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Project Management Overview-II By; Engr.Dr.Attaullah Shah PhD ( Civil) Engg, MSc Engg ( Strs), BSc Engg ( Gold Medalist),), MBA, MA ( Eco) MSc Envir Design, PGD Computer Sc. Tel: 051-9250100 E-mail: pdaiou@yahoo.com.
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31% of all new software development projects are cancelled before completion 53% of projects cost >189% of original estimates 16.2% of software projects completed on time and on budget Average overrun is 222% of original estimates Source: Standish Group, 1995 Costs of Poor Project Management A survey on overall applications development projects revealed: 46% of IT projects were "challenged" (completed over budget and past the original deadline). 6% of projects succeeded. 28% of projects failed. Source: Standish Group, 1998
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What is a Project? An adhoc endeavor to create a Unique Product or Service. A unique one time effort bound by cost, time and resources/technical performance ( CST) and has defined objectives to satisfy the customer needs. Project is an undertaking having definite objectives, and specific beginning and ending points, limited budgets, defined scope. Sum of certain activities and tasks required to be performed in a specified period of time with human and non-human resources for specified objectives. ( Is your training a project? ) Project is a one time non-routine opportunity to develop a new product. To satisfy the customer to achieve the organizational objectives. To be completed with in Allocated budget. Scheduled Time. Approved Technical Performance. Approved and agreed Scope of Work. Without any change in the existing culture.
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5 Triple constraints
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6 The Project Management Knowledge Areas 1. Project Integration 2. Scope Management 3. Time Management 4. Cost Management 5. Quality Management 6. Human Resource Management 7. Communications Management 8. Risk Management 9. Procurement Management
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Project Life-Cycle Project Planning( Pre-Investment Studies): Project Opportunity Analysis ( Identification) Project Selection & Problem analysis. Project Pre-feasibility studies. Project Feasibility Studies Preliminary Design Cost Estimation. Implementation ( Investment Phase) Detailed Design. Pre-qualification of bidders Tendering & Negotiation Construction and developing the facility Test Deployment Operation Commissioning Maintenance. Up-keeping ( Preventive) Adoptive Maintenance ( Project Integration). Enhancement Decommission
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What is management? The process of Planning, Organizing, Staffing, controlling and leading. Project management: The art of Directing and coordinating the human and non human Resources throughout the life of project by using modern Management techniques to achieve pre-determined objectives of scope, cost, time, quality and participants satisfaction. ( Project Management Institute America) Project management includes: - Project Appraisal ( Before Commencement of Project PC-I, PC-II). - Project monitoring. ( During Execution of the Projects PC-III) - Project Evaluation ( After Completion of the projects. PC-IV, PC-V)
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Different Forms used by Planning Commission of Pakistan. Different Forms used by Planning Commission of Pakistan. PC-I Forms - Production Sectors - Infrastructure Sectors - Social Sectors. PC-II Form PC-II Form Survey and Feasibility Studies. PC-III Form PC-III (A) form for Physical Targets based on PSDP Allocations & Activity Chart. PC-III(B) Monthly Progress Reporting. PC-IV Form PC-IV Form Project Completion Report. PC-V Form Annual Performance Report After Completion of Project Annual Performance Report After Completion of Project
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Assessing Project Feasibility You need to calculate Nine categories of feasibility: Economic Financial Operational & Technical Schedule Legal and contractual Political Marketing Ethical Environmental
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Operations and Projects Operations and projects share many characteristics: Performed by people. Constrained by limited resources. Planned, executed, and controlled. Operations may include activities such as: Financial management and control Continuous manufacture Product distribution Projects may include activities such as: Developing a new product or service. Effecting a change in structure, staffing, or style of an organization. Developing or acquiring a new or modified information system.
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Projects are Temporary Temporary means that every project has a definite beginning and a definite end. The end is reached: When the project’s objectives have been achieved, or When it becomes clear that the project objectives will not or cannot be met and the project is terminated. Temporary does not necessarily mean short in duration: many projects last for several years. The duration of a project is finite: projects are not ongoing efforts.
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The Product of a Project is Unique A product or service may be unique even if the category it belongs to is large. For example, many thousands of office buildings have been developed, but each individual facility is unique—different owner, different design, different location, different contractors, and so on. Because the product of each project is unique, the characteristics that distinguish the product or service must be progressively elaborated. Progressively means “proceeding in steps; continuing steadily by increments” Elaborated means “worked out with care and detail; developed thoroughly”
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Project management consists of Roles Who is responsible? 1 2 7 8 3 Processes Work Products What to deliver? Techniques How to produce? Hints & Tips How to produce? Guiding Principles
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Stages of PM
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The Triple Constraint of Project Management
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Managing triple constraint 1. Builds the dashboard you use for controlling the project. 2. Without this dashboard, you have no way of knowing where the project is currently headed, how far off course it is, or what action to take to get it back on course. 3. If you neglect this function, you and all project stakeholders are subject to unhappy surprises. 4. Uncontrolled projects rarely reach their goal. Manage the Triple Constraint Scope (Performance) Cost (Budget) Time (Schedule) Client Agreement
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2. Project Stakeholders Project stakeholders are individuals and organizations who are actively involved in the project, or whose interests may be positively or negatively affected as a result of project execution or successful project completion The project management team must identify the stakeholders, determine what their needs and expectations are, and then manage and influence those expectations to ensure a successful project
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Key Stakeholders Key stakeholders on every project include: Project manager the individual responsible for managing the project. Customer the individual or organization who will use the project product Performing organization the enterprise whose employees are most directly involved in doing the work of the project. Sponsor the individual or group within the performing organization who provides the financial resources, in cash or in kind, for the project. Project team members the people doing the work on the project to “realise” a product
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The Stakeholder Management Cycle
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3. Organizational Influences Conduct of Projects is influenced by: Organizational Structure range from fully functional to totally project oriented Organizational Culture Conservative or Aggressive Participative or Authoritarian Organizational Systems Suitability of support functions such as finance, human resource management or strategic planning for project work
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Various Forms of Project Organization A Matrix Organization A Project-Oriented Organization
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The Matrix Organization in an Engineering Division Coordination between Owner and Consultant
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Influence of Organizational Structure on Projects
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3. Key General Management Skills General management encompasses planning, organizing, staffing, executing, and controlling the operations of an ongoing enterprise. General management also includes supporting disciplines such as computer programming, law, statistics and probability theory, logistics, and personnel. Some general management skills are critical for successful project management: Leading Communicating Negotiating Problem Solving Influencing the Organization
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LEADERSHIP
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What You Said About Leaders Leadership is about integrity Transformation leaders interact with team members in a positive and inspiring manner. A leader has a vision that is fuelled by an overall confidence and willingness to take risks. Sharpens and utilizes people’s skills, intelligence, and talents to attain a goal, create an excellent product, accomplish a task or mission, or reach goals and objectives
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Communicating Exchange of information Internal & external Formal & informal Vertical and horizontal
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Negotiating Negotiating involves conferring with others to come to terms with them to reach an agreement. Negotiations can be on the following: Scope, cost and schedule Changes to scope,cost and schedule Contract terms and conditions Assignments and resources
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Problem solving A combination of problem definition and decision making Problem definition requires distinguishing between causes and symptoms Decision making includes analyzing the problem to identify viable solution
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Influencing the organization Ability to get things done Requires an understanding of both the formal and informal structures of all the stakeholders An understanding of the mechanics of power and politics
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Three Stages of a Project Establish Execute Complete Define project objectives, scope and approach, mobilise project team Execute the work plan to achieve desired outcome Wrap up and transition
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Project Stages & Project Management Model Organise Resources Control the Work Report Status Plan the Executio n Complete Project Establish Execute Complete Define project objectives, scope & approach, mobilise project team Execute the work plan to achieve desired outcome Wrap up and transition Confirm Definition Project Selection
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Project Stages & Project Management Model Establish Confirm Definition Project Selection Project Selection Define Project Scope Define Project Objectives Define Approach Define Business Case Select Best Projects
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Project Stages & Project Management Model Establish Confirm Definition Project Selection Confirm Definition Understand Project Sponsor expectations Understand Project Scope Understand Project Objectives Confirm any assumptions Identify Project Risks
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Project Stages & Project Management Model Organise Resources Control the Work Report Status Plan the Executio n Execute Plan the Execution Define Project Deliverables Develop Work Plans Develop Scope, Change Control, Issue Management and Sign-off Processes Develop Risk Mitigation Plan Develop Quality Plan
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Project Stages & Project Management Model Organise Resources Control the Work Report Status Plan the Executio n Execute Organise Resources Identify Project Team Roles / Responsibilities Assign Team Members to Work Plan tasks Communicate responsibilities, target dates, deliverables Train Team Members Organise physical resources
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Project Stages & Project Management Model Organise Resources Control the Work Report Status Plan the Executio n Execute Control the Work Monitor work progress Resolve issues Measure performance
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Project Stages & Project Management Model Organise Resources Control the Work Report Status Plan the Executio n Execute Report Status Assess project progress Prepare status reports Communicate progress to relevant audience group Follow up any issues resulting from status meeting
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Project Stages & Project Management Model Complete Project Complete Complete Project Complete any development / administrative activities Obtain sign-off of final project deliverables Transition to maintenance team where appropriate
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4. Knowledge Areas for Project Management Project Integration Management Project Scope Management Project Time Management Project Cost Management Project Quality Management Project Human Resource Management Project Communications Management Project Risk Management Project Procurement Management
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A Framework for Project Management
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Project Integration Management Describes the processes required to ensure that the various elements of the project are properly coordinated. Tradeoffs among competing objectives and alternatives to meet or exceed stake holders needs or expectations Consists of project plan development Integrating and co-ordinating all project plans to create a consistent, coherent document project plan execution Carryout the project plan by performing the activities included therein overall change control. Co-ordinating the changes across the entire project
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Project Scope Management Describes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. Consists of initiation Authorizing the project phase scope planning Developing a written scope statement as the basis for future project decisions scope definition Subdividing the project deliverables into smaller, more manageable components scope verification Formalizing the acceptance of the project scope scope change control. Controlling the changes to project scope
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Project Time Management Describes the processes required to ensure timely completion of the project. Consists of Activity definition Activity sequencing Activity duration estimating Schedule development Schedule control
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Project Cost Management Describes the processes required to ensure that the project is completed within the approved budget. Consists of Resource planning Identify people, equipment and material Cost estimating Developing an approximation of the cost of resources Cost budgeting Allocating the overall cost estimate to individual work activities Cost control Controlling changes to the project budget
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Project Quality Management Describes the processes required to ensure that the project will satisfy the needs for which it was undertaken. Consists of quality planning Identifying relevant quality standards quality assurance Planned and systematic activities implemented within the quality system quality control. Monitoring specific project results
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Project Human Resource Management Describes the processes required to make the most effective use of the people involved with the project Consists of organizational planning Identifying, documenting and assigning project roles and responsibilities staff acquisition Getting the human resource needed, assigned to and working on the project team development. Developing individual and group competencies to enhance project performance
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Project Communications Management Describes the processes required to ensure timely and appropriate generation, collection, dissemination, storage, and ultimate disposition of project information Consists of communications planning information distribution performance reporting administrative closure.
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Project Risk Management Describes the processes concerned with identifying, analyzing, and responding to project risk Consists of risk identification risk quantification risk response development risk response control An effective software measurement process can provide early warning of problems associated with risks indicators can be used to project any trends early warning can allow action in time to prevent problems
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Project Procurement Management Describes the processes required to acquire goods and services from outside the performing organization Consists of procurement planning solicitation planning solicitation source selection contract administration contract close-out
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Effective Project Management is a core capability required in all business environments Effective Project Management is more than just executing a work plan - it’s about managing to an outcome and satisfying multiple stakeholder groups Most projects go through changes in scope, requirements, resourcing, issues etc - defining detailed project management processes are a must to mange these changes effectively Most projects share common pitfalls - these can be avoided by effective Project Management A continuous improvement mindset is essential Summary
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