PROJECT MANAGEMENT

ANUPAM KRISHNA BE, MBA PHD(MNIT)

What is Project Management?

(Robert K. Wysocki / Robert Beck Jr. / David B. Crane, Effective Project Management, 2. ed., John Wiley & Sons, 2002, p. 79).

What is Project Management?

(Harold Kerzner, Project Management: A Systems Approach to Planing, Scheduling and Controlling, John Wiley & Sons, Inc., New York et. al., 7. ed, 2001, p. 4)

Look at Projects in Their Broader Context!

(Chinese Philiosopher Confucious) 551 B.C 479 B.C

Recommended Course Text Books

Project Management: Strategic Design and implementation David I. Cleland & Lewis R. Ireland McGraw Hill, 4th edition, 2002 ISBN: 0-07-139310-2 Project Management: The Managerial Process Clifford F. Gray & Erik W. Larson MGraw Hill, 3rd edition, 2006 ISBN: 0-07-060093-7 Project Management: A Managerial Approach Jack R. Meredith & Samuel J. Mantel, Jr. John Wiley & Sons, 6th edition, 2006

ISBN: 0-471-74277-5

Who Should Study Project Management?

Anyone who is directly or indirectly involved in initiating, planning, implementing, monitoring, evaluating and/or controlling a project in a position which involves a substantive level of decisionmaking, responsibility, communication and coordination, should be thoroughly familiar with all the subject areas and methodology, processes and tools and techniques of project management. A good and common project management knowledge platform will increase the likelihood of the project attaining its goal within time and budget.

Who Should Study Project Management?

At the very least a projects key stakeholders i.e., its sponsor, manager, team members, consultants, external suppliers and contractors, the senior and resource managers of the organization(s) which are implementing the project and the project customers / users - should all understand the methodology being used to undertake the project.

Professionals Who Should Be Thoroughly Familiar With Project Management (Examples)

Managers
Architects Consultants Economists Development Officials Engineers Government Officials IT Professionals Natural & Social Scientists Public Administrators Policy Makers

Researchers

In the course of their professional lives, these persons would normally be directly involved in a large number of projects

Terminology

Basic Terminology Projects Subprojects Programmes

Many definitions for these words have been proposed.

Portfolios
Processes

Project Management

Sample definitions along with practical examples are contained in the following slides.

What is a Project? (Definition #1)

(Guide to the Project Management Body of Knowledge, the Project Management Institute, 3rd. Ed., 2004, p. 5)

What is a Project? (Definition #2)

(Robert Wysocki / Robert Beck Jr. / Daniel B. Crane: Effective Project Management, John Wiley & Sons, 2002, p.65)

What is a Project? (Definition #3)

(Clifford F. Gray / Erik W. Larson, Project Management: The Managerial Process, 2. ed., p. 15)

What is a Project? (Definition #4)

(J.R. Turner, The Handbook of Project-Based Management: Improving Processes for Achieving Your Strategic Objectives, Mcgraw Hill: New York, 1992)

What is a Project? (Definition #5)

(David I. Cleland / Lewis R. Ireland, Project Management: Design and Strategic Implementation, 4th ed., p. 10)

What are Subprojects?

Subprojects are smaller, more manageable components of larger, more complex projects Subprojects have their own goals and outputs or deliverables which together constitute the final deliverable. Subprojects have, analogous to the main project in which they are integrated, their own scope, schedules, costs, human resources, risks etc. Subprojects are comprised of project team members and are headed by subproject managers who, similar to the project manager, must have excellent decision-making, communication and other requisite skills, and be in a position to manage the implementation of the subproject work effectively and efficiently.

Subprojects Example: The Sydney Olympic Games 2000

Events Venues, Facilities Accommodation Transport Media Facilities and Coordination Telecommunications Security Arrangements Medical Care Human Resources and Volunteers Cultural Olympiad Test Games and Trial Events Sponsorship Management

Pre-Games Training

IT-Projects
Opening and Closing Ceremonies Public Relations

Financing

The Sydney Olympic Games 2000 was a highly complex project which comprised several distinct work areas, each of which could be considered as subprojects, in their own right, and which all had to be integrated and coordinated within the framework of the overall olympic project.

The Project Portfolio

The project portfolio is the set of projects which an organization is undertaking. Projects usually differ in their type, complexity, cost, time requirement, risk level, priority, etc.

The projects comprising the portfolio may be in various stages of initiation, planning, and implementation

What is a Process?

What is a Process?

According to the Project Management Institute, a process can be defined as:

Project Management Process Illustration

PROCESS INPUTS (Typical) Process Maturity, Methodology, Benchmarking and Optimization, Constraints, Templates, Infrastructure, Policy and Cultural Framework
PROCESS OUTPUTS (Selected Examples)

Information

Project Business Case

Technology

PROCESS STEPS

Opt. Project Portfolio Mix

Qualitative & Quantitative Tools Outputs of Other Processes

Project Feasibility Report

Project Master Plan (or Subsidiary Plans) Customer Change Request Revised Cost and Schedule Baseline

Material Inputs

Transformation of Inputs to Outputs

Stakeholder Interaction

TIME & COST

Process Effectiveness and Efficiency

Requests, Instructions

Project Status Report

Quality of Process Inputs, Knowledge, Competence, Experience, Insight, Ability, Communication, Cooperation, Coordination

Given that the output of one project management process normally becomes input to another, deficiencies in one or more processes will consequently reverberate across the entire process chain

Project management uses processes extensively to produce deliverables (see small sample above). Some processes are quite complex and have a high risk of error.

Project Management Process Diagramme (Screening A Project)

Project Proposal Idea

Data Collection and Back-Up

Need / Strategic Fit/ ROI / Payback Risk

Self-Evaluation of Project Criteria

Periodic assessment of Priorities

Priority Team Evaluates Proposal and Reviews Portfolio for Risk Balance

Return for More Information

Reject

Hold for Resources

Assign Priority, resources, Project Manager & Evaluate Progress

Organization

Organization

Organizational Objective

Organization Organizational Use of Technology

Organizational Objective

Focus on Processes Systematically

All project management processes should be identified and described, with each process task carefully analyzed in terms of its input(s) and output(s) plus its estimated cost, duration and risk factors, graphically illustrated and subsequently documented for reference by project stakeholders in a project process directory. This directory should be periodically revised and the processes therein modified, simplified or, where necessary, reengineered to improve their effectiveness and efficiency.

WHAT IT IS
Project

management is the discipline of planning, organizing, securing and managing resources to bring about the successful completion of specific project goals and objectives.

What is a project?
A

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definitive deliverable (objective and goal) Takes time Consumes resources A definite starting date A definite stopping date Consist of processes Proceeds through milestones Utilizes teams Based on personal integrity and trust

Texas Tech University -- J. R. Burns

INTRODUCTION

A project is a temporary endeavor, having a defined beginning and end (usually constrained by date, but can be by funding or deliverables),undertaken to meet unique goals and objectives, usually to bring about beneficial change or added value. The temporary nature of projects stands in contrast to business as usual (or operations),which are repetitive, permanent or semi-permanent functional work to produce products or services.

OBJECTIVES
PRIMARY scope, time, and cost. SECONDARY optimize allocate and integration of inputs necessary to meet pre-defined objectives.

Project Management: Official Definition

A project is a temporary endeavor undertaken to create a unique product or service. It implies

a specific timeframe a budget unique specifications working across organizational boundaries

Why is this, Project Management , more difficult today?

Change
Business Dimension Change Business Environment Project Management (PM)

Project Management
Project management is about organization

Project management is about decision making Project management is about changing peoples behavior

Project management is about creating an environment conducive to getting critical projects done!

Why Projects Fail

Failure

to align project with organizational objectives Poor scope Unrealistic expectations Lack of project management Inability to move beyond individual and personality conflicts Politics

Why Projects Succeed!

Good

project charter Strong project management The right mix of team players Good decision making structure Good communication Team members are working toward common goals

 If

you want to get things done, you need a good blend of

Business

knowledge People management Knowledge of organizational politics area of technical expertise

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What is the record in IT project management in USA?

Until

1996, less than 25% of IT projects were successful After 1998 roughly 30% of IT projects were successful More than 80 billion a year wasted on terminated projects in the 90s For projects that were not completed on time, they were 225% over their intended completion date
According to the CHAOS 1995 Report

Team management
Those

are the people that make things happen!

Destructive Team Member Profiles

The

Tank: a person who dominates a discussion or issue by brute force of personality. When they present, they speak as an authority. When dealing with a project and defining new solutions, these types of people can be destructive to the process of open discussion and consideration of alternatives.

Solution: thank them for their opinion, then ask if there are some other perspectives from other team members.

Destructive Team Member Profiles

The

Grenade: The conversation will be going along fine and all of the sudden, a team member lobs out a discussionending comment.

Solution: Address the comment head on and suggest that the grenade thrower refrain from comments that will upend conversation of alternatives.

Destructive Team Member Profiles

The

Think-they-know-it-all: Much like the tank.

Solution: Same as Grenade.

Destructive Team Member Profiles

The

Maybe Person: This is the person who cannot commit to any position or issue. They take refuge in ambiguity.

Solution: On a project team, you need to help them commit. Give them simple alternatives and ask them to decide.

Destructive Team Member Profiles

The

No Person: This is your general naysayer. Nothing will work, no matter what.

Solution: Help to see that no is not an option. Define the alternatives.

Destructive Team Member Profiles

The

Sniper: This is a destructive force in a team. The Sniper tenders up negative comments within the team that negate or attack ideas.

Solution: address the behavior immediately and let them know that comments like that are unacceptable based on team norms.

Destructive Team Member Profiles

The

Yes Person: While less negative, this person is so agreeable that they negate their influence through a lack of objective analysis. They are more eager to please than they are to offer objective alternatives.

Solution: Point out that you appreciate their positive outlook, but they need to explore options more thoroughly if they want to gain credibility with the group.

Destructive Team Member Profiles

The

Traitor: Team member speaks very little in meetings, or sometimes disagrees, and spends times out of meetings lobbying for alternative positions or arguing decisions made by the team

Solution: Establish team rules early that state that issues are dealt with in team meetings and this behavior is not acceptable. When it is uncovered, PM addresses it in the meeting or, if necessary, in private

Destructive Team Member Profiles

The End Arounder: Team member who goes around team and PM to another supervisor or administrator and complains, lobbies or takes alternative positions to team.

Solution: Identify the behavior in team development and make it known it is not acceptable. Get all administrators and supervisors to suppress the behavior if it occurs. PM should call it when its seen and the Project Sponsor should nip it in bud.

Providing Feedback to Team Members

Praise

in public Punish in private

History

Project Management developed from several fields of application including civil construction, engineering, and heavy defense activity Henry Gantt, called the father of planning and control techniques, Gantt chart as a project management tool Henri Fayol, 5 management functions, work breakdown structure (WBS) and resource allocation.

The evolution or development of project management can be divided into five periods.
Prior

to 1950 managed on an ad hoc basis not responsible for the project failure 1950S to 1960S tools including CPM and PERT were introduced Projects In defense

1960 to 1979 technology revolution Material Requirements Planning (MRP) were also introduced the Project Management Institute (PMI) was formed 1980 to 1990 implementation of TQM Project Management Body of Knowledge (PMBOK Guide) competitiveness and customer expectations

empowerment, re-engineering, and scope change control and risk management. 2000 to Present Use of internet and intranet project management became a major challenge Concept of Six Sigma many tools & techniques and worldwide standards Whilst the 1980's were about quality and the 1990's were all about globalisation, the 2000's are about velocity

Characteristics of projects

Objectives Life span Single entity Team work Life cycle Uniqueness Change Successive principle Made to order Unity in diversity High level of sub-contracting Risk and uncertainty

Without PM

Objectives not properly defined and agreed; Lack of communication and stakeholder management; Outcomes and/or benefits not properly defined in measurable terms; Lack of quality control; Poor estimation of duration and cost; Inadequate definition and acceptance of roles (governance); Insufficient planning and coordination of resources.

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Some things we do poorly in projects

Establishing

deliverable Planning the proposed project Estimating step (TASK, ACTIVITY) )durations Budgeting the proposed project Executing
Dont

requirements for the project

understand change management Not communicating

Managing

subcontractors Monitoring project progress

Texas Tech University -- J. R. Burns

Classification of projects
According to geographical area National International According to industrialization Industrial Non industrial According to technology used Non- conventional/ R and D to conventional High technology to low technology

According to size of projects Mega Major Medium Mini According to nature of strategy New product Expansion Modification

Project Dynamics: The Triple Constraints

Cost

Scope Quality
Resources

Time

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Project phases

Who, what, when, and why for projects

A defined and sponsored project scope A roadmap for deliverables Documented roles and responsibilities A common language for communication relative to project phases, tracking and reporting Processes to enable communication, accomplish the work, facilitate issue resolution and risk mitigation
Project management processes and tools help the project manager and team to organize, document, track and report on project tasks and progress.

Questions
Who,

for whom, with whom, etc.? What? Why? Where? When? How

Concrete objectives
SMART: Specific Measurable Achievable Realistic Timed

1.Project conceptualizing
o

o
o o o o o

Project name, location, duration Rationale (stating needs) Organisations priorities, funders priorities General aim Concrete/specific objectives Methodology/strategy Plan of activities

2. Project planning and budgeting

o o o o o o o o

Main outcomes Expected results Added value of the project Evaluation criteria, technique Sustainability, multiplicatory effects Resources: financial (budget), material (budget), human (team and partners) Publicity Information about the organisation (contact info)

3. Implementation
Implementing

and executing activities for Managing resources: human, material/technical, financial, time communication Team work Book-keeping and accounting Process documentation, records Continuous monitoring, feedback

4. Evaluation
Final evaluation vs. continuous monitoring Using originally planned methods Summing up results, objectives, activities,

fulfilled expectations Formal documentation (reports, brochures) Internal lessons documented (manuals) Acknowledgments Closing accounting Follow-up

The Stages in the Project Management Lifecycle

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STAGE 1: Conceptualizingand-Defining STAGE 2: Planning-andBudgeting

STAGE 4: Monitoring-and-Controlling

STAGE 3: Executing STAGE 4: Monitoring-and-Controlling

STAGE 5: Terminating-andClosing

Texas Tech University -- J. R. Burns

76

Project Framework
Initiate Prepare Execute & Control
Track & Control

Close

Scope Management Workplan Management

Startup

Definition / Scope / Requirements

Planning and Resource Allocation

Resource Management (Time, Cost, People) Deliverable Mgmt Quality Management Transition Plan Int/Ext Vendor Management

Reporting

Completion & Assessment

Review

Risk & Issue Management Sponsor Management Communication Management

77 Basic Project Management: Five Steps

The following steps comprise the project management roadmap. The steps may overlap and be iterative:
1.
2. 3. 4.

5.

Startup Define and Confirm Scope/Requirements Develop Plan and Secure Resources Track, Control, Report and Review Completion and Assessment

Communication, Risk and Issue Management, and Sponsor Management are essential throughout the project -- both planned and spontaneous.

Step 1: Startup

78

As you engage potential team members and stakeholders, project initiation activities establish the scope, goals and preliminary plan.

Key Activities

Document and/or confirm scope and assumptions Confirm sponsorship and funding Draft high level plan Identify who needs to provide input into plan and resources

Checklists to consider

Project Startup and Sponsor

Templates to consider

Project Scope, Gantt Chart and Resource Planning Project role descriptions

79

Step 2: Confirm Scope and Define Requirements

Engage your sponsor and business stakeholders to confirm the project scope and clarify business requirements. It is also the time to identify the technical requirements with the appropriate providers (as necessary).

Key Activities

Confirm baseline project scope with Sponsor Define, document and confirm business and technical requirements Identify impact on business processes Identify whats not in scope

Checklists to consider

Sponsor

Point to consider

Project Scope

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Step 3: Develop Plan and Secure Resources

The initial detailed project plan will provide a project roadmap and baseline for all team members and stakeholders. As the project evolves, the plan may need to refined.

Key Activities

Identify who needs to provide input into plan Develop preliminary detailed plan based on scope, requirements, etc. Identify skills sets needed to accomplish tasks Develop communication plan Identify and secure resources Conduct meeting with Sponsor Conduct risk assessment with team members Identify the criteria for stopping the project Update detailed plan

81

Step 3: Develop Plan and Secure Resources (contd)

Checklists

to consider

Project Planning Deliverable and Quality Assurance Transition

Points

to consider

Activity

list Detailed project plan Project Resource Plan Communication matrix Project Risk Assessment

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Step 4: Track, Control, Reporting and Review

Once you kick off the project, the track, control, reporting and review activities will be iterative and comprise the bulk of the project management tasks.

Key Activities

Implement communication plan

Hold regular team meetings to: share progress/status identify/resolve issues Hold formal sponsor updates Keep your manager informed Keep stakeholders informed

Monitor progress and report status Monitor risks and take action as necessary Identify and manage issues Tracking the project will give you Manage scope and track changes the information necessary to assess the health of the project, Update plan as needed
as well as give you the information for reporting status to the sponsors and stakeholders.

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Step 4: Track and Control, Report and Review (contd)

Checklists to Consider Sponsor Transition Points to Consider Project scope change Communication matrix Project status snapshot Detailed Project Plan Risk Assessment Issue Log

A quick review of the sponsor checklist may help you prepare for your sponsor and stakeholder update meetings.

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Step 5: Completion and Assessment

The following activities will help to ensure a smooth transition and leverage lessons learned for future projects.

Key Activities Develop a cutover plan or checklist, if applicable Complete documentation, training, and knowledge transfer Conduct final project review Conduct sponsor sign-off Transition to support/service organization or next project team Close-out final tasks and issues Conduct lessons learned Celebrate success
Accomplishing what the project set out to do is a success.

What are the criteria for success in Project management?

Completion

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on time Completion within budget Completion with full functionality

Texas Tech University -- J. R. Burns

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Who are the STAKEHOLDERS??

Customers

Project
Users

Sponsor

Project

team Support staff Suppliers Opponents People involved-in or affected by project activities
Texas Tech University -- J. R. Burns

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Advantages of Project Management

Better

control of human resources Improved customer relations Shorter development times, lead times Lower costs Higher quality Higher profit margins Improved productivity
Texas Tech University -- J. R. Burns

New Business Environment

Change

at ever faster pace Globalization/Internet Intense Competition leading to

Downsizing, flattening Team approach, empowerment E-Commerce, outsourcing

New Project Management

Need

to enhance traditional PM to:

become more customer focused utilize new tools & softer skills empower/select project managers
decision

making profit-loss responsibilities entrepreneurial approach business know-how

A process approach Continuous improvement Small steps

W Edwards Deming

Demings 14 Points
1.Constancy Of Purpose 2.The New Philosophy 3.Cease Dependence On Inspection 4.End Lowest Tender Contracts 5.Improve Every Process 6.Institute Training On The Job 7.Leadership 8.Drive Out Fear 9.Break Down Barriers 10.Eliminate Exhortations /Slogans 11.Eliminate Arbitrary Numerical Targets 12.Permit Pride Of Workmanship 13. Education 14.Top Management Commitment

Risk management
Risk

management is concerned with identifying risks and drawing up plans to minimise their effect on a project. A risk is a probability that some adverse circumstance will occur

Project risks affect schedule or resources; Product risks affect the quality or performance of the project being developed; Business risks affect the organisation developing or procuring the project.

Risk

Staff turnover

Project risks
Affects Project Project Project Project and product Project and product Project and product Product Business Business

Description Experienced staff will leave the project before it is finished. There will be a change of organisational management with different priorities. Resources that is essential for the project will not be delivered on schedule. There will be a larger number of changes to the requirements than anticipated. Specifications of essential interfaces are not available on schedule The size of the system has been underestimated. CASE tools which support the project do not perform as anticipated The underlying technology on which the system is built is superseded by new technology. A competitive product is marketed before the system is completed.

Management change resources unavailability Requirements change Specification delays Size underestimate CASE tool underperformance Technology change Product competition

The risk management process

Risk

Risk

Identify project, product and business risks;

Assess the likelihood and consequences of these risks; Draw up plans to avoid or minimise the effects of the risk; Monitor the risks throughout the project;

identification analysis

Risk

planning

Risk

monitoring

The risk management process

Risk identification
Technology

risks.

People

risks. Organisational risks. Requirements risks. Estimation risks.

Risk type

Technology

Risks and risk types

Possible risks

The database used in the system cannot process as many transactions per second as expected. components that should be reused contain defects that limit their functionality. It is impossible to recruit staff with the skills required. Key staff are ill and unavailable at critical times. Required training for staff is not available. The organisation is restructured so that different management are responsible for the project. Organisational financial problems force reductions in the project budget. Changes to requirements that require major design rework are proposed. Customers fail to understand the impact of requirements changes. The time required to develop the project is underestimated. The rate of defect repair is underestimated. The size of the project is underestimated.

People

Organisational

Tools Requirements Estimation

Risk analysis
Assess

risk. Probability may be very low, low, moderate, high or very high. Risk effects might be catastrophic, serious, tolerable or insignificant.

probability and seriousness of each

Risk analysis (i)

Risk Organisational financial problems force reductions in the project budget. It is impossible to recruit staff with the skills required for the project. Key staff are ill at critical times in the project. Project components that should be reused contain defects which limit their functionality. Changes to requirements that require major design rework are proposed. The organisation is restructured so that different management are responsible for the project. Probability Low High Moderate Moderate Moderate High Effects Catastrophic Catastrophic Serious Serious Serious Serious

Risk

Risk analysis (ii)

Probability Moderate High High Moderate Moderate Moderate High

Effects Serious Serious Tolerable Tolerable Tolerable Tolerable Tolerable

The database used in the system cannot process as many transactions per second as expected. The time required to develop the project is underestimated. Tools cannot be integrated. Customers fail to understand the impact of requirements changes. Required training for staff is not available. The rate of defect repair is underestimated. The size of the project is underestimated.

Risk planning

Consider each risk and develop a strategy to manage that risk. Avoidance strategies

The probability that the risk will arise is reduced; The impact of the risk on the project or product will be reduced; If the risk arises, contingency plans are plans to deal with that risk;

Minimisation strategies

Contingency plans

Risk management strategies (i)

Risk Organisational financial problems Recruitment problems Staff illness Defective components Strategy Prepare a briefing document for senior management showing how the project is making a very important contribution to the goals of the business. Alert customer of potential difficulties and the possibility of delays, investigate buying-in components. Make HR process smooth. Reorganise team so that there is more overlap of work and people therefore understand each others jobs. Replace potentially defective components with boughtin components of known reliability.

Risk management strategies Risk(ii) Strategy

Requirements changes Organisational restructuring Database performance Underestimated development time Derive traceabili ty information to assess requirements change impact, maximise information hiding in the design. Prepare a briefing document for senior management showing how the project is making a very important contribution to the goals of the business. Investigate the possibilit y of buying a higherperformance database. Investigate buying in components, investigate use of a program generator

Risk monitoring
Assess

each identified risks regularly to decide whether or not it is becoming less or more probable. Also assess whether the effects of the risk have changed. Each key risk should be discussed at management progress meetings.

Risk type

Risk indicators Potential indicators

Late delivery of hardware or support software, many reported technology problems Poor staff morale, poor relationships amongst team member, job availability Organisational gossip, lack of action by senior management Reluctance by team members to use tools, complaints about CASE tools, demands for higher-powered workstations Many requirements change requests, customer complaints Failure to meet agreed schedule, failure to clear reported defects

Technology People Organisational Tools Requirements Estimation

Key points

Good project management is essential for project success. The intangible nature of software causes problems for management. Managers have diverse roles but their most significant activities are planning, estimating and scheduling. Planning and estimating are iterative processes which continue throughout the course of a project.

Key points
A

project milestone is a predictable state where a formal report of progress is presented to management. Project scheduling involves preparing various graphical representations showing project activities, their durations and staffing. Risk management is concerned with identifying risks which may affect the project and planning to ensure that these risks do not develop into major threats.