Project Management course notes 1st semester

Simona Bonghez, Ph.D Loredana Radu, Ph.D, MBA

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Project?

A project is a temporary endeavor undertaken to create a unique product, service, or result (PMBOK Guide 4th Edition, p. 5) A temporary organisation for the performance of a relatively unique, short to medium term, strategically important process of medium or large scope (Happy Projects!, Gareis, R., Manz, Vienna 2006)

PM M Project A

PM Project B 2

Project characteristics
Temporary Definite beginning and definite end (... does not necessarily mean short in duration) Unique Product, Service, or Result ( although repetitive elements may be present in some project deliverables) A product can be either an end item in itself or a component item A capability to perform a service, such as business functions supporting production or distribution A result such as outcomes or documents (e.g. research project develops knowledge) Progressive Elaboration Means developing in steps, and continuing by increments

Project: A Social System

PROJECT CONTEXT
Project boundaries, project context Relative project autonomy, self-organising

What is Project Management?

The application of knowledge, skills, tools, and techniques to project activities in order to meet project requirements (PMBOK Guide 4th Edition, p. 6) Project Management is accomplished through the appropriate application and integration of the 42 logically grouped project management processes comprising the 5 process groups. These 5 process groups are: Initiating Planning Executing Monitoring &Controlling Closing (PMBOK Guide 5th Edition, p. 6)

Process Group

Knowledge Area Integration

Initiating 4.1 Develop Project Charter

Planning 4.2 Develop Project Management Plan

Executing 4.3 Direct and Manage Project Work

Monitoring & Controlling 4.4 Monitor and Control Project Work 4.5 Perform Integrated Change Control 5.5 Validate Scope 5.6 Control Scope

Closing 4.6 Close Project or Phase

Scope

5.1 Plan Scope Management 5.2 Collect Requirements 5.3 Define Scope 5.4 Create WBS 6.1 Plan Schedule Management 6.2 Define Activities 6.3 Sequence Activities 6.4 Estimate Activity Resources 6.5 Estimate Activity Duration 6.6 Develop Schedule 7.1 Plan Cost Management 7.2 Estimate Costs 7.3 Determine Budget 8.1 Plan Quality Management 9.1 Plan Human Resource Management 10.1 Plan Communications Management 8.2 Perform Quality Assurance 9.2 Acquire Project Team 9.3 Develop Project Team 9.4 Manage Project Team 10.2 Manage Communications

Time

6.7 Control Schedule

Cost

7.4 Control Costs

Quality HR

8.3 Control Quality

Communications

10.3 Control Communications

Risk

11.1 Plan Risk Management 11.2 Identify Risks 11.3 Perform Qualitative Risk Analysis 11.4 Perform Quantitative Risk Analysis 11.5 Plan Risk Responses
12.1 Plan Procurement Management 13.1 Identify Stakeholders 13.2 Plan Stakeholder Management 12.2 Conduct Procurements 13.3 Manage Stakeholder Engagement

11.6 Control Risks

Procurement Stakeholder

12.3 Control Procurements 13.4 Control Stakeholder Engagement

12.4 Close Procurements

Typical Cost and Staffing levels across the project life cycle

Cost and Staffing level

Starting the project

Organizing and preparing

Carrying out the work

Closing the project

Project Management Outputs

Project Charter

Project Management Plan

Time

Accepted Deliverables

Archived Project Documents

(PMBOK Guide 4th Edition, p.16)

Objects of consideration of project management

Scope

Schedule

Budget

Objectives, deliverables, schedule, resources, budget, income, risk Organisation, culture, personnel, infrastructure Context: Pre-, post project-phase, stakeholders, other projects, company strategies, business case

Project management and content activities What is wrong in the schedule below?

Work package Project management Detailed planning Implementation Test and training Initial operation Pilot operation Follow-up

months
1 2 3 4 5 6 7 P -Start 8 9 10 11 12 13 14 15 16 17 18 19 20 21 P -CloseDown -

Map of Processes: IT Company

Clients
Lead to AngebotsOpportunity legung
Contracting Service Auftrags Pre-Sales Abwicklung A Auftrags Proposal Preperation Abwiclung B Contract to Service Refernce Contact to Lead

Primary processes

Campaign to Lead

Business Markt Developforschung ment

Partner Develop ment

Product PR Develop ment

Service DevelopWerbung ment

PR Werbung

Secondary processes Tertiary processes

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charter of a Project

Project PortfolioManagement

Strategic Planning

Forecasting

Adequate organisations for different processes

Process characteristic Frequency Scope Importance Duration Resources Costs Number of organizations often small-medium low short few low-medium few

Attribute once medium-large medium-high short-medium some medium-high several-many once large high medium-long many high many

Type of organization Permanent organization

Project

Programme

Management approaches Process management

Project management

Programme management
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Example: Project definition of an Austrian Bank

Criterion
Strategic Importance Duration

Small Project
Small at least 2 months

Project
Medium to high at least 4 months

Programme
High at least 21 months

Organisations involved

at least 3 organisations (inclusive external partners)

at least 5 organisations (inclusive external partners)

at least 7 organisations (inclusive external partners)

Resources

at least 100 person-days at least 0,1 Mio

at least 200 person-days at least 1,0 Mio

at least 500 persondays at least 10 Mio

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Costs

Checklist for the Application of Methods in the Planning process group (example)

Application of Methods in the Planning Process Group Planning Methods Project objectives plan Objects of consideration plan Project work breakdown structure Project work package specification Project bar chart Project finance plan Project cost plan Business case analysis

Small Project

Project

must must must must

must must must must must must

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Multi-Methods Approach

The use of a multi-method approach relates to the project complexity. Different project management methods have be used depending on the project complexity. For different planning methods different levels of detail are necessary. Planning results can be standardised for repetitive projects. By relating methods to each other the project management quality is assured.

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Programme: Definition

A temporary organisation for the fulfilment of a unique process, which is of high strategic importance and time-limited. Programmes consist of projects and work packages which are closely coupled by programme structures.

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Programme: Examples

Programme Name

Programme Objective

Company sterreichische Bundesbahnen Landeskliniken Salzburg Statoil PMG und PROJEKT MANAGEMENT AUSTRIA Austrian Airlines

Railway stations initiative Revitalising of 40 austrian railway stations LKS 2000 Reorganisation of the Landeskliniken Salzburg Statoil SAP Implementation of SAP at Statoil programm I austria The austrian Project Managment-Initiative STAR 2000 Migration of SW -Systems of Lufthansa and AUA eBanking & eBrokerage Establisment of eBanking and eBrokerage-Companies Symphonie Merger of the banks Bawag and PSK

ABN AMRO
Bawag/PSK

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Different Types of Projects

Criterion Project type

Relation to processes
Industry

primary, secondary, tertiary processes

construction, engineering, IT pharmaceutical, NPO, etc.

Location

national, international

Content

customer relations, products and markets, infrastructure, personnel, organisation

study, conception, realisation, re-launch or maintenance unique, repetitive internal customer, external customer short-, medium-, long term
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Investment phase Degree of repetition Customer Duration

Projects in the Investment Life Cycle

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Case study

Project assignment/charter (project initiation document)

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Objects of consideration

Realization eApplication

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Titlu proiect Data demarare Manager proiect

Organizare eveniment Strike Force Competition 01.03.2012 Secretar Executiv ASA

Initiator proiect Data incheiere Proprietar proiect Non-obiective proiect

Asociatia Speciala de Airsoft 08.06.2012 Presedinte ASA

Obiective generale proiect Organizarea unei competitii de airsoft cu atragerea publicului minim 3 echipe, maxim 6 echipe (5 membri) maxim 100 spectatori data desfasurare: 2 iunie 2012 autofinatata Obiective de business

Instruirea participantilor la competitia de airsoft Formarea echipelor participante de catre organizatori Furnizarea de echipamente de protectie pe durata competitiei

Document de iniiere proiect / Project Charter

Promovarea imaginii Asociatiei Speciale de Airsoft Promovarea airsoft-ului in Romania Buget estimat 45.000 euro + 130 zile om Venituri Roluri in echipa de proiect Responsabil contracte Responsabil infrastructura competitie Responsabil program artistic si infrastructura aferenta Responsabil zone acces public Responsabil relatii publice si legatura cu agentia de organizare Responsabil desfasurare eveniment Ipoteze Ipoteze: Terenul va fi pus la dispozitie de MAI. Echipele inscrise detin autorizatiile si permisele necesare. Participantii indeplinesc conditiile de rezistenta fizica necesare acestui tip de competitie. Semnatura proprietar proiect Stakeholderi

Asociatia Speciala de Airsoft Cluburi sportive Participanti competitie Spectatori competitie Parteneri eveniment Sponsori eveniment Directia Generala de Politie a Municipiului Bucuresti (SAEST) Autorizatii si premise impuse de legislatie. Limitare numar participanti la suprafata disponibila Autofinantare

Constrangeri

Semnatura manager proiect

Descompunerea livrabilelor

Project Objectives Plan

Main objectives e-application tested in pilot operation introduced for 3 RGC seminars as per specification Adequate organization, 3 e-application tutors and e-application adminstrators trained Additional objectives Gain experience for further e-projects Further developing cooperative relationship with supplier Non objectives Establishing new seminars Continuous operation and maintenance activities Business case-objectives Therfore reductions in the durations of the seminars and increase the teaching quality Version: Date: Author:
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Work Breakdown Structure

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Work Package Specifications

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What is the WBS?

Students favorite tool

WBS is a tools that is used to: Define the projects scope of work Provide the PM team with a framework on which to

base project status and progress reports Facilitate communication between the PM and the project stakeholders As a key input to other PM processes and deliverables.

The 100% rule

WBS includes 100% of the work defined by the project scope and captures all deliverables in terms of work to be completed, including project management.

Project deliverable
Any unique and verifiable product, result, or capability to perform a service that must be produced to complete a process, phase or project.

A poorly constructed WBS

Incomplete project definitions leading to ongoing project extensions Unclear work assignments, goals, objectives, or deliverables Scope creep, frequently changing scope Budget overrun Missed deadlines Unusable new product

WBS creation methods

Top-down Bottom-up Standards Special templates