2 Definition of Project Management A project can be defined as a ‘non- repetitive activity’. This needs augmenting by other characteristics:it is goal oriented - it is being pursued with a particular end or goal in mind;it has a particular set of constraints - usually centred around time and resource;the output of the project is measurable;something has been changed through the project being carried out.
3 Project management includes planning, organising, directing and controlling activities in addition to motivating what are usually the most expensive resource on the project - the people.
4 Planning involves deciding what has to be done, when and by whom. The resources then need to be organised through activities such as procurement and recruitment.Directing their activities towards a coherent objective is a major management role.The activities also need controlling to ensure that they fit within the limits (e.g. financial) set for them.
6 Complexity of Projects The level of complexity is a function of:the number of people, departments, organisations and nations involved (the organisational complexity)the volume of resources involved, time, capital, processes (the resource complexity or scale)the level of innovation involved in the product or the project process (the technical complexity)
7 ScaleThe scale of projects can be further described using the following typology: is the projectstrategic,systems-based, oroperational?
8 Strategic Timescale 2 - 5 years Degree of change to customers high Likely complexity highEffects of project impact felt throughout organisation and beyondChange to customers/users of output change what is done
9 Systems Timescale 1 - 2 years Degree of change to customers medium Likely complexity mediumEffects of project impact limited to most parts of the organisationChange to customers/users of output change to the way that things are done
10 Operational Timescale up to 1 year Degree of change to customers low Likely complexity lowEffects of project impact limited to the function within which project undertakenChange to customers/users of output change who, where, when and means of doing something
11 e.g. Manufacturing (lighting fittings manufacturer) develop new productsimplement quality systemchange operating procedures on the shop-floor
12 e.g. Service (general hospital) add or remove facility (A&E department)contract out cleaning servicesfind new supplier for surgical supplies
13 e.g. Construction (housing developer) develop designs for a series of standard housesuse contractors rather than employees to manage projectscross-train decorators and plumbers
14 Project Management and Line Management At the head of each of the major functions within an organisation there will be functional or line managers. These managers have the responsibility for the people who work under them in their departments.The project manager may have a line management role as well, but is responsible for projects that may run across several functions.
16 Line management responsible for managing the status quo authority defined by management structureconsistent set of tasksresponsibility limited to their own functionworks in ‘permanent’ organisational structurestasks described as “maintenance’main task is optimisationsuccess determined by achievement of interim targetslimited set of variables
17 Project management responsible for overseeing change lines of authority ‘fuzzy’ever-changing set of tasksresponsibility for cross-functional activitiesoperates within structures which exist for the life of the projectpredominantly concerned with innovationmain task is the resolution of conflictsuccess determined by achievement of stated end-goalscontains intrinsic uncertainties
18 The split between tasks that can be considered as maintenance (maintaining the status quo) and innovation is changing.On the figure, the trend is for the line AB to move downwards - increasing the degree of innovation activities required from line managers.The result of this is a change in the role of line managers and a reduction in the difference in the roles of line and project managers.
20 The Traditional Organisation The line or functional organisation represents stability for employees.A standard organisation has an existing vertical communications system already in place.In a department there are existing budgeting and cost accounting controls in place.There is better technical control in line organisations.Line organisations are set up to handle routine and recurring tasks.
21 Failure Of Line Organisations In Projects Lack of Focus and AttentionInability to Cope with Different Project CharacteristicsFeelings of Being Used and ExploitedLack of Project Experience
22 So If a Separate Project Idea Is So Good, Why Not? So, the idea of separating project structures from the normal organisation is a good one.But, a company cannot operate for a prolonged period of time on projects alone.You need an infrastructure within the organisation to succeed in the long term.How to get benefits from both worlds-completing the projects done while keeping the organisation intact. Enter the matrix organisation.
23 Advantages Very good for project-oriented companies Ensures that people on projects are utilised (as otherwise they are returned to the pool)Project manager tends to be powerful in getting resourcesAccountability and tracking of projects improvedPossibility that people who move between projects can build skillsProvides formal structure for projects of medium to large sizeAbility to track what people are working on in projects
24 DisadvantagesGood people will be in heavy demand for projects; others, who are not so good, will sit in the unassigned pool.Difficult to assign control between project and tine managementLine managers tend to be weak.Projects with long lives tend to be confused with line organisations.Difficult to share resources between projectsMore difficult to have lessons and skills cross projects - less chance for organisation historyProject prospers and traditional organisation suffersMore difficult to anticipate resource needs and to staff for requirementsMore difficult to address small projects
25 Project Management will involve financial management - through the preparation of a financial case to meet the needs set out in the project brief;personnel management - the identification of skills required, the selection of staff, their motivation and welfare;operations management - there are often parts of a project that are repetitive in nature and so can be treated as individual operations;purchasing and logistics - the identification of material and service needs, suppliers, their selection and the management of the logistics (location and transport of materials);technical specialisms - e.g. new product development, engineering, programming, quality management;marketing - projects generated for both internal and external customers will need to have explicit statements of needs drawn up and then be ‘sold’ to the customer.
26 The Use of Project Management Consultants An integratorAn honesty-brokerA change-agentA knowledge providerA resource providerA checkerA trainer
27 Employing Consultants The first stage in employing consultants is to decide exactly what it is that they are being brought in to achieve. The evaluation of the suitability of one or other firm can be done through:membership of appropriate professional bodies;talking to previous clients;closely evaluating their capabilities;evaluating the costs for the job, in particular whether there is any financial incentive for them to finish the job in a given time, and whether their fee is linked to tangible benefits achieved from their work.
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