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4E1 Term 1: Project Management

4E1 Term 1: Project Management. Introduction: The Importance of Project Management (PM). Lecture Objectives. At the end of this lecture you should know: the objectives of this part of the module and how it is organised the topics which will be covered where to find out more information

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4E1 Term 1: Project Management

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  1. 4E1 Term 1:Project Management Introduction:The Importance of Project Management (PM)

  2. Lecture Objectives • At the end of this lecture you should know: • the objectives of this part of the module and how it is organised • the topics which will be covered • where to find out more information • You should understand: • why PM is important to engineers • the relationship of soft issues to PM • the basic career roles for an engineer

  3. Course Organisation • Eighteen lectures/demonstrations • Two 50-minute lectures with a 10-minute break • Slides available in advance of each lecture at www.cs.tcd.ie/Simon.McGinnes • Handouts as required • Case studies, exercises, case material • Software used will be Microsoft Project (any recent version)

  4. Texts • We will be closely following: • Lock, D (2003) Project Management (8th Ed.), Gower. • (earlier editions ok - a shorter version is called “The Essentials of Project Management”) • There are also 200+ books on project management in the library

  5. Module Objectives • To give you • a broad understanding of PM • a good grounding in key techniques • a solid foundation for further developing your skills in this area

  6. Overview of Topics • Intro • Definitions, why projects fail, objectives of PM • Project organisation • Structures, roles, project definition, work breakdown, packages, responsibilities • Budgeting • Evaluation, appraisal, costing, estimating

  7. Overview of Topics (cont.) • Planning & scheduling • Network analysis, critical path, PERT • Other topics • Risk management, contingency planning • Consolidated plans, management, adjustment • PM software, Microsoft project • Purchasing, Admin • Legal aspects, Contracts

  8. The 7 Stages of a Project • Wild enthusiasm • Diminished expectations • Growing concern • Panic • Search for the guilty • Punishment of the innocent • Promotion of the uninvolved

  9. Tales of Woe

  10. BAE Defence Contracts (2003) • Nimrod (plane) project • Production delayed until performance of first three aircraft demonstrated • Astute (submarine) project • Effort needed to turn computer designs into reality greater than anticipated • Original budget £5bn • Overrun £750m

  11. CIE (2000) • £15.7m signalling system project • Two years late • Overrun estimated £44m • Consultants questioned role of four execs who handled contract and then moved to company carrying out the work • CIE attributed overrun to: • Change in Iarnrod Eireann safety requirements • Upgrade in system specifications

  12. Luas (2003) • Original plan (1996) • Budget: €279m • Due 2001 • Final cost estimated €800-1,000m • Delayed 4 years

  13. Ireland’s Biggest Computer Overrun?

  14. Dublin Port Tunnel • Early 1990s First proposed • Mar 1996 £130M (€165M) cost proposed to DCC • Dec 1999 Government agrees £204M (€260M) • Dec 2000 £353M (€448M) design contract • Jun 2001 Work starts • Jan 2003 Cost now €625M • Apr 2004 Cost ‘could rise’ to €780M • Nov 2006 Estimated completion €752M

  15. Airbus A380

  16. Why Do Projects Fail? • Unforeseen technical problems • The Kildare snail, Metal fatigue • Over-optimistic forecasts • LUAS • Labour problems • Disputes, Illness • Planning objections • The M50 • Changes of requirements • Moving goalposts, New requirements • Changes in cost base

  17. Why Do Projects Fail? (cont.) • Political interference • Political ego trips, eco warriors, … • Regulatory problems • EPA/EU/conservation, etc. • Inadequate contracts • The N11 • Changes of personnel • Loss of key staff, learning curves • Aggressive underbidding (“winner’s curse”) • Professional incompetence …and so on and on

  18. On-Time, Every Time? % of IT projects which are: Size (Function Points) Early On-Time Delayed Cancelled Tiny 1 15% 83% 2% 0% Small 10 11% 81% 6% 2% Modest 102 6% 75% 12% 7% Medium 103 1% 61% 18% 2% Major 104 0% 28% 24% 48% Large 105 0% 14% 21% 65% Average 6% 57% 14% 24% Source: Capers Jones

  19. The 8 Laws of PM 1. No major project is ever installed on time, within budget or with the same staff that started it. Yours will not be the first. 2. Projects progress quickly until they become 90% complete, then remain at 90% complete for eternity. 3. One advantage of fuzzy project objectives is that they let you avoid the embarrassment of estimating the corresponding costs. 4. When things are going well, something will go wrong. When things cannot get worse, they will. When things appear to be going better, you have overlooked something. The following are (only part in jest) from the American Production & Inventory Control Society:

  20. The 8 Laws of PM (cont.) 5. If the project content is allowed to change freely, the rate of change will exceed the rate of progress. 6. No system is ever completely debugged. Attempts to debug a system produce new bugs that are even harder to find. 7. A carelessly planned project will take three times longer than expected. A carefully planned project will take only twice as long. 8. Project teams detest progress reporting because it all too vividly highlights their lack of progress.

  21. And Never Forget • Murphy’s Law • O’Leary’s Corollary to Murphy’s Law • Fetridge’s Law of Frustration

  22. Silly Soft Stuff?

  23. Management Leadership Politics Communications Interpersonal dynamics Group dynamics Personal psychology Group psychology Power Organisation Decision-making Judgement Risk Relationships Some Soft Issues

  24. Civil Channel tunnel Luas Port Tunnel N11 Mechanical Eurofighter (most military projects!) GM X car Electrical/Electronic Iarnrod Eireann signalling system IBM bubble memory project Software Irish League of Credit Unions Health Services Executive Why Study Project Management? A catalogue of disasters and overruns:

  25. Why Study PM? • A great deal of engineering is about projects (including the most interesting bits) • Top class project managers are rare and therefore they tend to be well paid • A sizeable number of you will end up in management

  26. Dealing With the Intangible “Managers are not confronted with problems that are independent of each other, but with dynamic situations that consist of changing problems that interact with each other. I call such situations messes. Managers do not solve problems: they manage messes.” Russell Ackoff

  27. Three Career Roles The Function Manager The Project Manager The Professional

  28. Summary – Key Points • Much engineering takes the form of projects • Projects can go wrong – often spectacularly • All engineers need some knowledge of PM • Many need a reasonable knowledge of PM • Some (including many of you) spend most of their working lives in PM

  29. Summary – Key Points (cont.) • We have to confront soft issues • PM is not just about numbers and algorithms • This is sometimes difficult for engineers • How important this is will, to some extent, depend on your career path

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