Presentation on theme: "PROJECT MANAGEMENT GROWTH: CONCEPT and DEFINITIONS"— Presentation transcript:
1 PROJECT MANAGEMENT GROWTH: CONCEPT and DEFINITIONS By : Wiji Nurastuti, MT
2 GENERAL SYSTEM MANAGEMENT Organizational theory and management philosophies have undergone a dramatic change in recent years with the emergence of the project management approach to management. Because project management is an outgrowth of system management, it is only fitting that the underlying principles of general systems theory be described.General system theory implies the creation of a management technique that is able to cut across many organizational disclipines-finance, manufacturing, engineering, marketing and so on-while still carrying out the functions of management.
3 Project ManagementDuring the 1940s, line managers used the concept of over the fence management to manage projects.Project ManagementBetween the middle and late 1960s, more executives began searching for new management techniques and organizational structures that could be quickly adapted to a changing environment. The table below and Figure 2-1 identify two major variables that executives consider with regard to organizational restructuringType of industryTasksEnvironmentABCDSimpleComplexDynamicStatic
4 Continue Project Management 1960-1985 Almost all type C and most type D industries have project management-related structures. The key variable appears to be task complexity.In informal project management, just as the words imply, the projects were handled on an informal basis whereby the authority of the project manager was minimized.The following five questions help determine whether formal project management is necessary:Are the jobs complex?Are there dynamic environmental considerationsAre the constrains tight?Are there several activities to be integrated?Are there several functional boundaries to be crossed?
5 FIGURE 2-1. Matrix Implementation scheme DYNAMICGREATER NEED FOR UNDERSTANDING HUMAN BEHAVIOROPERATIONAL ENVIRONMENTTYPE OF TASK1980S1960S : TOTALLY PROJECT DRIVEN(INFORMAL PROJECT MGT.)1970SSTATICSIMPLECOMPLEXFIGURE 2-1. Matrix Implementation scheme
6 PROJECT MANAGEMENTBy the 1990s, companies had begun to realize that implementing project management was a necessity, not a choice. The question was not how to Implement project management, but how fast could it be done?There are six driving forces that lead executives to recognize the need for project management:Capital projectCustomer expectation
7 Table 2-1 Life Cycle Phases for Project Management Maturity Embryonic PhaseExecutive Management Acceptance PhaseLine Management AcceptanceGrowth PhaseMaturity PhaseRecognize needRecognize benefitsRecognize applicationsRecognize what must be doesVisible executive supportExecutive understanding of project managementProject sponsorshipWillingness to change way of doing businessline management supportLine management commitmentLine management educationWillingness to release employees for project management traininguse of life-cycle phasesdevelopment of a project management methodologyCommitment to planningMinimization of “creeping scope”Selection of a project tracking systemdevelopment of a management cost/schedule control systemIntegrating cost and schedule controlDeveloping an educational program to enhance project management skills
8 Project management can be used to help such companies remain competitive during periods of growth and to assist in determining capacity constrains. Because of the interrelatedness of these driving forces, some people contend that the only true driving forces is survival. This is illustrated in Figure 2-4. when the company recognizes that survival of the firm is at stake, the implementation of project management becomes easier
9 SURVIVAL Capital Efficiency and projects Effectiveness Customers’ ExpectationsCapitalprojectsCompetitivenessExecutiveUnderstandingNew ProductDevelopmentEfficiency andEffectivenessFIGURE 2-4. The components of survival. Source: Reprinted from H. Kerzner, In Search ofExcellence in Projeck Manegement. New York: Wiley, 1998, p.51.
10 PROJECT MANAGEMENT GROWTH: CONCEPT AND DEFINITIONS PM has P & LResponsibilityPM is a recognizedProfessionMultiple careerPathsIncome comes fromprojectPrimarily productiondriven but withMany projectsEmphasis on newProduct developmentMarketing orientedShort product lifeCyclesNeed for rapiddevelopment processVery few projectsProfitability fromProductionLarge brick wallsLong life cycleProductsProject DrivenProjectManagementHybridNon-Project - DrivenProgramProductPresentPastFIGURE 2-7. Industry Classification (by project management utilization)
11 Traditional Project Modern Project Management Management 1990 – 2003 1960 – 1990HybridTraditional Project Modern ProjectManagement Management1990 – 2003Entrance via projectDriven divisions suchas MIS and R&DEntrance viaMarketing,engineering, and R&DFIGURE 2-8. From hybrid to project-Driven
12 SYSTEMS PROGRAMS, AND PROJECTS A DEFINITION Business practitioners define a system as A group of elements, either human or nonhuman, that is organized and arranged in such a way that the elements can act as a whole toward achieving some common goal or objective. If a system is significantly dependent on other systems for its survival, then it is an extended systems.
13 Once a group of tasks is selected and considered to be a project, the next step is to define the kinds of project units. There are four categories of projects :Individual projects: these are short-duration project normally assigned to a single individual who may be acting as both a project manager and a functional managerStaff projects: these are project that can be accomplished by one organizational unit, say a department.Special projects: often special project occur that require certain primary functions and/or authority to be assigned temporarily to other individuals or units.Matrix or aggregate projects: these require input from a large number of functional units and usually control vast resources
14 PRODUCT VERSUS PROJECT MANAGEMENT: A DEFINITION Project management and product management are similar, with one major exception: the project manager focused on the end date of this project, whereas the product manager is not willing to admit that this product line will ever end. The product manager wants his product to be as long lived and profitable as possible. Even when the demand for the product diminishes, the product manager will always look for spin-offs to keep his product alive. Figure 2-10 shows the relationship between project and product management
16 MATURITY AND EXCELLENCE : A DEFINITION Maturity in project management is the implementation of a standard methodology and accompanying processes such that three exists a high likelihood of repeated successes. The definitions of excellence can be stated as Organizations excellence in project management are those that create the environment in which there exists a continuous stream of successfully managed project and where success is measured by what is in the best interest of both the company and the project.
17 Successes PROJECT MANAGEMENT GROWTH: CONCEPTS AND DEFINITIONS ProjectsFailuresMATURITYSuccessesEXCELLENCE2 YEARS5 YEARSTIMEFIGURE The growth of excellence
18 CONVENTIONAL PROJECT MANAGEMENT Life cyclephasesePolicy andProceduremanualsGuidelinesPer Life CyclePhaseGeneralProjectguidelinessChecklists withPeriodic reviewpoints1970sCONVENTIONAL PROJECT MANAGEMENTPROJECTMANAGEMENTWITHCONCURRENTENGINEERINGEARLY 1980sMid-1980sLate 1980s1990sFIGURE Evolution of policies, procedures, and guidelines.
19 THE MANY FACES OF SUCCESS Success is defined as a point on the time, cost, quality/performance grid.Typical KPIs includeUse of the project management methodologyEstablishment of the control processes use of interim metricsQuality of interim metricsQuality of resources assigned versus planned forClient involvement
22 FIGURE 2-15. Components of failure (pessimistic planning) NoneAActualPlannedachievablePerfectionBCDEAccomplishmentPerceivedFailureActual FailurePlanningfailureFIGURE Components of failure (pessimistic planning)Perceived Failure
23 THE STAGE-GATE PROCESS The four most common decisions areProceed to the next gate based upon the original objectives.Proceed to the next gate based upon revised objectivesDelay making a gate decision until further information is obtainedCancel the project
24 PROJECT LIFE CYCLEDuring the past few years, there has been at least partial agreement about the lifecycle phases of a product. They include:Research and developmentMarket introductionGrowthMaturityDeteriorationDeath
25 PROJECT MANAGEMENT METHODOLOGIES : A DEFINITION Achieving project management excellent, or maturity, is more likely with a repetitive process that can be used on each and every project. This repetitive process is referred to as the project management methodology. Good methodologies integrate other processes into the project management methodology as shown in Figure 2-24
26 Figure 2-24 Integrated Processes for The twenty-first century
27 SYSTEMS THINKING The systems approach : The system approach may be defined as a logical and disciplined process of problem solving. The word process indicates an active ongoing system that is fed by input from is parts.The systems approach :Forces review of the relationship of the various subsystemsIs a dynamic process that integrates all activities into a meaningful total system.Systematically assembles and matches the parts of the system into a unified wholeSeeks an optimal solution or strategy in solving a problemSystem thinking is vital for the success of a project. Project management system urgently need new ways of strategically viewing, questioning and analyzing project needs for alternative non technical and technical solutions. The ability to analyze the total project, rather than the individual parts, is essential for successful project management.
28 Referensi By : Kerzner, Harold, 2003 Referensi By : Kerzner, Harold, “Project Management : a systems approach to planning, scheduling and controlling”, John Willey & Sons