Intoduction to Project management

Intoduction to Project management - Project Management...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Project Management Introduction CEM 601 Dr. Hesham A. Aziz Dr. Hesham A. Aziz 1 The business Organization The Three Basic Functions Organization Finance -Securing Financial Resources -Budgeting -Analyzing Investment -Providing Funds Operations - Producing Goods - Providing Services Dr. Hesham A. Aziz Marketing -Consumer Wants & Needs -Selling & Promoting 2 Business Operations Overlap Operations Marketing Finance •Significant interfacing and collaboration among them all. •Exchange of information and co­operative decision making. Dr. Hesham A. Aziz 3 Operations Interfaces Industrial Engineering Maintenance Distribution Purchasing Operations Legal Accounting Public Relations Personnel MIS Dr. Hesham A. Aziz 4 Decision Area Strategic Decisions Affects Product and service design Costs, quality liability and environmental Capacity Cost structure, flexibility Process selection and layout Costs, flexibility, skill level, capacity Work design Quality of work life, employee safety, productivity Location Costs, visibility Quality Ability to meet or exceed customer expectations Inventory Costs, shortages Maintenance Costs, equipment reliability, productivity Scheduling Flexibility, efficiency Supply chains Costs, quality, agility, shortages, vendor relations Projects Costs, new products, services, or operating systems Dr. Hesham A. Aziz 5 Why Some Organizations Fail • • • • • Too much emphasis on short-term financial performance Failing to take advantage of strengths and opportunities Neglecting operations strategy Failing to recognize competitive threats Too much emphasis in product and service design and not Too enough on improvement enough • Neglecting investments in capital and human resources • Failing to establish good internal communications • Failing to consider customer wants and needs Dr. Hesham A. Aziz 6 Competitiveness, Strategy, and Productivity Mission Planning and Decision Making Goals Organizational Strategies Functional Goals Finance Strategies Tactics Operating procedures Marketing Strategies Tactics Operating procedures Dr. Hesham A. Aziz Operations Strategies Tactics Operating procedures 7 Mission/Strategy/Tactics Mission Strategy Tactics How does mission, strategies and tactics relate to decision making and distinctive competencies? Dr. Hesham A. Aziz 8 • Mission Strategy – The reason for existence for an organization • Mission Statement – States the purpose of an organization • Goals – Provide detail and scope of mission • Strategies – Plans for achieving organizational goals • Tactics – The methods and actions taken to accomplish strategies Dr. Hesham A. Aziz 9 Japanese View in Planning & quality management: In the 1970s, the Japanese used European and US goods as models. In By making effective use of quality management they were able to produce the following :- 1. Same product 2. + Same quality Invest in quality 5. 6. Better quality Much better quality Much better quality Slightly less price Customer Satisfaction 3. Invest more in quality 4. + Sales increased + Less price + Same price + Same price Dr. Hesham A. Aziz Sales increased Sales increased Sales increased 10 Missions vs. Strategic Visions • A mission statement focuses on current business activities – “who we are and what we do” – – – Current product and service offerings Customer needs being served Technological and business capabilities • A strategic vision concerns a firm’s future business path – “where we are going” – Markets to be pursued – Future technology­ product­customer focus – Kind of company that management is trying to create Dr. Hesham A. Aziz 11 The Hows That Define a Firm's Strategy • How to grow the business • How to please customers • How to out-compete rivals • How to respond to changing market conditions • How to manage each functional piece of the business and develop needed organizational capabilities • How to achieve strategic and financial objectives Dr. Hesham A. Aziz Strategy is HOW to . . . 12 Types of Objectives Required Strategic Objectives Financial Objectives Outcomes focused on improving financial performance Outcomes focused on improving long­term, competitive business position $ Dr. Hesham A. Aziz 13 Establishing Performance Measures Key Performance Indicator “ KPI” • Performance measures should be in line with the Performance Performance evaluation system evaluation • Targets should be selected and decided on according to the Targets guidelines of the evaluation methodology. guidelines Activities Task 1. Resource Due date 1. Performance indicator Target 2. 3. 2. 4. 1. 2. 3. 4. Dr. Hesham A. Aziz 14 Strategy Formulation • Environmental scanning “ The considering of events and trends that present threats or opportunities for a company” • SWOT “Strength, weakness, opportunities threats “ Dr. Hesham A. Aziz 15 Company Strengths, Competencies, and Competitive Capabilities • A company must have or be able to acquire the resources, competencies, and competitive capabilities needed to execute the chosen strategy • Resource deficiencies, gaps in skills, and weaknesses in competitive position make pursuit of certain strategies risky or altogether unwise Dr. Hesham A. Aziz 16 Company Opportunities and Threats • For strategy to be successful, it has to – Be well matched to capturing a company’s best opportunities – And help counteract threats to the company’s well-being Dr. Hesham A. Aziz 17 Environmental Environmental Scanning Scanning Dr. Hesham A. Aziz 18 Key External Factors • • • • • • Economic conditions Political conditions Legal environment Technology Competition Markets Key Internal Factors • • • • • • • Human Resources Facilities and equipment Financial resources Customers Products and services Technology Suppliers Dr. Hesham A. Aziz 19 Internal Capabilities Marketing Capability Non-Marketing Capability Financial position, management& Leadership, HRM, R&D, operations Production capabilities and supply Interventional Coordination & responsiveness And competitive position. Criteria Review Implications Management Marketing strategies & performance •Marketing organization •Market intelligence •Marketing planning & control process Marketing strategies Marketing performance _____________ ____________ __________ Strengths Rating Weaknesses Rating ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­ ­­­­­­­ Note. Rating is based on 5-point scale degree of significance and for likelihood of occurrence: extremely significant (5) quite to highly significant (4) significant (3) reasonably significant (2) and 20 not very significant (1) Dr. Hesham A. Aziz External Environment Remote environment: 1. Economic forces 2. Sociocultural forces 3. Political-legal forces 4. Technological forces 5. Natural environment forces Criteria Scenario / Description Implications Near environment: 1. Market review 2. Competitive review 3. Distribution channels and buyers (intermediary customers) 4. End user customers 5. Supply : _____________ : ____________ : __________ Opportunities Rating Threats Rating ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ ­ ­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­­ ­­­­ ­­­­­­­­­­­­­­­­­­­ ­­­­­­­­­­­­­­­­­­­ ­­­­­­ Note : Rating is based on a 5-point scale degree of significance and for likelihood of occurrence: Extremely significant’ (5), quite to highly significant, (4) significant, (3) reasonably significant, (2) and not very significant (1)The probability of occurrence ranges form high probability of occurrence, (5) to not likely to occur in This time horizon (1). For example a rating of 5-3 represents an extremely 21 significant opportunity Or threat that has a reasonable likelihood of occurrence Dr. Hesham A. Aziz Goal & Objective Setting Dr. Hesham A. Aziz 22 * Small number * Start a product * Then shut down the system * To improve condition * To Improve organizational competition * Improve efficiency * Change configuration * Increasing quantity & continuity Batch Production When to start a Project? MOVE * Large number * Repetitive * Continuity Mass Production Project - Only one time - Non repetitive - Not rely on previously statistical curve Dr. Hesham A. Aziz 23 What is a Project? • Project Defined – A complex, non­routine, one­time effort limited by time, budget, resources, and performance specifications designed to meet customer needs. • Major Characteristics of a Project – Has an established objective. – Has a defined life span with a beginning and an end. – Requires across­the­organizational participation. – Involves doing something never been done before. – Has specific time, cost, and performance requirements. Dr. Hesham A. Aziz 24 The Challenge of Project Management • The Project Manager – Manages temporary, non-repetitive activities and frequently acts independently of the formal organization. • Marshals resources for the project. • Is linked directly to the customer interface. • Provides direction, coordination, and integration to the project team. • Is responsible for performance and success of the project. – Must induce the right people at the right time to address the right issues and make the right decisions. Dr. Hesham A. Aziz 25 Comparison of Routine Work with Projects Routine, Repetitive Work Projects Taking class notes Writing a term paper Daily entering sales receipts into the accounting ledger Setting up a sales kiosk for a professional accounting meeting Responding to a supply-chain request Developing a supply-chain information system Practicing scales on the piano Writing a new piano piece Routine manufacture of an Apple iPod Designing an iPod that is approximately 2 X 4 inches, interfaces with PC, and stores 10,000 songs Attaching tags on a manufactured product Wire-tag projects for GE and Wal-Mart Dr. Hesham A. Aziz TABLE 1.1 26 Integrated Management of Projects Dr. Hesham A. Aziz 27 The Technical and Sociocultural Dimensions of the Project Management Process Dr. Hesham A. Aziz 28 Sources of data Dr. Hesham A. Aziz 29 Definition of Project Management # The process of planning and executing a piece of work from inception to completion to achieve safe achievement of objectives on time, within cost limits and to the specified standards of quality #The organizing, planning, directing, coordinating and controlling of all project resources from inception to completion to achieve project objectives on time, within cost, and to required quality standards. # Most authors agree that project management is about achieving time, cost and quality targets, within the context of overall strategic and tactical client requirements, by using project resources. Dr. Hesham A. Aziz 30 ● Project management offers a structured approach to managing projects . ● The project manager is the single point of responsibility, it is the project manager’s job to set up a management structure which not only meets the needs of the project, but the needs of the organization, the needs of the stakeholders and the needs of the individuals working on the project as well . Dr. Hesham A. Aziz 31 Project Planning Goals Time cost and quality Cost Time Quality Dr. Hesham A. Aziz 32 OBS Needs Project’s Needs Stakeholder’s Needs Individual’s needs ( OBS = Organization Breakdown Structure ) Dr. Hesham A. Aziz 33 Quality Cost Cheapest Best Economical Adequate Reasonable Planning Goals Goals are essentially incompatible Fastest Time The art is to maintain a proper balance between Time, Cost and Quality. Quality is not sacrificed for either time or cost. Dr. Hesham A. Aziz 34 Time cost and quality T C Time Cost Acceptable range Acceptable range Q (min) Quality Acceptable range Dr. Hesham A. Aziz 35 Time cost and quality Q (min) Too slow and too expensive T C Time Cost Acceptable range Acceptable range Unacceptable quality Quality Too slow Too expensive Target Dr. Hesham A. Aziz 36 Project Life Cycle Dr. Hesham A. Aziz 37 Project Life Cycle. Dr. Hesham A. Aziz 38 Dr. Hesham A. Aziz 39 IDENTIGYING THE KEY FEATURES OF PROJECTS FEATURES POINTS TO NOTE DEFINED START AND END •Some projects are repeated often, but they are not processes because they have clear start and end points. •Routine work can be distinguished from projects because it is recurring, and there is no clear end to the process. All projects have start-up and closedown stages. ORGANIZED PLAN A planned, methodical approach is used to meet project objectives. SEPARATE RESOUCES Projects are allocated time, people, and money on their own merits. •Good planning ensures a project is completed on time and within budget – having delivered the expected results. • An effective plan provides a template that guides the project an details the work that needs to be done. •Some projects operate outside the normal routine of business life, others within it- but they all require separate resources. •Working within agreed resources is vital to success. 40 Dr. Hesham A. Aziz IDENTIGYING THE KEY FEATURES OF PROJECTS •Project teams take responsibility for and TEAMWORK Projects usually require a team of people to get the job done. ESTABLISHED GOALS Projects bring results in terms of quality and/or performance. gain satisfaction from their own objectives, while contributing to the success of the organization as a whole. •Projects offer new challenges and experiences for staff. •A project often results in a new way of working, or creates something that did not previously exist. •Objectives must be identified for all those involved in the project. Dr. Hesham A. Aziz 41 An Overview of Project Management . Dr. Hesham A. Aziz 42 The top­down strategic approach to project planning Dr. Hesham A. Aziz 43 Dr. Hesham A. Aziz 44 Planning and Scheduling Gantt Chart MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Locate new facilities Interview staff Hire and train staff Select and order furniture Remodel and install phones Move in/startup Dr. Hesham A. Aziz 45 Project Management 6 weeks 8 weeks te ca ies Lo ilit fac 2 4 r rde ure O it urn f Rem ode l 11 weeks re nitu Fur p u set Deterministic time estimates 1 In te 4 weeks rv ie 3 weeks 5 in ra t nd a ire H 9 weeks w Move in 1 week 6 3 Dr. Hesham A. Aziz 46 Typical functional arrangement Dr. Hesham A. Aziz 47 Typical project team operating across functional boundaries Dr. Hesham A. Aziz 48 Typical external project management arrangement Dr. Hesham A. Aziz 49 A Load Chart Dr. Hesham A. Aziz 50 Dr. Hesham A. Aziz 51 Cost types Dr. Hesham A. Aziz 52 Dr. Hesham A. Aziz 53 Earned value performance measurement chart. Dr. Hesham A. Aziz 54 Dr. Hesham A. Aziz 55 Network of Stakeholders Dr. Hesham A. Aziz 56 Dr. Hesham A. Aziz 57 IDENTIFYING KEY PLAYERS AND THEIR ROLES •Ensures that the project is of real relevance SPONSOR Initiates a project, adds to the organization. team’s authority, and is the •Helps in setting objectives and constraints. •Acts as an inspirational figurehead. most senior team member. •May provide resources. to the •Produces a detailed plan of action. Responsible for achieving the •Motivates and develops project team. project’s overall objectives and •Communicates project information to stakeholders and other interested parties. leading the project team. •Monitors progress to keep project on track. Project Manager Stakeholder Any other party who is interested in, or affected by, the outcome of the project. •Contributes to various stages of the planning process by providing feedback. •Might only be involved from time to time. •May not be a stakeholder for the entire project if his or her contribution is complete. Dr. Hesham A. Aziz 58 IDENTIFYING KEY PLAYERS AND THEIR ROLES •Makes a major contribution in examining Key Team member feasibility and Assists the project manager and planning a project. provides the breadth of •Lends technical expertise when needed. •Is directly responsible for project being completed on time knowledge needed. and within budget. •Takes responsibility for completing activities as set out in Full or part-time person who the project plan. has actions to carry out in the •Fulfils a specialized role if involved as a consultant, or as an individual who is only needed for part of the project. project plan. Team member •Strongly influences the objectives of the project and how its Internal or external person who success is measured. •Dictates how and when some activities are carried out. benefits from changes brought •Provides direction for the project manager. about by the project. Customer •Can become very involved with, and supportive of, the Provider of materials, products, project. or services needed to carry out •Delivers supplies on time and provides services or goods at a fixed cost, agreed with the project manager at the outset. the project. Supplier Dr. Hesham A. Aziz 59 The PMBOK describes project management under the following nine knowledge areas : ● Project Integration: integrates the three main project management processes of planning, execution and control – where inputs from several Knowledge areas are brought together . ● Project Scope Management : It is primarily concerned with defining and controlling what is or is not included in the project , It consists of authorisation, scope planning, scope definition, scope change management and scope verification . ● Project Time Management : It consists of activity definition, activity sequencing, duration estimating, establishing the calendar, schedule development and time control . ● Project Cost Management : the project is completed within the approved budget. It consists of resource planning, cost estimating, cost budgeting, cash-flow and cost control . ● Project Quality Management : includes the process required to ensure that the project will satisfy the needs for which it was undertaken. It consists of determining the required condition, quality planning, quality assurance and quality control . ● Project Human Resource Management : includes the process required to make the most effective use of the people involved with the project. It consists of organisation planning, staff acquisition and team development . ● Project Communication Management : includes the process required to ensure proper collection and dissemination of project information . It consists of communication planning, information distribution, project meetings, progress reporting and administrative closure . ● Project Risk Management : includes the process concerned with identifying, analyzing, and responding to project risk. It consists of risk identification, risk quantification and impact, response development and risk control . ● Project Procurement Management : include the process required to acquire goods and services from outside the performing project team or organisation . It consists of procurement planning, solicitation planning, solicitation, source selection, contract administration and contract closeout . Economic Feature Strategic Importance Market Size Small markets don’t tend to attract new firms; large markets attract firms looking to acquire rivals with established positions in attractive industries Market growth rate Fast growth breeds new entry; slow growth spawns increased rivalry & shake-out of weak rivals Capacity surpluses/ shortages Surpluses push prices & profit margins down; shortages pull them up Industry profitability High-profit industries attract new entrants; depressed conditions lead to exit Entry/exit barriers High barriers protect positions and profits of existing firms; low barriers make existing firms vulnerable to entry 63 Dr. Hesham A. Aziz Economic Feature Strategic Importance Product is bigticket item for buyers More buyers will shop for lowest price Standard products Buyers have more power because it’s easier to switch from seller to seller Rapid technological change Vertical integration Raises risk; investments in technology facilities/equipment may become obsolete before they wear out Big requirements make investment decisions critical; timing becomes important; creates a barrier to entry and exit Raises capital requirements; often creates competitive & cost differences among fully vs. partially vs. nonintegrated firms Economies of scale Increases volume & market share needed to be cost competitive Rapid product innovation Shortens product life cycle; increases risk because of 64 Dr. Hesham A. Aziz opportunities for leapfrogging Capital requirements Thank You Dr. Hesham A. Aziz 65 ...
View Full Document

This note was uploaded on 03/17/2012 for the course CEM 661 taught by Professor Dr.heshama.aziz during the Spring '10 term at American University in Cairo.

Ask a homework question - tutors are online