Lesson 6. Project Management

PROJECT
MANAGEMENT

-Jane Moon
-Mahtab Minai
Project Management Learning
Outcome
Project definition
Project plan
Document requirements
SWAP analysis
Financial tools
Project Management tools
Financial criteria (justification)
Verification (feasibility)
Scope Statement

Medical Informatics and Lab Management - Jane Moon 2 RMIT 2012
What is a project management?
Project management is a process of planning and
achieving specific goals with given resources.
Its a temporary endeavor to create a unique product or
service
Uniqueness comes with:
Uncertainty
Risk
Managing resources
Project Management
The process by which an activity which is complex,
unique and constrained by cost, time and quality can be
effectively delivered.

Projects are managed to reduce uncertainty

The tools and techniques are generic and can be
applied to any discipline

Project management process
Initiation phase
Examine client project brief if supplied
Identify and frame the problem or opportunity
Needs assessment
What is the real problem?
Identify and define the best solution
Setup workgroups/project team
Prepare requirements documentation
Creative(divergent) thinking to look at alternatives and selection
of the best solution

SWAT analysis
Project cycle
Medical Informatics and Lab Management - Jane Moon 8
Initiation phase
Planning phase
Execution phase
Close-out
phase
RMIT 2012
Requirements documentation
Keep it simple but include the following
Brief description of the problem or opportunity
Impact or effect of the problem
Who or what is affected by the problem (stakeholders
identified)
Impact of ignoring the issue
Desired outcome: objectives, deliverables
Value in achieving the outcome: tangible and
intangibles

Requirements documentation (cont.)
Strategic fit/Interface and compatibility issues
Uncertainties and unknowns
Key assumptions
Constraints
Environmental considerations
Background/Supporting information

Financial Tools Cash Flows
Net Present Value (NVP)- idea of profit to be
made or money to be saved
Internal Rate of Return (IRR)- at what rate will the
investment be returned)
Pay back (PB)- what is the break-even point

Project Management Tools
Gantt Charts
Program Evaluation and Review Technique
(PERT) charts
Complex charts that combined with scheduling allow for estimation of the
time that projects will take to complete
Uses a formula based in minimum, maximum and best guess time to
estimate total time for completion of project

Critical Path Method (CPM)
Complex charts that show critical points in the project that have a
significant impact on the project completion time
Cash flow example

Heerkens GR. 2002 ProjectManagement.
New York. McGraw-Hill. p62
Break-even Max exposure
RMIT 2012
Cash flow example
Net present value
= Cash flow
year0
+ Cash flow
year1
.. Cash flow
yearn
(1 + r)
0
(1 + r)
1
(1 + r)
n
r is the discount rate or rate of return expected by the company if it invested
its capital in something else
n is the life expectancy of the project
An NPV greater than 1.0 indicates that the project will result in a financial
return that exceeds the companies investment expectations

Internal Rate of Return
Use above equation but set NPV to 1.0 and solve for r

Decision Matrix modeling
Scheduling
Task Wk1 Wk2 Wk3 Wk4 Wk5 Wk6 Wk7 Wk8
Newsletter theme
2.1 Selection process
2.2 Theme selected
Design
3.1 Designer selected
3.2 Concept submitted
3.3 Design Approved
Articles done
4.1 Ideas submitted
4.2 Ideas approved
4.3 First draft submitted
4.4 Articles reviewed
4.5 Final draft submitted
4.6 Articles approved
October Newsletter
Gantt chart (project timelines)
RMIT 2012
Non-financial criteria
Obtaining financial estimates of all aspects of a project is
not always easy e.g..
How do you cost increased output through improved employee
satisfaction
How do you cost improved safety in the workplace, etc.

Apply decision matrix models
Combine both financial and non-financial criteria
Easy to construct and interpret
Management can input through setting attributes and weightings
Can be modeled by computer e.g.. what-if studies

Resourcing the project
Resources required include:
People (writers and photographers)
Money (salaries)Equipment (computers and cameras)
Facilities (offices)
Materials and supplies (paper, toner)
Information (why this theme, target audience)
Technology (internet access etc.)

Verification
Once a decision has been made on the solution or
opportunity, check the financials again and verify the
feasibility

Feasibility study
Market studies/survey
Pilot testing
Prototype
Simulation (computer modeling)

Project Scope Statement
The statement should include:
Cost, strategies, schedules, organization chart (functions)
Human and Financial Constraints
Uncertainties and unknown
Establish completion criteria
Establish success criteria
Clear guidelines what is NOT included
Political climate
Outsourcing
Legal issues
Confidentiality and Intellectual Property

Why projects fail ?
Not planning at all
Failing to account for all project activities
Failure to plan for risk
Using the same plan for every project
Applying prepackaged plans indiscriminately
Allowing a plan to diverge from the goal
Planning in too much detail too early
Planning to catch up later
Not learning from past mistakes

Final Plan
Executive summary 1 page
Project objectives
Project organisation
SWAT analysis
Operating Procedures
Budget details
Resources
Contact points and Information sources
Assessment and Review Standards (Quality assurance)
SELL YOUR PLAN TO MANAGEMENT


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PROJECT

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