1. Project Management
MBA 570
Summer 2011

3. WHAT IS A PROJECT?

4. Definition
Project
a series of jobs usually directed toward some major output and requiring a significant period of time to perform

5. PMI Definition
“A temporary endeavor undertaken to create a unique product or service”
Project Management Institute, 2000

6. Factors Leading to the Increased Use of Project Management:
Compression of the product life cycle
Global competition
Knowledge explosion
Corporate downsizing
Increased customer focus
Small projects that represent
big problems

7. Why the emphasis on project management?
Many tasks do not fit neatly into business- as-usual.
Need to assign responsibility and authority for achievement of organizational goals.
Need to succeed and prosper!

8. Growth in PMP Certification
2,800

9. Characteristics of Projects
Unique
Specific Deliverable
Specific Due Date

10. Other Common Characteristics of Projects
Multidisciplinary
Conflict
Complex
Part of Programs

11. 1. Lack of Project Manager Authority
Why Some Projects Fail………
Five Reasons for Failure
1. Lack of Project Manager Authority
“I must be a mushroom. They keep me in the dark, feed me manure, and then they can me.”
2. Lack of team participation
“If workers were smart, they’d be managers. Why ask them anything? After all, I’m the boss.”
3. Bad reporting
“Reports are just useless paperwork and an irrelevant management requirement. I fill out the form and then forget the form.”

12. Why Some Projects Fail……… Continued
4. Lack of people skills
“I don’t thank people just for doing a good job. Doing a good job is what they get paid for.”
5. Unrealistic goals and schedules
“Your mission, should you decide to accept it…if caught or killed, the Secretary will disavow any knowledge…”

13. Three Reasons for Success
…..and Others Succeed
Three Reasons for Success
1. Committed teamwork
“If anything goes bad, I did it. If anything goes semi-good, then we did it. If anything goes real good, then you did it. That’s all it takes to get people to win football games.”
– Paul “Bear” Bryant
2. SMART Goals With Real Consensus
“Specific, Measurable, Agreed-Upon, Realistic, and Time-Specific.”
3. Use of project management tools as a means, not an end.
“We have 562 pages of charts and graphs and still don’t have a clue!”

14. Business Failures
The construction industry is the largest single employer of the country’s work force, it makes a major contribution to the gross national product, and yet suffers one of the highest annual business failure rates in the country. Studies have shown that the number of failures in the construction industry is much higher than it should be. The reason for the high failure rate is not because owners of companies do not have the technical skills required for construction but because owners have not developed adequate business management skills or techniques.---in particular; communication skills!

15. Failure to qualify for loans Excessive growth
Most business failures occur within the first three years of operation with the major reason being a lack of planning. Some of the other reasons which lead to business failure are:
Insufficient working capital
Failure to qualify for loans
Excessive growth
Borrowing money from relatives and friends
Company officers taking a too large of a salary
Purchase or lease of expensive vehicles as status symbols
Not keeping adequate accounting records
Poor project estimating as a result of:
a. not knowing the cost of material
b. under estimating labor costs
c. not understanding overhead or general conditions
d. inadequate profit margins
Loss of owner or key person
Too many projects starting at the same time

16. PROJECT MANAGEMENT VS. GENERAL MANAGEMENT

17. Skill Requirements for Effective Project Management
Conflict Resolution
Creativity and Flexibility
Ability to Adjust to Change
Good Planning
Negotiation
win-win versus win-lose

18. Key Elements of Negotiations
Each party in the negotiation must believe they have achieved. In other words, both must feel they are or were successful.
Do not forget the other party is a human being and needs to feel the other side cares.
Fairness is essential to success. Both you and your opponent must perceive that you were treated fairly. (You will know whether you were fair in your treatment of the other person.)
A deal is a deal! You need to honor your side of the agreement and the other side must honor theirs.
The essence of negotiations is to do business again. Both parties must win.

19. Universal Truths
The sum and substance or so-called “Universal Truths of Negotiations” are as follows:
Everything is negotiable,
We negotiate continually,
The process is predictable,
Information is crucial to success, and
Time constraints affect the outcome.

20. Rules For Negotiating Teams
When you are negotiating with two people;
Sit where you can watch both.
When you have two people on your team;
Sit apart so you “speak with two voices.”
When you have a large group opposing their small group;
Keep your group together for the appearance of power.
When they have a large group opposing your small group;
Intermingle to diffuse their power.

21. WHAT IS MANAGED? THE THREE GOALS OF A PROJECT

22. The Iron Triangle
Time
Cost
Scope

23. Performance, Cost, and Time Project Targets

24. To Put A Man On The Moon The year 1962
“We commit this nation to put a man on the moon and return him safely to this earth by the end of this decade, and to do the other things, not because they are easy but because they are hard.”
The triple constraint project has begun.

25. The Three Constraints Are
Time constraint: How long do you have?
Budget constraint: How much can you spend?
Performance criteria: What results must your project achieve to meet its purpose?
Project: Put a man on the moon
Time: constraint: By the end of the decade.
Performance: Safe return to Earth
Budget: Unknown

26. Old Joke You can have it fast. You can have it cheap.
You can have it good.
Pick any two!

27. Ranking the Triple Constraint
Try identifying and then ranking the Triple Constraints for the following project..
Project: The Smithsonian National Air and Space Museum, the world’s most popular museum, was a Federal government project accomplished ahead of schedule and under budget.
The goal of the project was to build a world-class aviation and space museum for a budget of $30 million and open it on July 4, 1976.
1. Identify the Triple Constraints.
Project:
Performance criteria:
Budget constraint:

28. Ranking the Triple Constraint
Rank the Triple Constraints.
Driver:
Middle constraint:
Weak constraint:

29. THE LIFE CYCLES OF PROJECTS

30. The Project Life Cycle

31. An Alternate Project Life Cycle

32. Confronting Uncertainty – The Management of Risk

33. What uncertainties are encountered in project management?
Time required to complete a project
Availability of key resources
Cost of resources
Timing of solutions to technological problems
Actions taken by competitors
Actions taken by clients

34. Can uncertainty surrounding projects ever be eliminated?
No, but it can be managed

35. THE PM’S ROLES

36. Facilitator Manager-As-Supervisor Versus Manager-As- Facilitator
Systems Approach Versus Analytical Approach
suboptimization
Must ensure project team members have appropriate knowledge and resources
Micromanagement

37. Communication Paths Between a Project’s Parties- At-Interest
Communicator
Communication Paths Between a Project’s Parties- At-Interest

38. Virtual Project Manager
Geographically Dispersed Projects
Communication Via
Web
telephone
video conferencing
“Never let the boss be surprised!”

39. THE PM’S RESPONSIBILITIES TO THE PROJECT

40. Three Overriding Responsibilities
Acquiring Resources
getting necessary quantity and quality can be key challenge
“irrational optimism”
Fighting Fires and Obstacles
Leadership and Making Trade-Offs

41. Negotiation, Conflict Resolution, and Persuasion
Necessary to meet three overriding responsibilities

42. SELECTION OF A PROJECT MANAGER

43. Key Criteria Credibility - The PM is believable technical credibility
administrative credibility
Sensitivity - Politically Astute and Aware of Interpersonal Conflict
Leadership, Style, Ethics - Ability to Direct Project in Ethical Manner

45. The Key To Productivity
FACILITATION
The Key To Productivity
in the Workplace

46. -TO MAKE EASIER (Webster’s 11th Collegiate Dictionary)
FACILITATE
-TO MAKE EASIER
(Webster’s 11th Collegiate Dictionary)

47. VS. GROUP DECISION MAKING THE MENTAL ASPECT
INDIVIDUAL
VS. GROUP DECISION MAKING THE MENTAL ASPECT

48. INDIVIDUAL VS. GROUP DECISION MAKING COMMUNICATION PROBLEMS

49. FACILITATORS ARE PROCESS MANAGERS
The Facilitator is like an orchestra leader She or he must keep everyone on the same sheet of music playing the same note, in the same beat, all at the same time.
FACILITATORS ARE PROCESS MANAGERS

50. GOOD FACILITATORS ARE NEUTRAL SERVANTS OF THE TEAM
THEY DO NOT
EVALUATE OR
CONTRIBUTE IDEAS OF THEIR OWN
MANAGING PROCESS IS YOUR ONLY JOB

51. “ --from My Tao, by R.W. Russell
Put your energies into guiding rather then ruling. The more unobtrusive you lead, the more people will grow and learn to use their powers wisely. Make your aim as a leader to be unnoticed and eventually unneeded!” “
--from My Tao, by R.W. Russell

52. Common Meeting Problems & The Facilitator’s Role
SEPARTING ROLES: LEADER
(Facilitator, Leader, and Member)
Leader
Participant
Traffic Cop

53. Which Role(s) would you give up; keep?
Can you be Captain, Coach, Quarterback, Referee, and Cheerleader all at the same time?!
Which Role(s) would you give up; keep?
                                                   
                                 

54. THE FACILITATOR IS THE MEETING CHAUFFER
He/She is the Neutral Servant of the group.
With the basic decision making process and the specific “road maps,” proper facilitation will help you avoid potholes and detours, and get you where you want to go in an efficient, effective manner.

55. KEY FACILITATIVE BEHAVIORS ACTIVE BEHAVIORS
Things You Can Do To Intervene
and Get Things Back on Track
When They Start To Go Wrong
Check for agreement
Recycle to last level of agreement
Play dumb
Say what is going on
Maintain/regain focus
Use team memory
Avoid process battles *
Enforce process agreements
Constantly encourage
Accept/legitimize/deal or defer
Be non-defensive
Use body language
Don’t talk too much
Boomerang *

56. Facilitating Comments Remember to do the little “Sesame Street” commercials to constantly educate the team/group on process.
There’s no one right way to solve problems; we can try lots of
different tools. Which do you want to try first?
You can only do one thing at a time.
It’s OK to disagree.
People don’t stick to agendas they haven’t agreed upon.
Having timeframes can keep up on track.
People don’t feel understood unless they get a response.
You can’t solve two problems at once; which do you want to work on?
If you can’t agree on the problem, you won’t agree on the solution.

57. …Continuation of Facilitating Comments
It’s your team/group/meeting.
Terrific! You’re all terrific!
Gee, you all look tired/sad/unhappy….
I’m feeling frustrated – what about you…?
Let’s review the Team Memory and see if we can get back on track.
Are you discussing what to do, or how to do it?
Could we slow down; I don’t think everyone is clear on what
the problem is?
It’s not the role of the facilitator to solve your problems.
Let’s freeze and look at our process.
It’s good to share information, not evaluates right/wrong.
We need to remember where we are in the P-S process.
Go slow now to go fast later.

58. KNOW WHERE YOU’RE GOING
COPY, CUT, AND CARRY
FACILITATIVE BEHAVIORS
FACILITATOR CONTRACT
Boomerang
Maintain/Regain focus
Play dumb
Say what’s going on
(say the unsayable)
Check for agreement
Avoid process battles
Enforce process agreements
Accept/Legitimize/Deal or Defer
Be non-defensive
Use body language
Use the Team Memory
Try to stay neutral
Not contribute my ideas
Manage process (be meeting
“chauffeur”)
Focus team energy on the
task
Defend you from personal attack
Make process suggestions
Need your help to keep in
role
It’s your meeting
KNOW WHERE YOU’RE GOING
PAVE THE WAY
DEFINE YOUR ROLE

59. Planning the Project

60. If a Problem Occurs During a Project Is It Most Likely Due to:
A) Poor Execution
B) Poor Planning

61. Two Extremes “Ready, Fire, Aim” “Paralysis by Analysis” No planning
Too
Much planning

62. THE CONTENTS OF A PROJECT PLAN

63. Elements of Project Master Plan
Overview
brief description of project
deliverables
Milestones or significant events
expected profitability and competitive impact
intended for senior management
Objectives
detailed description of project’s deliverables
project mission statement

64. Elements of Project Master Plan continued
General Approach
technical and managerial approaches
relationship to other projects
deviations from standard practices
Contractual Aspects
agreements with clients and third parties
reporting requirements
technical specifications
project review dates

65. Elements of Project Master Plan continued
Schedules
outline of all schedules and milestones
Resource Requirements
estimated project expenses
overhead and fixed charges
Personnel
special skill requirements
necessary training
legal requirements

66. Elements of Project Master Plan concluded
Evaluation Methods
evaluation procedures and standards
procedures for monitoring, collecting, and storing data on project performance
Potential Problems & Required Project History
list of likely potential problems

67. THE PLANNING PROCESS

68. PM’s First Job
Understand the expectations that the organization has for the project.
Identify who among senior managers has a major interest in the project.
Determine if anything about the project is atypical.

69. THE WORK BREAKDOWN STRUCTURE

70. Simple Approach for Creating the WBS
Gather Project Team
Provide Team Members with Pad of Sticky-Notes
Team Members Write Down all Tasks They can Think of.
Sticky-Notes Placed and Arranged on Wall

71. A Partial WBS (Gozinto Chart) for an Annual Tribute Dinner Project

72. Basic Steps to Construct the Project Action Plan
Identify and arrange all activities in successively finer detail by level
List type and quantity of all resources required for each activity
Show activity predecessors and task duration
Show all project milestones following their predecessor activities
Identify individual or group assigned to perform activity and have ‘sign off’

73. What is the job to be done? What is the purpose of the job?
Details of a job can be analyzed by asking the following questions and writing down the answers:
What is the job to be done?
What is the purpose of the job?
What are the activities within the job?
What is the purpose of each activity?
Could the job be done another way?
Is every listed activity necessary?
Who does the work?
Who could do it better?

74. Details of a job can be analyzed by asking the following questions and writing down the answers:
Where is the work done?
Could it be done somewhere else more economically?
When is the work done?
Would it be better to do it some other time?
How is the work done?
Could more efficient methods be used?

75. Budgeting the Project

76. Budgets are plans for allocating organizational resources to project activities.
forecasting required resources, quantities needed, when needed, and costs
Budgets help tie project to overall organizational objectives.
Budgets can be used as tool by upper management to monitor and guide projects.

77. METHODS OF BUDGETING

78. Top-Down Budgeting
Based on collective judgements and experiences of top and middle managers.
Overall project cost estimated by estimating costs of major tasks
Advantages
accuracy of estimating overall budget
errors in funding small tasks need not be individually identified

79. Bottom-Up Budgeting WBS or action plan identifies elemental tasks
Those responsible for executing these tasks estimate resource requirements
Advantage
more accurate in the detailed tasks
Disadvantage
risk of overlooking tasks

80. The Impact of Budget Cuts
Two project life cycles

81. Three Basic Causes for Change in Projects
Errors made by cost estimator about how to achieve tasks.
New knowledge about the nature of the performance goal or setting.
A mandate.

82. Scheduling the Project

83. PERT AND CPM NETWORKS

84. History Late 1950s Program Evaluation and Review Technique (PERT)
U.S. Navy, Booz-Allen Hamilton, and Lockeheed Aircraft
Probabilistic activity durations
Critical Path Method (CPM)
Dupont De Nemours Inc.
Deterministic activity durations

85. The Language of PERT/CPM
Activity
task or set of tasks
use resources
Event
state resulting from completion of one or more activities
consume no resources or time
predecessor activities must be completed

86. The Language of PERT/CPM continued
Milestones
events that mark significant progress
Network
diagram of nodes and arcs
used to illustrate technological relationships
Path
series of connected activities between two events

87. The Language of PERT/CPM concluded
Critical Path
set of activities on a path that if delayed will delay completion of project
Critical Time
time required to complete all activities on the critical path

88. A Sample Set of Project Activities and Precedences

89. Stage 1 of a Sample AON Network

90. Stage 2 of a Sample AON Network

91. A Completed Sample AON Network

92. A Sample Problem for Finding the Critical Path and Critical Time

93. Stage 1 of a Sample Network

94. A Complete Network

95. Information Contents in an AON Node

96. The Critical Path and Time for Sample Project

97. Calculating Activity Slack
Slack or Float
LST - EST = LFT - EFT = Slack

98. An MSP Version of PERT/CPM Network

99. THE GANNT CHART

100. A Gantt Chart of a Sample Project

101. A Gantt Chart of Sample Project Showing Critical Path, Path Connections, Slack, EST, LST, EFT, and LFT

102. A Gantt Chart of a Day Care Project Showing Expected Durations, Critical Path, Milestone, and Resource Requirements

103. A Progress Report on a Day Care Project Showing Actual Progress Versus Baseline

104. Gantt Chart – Don’t Manage Your Project Without It
Because the Gantt Chart is such a traditional tool and appears so simple on the surface, it doesn’t always get the respect it deserves as a project management tool. Here are some of the uses of a Gantt Chart.
Management reports. The simplicity and visual strength of a Gantt Chart makes it the ideal tool to use when you’re reporting to someone who doesn’t know project management.
Testing the Time constraint. When you’re doing preliminary project planning and have numerous parallel tasks, you often don’t know how long the project will take in calendar time. The Gantt Chart will show you.
Allocating resources. The Gantt Chart helps you to allocate and track resources and identify conflicts.

105. Gantt Chart – Don’t Manage Your Project Without It
What-If analysis. You can explore many options visually and determine which one(s) are best for your project.
Resource management. The “Resource Gantt Chart” works both in controlling resources on a single project and in managing resources across projects in a multiple project environment.
Tracking progress. The “Tracking Gantt Chart,” which you’ll explore later, allows you to compare actual project performance to plan, shows you the consequence of tasks not finishing on their assigned times, and gives you a tool to explore options.

106. Changing Views of Quality
Past Present
Quality is the responsibility of blue-collar Quality is everyone’s responsibility, workers and the direct labor employees including white-collar workers,
working on the floor. indirect labor force, and the overhead staff
Quality defects should be hidden from the Defects should be high-lighted and Customers (and possibly management) brought to the surface for corrective action
Quality problems lead to blame, faulty Quality problems lead to cooperative justification, and excuses solutions

107. Changing Views of Quality
Past Present
Corrections-to-quality problems should be Documentation is accomplished with minimum documentation essential for “lessons learned”
so that mistakes are not repeated
Increased quality will increase project costs Improved quality saves money and increases business
Quality is internally focused Quality is customer focused
Quality will not occur without close People want to produce quality supervision of people products
Quality occurs during project execution Quality occurs at project initiation and must be planned for within the project

108. “How to Create a “Miracle on Demand”
Experienced project managers sometimes look like miracle workers. They bring in a project that seems impossible, and solve problems that others can’t. They have learned to think like project managers—and to use the tools of project management effectively. As you read and practice the tools provided, you’ll learn some of the secrets for looking like a miracle worker yourself.
Your projects are full of hidden resources and opportunities.
Every project has hidden resources that can solve many of your problems. Proper planning will help you uncover those resources and use them properly. These resources go by strange names—resource slack, weak constraint flexibility, control point identification. You’ll learn how to uncover and use them as you read this.
Resources are scarce—so don’t waste the ones you have.
Remember: You waste a resource if you don’t know it’s there in the first place.

109. How to Create a “Miracle on Demand”
When you need one great idea, start with several ideas.
The tools of brainstorming are an important resource for project managers. Don’t go it alone; get input and fresh ideas from other sources. When you’re overstressed and over-anxious, racing your brain for insights and solutions, you don’t think at top capacity. Allow your project team to carry some of the creative load; it helps you –and it improves their moral at the same time.
Take the time to plan and to set goals.
Thousands of projects fail each year because their managers didn’t do the preliminary steps in the right order, especially defining and planning. Make sure you know what the goal of the project is; make sure you understand the work; make sure you have a plan. Then start the work. You wouldn’t go to the target practice and shout, “Ready! Fire! Aim!” Don’t take that attitude with your projects.

110. Ten Golden Rules of Project Management
Don’t bite off more then you can manage
Get your ducks in a row
Plan for Murphy
Don’t put off until tomorrow
Delegate, delegate, delegate
CYA (Document)
Keep your team in the loop
Measure success
Have a flexible strategy
Learn from your mistakes