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Advanced Project Management


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Title: Advanced Project Management

Advanced Project Management
  • Level 6

Session 1
  • Managing and Leading Projects

Learning Outcomes
  • At the end of this session candidates will be
    able to
  • Explore the various definitions and
    characteristics of a project
  • Analyse the difference between leadership and
    management relating to projects
  • Explore why organisations in different sectors
    need to engage in projects and consider different
    types of project
  • Evaluate the importance and relationship of
    project and people management in achieving
    project goals.
  • Demonstrate an understanding of external business
    environmental factors and how they may affect a
  • Critically evaluate the concept of power and
  • Identify the key stakeholders for a purchasing
    and logistics project and how their power and
    influence change throughout the life of the

Definitions of Project Management
  • A set of activities with a defined start point
    and a defined end state, which pursues a defined
    goal and uses a defined set of resources. (Slack
    et al)
  • ... A temporary endeavour undertaken to create a
    unique product or service. (US PMI)
  • ... The process by which projects are defined,
    monitored, controlled delivered.....desired
    outcome......bring about change (APM)

  • Cips Study Guide
  • a group of activities that have to be performed
    in a logical sequence to meet pre-set objectives
    outlined by client
  • Meredith Mantel
  • a specific, finite task to be accomplished......p
    roject seen as a unit....characteristics..importan
    ce, performance, lifecycle, interdependencies,
    uniqueness, resources and conflict
  • What are key features? Group exercise

Distinctions between Leadership and Management
  • Leadership is the lifting of a persons vision
    to higher sights, the raising of performance to a
    higher standard, the building of personality
    beyond its normal limitations.
  • Nothing better prepares the ground for such
    leadership than a spirit of management that
    confirms in the day-to-day practices of the
    organisation strict principles of conduct and
    responsibility, high standards of performance and
    respect for the individual and his work.
  • Drucker The Practice of Management

What do Managers Do?
  • Plan
  • Organise
  • Coordinate
  • Control
  • Lead
  • Fayol
  • Is this mainly a shorter term focus?
  • Establishing overall purpose or policy
  • Forecasting and planning
  • Organising and allocating work
  • Giving instructions
  • Checking performance
  • Coordinating the work of others
  • Buchanan

What do Leaders Do?
  • Enable people and groups to achieve their
  • Set and communicate objectives
  • Monitor performance and give feedback
  • Establish basic values
  • Clarify and solve problems for others
  • Organise resources
  • Longer term?
  • Administer rewards and punishments
  • Provide information, advice and expertise
  • Provide social and emotional support
  • Make decisions on behalf of others
  • Represent the group to others
  • Arbitrate in disputes
  • Act as a father figure
  • Become a scapegoat

Leader or Manager?
  • Group exercise
  • What do you see as the key differences between
    management leadership?
  • Which skills are more important in project
  • Recap Kotter p 11 effective v efficient?
  • Also Mintzberg p 12
  • 1

Reasons that Organisations Undertake Projects
  • Change in
  • The external environment
  • Markets and customer needs
  • Technology
  • Products and services
  • Processes
  • Globalisation
  • Impatient customers
  • Increasing demand for unique and customised
  • Change within organisations initiated by senior
  • Paired ex list examples for each point above
    own org. or alternative

Hard or Soft Projects
  • Hard normally refer to tangible, measurable
    activities and processes
  • Soft human factors and processes eg
    communication, behavioural change and acceptance
  • Can you easily distinguish simply between these
    two aspects of project work
  • Is Millau Bridge a hard project?

Hard vs Soft Projects
  • Product development p8
  • Process development eg BPR
  • Re-design/modification of products and processes
  • Technology development
  • Installation of new IT systems example p9
    London Ambulance Service
  • Site relocation/closure
  • Culture change
  • Introduction of a new organisational structure
  • A new appraisal scheme
  • How would you categorise each of these?
  • Lysons categorisation of projects
  • Manufacturing projects
  • Construction projects
  • Management projects
  • Research projects
  • Too simplistic?

Constituents of the Project Context
  • PEST/SLEPT factors
  • Porters 5 Forces analysis
  • Stakeholders
  • Resource constraints
  • Time constraints
  • Overall strategy of the organisation
  • CIPS syllabus
  • Complexity
  • Completeness
  • Competitiveness
  • Customer focus
  • Maylor

Common Stakeholder Expectations
  • Fit for purpose
  • Aesthetically pleasing
  • Free from defects
  • Delivered on time
  • Value for money
  • Reasonable running costs
  • Satisfactory reliability/durability
  • Supported by worthwhile guarantees
  • Which stakeholders do each of above relate to?

Stakeholder Power/Interest Matrix
Level of interest
Keep informed
Minimal effort
Stakeholders are likely to move between segments
during the life of a project
Keep satisfied
Key players
Source Mendelow, 1991
How do you keep stakeholders satisfied?
  • Satisfaction perception expectation
  • Manage their expectations
  • Re projects may be necessary to sell the
    final outcome
  • Ensure know actual requirements dont
  • Keep advised of progress
  • Spec exam paper Sportsco Q 1

Session 2
  • Managing and Leading Projects

Learning Outcomes
  • At the end of this session candidates will be
    able to
  • Evaluate and explain the idea of the project as a
    conversion or transformation process.
  • Explore the concept of variety and volume in
    defining the nature of an operation and evaluate
    its application to project management.
  • Describe the role of a project selection

A Project is a Conversion Process
Input resources Materials Information Customers
Input resources
Output (product/ service)
The project (transformation process)
Input trans- forming resources Facilities Staff
Conversion Process
Inputs Transformed into Outputs Same as a
process? What other input resources do you need?
See p 30
Projects as a Technology
Small batch
Large batch
Process plant
The Project Model
  • Constraints
  • Financial
  • Legal
  • Ethical
  • Environmental
  • Logic
  • Activation
  • Time
  • Quality
  • Indirect effects

Output satisfied need
Input Want/need
  • Mechanisms
  • people
  • knowledge expertise
  • capital
  • tools techniques
  • technology

Project Constraints
Group exercise Discuss examples and give reasons
why Maylor lists these factors - in previous
slide -as constraints in his ICOM model
Project Portfolio Process
  • How many projects can an organisation handle?
  • Identify projects that satisfy strategic needs
  • They support multiple goals feasible?
  • They drive organisational improvement why might
    these take priority?
  • They enhance/enable key areas how determine?

Portfolio Process
  • Prioritise candidate projects
  • Limit active projects to a manageable level do
    you always have necessary resources?
  • Identify risk-intensive efforts why?
  • Balance short-, medium- and long-term returns
    why is this important?
  • Prevent projects getting in the back door
    how/why might this happen?
  • Meredith Mantel, 2005

Project Selection Factors - Issues to Consider
  • Operations
  • Interruptions, learning, process
  • Marketing
  • Customer management issues
  • Financial
  • Return on investment what is acceptable?
  • Personnel
  • Skills and training, working conditions what
    impact on employee motivation?
  • Administrative
  • Regulatory standards, strategic fit with
  • Meredith Mantel, 2005

Strategic Success Factors
  • Project mission clearly defined and agreed
  • Top management support top managers must get
    behind the project and make clear to all
    personnel at the outset their support
  • Project action plan showing details of the
    required steps and resource requirements in the
    implementation process
  • Group ex how would getting each of these
    factors wrong cause problems for an organisation?
    Can you think of any project failures
    attributable to any of these factors?
  • Meredith Mantel, 2005

What Projects Have in Common
  • An objective or objectives, usually defined in
    terms of quality, time and cost the iron
  • Each is unique a one-off always?
  • Of a temporary nature what is temporary?
  • A degree of complexity, stemming from multiple
    tasks and participants often the key challenge
  • A degree of uncertainty, often technical
  • NB. A programme implies greater longevity or
  • Spec Exam paper Q 3

Session 3
  • The Project Life Cycle

Learning Outcomes
  • At the end of this session candidates will be
    able to
  • Consider different approaches to the project life
  • Identify the different stages of the project life
    cycle and the key characteristics, demands and
    problems most likely to be encountered at each
  • Evaluate the concept of the project life cycle as
    a management tool
  • Investigate a variety of problem-solving
    approaches and the extent to which they may be
    relevant during the project life cycle

Comparison of Characteristics of Projects and
  • Projects
  • A supported purpose/ importance
  • Specifications of performance (form, fit,
  • Known solution
  • Stages with finite due date
  • Interdependencies
  • Uniqueness
  • Resource requirements and tradeoffs
  • Stakeholder conflict
  • Meredith Mantel, 2005
  • Problems
  • Intransparency lack of clarity of situation
  • Polytely multiple goals
  • Complexity large numbers of items,
    interrelations and decisions
  • Dynamism time considerations

Three-stage Project Life Cycle
Source Meredith Mantel, 2003, Wiley
Three Stage Life Cycle
  • Why might work in project follow this guideline?
  • Any examples? construction of new housing
  • Consider time/effort impact fig 4.2 p 39
  • Alternative patterns? See p 40
  • Why is it important to know what is likely scale
    of progress? How identify in advance?
  • Group ex look at p 42 relative importance of
    project objectives agree?

Four-stage Project Life Cycle
D1 Define the project
The brief
D2 Design the project process
Process product knowledge
The proposal/PID
D3 Deliver the project
D4 Develop the process
The outcomes
Source Maylor
Maylors Four-phase Approach
Phase Key issues Key questions
Define the project Organisational project strategy goal definition What is to be done? Why is it to be done?
Design the project process Modelling planning estimating resource analysis conflict resolution business case How will it be done? Who will be involved in each part? When can it start and finish?
Deliver the project Organisation control leadership decision-making problem-solving How should the project be managed?
Develop the process Assessment of process outcomes evaluation changes for the future How can the process be continually improved?
Developing a Project Strategy
Getting started
Moving forward
Bringing it in
Handing it on
Analysis Commitment Consultation
Preparation Feasibility trials
Doing the work Making the change
Handover Support Review
Source CIPS
4 Stage Models
  • Group exercise
  • Compare and contrast Maylors 4 stage model to
    Cips version on slide also use Cips version p
    45 table 4.4
  • Are they effectively one and the same or are
    there genuine differences?

Five-stage Project Life Cycle
Stage 1
Weiss Wysocki
Stage 2
Stage 3
Corrective action
Stage 4
Stage 5
Close Out
5 Stage Models
  • See also Frigenti and Comninos model p 45/6
  • Tables 4.5 and 4.6 p 46 individual homework
    exercise critically evaluate these 2 models,
    recommending your preferred option for use in
    your organisation

McKinseys 7S Framework
Shared purpose
Style/ culture
Source McKinsey 7S framework
The 7S Project Approach
Element Description
Strategy High-level requirements of the project and means to achieve them
Structure Organisational arrangements that will be used to carry out project
Systems Methods for work to be designed, monitored and controlled
Staff Selection, recruitment, management and leadership of those working on project
Skills Managerial and technical tools available to project manager and staff
Style/culture Underlying way of working and inter-relating within the project/organisation
Stakeholders Individuals and groups who have an interest in project process or outcome
Source 7S framework adapted by Maylor
7 S Framework
  • This is a more strategic approach to Project
    management focuses upon strategic alignment and
  • Considers organisations capabilities, capacity,
    priorities and strategic objectives.
  • Does project fit or match these areas?
  • Consider impact of project on other activities
    and areas of the organisation resources,
    culture etc

Problem Solving Techniques
  • Maylor
  • Thamhain Wilemon
  • Thomas-Killman Conflict Resolution
  • Brainstorming
  • Ishikawa Fishbone Analysis
  • Cause Effect Cause Analysis
  • Decision Trees
  • Pareto Analysis
  • 5 Whys
  • Lewins Force Field Analysis

Systematic Problem-solving Model
Problem identification
Select solution
Seek alternative definitions
Select definition
Check and amend
Evaluate possible solutions
Source Adapted from Maylor
Thamhain Wilemon
  • What are main causes of conflict in projects?
  • Group exercise prioritise from following-
  • Cost, Personalities, Priorities, Procedures,
    Schedules, Staffing, Technical Problems
  • At what stage will some be more significant than
    others use 4 stage approach formation, early
    implementation, main programme, closing.

Thomas-Killman Model
  • 5 Approaches to conflict resolution
  • Avoiding what? When use?
  • Forcing what?
  • Accommodating why?
  • Compromising isnt this always the best way?
  • Collaborating how does this work?
  • Is it horses for course approach?

  • Purpose
  • To generate a large number of ideas
  • To stimulate creativity
  • Technique
  • The problem to be solved is described or stated
  • Everyone participates, either in turn or simply
    by calling out in an orderly way
  • A team member captures everything as said on
  • No judgement or criticism of others suggestions
    the group accepts outrageous, unrelated ideas
  • Ideas are developed by building on others ideas
  • When there are no more ideas, the exercise is
  • What are difficulties of using this technique in
    work environment?

Ishikawa Fishbone Analysis
  • Purpose
  • To visually represent in specific categories the
    probable causes of a problem
  • To help people visualise a problem and structure
    its analysis
  • Process
  • Identify the problem and place it in the
    Effect box.
  • Trace the process through all stages to identify
    all possible contributory causes. Use the
    Brainstorming technique to consider all the
    possible causes that may result in the Effect.
  • Group possible causes under headings (for
    example, the 4Ms Methods, Manpower, Materials,
    Machines or steps in the process being analysed).

Example of Fishbone Diagram
Insufficient space at locations
Incorrect quantity at location
Mixed or mis- placed stock
Incorrect tube pattern
Labelling on lowest rack
Error in item stock control
Poor quality staff training
Consecutive rack numbering
No stock stickers
Poor procedures
Loose components
Excessive movements
Uneven tube lengths
Loose end stops
Cause-effect-cause Analysis
  • Purpose
  • To overcome stagnation in solving problems that
    are complex and difficult to structure
  • To identify the root cause of a problem
  • Technique
  • Best results emerge when a skilled facilitator is
  • State the problem and identify the effects
  • Explore how the effects relate to one another
  • Use why and how successively to explore
    causes of the observed effects
  • Form a cause-effect diagram on which action can
    be taken see p 59/60

Decision Trees
  • Purpose
  • To identify likely outcomes and probabilities in
    a problem
  • To calculate the expected value of possible
  • Technique
  • Identify the scope of the decision to be taken
  • Identify sub-decision points
  • Identify the outcomes and probabilities possible
    from each decision point
  • Calculate the expected values for specific routes
    through the tree
  • May 07 Exam paper Q 5

Session 4
  • Contemporary Approaches to
  • Managing Projects

Learning Outcomes
  • At the end of this session candidates will be
    able to
  • Explain the 6S approach and what it seeks to
  • Identify the eight key processes and requirements
    of PRINCE2 and evaluate the effectiveness of this
    approach to project management
  • Analyse the key requirements of Critical Chain
    and explain how projects that use CCPM can
    achieve better results than other methods
  • Explain concept of theory of constraints

Six Sigma
  • A continuous improvement method Motorola, 1986
  • Since applied and popularised by others, for
    example, GE and Honeywell
  • Aim
  • To profitably improve the quality of products and
    services to the customer
  • Statistically, a defect rate 3.4 defects per
    million opportunities 99.9997 perfect
  • Is this always appropriate?
  • Requires major investment in time and resources

Six Sigma
  • Key characteristics
  • Focuses on the customer's critical-to-quality
    needs (CTQs) V.O.C.- what are they? How
  • Concentrates on measuring product quality and
    improving process engineering
  • Gives top-down, project-driven process
    improvement and cost savings
  • Is a business strategy execution system and so is
    truly cross-functional
  • Provides focused training with verifiable ROI
  • Is business results oriented
  • Has 3 key component areas Process Improvement,
    Process Design (Redesign), Process Management

Process Improvement - DMAIC
the project goals and customer deliverables
the process to determine current performance
and determine the root causes of defects
the process by eliminating defects
future process performance so that
improvements can be sustained
Process Design (Redesign) - DMADV
  • Define Id and set goals
  • Match/measure benchmark against customer
  • Analyse performance measurements outline
    enhanced processes to meet customer needs
  • Design/implement new processes in detail
  • Verify controls to ensure compliance

Process Management
  • Changes how organisation is structured and
  • 4 Steps are -
  • 1) Understanding processes and customer
  • 2) Continual measurement
  • 3) Analysis of data
  • 4) Responding to variances
  • Is 6 Sigma a project management tool?

Benefits of Six Sigma
  • Direct benefits
  • decrease in defects
  • reduced cycle time
  • lower costs to provide goods and services.
  • data-based decisions
  • sustained gains and improvements
  • better safety performance
  • fewer customer complaints
  • Indirect benefits
  • improved customer relations and loyalty
  • team-building
  • effective supply chain management
  • increased margins
  • greater market share
  • world-class standard
  • development of staff skills

Statistical Basis of Six Sigma
Prince 2
  • Originated by UK Gov in 1989 Prince 2 - 1996
  • Designed for public sector I.T. Projects
  • Now generic approach for all types of project
  • 8 stage model see Fig 6.1 page 67 and note the
    8 inter-reacting stages plus external stage of
    Corporate Management goup ex read and evaluate

PRINCE2 (Projects In Controlled Environments)
  • Key processes
  • Directing the project
  • Planning a project
  • Starting up a project
  • Initiating a project
  • Controlling a stage
  • Managing product delivery
  • Managing the stage boundaries
  • Closing a project
  • Project management
  • Project Board
  • Project assurance
  • Project support
  • Project manager
  • Documentation
  • Quality log
  • Issues log
  • Risk log
  • Bureaucratic controls
  • Emphasis on early conflict resolution

Prince 2
  • Group exercise
  • What are advantages and criticisms re this
  • See p 69 agree with OGC claims?

Critical Chain
  • Traditional project estimation techniques
  • Time and resource constraints usually violated,
    for example,
  • People have to multi-task see p 71
  • General Uncertainties
  • Departments include safety margins
  • Parkinsons Law
  • Goldratt pass on delays but not advances
  • Student syndrome (last minute)
  • So, PMs rely on padding of schedules and
    budgets to provide slack
  • Unknown nature of event interaction
  • Maylor, 2003, Meredith Mantel, 2005

Theory of Constraints Approach
  • Project cannot move faster than slowest process
    convoy effect or weakest link
  • Approach is to manage bottlenecks (constraints)
  • Activities with several predecessors and/or
  • Add time buffers at bottleneck events
  • Safety stock has equivalent in manufacturing
  • Just-in-case equivalent to JIT
  • Statistically-derived path buffers
  • Establish the critical chain for scarce resources
  • Prioritise resources in chain events

Meredith Mantel, 2005 and Goldratts Theory of
Constraints 2 see p 72/73
  • Main stages of the TOC approach
  • Identify the constraint (critical path/critical
  • Exploit the system constraint ie work it to its
    maximum capacity
  • Subordinate everything to the constraints
  • Elevate the constraint find additional
    resources for it
  • Go back and find new constraints
  • May Exam Case Study Q 1

Session 5
  • Exploring the Stages of a Project

Learning Outcomes
  • At the end of this session candidates will be
    able to
  • Identify and explain key stages in a typical
  • Explain the tasks during project initiation and
  • Explain what is involved in developing a project
    plan and budget and in evaluating project risk
  • Explain how a project might be structured and
    resources recruited, organised and allocated
  • Identify key methods of measuring and controlling
    project performance and recommend an appropriate
    approach for a project
  • Explain what is involved in the closure of a
  • Explain what is involved in the review and
    evaluation of a project and the learning stemming
    from it

Stages of a Typical Project
  • Initiation and definition
  • Planning
  • Organisation and implementation
  • Measurement, monitoring, control and improvement
  • Closure
  • Review, evaluation and learning
  • Not directly comparable with earlier examples
    of life cycle models
  • Lysons

Stage 1 Initiation and Definition
Whats involved Identifying project goals Listing project objectives Determining preliminary resources Identifying assumptions and risks
Tools techniques Financial appraisal Project initiation document (PID) Quality Function Deployment Risk analysis risk/impact matrix Suitability/feasibility/vulnerability Voice of the customer
Stage 1
  • Needs to consider-
  • Project selection sacred cow, operating
    necessity, competitive necessity, product line
    extension, comparative benefit what do these
  • Numerical selection methods unweighted factor
    (how many boxes does it tick), unweighted factor
    scoring ( what marks does it score in each box),
    weighted factor score (which boxes are more
  • See P79 - discuss

Stage 1 - continued
  • Scope/outcomes what is excluded?
  • Timing
  • Resources what types?
  • What R.O.I? Resources. Cashflow
  • Risk Impact how? Likelihood/impact
  • V.O.C. remember 6 sigma

Stage 2 Project Planning
Whats involved Identifying activities Estimating time and cost Sequencing activities why important? Identifying critical activities Refining the plan Updating the initial risk analysis Writing the project proposal
Tools and techniques Project initiation document (PID) Work breakdown structure what/who/where/when Network diagrams and CPA QFD Risk analysis risk/impact matrix SIPOC see session 7
Stage 2
  • What will be involved?
  • Range and scope
  • Sequence often critical why?
  • Why written plan? How used? Project creep
  • Timing Costs assess spending against likely
    achievements not time spent on activity why?
  • Budgets top down/bottom up?
  • Use of Critical path analysis significant
    aspect at this stage why?

Stage 3 Organisation and Implementation
Whats involved Determining personnel needs Recruiting the project manager Recruiting the project team Organising the team Assigning work packages
Tools and techniques Network diagrams and CPA Seven tools of quality control Problem-solving tools Risk analysis risk/impact matrix Team roles (Belbin)
Stage 3
  • How project team is set up! How does existing
    organisational structure impact upon this?
  • Group exercise - What attributes do we need on
    the team?
  • Where do Belbin, Tuckman, Maylor models fit in
    this aspect of project management?
  • Cross functional teamworking issues, problems

Stage 4 Measurement, Monitoring and Improvement
Whats involved Defining management style Establishing control tools Preparing status reports Reviewing the project schedule Issuing change orders
Tools techniques SIPOC Problem-solving tools Seven quality tools QFD
Stage 4
  • Consider both Organisation Project Team
  • What is appropriate management style vary
    depending on project type/nature?
  • How control project? which methods?
  • Reporting process to whom?
  • Deadlines key stages
  • How/when review/evaluate progress?
  • How communicate change?
  • Important at this stage to refer back to original
    proposal why?

Stage 5 Closure of the project
Whats involved Obtaining client acceptance Installing deliverables Documenting the project Issuing the final report
Tools and techniques SIPOC Seven quality tools
Stage 5
  • Have we met project aim?
  • V.O.C.
  • Implement project do it! Does it work?
  • Why record the process used?
  • Learning is crucial can be more important than
    project itself? Why?
  • Report to who?
  • Finality
  • Team feedback
  • Closure

Stage 6 Review, Evaluation and Learning
Whats involved Conducting a project audit Learning lessons (from successes and failures) Communicating the review, evaluation and learning
Tools and techniques SIPOC Seven quality tools (including cost of quality) Project review
Stage 6
  • Audit process did we achieve success?
  • Who audits? Internal? External?
  • Audit only at end of project?
  • Is on-going audit preferable? Why?
  • What are problems/drawbacks re auditing?
  • Learning Kolbs learning cycle
  • Spec exam paper Q 4

Session 6
  • Tools Techniques for Data Collection,
  • Analysis and Decision Making

Learning Outcomes
  • At the end of this session candidates will be
    able to
  • Utilise a range of tools and techniques to assist
    in data collection, analysis and decision-making
  • Appraise appropriateness, selection and
    implementation of the tools and techniques
    available to the project team

Project Management Tools
  • Seven tools of quality control
  • Financial appraisal
  • Voice of the customer
  • Quality function deployment
  • Project initiation document (PID)
  • Moments of truth
  • Risk analysis and assessment (risk mitigation)
  • Risk/Impact matrix
  • Suitability/feasibility/vulnerability

Evaluating PM Tools and Techniques
  • Appropriateness
  • Show that you can pick the right tool for the
  • Selection
  • Show that you are aware of the limitations, as
    well as its capabilities
  • Implementation
  • Show that you can use the tools correctly

Ishikawa 7 Tools of QC
  • Flowcharts graphical depiction of process
  • Check sheets simple log of occurrences of
    specific event/problem
  • Pareto
  • Fishbone diagram
  • Histogram bar chart shows data in grouped
    frequency distribution
  • Scatter diagram eg correlation between
    advertising spend and sales
  • Statistical Process Control charts control
    limits re acceptable performance/tolerances

Risk Assessment
  • What is the situation to be assessed?
  • What can go wrong? (What are the hazards?)
  • What is the probability that each hazard will
  • What are the consequences if it does go wrong?
  • What is the uncertainty of our risk assessment?
  • Summary probability, impact and uncertainty
  • Recommendations

Risk vs Uncertainty
  • Risk When the decision maker knows the
    probability of each and every state of nature and
    thus each and every outcome. An expected value
    of each alternative action can be determined
  • Uncertainty When a decision maker has
    information that is not complete and therefore
    cannot determine the expected value of each
  • Meredith Mantel, 2005

Financial Appraisal
  • Payback period time to recover initial
    investment through estimated cash inflows from
    the project
  • Average rate of return (ARR) average annual
    profit average investment
  • Discounted cash flow (DCF) present value method
  • Internal rate of return (IRR) rate of return
    that equates present value of cash inflows and
  • Profitability index NPV of all future expected
    cash flows initial cash investments

Quality Function Deployment
  • Final design/outcome customers needs
  • See p 109/110 for worked example

Service Quality
  • Dimensions of service quality
  • Access
  • Communication
  • Competence
  • Courtesy
  • Credibility
  • Reliability
  • Responsiveness
  • Security
  • Understanding
  • Tangibles
  • Parusuruman, Zeithaml Berry
  • Moment(s) of truth
  • An interaction with a customer
  • SAS in 1980s
  • Average passenger was in contact with five SAS
    staff per trip
  • Five million passenger journeys a year
  • 25m opportunities a year to satisfy or dissatisfy

Risk/impact Matrix
Tolerance threshold (depends on organisation)
Session 7
  • Systems and Processes in Project Management

Learning Outcomes
  • At the end of this session candidates will be
    able to
  • Demonstrate the approach of systems thinking and
    process focus using process mapping techniques
    and procedures
  • Explain end-to-end processes
  • Construct a flow chart for a process
  • Explain the interfaces and swim lanes
  • Explain the workings of critical chains software
    and its impact on projects
  • Appraise appropriateness, selection and
    implementation of the systems and process
    techniques available to the project team

SIPOC Mapping
Flow-charting Processes
  • Purpose
  • To describe the flow of a process
  • Process
  • Identify the process to be charted. It should
    have defined inputs and outputs and an owner.
  • Define the start and end of the process with a
    circle or oval.
  • Identify the major steps and represent each with
    a rectangle. Start the description of each step
    using a verb (doing word), for example, measure
    diameter, collect from stores.
  • Show decisions as a diamond with no more than two
    outcomes (for example, yes and no)
  • Represent the flow through the process with
    lines, using arrows where necessary for
    clarification, for example, up-arrow where flow
    returns to a previous step.

Work Breakdown Structure
  • Lists tasks to be completed assigns
    responsibility for each task
  • Cant eat an elephant
  • Supported by Linear responsibility chart who
    owns task and where co-operation between depts
    or individuals is required
  • Gantt Charts measures actual and planned
    progress quickly highlights overruns resource
    planner even out demand for resources

Interfaces and Swim Lanes
  • Activities organised into channels each one
    representing the responsibilities of individual,
    dept or organisation
  • Highlight processing gaps and inefficiencies
  • Focus attention on high-risk areas where work is
    transferred between groups the interface
  • See p 135

Critical Path Analysis
  • Use Profex p 114 118
  • Worked example
  • Crashing the project
  • Pert use of estimates of likely duration of
    activity, optimistic estimate and pessimistic
    estimate to calculate mean time and standard
    deviation re activity.
  • Then use of probability statistics to estimate
    likelihood of over-runs
  • Gert uses concept that some activities may fail
    need repeating use of statistics to estimate
    likely occurrence and costs of such events

Session 8
  • Techniques for Purchasing and Logistics Projects

Learning Outcomes
  • At the end of this session candidates will be
    able to
  • Identify a range of purchasing and logistics
  • Identify characteristics that differentiate these
    projects from projects in other functional areas
  • Apply and appraise the usefulness of standard
    project management tools and techniques for
    purchasing and logistics projects
  • Apply computerised project management systems for
    purchasing and logistics projects

Examples of P and S Projects
  • Group exercise what projects are currently
    running in your org purchasing function?
  • What is your involvement?
  • What are key objectives?
  • What are main difficulties and constraints?

Characteristics of P and S projects
  • Specific
  • Time Constrained
  • Limited Resources
  • Cost Reduction
  • Product performance
  • Overcoming reluctance to change by internal
  • Including int. Stakeholders in project getting
    their commitment
  • Accessing variety of data internal external
  • Securing significant added value for org.
  • Develop good external relationships with

Managing P and S Projects
  • Group exercise
  • Applying concepts and models which of those
    examined so far do you use in your organisation?
  • Applying tools and techniques which work best
    in your org?
  • Applying software which do you use? How
    effective is it? What are advantages? See next

Software Systems
  • Provide support in
  • Tracking contracts
  • Tracking responsibilities
  • Tracking activities
  • Communicating
  • Integrating
  • E-tendering
  • Evaluation criteria
  • The nature of the products
  • Ownership of the code
  • Stability of requirements
  • Software maintenance and development

Software Systems
  • Group exercise
  • What are main benefits in using software packages
    for running projects?
  • What are the disadvantages?

Session 9
  • Key Factors in Successful Project Management

Learning Outcomes
  • At the end of this session candidates will be
    able to
  • Evaluate the elements of the iron triangle and
    their interdependency
  • Contrast the iron triangle approach with the
    contingency and critical chains (crashing)
  • Analyse and identify process-based factors in the
    success and failure of purchasing and logistics
  • Explain the requirements of effective project
  • Appraise the qualities and characteristics of a
    successful project manager
  • Analyse and explain the characteristics and
    importance of teamwork in a project
  • Analyse the extent to which people management and
    leadership issues contribute to success and
    failure in projects

The Iron Triangle
  • Constituents of objectives
  • Purpose
  • End result
  • Success criteria

Iron Triangle
  • Standard idea
  • Simple concept
  • Relatively simple factors to measure
  • Relevant for all projects at least in part
  • Need to clarify objectives of each clearly at
  • Fundamental to negotiations
  • However remember targets will probably change
    during project lifetime

Contingent Approaches - no one best way it
  • Developed during the 1990s to overcome weaknesses
    in the previous one best way approach
  • Loose framework of approaches use most suitable
    for the circumstances
  • Emphasise and cater for
  • Strategic context of projects with their wide
    range of stakeholders
  • Developments in technology
  • New management methods, for example, virtual
  • Development of more capable PM software

Contingency approach 2
  • Project managers integrate
  • Resources
  • Knowledge
  • Processes
  • Means using one approach (or more) appropriate to
    the circumstances (contingencies)

Crashing Project Float
  • Crashing is the process of reducing time spans
    on critical path activities so that the project
    is completed in less time
  • Usually involves greater cost
  • Overtime working
  • Allocating additional resources
  • Subcontracting
  • Effect

Responsibilities of a Project Manager
  • Responsibility to the parent organisation
  • Responsibility to the client
  • Responsibility to the team members
  • Above all, the PM must never allow senior
    management to be surprised
  • Being prepared to give bad news
  • Meredith Mantel, 2005

Key Activities of Project Managers
  • Shaping goals and objectives project goal
    inevitably changes
  • Obtaining resources easy?
  • Building roles and structures for their team
    followers make their leader
  • Establishing good communications
  • Seeing the whole picture strategic vision
  • Moving things forwards (especially in difficult
    circumstances) - driver

Role and Skills of the Project Manager
  • Background and experience relevant to needs of
  • Leadership and strategic expertise for the big
  • Technical expertise for sound decisions always?
  • Interpersonal competence and people skills to
    champion, communicate, facilitate, motivate, and
    so on
  • Proven managerial ability for getting things done
  • Weiss Wysocki

  • He who has not walked the road, does not know
    the potholes Confuscius
  • Group exercise
  • Agree with Confuscius?
  • What other skills does project manager need?

Factors Affecting the Project Managers Role and
  • Nature of the task
  • Organisational structure
  • Organisational culture
  • Individual motivations of the team members
  • Style Cooperation ? Coercion
  • Maylor

Four Roles for Project Managers
  • Leadership the vision and style
  • Motivation managing expectations and rewards
  • Team building skills mix and cooperation
    between members
  • Communication different aspects and different

Project Teams
  • Personality theories, for example, Belbin based
  • Intelligence (high/low)
  • Dominance (high/low)
  • Extraversion/introversion
  • Stability/anxiety
  • Team activities
  • Content what the team does
  • Process how the group works
  • Task processes
  • Maintenance processes
  • Team dynamics
  • Forming
  • Storming
  • Norming
  • Performing
  • Mourning

Project Teams
  • Teams make projects succeed agree?
  • Who is in team?
  • Temporary?
  • Cross functional
  • Conditional
  • Crisis?
  • Virtual teams? core peripheral team members

Belbins Team Roles
Implementor Organising practical Inflexible
Coordinator Welcoming strong sense of objectives Ordinary intellect or creativity
Shaper Drive Prone to impatience and provocation
Plant Genius Up in the clouds
Resource investigator Knows a man who can Soon loses interest
Monitor evaluator Judgement critical reasoning Unimaginative not inspirational
Teamworker Promotes team spirit Indecisive
Completer/ Finisher Perfectionist Tends to worry about nothing
Specialist Technically specialised Uninterested outside own area
Dimensions of Project Success
  • Efficiency meeting the budget and schedule
  • Customer impact/satisfaction complex to define
    and evaluate what is their perception of
    success/failure? Does it match yours?
  • Business/direct success delivering a result for
    the business
  • Future potential again, somewhat difficult and
    nebulous to ascertain
  • Meredith Mendel, 2005
  • See also work of Westerveld Profex p180 para

Critical Success Factors in Projects
  • Clearly defined goals
  • Competent project manager
  • Top management support
  • Competent project team members
  • Sufficient resources allocated
  • Adequate communications
  • Control mechanisms
  • Feedback capabilities
  • Responsiveness to clients
  • Troubleshooting mechanisms
  • Project staff continuity
  • See p 158 slight variance
  • Pinto Slevin (1987) in
  • Slack, Chambers Johnston

Critical Success Factors
  • Westerveld
  • Leadership Team
  • Policy Strategy
  • Stakeholder management
  • Resources
  • Contracting
  • Project management itself scheduling, budgeting
  • P180 para 1.11

Ten Ways Projects may Fail
  1. Failure to appreciate the impact of a
    multi-project environment on single project
  2. Irrational promises made due to a failure to take
    into account the variable nature of task
  3. Irrational promises made due to a failure to take
    into account the statistical nature of project
  4. Insufficient identification of dependencies
  5. Focus on, and active management of, only a
    portion of what should be the full project
  • Reliance on due-date and wasting of any safety
    included in the project
  • Wasting of resources through sub-optimal
  • Wasting of the best resources through over-use,
    multi-tasking and burn-out
  • Delivering original scope when conditions/needs
    change OR accepting changes to scope without
    sufficient impact analysis
  • Multi-tasking
  • Group ex what others can you add?

Project Failure
  • Consider Greer p 159 table 11.4
  • Do you agree with these?
  • Are they more logical than those selected on
    previous page?

Session 10
  • Project Management and Strategic Practice

Learning Outcomes
  • At the end of this session candidates will be
    able to
  • Critically evaluate the key characteristics of
    the various forms of organisation structure and
    culture and their consequences for project
  • Explain the key factors for consideration in
    choosing the best organisational structure for a
  • Critically evaluate the use and value to
    organisations of project management maturity
  • Evaluate the relationship between the business
    excellence model and the project management
    excellence model
  • Understand and explain what is meant by knowledge
    management and organisational learning
  • Demonstrate the strategic benefits and advantages
    gained through knowledge management and
    organisational learning
  • Appraise the impact of a organisational learning
    on the management of projects in purchasing and

The Functional Structure
The project
  • Advantages
  • The owning division should have the relevant
  • Specialists can share their knowledge and
    overtime expertise accumulates
  • It provides a clear sense of ownership and
    ensures continuity
  • Disadvantages
  • It may engender a silo mentality. Other
    specialists may not be consulted
  • Routine work may take precedence over the project
  • Motivation may suffer if the project is perceived
    as a professional diversion

The Project Structure
Project A
Project B
Project C
  • Advantages
  • Manager has full authority over the project with
    senior management backing
  • Grouping necessary resources in the project
    ensures rapid decision making
  • Relevant expertise is drawn from other parts of
    the organisation
  • The project team has a strong sense of identity
    and common purpose
  • Disadvantages
  • It is suitable only for larger projects as it is
    expensive to resource
  • Isolationism can develop leading to an us and
    them culture
  • Team members may lack technical expertise or
    understanding of user needs

The Matrix Structure
The project
  • Advantages
  • An individual project manager takes
    responsibility, usually with strong senior
    management support
  • Relevant resources are allocated as required,
    giving flexibility as well as expertise
  • Disadvantages
  • Decision-making power may still reside outside
    the project team
  • Members are likely to be working only part-time
    on the project and have at least two managers,
    which may cause anxiety
  • There may be a high level of competition and
    in-fighting for resources

What is Organisational Culture?
  • The deeper level of basic assumptions and
    beliefs that are shared by members of an
    organisation, that operate unconsciously and
    define in a basic taken-for-granted fashion an
    organisations view of itself and its
  • E. Schein (quoted in Johnson Scholes)

A Typology of Culture
Type of culture Representation
Power A web spider power from the centre
Role A Greek temple columns highly defined structure large, hierarchical orgs
Task A net or matrix suit project/problem solving teams power from knowledge
People A cluster members superior to the org.
Source Handy, Understanding Organisations
Culture and Management Approaches
Characteristic of culture Impact on management style
Anglo-Saxon cultures Delegation a preferred managerial style
Highly centralised authority It is PMs responsibility to seek out information
International culture PM cannot count on being voluntarily informed of problems by subordinates
Highly structured social classes Participative management is difficult to practise there is an assumption that the more educated, higher-class managers authority will be denigrated by using a participative style
Highly structured social system The less direct managerial communication tends to be
Adapted from Meredith Mantel, 2005
  • Group exercise
  • Why is it important for a project manager to be
    aware of cultural issues within an organisation?

Organisational Readiness
  • The organisation places a high value on serving
  • The commitment of senior managers is long-lasting
  • Key staff departments are positive about the
    prospect of change
  • The organisation has the human resources needed
  • The organisation had the financial resources
  • The organisation as a whole recognises the need
    for fundamental change
  • The organisation has none of the complacency and
    arrogance that often follows a sustained period
    of success
  • The organisation is free of the scepticism,
    mistrust and ambivalence that often follows a
    period of change
  • The organisations experience with TQM has
    created an environment that is receptive to
  • Hammer Stanton

Project Management Maturity Matrix
Flat-liners Little or no progress in project performance Mistakes repeated performance stays flat
Improvers Some improvement Performance improves slightly over time
Wannabes Follow every initiative going in order to catch the leaders
World-class performers Set ever-increasing standards of performance
Project Excellence
  • Project excellence comprises cross-functional
    processes, project decision making, and team
    organisation that enable firms to bring
    high-quality products to market rapidly. Project
    excellence builds on functional excellence (that
    is, when a function has the necessary resources,
    along with standards, procedures, and tools, to
    be effective and efficient). Four major elements
    are required to deliver projects effectively.
    These elements include the people and processes
    involved in development project governance, a
    defined development process, project core teams,
    and the project decision process are the four

(No Transcript)
Project Excellence Model
Source Westerveld
EFQM Business Excellence Model
Business Results (15)
People Management ( 9 )
People Satisfaction ( 9 )
Processes (14)
Leadership (10)
Customer Satisfaction ( 20 )
Policy Strategy ( 8 )
Resources ( 9 )
Impact on Society ( 6 )
Knowledge Creation and Management
Externalisation Articulating tacit knowledge
Socialisation Sharing experiences
Tacit knowledge
Combination Building a knowledge system
Internalisation Learning by doing
Explicit knowledge
Tacit knowledge
Explicit knowledge
A Learning Organisation is
  • Capable of benefiting from the variety of
    knowledge, experience and skills of individuals
    through a culture which encourages mutual
    questioning and challenge around a shared purpose
    or vision.
  • Johnson Scholes

Characteristics of a Learning Organisation
  • Existence of conflicting ideas and views
  • Tolerance of failure
  • Acceptance of ambiguity and uncertainty with
    their attendant risks
  • Surfacing of assumptions and explicit debate
    widely within the organisation
  • Tolerance of a diversity of views
  • Tolerance of organisational slack

Using Learning and Discovery
  • Start with a loose project approach built on
    many assumptions which are known
  • Accept the risks associated with the
  • Track and review assumptions on a regular basis
  • Modify the assumptions and activities in the
    light of experience
  • Gradually learn what works and what doesnt