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PROJECT MANAGEMENT GROWTH: CONCEPT and DEFINITIONS

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Presentation on theme: "PROJECT MANAGEMENT GROWTH: CONCEPT and DEFINITIONS"— Presentation transcript:

1 PROJECT MANAGEMENT GROWTH: CONCEPT and DEFINITIONS
By : Wiji Nurastuti, MT

2 GENERAL SYSTEM MANAGEMENT
Organizational theory and management philosophies have undergone a dramatic change in recent years with the emergence of the project management approach to management. Because project management is an outgrowth of system management, it is only fitting that the underlying principles of general systems theory be described. General system theory implies the creation of a management technique that is able to cut across many organizational disclipines-finance, manufacturing, engineering, marketing and so on-while still carrying out the functions of management.

3 Project Management During the 1940s, line managers used the concept of over the fence management to manage projects. Project Management Between the middle and late 1960s, more executives began searching for new management techniques and organizational structures that could be quickly adapted to a changing environment. The table below and Figure 2-1 identify two major variables that executives consider with regard to organizational restructuring Type of industry Tasks Environment A B C D Simple Complex Dynamic Static

4 Continue Project Management 1960-1985
Almost all type C and most type D industries have project management-related structures. The key variable appears to be task complexity. In informal project management, just as the words imply, the projects were handled on an informal basis whereby the authority of the project manager was minimized. The following five questions help determine whether formal project management is necessary: Are the jobs complex? Are there dynamic environmental considerations Are the constrains tight? Are there several activities to be integrated? Are there several functional boundaries to be crossed?

5 FIGURE 2-1. Matrix Implementation scheme
DYNAMIC GREATER NEED FOR UNDERSTANDING HUMAN BEHAVIOR OPERATIONAL ENVIRONMENT TYPE OF TASK 1980S 1960S : TOTALLY PROJECT DRIVEN (INFORMAL PROJECT MGT.) 1970S STATIC SIMPLE COMPLEX FIGURE 2-1. Matrix Implementation scheme

6 PROJECT MANAGEMENT By the 1990s, companies had begun to realize that implementing project management was a necessity, not a choice. The question was not how to Implement project management, but how fast could it be done? There are six driving forces that lead executives to recognize the need for project management: Capital project Customer expectation

7 Table 2-1 Life Cycle Phases for Project Management Maturity
Embryonic Phase Executive Management Acceptance Phase Line Management Acceptance Growth Phase Maturity Phase Recognize need Recognize benefits Recognize applications Recognize what must be does Visible executive support Executive understanding of project management Project sponsorship Willingness to change way of doing business line management support Line management commitment Line management education Willingness to release employees for project management training use of life-cycle phases development of a project management methodology Commitment to planning Minimization of “creeping scope” Selection of a project tracking system development of a management cost/schedule control system Integrating cost and schedule control Developing an educational program to enhance project management skills

8 Project management can be used to help such companies remain competitive during periods of growth and to assist in determining capacity constrains. Because of the interrelatedness of these driving forces, some people contend that the only true driving forces is survival. This is illustrated in Figure 2-4. when the company recognizes that survival of the firm is at stake, the implementation of project management becomes easier

9 SURVIVAL Capital Efficiency and projects Effectiveness Customers’
Expectations Capital projects Competitiveness Executive Understanding New Product Development Efficiency and Effectiveness FIGURE 2-4. The components of survival. Source: Reprinted from H. Kerzner, In Search of Excellence in Projeck Manegement. New York: Wiley, 1998, p.51.

10 PROJECT MANAGEMENT GROWTH: CONCEPT AND DEFINITIONS
PM has P & L Responsibility PM is a recognized Profession Multiple career Paths Income comes from project Primarily production driven but with Many projects Emphasis on new Product development Marketing oriented Short product life Cycles Need for rapid development process Very few projects Profitability from Production Large brick walls Long life cycle Products Project Driven Project Management Hybrid Non- Project - Driven Program Product Present Past FIGURE 2-7. Industry Classification (by project management utilization)

11 Traditional Project Modern Project Management Management 1990 – 2003
1960 – 1990 Hybrid Traditional Project Modern Project Management Management 1990 – 2003 Entrance via project Driven divisions such as MIS and R&D Entrance via Marketing, engineering, and R&D FIGURE 2-8. From hybrid to project-Driven

12 SYSTEMS PROGRAMS, AND PROJECTS A DEFINITION
Business practitioners define a system as A group of elements, either human or nonhuman, that is organized and arranged in such a way that the elements can act as a whole toward achieving some common goal or objective. If a system is significantly dependent on other systems for its survival, then it is an extended systems.

13 Once a group of tasks is selected and considered to be a project, the next step is to define the kinds of project units. There are four categories of projects : Individual projects: these are short-duration project normally assigned to a single individual who may be acting as both a project manager and a functional manager Staff projects: these are project that can be accomplished by one organizational unit, say a department. Special projects: often special project occur that require certain primary functions and/or authority to be assigned temporarily to other individuals or units. Matrix or aggregate projects: these require input from a large number of functional units and usually control vast resources

14 PRODUCT VERSUS PROJECT MANAGEMENT: A DEFINITION
Project management and product management are similar, with one major exception: the project manager focused on the end date of this project, whereas the product manager is not willing to admit that this product line will ever end. The product manager wants his product to be as long lived and profitable as possible. Even when the demand for the product diminishes, the product manager will always look for spin-offs to keep his product alive. Figure 2-10 shows the relationship between project and product management

15 FIGURE 2-10. ORGANIZATIONAL CHART
VICE PRESIDENT GENERAL MANAGER RESEARCH SALES/ MARKETING NEW BUSINESS ONGOING MANU ENG FINANCE ADM PERS PRODUCTION ADMIN MARKET PLANNING A B C Z Y X PRODUCT MANAGERS PROJECT MANAGERS FIGURE ORGANIZATIONAL CHART

16 MATURITY AND EXCELLENCE : A DEFINITION
Maturity in project management is the implementation of a standard methodology and accompanying processes such that three exists a high likelihood of repeated successes. The definitions of excellence can be stated as Organizations excellence in project management are those that create the environment in which there exists a continuous stream of successfully managed project and where success is measured by what is in the best interest of both the company and the project.

17 Successes PROJECT MANAGEMENT GROWTH: CONCEPTS AND DEFINITIONS
Projects Failures MATURITY Successes EXCELLENCE 2 YEARS 5 YEARS TIME FIGURE The growth of excellence

18 CONVENTIONAL PROJECT MANAGEMENT
Life cycle phasese Policy and Procedure manuals Guidelines Per Life Cycle Phase General Project guideliness Checklists with Periodic review points 1970s CONVENTIONAL PROJECT MANAGEMENT PROJECT MANAGEMENT WITH CONCURRENT ENGINEERING EARLY 1980s Mid-1980s Late 1980s 1990s FIGURE Evolution of policies, procedures, and guidelines.

19 THE MANY FACES OF SUCCESS
Success is defined as a point on the time, cost, quality/performance grid. Typical KPIs include Use of the project management methodology Establishment of the control processes use of interim metrics Quality of interim metrics Quality of resources assigned versus planned for Client involvement

20 FORMAL PROJECT MANAGEMENT
HIGH INTENCITY CONFLICTS RESISTANCE TO MULTIPLE BOSS REPORTING RELIANCE ON POLICIES/ PROCEDURES INVISIBLE SPONSORS POWER/ AUTHORITY PROBLEMS CONTINUOUS MEETINGS POLICIES AND GUIDELINES PER LIFE CYCLE PHASE PER PROJECT CHECKLISTS FOR END-OF-PHASE-REVIEWS COMPETITION FOR RESOURCES CONSTANTLY CHANGING PRIORITIES POOR MOTIVATION PROTECTION MEMOS SCHEDUULE SLIPPAGES CREEPING SCOPE TRUST COMMUNI- CATION COOPERA TION TEAMWORK DEVELOP MENT OF A METHODO LOGY LIFE-CYCLE PHASES CORE SKILLS TRAINING FORMAL PROJECT MANAGEMENT INFORMAL PROJECT MANAGEMENT GENERAL MATURITY PATH CRITICAL ISSUES RELATIVE MAGNITUDO OF DOCUMENTATION

21 THE MANY FACES OF FAILURE
Failure is virtually assured since we have defined failure as unmet expectations. Perceived failure is the net sum of actual failure and planning failure. In figure 2-15, project management has planned a level of accomplishment © lower than what is achievable given project circumstances and resources (D). This is a classic under planning situation. Actual accomplishment (B), however, was less than planned.

22 FIGURE 2-15. Components of failure (pessimistic planning)
None A Actual Planned achievable Perfection B C D E Accomplishment Perceived Failure Actual Failure Planning failure FIGURE Components of failure (pessimistic planning) Perceived Failure

23 THE STAGE-GATE PROCESS
The four most common decisions are Proceed to the next gate based upon the original objectives. Proceed to the next gate based upon revised objectives Delay making a gate decision until further information is obtained Cancel the project

24 PROJECT LIFE CYCLE During the past few years, there has been at least partial agreement about the lifecycle phases of a product. They include: Research and development Market introduction Growth Maturity Deterioration Death

25 PROJECT MANAGEMENT METHODOLOGIES : A DEFINITION
Achieving project management excellent, or maturity, is more likely with a repetitive process that can be used on each and every project. This repetitive process is referred to as the project management methodology. Good methodologies integrate other processes into the project management methodology as shown in Figure 2-24

26 Figure 2-24 Integrated Processes for The twenty-first century

27 SYSTEMS THINKING The systems approach :
The system approach may be defined as a logical and disciplined process of problem solving. The word process indicates an active ongoing system that is fed by input from is parts. The systems approach : Forces review of the relationship of the various subsystems Is a dynamic process that integrates all activities into a meaningful total system. Systematically assembles and matches the parts of the system into a unified whole Seeks an optimal solution or strategy in solving a problem System thinking is vital for the success of a project. Project management system urgently need new ways of strategically viewing, questioning and analyzing project needs for alternative non technical and technical solutions. The ability to analyze the total project, rather than the individual parts, is essential for successful project management.

28 Referensi By : Kerzner, Harold, 2003
Referensi By : Kerzner, Harold, “Project Management : a systems approach to planning, scheduling and controlling”, John Willey & Sons

29 TERIMA KASIH


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