Presentation on theme: "Project Management for Maximum Effectiveness"— Presentation transcript:
1Project Management for Maximum Effectiveness Ike C. Ehie Department of Management Kansas State UniversityPresented at the Leadership Institute, Kansas State University, Manhattan, Kansas July 20, 2010
2Agenda What is a project What is project management Project scope statementEffective tools for managing a projectProject planning and schedule –The Albion Sugar CompanyProject management in public sectorConclusion
3Project DefinitionA Project is a temporary endeavor undertaken to create a unique product or service.TemporaryUnique“Projects, rather than repetitive tasks, are now the basis for most value-added in business”-Tom Peters
4Project characteristics Endeavors of any size may be a projectLarge and small projects demand different handlingTemporaryDistinguishes project from processUniqueNot the same old thing
5Project ManagementManagement of the work involved in a project in terms of:Competing demands for scope, time, cost, risk, and qualityStakeholders with different needs and expectationsIdentified requirements
7Quadruple Constraints of Project Success BudgetClientAcceptanceSchedulePerformance
8Project Scope Statement A definition of the end result or mission of the project—a product or service for the client/customer—in specific, tangible, and measurable terms. Also called a statement of work (SOW)Purpose of the Scope StatementTo clearly define the deliverable(s) for the end user.To focus the project on successful completion of its goals.To be used by the project owner and participants as a planning tool and for measuring project success.
9Project Scope Checklist Objective/s – answers the questions of what, when, and how muchDeliverables – the expected outcomes/outputs over the life of the projectMilestones- a significant event in a project that occurs at a point in timeTechnical requirements - project specifications needed to meet a specified performanceLimits and exclusions – defines the boundary of the project by stating what is not included
10Exercise #1Describe a project that you have been involved with in the past one yearDefine the project scope statementObjective/s, deliverables, milestone, requirements & restrictionsDiscuss this with your partner
11Exercise #2 Think of the project you will undertake in the next year Define the project scope statementDiscuss your project scope statement with your partner
12Why are Projects Important? 1. Budgeting 2. Staff allocation 3. Schedule development 4. Schedule credibility 5. Sanity retention 6. Increasingly complex and technical products 7. Emergence of global markets
13Project Life Cycles Fig 1.3 Project Life Cycle Stages Man Hours ConceptualizationPlanningExecutionTerminationFig 1.3 Project Life Cycle Stages
14Project Life CyclesConceptualization - the development of the initial goal and technical specifications.Planning – all detailed specifications, schedules, schematics, and plans are developedExecution – the actual “work” of the project is performedTermination – project is transferred to the customer, resources reassigned, project is closed out.
15Project Life Cycles and Their Effects Client InterestConceptualizationPlanningExecutionTerminationProject StakeResourcesCreativityUncertaintyFig 1.4
16Effective Project Management Tools Work Breakdown Structure (WBS)An hierarchical outline (map) that identifies the products and work elements involved in a projectDefines the relationship of the final deliverable (the project) to its subdeliverables, and in turn, their relationships to work packagesBest suited for design and build projects that have tangible outcomes rather than process-oriented projects
17How WBS Helps the Project Manager Facilitates evaluation of cost, time, and technical performance of the organization on a projectProvides management with information appropriate to each organizational levelHelps in the development of the organization breakdown structure (OBS), which assigns project responsibilities to organizational units and individualsHelps manage plan, schedule, and budgetDefines communication channels and assists in coordinating the various project elements
20Work Packages A Work Package Is the Lowest Level of the WBS. It is output-oriented in that it:Defines work (what)Identifies time to complete a work package (how long)Identifies a time-phased budget to complete a work package (cost)Identifies resources needed to complete a work package (how much)Identifies a single person responsible for units of work (who)
21Effective Project Management Tools Responsibility Matrix (RM)Also called a linear responsibility chartSummarizes the tasks to be accomplished and who is responsible for what on the projectLists project activities and participantsClarifies critical interfaces between units and individuals that need coordinationProvide an means for all participants to view their responsibilities and agree on their assignmentsClarifies the extent or type of authority that can be exercised by each participant
22Responsibility Matrix for a Market Research Project FIGURE 4.7
23Responsibility Matrix for the Conveyor Belt Project FIGURE 4.8
24Effective Project Management Tools Project Communication PlanWhat information needs to be collected?Who will receive information?What information methods will be used?What are the access restrictions?When will information be communicated?How will information be communicated?
27Effective Project Management Tools The Project NetworkA flow chart that graphically depicts the sequence, interdependencies, and start and finish times of the project job plan of activities that is the critical path through the networkProvides the basis for scheduling labor and equipmentProvides an estimate of the project’s durationProvides a basis for budgeting cash flowHighlights activities that are “critical” and should not be delayedHelp managers get and stay on plan
28Basic Rules to Follow in Developing Project Networks Networks typically flow from left to right.An activity cannot begin until all of its activities are complete.Arrows indicate precedence and flow and can cross over each other.Identify each activity with a unique number; this number must be greater than its predecessors.Looping is not allowed.Conditional statements are not allowed.Use common start and stop nodes.
29Koll Business Center—Complete Network FIGURE 6.4
30Determining Slack (or Float) The critical path is the network path(s) that has (have) the least slack in common.The critical path is the longest path and determines the completion of the projectFree Slack (or Float)The amount of time an activity can be delayed without delaying connected successor activitiesTotal SlackThe amount of time an activity can be delayed without delaying the entire project
31Sensitivity of a Network The likelihood the original critical path(s) will change once the project is initiated.Function of:The number of critical pathsThe amount of slack across near critical activities
32Rationale for Reducing Project Duration Time Is Money: Cost-Time TradeoffsReducing the time of a critical activity usually incurs additional direct costs.Cost-time solutions focus on reducing (crashing) activities on the critical path to shorten overall duration of the project.Reasons for imposed project duration dates:Customer requirements and contract commitmentsTime-to-market pressuresIncentive contracts (bonuses for early completion)Unforeseen delaysOverhead and goodwill costsPressure to move resources to other projects
33Managing Public Sector Projects Operating under overlapping and often conflicting set of rules and proceduresRules are in place to ensure consistent standard of behaviors and a project must adhere to those rulesThe political process inherently hands you a built-in adversity; other parties may not necessarily be interested in the success of the projectMore stakeholders to please with less authorityMay not have full control of the budgetProject scope can change with little or no notice
34Skills Needed for Managing Public Project Softer or people skillsConflict managementNegotiationDiplomacyManaging stakeholders expectationsEmotional maturityWith less authority, the key is to induce behaviors rather than order it