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    Project ManagementProject Management

    G.Purandaran

    M.Tech (I.I.T-Madras)PGDM (I.I.M-Bangalore)

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    What is a ProjectWhat is a Project

    One Time Large Investment

    No Revenue

    Wide variety of Skills used and of igh !ali"er #se of S$ecial $ur$ose e%ui$ment for short

    duration

    Involvement of many s$eciali&ed agencies

    Technology'Wide (ariety

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    What is Project Management?

    Project : A group of milestones or

    phases, activities or tasks that

    support an eort to accomplishsomething

    Management : is the process of

    Planning, Organizing, Controlling

    and Measuring

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    Project...Project...

    A collection o lin!ed acti"ities# carried out

    in an organised manner#$ith a clearl%

    deined &TA'T PIT and *D PIT toachie"e some s+eciic results desired to

    satis% the needs o the organisation at the

    current time

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    5

    !o$yright ) *+++ Project ,anagement Institute-

    Inc. /ll Rights Reserved.

    +erations

    Semi'$ermanent charter-

    organi&ation- and goals

    ,aintains status %uo

    Standard $roduct or service

    omogeneous teams

    Ongoing

    !ontrast Projects and O$erations!ontrast Projects and O$erations

    Projects

    !reate o0n charter-

    organi&ation- and goals

    !atalyst for change

    #ni%ue $roduct or service

    eterogeneous teams

    Start and end date

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    !haracteristics of a Project!haracteristics of a Project

    ave a $ur$ose

    ave a life cycle

    Interde$endencies

    #ni%ueness

    !onflict

    Chapter 1-

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    The 1efinition of a 2Project3The 1efinition of a 2Project3

    ,ust make a distinction "et0een terms45Program' an e6ce$tionally large- long'range o"jective

    that is "roken do0n into a set of $rojects5Tas!' set of activities com$rising a $roject

    5Wor! Pac!ages' division of tasks

    5Wor! ,nits' division of 0ork $ackages

    In the "roadest sense- a $roject is a s$ecific-

    finite task to "e accom$lished

    Chapter 1-!

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    Where We /re No0Where We /re No0

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    1efining the Project1efining the Project

    Ste$ *4 1efining the Project Sco$e

    Ste$ 74 8sta"lishing Project Priorities

    Ste$ 94 !reating the Work :reakdo0n Structure

    Ste$ ;4 Integrating the W:S 0ith the Organi&ation

    Ste$

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    Ste$ *4 1efining the Project Sco$eSte$ *4 1efining the Project Sco$e

    Project Sco$e5/ definition of the end result or mission of the $roject

    =a $roduct or service for the client>customer=in

    s$ecific- tangi"le- and measura"le terms.

    Pur$ose of the Sco$e Statement5To clearly define the delivera"le?s@ for the end user.

    5To focus the $roject on successful com$letion

    of its goals.

    5To "e used "y the $roject o0ner and $artici$ants

    as a $lanning tool and for measuring $roject success.

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    411

    Project Sco$e !hecklistProject Sco$e !hecklist

    *. Project o"jective

    7. 1elivera"les

    9. ,ilestones;. Technical re%uirements

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    412

    Project Sco$e4 Terms and 1efinitionsProject Sco$e4 Terms and 1efinitions

    Sco$e Statements5/lso called statements of 0ork ?SOW@

    Project !harter

    5!an contain an e6$anded version of sco$e statement

    5/ document authori&ing the $roject manager to initiate

    and lead the $roject.

    Sco$e !ree$

    5The tendency for the $roject sco$e to e6$and overtime due to changing re%uirements- s$ecifications- and

    $riorities.

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    413

    Ste$ 74 8sta"lishing Project PrioritiesSte$ 74 8sta"lishing Project Priorities

    !auses of Project Trade'offs5Shifts in the relative im$ortance of criterions related

    to cost- time- and $erformance $arameters"#udget$Cost

    "%chedule$&ime

    "Performance$%cope

    ,anaging the Priorities of Project Trade'offs

    5!onstrain4 a $arameter is a fi6ed re%uirement.

    58nhance4 o$timi&ing a criterion over others.5/cce$t4 reducing ?or not meeting@ a criterion

    re%uirement.

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    414

    Project ,anagement Trade'offsProject ,anagement Trade'offs

    IG,'* ./

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    415

    Project Priority ,atri6Project Priority ,atri6

    IG,'* .0

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    416

    Ste$ 94Ste$ 94 !reating the Work!reating the Work

    :reakdo0n Structure:reakdo0n Structure

    Work :reakdo0n Structure ?W:S@

    5/n hierarchical outline ?ma$@ that identifies the

    $roducts and 0ork elements involved in a $roject.51efines the relationshi$ of the final delivera"le

    ?the $roject@ to its su"delivera"les- and in turn-

    their relationshi$s to 0ork $ackages.

    5:est suited for design and "uild $rojects that have

    tangi"le outcomes rather than $rocess'oriented

    $rojects.

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    417

    ierarchicalierarchical

    :reakdo0n of:reakdo0n of

    the W:Sthe W:S

    IG,'* .1

    B This "reakdo0n grou$s 0ork

    $ackages "y ty$e of 0ork 0ithin a

    delivera"le and allo0s assignment

    of res$onsi"ility to an organi&ational

    unit. This e6tra ste$ facilitates a

    system for monitoring $roject$rogress ?discussed in !ha$ter *9@.

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    418

    o0 W:S el$s the Project ,anagero0 W:S el$s the Project ,anager

    W:S5Cacilitates evaluation of cost- time- and technical

    $erformance of the organi&ation on a $roject.

    5Provides management 0ith information a$$ro$riate

    to each organi&ational level.

    5el$s in the develo$ment of the organi&ation

    "reakdo0n structure ?O:S@. 0hich assigns $roject

    res$onsi"ilities to organi&ational units and individuals

    5el$s manage $lan- schedule- and "udget.

    51efines communication channels and assists

    in coordinating the various $roject elements.

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    419

    Work :reakdo0n StructureWork :reakdo0n Structure

    IG,'* .

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    420

    Work PackagesWork Packages

    / 0ork $ackage is the lo0est level of the W:S.5 It is out$ut'oriented in that it4

    1' (e)nes *ork +*hat'

    ' .denti)es time to complete a *ork package +ho*

    long'/' .denti)es a time-phased 0udget to complete

    a *ork package +cost'

    ' .denti)es resources needed to completea *ork package +ho* much'

    2' .denti)es a person responsi0le for units of *ork +*ho'

    3' .denti)es monitoring points +milestonesfor measuring success'

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    421

    Ste$ ;4Ste$ ;4 Integrating the W:SIntegrating the W:S

    0ith the Organi&ation0ith the Organi&ation

    Organi&ational :reakdo0n Structure ?O:S@

    51e$icts ho0 the firm is organi&ed to discharge its

    0ork res$onsi"ility for a $roject.

    " Provides a frame*ork to summarizeorganization *ork unit performance'

    " .denti)es organization units responsi0le

    for *ork packages'" &ies the organizational units

    to cost control accounts'

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    422

    Integration ofIntegration of

    W:S and O:SW:S and O:S

    IG,'* .2

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    423

    Ste$

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    424

    W:S !odingW:S !oding

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    425

    Res$onsi"ility ,atricesRes$onsi"ility ,atrices

    Res$onsi"ility ,atri6 ?R,@5/lso called a linear res$onsi"ility chart.

    5Summari&es the tasks to "e accom$lished and

    0ho is res$onsi"le for 0hat on the $roject.

    "4ists pro6ect activities and participants'

    "Clari)es critical interfaces 0et*een unitsand individuals that need coordination'

    "Provide an means for all participants to vie*

    their responsi0ilities and agree on theirassignments'

    "Clari)es the e7tent or t8pe of authorit8 thatcan 0e e7ercised 08 each participant'

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    426

    Res$onsi"ility ,atri6 for a ,arket Research ProjectRes$onsi"ility ,atri6 for a ,arket Research Project

    IG,'* .3

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    427

    Res$onsi"ility ,atri6 for the !onveyor :elt ProjectRes$onsi"ility ,atri6 for the !onveyor :elt Project

    IG,'* .4

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    428

    Project !ommunication PlanProject !ommunication Plan

    What information needs to "e collectedand 0henD

    Who 0ill receive the informationD

    What methods 0ill "e used to gatherand store informationD

    What are the limits- if any- on 0ho has

    access to certain kinds of informationD

    When 0ill the information "e communicatedD

    o0 0ill it "e communicatedD

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    429

    Information NeedsInformation Needs

    Project status re$orts 1elivera"le issues

    !hanges in sco$e

    Team status meetings

    Eating decisions

    /cce$ted re%uest changes

    /ction items

    ,ilestone re$orts

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    1evelo$ing a !ommunication Plan1evelo$ing a !ommunication Plan

    *. Stakeholder analysis

    7. Information needs

    9. Sources of information

    ;. 1issemination modes

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    431

    Shale Oil Research Project !ommunication PlanShale Oil Research Project !ommunication Plan

    IG,'* .5

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    Fey TermsFey Terms

    6ost accountMilestone

    rgani7ation 8rea!do$n structure (B&)

    &co+e cree+

    Priorit% matri9

    'es+onsi8ilit% matri9

    &co+e statement

    Process 8rea!do$n structure (PB&)Wor! 8rea!do$n structure (WB&)

    Wor! +ac!age