the theory - need to k

8/8/2019 The Theory - Need to K

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Project Management

Fundamentals

Session 2


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Projects Fuel the Turnaround at

Mattel

Mattel Corporation a world leader in

design, manufacturing and sales ofgames, toys, and other family products


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The story

Entered the year 2000 with a number of problems.

To present a tarnished image to the general public.

The sales of new product lines had been disappointing

Acquisitions had not lived up to expectations (Learningcompany)

Websites were outdated and unappealing

Cos. financial situation was troubled.

Y2K


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Steps Taken

Announced restructuring plan that involved Sale of corporate assets, including unprofitable

units

Reorganization of a number of operationsincluding Information Technology group

Reduction of shareholder dividends

By then investors had already given their opinion

of the companys outlook. Stock value sunk from $40 per share to just $10

per share


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Major Changes

Joe Eckroth (hired as part of restructuring efforts)

Eckroth embarked a series of moves to change the manner in

which Mattel had been operating.

He used Project base approach to reorganize the 600 person

IT dept,

worked with brand managers to update Web sites,

launched new employee rating system and

initiated a number of cost cutting measures to trim wastage.

Each of these project initiatives contributed to the rapidshoring up of Mattels operations


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Outcome

Marked effect on financial health

Reflected in stock price that steadily climbed over 2

yrs to more than double

By 2004, Mattel has continued to work to shore upthe sales to its flagship brands while entering

international markets in a big way.

NPD and market penetration projects will continue to

form the basis for Mattels competitive strategy


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Overview of Project Life Cycle

Work to be executed between the start and the close of the projectis called the project lifecycle.

Project Lifecycle is divided into phases:

Each phase isaset of interrelated,sequentialactivities

Afterexecuting one phase,deliverableshanded overto next phaseThedeliverables ofa phaseare pre-requisites fornext phase

Nextstagestarts onlyaftersatisfactoryhand-off

Decision-making control gate

Between end of one phaseandstart of next

Projectresultsarereviewed

Projectmaybeterminatedatany gateIf project in its present formcannotmeetthedesired objectives

If need forproject objectives is non-existent


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Project Life Cycle

Includes phases necessary to work a project frombeginning to end.

The transition from one phase to another isgenerally recognized by some kind of adeliverable or handoff.

Phases define

Work to be done (in that phase)

When deliverables are generated Resources used in that phase

Control of each phase


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Project Life Cycle

Four Phases of the Project Lifecycle

Conceptualization Phase

Development Phase

Execution Phase

Finishing


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ConceptualConceptualConceptualConceptualConceptual Planning Execution Termination

Intensity

Level

Client Interest

Creativity

Project Stake

Resources

Uncertainty

Project life cycles and their effects


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Client Interest : The level of enthusiasm or concern expressed by

the project's intended customer. Clients can be either internal to

the organization or external.

Project Stake : The amount of corporate investment in the project.

The longer the life of the project, the greater the investment

Resources : The commitment of financial, human, technical

resources over the life of the project Creativity : The degree of innovation required by the project,

especially during certain development phases

Uncertainty : The degree of risk associated with the project.

Riskiness here reflects the number of unknowns, including technical

challenges that the project is likely to face. Uncertainty is highest atthe beginning because many challenges have yet to be identified.


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Determinants of Project Success Triple Constraints

Client Acceptance

It is not enough to assess a project according to its immediatesuccess.

To evaluate it in terms of commercial success and well as itspotential for generating new business and opportunities

4 relevant dimensions Project efficiency : Meeting Budget & Schedule expectations Impact on the customer : Tech specs, addressing cust. Needs,

customer satisfaction

Business success : commercial success

Future potential : opened new markets or new product lines

or helped to develop new technology


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Typical cost and staffing level across the

project life cycle


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Impact of Variable based on Project Time


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Product and Project Life Cycles -

DifferencesThough a product is created by a project, the business might be operatingbefore the start of the project, with additional products or services routinely

handled as part of its operation.

The project creates the product, result or service and hands it over to theoperation. The operation then uses the projects product and maintains it till

the products utility is exhausted.

Project life covers the project time span, namely the time during which a

specific product, result or service is created by the project. Product life cycle

is the whole life of the product from its conception, creation and use till theend.


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Product and Project Life Cycles -

DifferencesThus, onlyasmall part ofthe productlife,the partduring whichthe

productservice orresult iscreated,constitutesthe projectlifecycle.

Attheend ofa productslife,somemodifications orextensive

remodeling wouldbe plannedandanotherprojectwouldbestarted forsuchwork.


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Project Managers Role

The projectmanagersrole involves:Understanding projectand itsscope

Identifying keystakeholdersandmanaging theirexpectations

Preparing detailed plans foraction for

Executing projectwork

Meeting projectschedule

Meeting projectcostManaging projectteamand vendors

Managing risks proactively

Integrating subset plans formanagementscope,time,cost,quality,riskby

suitablecoordination andtrade-offs

Communicating projectstatusto stakeholders

Executing thedetailed project planMonitoring project progressandtaking correctiveactions


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End of Project Fundamentals

the theory - need to k

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