Project management

1. Project management Chistyakova Nataly O.

2. Goals and objectives of the course The goal of the course: • Mastering of project management’s major conceptions, philosophy and methodology; • Acquiring basic skills in management of various project types.

3. Objectives of the course The objectives of the course: on completion of the “Project management” course the students must: know: • the present-day project management methodology; • definitions and notions of projects, programs and their context as objects of management; • definitions and notions of management entities, and the set of tools they use; • processes and management tools of various project functional fields; • state-of-the-art software and information technologies used in project management; • the history and development trends of project management;

4. Objectives of the course The objectives of the course: on completion of the “Project management” course the students must: be able to: • identify the goal, the object field and structures of the project; • calculate a calendar plan of project implementation; • draw up major sections of the project master schedule; • make a selection of software for the attainment of project management major objectives.

5. What is project?

12. Project is characterized by: • a certain goal, • certain resources (personnel, costs), • a certain time of performance, • uniqueness

13. Project is: The German Industrial Standard DIN 69901 defines a project as • “a scheme (intention) that is, to a considerable degree, characterized by unity of conditions in their totality, for example, by setting a goal, by temporal, financial, human resources or other limitations, by delimitation from other intentions, and a specific organization of the project execution”. Project Management Institute (PMI) defines a project as • “a temporary endeavor undertaken to create a unique product, service or result. Temporary means that every project has a definite beginning and a definite end. Temporary does not necessarily mean short in duration; many projects last for several years. In every case, however, the duration of a project is finite. Projects are not ongoing efforts. The uniqueness means that a product or service has characteristic distinctions of all similar products or services”.

14. Project is: Professor V. Voropayev puts forward the following definition of a project: “Project is a limited in time, purposeful change of a separate system with pre-set requirement standards of the result quality, possible frames of means and resource expenditure and a specific organization. The inclusion of the “separate system” into the definition points not only to the project integrity and limits, but points out the project soleness (in distinction from serial production or the current work of an organization), and, therefore, its inimitability and signs of novelty”. • P. Steinbuch gives a practical short definition: “Project is a one-time intention of performing a task”

15. Types and kinds of projects Construction projects: • the erection of pyramids in Egypt and Mexico, • the construction of the Great Chinese Wall, • the construction of cathedrals (St. Peter’s cathedral in the Vatican) and palaces (Winter Palace in St. Petersburg).

16. Types and kinds of projects Military projects: • Alexander the Great’s campaigns, • Romans’ military campaigns, • the USA’s plan of war against the USSR (the “Dropshot” plan), • the War in the Persian Gulf.

17. Types and kinds of projects Engineering projects: • building the Trans-Siberian Railway, • construction of the Ostankino Television Tower, • man’s landing on the Moon, • creation of the Mir Space Station.

18. Projects can be classified according to different bases: • by the project type:engineering (or technical), organizational, economic, social, mixed; • by class: monoproject, multiproject, megaproject • by the project dimension:small projects, middle-sized projects, large projects, very large projects. This division of projects is very conditional. The project dimension may be considered in a more concrete form: interstate, international, national, interregional, interbranch and branch, corporative, departmental and enterprise projects; • by project duration: short-term (up to 3 years), middle-term (from 3 to 5 years), and long-term (over 5 years) projects; • by project complexity: simple, complex, very complex; • by the kind of project: investment, innovational, R&D, educational projects.

19. WHAT IS PROJECT MANAGEMENT?

20. The American Project Management Institute (PMI) gives the following definition of the notion “project management”: Project management is the application of knowledge, skills, tools and techniques to project activities to meet project requirements. Project management is accomplished through the application and integration of the project management processes of initiating, planning, executing, monitoring and controlling, and closing. The project manager is the person responsible for accomplishing the project objectives. Managing a project includes: • identifying requirements; • establishing clear and achievable objectives; • balancing the competing demands for quality, scope, time and cost; • adapting the specifications, plans and approach to the different concerns and expectations of the various stakeholders.

21. The German industrial standard DIN 6 9 901 defines project management as a combination of management tasks – organization, techniques and means for carrying out a project. The sphere of project management has its own unique field of knowledge, which partially intersects with neighboring fields. The field of general management contains the knowledge that every project manager should have. The field of technical management contains special knowledge in a concrete field of activity. This is what makes the project manager a specialist in this field.

22. Enterprise Environmental Factors Customer Project Initiator or Sponsor Executing Process Group Planning Process Group Organization’s culture Project management information system Statement of work Contract Initiating Process Group Human resource pool Policies, procedures, standards, guidelines Defined processes, Historical information, Lessons learned Project charter Preliminary Project Scope Statement Project Management Plan Deliverables Requested changes Implemented change requests Implemented corrective actions Implemented preventive actions Implemented defect repair Work performance information Monitoring and Controlling Process Group Approved change requests Rejected change requests Approved corrective actions Approved preventive actions Approved defect repair Project Management Plan (updates) Project Scope Statement (updates) Recommended corrective actions Recommended preventive actions Performance reports Recommended defect repair Forecasts Validated defect repair Approved deliverables Administrative closure procedures Contract closure procedures Closing Process Group Final product, service, result Fig. 1.2. High Level Summary of Process Group’s Interactions

23. The basic functions of project management The American Project Management Institute singles out four basic functions of project management: • Project scope management • Project quality management • Project time management • Project cost management and four integrated functions: • Project risk management • Project human resource management • Project procurement management • Project communications management

24. These functions allow determining primary criteria for project evaluation: • engineering feasibility(which is determined by the scope of the project, and quality), • competitiveness(which is determined by quality, time and cost), • labor input(which is determined by the time and cost), • viability(which is determined by the scope, cost and risk), • effectiveness of project execution(which is determined by the staff, means of communications and intercourse, the system of material and technical provision).

25. Project Scope Management The goals and objectives of the project as well as the work that must be done for their achievement together with the required resources determine the subject field of the project and its scope. Because the project goals, objectives and work that has to be done and its scope, and/or other elements of the subject field of the project, undergo changes during the project’s life, a need arises for the Project Scope Management.

26. Project Quality Management For the project there must be established quality requirements or standards of results, by which the success of the project completion is assessed. Identification of these requirements, their control and maintenance throughout the project life demand the execution of ProjectQuality Management.

27. Project Time Management In every project, a period of time and deadlines for carrying out the project are established. Time is the most important and, unfortunately, “nonflexible” resource. Therefore, all jobs and interaction of all stakeholders must be carefully planned and constantly controlled. Measures must be taken promptly to eliminate or prevent undesirable deviations from the established deadlines. All this makes up the function of Project Time Management.

28. Project Cost Management Every project also has a fixed budget, but by far not every project is completed within the budget limits. Moreover, exceeding the budget limits is rather a rule than exception. So that it would not happen, there must be Project Cost Management. Cost is closely linked with time (“Time is money!”), but, unlike time it is a flexible resource.

29. Project Cost Management Every project also has a fixed budget, but by far not every project is completed within the budget limits. Moreover, exceeding the budget limits is rather a rule than exception. So that it would not happen, there must be Project Cost Management. Cost is closely linked with time (“Time is money!”), but, unlike time it is a flexible resource.

30. Project Human Resource Management The management of the scope, quality, time and cost form the nucleus of project management, which is used practically in all cases. However, other important functions of project management are also singled out. Projects are carried out, first of all, with the help of people, their ability and possibilities. During the life of a project, a different number of specialists with various qualifications and for different time periods are required. A core of these specialists form the project team, which itself is a temporary one. Thus, a need arises in the project to find suitable people, distribute among them work, rights and responsibilities, and to organize their effective work and control it, etc.

31. Project Communications Management In the process of project execution, there must be a constant control over the state of the course of work and a forecast of achieving work results. For the control of the state of a project there must be informational feedback. These tasks are performed in a project by Project Communications Management.

32. Project Procurement Management Executors are drawn into performing jobs and services for the project on contractual basis. Purchases and deliveries of the required material and technical resources and equipment are also carried out on the basis of the concluded contracts. The work on preparing, planning, concluding contracts as well as control over their execution, etc. is carried out by way of Project Procurement Management.

33. Project Risk Management Carrying out a project is connected with uncertainty of many elements, a probabilistic character of processes proceeding and, therefore, with some risk. The project risk level can be minimized if special measures are taken. The project target risk level must be secured with minimal expense. However, it requires an in-depth study of the nature of the project and its environment. The whole complex of actions and procedures connected with determining and lowering the level of risk in the project is the function of Project Risk Management.