project management project management

Project ManagementProject Management

Merrie Phinney

Day 1: Overview of Project ManagementDay 1: Overview of Project Management

• Define Project and Project Management

• Describe the three constraints that affect project success

• Describe the main phases of the project management processes

• Establish project objectives

• Apply the management by objectives (MBO) methodology

What is a Project?What is a Project?

A project is a temporary endeavorundertaken to accomplish a unique

product or service with a defined start andend point and specific objectives that,

when attained, signify completion.PMBOK definition

PMBOK is a trademark of the Project Management Institute

What can go wrong in a Project?What can go wrong in a Project?

The major cause of project failure is not thespecifics of what went wrong, but ratherthe lack of procedures, methodology and

standards for managing the project.

PMBOK definition

PMBOK is a trademark of the Project Management Institute

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How can we reduce the risks?How can we reduce the risks?

How Project Management can helpHow Project Management can help

Single point of contact and accountability for theoverall success of the project

Focuses on meeting customer needs and ensuringsatisfaction

Improves performance in time, cost and technicalareas

Focuses on managing project scope and controllingchange

Helps avoid disasters by managing risks Strengthens project teams and improves internal

morale

History of Project ManagementHistory of Project Management

In 1917 Henry Gantt developed the Gantt chart as atool for scheduling work in job shops

Modern project management began with theManhattan Project (circa 1943), which led to thedevelopment of the atomic bomb

In 1958, the Navy pioneered the use of PERTnetwork charts

In the 1970s, the military began the broad use ofproject management software, as did the constructionindustry.

By the 1990s, virtually every industry uses some formof project management

What is Project Management?What is Project Management?

Project management is the application ofknowledge, skills, tools, and techniquesapplied to project activities in order tomeet or exceed stakeholder needs and

expectations from a project.PMBOK definition

PMBOK is a trademark of the Project Management Institute

The Triple ConstraintThe Triple Constraint

Scope CreepScope Creep

1. Add Time- delay the project to give you

more time to add the functionality ($)

2. Add Cost- recruit, hire or acquire more

people to do the extra work ($)

3. Cut Quality- trade off some non-essential

requirements for the new requirements ($)

QUALITY ASSURANCE AND THE SINKING OF THE LARGESTOFFSHORE OIL PLATFORM

Read this quote from a Petrobras executive, citing thebenefits of cutting quality assurance and inspection costs:

on the project that sunk into the Atlantic Ocean off the coast of Brazil in March 2001.

"Petrobras has established new globalbenchmarks for the generation ofexceptional shareholder wealth

through an aggressive and innovative programmeof cost cutting on its P36 production facility.

Conventional constraints have beensuccessfully challenged

and replaced with new paradigms appropriateto the globalised corporate market place.

Through an integrated networkof facilitated workshops,

the project successfully rejected the establishedconstricting and negative influences of prescriptiveengineering,

onerous quality requirements, and outdatedconcepts of inspection and client control.

Elimination of these unnecessary straitjackets hasElimination of these unnecessary straitjackets hasempowered the project's suppliers and contractorsempowered the project's suppliers and contractorsto propose highly economical solutions,to propose highly economical solutions,

with the win-win bonus of enhancedwith the win-win bonus of enhancedprofitability margins for themselvesprofitability margins for themselves

The P36 platform shows the shape of things to comeThe P36 platform shows the shape of things to come

in the unregulated global marketeconomy of the 21st Century.“

And now you have seen the finalresult of this proud achievement by

Petrobras.

"We can do GOOD, QUICK and CHEAP"We can do GOOD, QUICK and CHEAPwork.work.

You can have any two but not all three.

1. GOOD QUICK work won't be CHEAP.

2. GOOD CHEAP work won't be QUICK.3. QUICK CHEAP work won't be GOOD."

Project Management ProcessesProject Management Processes

Management by Objectives (MBO)Management by Objectives (MBO)ApproachApproachEstablish clear and realistic objectives

Good objectives are “clearly stated” andcontain a “measure” of how to assesswhether they have been achieved.

To be realistic, objectives must be“determined jointly” by managers andthose who perform the work.

Exercise 1: Setting Clear ObjectivesExercise 1: Setting Clear Objectives

“To have the painter paint my office apleasing color”

ContractorOffice Manager

Not only did you paintmy office walls blue, butyou painted the ceilingblue as well!

You asked me topaint the room blue,and now you’ve gota blue room.

But the ceiling is oppressive!Ceilings should never be thesame color as the walls. Theyshould always be a lighter color.

You asked for a blueroom. You’re luckyI didn’t paint thefloor blue as well.

How could I have said it?How could I have said it?

The floor and all furniture will be covered by drop clothsprior to painting each of the 4 office walls, notincluding the door, base-boards, crown molding,window frames, windows, light switches, or poweroutlets that will be masked with painters tape. Thewalls should be painted using Behr paint in SapphireBerry #550C-2 in the semi-gloss sheen, using anylon/polyester 3” inch wide brush using a verticalbrush stroke, applying two coats of paint, allowing 16hours between coats, and be completed by Friday,October 6 including removal of all protective tape.

“I know that’s what I said, but it’s not what I meant!”

Key MessagesKey Messages

A Project is a unique endeavor directed towardachieving a specific result; it is temporary, with abeginning and an end

Project management is the process of successfullycompleting a project

The triple constraints affecting project success arerequirements, time and cost (resources)

The main processes of project management areinitiation, planning, execution, control and closeout

MBO is a specific methodology used to establishrealistic objectives and to measure achievement

Reading AssignmentsReading Assignments

Case Study 1-1: The Education of Jerry; Part 1-The Project Environment

Case Study 2-1: Ralph’s Drugstore