PROJECT MANAGEMENT PROJECT MANAGEMENT GROWTH: CONCEPT and GROWTH: CONCEPT and

DEFINITIONSDEFINITIONS

By : Wiji Nurastuti, MT

GENERAL SYSTEM MANAGEMENTGENERAL SYSTEM MANAGEMENT

Organizational theory and management philosophies have undergone a dramatic change in recent years with the emergence of the project management approach to management. Because project management is an outgrowth of system management, it is only fitting that the underlying principles of general systems theory be described.

General system theory implies the creation of a management technique that is able to cut across many organizational disclipines-finance, manufacturing, engineering, marketing and so on-while still carrying out the functions of management.

Project Management 1945-1960Project Management 1945-1960During the 1940s, line managers used the concept

of over the fence management to manage projects.

Project Management 1960-1985Between the middle and late 1960s, more

executives began searching for new management techniques and organizational structures that could be quickly adapted to a changing environment. The table below and Figure 2-1 identify two major variables that executives consider with regard to organizational restructuring

Type of industryType of industry TasksTasks EnvironmeEnvironmentnt

AA

BB

CC

D D

Simple Simple

Simple Simple

Complex Complex

Complex Complex

Dynamic Dynamic

Static Static

Dynamic Dynamic

Static Static

Continue Project Management 1960-1985Continue Project Management 1960-1985

Almost all type C and most type D industries have project management-related structures. The key variable appears to be task complexity.

In informal project management, just as the words imply, the projects were handled on an informal basis whereby the authority of the project manager was minimized.

The following five questions help determine whether formal project management is necessary:◦ Are the jobs complex?◦ Are there dynamic environmental considerations ◦ Are the constrains tight?◦ Are there several activities to be integrated?◦ Are there several functional boundaries to be crossed?

FIGURE 2-1. Matrix Implementation scheme

GREATER NEED FOR UNDERSTANDING HUMAN BEHAVIOR

OP

ER

AT

ION

AL

EN

VIR

ON

ME

NT

TYPE OF TASK

DYNAMIC

(INFORMAL PROJECT

MGT.)

1980S

1960S : TOTALLY PROJECT DRIVEN

1970S

COMPLEX

STATIC

SIMPLE

PROJECT MANAGEMENT 1985-2003PROJECT MANAGEMENT 1985-2003

By the 1990s, companies had begun to realize that implementing project management was a necessity, not a choice. The question was not how to Implement project management, but how fast could it be done?

There are six driving forces that lead executives to recognize the need for project management:◦Capital project ◦Customer expectation

Table 2-1 Life Cycle Phases for Project Table 2-1 Life Cycle Phases for Project

Management MaturityManagement Maturity EmbryoniEmbryonic Phasec Phase

Executive Executive Management Management Acceptance Acceptance PhasePhase

Line Line Management Management Acceptance Acceptance

Growth PhaseGrowth Phase Maturity PhaseMaturity Phase

RecognizRecognize need e need

RecognizRecognize e benefits benefits

RecognizRecognize e applicatiapplications ons

RecognizRecognize what e what must be must be doesdoes

Visible executive Visible executive support support

Executive Executive understanding of understanding of project project management management

Project Project sponsorship sponsorship

Willingness to Willingness to change way of change way of doing businessdoing business

line line management management support support

Line Line management management commitment commitment

Line Line management management education education

Willingness to Willingness to release release employees for employees for project project management management training training

use of life-use of life-cycle phasescycle phases

development development of a project of a project management management methodology methodology Commitment to Commitment to planning planning Minimization of Minimization of “creeping “creeping scope”scope”

Selection of a Selection of a project tracking project tracking system system

development development of a of a management management cost/schedule cost/schedule control system control system Integrating cost Integrating cost and schedule and schedule controlcontrol

Developing an Developing an educational educational program to program to enhance project enhance project management management

skillsskills

Project management can be used to help such companies remain competitive during periods of growth and to assist in determining capacity constrains.

Because of the interrelatedness of these driving forces, some people contend that the only true driving forces is survival. This is illustrated in Figure 2-4. when the company recognizes that survival of the firm is at stake, the implementation of project management becomes easier

SURVIVALSURVIVALCustomers’Expectations

Capital projects

Competitiveness

ExecutiveUnderstanding

New ProductDevelopment

Efficiency andEffectiveness

FIGURE 2-4. The components of survival. Source: Reprinted from H. Kerzner, In Search ofExcellence in Projeck Manegement. New York: Wiley, 1998, p.51.

PROJECT MANAGEMENT GROWTH: CONCEPT AND DEFINITIONS

FIGURE 2-7. Industry Classification (by project management utilization)

• PM has P & L Responsibility

• PM is a recognizedProfession

• Multiple career Paths

• Income comes fromproject

• Primarily production • driven but with• Many projects• Emphasis on new • Product development• Marketing oriented• Short product life • Cycles• Need for rapid • development process

• Very few projects• Profitability from • Production• Large brick walls• Long life cycle• Products

Project Driven

Project Management

HybridNon-

Project - Driven

ProgramManagement

Product Management

Present Past

1960 – 1990

Hybrid

Traditional Project Modern ProjectManagement Management

1990 – 2003

Hybrid

Entrance via project Driven divisions suchas MIS and R&D

Entrance viaMarketing, engineering, and R&D

FIGURE 2-8. From hybrid to project-Driven

SYSTEMS PROGRAMS, AND SYSTEMS PROGRAMS, AND PROJECTS A DEFINITION PROJECTS A DEFINITION

Business practitioners define a system as A group of elements, either human or nonhuman, that is organized and arranged in such a way that the elements can act as a whole toward achieving some common goal or objective.

If a system is significantly dependent on other systems for its survival, then it is an extended systems.

Once a group of tasks is selected and Once a group of tasks is selected and considered to be a project, the next step is to considered to be a project, the next step is to define the kinds of project units. There are four define the kinds of project units. There are four categories of projects :categories of projects :

Individual projects: these are short-duration project normally assigned to a single individual who may be acting as both a project manager and a functional manager

Staff projects: these are project that can be accomplished by one organizational unit, say a department.

Special projects: often special project occur that require certain primary functions and/or authority to be assigned temporarily to other individuals or units.

Matrix or aggregate projects: these require input from a large number of functional units and usually control vast resources

PRODUCT VERSUS PROJECT PRODUCT VERSUS PROJECT MANAGEMENT: A DEFINITION MANAGEMENT: A DEFINITION

Project management and product management are similar, with one major exception: the project manager focused on the end date of this project, whereas the product manager is not willing to admit that this product line will ever end. The product manager wants his product to be as long lived and profitable as possible. Even when the demand for the product diminishes, the product manager will always look for spin-offs to keep his product alive.

Figure 2-10 shows the relationship between project and product management

VICE PRESIDENTGENERALMANAGER

RESEARCHSALES/

MARKETING

NEWBUSINESS

ONGOINGBUSINESS

MANU ENG FINANCEADMPERS

PRODUCTION ADMIN

MARKETRESEARCH

PLANNING

A

B

C Z

Y

X

PRODUCT MANAGERSPROJECT MANAGERS

FIGURE 2-10. ORGANIZATIONAL CHART

MATURITY AND EXCELLENCE : A MATURITY AND EXCELLENCE : A DEFINITION DEFINITION

Maturity in project management is the implementation of a standard methodology and accompanying processes such that three exists a high likelihood of repeated successes.

The definitions of excellence can be stated as Organizations excellence in project management are those that create the environment in which there exists a continuous stream of successfully managed project and where success is measured by what is in the best interest of both the company and the project.

Projects

Failures

MATURITY

Successes

EXCELLENCE

2 YEARS 5 YEARS

TIME

FIGURE 2-11. The growth of excellence

PROJECT MANAGEMENT GROWTH: CONCEPTS AND DEFINITIONS

Life cycle phasese

Policy and Proceduremanuals

GuidelinesPer Life CyclePhase

General Project

guideliness

Checklists with Periodic review

points

1970s

CONVENTIONAL PROJECT MANAGEMENTPROJECT

MANAGEMENT WITH

CONCURRENTENGINEERING

EARLY 1980s Mid-1980s Late 1980s 1990s

FIGURE 2-12. Evolution of policies, procedures, and guidelines.

THE MANY FACES OF SUCCESSTHE MANY FACES OF SUCCESS

Success is defined as a point on the time, cost, quality/performance grid.

Typical KPIs include◦ Use of the project management methodology◦ Establishment of the control processes use of

interim metrics◦ Quality of interim metrics◦ Quality of resources assigned versus planned

for◦ Client involvement

RELATIVEMAGNITUDO OF

DOCUMENTATION

• HIGH INTENCITY CONFLICTS

• RESISTANCETO MULTIPLEBOSSREPORTING

• RELIANCE ON POLICIES/PROCEDURES

• INVISIBLESPONSORS

• POWER/AUTHORITYPROBLEMS

• CONTINUOUS MEETINGS

POLICIES ANDPROCEDURES

GUIDELINESPER LIFECYCLE PHASE

GUIDELINESPER PROJECT

CHECKLISTS FOREND-OF-PHASE-REVIEWS

• CONTINUOUS COMPETITIONFORRESOURCES

• CONSTANTLYCHANGINGPRIORITIES

• POORMOTIVATION

• PROTECTION MEMOS

• SCHEDUULESLIPPAGES

• CREEPING SCOPE

• TRUST• COMMUNI-

CATION• COOPERA

TION • TEAMWORK

• DEVELOPMENT OF AMETHODOLOGY

• LIFE-CYCLEPHASES

• CORE SKILLSTRAINING

FORMAL PROJECT MANAGEMENT INFORMAL PROJECT MANAGEMENT

GENERAL MATURITY PATH

CRITICAL ISSUES

THE MANY FACES OF FAILURETHE MANY FACES OF FAILURE

Failure is virtually assured since we have defined failure as unmet expectations.

Perceived failure is the net sum of actual failure and planning failure.

In figure 2-15, project management has planned a level of accomplishment © lower than what is achievable given project circumstances and resources (D). This is a classic under planning situation. Actual accomplishment (B), however, was less than planned.

None

A

Actual Planned achievable Perfection B C D E

Accomplishment PerceivedFailure

Actual Failure

Planningfailure

FIGURE 2-15. Components of failure (pessimistic planning)

NoneA

Actual Planned achievablePerfection

B C D E

Accomplishment Perceived Failure

Actual Failure

Planningfailure

THE STAGE-GATE PROCESSTHE STAGE-GATE PROCESS

The four most common decisions are◦Proceed to the next gate based upon the

original objectives.◦Proceed to the next gate based upon revised

objectives◦Delay making a gate decision until further

information is obtained◦Cancel the project

PROJECT LIFE CYCLE PROJECT LIFE CYCLE

During the past few years, there has been at least partial agreement about the lifecycle phases of a product. They include:

◦Research and development ◦Market introduction ◦Growth◦Maturity ◦Deterioration ◦Death

PROJECT MANAGEMENT PROJECT MANAGEMENT METHODOLOGIES : A DEFINITION METHODOLOGIES : A DEFINITION

Achieving project management excellent, or maturity, is more likely with a repetitive process that can be used on each and every project. This repetitive process is referred to as the project management methodology.

Good methodologies integrate other processes into the project management methodology as shown in Figure 2-24

Figure 2-24 Integrated Processes for The twenty-first Figure 2-24 Integrated Processes for The twenty-first century century

Project Management

Total Quality Management

Risk ManagementChange

Management

Concurrent Engineering

SYSTEMS THINKING SYSTEMS THINKING The system approach may be defined as a logical and

disciplined process of problem solving. The word process indicates an active ongoing system that is fed by input from is parts.

The systems approach :◦ Forces review of the relationship of the various subsystems◦ Is a dynamic process that integrates all activities into a

meaningful total system.◦ Systematically assembles and matches the parts of the

system into a unified whole◦ Seeks an optimal solution or strategy in solving a problem

System thinking is vital for the success of a project. Project management system urgently need new ways of strategically viewing, questioning and analyzing project needs for alternative non technical and technical solutions. The ability to analyze the total project, rather than the individual parts, is essential for successful project management.

Referensi By : Kerzner, Harold, 2003. “Project Management : a systems approach to planning, scheduling and controlling”, John Willey & Sons

TERIMA KASIHTERIMA KASIH