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  • 1. Project Management Merrie Phinney
  • 2. Day 1: Overview of Project Management Define Project and Project Management Describe the three constraints that affect project success Describe the main phases of the project management processes Establish project objectives Apply the management by objectives (MBO) methodology
  • 3. What is a Project? A project is a temporary endeavor undertaken to accomplish a unique product or service with a defined start and end point and specific objectives that, when attained, signify completion. PMBOK definition PMBOK is a trademark of the Project Management Institute
  • 4. What can go wrong in a Project? The major cause of project failure is not the specifics of what went wrong, but rather the lack of procedures, methodology and standards for managing the project. PMBOK definition PMBOK is a trademark of the Project Management Institute
  • 5. 5
  • 6. 60 50 40 % success 30 fail cancel 20 10 0 1994 1995 1998 2000
  • 7. How can we reduce the risks?
  • 8. How Project Management can help Single point of contact and accountability for the overall success of the project Focuses on meeting customer needs and ensuring satisfaction Improves performance in time, cost and technical areas Focuses on managing project scope and controlling change Helps avoid disasters by managing risks Strengthens project teams and improves internal morale
  • 9. History of Project Management In 1917 Henry Gantt developed the Gantt chart as a tool for scheduling work in job shops Modern project management began with the Manhattan Project (circa 1943), which led to the development of the atomic bomb In 1958, the Navy pioneered the use of PERT network charts In the 1970s, the military began the broad use of project management software, as did the construction industry. By the 1990s, virtually every industry uses some form of project management
  • 10. What is Project Management? Project management is the application of knowledge, skills, tools, and techniques applied to project activities in order to meet or exceed stakeholder needs and expectations from a project. PMBOK definition PMBOK is a trademark of the Project Management Institute
  • 11. The Triple Constraint
  • 12. Scope Creep 1. Add Time- delay the project to give you more time to add the functionality ($) 2. Add Cost- recruit, hire or acquire more people to do the extra work ($) 3. Cut Quality- trade off some non-essential requirements for the new requirements ($)
  • 14. Read this quote from a Petrobras executive, citing the benefits of cutting quality assurance and inspection costs:
  • 15. on the project that sunk into the Atlantic Ocean off the coast of Brazil in March 2001.
  • 16. "Petrobras has established new global benchmarks for the generation of exceptional shareholder wealth
  • 17. through an aggressive and innovative programme of cost cutting on its P36 production facility.
  • 18. Conventional constraints have been successfully challenged
  • 19. and replaced with new paradigms appropriate to the globalised corporate market place.
  • 20. Through an integrated network of facilitated workshops,
  • 21. the project successfully rejected the established constricting and negative influences of prescriptive engineering,
  • 22. onerous quality requirements, and outdated concepts of inspection and client control.
  • 23. Elimination of these unnecessary straitjackets has empowered the project's suppliers and contractors to propose highly economical solutions,
  • 24. with the win-win bonus of enhanced profitability margins for themselves
  • 25. The P36 platform shows the shape of things to come
  • 26. in the unregulated global market economy of the 21st Century.
  • 27. And now you have seen the final result of this proud achievement by Petrobras.
  • 28. "We can do GOOD, QUICK and CHEAP work. You can have any two but not all three. 1. GOOD QUICK work won't be CHEAP. 2. GOOD CHEAP work won't be QUICK. 3. QUICK CHEAP work won't be GOOD."
  • 29. Project Management Processes
  • 30. Management by Objectives (MBO) Approach Establish clear and realistic objectives Good objectives are clearly stated and contain a measure of how to assess whether they have been achieved. To be realistic, objectives must be determined jointly by managers and those who perform the work.
  • 31. Exercise 1: Setting Clear Objectives To have the painter paint my office a pleasing color
  • 32. But the ceiling is oppressive! Not only did you paint Ceilings should never be the same color aswallswalls. They my office the blue, but you painted the ceiling should always be a lig