Air Force

A project is within a program as an undertaking with a scheduled beginning and end, and which normally involves some primary purpose.

KINDS OF PROJECTS

Once a group of tasks is selected and considered to be a project the next step is to define the kinds of projects encountered. There are four categories of projects:

INDIVIDUAL PROJECTS

Short-duration projects normally assigned to a single individual who may be acting as a project manager and/or a functional manager.

STAFF PROJECTS

These projects that can be accomplished by one organizational unit, say a department. Staff (or a task force) is developed from each section involved. This works best when one functional unit is involved.

SPECIAL PROJECTS

Very often special projects occur which require that certain primary functions and/or authority be assigned temporarily to other individuals or unit. These works best for short-duration projects. Long-term projects can lead to severe conflicts.

MATRIX OR AGGREGATE PROJECTS

These projects require specific (or specialized) input from a large number of functional (or business) units and usually control vast resources.

Failures

Projects

Time

Successes

MATURITY

EXCELLENCE

2 YEARS

5 YEARS

Successes Vs. Failures

Evolution of Policies,
Procedures and Guidelines

1970s

Early 1980s

Mid 1980s

Late 1980s

1990s

Project

Management

with Concurrent

Engineering

CONVENTIONAL PROJECT MANAGEMENT

Life
Cycle
Phases

Policy and
Procedure
Manuals

Guidelines
per
Life Cycle
Phase

General
Project
Guidelines

Checklists
with
Periodic
Review
Points

Magnitude of Documentation

LEGEND

DEFINITION OF A PROJECT LIFE CYCLE

Resources

Utilized

RESOURCES

TIME

CONCEPTUAL

PHASE

DETAILED
PLANNING PHASE

FEASIBILITY AND

PRELIMINARY
PLANNING PHASE

IMPLEMENTATION

PHASE

CONVERSION

OR TERMINATION
PHASE

PMO

PMO *

Success: Point Or Cube?

Cost

Time

Quality

(or scope)

The Definition Of Success

Success

  • Definition of Success

Primary Factors

Within Time

Within Cost

Within Quality

Accepted by The Customer

Success

Secondary Factors:

Customer Reference

Follow-on Work

Financial Success

Technical Superiority

Strategic Alignment

Regulatory Agency Relations

Health and Safety

Environmental Protection

Corporate Reputation

Employee Alignment

Ethical conduct

Success

  • Critical Success Factors (CSFs) [Focuses on the Deliverables]

  • Key Performance Indicators (KPIs) [Focuses on the Execution Metrics of the Process]

Key Performance Indicators

These are shared learning topics which allow us to maximize what we do right and correct what we do wrong.

None

Components of Failure

A

Perceived
Failure

Actual

Planned

Perfection

Achievable

B

C

D

Actual Failure

Planning
Failure

E

Accomplishment

None

Components of Failure

A

Perceived Failure

Actual

Planned

Perfection

Achievable

B

C

D

Actual
Failure

Planning
Failure

Accomplishment

Poor Risk Management

Risk Planning

Technical
Inability

Customer Expectations

Actual Performance

Performance

Time

Mitigation Strategies Available

Opportunities for Tradeoffs
Resulting from Risk Analyses

Numerous

Limited

Project
Objectives

Project
Planning

Schedule Risk
Assessment

Financial Risk
Assessment

Technical Risk
Assessment
and Forecasting

Market Risk
Assessment
and Forecasting

Project
Execution

Technical
Strategy

Product/Market
Strategy

The starting point in the development of any project management methodology is the implementation of a stage-gate process.

Stages

  • Groups of series or parallel activities (based upon the risks of the project)

  • Managed by cross-functional teams

  • To reach a predetermined deliverable established by management

Gates

  • Structured decision points at the end of each stage

  • Number of gates must be limited

Gatekeepers

  • Individuals (i.e. sponsors) or groups of individuals assigned by senior management
  • Empowered to enforce the structured process (including change management)
  • Authorized to evaluate performance and make decisions
  • And willing to provide the team necessary technical and business information

Gatekeeper’s decisions

  • Proceed to next gate with the original objectives
  • Proceed to the next gate with revised objectives
  • Delay making a gate decision until further information is obtained
  • Terminate the project

Stage-Gate Failures

  • Assigning gatekeepers and not empowering them to make decisions
  • Assigning gatekeepers who are afraid to terminate a project
  • Failure to provide the team with information critical to gate reviews
  • Allowing the team to focus more on the gates than on the stages

Methodology Inputs

Project
Management
Methodology

Organization

Work
(Tasks)

Tools

People

Low

Neutral

High

Resistance to Change

Finance

H.R.

Eng.

I.T.

Sales

Marketing

Procurement

Manu.

R&D

Change Process

Support for Change

Time

Denial

Resistance

Exploration

Resistance

Support

Types of Cultures

  • Cooperative

  • Non-cooperative

  • Isolated (large companies)

  • Fragmented (multinational)

Integrated Processes for
The 21st Century

Project Management

Concurrent

Engineering

Total Quality

Management

Risk

Management

Change

Management

Yrs: 1990-2000

Integrated Processes
(Past, Present, and Future)

  • Project management
  • Total quality management
  • Concurrent engineering
  • Scope change management
  • Risk management

Yrs: 2000-2010

  • Supply chain management
  • Business processes
  • Feasibility studies
  • Cost-benefit analyses (ROI)
  • Capital budgeting

Current

Integrated

Processes

Integrated

Processes

Integrated

Processes

Multi-project Management

  • Are the project objectives the same?

For the good of the project?

For the good of the company?

  • Is there a distinction between large and small projects?
  • How do we handle conflicting priorities?

Critical versus critical projects

Critical versus non-critical projects

Non-critical versus non-critical projects