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Project Management

1. Introduction

a. Course aim

b. Business organization development

c. The “Project”: definition and characteristics

d. Project Management

e. Conditions to manage a good project

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Project definition

“…Projects mean achieving defined targets respecting time andbudget. Projects cut the traditional organization lines(functional). Projects are unique tasks never similar to pastprojects…A project may be like a complete new productdevelopment process, a new company or another specificresult. The target to achieve, often, is more important thanthe process adopted to achieve it. Both, product and process,have to be the object of an effective management system”

da R.D. Archibald, “Managing High-Technology Programs and Projects”, NewYork,Wiley, 1976.

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Project definition

What is a project?

• Every non-routine job…

• Something finalized to achieve specific operational results…

• Something having constraints of:– time

– cost

– quality

• …involving several units or roles belonging to different functions, temporarily joined in an inter-functional team.

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Project definition

What is a process?

Perf. index 1

KPI

INPUT OUTPUT

Target/ customer

OWNER

Organized set of activities and decisions, aimed to create an output requested by a customer, who assigns a defined value to it

Perf. index 2

Perf. index n…

ACTIVITY ACTIVITY ACTIVITY ACTIVITY ACTIVITY

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Project definition

Project is a impulse process

Project

Single outputExplicit targetsDefined timeParallel interdependences

Impulse process

Process

Repetitive and standardizedImplicit targetsPermanentSequential interdependences

Flow process

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Project definition

Project and process – some examples

Impulse process

Flow process

Internalcustomer

External customer

Research

Organization innovation

Management innovation

Marketing activities

Product development

Internal production

Maintenance

Planning

Finance and control

Sales

Service

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Project definition

Project and process – management guidelines

How to control

Focus on

Report standardization

Frequency

Information

Feed-fwd (forecast)

Effectiveness (things happen)

Low

Upon event

Timely

Feed-back (report)

Efficiency (resources used)

High

Defined frequency

Precise

Impulse process Flow process

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Project definition

Process and project

Perf. Index 1

Perf. Index 2

Perf. Index 3

KPI

INPUT OUTPUT

TARGET

OWNER

PROCESS

PROJECTS

TARGETSRESOURCES

PLANNINGTIME

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Project definition

Typical business projects are:

– A new product

– A new organizational procedure;

– Implementation of a new cost control system;

– A new production site (facility);

– Production transfer between two facilities;

– A new market conquest;

– A new product market launch;

– Reengineering of a organization structure;

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Project definition

Projects:

• Have defined targets

• Have a Start and an End

• Are managed by a specific organization

• Have Project Managers responsible for their development

• Are defined by specifying starting points, intermediate

activities and final results

• Are single efforts to achieve explicit targets in a defined time

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Project definition

The Human Resource: the most precious resource.

• Projects are places where people work together

• The correct spirit/culture to achieve results together is

cooperation

• The “project spirit”:

– Taking part in it,

– Giving help,

– Achieving goals with the same individual dignity

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Project definition

Kinds of projects

External customer

Internal customer

Design-to-order projects

Internal services prjs

New product development

Huge innovation

Requests known in

advance (the customer

explains specifications)

Requests unknown in

advance (customer’s target)

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Project Management

1. Introduction

a. Course aim

b. Business organization development

c. The “Project”: definition and characteristics

d. Project Management

e. Conditions to manage a good project

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Project Management

Old history

“For which of you, desiring to put up a tower, does not first give much thought to the price, if he will have enough to make it complete?

For fear that if he makes a start and is not able to go on with it to the end, all who see it will be laughing at him and saying, This man made a start at building and is not able to make it complete.

Or what king, going to war with another king, will not first take thought if he will be strong enough, with ten thousand men, to keep off him who comes against him with twenty thousand?

Or while the other is still a great distance away, he sends representatives requesting conditions of peace.”

(Lc 14, 28-32)

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Project Management

Historic evolution

• The issue of managing projects came out in ancient times in several ways(military, construction, buildings, shipping, etc…)

• It became object of study starting from the end of the XIX century (Gantt)• It was developed during the WWII because of war military industry needs• In the middle of the XX century, the first formalized techniques were born

(Pert/CPM) to manage military and aerospace projects• From the 60’s some tools enter in the managing system of big industries

(DuPont, Remington Rand, ecc…)• From the 80’s it was extended to other kind of companies and business• During the 90’s it became the most common method to manage projects

and no-repetitive activities in business and organizations.

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Project Management

Historic evolution

A historical change of view: the Liberty ships case

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Project Management

Historic evolution

A historical change of view: the Apollo Space Program case

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Project Management

What is the Project Management?

• PM is a method that considers a project like a target toachieve respecting time, cost and quality

• PM is a systemic application of knowledge, capabilities,tools and techniques to every project’s activity in order toachieve the business target!

• PM requests a balance between:

– Target, time, cost, quality– Needs of people involved in it

– Defined and non-defined requests (expectations).

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Project Management

PM basic elements:

• Setting targets (Goal Setting)

• Setting models to evaluate results

• Planning activities to achieve results

• Defining resources needed

• Controlling activities progress

• Setting corrective actions

• Evaluating results

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Project Management

The project target:

• Is not often easy to define

• Is not often easy to communicate

• If the target is well defined and shared, then the probabilities

to achieve it are huge (goal setting)

• A defined target is not easy to modify

• There are primary and secondary targets

• Is very important to balance target and time

Clip Coach Carter 103-104-105 – Goal setting

Challenging but realistic and reachable goals- Agreed upon- Assignment of priorities - Goals measurable according to specific criteria previously defined - Clarity of operational conditions needed to achieve targets - Complex goals: interdepartmental projects

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Project Management

Project target: must be S.M.A.R.T.

• Specific – targets must be specific and non generic

• Measurable – targets must be measurable with numbers

• Achievable – targets must be achievable; impossible missions are non admitted!

• Relevant – targets must be important for business AND for involved people

• Timed – targets must be referred to a time limit

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Project Management

Results evaluation (terms/guidelines):

• Quality of results (compared with specifications)

• Forecasted time observance

• Resources used in a correct way

• Satisfaction of who was involved in the project

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Project Management

Planning:

• Planning is the main PM tool

• Planning is used to forecast and anticipate events and

activities in order to prepare the team to face them in the best

way

• Planning allows to understand the impacts of un-expected

events and to choose the correct action to solve the problem

• Planning allows to be flexible because is a strong “What-If” tool

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Project Management

1. Introduction

a. Course aim

b. Business organization development

c. The “Project”: definition and characteristics

d. Project Management

e. Conditions to manage a good project

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Conditions to manage projects

Why do many projects fail?

• Why don’t many projects respect timing?

• Why do many projects end up with higher costs than

anticipated?

• Why do many projects have poor results?

• Why do many projects end somewhere in the middle of their

life?

What is so difficult in project management???

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Conditions to manage projects

• If basic conditions are respected, we can reduce failure

probability.

• Those conditions may belong to two classes:

– RATIONAL – It’s the set of rules and methods to manage projects; and is

about basic variables: targets, resources, skills, tools, etc…

– RELATIONAL – PM is an organization method that enhances the

relationship dynamics (work with…), therefore everything is connected

with teamwork, relations between people and external functions,

environment, market, customer, etc…

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Conditions to manage projects

Effectiveness

Efficiency

People

Activities

Structure

Tools

Organizational environment

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Conditions to manage projects

RATIONAL DIMENSION = we need to define:• Targets – What do we have to do?

• Time – When do we have to end?

• Activities – What is the sequence of activities to achieve the target?

• Financial resources – How much money will it cost?

• Human resources – Who will perform the activities?

• Control – How can we measure the project progress?

• Corrective actions – What can we do when something unexpected

happens?

• Final result – What product/service will result from the project?

• End – When can we say that the project is ended?

• Result evaluation – Who and how will evaluate results?

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Conditions to manage projects

RATIONAL DIMENSION = The Plan

Activities map

• Planning is the tool that, in a formal way, allows us to set all the activities

needed to manage the project and to achieve the target. The plan allows us

to control milestones, deliveries, responsibilities (who does what), progress

(delay, advance) and is the basis for all decisions about the project

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Conditions to manage projects

RATIONAL DIMENSION = The Plan

Tool to discover and solve problems

• The plan is the most effective tool to discover every potential project

problem or risk and understand the impact on the final target. It is a very

effective what-if tool to make the best decisions or to define alternative

scenarios.

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Conditions to manage projects

RATIONAL DIMENSION = The Plan

Communication tool

• The plan is a fantastic communication tool for who is involved in the project

(always updated with: what to do, who is responsible, when, who with,

costs, ….and the project progress), as well as for the management and the

external organization. This is a very important thing because when

everybody knows the project’s “Big picture”, they may be more effective

and accurate in answering.

Africa 1942 Case

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Conditions to manage projects

RATIONAL DIMENSION = The Plan

Planning became an habit

• Often the plan is just a piece of paper…. A beautiful colored picture in the

wall… Done and forgotten. No one finds it useful.

• Plan must be a live tool, updated with frequency. It is the organizational

environment of the project. It shows what, how, when, who of the project!!

• To build a good project environment, everyone in the company must know

planning culture, starting from top management.

• Every manager must know the planning tool and technique!!

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Conditions to manage projects

RATIONAL DIMENSION = The Plan

The planning body trap

• Lover planner – the plan is not the target of the project!

• Deus plan – the plan is not untouchable. Planning is necessary to check

“what-if” scenarios and alternative choices, so it is normal to change it!

• Tenacity (excessive) – the plan represents activities and events, it doesn’t

represent the reality in all its details

• Forgotten picture – if the plan is too complex, it will not be a work tool, but

it will end its days hanged in some wall like a beautiful picture….as a pop art

masterpiece!