Project Management. Session 1 What is a Project? Andre Samuel

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1 Project Management Session 1 What is a Project? Andre Samuel

2 Project Management Resources available at:

3 This Session Learning Outcomes of Module Assessment Mechanism Why Managers need Project Management (PM)Skills? What is a Project? Constraints of a Project Why Projects Fail? Local Mega Projects Success or Failure!

4 Learning Outcomes 1) Critically evaluate the nature of projects and the inter relationship between time, cost and quality constraints 2) Critically evaluate the role of the project manager and the human resource elements of project management 3) Operate leading computer software tools to support project management activities 4) Evaluate and apply project support techniques including project optimization, control and trouble shooting 5) Apply the fundamental principles of planning budgeting, resourcing and risk management to a project based environment

5 Why do managers need PM Skills Traditionally most managers have not been involved in PM Today project based organizations are becoming common i.e. organization are shifting away from conventional management hierarchy Projects provide the means by which an organizations strategic objectives can be achieved

6 Link between PM and Strategy Projects are essential to the growth and survival of organizations. Projects create value in the form of improved business processes, in the development of new products and services, and make it easier for companies to respond to changes in the environment, competition, and the marketplace. Theprojectmanager srolethereforebecomes increasingly strategic

7 Therefore, managers need to have PM skill in their armoury as the importance of the roles and functions of the project manager have increased

8 Kingdom Tower Saudi Arabia

9 Pt Fortin Highway

10 T&T Infrastructure Development Projects 2017 Pt Fortin Highwayreinitiated Moruga main road and Moruga Port Toco Port Valencia to Toco road Wallerfield to Manzanilla Highway TT WI FI initiative Rehabilitation of the existing ANR Robinson International Airport Sandals Resort Tobago Large hotel in Trinidad

11 Typical projects in an organization Developing Information Systems Develop new products Mergers and Acquisitions Change in Structure Rebranding New locations Constructing a new Building or facility

12 A project is whatever I call a project

13 What is a Project? The difficulty of defining a project arises from the enormous variation in size that is possible From very small to the gigantic But whatever the scale, the same principles of Project Management apply It is therefore possible to discern Characteristics that are true for most projects: Temporary Unique Progressive elaboration

14 1. Temporary Projects are not ongoing operations This means that a project is temporary That is, it has a definite beginning and a definite end The end is reached when the project s objectives are achieved (successful) or when it becomes clear that they cannot be met or the project is no longer needed (terminated) Temporary does not mean short in duration e.g. Stonehedge in England estimated 3500 years to complete

15 2. Unique Projects involve doing something novel They are therefore produce an outcome which is unique Never been done before one of a kind, first We look at the outcome or product of the project for uniqueness Uniqueness can be achieved even if the category to which it belongs is large e.g. New McDonald Location Is a Healthy and Safety Inspection a Project?

16 3. Progressive Elaboration This integrates the concepts of temporary and unique Because the product is unique, the product must be progressively elaborated That is proceeding in steps, continuing steadily by increments The unique characteristics must be thoroughly and carefully worked out Work required is gradually defined and increasing detail added over time

17 Formal Definition Projects are unique, transient endeavours undertaken to achieve a desired outcome APM (2004) A project is a temporary endeavour undertaken to create a unique product or service PMI (2000)

18 A project is a unique set of coordinated activities, with a define starting and finishing point, undertaken by individual or organization to meet specific objectives within defined schedule, cost and performance parameters. BS (2000, pg 2)

19 Project Constraints Iron Triangle

20 Discussion Point You can have it cheap, you can have it right or you can have it quick. But you can only have two out of the three

21 Brazil Olympics 2016 Jeopardy!!! Cost Overruns Delays in projects BUT The Olympics start date was Aug "It means you just have to throw more money at the thing to get it finished... The only variable you have is to spend more money, Flyvbjerg (May 2015) Oxford University

22 So what are the KPI of Project Success? Macro level success Micro level success Toor and Ogunlana (2010) Beyond the iron triangle

23 See Handout 1 Why do Projects Fail?

24 Why Projects Fail? Ready, fire, aim shoot first whatever you hit is the target It s all in my head We don t have time to do this stuff I ve got certification, therefore I am a Project Mgr We have a procedure for that We need not use that methodology We ve done this before No Planning

25 UFF Report Some design build projects International Waterfront Project and the Prime Minister's residence have been completed on time and budget; Projects carried out on a design tender basis the Government Campus Project and Belmont Police Station being two comparable projects have been the subject of major delay and cost overrun. Client bearing the consequences of delay and additional cost, with none of the parties being held to account. Uff report

26 Piarco International Airport the airport authority issued a $200m bond to fund the construction. Scope: Entire project cost about $1.6Bn Started in 1998 Eleven month project commissioned in July 2001

Water Front Project Commencement: August 2005 Scope: Two 26 Storey Office buildings, A 22 storey 428 room Hyatt Regency, 7 storey carpark 1200 vehicles Scheduled Open:

27 Water Front Project Commencement: August 2005 Scope: Two 26 Storey Office buildings, A 22 storey 428 room Hyatt Regency, 7 storey carpark 1200 vehicles Scheduled Open: 2008 Actual Opening: April 2009 Estimated Cost: TT$ 1.6 Billion Actual Cost: TT$ 3.4 Billion Funding: Loan, First Caribbean fixed interest rate of 6.09 per cent for 15.9 years

28 Brian Lara Stadium Conceptualization Date: 2003 Initial Estimated Cost: TT$ 850 Million, TT$ 250 M for Cricket Stadium Scope: Cricket stadium, the aquatic centre, cycling velodrome, football fields, gym, hotel accommodation Estimated Completion Date: Cricket World Cup 2007 Main Project Issue: TT $125 million in advance payments to the project's main contractor despite the fact that the project was behind schedule Estimated Cost at Completion: TT $ 1.2 Billion Estimated Date of Completion: project scaled down to Cricket Stadium PM Dr. Rowley Commits to completing Project Expected completion Nov $ 90 Million repair cost

29 NAPA Completion: Nov 2009 Scope: 1500 seat hall, 2 practice halls, hotel, teaching rooms Estimated Cost: TT$ 500 Million Funding: 2% concessional loan from Republic of China for 20years Project Issue: Structural Defects TT$ 80 Million Contractor: Fixed Price, Design Build contract to Shanghai, but TT$ 100Million subcontracted to local contractors

30 Role of Project Manager To achieve the project's objectives within the time, cost and quality/performance constraints imposed by the sponsor Make timely decisions to assure the project's success and satisfy all stakeholders Plan, monitor and control the project through to completion Select, build and motivate the project team Informing the sponsor and senior management of progress and problems Recommend termination of the project (if necessary) Serve as the principal point of contact between the sponsor, management and contributors Select and manage subcontractors.

31 Assessment 3000 word report Assignment based Fictitious Case Study Part A Critical evaluation of Project Management Office Evaluate the relationships between project planning and project controlling. What steps can be taken to improve the financial performance of projects at OmniBuild What are the key weaknesses the current HR focus? What are the key measures and tactics to implement a new project planning approach?

32 Part B Project Planning and Progress Management Build Baseline Gantt Chart 4 months Modify to shorten to 2.5 months Part C Project Budget Creation and Management Create budget with a constraint of 850,000 Modify budget with new constraint of 650,000

33 Summary Projects have a number of key characteristics that distinguish them from ongoing operations. Projects have: A finite and defined life span Defined and measurable product outputs Defined and measurable activities and resources Defined roles and responsibilities.

34 Useful Websites Project Management Institituehttp:// The Association for Project Management (UK) Prince International Project Management Association Forum

Economic Review & Forecast

Thursday 10 th May 2018 6:30 pm Trinidad and Tobago Prepared by: First Citizens Research and Analytics Economic Review & Forecast According to the Minister of Finance, early estimates are indicative of