PROJECTS IN CONTEMPORARY ORGANIZATIONS Introduction  We live in a world of rapid development – physical and infrastructure, technological and human  Projects in Malaysia – MNC (Malaysian National Car –1983), KLIA (completed 1998), KLCC twin tower, many more  Who is involved? Public and Private sector, Local and foreign companies

Often hear about project being delayed, not completed, “abandoned/terbengkalai”, etc. why??? Lack of management skills and knowledge – is one of the reasons for Costs overrun Delay – not meeting dateline Not meeting specification/performance/quality Therefore, need project management skills and knowledge

Introduction Project mgmt (PM) provides “powerful tools” on how : to plan, organize, implement & control activities to use people & resources PM initiated by the military – Polaris Missile Programme (1950’s) and private companies – EI DuPont (Chemical Plant Maintenance Shutdown Project) – to increase effectiveness of project implementation PM needed as intense competition between companies – quick response, fast delivery of new products

Project Objectives and Triple Constraints Main objectives of project mgmt (called Triple constraint) Time Cost Performance Project Manager constantly make tradeoffs on the triple constraints - one affects the other Also must consider risks involved in project management

Project Mgr (also known as the Super manager) – must integrate all aspects of project; ensure proper knowledge & resources; ensure the expected result on a timely & cost effective manner, and know implications of decisions

Definition and Characteristics of a Project Basic Definition of Project Have a specific and finite tasks to be accomplished, whether large or small scales, long or short run Common terms used in PM : program, project, task, work package, work unit (to be covered later)

Definition and Characteristics of a Project Purpose Project – usually a one-time activity with a set of desired end result; can be divided into subtasks, which required coordination & control Life Cycle Project life cycle – slow beginning  progress to a buildup of size  peak  begin decline  finally must terminate

Definition and Characteristics of a Project Interdependencies Projects interact with other project being carried out simultaneously by parent org., but always interacts with the parent’s standard, ongoing operations, etc. The patterns of interaction between functional dept. may change. e.g. Marketing may involved at the beginning & end of project; Mfg may have major involvement throughout; Finance often involved at the beginning & accounting at the end Project mgr - keep these interactions clear & maintain

Definition and Characteristics of a Project Uniqueness Every project are unique – no two projects are the same Some degree of customization is there Conflict Project mgr. – full of conflict; projects compete with functional dept. for resources & people Project members – conflicting for project’s resources & leadership roles in solving problems; deal with clients & org. Individual’s conflict – two bosses at the same time; different objectives & priorities

Difference between project management and production management Quantity – usually in large numbers (mass production) Products similar but with variety – (example - consumer goods - cars, household, computers, etc.) Inputs to the process put together (based on product) in a facility (factory) but in project they are brought to the ‘site’, e.g. equipments, man, material Process and activities carried out repetitively/ more than once, not in projects where most activities carried out once

Why Project Management? Project manager expected to coordinate & integrate all activities to reach project’s goals Project – allows the mgr to be responsive to the client & environ, to identify & correct problems, make timely decisions, ensure mgrs at separate tasks do not sub-optimize Advantages of project mgmt; Better control & better customer relations Shorter development times, lower costs, higher quality & reliability, higher profit margins Sharper orientation towards results, better interdepartmental coordination & higher worker morale

Some disadvantages of project mgmt Increased organizational complexity Increase the likelihood that organizational policy being violated – project mgr being autonomous Higher costs, management difficulties, low personnel utilization PM is difficult even when everything goes well - w hat more if things go badly Project organization is the only feasible way to accomplish certain goals - literally not possible to design & build a major weapon system in a timely & economically acceptable manner, except through project organization – i.e. applying PM tools

The Project Life Cycle Projects – go through similar stages  from origin to completion Project is born (start-up phase); mgr is selected  project team & resources are assembled  organize work Work gets way & momentum quickly builds  progress is made  until the end is in sight

The Project Life Cycle Takes time to complete final tasks; Why? Often a number of parts must come together & team members “drag their feet” Pattern of slow-rapid-slow progress – is common due to changing level of resources used Project effort, usually in man-hours (or number of people working on project) plotted against time

The Project Life Cycle Beginning – minimal effort; development of concept & processes selection Activity increases – rises to a peak – begin to taper off as project nears completion – finally ceasing when evaluation is complete – terminated Some cases – effort never fall to zero; small group may be maintained for the next project

The Project Life Cycle Performance – important at early stage of project’s life cycle; time when planners find the methods required to meet project’s performance goals (these methods is refer as project’s technology; application of science or art) While technology of project is defined – project schedule is designed & project costs are estimated Conventional wisdom - Early life cycle – performance important than schedule & costs; During high activities – costs important; Final stages – schedule become paramount – May not be true Recent research indicates – performance & schedule more important than cost during all stage