Project Management Presented by Dr. Joan Burtner Certified Quality Engineer Associate Professor of Industrial Engineering and Industrial Management Mercer University

ETM 627 Fall 2008Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 2 Overview of Project Management Project management defined Project management tools Project planning and estimation tools Designing processes and deliverables Implementing and tracking the project Evaluating and closing out the project

ETM 627 Fall 2008Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 3 What is Project Management? “Project management is a collection of proven techniques for proposing, planning, implementing, managing, and evaluating projects, combined with the art of managing people” - Westcott (p. 237) Project management is a supplementary skill that augments an individual’s primary skill.” - Christensen, Coombes-Betz, Stein (p. 82)

ETM 627 Fall 2008Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 4 Project Lifecycle Stages Visualizing, selling, initiating the project Planning Designing processes and outputs Implementing and tracking Evaluating and closing out the project

ETM 627 Fall 2008Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 5 Tools for Stage 1 Risk Assessment Potential Issues – –Will the outcome of the project achieve a level of results acceptable to stakeholders? – –Will the project be accomplished on time? – –Will the project require more financial capital than initially anticipated? Identification of risks – –Brainstorming by a team – –Reviews of previous projects – –Inputs from stakeholders Quantification - Failure Mode and Effects Analysis – –Severity – –Occurrence – –Detection

ETM 627 Fall 2008Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 6 Tools for Stage 1 Benefit-Cost Analysis Is the project financially feasible? – –Determine ratio of projected revenues and cost estimates for projects under consideration – –Compare benefit/cost for each project – –Select projects that will be funded – –Verify project’s financial impact after project is completed Quantification – Benefits-to-Costs Ratio – –Direct costs and direct benefits Equipment, salaries, increased production, higher quality, increased sales, reduced delivery costs, higher reliability, decreased deficiencies, lower warranty costs, etc. – –Indirect costs and indirect benefits (often difficult to quantify) Displaced workers, opportunity costs, increased customer satisfaction, better trained employees, etc.

ETM 627 Fall 2008Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 7 Tools for Stage 1 Ranking/Prioritizing Projects Ranking projects (See pp of your text) – –Payback period – –Net present value (NPV) – –Internal rate of return (IRR) – –Return on investment (ROI) – –Return on assets (ROA) Prioritizing projects – –Portfolio analysis ~ a comparison of the relative financial impacts of ongoing projects versus proposed projects – –Prioritization matrix ~ a merit analysis method described in detail in chapter 13 – –Strategic fit analysis ~ Does the project fit within the organization’s short-term and long-term strategies and resources?

ETM 627 Fall 2008Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 8 Tools for Stage 2 Project Planning Sequence -1 Typical project planning sequence – –(See p. 247 of your text) 1. 1.Statement 2. 2.Project justification Payback period, NPV, IRR, ROI, ROA, BC ratio 3. 3.Draft project documents Mission statement, project scope and objectives 4. 4.Stakeholder requirements Stakeholder matrix, process map

ETM 627 Fall 2008Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 9 Tools for Stage 2 Project Planning Sequence -2 Typical project planning sequence – –(See p. 247 of your text) 5. 5.Project team formation 6. 6.Update project documents, prepare charter, request project planning funds 7. 7.Identify deliverables   Project outputs or contractually required deliverables (CDRLs)   Internal outputs for planning and managing project

ETM 627 Fall 2008Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 10 Tools for Stage 2 Project Planning Sequence -3 Typical project planning sequence – –(See p. 247 of your text) 8. 8.Work breakdown structure (WBS)   Hierarchy of work categories 9. 9.Gantt chart Major project steps with projected start times and finish times Time-dependent task diagrams Resource requirements matrix (RRM)

ETM 627 Fall 2008Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 11 Tools for Stage 2 Project Planning Sequence -4 Typical project planning sequence – –(See p. 247 of your text) Linear responsibility matrix (LRM) Project budget Measurements and reports Milestones, project monitoring process, data analysis methodology, reporting protocols Completed project plan Obtain final approval to proceed with project

ETM 627 Fall 2008Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 12 Tools for Stages 3 and 4 Stage 3 – –Designing project-specific processes and deliverables – –Varies with project type (software design, hardware design, integrated software/hardware, etc.) Stage 4 – –Implementing and tracking the project – –Critical performance measures Timeliness (tracking overall progress, stage/gate reviews) Budget variance (tracking expenditures and comparing to budget) Earned value analysis (periodically tracking planned value, earned value of actual work completed, actual costs to achieve earned value) Resource usage (facilities, human, equipment, information) Risk analysis (proactively exercising control of potential future events)

ETM 627 Fall 2008Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 13 Tools for Stage 5 Evaluating and closing out the project Typical end-of-project measures – –Objectives – –Deliverables – –Schedule – –Budget – –Payback – –Cost savings – –Earned value analysis results – –Lessons learned

ETM 627 Fall 2008Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 14 References Westcott, R.T. (Ed.). (2006). The Certified Manager of Quality/Organizational Excellence Handbook (3 rd edition), Milwaukee, WI: ASQ Quality Press Project Management Institute (2004). Guide to the Project Management Body of Knowledge, Newton Square, PA: PMI Publications Christensen, E., Coombes-Betz, K., and Stein, M. (2007). The Certified Quality Process Analyst Handbook, Milwaukee, WI: ASQ Quality Press

ETM 627 Fall 2008Dr. Joan Burtner, Associate Professor of Industrial Engineering Slide 15 Contact Information US Mail: US Mail: Mercer University School of Engineering 1400 Coleman Avenue Macon, GA Phone: (478) Phone: (478)