Project Management

Lecture February 23, 2012

Prof. Dr. Christian Marxt 2012

Overview
What is Project Management?
- What is a project? - Successful and failed projects - Critical success factors of PM

Structure of the lecture

- Agenda - People - Administration

The Case

- Content of the Case Study - Schedule - Deliverables

Summary and Outlook

Prof. Dr. Christian Marxt 2012

What is a project?

Prof. Dr. Christian Marxt 2012

Working Definition Project I

A project is a temporary endeavor undertaken to create a unique product or service (PMI, PMBOK Guide, 2008) A project is a temporary endeavor undertaken to create a unique product or service. Temporary means that the project has an end date. Unique means that the project's end result is different than the results of other functions of the organization. (en.wikipedia.org/wiki/Project)

Prof. Dr. Christian Marxt 2012

Characteristics of a Project Supported purpose/importance Performance specifications (form, fit, function)

Known (bounded) solution

Life cycle with finite due date Interdependencies Uniqueness Resource requirements and tradeoffs Stakeholder Conflict

Prof. Dr. Christian Marxt 2012

Other terms used in PM

Distinction between terms:
- Program - an exceptionally large, long-range objective that is broken down into a set of projects - Project- temporary endeavor - Work Packages - division of tasks

Prof. Dr. Christian Marxt 2012

Strategy, Programs, Projects Corporate strategy

Program n
Project 1 Project i Project n

Project phases

Project phases Project phases

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What is project management?

Prof. Dr. Christian Marxt 2012

Definition
Project Management:
- The science and art of solving a given problem within predetermined time and resource parameters (PMI, PMBOK Guide, 2008) - Shouldering just enough risk to escape with your career intact!!!

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Why is PM Important? Traditional hierarchical management declining

Consensual management increasing

Increasing reliance on systems engineering Projects integral to organizational strategy Companies have experienced:
- Better customer relations - Shorter overall delivery times - Lower costs and higher profit margins - Higher quality and reliability - Higher worker morale

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Aspects of Project Management

Source: Meredith/Mantel Project Management 2005 Prof. Dr. Christian Marxt 2012

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Phase Models
Project Initiation

Project Planning

Project Start

Feedback Loops

Project Implementation

Project Completion

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The Project Life Cycle

Definition Planning Implementation Delivery

Level of effort
1. Goals 2. Specifications 3. Scope 4. Responsibilities 5. Teams

1. WBS 2. Budgets 3. Resources 4. Risks 5. Schedule

1. Status reports 2. Change Orders 3. Quality Audits 4. Contingencies

1. Train user 2. Transfer documents 3. Release resources 4. Reassign staff 5. Lessons learned

Source: Meredith/Mantel Project Management 2005 Prof. Dr. Christian Marxt 2012

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Example of a Activity-on-Node with Critical Path

Source: Meredith/Mantel Project Management 2005 Prof. Dr. Christian Marxt 2012

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Successful and Failed Projects

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Project Examples

Project Examples

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Projects in Companies
General Management Finance & Controlling

Information Management & Technology

Human Resources

Marketing

R&D

Production

Logistics

Distribution

Based on value chain by Michael Porter

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Successful Projects and Programs

Project Apollo Human Genome Project Airport Munich (Erdingermoos) Introduction of EDOZ at ETH Zurich KnowInnet

NUMMI
etc.

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Toyota Hybrid Synergy Drive

Already planned and started in the 1990s Technology Push Project Professional PM Several Vehicles in the US

Platform Technology also applied in Lexus 400h

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NUMMI (New United Motors Manufacturing, Inc.)

Started in 1984 as a joint project between GM and Toyota. Legally a joint venture Successfully manufactured cars for 25 years. Was shut down in 2010.

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..............Climb

Planning and preparation: approx. 3 years Success rate: approx. 50% Employees: approx. 150-200

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Failed Projects
London Ambulance

Airport Malpensa
German Toll System Iridium (failed, back on track)

Many software projects

etc.

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Failed Software Projects: Examples

Source: http://www.spectrum.ieee.org/sep05/1685/failt1
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London Ambulance I
The major objective of the London Ambulance Service Computer Aided Dispatch (LASCAD ) project was to automate many of the humanintensive processes of manual dispatch systems associated with ambulance services in the UK.

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Source: LAS inquiry

London Ambulance II
LAS failed to follow the PRINCE Project Management Method in the set up and operation of an Information Technology (IT) executive committee, project board, project management team and project assurance team; London Ambulance Service Project management throughout the development and implementation process was inadequate and at times ambiguous. A major systems integration project such as CAD requires full time. professional, experienced project management. This was lacking.

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Source: LAS inquiry

Critical Success Factors of Projects

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Why Are Projects Successful?

Critical Success Factors

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Overview
What is Project Management?
- What is a project? - Successful and failed projects - Critical success factors of PM

Structure of the lecture

- Agenda - People - Administration

The Case

- Content of the Case Study - Schedule - Deliverables

Summary and Outlook

Prof. Dr. Christian Marxt 2012

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Goals for the Lecture Series

You will understand the basics of successful PM
You are able to apply the concepts and methods of PM in your day to day work You are able to distinguish between good and bad PM and are able to suggest improvements You will contribute to projects in your organization in a positive way

You will be able to plan, manage and execute projects successfully

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Tentative Program (1)

Lecture Nr. Date Content Lecture Content Case Study

23.02.2012

Introduction, Definition, Administration: Success Factors, Example Projects History of PM, Elements: Project Phases, PM Concepts and Models Project Start, Project Planning I: Project Ideas, Project Goals, Task, Contracts Project Planning II: Structuring, Scheduling, Resource Allocation Project Planning III: Time, Cost, Performance Project Planning IV: Organization Project Planning V: Risk Management

Introduction Case Study

2 3

01.03.2012 08.03.2012

Due Date: Project Phases

4 5 6 7

15.03.2012 22.03.2012 29.03.2012 05.04.2012

Due Date: WBS and Schedule

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Tentative Program (2)

Lecture Nr.

Date

Content Lecture

Content Case Study

8 9 10 11 12 13

19.04.2012 26.04.2012 03.05.2012 10.05.2012 24.05.2012 31.05.2012

Monitoring and Information Systems Project Control Guest Lecturer: Project Management in SME Project Auditing and Project Termination Presentation Case Studies Harvard Case Study and Summary

Due Date: Project Organization

Due Date: Final Project Plan

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People
Prof. Dr. sc. techn. Christian Marxt
Chair of Technology and Entrepreneurship Research areas:
- Collaborative innovation in open innovation systems

Teaching areas:
Technology and Innovation Management Corporate Entrepreneurship Alliance Advantage Project Management Mixed Methods (PhD Program Liechtenstein)

Mag.rer.soc.oec. Markus Spiegel

Chair of Technology and Entrepreneurship Research areas:
- Complexity in technology oriented companies

Teaching area:
- Introduction to General Management

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Type of Lecture
Presentation Interaction Case Studies

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Administration
Administration Assistant: Markus Spiegel Email: markus.spiegel@uni.li

Testat On-time delivery of Case Study (final document) Active participation

Exam (for all students) 60 minutes written No materials (except dictionary and calculator) Prerequisite: case study accepted

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Documentation and Literature Handouts

Lecture slides Additional Material Case Study Material

Literature
Meredith, Jack R.; Mantel, Samuel, J.,: Project Management: A Managerial Approach, 8th Edition International Students Version, New York: Wiley, 2012. Project Management Institute: A Guide to the Project Management Body of Knowledge: (PMBOK Guide); 2008.

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Overview
What is Project Management?
- What is a project? - Successful and failed projects - Critical success factors of PM

Structure of the lecture

- Agenda - People - Administration

The Case

- Content of the Case Study - Schedule - Deliverables

Summary and Outlook

Prof. Dr. Christian Marxt 2012

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Content of the Case Study

Introduction Since 1896 the IOC is organizing the Olympic Games together with local partners. In 2012 the Summer Olympic Games will take place in London (www.london2012.com)
Task Plan the opening ceremony. Take all important factors (e.g. organization, safety, catering, funding etc.) into account. Prepare a detailed project plan which will allow to execute the project.

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Administration
IMPORTANT Do not contact IOC or any other officials related to the project in London or anywhere else! Use information on the official websites, if necessary.

Groups Form groups of max. 5 persons (no exceptions). Please organize yourself. Send an email with an excel sheet with names and email addresses of all group members to Markus Spiegel (markus.spiegel@uni.li) until Friday, March 2nd 2012.

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Schedule
The following dates are important:
- 23.02.2012: - 22.03.2012: - 19.04.2012: - 24.05.2012: Introduction Due date WBS Due date Schedule and project organization Due date final project plan and presentation of selected project plans

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Deliverables
Drafts:
- Document as email attachment to the assistant on the due date - Make it readable. No rough-rough drafts. - Feedback will be provided in the plenary session.

Final Report:
- Project report (electronic) with all necessary elements. - Word file with corresponding pdf of PM Software File (either MS Project or freeware) - An accepted final report is necessary prerequisite to the exam.

Software can be found on the web as freeware, if you have no access to MS Project

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Success Factors of PM
Luck! professional Project-Controlling appropriate project organization Qualified motivated adequate anticipation of possible disturbances Time Costs Resources Tasks People

Explicit principal with vital interest in project success

Clear Project Goal

Critical Success Factors

full Management Commitment

realistic Planning of

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Summary and Outlook

PM is key to company success. Projects are done in all parts of an organization. Projects are new, risky and have a defined start and end. There are several key success factors for projects. PM is about managing people!

Next Lecture Project management (History, PM Concepts, Project Phases)

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