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MBB3173 Project Management

MBB3173 Project Management. Introduction Topic To Be Covered Defining of Project Management History of Project Management Project Management Functions Project Planning and Scheduling Project Management Application Benefits and Limitations of Network Planning. Making a Satellite.

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MBB3173 Project Management

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  1. MBB3173Project Management Introduction Topic To Be Covered Defining of Project Management History of Project Management Project Management Functions Project Planning and Scheduling Project Management Application Benefits and Limitations of Network Planning MBB3173 Project Management, ABO@2014

  2. Making a Satellite Factory operations What is common between these activities? MBB3173 Project Management, ABO@2014

  3. Pre 19th Century The Great Wall of China (221 B.C. - 206 B.C.) The Great Pyramid of Giza (2,550 B.C.) MBB3173 Project Management, ABO@2014

  4. The 16th Century and Modern Age of Engineering This marked the beginning of modern engineering with the formation of professional societies, printing of treatise on engineering subjects in quantity, engine specialization within the profession, and engineers began to take advantage of the brilliant scientific discoveries of the time. MBB3173 Project Management, ABO@2014

  5. The 18th and 19th Century and the Industrial Revolutions The end of the 18th and 19th century witnessed colossal changes in the Western World with industrial revolutions and with this the birth of management principles in the business to become the backbone of project management MBB3173 Project Management, ABO@2014

  6. The First Industrial Revolution and Steam The changes brought about by the first industrial revolution and its repercussions required new thinking and solutions at a more macro level. For example, this new industrialized world with mass production required a system to supply large quantities of raw materials, resources, man power, equipment and organization. It needed more sophisticated systems of transportation, storage, manufacturing, assembly and distribution. Further a rapidly expanding workforce of thousands needed to be taken care of in terms of housing, health, welfare, and education. All this brought in new institutions, establishments, and organizations. It also brought a more to business and management based on scientific research and principles. MBB3173 Project Management, ABO@2014

  7. The Second Industrial Revolution Electricity and Combustion Engines The very late part of the 19th century saw the second industrial revolution emerge with a host of new emerging technologies. The second, dominated by electricity and chemicals, lasted 1890-1930, and brought telephones, electrical devices, the internal combustion engine, and transportation by land (automobiles), sea (ocean going liners), and air. MBB3173 Project Management, ABO@2014

  8. Establishment of Project Management Institute (PMI) In 1969, the Project Management Institute (PMI) was formed in the United States of America to serve the interest of the project management industry. The premise of PMI is that the tools and techniques of project management are common even among the widespread application of projects from the software industry to the construction industry. In 1981, the PMI Board of Directors authorized the development of what has become A Guide to the Project Management Body of Knowledge (PMBOK Guide), containing the standards and guidelines of practice that are widely used throughout the profession. MBB3173 Project Management, ABO@2014

  9. Project Management as a Profession • Project Management Institute • More than 64,000 members • Project Management Body of Knowledge (PMBOK) • Project-oriented organization MBB3173 Project Management, ABO@2014

  10. Understanding of Project Management MBB3173 Project Management, ABO@2014

  11. Projects versus Operations Organizations perform work - either Operations, or Projects Shared characteristics of projects and operations Performed by people Constrained by limited resources Planned, executed and controlled MBB3173 Project Management, ABO@2014

  12. Operations and projects differ: Operations are ongoing and repetitive (Factory operations) Projects are temporary and unique (Making of satellite) “A project is a temporary endeavor undertaken to create a unique product or service.” temporary - definite beginning and end unique - different in some distinguishing characteristic MBB3173 Project Management, ABO@2014

  13. Examples of projects Developing a new product or service Effecting a change in structure, staffing, or style of an organization Designing a new transportation vehicle Constructing a building or facility Running a campaign for political office Implementing a new business procedure or process MBB3173 Project Management, ABO@2014

  14. Project Characteristics • Have a specific objective (which may be unique or one-of-a-kind) to be completed within certain specifications • Have defined start and end dates • Have funding limits (if applicable) • Consume human and nonhuman resources (i.e., money, people, equipment) • Be multifunctional (cut across several functional lines) MBB3173 Project Management, ABO@2014

  15. What is Project Management? Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. MBB3173 Project Management, ABO@2014

  16. The project management challenge Meeting or exceeding stakeholder needs and expectations invariably involves balancing competing demands among: Scope, time, cost, and quality Stakeholders with differing needs and expectations Identified needs and unidentified expectations - “client relations challenge” MBB3173 Project Management, ABO@2014

  17. Identify Stakeholders • Critical to identify early • Analyze their interests, importance, influence • Classify stakeholders and prioritize relationships building accordingly MBB3173 Project Management, ABO@2014

  18. Identify Project Stakeholders Project Manager Project Sponsor Department Managers Customers Project Team Board of Directors Contractors, Suppliers Executive Managers Project Management Office MBB3173 Project Management, ABO@2014

  19. Sample of Power/Interest GridStakeholder High Power Low High Low Interest MBB3173 Project Management, ABO@2014

  20. Communication Matrix-Stakeholder MBB3173 Project Management, ABO@2014

  21. Communication Mode MBB3173 Project Management, ABO@2014

  22. The core of project management Where most projects fail? published by PMI in 1987 MBB3173 Project Management, ABO@2014

  23. Project Management Knowledge Areas (PMBOK) Scope Management Cost Management Communications Management Human Resources Management Time Management Quality Management Risk Management Procurement Management MBB3173 Project Management, ABO@2014

  24. MBB3173 Project Management, ABO@2014

  25. Relationship to other disciplines - similarities General management encompasses Planning Organizing Leading Controlling PM management functions overlap MBB3173 Project Management, ABO@2014

  26. Function overlap Planning the work, schedule and budget Organizing and staffing a team to implement the work Controlling the project through tracking and monitoring progress against the plan Leading people and resources so the plan is implemented and adjusted as smoothly as possible MBB3173 Project Management, ABO@2014

  27. Relationship to other disciplines - differences Much of the knowledge needed to manage projects is unique or nearly unique to project management, e.g. Critical path analysis, and Work breakdown structures Primary differences between general management and PM found in the use of specialized tools and techniques. MBB3173 Project Management, ABO@2014

  28. MBB3173 Project Management, ABO@2014

  29. Why do you need project management techniques? “The reason for organizing an assignment as a project is to FOCUS the responsibility, authority, and scheduling of the project in order to meet defined goals.” schedule cost performance (quality) MBB3173 Project Management, ABO@2014

  30. Other major reasons to use PM techniques Clear work descriptions minimize surprises and conflicts Responsibilities and assignments for specific tasks are easily identified Reduces need for continuous reporting Progress can be measured against a plan Time limits for task completion are more easily specified MBB3173 Project Management, ABO@2014

  31. The two types of project management activities Project planning and definition activities Project implementation and control activities More simply Deciding, and Doing MBB3173 Project Management, ABO@2014

  32. Planning and definition activities Definition of project goals and objectives Definition of work requirements Definition of quantity of work Definition of quality of work Definition of required resources Definition of organization structure Planning of task sequencing and schedule Planning of the budget MBB3173 Project Management, ABO@2014

  33. Implementation and control activities Initiating work Monitoring and tracking progress Comparing schedules and budgets to plans Analyzing impact of changes and progress Coordinating activities and people Making adjustments to the plan as required Completing the project Assessing project results MBB3173 Project Management, ABO@2014

  34. Success factors in project management Appropriately skilled project manager Clear authority for the PM to act Commitment to the PM methodology A skilled PM team agreed to the project goals A complete project plan that is understood by all participants Objectives that contribute to the larger goals of the organization Workable tracking and monitoring methods MBB3173 Project Management, ABO@2014

  35. Bottom line What project management will do is provide a system for planning, documenting, organizing, and communicating. It provides a basis for better decisions Ultimately, it is the people who will make things happen and make things work, not the methodology! MBB3173 Project Management, ABO@2014

  36. Project Management • Project Planning • Definition of work requirements • Definition of quantity and quality of work • Definition of resources needed • Project monitoring • Tracking progress • Comparing actual outcome to predicted outcome • Analyzing impact • Making adjustments MBB3173 Project Management, ABO@2014

  37. The Pure Project Organization MBB3173 Project Management, ABO@2014

  38. The Pure Project Organization • Advantages • Effective and efficient for large projects • Resources available as needed • Broad range of specialists • short lines of communication • Drawbacks • Expensive for small projects • Specialists may have limited technological depth • May require high levels of duplication for certain specialties MBB3173 Project Management, ABO@2014

  39. Functional Project Organization MBB3173 Project Management, ABO@2014

  40. Functional Project Organization • Advantages • technological depth • Drawbacks • lines of communication outside functional department slow • technological breadth • project rarely given high priority MBB3173 Project Management, ABO@2014

  41. Matrix Project Organization MBB3173 Project Management, ABO@2014

  42. Matrix Project Organization • Advantages • flexibility in way it can interface with parent organization • strong focus on the project itself • contact with functional groups minimizes projectities • ability to manage fundamental trade-offs across several projects • Drawbacks • violation of the unity of command principle • complexity of managing full set of projects • conflict MBB3173 Project Management, ABO@2014

  43. Mixed Project Organization MBB3173 Project Management, ABO@2014

  44. Communicator Communication Paths Between a Project’s Parties-At-Interest MBB3173 Project Management, ABO@2014

  45. Benefits • Identification of functional responsibilities to ensure that all activities are accounted for, regardless of personnel turnover. • Minimizing the need for continuous improvement • Identification of time limits for scheduling • Identification of a methodology for trade-off analysis • Measurement of accomplishment against plans MBB3173 Project Management, ABO@2014

  46. Benefits (continued) • Early identification of problems so that corrective action may follow • Improved estimating capability for future planning • Knowing when objectives cannot be met or will be exceeded MBB3173 Project Management, ABO@2014

  47. Obstacles • Project complexity • Customer’s special requirements and scope changes • Organizational restructuring • Project risks • Changes in technology • Forward planning and pricing MBB3173 Project Management, ABO@2014

  48. Classical Management • Planning • Organizing • Staffing • Controlling • Directing Which of the above is Usually NOT performed by the project manager? MBB3173 Project Management, ABO@2014

  49. Resources • Money • Manpower • Equipment • Facilities • Materials • Information/technology MBB3173 Project Management, ABO@2014

  50. Successful Culture • A good daily working relationship between the project manager and those line managers who directly assign resources to projects • The ability of functional employees to report vertically to their line manager at the same time they report horizontally to one or more project managers MBB3173 Project Management, ABO@2014

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