Lecture 1 Why Project Management? By : Prof. Lili Saghafi. Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall 1

Transcription

1 Lecture 1 Why Project Management? By : Prof. Lili Saghafi 1

2 Learning Objectives After completing this chapter, students will be able to: Understand why project management is becoming such a powerful and popular practice in business. Recognize the basic properties of projects, including their definition. Understand why effective project management is such a challenge. Differentiate between project management practices and more traditional, process-oriented business functions. Recognize the key motivators that are pushing companies to adopt project management practices

3 Learning Objectives After completing this chapter, students will be able to: Understand and explain the project life cycle, its stages, and the activities that typically occur at each stage in the project. Understand the concept of project success, including various definitions of success, as well as the alternative models of success. Understand the purpose of project management maturity models and the process of benchmarking in organizations. Identify the relevant maturity stages that organizations go through to become proficient in their use of project management techniques

4 Introduction Examples of projects Split the atom Tunnel under the English Channel Introduce Windows 7 Plan next Olympic games in London Projects, rather than repetitive tasks, are now the basis for most value-added in business -Tom Peters Thomas J. "Tom" Peters is an American writer on business management practices, best known for In Search of Excellence

5 Process vs. Project Work Process Ongoing, day-to-day activities to produce goods and services Use existing systems, properties, and capabilities Typically repetitive Project Take place outside the normal, process-oriented world Unique and separate from routine, process-driven work Continually evolving A project is a temporary endeavor undertaken to create a unique product or service. PMBoK

6 Sales and Distribution PROCESS 6

7 M TD P A Y M E N TS S TA TE M E N T P A TIE N T P A TIE N T P A Y M E N T IN S U R A N C E C O M P A N Y IN S U R A N C E P A Y M E N T 2 P R O C E S S P A Y M E N T M TD P A Y M E N TS D 4 Y TD P A Y M E N TS M TD P A Y M E N TS A P P O IN T M E N T R E Q U E S T P A Y M E N T U P D A TE P A Y M E N T D A TA D 6 A P P O IN T M E N T D A TA A P P O IN T M E N T D A TA A P P O IN T M E N T D A TA D 1 S E R V IC E D A TA 3 P R O D U C E R E P O R TS S E R V IC E D A TA D 7 S E R V IC E C H A R G E A M E R IC A N M E D IC A L A S S O C IA TIO N S E R V IC E D A TA M TD C H A R G E S S E R V IC E C H A R G E C LA IM C P T C O D E S IN S U R A N C E C O M P A N Y R E P O R T C LA IM S TA TU S S U M M A R Y A P P O IN T M E N T LIS T FE E A N D S E R V IC E D A TA 1 P R O C E S S A P P O IN T M E N T IN S U R A N C E C LA IM D A TA H O U S E H O LD D A TA C H A R G E S IN S U R A N C E C A R R IE R D A TA P A TIE N T D A TA D 22 P R O V ID E R D A TA P R O V ID E R C H A R G E S D 2 D 21 D 3 P E N D IN G IN S U R A N C E C LA IM S P A TIE N TS D 5 P R O V ID E R S IN S U R A N C E C A R R IE R S H O U S E H O LD S H O U S E H O LD U P D A TE P R O V ID E R U P D A TE IN S U R A N C E U P D A TE P A TIE N T U P D A TE M A ILIN G LA B E LS C A LL LIS T P R O V ID E R R E P O R T O F FIC E S TA F F P R O V ID E R P A TIE N T P R O V ID E R C H A N G E IN S U R A N C E C H A N G E H O U S E H O LD C H A N G E P A TIE N T C H A N G E R E M IN D E R P O S TC A R D 7 4 M A IN TA IN R E C O R D S

8 PROJECTS EXAMPLES Customizing your YouTube channel to attract more customers for your products and visitors to your site Here's the quick and easy way to customize your YouTube channel to build brand awareness, while also giving visitors a way and a reason to quickly reach your web site and find your products. 8

9 PROJECTS EXAMPLES Offering a much wanted service within your own niche Here's an example of how my wife created a much needed service for customers within her own niche market. They asked for it, and she gave them what they wanted. 9

10 Additional Definitions A project is a unique venture with a beginning and an end,conducted by people to meet established goals within parameters of cost, schedule, and quality. Buchanan & Boddy92,Buchanan, D. Author: Boddy, D. PUBLISHER: Prentice Hall Projects are goal-oriented, involve the coordinated undertaking of interrelated activities, are of finite duration, and are all, to a degree unique. Frame

11 Project Definitions Summarized A project can be considered any series of activities and tasks that have: Specific objectivesto be completed within certain specifications, Defined startand enddates, Funding limits, Human and nonhuman resources, and Multifunctional focus

12 Elements of Projects Complex, one-time processes Limited by budget, schedule, and resources Developed to resolve a clear goalor set of goals Customer-focused

13 General Project Characteristics Ad-hocendeavors with a clear life cycle Building blocks in the design and execution of organizational strategies Responsible for the newestand most improved products, services, and organizational processes Provide a philosophy and strategy for the management of change

14 General Project Characteristics involve crossing functional and organization boundaries Traditional management functionsof planning, organizing, motivating, directing, and controlling apply Principal outcomes are the satisfaction of customer requirements within technical, cost, and schedule objectives Terminatedupon successful completion of performance objectives 01-14

15 Process & Project Management (Table 1.1) Process 1. Repeat process or product 2. Several objectives 3. Ongoing 4. People are homogeneous 5. Systems in place to integrate efforts 6. Performance, cost, & time known 7. Part of the line organization 8. Bastions of established practice 9. Supports status quo Project 1. New process or product 2. One objective 3. One shot limited life 4. More heterogeneous 5. Systems must be created to integrate efforts 6. Performance, cost & time less certain 7. Outside of line organization 8. Violates established practice 9. Upsets status quo 01-15

16 Project Success Rates Software & hardware projects fail at a 65% rate, Over halfof all IT projects become runaways, Only 30%of technology-based projects and programs are a success. Only 2.5%of global businesses achieve 100% project success and over 50% of global business projects fail, Average success of business-critical application development projects is 32%, and Approximately 42%of the 1,200 Iraq reconstruction projects were eventually terminated due to mismanagement or shoddy construction 01-16

17 Why are Projects Important? 1. Shortened product life cycles 2. Narrow product launch windows 3. Increasingly complex and technical products 4. Emergence of global markets 5. Economic period marked by low inflation 01-17

18 Project Life Cycles Man Hours Conceptualization Planning Execution Termination Fig 1.3 Project Life Cycle Stages 01-18

19 Project Life Cycles Conceptualization-the development of the initial goal and technical specifications. Planning all detailed specifications, schedules, schematics, and plans are developed Execution the actual work of the project is performed Termination project is transferred to the customer, resources reassigned, project is closed out

20 Project Life Cycles and Their Effects FIGURE 1.4 Project Life Cycles and Their Effects 01-20

21 Quadruple Constraint of Project Success Figure

22 Four Dimensions of Project Success FIGURE

23 23

24 Six Criteria for IT Project Success 1. System quality 2. Information quality 3. Use 4. User satisfaction 5. Individual impact 6. Organizational impact 01-24

25 Understanding Success Criteria Iron Triangle Information System Benefits (Organization) Benefits (Stakeholders) Cost Maintainability Improved efficiency Satisfied users Quality Reliability Improved effectiveness Social and environmental Time Validity Increased profits Information quality Strategic goals impact Personal development Use Organization learning Professional learning, Reduced waste contractors profits Capital suppliers, content Project team, economic impact to surrounding community Table

26 Spider Web Diagram (Figure 1.8) 01-26

27 Spider Web Diagram with Embedded Organizational Evaluation Figure

28 Developing Project Management Maturity Project Management Maturity (PMM) Models Center for Business Practices Kerzner s Project Management Maturity Model Where is your company in its journey toward project management excellence? First, it assesses the way company is performing and the state of its process at five different levels, factoring in variables such as visibility, consistency and control. The KPM 3 will then give a detailed breakdown of organizational score, as well as the scores of individual project managers. It also benchmarks performance against that of other companies in industry and in the wider marketplace

29 Developing Project Management Maturity Project Management Maturity (PMM) Models ESI International s Project Framework ESI International has been conducting Organizational and Maturity Assessments in the domain of Project Management for more than 10 years. The cornerstone of this assessment capability has been ESI s (PMI-aligned) Project Management Maturity Model Project Framework, 29

30 5 Project Management Maturity Levels of Project Framework 30

31 SEI s Capability Maturity Model Integration Capability Maturity Model Integrated (CMMI) 31

32 Center for Business Practices PMM Level 1: Initial Phase Level 2: Structure, Process, and Standards Level 3: Institutionalized Project Management Level 4: Managed Level 5: Optimizing 01-32

33 Kerzner s PMM Model Level 1: Common Language Level 2: Common Processes Level 3: Singular Methodology Level 4: Benchmarking Level 5: Continuous Improvement 01-33

34 ESI International s Project Framework Level 1: Ad Hoc Level 2: Consistent Level 3: Integrated Level 4: Comprehensive Level 5: Optimizing 01-34

35 SEI s Capability Maturity Model Integration Level 1: Initial Level 2: Managed Level 3: Defined Level 4: Quantitative Management Level 5: Optimizing 01-35

36 Project Management Maturity Generic Model FIGURE

37 Project Elements and Text Organization FIGURE 1.11 Organization of Text 01-37

38 Project Manager Responsibilities 1. Selecting a team 2. Developing project objectives and a plan for execution 3. Performing risk management activities 4. Cost estimating and budgeting 5. Scheduling 6. Managing resources 01-38

39 It is the responsibility of the project manager to: 1. Understand the project requirementsand ensure they are thoroughly and unambiguously documented; 2. Prepare a project planwith achievable cost, schedule, and performance goals; 3. Identify and manage project risks; 4. Ensure the project teamis well-organized, adequately staffed, and working well together; 5. Manage project cost, schedule, requirements, and design baselines so they are traceable; 6. Report meaningful metrics for cost, schedule, quality, and risk; 7. Conduct regular status and design reviews; 8. Ensure the adequacy of project documentationand testing; 9. Maintain meaningful communicationsamong project stakeholders; and 10. Manage the project to attain the project goalsand achieve stakeholder satisfaction. 39

40 For your Project 40

41 For Your Project 41

42 For Your Project 42

43 For Your Project 43

44 For Your Project 44

45 Overview of the Project Management Institute s PMBoK Knowledge Areas FIGURE

46 Video Project Management 46

47 Summary Understand why project management is becoming such a powerful and popular practice in business today. Recognize the basic properties of projects, including their definition. Understand why effective project management is such a challenge. Differentiate between project management practices and more traditional, process-oriented business functions. Recognize the key motivators that are pushing companies to adopt project management practices

48 Summary Understand and explain the project life cycles, its stages, and the activities that typically occur at each stage in the project. Understand the concept of project success, including various definitions of success, such as the triple constraint, as well as alternative models of success. Understand the purpose of project management maturity models and the process of benchmarking in organizations. Identify the relevant maturity stages that organizations go through to become proficient in their use of project management techniques