Project Management

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Project Management
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Outline

• What is a project?
• Project management drivers
• Project objectives and project life cycle
• Organizational aspects
• Planning tools
• Critical Path Method (CPM)
• Program Evaluation and Review Technique (PERT)

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What Is A Project?
Unique, one-time operation designed to accomplish a specific set of objectives in a limited time frame.

• Temporary
• Unique product or service

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Examples of Projects

• Construction projects.
• Dams, freeways, houses, etc.
• New product development.
• Marketing campaigns (service).
• Mergers, acquisitions (service).
• Software development.
• Use of a manufacturing line to produce standard
  products.

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History

• Large and complex RD projects by US military
  (1930-).
• Manhattan project, Polaris missile program,
  Apollo space program, etc.
• Automotive companies, airline industry.
• Since then, non-military public sector, private
  and volunteer organizations use project
  management to achieve their goals, and to
  increase their effectiveness.

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Project Management Drivers

• Expansion of knowledge.
• Different disciplines contribute to the solution
  of development, production and distribution of
  goods and services.
• Demand for complex, customized products.
• Product design needs to be integrated with the
  production and distribution systems.
• Worldwide markets for production and consumption
  of goods and services.
• Competition forced by the economic system.
• Decreasing time-to-market.
• Expanding size of projects.

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Project Management Drivers

• These forces increase the complexity of
  operations and the knowledge necessary to answer
  the questions of what, where, when to produce and
  how to distribute cannot be provided by
  individuals any more.
• Teams are used for decision making and action,
  and this calls for a high level of interaction
  and coordination.

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Three Project Objectives

• Performance (conformance to specifications)
• Cost
• Time

• Project management is about managing the
  trade-offs between these three objectives.

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Project Manager

• The project manager is responsible that proper
  knowledge and resources are available where and
  when needed, and that the project is completed
  on-time and within budget.
• The rapid growth of project-oriented
  organizations leads to a project manager career
  path.

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Project Manager

• Project Management Institute established in 1969,
  had 7,500 members until 1990, 17,000 by 1995 and
  86,000 by the end of 2001.
• Exponential growth due to a major increase in
  project-oriented organizations and number of
  projects.
• Software industry and IT projects.
• Istanbul Proje Yönetim Dernegi has currently 415
  members.

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Project Life Cycle( Completion) Vs. (Time)

• Slow start (initial resources assigned, PM
  selected, program organized).
• Quick momentum.
• Slow finish (many parts must come together at the
  end).

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Project Life CycleTime Distribution of Project
Effort

• The slow-finish effect is also a result of
  changing the levels of resources dedicated to the
  project during successive phases of the life
  cycle.

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Project Life CycleTime Distribution of Project
Effort

• Conception
• Selection
• Planning, scheduling, monitoring, control
• Evolution and termination

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Project Life CycleReducing Uncertainty in
Estimates

• At the beginning of the project.

• Toward the end.

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Project Attributes

• Purpose
• One time activity with a well-defined set of
  desired end results.
• The project is divided into tasks that are
  complex on their own.
• The tasks need to be coordinated in terms of
  timing, precedence, cost and performance.
• Life cycle
• Slow beginning, buildup, peak, decline and
  termination.
• Projects are sometimes terminated by being phased
  into normal ongoing operations.

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Project Attributes

• Interdependencies
• Projects interact with
• Other projects being carried out in the
  organization
• Ongoing routine operations
• Uniqueness
• No two construction or RD projects are the same.
  
• By the presence of risk (for instance financial
  volatility, long project durations), projects
  cannot be regarded as routine.

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Project Attributes

• Conflict for resources.
• Competition with the regular functional
  departments.
• Project-to-project competition.
• Competition among team members.

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Strategic and Organizational Issues

• Key decisions for the organization
• Deciding which projects to implement
• Selecting a project manager
• Selecting a project team
• Planning and designing the project
• Managing and controlling project resources
• Deciding if and when a project should be
  terminated

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Project Selection

• Project selection is the process of evaluating
  individual projects or groups of projects and
  then choosing to implement some subset of them so
  that the objectives of the organization will be
  achieved.
• Many projects fall outside the organizations
  stated mission or are unrelated to the
  organizations strategy or goals.
• Excessive costs relative to benefits.

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Project Selection Problem

• Multi-objective nature
• Financial, organizational, etc. objectives.
• Types of project selection models
• Simple weighted scoring models
• Financial models (payback period, net present
  value, internal rate of return, etc.)
• Goal programming, data envelopment analysis
• Risk analysis and management is essential
• Simulation models

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The Project Manager

• Takes responsibility for starting, planning,
  implementing and completing the project.
• Typically, the PM is chosen as soon as the
  project is selected for funding.

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Functional and Project Manager Compared
Functional Manager

Project Manager

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PMs Project Responsibilities

• Responsibility to the parent organization
• The senior management must be fully informed
  about status, cost and timing at all times. Risks
  need to be communicated properly.
• Responsibility to the client
• Performance and time.
• Responsibility to the project team

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Acquiring Personnel
Concerns by Functional Manager

• PM chooses FMs best workers for project
• Project more glamorous than steady functional
  duties

Concerns by Acquired Team Member

• FM controls evaluation, salary promotion

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Characteristics of Effective Team Members

• High-quality technical skills
• Political sensitivity
• Strong problem orientation
• Strong goal orientation
• High self-esteem

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Interfacing a Project

• How to tie the project to the parent
  organization?
• How to organize the project itself?
• How to organize activities related to other
  projects?
• Here, we focus on the interface of the project
  with the parent organization.
• This interface is usually determined by senior
  management, but affects the work of the PM
  significantly.

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Functional Organization

Organization chart for a university
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Functional Organization

• A particular functional department is given the
  duty of project management.
• Typically, the one with the closest interest in
  the outcome of the project.
• New product
• Either engineering or marketing
• Personnel database development
• Either IT or human resources.

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Advantages/Disadvantages of Functional
Organization

• Advantages
• Highly flexible staff use. Ease of switching
  experts among projects in same functional
  division.
• Technological continuity
• Quicker career advancement of specialists
• Disadvantages
• Project not client focused. Slow response to
  client needs
• Different goals between functional parent
  division and project
• PM competes with FM for role of central project
  responsibility
• Weaker project team motivation than in pure
  project organization

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Pure Project Organization

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Advantages/Disadvantages of Pure Project
Organization

• Advantages
• PM with full project authority. Unity of command.
• Shorter communication lines than in functional
  organization. Faster decision making.
• Higher project commitment of team
• Organization is structurally simple and flexible
• Disadvantages
• Duplication of staff among projects
• Experts develop too much depth --- not enough
  breadth
• Inconsistency in carrying out policies and
  procedures
• Excessive attachment of team to project
• Team worries of life after the project ends

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The Matrix Organization

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Advantages/Disadvantages of Matrix Organization

• This structure is a mix between functional and
  pure project organizations.
• So, it balances advantages and disadvantages of
  these two types.