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General theory and history of Project Management March 1 st 2010 Yvet van ‘t Hof Bart Vermeeren & Adien Huisman Marien Roorda.

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Presentation on theme: "General theory and history of Project Management March 1 st 2010 Yvet van ‘t Hof Bart Vermeeren & Adien Huisman Marien Roorda."— Presentation transcript:

1 General theory and history of Project Management March 1 st 2010 Yvet van ‘t Hof Bart Vermeeren & Adien Huisman Marien Roorda

2 Content -What is a project? -Definition of PM -History of PM -PM Process Groups -The iron triangle (scope) Break -The iron triangle (time & cost) -Project manager (case) -Project manager Break -Project vs. General Management -When to use PM? -Questionnaire Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

3 What is a project? “A project is a temporary endeavor undertaken to create a unique product, service or result” Project Management Institute -Temporary -Beginning, middle and end -Unique outcome -Unique deliverable, tangible or intangible -Something new, that has never been done before -Well defined scope -Project is supposed to achieve a specific deliverable with specific attributes at the end Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

4 Definition of PM “Project Management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements.” Project Management Institute “Project management is the planning, organizing, directing and controlling of company resources for a relatively short-term objective that has been established to complete specific goals and objectives.” Harold Kerzner Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

5 History of PM 40 years of great projects (1969 – 2009) Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

6 History of PM There have been projects and management since humans worked together to build for example a shelter -Until 1900, civil engineering projects were generally managed by creative architects and engineers -Since WW II, formal project management discipline has emerged -Since early 1950, apply PM tools and techniques for projects No official starting point Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

7 History of PM Four different time periods -Prior to 1958: Craft system to Human Relations Administration -Henry Gantt invented the Gantt chart -Job specification became basis of Work Breakdown Structure (WBS) -Manhattan Project (1942 – 1945) – 1979: Application of Management Science -Several project management tools are introduced (CPM / PERT / MRP) – 1994: Product center: Human Resources -PM software was available for PC to present: Creating a new environment -Internet was adopted Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

8 History of PM Henry GanttHenri Fayol -Born in American mechanical engineer and management consultant -Famous for developing the Gantt chart (1910) -Born in French mining engineer, director of mines and management theorist -Five primary functions of a manager Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

9 PM Process Groups The Project Wizards Guide Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

10 PM Process Groups Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM A process is a set of interrelated actions and activities that are performed to achieve a pre-specified set of products, results, or services

11 PM Process Groups Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

12 Project Life Cycle Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

13 PM Process Groups Initiating Process Group -Consists of the processes that facilitate the formal authorization to start a new project (or project phase) -Project description -Project manager will be selected Two PM processes -Develop a project charter -Develop project scope statement Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

14 PM Process Groups Planning Process Group -Is used to plan and manage a successful project -Output is a project management plan 21 PM processes, including -Scope planning & definition -Work Breakdown Structure (WBS) -Cost estimating -Activity definition -Risk management planning Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

15 PM Process Groups Executing Process Group -Consists of the processes used to complete the work defined to accomplish the requirements -Coordinating people -Integrating and performing activities Seven PM processes, including -Develop project team -Information distribution Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

16 PM Process Groups Monitoring and Controlling Process Group -Consist of those processes performed to observe project execution -Monitors and controls the entire project effort Twelve PM processes, including -Scope control -Manage project team -Risk monitoring and control Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

17 PM Process Groups Closing Process Group -Includes the processes used to formally terminate all activities of a project (or project phase) Two PM processes -Close project -Contract closure Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

18 Project Management NASA Project Management Challenge 2007 “When I think of excellence, I think of people more than things because only people can bring quality, excellence, perfection to the things that must work. It is in that light that we achieved the Apollo landings on the Moon.” George M. Low Former Deputy Administrator Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

19 Succeed a project In order for a project to be successful the project team must -Open communication -Keep stakeholders informed and involved, comply with requirements to meet stakeholders -Balance risk: technical, time, scope, cost, quality, recourses -Use a defined approach to adapt product specifications and plans  to meet project and product requirements -Select appropriate processes within the PM-process groups Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

20 Project Management Plan Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

21 The Iron Triangle Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

22 Scope - Project objectives - Project requirements - Project deliverables - Cost estimate factors Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

23 Work Breakdown Structure Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

24 Break After the break -The Iron Triangle (time & cost) -Project Manager Back in 15 minutes

25 Time Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

26 Cost Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

27 Project manager A day in the life: Construction project manager Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

28 Case Quantum Bank Quantum Bank is a regional bank In 1999, a Web site is launched for customers to check account balances and obtain information. Quantum would like to expand this website Stacey Thomas (vice president of information systems) needs to select a project manager Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

29 Case Quantum Bank Bill Fence -Joined in Graduated at a well-respected small private school -Degree in computer science -Ability to solve difficult technical problems -Ability to describe concepts in non-technical terms -Developed a Web site in Last project was on time and budget Andy Dover -Joined in Graduate at large public university -Promoted to senior operations analyst -Ability to step back from a problem -Highly motivated self starter -Good communication and organizational skills -Basic understanding of Internet Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

30 The role of a project manager -Responsible for coordinating and integrating activities across multiple, functional lines -The major responsibility is planning -Project manager must provide - Complete task definitions - Resource requirement definitions - Major timetable milestones - Definition of end-item quality -Risk management - Unknown unknowns will become known unknowns Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

31 The skills of a project manager -Communicative and interpersonal skills -Becoming familiar with operations of each line organization -General knowledge of the technology being used -Needs to be organized -Working well with a team Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

32 Project manager “You give me an individual who has good communicative skills and interpersonal skills, and I’ll give that individual a job. I can teach people the technology and give them technical experts to assist them in decision making. But I cannot teach somebody how to work with people.” Executive of computer manufacturer company Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

33 Interview Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM Project Manager

34 Summary of the Interview Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM -Project Manager at Sogeti -Current project at the AMC -Project manager: “Make sure the things are getting done.” -Project success: Defining the deliverables (scope), time and cost. Deal with risk management.

35 Break After the break -Project vs. General Management -When to use PM and when not -Questionnaire Back in 15 minutes

36 Project vs. General Management Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

37 When to use PM -To manage unique or rare activities, to deal with specific ad hoc problems and opportunities -To deal with rapid changing competitive or environmental conditions -To deal with new technologies -To deal with a task that is bigger than anything the organization is accustomed to handle Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

38 Specific uses of PM -Project Management for a company who wants to deliver it’s customers competitive products and services -Project Management to support an organization crisis management strategy -Project Management to support a company’s factory operations, who is dealing in very rapid changing technologies Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

39 When not to use PM -Highly standardized products, processes are routine -Decisions can be made within an organizational framework -The product or service technology is stable -The political, social, economic, technological, and competitive environments faced by the enterprise are stable -The organization is small as well as the projects Project – Definition – History – Process Groups – Iron Triangle – Project Manager – Vs. General Management - Use of PM

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41 Questionnaire 1.‘The Internet technology was adapted to become more efficient in monitoring and controlling aspects of projects’ True / False

42 Questionnaire 2. ‘Scope definition is one of the five process groups of the Project Management Process Groups’ True / False

43 Questionnaire 3. ‘Without defining a scope of a project, it is difficult to know were the project will end’ True / False

44 Questionnaire 4.‘Develop a project team is one of the processes in the initiating process group of the traditional approach’ True / False

45 Questionnaire 5. ‘The iron triangle contains conflicting elements’ True / False

46 Questionnaire 6.‘The project scope statement is one of the most important parts of the project scope’ True / False

47 Questionnaire 7. ‘The WBS contains an activity list’ True / False

48 Questionnaire 8. ‘Project requirements are a part of the project time management plan’ True / False

49 Questionnaire 9. ‘Project cost management gives an overview of the resources needed to complete the project activities’ True / False

50 Questionnaire 10. ‘A project manager must have authority as well as responsibility’ True / False

51 Questionnaire 11. ‘Social and organizational skills are the most important characteristics of a Project manager’ True / False

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