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Project Management IMPRS, Katlenburg-Lindau, 23-25 May 2005 Bernd Madauss Project-Management-Team Bad Aibling, Germany
Project Management
IMPRS, Katlenburg-Lindau, 23-25 May 2005
Bernd Madauss
Project-Management-Team
Bad Aibling, Germany
bernd@madauss.com
Project Management Table of Content – Fundamentals of Project Management (PM): Life Cycle Considerations, Management
Project Management
Table of Content
– Fundamentals of Project Management (PM): Life Cycle
Considerations, Management Information Project Control Methodologies & Tools,
– International Aspects of PM: International Co-operations at
Government and/or Company Level, Differences: Languages,
Currencies, Culture, etc.
– Management Specification, Interfaces of High-Tech Complexity: Baseline,
– Organizational Aspects: Structures, Multiple
Teams &
Disciplines, Location & Staffing Different Skills, Responsibilities & Authorities,
– Project Project Manager, Staff: Functions, Motivation Leadership, Appointment of
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Project Management Definition: „ Project-Management“ Defined Start and End: From Goal Setting to Completion and
Project Management
Definition: „ Project-Management“
Defined Start and End: From Goal Setting to
Completion and Acceptance by Customer.
Unique Undertaking: Design, Development,
Prototyping.
Involves Innovation: New Technologies.
High Technical Complexity: Many Interfaces.
Involvement of Many People: Different Skills and
Multiple Disciplines.
High Organizational Complexity: Multiple Teams,
Cooperation's, Joint Ventures.
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Project Management
Definition: „Project-Management “
Planning: Tasks, Resources, Facilities, Key
Personnel, Tools, Financing.
Organization: Structure, Interfaces,
Responsibilities.
Team Building: Selection of Personnel,
Identification of Key Personnel.
Control: Actual vs. Planning, Feed-Back
Solutions, Changes, Analysis.
Leadership: Guidance, Decisions, Directions.
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Project Management 1. Fundamentals of Project Management (PM) • Life Cycle Considerations, • Project Control
Project Management
1.
Fundamentals of Project
Management (PM)
• Life Cycle Considerations,
• Project Control Methodologies &
Tools,
• Management Information.
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Project Management
P
GOAL
Performance
Dependence of
Parameters
• Performance
S
C
• • Product Life Cycle (internationally applied)
Schedule
Schedule
Costs
Cost Target
SCR
SSR
PDR
CDR
FACI
SPR
A
B
C/D
E
F
CONCEPT-
DEFINITION-
DEVELOPMENTANDPRODUCTION
OPERATIONS PHASE
DISPOSAL
PHASE
PHASE
PHASE
PHASE
Requirement s
Production-
Baseline
Baseline
Specification-
Development -
Users-
Baseline
Baseline
Baseline
SCR
-
System-Concept Review
CDR -
SSR - System-SpecificationReview
PDR - PreliminaryDesignReview
FACI -
Critical DesignReview
First ArticleConfigurationInspection
SPR - SystemProductionReview
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Project Management Definition: “Product Life Cycle” Product: Goods or Services to be Developed, Produced, Used
Project Management
Definition: “Product Life Cycle”
Product: Goods or Services to be Developed, Produced, Used
and Disposed.
Life Cycle: Process from Cradle to Grave.
Major Product Phases:
A. Concept: Concept Design, Feasibility Studies and Trade-
Offs.
B. Definition: System Specification and Planning.
C. Design & Development: Detailed Design, Prototyping
and Development Testing.
D. Production: Manufacturing, Tooling, Testing and
Acceptance.
E. Operation: Implementation, Operation & Maintenance.
F. Disposal
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Project Management “Top Down” versus “Bottom Up” Top Down Approach Phase A Phase B Phase
Project Management
“Top Down” versus “Bottom Up”
Top Down Approach
Phase A
Phase B
Phase C
Bottom Up Approach
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Project Management Major Review & Decisions Milestones System Requirements Review (SRR): business plan confirmed.
Project Management
Major Review & Decisions Milestones
System Requirements Review (SRR): business plan
confirmed.
System Concept Review (SCR): concept freeze.
System Design Review (SDR): design freeze.
• Preliminary Design Review (PDR)
• Critical Design Review (CDR)
First Article Configuration Inspection (FACI): product
acceptance.
System Product Review (SPR): production readiness.
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Project Management
Consideration of Life Cycle Costs
1. Definition of Project Phases
• A:Concept Phase
• B:Definition Phase
• C/D:Development and Production
• E:Operations Cost
• F:Disposal
2. Identification of Cost Drivers
3. LCC calculation and Optimization
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Project Management Project Funding Determination of Return of Investment (ROI) ROI = (R – O)/I
Project Management
Project Funding
Determination of Return of Investment (ROI)
ROI = (R – O)/I
– Required Investment (I)
– Expected Operating Costs (O)
– Calculated Revenues (R)
and All three must be Factors carefully are analysed of great importance prior to start to of the a project. Business
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Project Management
Consideration of Life Cycle Costs
4.
Cost related Design Optimization
5.
Development of Cost Targets
6.
Identification of Cost Drivers
7.
Continues Design To Cost (DTC) Analysis
8. Development of Optimal DTC Solutions
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Project Management Optimization of Project Parameters: Performance (P), Schedule (S) and Cost (C) „Communicate with
Project Management
Optimization of Project Parameters:
Performance (P), Schedule (S) and Cost (C)
„Communicate with each other“
P
Contract
Performance
Dependence of
Parameters
S
C
Schedule
Costs
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Project Management Management Control Loop (Feedback) BASELINE PLAN   IMPLEMENT      
Project Management Management Control Loop (Feedback) BASELINE PLAN   IMPLEMENT      
Project Management Management Control Loop (Feedback) BASELINE PLAN   IMPLEMENT      

Project Management

Management Control Loop (Feedback) BASELINE PLAN   IMPLEMENT            
Management Control Loop (Feedback) BASELINE PLAN   IMPLEMENT            
Management Control Loop (Feedback) BASELINE PLAN   IMPLEMENT            
Management Control Loop (Feedback) BASELINE PLAN   IMPLEMENT            
Management Control Loop (Feedback) BASELINE PLAN   IMPLEMENT            

Management Control Loop (Feedback)

BASELINE

PLAN

 

IMPLEMENT

IMPLEMENT
 
   
 
 
       
     

DECIDE

 
PERFORM

PERFORM

 
 
 

ANALYZE

 

COMPARE

ANALYZE   COMPARE   CONTROL
 

CONTROL

 

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ANALYZE   COMPARE   CONTROL   Madauss@2005 14 IMPRS, Katlenburg-Lin dau, May 2005
Project Management Project Control Methodologies • Definition of Project Objectives • Work Breakdown Structure
Project Management
Project Control Methodologies
• Definition of Project Objectives
• Work Breakdown Structure (WBS)
• Identification of Project Milestones
• Preparation of Project Schedules
• Preparation of Cost/Price Plans
• Performance of Status/Cost Control
• Implementation of Corrective Actions
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Project Management
Structuring The Project
• Functional Breakdown
• Product Tree
• Hardware
• • Functions Software
• Model Matrix
• Work Breakdown Structure (WBS)
• Make or Buy Decision Plan
• Work Package Definition(s)
• Cost Breakdown Structure
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Project Management Implement Work Breakdown Structure Subdivision into Smaller Increments • Level 1: Total Project
Project Management
Implement Work Breakdown Structure
Subdivision into Smaller Increments
• Level 1: Total Project
• Level 2: Systems of the Project
• Level 3: Subsystems of the Project
• Level 4: Units/Equipments
• Level 5: Work Packages or Components
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100 PMO Luxembourg • PM • PCM • SEM • QAM • Others
100
PMO
Luxembourg
PM
PCM
SEM
QAM
Others
• PM • PCM • SEM • QAM • Others Project Management Work Breakdown Structure (sample
• PM • PCM • SEM • QAM • Others Project Management Work Breakdown Structure (sample

Project Management

Work Breakdown Structure

(sample of an international project)

S atellite System Custom er Luxem bourg 300 Supply of S atellite Contrctor "B "
S atellite
System
Custom er
Luxem bourg
300
Supply of
S atellite
Contrctor "B "
France
400
Supply of
Ground Station
Contrctor "C"
UK
400 Supply of Ground Station Contrctor "C" UK Bus Contractor "G " France P ropulsion Contractor
Bus Contractor "G " France
Bus
Contractor "G "
France
P ropulsion Contractor "H" Germ any
P ropulsion
Contractor "H"
Germ any
Interface Contractor "F" Japan
Interface
Contractor "F"
Japan

200

210

220 2nd Stage Contractor "E " Ukrain
220
2nd Stage
Contractor "E "
Ukrain
230 Fairing Contractor "I" Switzerland
230
Fairing
Contractor "I"
Switzerland
Launch Cam paign Contractor "K " 240 Kasakstan
Launch Cam paign
Contractor
"K "
240
Kasakstan
Launch Cam paign Contractor "K " 240 Kasakstan Up-Link Contractor "M " Spain Data P rocessing
Launch Cam paign Contractor "K " 240 Kasakstan Up-Link Contractor "M " Spain Data P rocessing
Launch Cam paign Contractor "K " 240 Kasakstan Up-Link Contractor "M " Spain Data P rocessing

Up-Link Contractor "M " Spain

Data P rocessing Contractor "N" Belgium

Telem etry Contractor "O " UK

500 S atellite O perations Contractor "D" Holland
500
S atellite
O perations
Contractor "D"
Holland
S atellite O perations Contractor "D" Holland M onitoring Com pany "D" Holland E valuation

M onitoring

Com pany "D"

Holland

E valuation

Com pany "Q "

Ireland

Relay Com pany "R" China

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Project Management Work Breakdown Structure (WBS as table version) Responsibility Budget Actual CTC CAC
Project Management Work Breakdown Structure (WBS as table version) Responsibility Budget Actual CTC CAC
Project Management Work Breakdown Structure (WBS as table version) Responsibility Budget Actual CTC CAC

Project Management

Work Breakdown Structure

(WBS as table version)

Responsibility

Budget

Actual

CTC

CAC

Balance

[Coordinates]

[1000 €]

[1000 €]

[1000 €]

[1000 €]

[1000 €]

100

Project

Name, Tel. Nr. E- Mail, Address, etc.

100

70

40

110

-10

Mechanical

800

500

275

775

+25

Electrical

1 200

950

350

1 300

- 100

Power Generator

800

600

200

800

0

Power Converter

400

350

150

500

- 100

 

2 100

1 520

665

2 185

- 85

CTC = Cost to Completion

CAC = Cost at Completion

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WBS Item [Nr. & Title] Management Office 200 Subsystem 300 Subsystem 310 320 GRAND TOTAL
WBS Item [Nr. & Title] Management Office 200 Subsystem 300 Subsystem 310 320 GRAND TOTAL
WBS Item [Nr. & Title] Management Office 200 Subsystem 300 Subsystem 310 320 GRAND TOTAL
WBS Item [Nr. & Title]

WBS Item [Nr. & Title]

WBS Item [Nr. & Title] Management Office 200 Subsystem 300 Subsystem 310 320 GRAND TOTAL OF
WBS Item [Nr. & Title] Management Office 200 Subsystem 300 Subsystem 310 320 GRAND TOTAL OF
WBS Item [Nr. & Title] Management Office 200 Subsystem 300 Subsystem 310 320 GRAND TOTAL OF

Management Office

200

Subsystem

300

Subsystem

310

320

GRAND TOTAL OF THE PROJECT

Management Office 200 Subsystem 300 Subsystem 310 320 GRAND TOTAL OF THE PROJECT
Management Office 200 Subsystem 300 Subsystem 310 320 GRAND TOTAL OF THE PROJECT
Management Office 200 Subsystem 300 Subsystem 310 320 GRAND TOTAL OF THE PROJECT
Management Office 200 Subsystem 300 Subsystem 310 320 GRAND TOTAL OF THE PROJECT
Management Office 200 Subsystem 300 Subsystem 310 320 GRAND TOTAL OF THE PROJECT
Project Management Work Breakdown Structure (WBS) A Key to Successful Project Management !!! The WBS
Project Management
Work Breakdown Structure (WBS)
A Key to Successful Project Management !!!
The WBS serves several important Purposes, such as:
• Subdivision of Work
• Identification of Project Levels
• Work Sharing between Companies
• Economic Geographical Distribution of Funds
• Implementation of WBS Numbering System (Code) – applicable to the
entire Project
• Definition of Cost Account Structure
• Allocation of Funds
• Implementation of Project Control in line with the WBS Code
• Assignment of Responsibilities to Companies & Individual Managers
• Identification of Interfaces at all Levels
• Implementation of Documentation Numbers related to WBS Code
• Identification of Work Packages
Always apply the rule of KISS =
Keep It Simple Stupid !!!
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Project Management Content of Work Package Description • Work Package (WP) Identification • Title •
Project Management
Content of Work Package Description
Work Package (WP) Identification
• Title
• Identification of the WP in the WBS (WP Number)
• Date of the Start and End of the WP
• Company or Entity in charge of the WP Performance
• Work Package Manager
Description of the WP Tasks to be Performed
Tasks Explicitly Excluded
• WP Inputs
Product(s) to be Completed or Delivered
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Project Management Work Package Input/Output Input * Output ** Work Package time * ** Objective,
Project Management
Work Package Input/Output
Input *
Output **
Work Package
time
*
**
Objective, requirements,
mission plan, etc.
Deliverables (HW, SW,
documentation
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Project Management Sample Project Schedule L K E Y M IL E S T O
Project Management Sample Project Schedule L K E Y M IL E S T O
Project Management

Project Management

Sample Project Schedule

L K E Y M IL E S T O N E S M IN

L

K

E Y

M IL E S T O N E S

M

IN T E RNAL

M IL E S T O N E S

N

IN T E R F A C E S

O

N O T E S

 
A IN S T A L L A T IO N B AP P R
A
IN S T A L L A T IO N
B
AP P R O V A L
RE S P O N S iB IL IT Y
C
A
CCO M P L IS H M E N T
R
E S P O N S iB IL IT Y
M ILESTO N E S

J C O N T R ACT O R

I S CHE DUL E NO .

TIM E

S C A L E

P L IS H M E N T R E S P O N S iB
P L IS H M E N T R E S P O N S iB
P L IS H M E N T R E S P O N S iB
P L IS H M E N T R E S P O N S iB

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H S CHE DUL E T IT L E

K L E VEL

D O R IG . S C H E D U L E

A P P R .

(D A T E )

G P R O J E C T

E L A S T

S C H E D U L E

CH ANG E

(L E A V E

B L ANK )

F STA T U S

A S

O F

(L E A V E B L ANK ) F STA T U S A S
Project Management Project Milestones • Major Project Milestones • Interface Milestones • Payment Milestones
Project Management
Project Milestones
• Major Project Milestones
• Interface Milestones
• Payment Milestones
• Other Milestones
• Planned Achievements
• Performance Control at Milestones
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Project Management Status Monitoring And Control • Baseline Planning • Measurement of Achievements • Comparison
Project Management
Status Monitoring And Control
• Baseline Planning
• Measurement of Achievements
• Comparison of Planned and Actual
• Divinations to Plan
• Corrective Actions
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Project Management Schedule Trend Chart LEVEL/ O rig inal Plan vom : M ILESTO N
Project Management Schedule Trend Chart LEVEL/ O rig inal Plan vom : M ILESTO N
Project Management

Project Management

Schedule Trend Chart

LEVEL/ O rig inal Plan vom : M ILESTO N E T R EN D
LEVEL/
O
rig inal
Plan vom :
M ILESTO N E T R EN D - ANAL YSIS
O
rig inal
Schedule:
15.03.1992
EXA M PLE
STU FE
Letzte Änderu ng:
01.04.1993
Last Schedule Change:
B eispiel / M uster
2
Stichtag:
Program Project(s)
30.06.1993
Status as of:
Acco m p lishm ent:
Approval:
Page: 1
of 1
O rganisation
Bearbeitung:
Freigabe:
YEAR
1992
1993
1994
1995
1996
Com m ents
1
3
2
LEG EN D:
Legende
PDR 14.05.
4
Planned M ilestone
03.12.
G
eplanter M eilenstein
19.03.
C
losed M ilestone
A
bgeschl. M eilenstein
Status
Stichtag
STM
C ontract
Vertrag
Status
Ist - Term in
15.09. 15.11.
Delay
Term in Verschiebung
ETM
10.07.
CD R
01.10.
09.12.
R em arks:
1
Delay caused by
Delay caused by
:
Correction
:
3
Correction
by reduction of
:
B em erkung:
2
:
Correction
:
4
Correction
by
:
19921993199419951996

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Project Management Planning of Project Resources • Manpower Requirements • Material Requirement • Requirements
Project Management
Planning of Project Resources
• Manpower Requirements
• Material Requirement
• Requirements for Machines
• Facility Requirements
• Travel Requirements
• Others (TBD)
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Project Management
Budgeting and Cost Control
• Establish Resource Budgets
• Agreed on Rates
• Prepare Budget Plan
• Prepare Payment Plan
• Start Cost Control
• Perform Earned Value Analysis
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Project Management Sample Resource- and Cost Plan C. Elements   300 550 500 30 000
Project Management Sample Resource- and Cost Plan C. Elements   300 550 500 30 000
Project Management

Project Management

Sample Resource- and Cost Plan

C. Elements

 

300

550

500

30 000

55

000

50

000

3

000

8

000

7

000

5

3

000

5

000

4

000

2

000

 

10

000

20

000

10

000

1

000

3

000

3

000

2

000

Schedule (Quarter)

Total C.

1 750

175 000

000

000

000

000

23

14

40

9

       

Houres

Labour C.

Material C.

Travel C.

Rental C.

Other C

Total Cost

   

40

400

000

000

37 000

81 000

84 000

59 000

261 000

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Project Management Earned Value Methodology Akkumulierte Kosten (TDM) Accumulated Time Now ( TN ) Costs
Project Management Earned Value Methodology Akkumulierte Kosten (TDM) Accumulated Time Now ( TN ) Costs
Project Management

Project Management

Earned Value Methodology

Akkumulierte Kosten (TDM)

Earned Value Methodology Akkumulierte Kosten (TDM) Accumulated Time Now ( TN ) Costs Statuskontrolle ( 01.07.XX

Accumulated

Value Methodology Akkumulierte Kosten (TDM) Accumulated Time Now ( TN ) Costs Statuskontrolle ( 01.07.XX )

Time Now (TN)

Costs Statuskontrolle ( 01.07.XX ) 700 600 ACWP 500 BCWS Cost to Completion 400 Plankosten
Costs
Statuskontrolle
( 01.07.XX )
700
600
ACWP
500
BCWS
Cost to Completion
400
Plankosten
( PK )
300
Ist-Kosten
( IK )
BCWP
200
Arbeitswert ( AW )
100
1
2
3
4
5
6
7
8
9
10
11
12
13
14
20
45
45
70
70
75
65
65
65
40
40
40
--
--
65
110
180
250
325
390
455
520
560
600
640
--
--
15
40
40
45
50
60
55
95
140
190
250

15

Cost at Completion (CAC)

( CTC )

ACWP – Actual Cost Work Performed BCWP – Budgeted Cost Work Performed BCWS – Budgeted Cost Work Scheduled

16 Zeitplan

BCWS – Budgeted Cost Work Scheduled 16 Zeitplan Kostenplan Akk. Kosten Ist-Kosten Akk. Ist-Kosten Cost Plan

Kostenplan

Akk. Kosten

Ist-Kosten

Akk. Ist-Kosten

Cost Plan

Actual Costs

-- --

--

--

-- --

--

--

Akk. Ist-Kosten Cost Plan Actual Costs -- -- -- -- Time Schedule Term inplan
Akk. Ist-Kosten Cost Plan Actual Costs -- -- -- -- Time Schedule Term inplan
Akk. Ist-Kosten Cost Plan Actual Costs -- -- -- -- Time Schedule Term inplan
Akk. Ist-Kosten Cost Plan Actual Costs -- -- -- -- Time Schedule Term inplan
Akk. Ist-Kosten Cost Plan Actual Costs -- -- -- -- Time Schedule Term inplan
Akk. Ist-Kosten Cost Plan Actual Costs -- -- -- -- Time Schedule Term inplan
Akk. Ist-Kosten Cost Plan Actual Costs -- -- -- -- Time Schedule Term inplan
Akk. Ist-Kosten Cost Plan Actual Costs -- -- -- -- Time Schedule Term inplan
Akk. Ist-Kosten Cost Plan Actual Costs -- -- -- -- Time Schedule Term inplan
Akk. Ist-Kosten Cost Plan Actual Costs -- -- -- -- Time Schedule Term inplan
Akk. Ist-Kosten Cost Plan Actual Costs -- -- -- -- Time Schedule Term inplan
Akk. Ist-Kosten Cost Plan Actual Costs -- -- -- -- Time Schedule Term inplan
Time Schedule Term inplan e:\pmt\seminare\s_10\s_10gf02.cdr Fo- 03
Time Schedule Term inplan e:\pmt\seminare\s_10\s_10gf02.cdr Fo- 03
Time Schedule Term inplan e:\pmt\seminare\s_10\s_10gf02.cdr Fo- 03
Time Schedule Term inplan e:\pmt\seminare\s_10\s_10gf02.cdr Fo- 03
Time Schedule Term inplan e:\pmt\seminare\s_10\s_10gf02.cdr Fo- 03
Time Schedule Term inplan e:\pmt\seminare\s_10\s_10gf02.cdr Fo- 03
Time Schedule Term inplan e:\pmt\seminare\s_10\s_10gf02.cdr Fo- 03
Time Schedule Term inplan e:\pmt\seminare\s_10\s_10gf02.cdr Fo- 03
Time Schedule Term inplan e:\pmt\seminare\s_10\s_10gf02.cdr Fo- 03
Time Schedule Term inplan e:\pmt\seminare\s_10\s_10gf02.cdr Fo- 03
Time Schedule Term inplan e:\pmt\seminare\s_10\s_10gf02.cdr Fo- 03
Time Schedule Term inplan e:\pmt\seminare\s_10\s_10gf02.cdr Fo- 03

Time Schedule

Term inplan

e:\pmt\seminare\s_10\s_10gf02.cdr Fo-03

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Project Management Communication Issues Downwards Communication From Management to Staff Regular Briefings,
Project Management
Communication Issues
Downwards Communication
From Management to Staff
Regular Briefings, Employee Reports
House Journals, Company Newspapers
Upwards Communication
From Staff to Management
Attitude Surveys, Suggestion Schemes
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Project Management
Communication Issues
Horizontal Communication
Between Individuals and Teams,
Between Departments, Workgroups
Team Work, Product Development
Teams,
Quality Management Groups
(Operational Excellence)
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Project Management Project Information Verbal Communication • Discussions • Meetings • Conventions Written
Project Management
Project Information
Verbal Communication
• Discussions
• Meetings
• Conventions
Written Communication
• Memos
• Letters
• Minutes
• Reports
• Documentation
• Publication
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Project Management
Communication Tools
The Media available to support Communication
between Global Partners are basically
Telephone Conversations
Telephone Conferencing
Video Conferencing
Telefax Information
Email Information
Discussion Databases
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Project Management Project Management Reports • Quarterly Progress Report (QPR) to Customer • Monthly Progress
Project Management
Project Management Reports
• Quarterly Progress Report (QPR) to Customer
• Monthly Progress Report (MPR)
• Configuration Status Report (CSR)
• Quarterly Progress Meeting (QPM)
• Project Reviews
• Monthly Subcontractor Status Meetings
• In-House Weekly Status Meetings
• Electronic Connectivity
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Project Management
Monthly Progress Report (MPR)
• Title_Page
• Table_of_Contents
• Program_Structure
• Controlled_Milestones_(optional)
• Narrative_Analysis
• Other_Analysis_(optional)
• Program_Financial_Status
• Action Item Status
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Project Management The “One Page Status Report” 1. Overall Strategy 2. Major Accomplishements 3. Areas
Project Management The “One Page Status Report” 1. Overall Strategy 2. Major Accomplishements 3. Areas
Project Management

Project Management

The “One Page Status Report”

1. Overall Strategy

2. Major Accomplishements

3. Areas of Concern

4. Next Steps

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Project Management 2. International Aspects of PM • International Co-operation at Government and/or Company Level,
Project Management
2.
International Aspects of PM
• International Co-operation at
Government and/or Company
Level,
• Differences: Languages, Currencies,
Culture, etc.
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Project Management International Project Cooperation • Definition of International Project Objectives •
Project Management
International Project Cooperation
• Definition of International Project Objectives
• Implementation of International Projects Teams
• International Cooperation Agreements
• Legal Implications for International Projects
• Recruitment of International Project Teams
• Collocated Project Office
• Communication Requirements
• Language to be applied
IMPRS, Katlenburg-Lindau, May 2005
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Madauss@2005
Project Management Problems of International Projects • Political Requirements & Restraints • Geographical
Project Management
Problems of International Projects
• Political Requirements & Restraints
• Geographical Distribution of Work
• Financial Return Concept
• Location of Project Management Office (PMO)
• Staffing Requirements of PMO
• Appointment of Project Manager
• Authority of appointed Project Manager
• Language to be applied
• Law and Rules to be applied
IMPRS, Katlenburg-Lindau, May 2005
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Madauss@2005
Project Management Typical Management Issues of International Projects Project Language Communication Issues
Project Management
Typical Management Issues of
International Projects
Project Language
Communication Issues
Cultural Differences
Project Organisation
Leadership Style
IMPRS, Katlenburg-Lindau, May 2005
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Madauss@2005
Project Management
Typical Management Issues of
International Projects
Different Currencies
Different Exchange Rates
Different Inflation Rates
Work Sharing Requirements
Important Legal Issues
IMPRS, Katlenburg-Lindau, May 2005
42
Madauss@2005
Project Management Language and Communication Issues Communications between Team Members – Need to Understand Each
Project Management
Language and Communication Issues
Communications between Team Members
– Need to Understand Each Other
– Applied Language(s) (E, F, G, R, S, PL, etc.)
– Openness to Communication
Terms & Definitions Applied
– Professional Language
– Terms, Definitions and Abbreviations
– Desire for understanding
IMPRS, Katlenburg-Lindau, May 2005
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Madauss@2005
43
Project Management
Language and Communication Issues
Understanding Each Other
– Expressions used
– Hidden Agenda(s)
Different interpretations
(personnel history)
Team Spirit
– Harmony of the Team
– Need for co-operation
IMPRS, Katlenburg-Lindau, May 2005
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Madauss@2005
44
Project Management Agree on Project Language Misunderstandings are often the Reason for Catastrophic Project Failures
Project Management
Agree on Project Language
Misunderstandings are often the Reason
for Catastrophic Project Failures
• Efficient Communication Requires that
only ONE single official Language is
applied
Important Project Terms and Definitions
need to be described
IMPRS, Katlenburg-Lindau, May 2005
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Madauss@2005
Project Management
Geographical Distribution
• Required Work Allocation
• Work Allocation Quota (percentage)
• Distribution of Noble Work
• Contracting to None Member States
• Financial Return
• Balance of Work Allocation
• Other considerations
IMPRS, Katlenburg-Lindau, May 2005
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Madauss@2005
Project Management Work Sharing Concept • Distribution of Work (Financial Constraints) • Just Return Concept
Project Management
Work Sharing Concept
• Distribution of Work (Financial Constraints)
• Just Return Concept (Political Requirements)
Noble versus None-Noble Work
(Competition)
• Avoid Complicated Interfaces (Complexity)
• Allow for Competition (Low Cost Solution)
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Madauss@2005
Project Management
Political Requirements and Restraints
• Military Requirements of Member States
• Restricted Transfer of Technology
• Political Restrictions of Member States
• Regulatory Requirements (international)
• Regulatory Requirements (national)
• Legal Requirements (international)
• Legal Requirements (national)
• Others Special Requirements
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Madauss@2005
Project Management Cultural Differences in International Projects – Difficulty to Judge Behaviour of International
Project Management
Cultural Differences in International
Projects
– Difficulty to Judge Behaviour of
International Partners
– Difficulty to Judge Heritage and of
International Partners
– Trustworthiness of International Partners
– Unforeseen Circumstances not known
IMPRS, Katlenburg-Lindau, May 2005
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Madauss@2005
Project Management
Cultural Differences in International
Projects
– Lack of Experience with International
Partners
– Communication (Distance, Language,
Culture, etc)
– Different Cultural and Educational
Background
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Madauss@2005
Project Management Cultural Differences in International Projects • International Projects are strongly Impacted by
Project Management
Cultural Differences in International
Projects
• International Projects are strongly
Impacted by Cultural Differences
• The Word “YES” may not have the
same Meaning at different Cultures
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Madauss@2005
Project Management
Cultural Differences in International
Projects
• Social and Educational Differences
Exist
• Solution (Welch, 2002): “Global
Training and Learning must become
a Top Priority at Globally Operating
Companies”
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52
Madauss@2005
Project Management 3. Management of High- Tech Complexity • Baseline Documentation, • Contractual Issues •
Project Management
3.
Management of High-
Tech Complexity
Baseline Documentation,
• Contractual Issues
• Specification,
• Interfaces,
• Work Statement
• Project Plans
IMPRS, Katlenburg-Lindau, May 2005
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Madauss@2005
Project Management
Baseline Documentation
• Project Contract (legal terms & definitions)
• System Specifications (technical definition)
• System Requirements Specification
• Subsystem Requirements Specifications
• Interface Specification
• Quality Assurance Specification
• AIT Specification
• Statement of Work (SOW)
• Description of Tasks to be performed
• Summary of Deliverables
• Deliverable Items List (DIL) (hardware & software)
• Document Requirements List (DRL)
• Document Requirements Description
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Madauss@2005
l Project Management Important Legal Issues • Scope of Work • Deliverables and Key Dates
l Project Management
Important Legal Issues
• Scope of Work
• Deliverables and Key Dates
• Price and Payment Conditions
• Intellectual Property Rights
• Termination for Convenience
IMPRS, Katlenburg-Lindau, May 2005
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Madauss@2005
Project Management
Baseline Documentation
Sample Table of Content of Project Contracts:
• Scope of Work (Reference to Specifications, SOW and Plans)
• Deliverables and Services and related Prices
• Project Options
• Payment Schedules
• Delivery Dates and Adjustments for late Deliveries
• Progress and Status Reports
• Inspection and Acceptance
• Project Changes and Change Control
• Rights in Data and Proprietary Information
• Intellectual Property Rights
• Subcontractors and Key Personnel
• Communications and Project Language
• Force Majeure
• Arbitration, Applicable Law
• Effective Date of Contract
• End of Contract and Termination
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Madauss@2005
Project Management Baseline Documentation Sample Table of Content of Space System Specifications: • Introduction •
Project Management
Baseline Documentation
Sample Table of Content of Space System Specifications:
• Introduction
• Space Segment
• Spacecraft Design (Satellite or Other Space Object)
• Spacecraft AIT
• Associated Ground Support Equipment (MGSE& EGSE)
• Transportation to Launch Site
• Ground Segment
• Ground Control Centre (GCC)
• Tracking System
• Services
• Software
• Spacecraft Software
• GCC Software
• Software Acceptance (End-to-End-Tests)
• Software Operating Procedures
• Launch and Launch Support
• Launch Vehicle Compatibility
• Launch Site Support
• Post-Launch Support
• Project Reviews (PDR, CDR, FRR, MRR, FAR)
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Madauss@2005
Project Management
Baseline Documentation
Sample Table of Content of a Statement of Work:
• Introduction (Purpose)
• Scope
• General Background
• Technical Requirements,
• Constraints
• Applicable Documents
• Reference Documents
• Task description
• Engineering Tasks
• Design (Hardware and Software)
• Development
• Prototyping
• Tests
• Prototype Manufacturing
• Prototype Testing
• Reporting and Documentation
• Project Management
• Project Deliverable Items List (DIL)
• Hardware
• Software
• Contract Document Requirements List (CDRL)
• Data Requirements Description (DRD)
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Madauss@2005
Project Management Baseline Documentation • Project Plans • Work Breakdown Structure (WBS) • • •
Project Management
Baseline Documentation
Project Plans
• Work Breakdown Structure (WBS)
• • • Project Project Project Time Cost Milestone Plans Schedules List
• Project Control Plan
• Schedule Control
• • Earned Cost Control Value Analysis
• • Configuration Documentation Control Control Plan Plan
• • • Facility Assembly, Design & Plan Development Integration & Plan Test (AIT) Plan
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Madauss@2005
Project Management
Project Management & Control
• Status Control
• Technical Achievements
• Critical Areas
• Documentation
• Engineering Changes
• Schedule (Actual vs. Plan, Critical Path)
• Actions
• Financial Status
• Contractual
• Status vs. Planning
• Deviations to Plan
• Corrective Actions & Resolutions
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Madauss@2005
Project Management Project Management & Control • Analysis • Impact to entire Project • Consequences
Project Management
Project Management & Control
Analysis
• Impact to entire Project
• Consequences to Project Goal
• Decisions to be taken
Management Decisions
• Change of Project Baseline
• Technical Requirements
• Schedule Restraints
• Financial
• Contractual
• Change of Project Plans
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Madauss@2005
Project Management
4.
Organizational Aspects
• Structures,
• Multiple Teams & Disciplines,
• Different Skills,
• Responsibilities & Authorities,
• Location & Staffing
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Madauss@2005
Project Management Organizational Structures Integration and Leadership of Tasks Integration & Leading of Total
Project Management
Organizational Structures
Integration and Leadership of Tasks
Integration & Leading
of Total Project
X ?, Y? or a 3. Person ?
Task „A“
Task „B“
• Description
Description
• Interface ?
Interface ?
• Leader X
Leader Y
Interface A/B
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Madauss@2005
Project Management Implementation of Organizational Structures Integration and Leading of Organizational Units at
Project Management
Implementation of Organizational Structures
Integration and Leading of Organizational Units
at different Levels
„Total Task“
Description
• Interfaces
Integration & Leading
„Manager“ of
Leader W
Total Task
Task „A“
Task „B“
Task „C“
Task „D“
Task „E“
Description
Description
Description
Description
Description
Interface ?
Interface ?
Interface ?
Interface ?
Interface ?
Leader X
Leader X
Leader X
Leader X
Leader X
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Madauss@2005
Project Management Two Way Communication between Management and Working Level Management Level UP DOWN Lateral
Project Management
Two Way Communication between
Management and Working Level
Management Level
UP
DOWN
Lateral
Working Level
IMPRS, Katlenburg-Lindau, May 2005
65
Madauss@2005
Project Management Matrix Organisation Company Management R & D Productio n Te st Mark etin
Project Management
Matrix Organisation
Company
Management
R & D
Productio
n
Te
st
Mark
etin
g
Financ
e
Proje
ct
A
Proje
ct
B
Proje
ct
C
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Madauss@2005
Project Management PM Tasks and Responsibilities Core Team • Systems Engineering Management (SEM) • Project
Project Management
PM Tasks and Responsibilities
Core Team
• Systems Engineering Management (SEM)
• Project Control Management (PCM)
• Product Assurance Management (PAM)
• Configuration Control Management (CCM)
• Documentation Control Management (DCM)
• Contracts Officer (CO)
• Others as required
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Madauss@2005
Project Management
Sample Program Organisation
Program Management
(PM)
Business
Management
Contract Adm.
Reliability
Schedule C.
Availability
Budget C.
Quality
Configurat. C.
Overall System
Satellite
Ground
Network
Co-Ordination
Engineering
Engineering
Engineering
Mission Statement
Overall Planning
Requirements
Overall I/F Control
Commonality
Requirements
Requirements
Requirements
Design
Design/Dev.
Design/Dev.
S/C Procurement
Procurement
Procurement
Launcher Proc.
Acceptance
Acceptance
Acceptance
Project Control
Project Control
Project Control
Product Assur.
Product Assur.
Product Assur.
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Madauss@2005
Project Management Project Management (PM) Tasks and Responsibilities The PM has following Responsibilities • He
Project Management
Project Management (PM) Tasks and
Responsibilities
The PM has following Responsibilities
• He is the head of the Project Management Office (PMO)
• He is fully authorized to
• plan,
• monitor and
• control the project work
• He is responsible for meeting contractual requirements
• He maintains cognizance of the progress of the project
• The PM will be supported by PMO staff core team
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Madauss@2005
Project Management
Authority of Project Managers
• Responsibility and Authority must be balanced
Required Authority of Project Managers
• Definition of overall project objectives,
• Appointment and/or acceptance of core team members,
• Definition/Implementation of project plans,
• Definition/Implementation of resources and budgets
• Control of implemented plans, resources and budgets
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Madauss@2005
Project Management Organization of International Projects • A logical Structures with unambiguous Responsibility
Project Management
Organization of International Projects
• A logical Structures with unambiguous
Responsibility Assignments is mandatory
• The Project Manager must be the ONLY
Focal Point for all Official
Communications
• The Project Manager must be supported
by Key Personnel and Experts
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Madauss@2005
Project Management
Location and Staffing of the PMO
• Suggested Location:
1. Vicinity of the Prime Contractor or
2. Geographically central location
• Suggested Staffing Requirements:
1. Management Qualification
2. Experience (national projects)
3. Experience (international projects)
4. Availability
• Application of Common Language
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Madauss@2005
Project Team Classical „Turn-Key Project“ Concept Problem: Most Primes can not take full Risks! Prime
Project Team Classical „Turn-Key Project“ Concept Problem: Most Primes can not take full Risks! Prime
Project Team Classical „Turn-Key Project“ Concept Problem: Most Primes can not take full Risks! Prime

Project Team

Classical „Turn-Key Project“ Concept

Problem: Most Primes can not take full Risks!

Prime Contract Sub- Contracts Subcontractor "D"
Prime
Contract
Sub-
Contracts
Subcontractor
"D"
Prime Contract Sub- Contracts Subcontractor "D" Turnkey Contractor Subcontractor "B" Subcontractor

Turnkey

Contractor

Contracts Subcontractor "D" Turnkey Contractor Subcontractor "B" Subcontractor "C"
Contracts Subcontractor "D" Turnkey Contractor Subcontractor "B" Subcontractor "C"
Subcontractor "B"
Subcontractor
"B"
Subcontractor "C"
Subcontractor
"C"

Subcontractor

"A"

Conclusion: Find Solution for Risk Sharing!

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73

Solution for Risk Sharing! IMPRS, Katlenburg-Lin dau, May 2005 Madauss@2005 73 Turnkey Contractor Takes entire Risk
Turnkey Contractor Takes entire Risk
Turnkey Contractor
Takes entire Risk
Project Team Start of Consortia • The Idea has Originated by Banks in the 30th
Project Team
Start of Consortia
• The Idea has Originated by Banks in the 30th
• Reason: to Cope with High Risks
• Requires: Consortia Contract
• Rights
• Obligations
• Rules & Regulations
• A Consortia may act like a Company
• Two Types of Consortia exist:
• The ‚Open Consortia‘ – All Partners Communicate External
• The ‚Closed Consortia‘– Only The Prime Communicates External
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Madauss@2005
Project Team Open and Closed Consortia CUSTOMER Open Consortia Closed Consortia Prime Subs IMPRS,
Project Team
Open and Closed Consortia
CUSTOMER
Open Consortia
Closed Consortia
Prime
Subs
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Madauss@2005
Project Team Classical Project Consortia Customer Organisation All Companies have equal Rights at the BOM
Project Team Classical Project Consortia Customer Organisation All Companies have equal Rights at the BOM
Project Team Classical Project Consortia Customer Organisation All Companies have equal Rights at the BOM

Project Team

Classical Project Consortia

Customer

Organisation

All Companies have equal Rights at the BOM 2. Prime-Contract
All Companies have equal
Rights at the BOM
2. Prime-Contract

Consortia

BOM

of Companies

"A"+"B"+"C"+"D"+"E"

Prime

Contractor

Company

"A"

1. Contract of Consortia

Subcontractor "B"
Subcontractor
"B"

3. Sub-Contracts

of Consortia Subcontractor "B" 3. Sub-Contracts Subcontractor "C" Subcontractor "D"
of Consortia Subcontractor "B" 3. Sub-Contracts Subcontractor "C" Subcontractor "D"
of Consortia Subcontractor "B" 3. Sub-Contracts Subcontractor "C" Subcontractor "D"
of Consortia Subcontractor "B" 3. Sub-Contracts Subcontractor "C" Subcontractor "D"
Subcontractor "C"
Subcontractor
"C"
Subcontractor "D"
Subcontractor
"D"
Subcontractor "E"
Subcontractor
"E"

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76

Risk Sharing through Implementation of Consortia!

"E" IMPRS, Katlenburg-Lin dau, May 2005 Madauss@2005 76 Risk Sharing through Implementation of Consortia!
CEO‘s of Parent Companies Subcontracts to Parent Companies
CEO‘s of
Parent
Companies
Subcontracts
to Parent
Companies
of Parent Companies Subcontracts to Parent Companies Project Team Management Company with imbedded Integrated
Project Team

Project Team

Management Company with imbedded Integrated Project Team (IPT)

Customer

Organisation

Prime

IPT Staff & Key Personnel: (1) Delegated from Parent Companies or (2) Hired
IPT Staff & Key
Personnel: (1)
Delegated from
Parent Companies
or (2) Hired
Subcontractor "D"
Subcontractor
"D"

Sub-

Contracts

Executive Board of the Management Company "A"+"B"+"C"+"D"

Contract

Management Company CEO

Assigned IPT- Personnel

"A"+"B"+"C"+"D"

"A" + "B" + "C" + "D" Subcontractor "B" Subcontractor "C"
"A" + "B" + "C" + "D" Subcontractor "B" Subcontractor "C"
"A" + "B" + "C" + "D" Subcontractor "B" Subcontractor "C"
"A" + "B" + "C" + "D" Subcontractor "B" Subcontractor "C"
Subcontractor "B"
Subcontractor
"B"
Subcontractor "C"
Subcontractor
"C"

Subcontractor

"A"

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77

Subcontractor "C" Subcontractor "A" IMPRS, Katlenburg-Lin dau, May 2005 Madauss@2005 77
Subcontractor "C" Subcontractor "A" IMPRS, Katlenburg-Lin dau, May 2005 Madauss@2005 77
Project Team Inter-Company Matrix Organization IPT Parent Companies: A B C D E Project A
Project Team
Inter-Company Matrix Organization
IPT
Parent Companies:
A
B
C
D
E
Project
A
Project
B
Project
C
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Madauss@2005
Project Management Concept of the ‘Integrated Project Team’ (IPT) • Responsibility of IPT • Hosting
Project Management
Concept of the ‘Integrated Project
Team’ (IPT)
• Responsibility of IPT
• Hosting Organisation
• Leadership of IPT Project Manager
• Recruiting of IPT Project Manager
• Reporting of IPT Project Manager
• Recruiting of IPT Team Members
• Reporting IPT Team Members
• Overall Control by IPT Project Board
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Madauss@2005
Project Management Definition of the EEIG (European Economic Interest Group) EEIG is an association linking
Project Management
Definition of the EEIG
(European Economic Interest Group)
EEIG is an association linking organizations from
different countries within the European Community
together which have a need for cooperation
EEIG’s work within a neutral legal framework that is
independent of individual national legal systems
An EEIG is legally separate from the business of its
owners, although it exists to carry out tasks for them
An EEIG must be made up of parties from two or more
EC member states with their registered office in an
EC country
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Madauss@2005
Project Management 5. Project Staff • PM-Functions, • Leadership Style, • Appointment of Project Manager,
Project Management
5.
Project Staff
• PM-Functions,
• Leadership Style,
• Appointment of Project Manager,
• Motivation Factors
IMPRS, Katlenburg-Lindau, May 2005
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Madauss@2005
Project Management
Project Management Functions
• System Engineering
• Subsystem Engineering
• Interface Control
• Product Assurance
• Project Planning & Control
• Schedule Control
• Resource and Cost Control
• Earned Value Analysis
• Documentation/Configuration Control
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Madauss@2005
Project Management Leadership Style of International Projects • The Selected Leadership Style may become a
Project Management
Leadership Style of International
Projects
• The Selected Leadership Style may become a
Success Factor or the Opposite
• The chosen Leadership Style must support
an Open Dialog
• Managers and their Staff must frequently
Exchange all Important Information
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Madauss@2005
Project Management
Applied Leadership Style
Examples
• Management by Participation – applicable
to Soft Projects
• Management by Consultation – applicable to
R&D Projects
• Management by Authority – applicable to
Commercial Projects
• Management by Dictation – applicable to
Project Crisis only
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Madauss@2005
Project Management Leadership Style of International Projects • The assigned Project Manager of a Global
Project Management
Leadership Style of International
Projects
• The assigned Project Manager of a
Global Project must be a good Team
Player
• “The best Leaders don’t just Manage
but Lead” (Welch, 2002)
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Madauss@2005
Project Management
Appointment of Project Manager
Recruitment Criteria
• Qualification
• Management Experience
• International Project Experience
• Management Skills
• Psychological Skills
• Language Skills
• Political Considerations
• Availability
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Madauss@2005
Project Management Motivation is an important Responsibility of Project Managers (Motivation Factors defined by
Project Management
Motivation is an important Responsibility
of Project Managers
(Motivation Factors defined by Herzberg)
Success
Recognition
Independent Work
Responsibility
Career
Personnel Development
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Madauss@2005
Project Management
Recommended Follow-On Actions
Implement a “Project Management (PM) Entity”
at your Organization
Prepare and Implement a “PM Handbook” or
Guideline for your Organization
Perform internal “PM-Seminars and –
Workshops” for all Staff concerned
Perform Regular Project Reviews “Weekly
Progress”, “Monthly Project Status”, “Design
Reviews”, “Acceptance Reviews”, etc.
Implement a “Formal Status Reporting and
Information System” to upper Management
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Madauss@2005
Project Management Recommended Project Management Literature Kerzner, Project Management & Study Guide, 8th
Project Management
Recommended
Project Management Literature
Kerzner, Project Management & Study Guide, 8th
Edition
Madauss, Projektmanagement, 7th Edition, 2005,
German
Verzuh, The Fast Forward MBA in Project
Management, 1999
Terry, Principles of Management, 7th Edition
ESA, Space Project Management, ECSS-M Series
PMI, PMBOOK
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