Project Management A 1 hour presentation to the Dept. of Mechanical Engineering Oumout Chouseinoglou, Dept. of Industrial Engineering

Presentation based on: “Project Management: Achieving Competitive Advantage, 3/E”, Jeffery K. Pinto Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall References

EMÜ464 Course Organization

Introduction Examples of projects Split the atom Tunnel between England and France Introduce Windows 8 Plan the Olympic games in London “Projects, rather than repetitive tasks, are now the basis for most value-added in business” -Tom Peters

Project vs. Process Work Project Take place outside the process world Unique and separate from normal organization process- driven work and routines Continually evolving Process Ongoing, day-to-day activities to produce goods and services Use existing systems, properties, and capabilities Typically repetitive “ A project is a temporary endeavor undertaken to create a unique product or service.” PMBoK 2008

A Guide to the Project Management Body of Knowledge (5 th edition) is a book which presents a set of standard terminology and guidelines for project management; a document resulting from work overseen by the Project Management Institute (PMI). PMI is a US not-for-profit professional organization for project management, providing services including the development of standards, research, education, publication, networking-opportunities in local chapters, hosting conferences and training seminars, and providing accreditation in project management. Also available in Turkish as: « Proje Yönetimi Bilgi Birikimi Kılavuzu (PMBOK Kılavuzu) » What is the PMBoK?

Additional Definitions A project is a unique venture with a beginning and an end, conducted by people to meet established goals within parameters of cost, schedule and quality. Buchanan & Boddy, 92 Projects are goal-oriented, involve the coordinated undertaking of interrelated activities, are of finite duration, and are all, to a degree unique. Frame, 95

Project Definitions Summarized A project can be considered any series of activities and tasks that have: Specific objectives to be completed within certain specifications, Defined start and end dates, Funding limits, Human and nonhuman resources, and Multifunctional focus.

1-9 Elements of Projects Complex, one-time processes Limited by budget, schedule, and resources Developed to resolve a clear goal or set of goals Customer-focused

General Project Characteristics (1/2) Ad-hoc endeavors with a clear life cycle Building blocks in the design and execution of organizational strategies Responsible for the newest and most improved products, services, and organizational processes Provide a philosophy and strategy for the management of change

General Project Characteristics (2/2) Entail crossing functional and organization boundaries Traditional management functions of planning, organizing, motivating, directing, and controlling apply Principal outcomes are the satisfaction of customer requirements within technical, cost, and schedule constraints / objectives Terminated upon successful completion of performance objectives

Process 1. Repeat process or product 2. Several objectives 3. Ongoing 4. People are homogeneous 5. Systems in place to integrate efforts 6. Performance, cost, & time known 7. Part of the line organization 8. Bastions of established practice 9. Supports status quo Project 1. New process or product 2. One objective 3. One shot – limited life 4. More heterogeneous 5. Systems must be created to integrate efforts 6. Performance, cost & time less certain 7. Outside of line organization 8. Violates established practice 9. Upsets status quo Process & Project Management

Project Success Rates Software & hardware projects fail at a 65% rate, Over half of all IT projects become runaways Only 30% of technology-based projects and programs are a success. Only 2.5% of global businesses achieve 100% project success and over 50% of global business projects fail, Average success of business-critical application development projects is 32%, and Approximately 42% of the 1,200 Iraq reconstruction projects were eventually terminated due to mismanagement or shoddy construction

Why are Projects Important? 1. Shortened product life cycles 2. Narrow product launch windows 3. Increasingly complex and technical products 4. Emergence of global markets 5. Economic period marked by low inflation

Project Life Cycles Man Hours ConceptualizationPlanning Execution Termination

Project Life Cycles Conceptualization - the development of the initial goal and technical specifications. Planning – all detailed specifications, schedules, schematics, and plans are developed Execution – the actual “work” of the project is performed Termination – project is transferred to the customer, resources reassigned, project is closed out.

Project Life Cycles and Their Effects

Quadruple Constraint of Project Success Success Budget Client Acceptance SchedulePerformance

Project Manager Responsibilities 1. Selecting a team 2. Developing project objectives and a plan for execution 3. Performing risk management activities 4. Cost estimating and budgeting 5. Scheduling 6. Managing resources

1. Project Integration Management 2. Project Scope Management 3. Project Time Management 4. Project Cost Management 5. Project Quality Management 6. Project Human Resource Management 7. Project Communications Management 8. Project Risk Management 9. Project Procurement Management 10. Project Stakeholder Management Overview of the Project Management Institute’s PMBoK Knowledge Areas 01-20

Overview of the Project Management Institute’s PMBoK Processes Initiating These processes help you define a new piece of work – either a complete new project or the phase you are about to begin. They ensure you have authority to proceed. Planning These processes help you define objectives and scope out the work to be done. They also encompass all the work around planning and scheduling tasks. Again, they can cover a complete project or just the phase you are working on right now. Or you might be closing one phase and planning the next in parallel. Executing You do these processes as you carry out your project tasks. This is the ‘delivery’ part of project management, where the main activity happens and you create the products. Monitoring and Controlling These processes let you track the work that is being done, review and report on it. They also cover what happens when you find out the project isn’t following the agreed plan, so change management falls into this Process Group. You’ll run these processes alongside those in the Executing Group (mainly, but alongside the other Groups too) so you monitor as you go. Closing Finally, these processes let you finalize all the tasks in the other Groups when you get to the point to close the project or phase.

Project Management Professional ( PMP ) is an internationally recognized professional designation offered by the PMI. The exam is based on the PMBOK, and requirements to sit for the exam include: a bachelor's degree, at least 4,500 hours of experience leading and directing projects, and 35 hours of formal project management education. A candidate who passes the exam and meets the professional requirements is awarded the PMP certification. What is PMP?

PMI ® membership is 471,437 – an overall increase of 4.8% over the prior 12 month period Total Project Management Professional (PMP) ® credential holders: 663,238 Total Certified Associate in Project Management (CAPM) ® certification holders: 29,532 Total Program Management Professional (PgMP) ® credential holders: 1,387 Total PMI Scheduling Professional (PMI-SP) ® credential holders: 1,407 Total PMI Risk Management Professional (PMI-RMP) ® credential holders: 3,335 Total PMI Agile Certified Practitioner (PMI-ACP) ® certification holders: 9,625 Total PMI Portfolio Management Professional (PfMP) ® credential holders: 259 Total PMI Active Professional in Business Analysis (PMI-PBA) ® : 453 PMI Statistics as of 30 September 2015

EMÜ464 Course Organization

Lecture 2: Strategy, Structure & Culture Understand how effective project management contributes to achieving strategic objectives. Recognize three components of the corporate strategy model: formulation, implementation, and evaluation. See the importance of identifying critical project stakeholders and managing them within the context of project development. Understand how companies can change their structure into a “ heavyweight project organization ” structure to facilitate effective project management practices. Identify the characteristics of three forms of project management office (PMO).

Lecture 3: Project Selection & Portfolio Management Explain the criteria for a useful project-selection/ screening model. Understand how to employ checklists and simple scoring models to select projects. Use more sophisticated scoring models, such as the Analytical Hierarchy Process. Learn how to use financial concepts, such as the efficient frontier and risk/return models. Employ financial analyses and options analysis to evaluate the potential for new project investments. Recognize the challenges that arise in maintaining an optimal project portfolio for an organization.

Lecture 4: Leadership & Project Manager Understand how project management is a “leader intensive” profession. Distinguish between the role of a manager and the characteristics of a leader. Understand the concept of emotional intelligence as it relates to how project managers lead. Recognize traits that are strongly linked to effective project leadership. Understand the implications of time orientation on project management. Identify the key roles project champions play in project success. Understand the development of project management professionalism in the discipline.

Understand the importance of scope management for project success. Understand the significance of developing a scope statement. Construct a Work Breakdown Structure (WBS) for a project. Develop a Responsibility Assignment Matrix for a project. Describe the roles of changes and configuration management in assessing project scope. Lecture 5: Scope Management

Understand the steps involved in project team building. Know the characteristics of effective project teams and why teams fail. Know the stages in the development of groups. Describe how to achieve cross-functional cooperation in teams. See the advantages and challenges of project teams. Understand the nature of conflict and evaluate response method. Understand the importance of negotiation skills in project management. Lecture 6: Project Team Building, Conflict, and Negotiation

Define project risk. Recognize four key stages in project risk management and the steps necessary to manage risk. Understand primary causes of project risk and four major approaches to risk identification. Recognize primary risk mitigation strategies. Explain the Project Risk Analysis and Management (PRAM) process. Lecture 7: Risk Management

Understand the various types of common project costs. Recognize the difference between various forms of project costs. Apply common forms of cost estimation for project work, including ballpark estimates and definitive estimates. Understand the advantages of parametric cost estimation and the application of learning curve models in cost estimation. Discern the various reasons why project cost estimation is often done poorly. Apply both top-down and bottom-up budgeting procedures for cost management. Understand the uses of activity-based budgeting and time- phased budgets for cost estimation and control. Lecture 8: Cost Estimation and Budgeting

Understand and apply key scheduling terminology. Apply the logic used to create activity networks, including predecessor and successor tasks. Develop an activity network using Activity-on-Node (AON) techniques. Perform activity duration estimation based on the use of probabilistic estimating techniques. Construct the critical path for a project schedule network using forward and backward passes. Identify activity float and the manner in which it is determined. Calculate the probability of a project finishing on time under PERT estimates. Understand the steps that can be employed to reduce the critical path. Lecture 9: Project Scheduling: Networks, Duration Estimation, and Critical Path

Apply lag relationships to project activities. Construct and comprehend Gantt charts. Recognize alternative means to accelerate projects, including their benefits and drawbacks. Understand the trade-offs required in the decision to crash project activities. Develop activity networks using Activity-on-Arrow techniques. Understand the differences in AON and AOA and recognize the advantages and disadvantages of each technique. Lecture 10: Project Scheduling: Lagging, Crashing and Activity Networks

Understand the differences between common cause and special cause variation in organizations. Recognize ways in which project teams inflate the amount of safety for all project tasks. Understand the ways in which additional project task safety can be wasted. Distinguish between critical path and critical chain project scheduling techniques. Understand how critical chain methodology resolves project resource conflicts. Apply critical chain project management to project priorities. Lecture 11: Critical Chain Project Scheduling

Recognize the variety of constraints that can affect a project, making scheduling and planning difficult. Understand how to apply resource-loading techniques to project schedules to identify potential resource overallocation situations. Apply resource-leveling procedures to project activities over the baseline schedule using appropriate prioritization heuristics. Follow the steps necessary to effectively smooth resource requirements across the project life cycle. Apply resource management within a multiproject environment. Lecture 12: Resource Management

Understand the nature of the control cycle and key steps in a general project control model. Recognize the strengths and weaknesses of common project evaluation and control methods. Understand how Earned Value Management can assist project tracking and evaluation. Use Earned Value Management for project portfolio analysis. Understand behavioral concepts and other human issues in evaluation and control. Understand the advantages of Earned Schedule methods for determining project schedule variance, schedule performance index, and estimates to completion. Lecture 13: Project Evaluation and Control

Distinguish among the main forms of project management. Recognize the steps in formal project closeout. Understand key reasons for early termination of projects. Know the challenges and components of a final project report. Lecture 14: Project Closeout and Termination