Chapter 1 Modern Project Management.pptx

modern project management

1. Project Management OTM454 Chapter 1 Modern Project Management Prof Ir Dr Amir Azam Khan School of Chemical and Materials Engineering, NUST

2. Course plan

3. The Project Management Institute defines a project as following: A project is a temporary endeavor undertaken to create a unique product, service or result. It should have the following characteristics: An established objective A defined life span with a beginning and an end. Usually, involvement of several departments and professionals is required. 4. Typically, a task is performed which has not been done before. 5. Specific time, cost and performance requirements. What is a Project?

4. Project should not be confused with everyday routine work. The terms “Project” and “Program” are sometimes confused with each other. A Program is a group of related projects designed to accomplish a given goal over an extended period. Each project has a project manager. The major differences lie in scale and time span. Program management is the process of managing a group of inter-related and inter-dependent ongoing projects in a coordinated way to achieve strategic objectives. What a Project is not?

5. Project life cycle

6. Project stages

7. Project Manager Project Manager is different from a Functional or Operational Manager. Project Manager leads a team, whereas functional managers takeover existing operations, which are sometimes routine or repetitive operations. Project Managers usually create their own organizational structure within a team, which is valid only over the life span of a project. Project Manager must be able to manage diverse expertise and diverse characters over the course of a project. A project team may consist of experts in diverse areas of specialization. Project Manager usually has to deal with experts who are also answerable to functional managers. This creates situation of dual reporting, very difficult to handle without relevant management experience. Good project Managers are always in demand. It is difficult but rewarding experience.

8. Importance of Project Management Compression of the product life cycle Over the last few decades, the product life cycle has reduced from 10 to 15 years, to 1 to 3 years. Examples: Desktop Computers, Automobiles, Handheld devices, etc.. Knowledge Explosion Growth in knowledge has increased the complexity of projects. This means less routine work and more innovative work for a company to remain competitive. Triple Bottom Line (Planet, People, Profit) Threat of global warming has brought the issue of sustainability to the forefront. Corporate downsizing Organizational changes in corporate structure has made the Project Management importance grow. Increased customer focus Increased competition has placed a premium on customer satisfaction. Small Projects represent Big Problems The speed with which change is taking place, has increased the number of projects to be undertaken, sometimes parallel to each other. This climate has created a multi-project environment and hence, a number of new problems have arisen as a result.

9. Project Management: An integrative approach Competing in a global market where time to market is essential variable, a lean management model is the most appropriate answer. Project Management provides solution to lean management. Integration is designed to improve project management. The rationale of integrative approach is to provide senior management with: An overview of project management activities A big picture of how organizational resources being used An assessment of the risk their portfolio of projects represents A rough metrics for measuring the improvement of managing projects relative to others in industry Linkages for senior management to the actual project management execution team on the ground.

10. Integration of Projects with Organizational Strategy In some organizations selection and management of projects often fail to support the strategic plan of the organization. Strategic plans are written by a group of managers which can be different from group of Project Managers. These conditions may lead to conflicts, confusion and sometimes set of unsatisfied customers. Hence strategic alignment of Projects is of major importance. The selection criteria of projects need to be carefully examined so that the Project fulfils the strategic goals of an organization. One practical example is the Faculty Development Program at NUST or any other University in Pakistan, which is composed of several projects, which are most of the time not aligned with the strategic goals. Selection process has to be systematic, consistent and all selected projects should become part of a project portfolio. This has to balance the risk associated with these projects. Management of the Project Portfolio.

11. Management of Project portfolio allows the senior management to zoom in and zoom out of the project in line with the financial and other predetermined objectives of the projects or a group of projects within a portfolio. The major functions of portfolio management are: Oversee project selection Monitor aggregate resource level and skills Encourage use of best practices Balance projects in order to represent an appropriate risk level Improve communication between stake holders Create a total organization perspective Improve the overall time management of projects Integration of Projects through Portfolio Management

12. Senior management is often involved in selecting projects, but seldom involved in implementing them. Implementing a project is a challenge. There are two dimensions in execution of a project: Technical Aspect, includes planning, scheduling and controlling. Socio-Cultural aspect, this involves mostly the ground reality where the orderly world of project planning do not work. Some suggest that the technical side represents the “science” of the project, and the socio-cultural side represents the “art” of the project. To be successful a manager must be smart at both. Unfortunately, some managers are so much involved in the technical side that they completely forget the socio-cultural side. Good managers should balance their attention to both sides. Integration of the Processes of Implementing Actual Projects