figure 2.7 time, cost and quality trianglegsme.sharif.edu/~projectmanagement/pmsession3.pdf · ·...
TRANSCRIPT
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Project ManagementSharif MBA – Fall 1385
Session 3 - Dr. Sepehri
Project LifecycleBurke Chapter 3
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Time, Cost and Quality Triangle
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Project Environment Model
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Project Stages & Gates
The starting point in the development of Project Management methodology is the implementation of a stage-gate process.
Stage-gate process requires a life-cycle and process owner definition.
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Stages & Gates
Groups of series or parallel activities (based upon the risks of the project)
Managed by cross-functional teams
To reach a predetermined deliverable established by management
Structured decision points at the end of each stage
Number of gates must be limited
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Project Phases and
the Project Life Cycle
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Project Phases and
the Project Life CycleOrganizations performing projects will usually divide each project into several project phases to improve management control and provide for links to the ongoing operations of the performing organization. Collectively, the project phases are known as the project life cycle.Each project phase is marked by completion of one or more deliverables. A deliverable is tangible, verifiable work product such as a feasibility study, a detail design, or a working prototype. The conclusion of a project phase is generally marked by a review of both key deliverables and project performance to date,to a) determine if the project should continue into its next phase and b) detect and correct errors cost effectively. These phase-end reviews are often called phase exits, stage gates, or kill points.
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Definition of a project life cycle
ResourcesUtilized
RES
OU
RC
ES
TIME
CONCEPTUAL PHASE
DETAILEDPLANNING PHASE
FEASIBILITY ANDPRELIMINARY
PLANNING PHASE
IMPLEMENTATIONPHASE
CONVERSIONOR TERMINATION
PHASE
PMO PM
O *
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Project Phases and the Project Life Cycle
The phase sequence defined by most project life cycles generally involves some form of technology transfer or handoff such as requirements to design, construction to operations, or design to manufacturing. Deliverables from the preceding phase are usually approved before work starts on the next phase. However, a subsequent phase is sometimes begun prior to approval of the previous phase deliverables when the risks involved are deemed acceptable.
This overlapping phases is often called fast tracking.Project life-cycle descriptions may be very general or very detailed. Highly detailed descriptions may have numerous forms, charts, and checklists to provide structure and consistency. Such detailed approaches are often called project management methodologies.
Care should be taken to distinguish the project life cycle from the product life cycle. For example, a project undertaken to bring a new desktop computer to market is but one phase or stage of the product life cycle.
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Project Phases and the Project Life Cycle
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Gatekeepers
Individuals (i.e. sponsors) or groups of individuals assigned by senior managementEmpowered to enforce the structured process (including change management)Authorized to evaluate performance and make decisionsAnd willing to provide the team necessary technical and business information
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Gatekeeper’s decisions
Proceed to next gate with the original objectives
Proceed to the next gate with revised objectives
Delay making a gate decision until further information is obtained
Terminate the project
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Stage-Gate Failures
Assigning gatekeepers and not empowering them to make decisions
Assigning gatekeepers who are afraid to terminate a project
Failure to provide the team with information critical to gate reviews
Allowing the team to focus more on the gates than on the stages
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Project Life-Cycle (level of effort)
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Project Life-Cycle Components
(for a typical project)
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Potential to Add Value / Cost of Changes
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Project Life-Cycle (level of detail)
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Product life-cycle
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Product Life-Cycle (Frigate/Military Project)
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Product Life-Cycle (Computer System)
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Product Life-Cycle (Nuclear Power Station)
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Project Phases and Project Life Cycle
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The Three-Legged Stool
ProjectManager
LineManagement
ManagementSenior
(I.e. Sponsor)
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Project Manager vs. Line Manager
Functional Manager:Defines how the work will be done!Provide sufficient resources.Has responsibility for the deliverables.
Project Manager:Completes task definitions.Resource requirements definitionsMajor timetable milestonesEnd-item quality and reliability requirementsBasis for performance measurements
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SponsorshipSponsorship
Most projects also havea project sponsor which may or may
not reside at the executive levels
of management.
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PM LM LM LM
PM = Project ManagerAPM = Assistant Project ManagerLM = Line or Functional Manager
APM
APM
SPONSOR GM
Multiple Boss Reporting
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Classical Management
PlanningOrganizingStaffingControllingDirecting
Which of the above is Usually NOT
performed by the project manager?
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Promises Made???PromotionGradeSalaryBonusOvertimeResponsibilityFuture work assignments
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The Functional Role
The functional manager has the responsibility to define how the task will be done and where the task will be done (i.e., the technical criteria)The functional manager has the responsibility to provide sufficient resources to accomplish the objective within the project’s constraints (i.e., who will get the job done).
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Functional Obstacles
Unlimited work requests (especially during competitive bidding)Predetermined deadlinesAll requests having a high priorityLimited number of resourcesLimited availability of resourcesUnscheduled changes in the project planUnpredicted lack of progress
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Functional Obstacles(continued)
Unpredicted lack of progressUnplanned absence of resourcesUnplanned breakdown of resourcesUnplanned loss of resourcesUnplanned turnover of personnel
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Sponsorship
Scope of WorkScope of Work
Master PlanMaster Plan
Project Org. StructureProject Org. Structure
Key StaffingKey Staffing
PoliciesPolicies
Monitoring ExecutionMonitoring Execution
Executive Client ContactExecutive Client Contact
ProjectSponsorProjectSponsor
ClientClient
ProjectSponsorProjectSponsor
ProjectManagerProject
Manager
ProjectManagerProject
Manager
ProjectTask Force
ProjectTask Force
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Project Team
Project Team
ProjectManagerProject
Manager
The Project Sponsor InterfaceThe Project Sponsor Interface
Project ManagerProject
Manager
ProjectSponsorProjectSponsor
• Objective Setting• Up-Front Planning• Project Organization• Key Staffing• Master Plan• Policies• Monitoring Execution• Priority-Setting• Conflict Resolution• Executive-Client Contact
• Objective Setting• Up-Front Planning• Project Organization• Key Staffing• Master Plan• Policies• Monitoring Execution• Priority-Setting• Conflict Resolution• Executive-Client Contact
Relationship:Relationship:
Project Sponsor:Lower/Middle Management
Project Sponsor:Lower/Middle Management
Project Sponsor:Senior Management
Project Sponsor:Senior ManagementPriority ProjectsPriority Projects
Maintenance ProjectsMaintenance Projects
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Project Vs. Functional Influences
Project Influence in Decision-Making
Dual Influence
FunctionalOrganization
Matrix ProjectOrganization
Rel
ativ
e In
fluen
ce
Functional InfluenceIn Decision-Making
Organization
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Types of Cultures
Cooperative
Non-cooperative
Competitive
Isolated (large companies)
Fragmented (multinational)
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LowLow
NeutralNeutral
HighHigh
Resistance to ChangeResistance to Change
FinanceFinance H.R.H.R. Eng.Eng. I.T.I.T.SalesSalesMarketingMarketing ProcurementProcurement Manu.Manu. R&DR&D
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Resistance to Change
Work HabitsNew guidelines/processesNeed to share power informationCreation of a fragmented work environmentNeed to give up established work patternsChange in comfort zones
Social GroupsUnknown new relationshipsMultiple bossesMultiple, temporary assignmentsSevering of established ties
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Resistance to ChangeEmbedded Fears
Fear of failureFear of terminationFear of added workload Fear or dislike of uncertainty/unknownFear of embarrassmentFear of “we/they’ organization
Wage and Salary AdministrationShift in authority and powerLack of recognition after the changesUnknown rewards and punishmentsImproper evaluation of personal performanceMultiple bosses
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Change ProcessChange ProcessSu
ppor
t for
Cha
nge
Supp
ort f
or C
hang
e
TimeTime
DenialDenial
ResistanceResistance
ExplorationExploration
ResistanceResistance
SupportSupport
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The Tip-of-the-iceberg SyndromeDELEGATION
OF AUTHORITY TO PROJECT MANAGER
EXECUTIVE MEDDLING
LACK OF UNDERSTANDING OF HOW PROJECTMANAGEMENT SHOULD WORK
LACK OF TRAINING IN COMMUNICATIONS / INTERPERSONAL SKILLS
Many Of The Problems Associated With Project Management WillSurface Much Later In The Project And Result In Much Higher Costs
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Successful Culture
A good daily working relationship between the project manager and those line managers who directly assign resources to projectsThe ability of functional employees to report vertically to their line manager at the same time they report horizontally to one or more project managers
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The Definition Of Success
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SuccessSuccess
Definition of Success
Primary Factors• Within Time• Within Cost• Within Quality• Accepted by The Customer
Definition of Success
Primary Factors• Within Time• Within Cost• Within Quality• Accepted by The Customer
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SuccessSecondary Factors:
o Customer Referenceo Follow-on Worko Financial Successo Technical Superiorityo Strategic Alignmento Regulatory Agency Relationso Health and Safetyo Environmental Protectiono Corporate Reputationo Employee Alignmento Ethical conduct
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SuccessCritical Success Factors (CSFs) [Focuses on the Deliverables]
Key Performance Indicators (KPIs) [Focuses on the Execution Metrics of the Process]
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Key Performance Indicators
These are shared learning topics which allow us to maximize what we do right and correct what we do wrong.
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Success: Point Or Cube?Success: Point Or Cube?
Cos
tC
ost
TimeTime
Quality
(or scope)Quality
(or scope)
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Components of FailureComponents of Failure
NoneNoneAA
PerceivedFailure
PerceivedFailure
ActualActual PlannedPlanned PerfectionPerfectionAchievableAchievableBB CC DD
Actual FailureActual FailurePlanningFailure
PlanningFailure
EE
Accomplishment
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Components of FailureComponents of Failure
NoneNoneAA
Perceived FailurePerceived Failure
ActualActual PlannedPlanned PerfectionPerfectionAchievableAchievableBB CC DD
ActualFailureActualFailure
PlanningFailure
PlanningFailure
EE
Accomplishment
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Mitigation Strategies Available
ProjectObjectives
ProjectObjectives
ProjectPlanningProject
Planning
Schedule RiskAssessment
Schedule RiskAssessment
Financial RiskAssessment
Financial RiskAssessment
Technical RiskAssessment
and Forecasting
Technical RiskAssessment
and Forecasting
Market RiskAssessment
and Forecasting
Market RiskAssessment
and Forecasting
ProjectExecution
ProjectExecution
TechnicalStrategy
TechnicalStrategy
Product
/Mark
et
Strateg
y
Product
/Mark
et
Strateg
y
Opportunities for TradeoffsResulting from Risk Analyses
Opportunities for TradeoffsResulting from Risk Analyses
Numerous Limited
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Risk Planning
Poor Risk ManagementPoor Risk Management
TechnicalInabilityTechnicalInability
Customer E
xpectatio
ns
Customer E
xpectatio
ns
Actual Performance
Actual PerformancePerf
orm
ance
Perf
orm
ance
TimeTime
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Project Management Inputs
ProjectManagement
ProjectManagement
OrganizationOrganization
WorkTasks
WorkTasks
ToolsMethodology
ToolsMethodology
PeoplePeople
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Integrated Processes(Past, Present, and Future)
Integrated Processes(Past, Present, and Future)
Yrs: 1990-2000
• Project management
• Total quality management
• Concurrent engineering
• Scope change management
• Risk management
• Project management
• Total quality management
• Concurrent engineering
• Scope change management
• Risk management
Yrs: 2000-2010
• Supply chain management
• Business processes
• Feasibility studies
• Cost-benefit analyses (ROI)
• Capital budgeting
• Supply chain management
• Business processes
• Feasibility studies
• Cost-benefit analyses (ROI)
• Capital budgeting
IntegratedProcesses
IntegratedProcesses
CurrentIntegratedProcesses
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Integrated Processes for The 21st CenturyIntegrated Processes for The 21st Century
Project ManagementProject Management
ConcurrentEngineeringConcurrentEngineering
Total QualityManagementTotal QualityManagement
RiskManagement
RiskManagement
ChangeManagement
ChangeManagement