Project

1. Project • It is a job that involves • Time (Definite Start/end dates)‏ • Cost (Fixed Budget)‏ • Scope (List of activities)‏ • Quality/Customer Satisfaction

2. Examples of Project • Building Construction • Software Development • National Election • Satellite Launching

3. Review Question All the following are examples of projects EXCEPT: • Developing a new product of service • Changing the password of one user used for logging into a bank web-site • Construction of a school • Implementing a new business procedure or process

4. Project Management • It is the application of knowledge, skills, tools & techniques to project activities to meet project requirements. • Knowledge ??? • Skills ??? • Tools & Techniques???

5. Knowledge Areas for a successful project manager • Scope • Time • Cost • HR • Communications • Procurement • Quality • Risk • Integration

6. Skills • Communications • Problem solving • Negotiation skills • Motivating • Budgeting Skills • Leading & Managing • Organizing

7. Tools & Techniques • Primavera/Ms projects • AutoCAD • Crane, Concrete Mixer • Project management templates • CPM- Brainstorming etc…

8. Project Management • It is the application of knowledge, skills, tools & techniques to project activities to meet project requirements. • Knowledge/Skills/Tools & techniques

9. Project Constraints • These are forced restrictions to the project team’s options. • Time • Budget • Quality Specifications • Communications • Knowledge etc..

10. Project Stakeholders • People involved in project • Direct & Indirect • Draftsman, site engineers, Sponsors, customers, vendors etc..

11. Roles & Responsibilities • Senior Management • Sponsor • Functional Manager • Project Manager

12. Senior Management • Catchall of FM ,Sponsor & anyone higher to PM • Provides resources, time to the project • Determine the key constraints • Approve Project Plan • Transfers authority to Project Manager • Resolve conflicts that extend beyond the project mangers control • Must know Project Management concepts

13. SPONSOR • Provides the financial resources for the project. (Customers)‏ • Along with the customer, the sponsor formally accepts the product of the project. • Provide key events milestones

14. FUNCTIONAL MANAGERS • manages and owns the resources. • assigning & negotiating with the project manager • team member performance. • Letting the project manager know of other projects that may impact the project. • Improving their staff utilization.

15. PROJECT MANAGER • manages the project. • accountable for project failure • need not be a technical expert • Controls the project (measuring performance/ corrective action) • in charge of the project, but not necessarily the resources.

16. Review Questions Who is ultimately responsible for the quality management in the project? • Project engineer • Project manager • Quality manager • Team member

17. Review Questions A particular stakeholder has a reputation for making many changes on projects. What is the BEST approach a project manager can take at the beginning of the project to manage this situation? • Say "no" to the stakeholder a few times to make him change his habits • Get stakeholder involvement in the project as early as possible • Talk to the stakeholders boss to find ways to direct the stakeholders activities to another project • Ask that the stakeholder not be included in the stakeholder listing

18. Review Questions During project execution, a project team delivers a project deliverable to the customer. However, the customer neither acknowledges the deliverable nor replies to the project manager's requests for verification. What is the BEST thing to do? • Continue with the project • Document the situation • Contact management for help • Call a meeting of the team

19. Review Question A project manager for a small construction company has a project that was budgeted for US $1,30,000 over a six-week period. According to her schedule, the project should have cost US$ 56,000 to date. However, it has cost US$ 59,000 to date. The project is also behind schedule, because the original estimates were not accurate. Who has the PRIMARY responsibility to solve this problem? • Project Manager • Senior management • Project sponsor • Manager of the project office

20. Review Questions During project planning in a matrix organization, the project manager determines that additional human resources are needed. From whom would he request these resources? • Project manager • Functional manager • Team • Project sponsor

21. Organizational Structure • A project manager has authority from weakest to highest in the following order • Functional • Weak matrix • Strong matrix • Projectized

22. Functional Organization

23. Projectised Organization

24. Strong Matrix organization

25. Weak Matrix organization

26. PMO-Project Management office • Providing support functions to Project Managers in the form of training, software, templates etc.

27. Review Question Where can a project manager expect to receive templates? • Commercial databases • The project office • The project sponsor • PMIS

28. Review question You are working in the Project Office of your organization. What is your job responsibility? • Managing the different activities of a project • Always being responsible for the results of the project • Providing support functions to Project Managers in the form of training, software, templates etc. • Providing Subject Matter Expertise in the Functional areas of the project

29. Life Cycle • 2 types • Project Life cycle • Project Management Life cycle

30. Project Life Cycle • what you need to do the work on the project • Project Specific • Example : • Construction • Substructure,Superstructure,Electrical • Works, Plumbing,Landscaping • Automobile Design ??

31. Project Management Life cycle • what you need to do to manage the project? • Common for All Projects • Initiating • Planning • Executing • Controlling • Closing • Also called project management process groups

32. Initiation Planning Controlling Execution Closure Project Management Life Cycle

33. Project Initiation • Project identified • Project Manager assigned • Constraints set to the project • BUDGET = 15 Crores • TIME = 24 Months • Start = Nov ’04 / Finish =Nov ‘06 • Assumptions identification

34. Project Planning • Done by Project manager with team members • Task Definition • Duration Estimation • Sequencing • Cost Estimation • Procurement Planning etc…

35. Execution • Plans are put into action • Distribution of Information • Developing the team • Getting the proposals • Selecting vendors • Quality Assurance • Work Results

36. Project Controlling • Comparing Plan & Actual • Variance Analysis • Earned value Analysis • Corrective actions implemented etc..

37. Project Closing • Formal Acceptance of Product • Lessons Learned

38. PROJECT INITIATION • Project Selection Done here. • Project Manager identified & assigned to the project • The project charter is created by the Upper Management • Charter gives authority to Project Manager

39. Project Justifications • Market Demand- fuel efficient cars • Business need- training the staff • Customers Request- constructing a house • Technological Advances- Camera Mobiles • Legal Requirement- Govt. Regulations • Social Need- a bridge across a river

40. Weighted scoring model

41. Payback period • The number of time periods it takes to recover your investment in the project before you start accumulating profit. • Payback period should be less to select a project. • Example :You have 2 projects to choose from • project A with a payback period of 6 months • project B with a payback period of 18 months. • The answer is project A.

42. Review Question A project has a pay back period of nine months, what does it mean? • it will take the project nine months to start incurring cost • the project will be complete in nine months • the first nine months of the project will provide profit to the company • it will take the project nine months to cover the investment and to start generating revenue

43. Review Question Your company is going to introduce a new service called Phone Home. This service will allow you to speak the name of the person you want to call into your cellular phone. To call home, you would simply speak the word “home” into the phone, and it will dial that number for you. Your company is taking advantage of the progress that has been made recently with voice recognition software. Initial projections show that market demand is very high for this product. This project came about as a result of which of the following? • Market demand • Customer request • Business need • Technological advance

44. Review Question The Project charter is created by: • the project manager • upper management • the Vice President over a functional management group • the customer

45. Review Question Which of the following describes the early stages of a project? • High costs and high demand for resources • A high demand for change • A high demand for project team time • Low costs and low demand for resources

46. Review Question At which point is the risk of failure the least, but the consequence of failure the highest? • During the early stages • During the middle stages • During the final stages • Risk of failure is even across all project phases

47. PLANNING PROCESS GROUPS • Scope Planning • It is the First, of the planning process. • Document the scope of work of the project (called product scope)‏ • Project charter is the primary input • Product Analysis is done here to have better understanding about project’s product. • Project deliverables (A list of summary level subprojects)‏ • Scope statement is the output of the process.

48. Project Deliverables • Example 1: In a construction project – substructure, super structure etc. • Example 2: In a automobile design project- suspension system, chassis etc…

49. Scope Definition WBS is created here Scope Definition is subdividing major project deliverables into smaller manageable components Advantages Improve cost, duration & resource estimates To facilitate clear responsibility assignments

50. A sample WBS