1. Project Management for Maximum Effectiveness
Ike C. Ehie Department of Management Kansas State University
Presented at the Leadership Institute, Kansas State University, Manhattan, Kansas July 20, 2010

2. Agenda What is a project What is project management
Project scope statement
Effective tools for managing a project
Project planning and schedule –The Albion Sugar Company
Project management in public sector
Conclusion

3. Project Definition
A Project is a temporary endeavor undertaken to create a unique product or service.
Temporary
Unique
“Projects, rather than repetitive tasks, are now the basis for most value-added in business”
-Tom Peters

4. Project characteristics
Endeavors of any size may be a project
Large and small projects demand different handling
Temporary
Distinguishes project from process
Unique
Not the same old thing

5. Project Management
Management of the work involved in a project in terms of:
Competing demands for scope, time, cost, risk, and quality
Stakeholders with different needs and expectations
Identified requirements

6. Project Management Triple Constraints
FIGURE 4.1

7. Quadruple Constraints of Project Success
Budget
Client
Acceptance
Schedule
Performance

8. Project Scope Statement
A definition of the end result or mission of the project—a product or service for the client/customer—in specific, tangible, and measurable terms. Also called a statement of work (SOW)
Purpose of the Scope Statement
To clearly define the deliverable(s) for the end user.
To focus the project on successful completion of its goals.
To be used by the project owner and participants as a planning tool and for measuring project success.

9. Project Scope Checklist
Objective/s – answers the questions of what, when, and how much
Deliverables – the expected outcomes/outputs over the life of the project
Milestones- a significant event in a project that occurs at a point in time
Technical requirements - project specifications needed to meet a specified performance
Limits and exclusions – defines the boundary of the project by stating what is not included

10. Exercise #1
Describe a project that you have been involved with in the past one year
Define the project scope statement
Objective/s, deliverables, milestone, requirements & restrictions
Discuss this with your partner

11. Exercise #2 Think of the project you will undertake in the next year
Define the project scope statement
Discuss your project scope statement with your partner

12. Why are Projects Important?
1. Budgeting 2. Staff allocation 3. Schedule development 4. Schedule credibility 5. Sanity retention 6. Increasingly complex and technical products 7. Emergence of global markets

13. Project Life Cycles Fig 1.3 Project Life Cycle Stages Man Hours
Conceptualization
Planning
Execution
Termination
Fig 1.3 Project Life Cycle Stages

14. 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.

15. Project Life Cycles and Their Effects
Client Interest
Conceptualization
Planning
Execution
Termination
Project Stake
Resources
Creativity
Uncertainty
Fig 1.4

16. Effective Project Management Tools
Work Breakdown Structure (WBS)
An hierarchical outline (map) that identifies the products and work elements involved in a project
Defines the relationship of the final deliverable (the project) to its subdeliverables, and in turn, their relationships to work packages
Best suited for design and build projects that have tangible outcomes rather than process-oriented projects

17. How WBS Helps the Project Manager
Facilitates evaluation of cost, time, and technical performance of the organization on a project
Provides management with information appropriate to each organizational level
Helps in the development of the organization breakdown structure (OBS), which assigns project responsibilities to organizational units and individuals
Helps manage plan, schedule, and budget
Defines communication channels and assists in coordinating the various project elements

18. Work Breakdown Structure
FIGURE 4.4

19. WBS Coding

20. Work Packages A Work Package Is the Lowest Level of the WBS.
It is output-oriented in that it:
Defines work (what)
Identifies time to complete a work package (how long)
Identifies a time-phased budget to complete a work package (cost)
Identifies resources needed to complete a work package (how much)
Identifies a single person responsible for units of work (who)

21. Effective Project Management Tools
Responsibility Matrix (RM)
Also called a linear responsibility chart
Summarizes the tasks to be accomplished and who is responsible for what on the project
Lists project activities and participants
Clarifies critical interfaces between units and individuals that need coordination
Provide an means for all participants to view their responsibilities and agree on their assignments
Clarifies the extent or type of authority that can be exercised by each participant

22. Responsibility Matrix for a Market Research Project
FIGURE 4.7

23. Responsibility Matrix for the Conveyor Belt Project
FIGURE 4.8

24. Effective Project Management Tools
Project Communication Plan
What information needs to be collected?
Who will receive information?
What information methods will be used?
What are the access restrictions?
When will information be communicated?
How will information be communicated?

25. Communication Plan:
FIGURE 4.9

26. Effective Project Management Tool
Gantt Chart
FIGURE A8.2B

27. Effective Project Management Tools
The Project Network
A flow chart that graphically depicts the sequence, interdependencies, and start and finish times of the project job plan of activities that is the critical path through the network
Provides the basis for scheduling labor and equipment
Provides an estimate of the project’s duration
Provides a basis for budgeting cash flow
Highlights activities that are “critical” and should not be delayed
Help managers get and stay on plan

28. Basic Rules to Follow in Developing Project Networks
Networks typically flow from left to right.
An activity cannot begin until all of its activities are complete.
Arrows indicate precedence and flow and can cross over each other.
Identify each activity with a unique number; this number must be greater than its predecessors.
Looping is not allowed.
Conditional statements are not allowed.
Use common start and stop nodes.

29. Koll Business Center—Complete Network
FIGURE 6.4

30. Determining Slack (or Float)
The critical path is the network path(s) that has (have) the least slack in common.
The critical path is the longest path and determines the completion of the project
Free Slack (or Float)
The amount of time an activity can be delayed without delaying connected successor activities
Total Slack
The amount of time an activity can be delayed without delaying the entire project

31. Sensitivity of a Network
The likelihood the original critical path(s) will change once the project is initiated.
Function of:
The number of critical paths
The amount of slack across near critical activities

32. Rationale for Reducing Project Duration
Time Is Money: Cost-Time Tradeoffs
Reducing the time of a critical activity usually incurs additional direct costs.
Cost-time solutions focus on reducing (crashing) activities on the critical path to shorten overall duration of the project.
Reasons for imposed project duration dates:
Customer requirements and contract commitments
Time-to-market pressures
Incentive contracts (bonuses for early completion)
Unforeseen delays
Overhead and goodwill costs
Pressure to move resources to other projects

33. Managing Public Sector Projects
Operating under overlapping and often conflicting set of rules and procedures
Rules are in place to ensure consistent standard of behaviors and a project must adhere to those rules
The political process inherently hands you a built-in adversity; other parties may not necessarily be interested in the success of the project
More stakeholders to please with less authority
May not have full control of the budget
Project scope can change with little or no notice

34. Skills Needed for Managing Public Project
Softer or people skills
Conflict management
Negotiation
Diplomacy
Managing stakeholders expectations
Emotional maturity
With less authority, the key is to induce behaviors rather than order it