INTRODUCTION TO PROJECT MANAGEMENT AND PROJECT INTERGRATION

Welcome To CEMBA 567 : INTRODUCTION TO PROJECT MANAGEMENTFACILITATORGUSTAV ATUE-mail : atukoby2003@yahoo.com

1Facilitator: Clifford Amoako AGENDA for TODAYOverview of course moduleMode of Delivery and AssessmentObjectives of Block OnePresentation of Block OneFriendly InteractionsPresentation of Block TwoBrief SMILES..Close till next time.

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.ghFacilitator: Clifford Amoako2Overview of the CourseThe course/module is to introduce students to the concept of Project Management as both an Accidental area and a Professional Discipline ;

It is also to introduce students to the functional knowledge areas of project management ; and

An understanding of some of the tools and techniques used in the ART and SCIENCE of Project Management.

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh3Facilitator: Clifford AmoakoMode of Delivery and Assessment

Power Point Presentation Class Discussions & Seminar PresentationsAdult Learning ApproachesDiscussion Of Practical Field Experiences

STUDENT ASSESSMENT 30% - Continuous Assessment70% - Final Examination

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Clifford Amoako e-mail: camoako.cap@knust.edu.gh4Objectives of Block OneTo introduce students to :

basic definitions in project management and;

project initiation management; the major phases of a project and project implementation;

Project Stakeholders and their role in project design/planning, implementation and management; and

Some of the skills and tools used to project management

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh5Facilitator: Clifford AmoakoProject Defined Project is defined as a Set of Well defined Inter-related Activities designed to achieve a Specific Objective and to be completed within a certain Time Frame and has a Budget. ( World Bank & Cambridge Int. Dic, 1997)

A Project thus, represents the commitment of (human and physical) resources to produce specific output in a given time and budget framework

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh6Facilitator: Clifford AmoakoPROJECT DEFINED contdIn all the cases above projects vary in scale, purpose, duration and complexities. As a result projects may stand alone or be integrated into a programme, with several projects contributing to one overall goal

In general, what one can say about a project is that:

It is an activity or a set of related activities for which money is spent in expectation of returns and which logically seems to lend itself to planning, financing and implementing as a unit7

7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh7Facilitator: Clifford Amoako Characteristic of A Project

A defined beginning and end i.e. specific timeframe ;

Resources allocated specifically(budget) ;

Follow a plan towards a clear intended end result ;

unique specifications ; and

Often cuts across organizational lines

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.ghFacilitator: Clifford Amoako8PROJECT LIFE CYCLEINITIAL CHARTERPLANDELIVERABLEP.I.R INITIATIONPLANNINGIMPLEMENTATIONCLOSE OUTTIME7 September 20129Clifford Amoako e-mail: camoako.cap@knust.edu.gh9Facilitator: Clifford AmoakoTHE PROJECT CYCLEProject Cycle

7 September 201210Clifford Amoako e-mail: camoako.cap@knust.edu.gh10Facilitator: Clifford AmoakoProject Cycle Social ProjectPre feasibility

FeasibililityPreparationAppraisalNegotiation & ApprovalIdentificationImplementationMonitoring & Evaluation

7 September 201211Clifford Amoako e-mail: camoako.cap@knust.edu.gh11Project Cycle-Constructional ProjectProject Identification &ProposalProject Feasibility StudyProject Design and EngineeringProject ImplementationProject Pre-feasibility Study Project Monitoring & Evaluation

7 September 201212Clifford Amoako e-mail: camoako.cap@knust.edu.gh12PROJECT ENVIRONMENTPHYSICAL ENVIRONMENTINSTITUTIONAL ENVTLEGAL/REGULATORY ENVTTECHNOLOGICAL ENVTSOCIO-CULTURAL ENVTECONOMIC/ FINANCIAL ENVT etc.

The above factors can affect and be affected by the design, implementation and operation of a project

7 September 201213Clifford Amoako e-mail: camoako.cap@knust.edu.gh13 Why Projects FailFailure to align project with organizational objectives; Poor scope;Unrealistic expectations;Lack of executive sponsorship;Lack of project management;Inability to move beyond individual and personality conflicts; andPolitics etc.

7 September 201214Clifford Amoako e-mail: camoako.cap@knust.edu.gh14Pole the audience for examples

Big DigProject FreshWhat constitutes at successful project?

NOTE: I have removed all references to the word business That seems a negative connotation to many, particularly in academic circles.

EXAMPLE of POOR SCOPE: Lets put in a new card reader system Why Projects Succeed!Project Sponsorship at executive level;

Good project charter;

Strong project management;

The right mix of team players;

Good decision making structure;

Good communication; and

Team members are working toward common goals etc.

7 September 201215Clifford Amoako e-mail: camoako.cap@knust.edu.gh15Good Charter includes good scope!

Put people in charge who have skills in leading and managing projects.Project Management: Unofficial DefinitionProject management is about organizationProject management is about changing peoples behaviorProject management is about decision makingProject management is about creating an environment conducive to getting critical projects done!

7 September 201216Clifford Amoako e-mail: camoako.cap@knust.edu.gh16Definition of Project ManagementProject management is defined as :

The application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations.

Project management thus involves utilizing a combination of systems, techniques and people to control and monitor activities undertaken within a project.

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh17Facilitator: Clifford Amoako Objective Of Project ManagementThe main objective of project management is a successful project.

A project will be deemed successful if it is completed:

Within time;

Within cost;

At the desirable performance/technology level;

While utilizing the assigned resources effectively and efficiently; and

5. Accepted by the customer/ Meets or exceeds expectations of stakeholder needs

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.ghFacilitator: Clifford Amoako18Why Project Management?Todays complex environments require ongoing implementations;

Project management is a method and mindseta disciplined approach to managing chaos;

Project management provides a framework for working amidst persistent change

7 September 201219Clifford Amoako e-mail: camoako.cap@knust.edu.gh19Business applications in an academic settingChallenges Of Project ManagementThe challenges of project management include:

Teambuilding ;

Planning and scheduling;

Coping with high expectations;

Conflict resolutions;

Project funding; and

Sustainability and post-implementation management etc.

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.ghFacilitator: Clifford Amoako20Who Then Is A Project Manager?

A person who takes ultimate responsibility for ensuring a project achieves the desired result on-time, within budget and to specification.

The duties of a project manager include:Project planning and scheduling

Communication and teambuilding

Monitoring and control (eg budgeting)

Problem and conflict resolution

Quality Control etc.To perform these duties well a project manager requires well developed communication, technical and personal skills

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.ghFacilitator: Clifford Amoako21The Project Manager?PM responsibilities to management Use resources efficiently Keep management informed Adhere to agreed policies and procedures PM responsibilities to the project and to the project team Keep the project on target Ensure required resources are available Co-ordinate the team Provide support

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.ghFacilitator: Clifford Amoako22Critical Characteristics of an effective project manager:Lead by exampleAre visionariesAre technically competentAre decisiveAre good communicatorsAre good motivatorsStand up to upper management when necessarySupport team membersEncourage new ideas23

7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh23Facilitator: Clifford AmoakoPROJECT MANAGEMENT KNOWLEDGE AREAS Project Integration ManagementProject Scope ManagementProject Time ManagementProject Cost ManagementProject Quality ManagementProject Human Resources ManagementProject Communications ManagementProject Risk ManagementProject Procurement Management24

7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh24Facilitator: Clifford AmoakoHow is Project Management Different from Classical Management A classical manager of an organization is engaged typically in planning, staffing, coordinating, controlling and directing- carrying out managerial functions,

The project managers role cuts across Strategic Planning, Financial Management, Resource Allocation- Scheduling, and integrating people, Management Functions, Providing Technical Direction.

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh25Facilitator: Clifford AmoakoProject Management ProcessesThere are 5 areas:Initiating Processes- authorising the project or phase

Planning Processes-defining the project objectives and selecting the most appropriate approach for the project to attain the objectives. (The use of logical framework etc.)

Executing Processes-managing the resources required to carry out the project as defined in the plan ( GANTT chart, Activity Schedules, Network Diagrams etc.)

Controlling Processes-ensuring that project objectives are met as defined by monitoring, measuring progress against plan, identifying variance from plan and taking corrective action. (M&E Plans)

Closing Processes-formalising acceptance of a phase and or the project and closing all associated activities.

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh26Facilitator: Clifford AmoakoProject Management TOOL KIT15 Functions Essential For Effective Project Management

Define project scopeIdentify stakeholders, decision-makers i.e.Develop detailed task listsEstimate time requirementsDevelop initial project management flow chartIdentify required resources and budgetEvaluate project requirementsIdentify and evaluate risksPrepare contingency plansIdentify interdependenciesIdentify and track critical milestoneParticipate in project phase reviewSecure needed resourcesManage the change control processesReport project status

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh27Facilitator: Clifford AmoakoCore Project Management ToolsProject CharterWork Breakdown Structure (WBS)Project ScheduleProject Budget

7 September 201228Clifford Amoako e-mail: camoako.cap@knust.edu.gh28Project Initiation ManagementProject CharterWhat must be done?What are the required resources?What are the constraints?What are the short and long term implications?Why do it?When must it be done?Where must it be done?Who does what?Who is behind the project?Who is funding the project?Who is performing the work of the project?

7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh29

Facilitator: Clifford Amoako29Typical Structure of Project CharterProject Goal & ObjectiveSponsorStakeholdersTimelineResources requiredDeliverablesDecision makingAssumptionsRisksBusiness process changesProject managerProject teamBudgetSignatures

7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh30Facilitator: Clifford Amoako30Management ActivitiesProposal writing.Project planning and scheduling.Project costing.Project monitoring and reviews.Personnel selection and evaluation.Report writing and presentations.

7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh31

Facilitator: Clifford Amoako31Project Stakeholders Analysis32

7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh32Facilitator: Clifford AmoakoWho are Stakeholders?

Stakeholders are persons, groups or institutions with interests in a project or programme.

These may include government agencies, private landowners and developers, community and other interest groups, non-government organizations, citizens etc. The list of stakeholders will depend on the project, conflict, or issues to be addressed..33

7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh33Facilitator: Clifford AmoakoWhat is Stakeholder Analysis?A technique to identify and analyse the stakeholders surrounding a project. It provides information on:

Who the stakeholders are, Their relationships, Their interests and expectations;The expected role/contribution to the project;The impact and/or benefits of the project to the various classes of stakeholders etc.

NB: Stakeholders may include your competitors

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh34Facilitator: Clifford AmoakoStakeholders Analysis contdBetter still...It Identifies key stakeholders and information about them such as:Organisation or affiliationProject roleUnique factsLevel of interestLevel of influenceSuggestions for managing the relationship with this stakeholder

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh35Facilitator: Clifford AmoakoImportance of StakeholdersHelp Planning Project;May be the reason for the project;Can sabotage the project**;Can Fund the project;May sustain the project;May be employed by the project;May even be killed by the project**;Simply have A STAKE IN YOUR PROJECT! etc.7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh36

Facilitator: Clifford Amoako36Project Integration Management37

7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh37Facilitator: Clifford AmoakoDEFINITIONIt is the processes involved in coordinating all of the other project management knowledge areas throughout a project life cycle.

3 Key Components of Project Integration ManagementProject Plan DevelopmentProject Plan ExecutionChange Control

Integration management is about integrating the work of the entire project team by focusing on high quality communication and relationship building. Thus project integration management includes what is known as Interface Management-or identifying and managing the points of interaction between the various project players and elements

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh38Facilitator: Clifford AmoakoThe Project PlanThe project plan is the core high-level document that guides a projects execution and control. Project plans:

Document assumptions, definitions and decisionsFacilitate stakeholder communicationDefine content, extent and timing of key management reviewsProvide a baseline for project control and measuring progressDefine the scope of the project

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh39Facilitator: Clifford AmoakoThe basic outline of a project plan is as followsIntroduction or Project OverviewProject nameProject descriptionProject sponsorProject manager Coordinates and IncentivizesKey team membersSummary of key DeliverablesList of reference documents or materialsGlossary of definitions and acronyms

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh40Facilitator: Clifford AmoakoProject Plan ExecutionTools and TechniquesSome of the specialised tools and techniques used by project managers for project plan execution include:

Project Management SoftwareMicrosoft ProjectPrimavera Project PlannerScheduler PlusOpen PlanStatus Review MeetingsRegularly scheduled status review meetings are a standard project management tool for:Exchanging project informationMonitoring progressMaintaining motivationManaging risksIdentifying issuesStakeholder communication

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh41Facilitator: Clifford AmoakoOverall Change ControlOverall Change control includes identifying, evaluating and managing project changes. Without proper change control, a project can easily drift into scope creep and severe cost and/or time over-runs.The 3 Overall Change control are:Making sure the changes are useful and beneficial (this usually involves making trade-offs)Determining if and when a change has occurred (and making sure senior management stays informed so there are no surprises) Managing actual changes as they occur42

7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh42Facilitator: Clifford AmoakoSuggestions for Managing Change ControlUnderstand that constant communication and negotiation is a normal part of the processPlan for changeEstablish formal change control systems and proceduresDefine procedures for quick decisions on small-scale changesUse status reports to identify and manage changeUse project management and other tools and processes to help manage and communicate changes

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh43Facilitator: Clifford AmoakoEND OF BLOCK ONE7 September 201244

Clifford Amoako e-mail: camoako.cap@knust.edu.ghFacilitator: Clifford Amoako44BLOCK TWO

SCOPE AND TIME MANAGEMENT

45Facilitator: Clifford AmoakoProject PlanningProject planning is a dynamic, cyclical process that continues throughout the project life cycle.

Project planning is a cycle that is repeated on an on-going basis. For the duration of the project. It is never finished. This is because resources change or move, factors in organisation may change causing project objectives to change, unknown risks can occur, technology may change, requiring project managers to continually monitor and manage this process through out the life of the project.

7 September 201246Clifford Amoako e-mail: camoako.cap@knust.edu.gh46Facilitator: Clifford AmoakoTHE PROJECT CYCLEProject Cycle

7 September 201247Clifford Amoako e-mail: camoako.cap@knust.edu.gh47Facilitator: Clifford AmoakoProject Definition KEY INPUT TO PROJECT DEFINITION

Clearly defined requirements Defined mission and objectives of the project Defined and agreed to statement of work

The statement of work or scope statement must clearly state the project objectives and should follow the SMART concept.

7 September 201248Clifford Amoako e-mail: camoako.cap@knust.edu.gh48Facilitator: Clifford AmoakoProject Definition OUTPUTS PROJECT DEFINITION Project Charter Stakeholder identification and assessment Risk identification, assessment and response Quality Plan Communication Plan Work Breakdown Structure

7 September 201249Clifford Amoako e-mail: camoako.cap@knust.edu.gh49Facilitator: Clifford AmoakoTriple constraintsThe triple constraints are the indicators used to measure the success of the project.

When defining a project it is imperative to establish the scope of the project in terms of time, cost and quality within the context of the agreed to deliverables.SCOPECOSTQUALITYTIME

7 September 201250Clifford Amoako e-mail: camoako.cap@knust.edu.gh50Facilitator: Clifford Amoako

Scope ManagementProject Scope Management can be defined as the processes involved in defining and controlling what is or is not included in a project.

The 5 key processes involved in scope management include:InitiationScope PlanningScope DefinitionScope VerificationScope Change Control

7 September 201251Clifford Amoako e-mail: camoako.cap@knust.edu.gh51Facilitator: Clifford AmoakoThe Analytical ApproachNeed, Funding and Will (NFW) ModelDo people agree that the project needs to be done?Is the organisation prepared to allocate sufficient funds for the project?Is there a strong will to make the project succeed?

Categorisation ApproachProblems, Opportunities and Directives (POD)Windows of Opportunity-categorisation based on estimated project time or completion datesOverall Priority-High, Medium or Low?

7 September 201252Clifford Amoako e-mail: camoako.cap@knust.edu.gh52Facilitator: Clifford AmoakoThe Analytical ApproachFinancial Models

Net Present Value (NPV)Provides a way of comparing projects of different duration, cost and expected benefitsAll projected future costs and returns are discounted or brought back to a present value.The NPV approach involves the following steps:Estimate and itemize each cash inflow and outflow for the project and when it is expected to occur.Determine the appropriate discount rate.Discount each cash inflow and outflow to the present time period.Add together all the discounted inflows and outflows.

7 September 201253Clifford Amoako e-mail: camoako.cap@knust.edu.gh53Facilitator: Clifford AmoakoThe Analytical ApproachFinancial Models contd

b. Return on Investment (ROI) (ROI) also uses discounting (ROI)=Income/Investment(ROI)=NPV/Discounted Cost or(ROI) = (total discounted benefits-total discounted costs)/discounted costsc. Payback Period= the amount of time it takes before discounted benefits exceed discounted costsd. Weighted Scoring ModelIdentify selection criteriaAssign a weight to each criterionCalculate weighted score for each project by multiplying weight by score and summing for each projectProject with highest weighted score wins

7 September 201254Clifford Amoako e-mail: camoako.cap@knust.edu.gh54Facilitator: Clifford AmoakoScope PlanningScope Planning involves developing documents to clarify project scope and the basis for project decisions including criteria for phase sign-off

The scope statement or statement of work, is the key document used to enunciate and confirm the scope of the project. It should include the following:Project justificationProject productsSummary of project deliverablesScope management planScope Definition- The Work Breakdown Structure

7 September 201255Clifford Amoako e-mail: camoako.cap@knust.edu.gh55Facilitator: Clifford AmoakoScope PlanningThe next step in scope management is scope definition-or breaking the work down into manageable pieces. Good scope definition:Helps improve the accuracy of time, cost and resource estimatesDefines a baseline for performance measurement and project controlAssists in communicating work responsibilities

7 September 201256Clifford Amoako e-mail: camoako.cap@knust.edu.gh56Facilitator: Clifford AmoakoThe Work Breakdown Structure (WBS)The Work Breakdown Structure (WBS) is defined as: a deliverables-oriented depiction of the work involved in a project that defines the total scope of the project.

A key strategy of effective planning is to break the project down into manageable components of work that can be individually planned, estimated and managed. The process of breaking the work done is called the The Work Breakdown Structure.

7 September 201257Clifford Amoako e-mail: camoako.cap@knust.edu.gh57Facilitator: Clifford AmoakoThe Work Breakdown Structure (WBS)Without the WBS, there is no schedule or cost control in modern project management.

The WBS must not only cover the product of the project, but also the elements related to initiating, planning, implementing, and completing activities of the project. The content should be as explicit as possible.

The WBS should answer the following questions:Does the detail in the WBS reflect the entire project?Are the work packages SMART?Have the tasks been defined clearly?

7 September 201258Clifford Amoako e-mail: camoako.cap@knust.edu.gh58Facilitator: Clifford AmoakoThe Work Breakdown Structure (WBS)(WBS) RulesBegin with the scope statementTask descriptions developed using a verb and a nounDevelop WBS to lowest level of control required to effectively manage a projectEach work package is developed to accomplish a discrete and separate element of workAllow assignment to a single organisational unit for exclusive responsibilityOrganise the WBS by Task:PhaseActivityTaskStepOROrganise the WBS by deliverables:HardwareSoftwareNetwork

7 September 201259Clifford Amoako e-mail: camoako.cap@knust.edu.gh59Facilitator: Clifford AmoakoThe Work Breakdown Structure (WBS)4 basic approaches to creating work breakdown structures

Using guidelinesThe analogy approach- this is basically using WBS developed for another project as a template

The Top-Down Approach-this conventional method of creating a WBS from scratch involves starting with the largest project items and then breaking them down into sub-tasks

4. The Bottom-Up-Approach-it involves listing all the detailed tasks first and then grouping or arranging them into higher level categories.

7 September 201260Clifford Amoako e-mail: camoako.cap@knust.edu.gh60Facilitator: Clifford AmoakoEXAMPLES OF WORK BREAKDOWN STRUCTURES 61IRRIGATION PROJECTLAND PREPARATIONTRAININGCREDIT SCHEMEMARKETINGDAM

7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh61Facilitator: Clifford AmoakoThe Numbering or Coding System -WBS62HOUSE1.0.0CIVIL1.1.0PLUMBING1.2.0ELECTRICAL1.3.0Foundations1.1.1Walls/Roof1.1.2Piping1.2.1Wiring1.3.1Fitting1.3.2H/C Water1.2.27 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh62Facilitator: Clifford AmoakoBenefits and uses of WBSBenefitsIdentifies all work necessary to accomplish the objectives and refines the objectivesIdentifies only the necessary workIdentifies specific work packages for estimating and assigning workProvides a structure for measuring successForces detailed planning and documentationClarifies responsibilitiesBuilds team member commitment

7 September 201263Clifford Amoako e-mail: camoako.cap@knust.edu.ghFacilitator: Clifford Amoako63Benefits and uses of WBS contdUses of WBS

Planning and budgetingFundingEstimatingSchedulingPerformance measurementConfiguration managementIntegrated logistic supportTest and performance evaluationIts a necessary 1st step and primary source of information for the development of a schedule and net work of activities tools.

7 September 201264Clifford Amoako e-mail: camoako.cap@knust.edu.ghFacilitator: Clifford Amoako64EXERCISE ON WORK BREAKDOWN STRUCTURE (WBS)

1.Select a project of your choice (new or completed) and break it down into sub-units (components and sub-components). Draw a work breakdown structure showing the relationship of the sub-units. Indicate how you will use the WBS to: Constitute a project team Cost the project Schedule the implementation

2. Alternatively, construct the WBS for the following projects: Village ClinicCommunity Centre HIV/AIDS Education

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh65Facilitator: Clifford AmoakoSCHEDULE DEVELOPMENT TOOLSThe key project management tools used to develop accurate and effective schedules include: Network diagrams, GANTT charts and Critical Path analysis

7 September 201266Clifford Amoako e-mail: camoako.cap@knust.edu.gh66Facilitator: Clifford AmoakoNETWORK DIAGRAMS64825731A=2C=3D=3B=3F=4I=2E=3H=4G=1

7 September 201267Clifford Amoako e-mail: camoako.cap@knust.edu.gh67Facilitator: Clifford AmoakoTHANK YOU

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7 September 2012Clifford Amoako e-mail: camoako.cap@knust.edu.gh68Facilitator: Clifford Amoako