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Project Manager

Project Manager

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Project Manager

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  1. Project Manager

  2. Project Manager Skills • Scheduling and time mgt. skills • Technical skills ( scope of project ) • Leadership skills ( goals, performance measures) • Resource mgt., human relationship skills. • Communication skills • Negotiation skills • Marketing, Contracting, customer relationship skills • Budgeting and cost skills.

  3. Major Interactions of project stakeholders Government agencies Top Management Consultants Client Financial Managers Project Manager Subcontractors Project Team Other Organization

  4. Project Manager Responsibilities • Responsibility to the parent Org. • Responsibility to the project and client • Responsibility to the member of the project team

  5. Selecting Project ManagerList of some of the most popular attributes: • A strong technical background • A hard-nosed manager • A matured individual • Someone who is currently avaiable • Someone on good terms with senior executive • A person who can keep the project team happy • One who has worked in several departments • A person who can walk on ( or part ) the waters.

  6. Selecting the PM • Credibility • Technical credibility ( technical knowledge ) • Administrative credibility ( managing resources( money, people, material) keeping the project on scheule. • Sensitivity • It is related to the ability of the manager to discover the problems at early stages and solve the team’s problems if we have some conflects • Leadership and management style • Leadership is defined as the ability of affecting others in away that gurantees the project profitability to the org. and sociey. • Ability to work under stress

  7. Chapter 4Project Organization • The project as Part of the functional organization Make the project as a part of one of the functional divisions of the firm. In this type the project is inserted to the department where it is supposed to be implemented. All workers from the departments

  8. Advantages of using functional elements of the parent org. as the administrative home for a project: • Maximum flexibility in the use of staff, expert can be assigned temporarily to the project. • Individual experts can be utilized by many different projects • Specialists in the division can be grouped to share knowledge.

  9. Disadvantages: • The client is not the focus of activity and concern • The functional division tends to be oriented toward the activities particular to its function. It is not usually problem oriented in the sense of that a project must be to be successful. • No individual is given full responsibility for the project • There is a tendency to suboptimize the project. • The motivation of people assigned to the project tends to be weak.

  10. Pure project organization: the project is separated from the rest of the parent system it has: • A self contained unit with its own technical staff, its own administration • Advantages • The PM has full authority over the project. • All members of the project work force are directly responsible to the PM • More focus on the client • Better job advancement oppurtinuties

  11. Disadvantage • It is costly arrangement • It is a time consuming process after we gather the necessary data. • Matrix Organization • It is a combination of functional and pure project organization. • It is a pure project organization overlaid on the functional division of the parent firm.

  12. Chapter 5Project Planning • There are several reasons why we must use considerable care when planning projects • The primary purpose of planning is to establish a set of directions in sufficient detail to tell the project team exactly : • What must be done? • When it must be done? • What resources to use ?

  13. Project plan Elements: • Overview : • A short summary of the objectives and scope of the project • Directed to top mgt. and contains a statement of goals of the project • A description of the managerial structure that will be used for the project. • A list of major milestones in the project schdule.

  14. Project plan Elements: • Objectives: • More detailed statement of general goals noted on the overview section. • The statement should include profit and competitive aims as well as technical goals. • General approach: • Describes both the managerial ( style of mgt. ) and the technical approaches ( required equipments, technology ) to the work.

  15. Project plan Elements: • Contractual aspects: ( list for ) • All reporting requirements • Customer-supplied resources. • Advisory commitees • Project review • Cancellation procedures. • Specific management agreements • subcontracts

  16. Project plan Elements: • Schedules: • Various schedules. • Lists all milestones events. • All tasks, and their durations….. • Resources: • The budget • Both capital and expense requirements are detailed by task. ( Project budget ) • Cost monitoring and control procedures.

  17. Project plan Elements: • Personnel : • Expected personnel requirements • Special skills needed • Types of training needed • Possible recruiting problems. • Legal and political restrictions.

  18. Project plan Elements: • Evaluation Methods: • Every project should be evaluated against standards and by methods established at the project inception. • This section include : • A brief description of the procedure to be followed in monitoring , collecting, storing, and evaluating the history of the project.

  19. Project plan Elements: • Potential problems: • External and internal potential problems.

  20. Project plan in Action: • Project plans are usually constructed by listing the sequence of activities required to carry out the project from start to completion. • Example ( SW & HW development project ) • Concept Evaluation • Requirement identification • Design • Implementation • Test • Integrartion • Validation • Customer test and evaluation • Operations and maintenance.

  21. System Integration( system engineering ) • It is a process to induce the project to the already installed system. • It plays a crucial role in performance aspect of the project. • System Integration is concerned with 3 major objectives: • Performance: what the project is intended to do • Effectiveness: to check the valuability of installing on specific. • Cost: the cost of installing the project and its functions, personnel, etc

  22. Work-Breakdown- Structure (WBS) • It is a result family tree , subdivision of the major tasks( hw, services , etc ) and the data required to produce the final product , it acts as a vehicle for breaking down the work into smaller elements.

  23. Work-Breakdown- Structure (WBS) • We have 2 types of WBS: • Managerial level • Technical level

  24. Chapter 7Budgeting and Cost Estimation • A budget : is a plan for allocating resources. • The budget is not one facet of a plan, nor is it merely an expression of organizational policy ( it is also a control mechanism ). • The budget serves as a standard for comparison, a baseline from which to measure the difference between the actual and planned uses of resources.

  25. One aspect of cost estimation and budgeting has to do with actual use of resources ( Project activities resource allocation ) : • Example: an activity takes 5 weeks to be implemented and it costs a total of $25000, what is the cost of one week. Solution ( accounting department ) : 25000/ 5 = 5000 $/ week. This is not true, as some activities invest more money at the beginning and less in the project progress this leads to in accuracies.

  26. Budgeting Estimates Two fundamentally different strategies for data gathering: • Top-Down Budgeting: • Bottom-up-Budgeting

  27. Top-Down Budgeting In this approach the top manager based on their skills and experience give a total cost estimate to the project and middle managers allocate the cost required for their miniproject on the light of the total cost given by the top manager and the lower managers do the same for their main tasks , the process is completed until the lowest level in the ( WBS ).

  28. Bottom-Up Approach • In this approach the effort and their time durations are recognized in order to consult their main technicians in order to get cost estimates for each effort( activities), the technicians will give feedback about their salaries and other activities overhead. Every set of activities are summed up to get the total cost of the work packages and the work packages are summed up to get the total cost of subtask and so on.

  29. Work element Costing Example • A work element is estimated to require 25 hrs of labor work, the specific labor is requesting 17.5 $/hr. the overhead charges to the element is 84% of the direct labor charges. • What is the work element total cost? • If the technicians ( labor) needs 12% of the total time as a personal allawance , what is the new cost for the work element.

  30. Solution • Total element cost = 25 X 17.5 + ( 0.84 ( 25 X 17.5 )) = $805 b) Wasted labor hrs = 0.12 X 25 = 3 hrs. Actual labor hrs = ( 22 X 17.5 ) + 0.84 ( 22 X 17.5 ) = $ 708.4

  31. Earned Value Analysis • It is a continuous comparison between the plan of the project data and the actual data. Budgeted and Committed Cost: Variance = Budgeted cost – committed cost Variance (+ve ) = Unconsumed Cost Variance ( -ve ) = Over spend activities

  32. Cost and Schedule Variances

  33. Cost and Schedule Variances

  34. BCWSBudgeted Cost of Work Schedule NOW BCWS = X1 + X2 + X3 + X4 + X5 $ This is the sum of all the costs up to the specific activity that is stated in budget plan.

  35. BCWPBudgeted Cost of Work Performed BCWP = X1 + X2 + X3 + 0.8 X4 + 0.5 X5 $ This is the sum of all the costs up to the specific activity in relation with its completion percentage.

  36. ACWPActual Cost of Work Performed ACWP = Actual cost of work done. This is the total costs of the work done on reality provided by project manager on the financial monitor.

  37. If BCWP > BCWS ( over spend ) • If BCWP < BCWS ( time is late -ve ) • If BCWP > BCWS ( +ve time is more than sufficient )

  38. Forecasting • It is the process of prediction of the future events. • Benefits of forecasting: • To estimate the cost of remaining parts of a project ( forecasted value ). • To identify the source and places of certain problems in the budget plan. • It is a tool for corrective actions.

  39. ForecastingMathematical Expressions • The Cost Performance Index ( CPI ): CPI = BCWP / ACWP • It gives a good indication whether the project is performing financially well or not. • CPI > 1 : Good performance. • CPI < 1 : Bad performance ( shortages • Overspend ).

  40. ForecastingMathematical Expressions • The Schedule Performance Index ( SPI ): SPI = BCWP / BCWS • It is a good indicator for the project timing. • SPI > 1 : Good performance. • SPI < 1 : Bad performance (Poor ).

  41. ForecastingMathematical Expressions • Budgeting Cost to Completion ( BCC ): • The Amount of money needed to completion. • BCC = BAC – BCWP • It is defined as the amount of money required to complete a project where it is partially completed ( remaining money ).

  42. ForecastingMathematical Expressions • Estimated Cost to Completion ( ECC ): • Its more realistic value than budgeted. • ECC = BCC / CPI • It depends on CPI which is a by product of the actual cost of work performed. • Forecasted Cost to Completion ( FCC ): • FCC = ACWP + ECC

  43. Example • The R&D department of a company has been developing a new product line, the project manager is concerned whether the following provided data is exhibiting a good project performance, calculate the following and comment on the project status to convince the project manager. • CPI,BCC, ECC, SPI, FCC.