Project Management

1. Project Management Implementing Corporate Project Management System Spider Project Team

2. Organization has serious problems if its projects are not managed properly • Project problems are frequently caused by ineffective project management. As the result projects are late, project costs exceed expected values, organization has problems with clients, stakeholders, and personnel motivation. • Corporate project management system helps to solve these problems.

3. Project Management Requirements • Good project management requires: • Defining measurable and achievable goals that shall be met in the specified time period, • Defining proper project success criteria that will motivate project personnel to achieve organizational business goals, • Application of project management software that helps to plan, to analyze, and to control project execution, • Implementation of the organizational structures that support project management processes, • Implementation of the project participants award and recognition system that motivates project teams to achieve project goals.

4. Project Management Tasks • Practically project management helps to solve the following tasks: • To initiate projects basing on reliable estimates of future benefits, • To create project schedules and budgets that optimize limited resource usage, • To develop an optimal plan for project financing and supplies, • To improve project stakeholders communications,

5. Project Management Tasks • To organize proper project performance management and contract administration, • To analyze project risk and uncertainties and to create contingency plans and reserves, • To simulate project management decisions using project computer model before their implementation, • To manage project archives and knowledge databases.

6. Project management Benefits • American statistics shows that • Project Management implementation saves 10-15% of project budgets, • Project Management average cost is 6.5% of the project cost.

7. Project management Benefits • Project Management became very popular because its benefits are obvious. • Many enterprises like ATT, Hewlett Packard, Boeing implemented new approach to the corporate management that is called Management by projects. • PMI developed new standard that is called OPM3 (Organizational Project Management Maturity Model). Unlike previous standards OPM3 describes not one project management but corporate project management system.

8. Project Computer Simulation • Modern Project Management is based on computer aided project planning, performance analysis and decision making. • Project Management software was one of the first applications developed for the personal computers. • We are proud that Spider Project software developed in Russia is most functional and powerful PM software ever made.

9. Project Management Software • Project Management software: • Creates reliable project schedules that optimize resource usage and takes into account all project constraints like resource, calendar, financial and supply limitations. • Calculates project material requirements at any time period. • Calculates project budget and financial requirements for any time period. • Calculate project resource (labor, machines) requirements for any time period.

10. Project Management Software • Collects project performance information and adjusts project plan basing on performance results. • Forecasts future project results and shows any deviations from the approved baseline. • Controls project contracts performance. • Analyzes risk and uncertainties and calculates necessary contingency reserves. • Analyzes trends of project parameters. • Supplies project stakeholders with the reliable estimates of project performance.

11. Project Management in Russia • Project Management becomes more and more popular in Russia and Eastern Europe. • In Russia it is used in many industries like Aerospace and Defense, Engineering, Construction, Metallurgy, Retail, Mining, Ship Building, Telecommunications, Banking, Software Development, System Integration, Power Supplies, Oil & Gas, etc.

12. Project Management Implementation • Project Management implementation requires: • Development and Implementation of the corporate project management standards, • Large scale corporate training – it is necessary to speak common professional language, • Implementation of the project management software, • Creation of the new organizational unit that is usually called Project Management Office (PMO).

13. PMO • PMO usually includes following departments: • Methodology • Analysis • Archive • Portfolio Management

14. PMO –Methodology Department • Main functions of methodology department: • Development and actualization of the Project Management Guidelines and other corporate PM standards, • Project staff training, • Internal consulting and coaching, • Development and actualization of the organization knowledge base.

15. PMO –AnalysisDepartment • PMO Analysis department: • Develops and works with the project computer models, • Helps project managers with project planning, performance monitoring and decision making, • Supplies project stakeholders with the performance reports and other necessary information.

16. PMO –ArchiveDepartment • PMO Archive department: • Manages project archives for current projects, • Creates and maintains the library of project archives.

17. PMO –Portfolio ManagementDepartment • PMO Portfolio Management department functions: • Project Portfolio Management, • Establishment of project priorities, • Dealing with conflicting and competing project requirements.

18. Critical Success Factors • Project Management System can be successfully implemented if it is based on: • Strong Support of the top management, • Corporate norms and standards, • PM personnel reward and recognition system, • PM software tools, • Staff education. • Constant Top Management support is the key success factor!

19. Stages of PM implementation • Project Management System implementation project consist of three main phases: • Initiation • Pilot Project • Corporate project management system

20. Initiation • Initiation includes: • Education of top management and key project staff • Project Charter Development • Choice of the pilot project • Implementation planning and budgeting

21. Pilot Project • Pilot Project is necessary for applying PM tools and techniques to the real life project in your organization • During pilot project PM approaches and techniques will be used and adjusted to the organization specifics and needs • Successful pilot project helps to overcome personnel resistance to change.

22. Corporate PM system • Pilot Project helps to develop internal norms and standards that can be used in other projects • Implementation of these standards in every project is necessary for project portfolio management implementation • At this stage organizational changes like creating Project Management Office will be done • At this stage corporate project resource management will be implemented.

23. Corporate PM system • Overall Corporate PM system implementation takes from one to two years and brings remarkable results.

24. Our Clients • We have many happy customers in Russia and abroad. Some of them are listed below: • Russian Ministry of Defense • Russian Aluminum • United Metallurgical Company (Russia) • Metalen (Ukraine) • Central Telegraph (Russia) • Romtelecom (Romania) • Connex Vodafone (Great Britain) • Rosatomstroy (Russia) • Ozer Construction (Turkey) • Tecton Ltd (Hong Kong) • Caspian Pipeline Consortium • Petergaz (Netherlands) • Northern Shipyard (Russia) • 1st Power Generating Company (Russia) and many others

25. Thank you • Thank you for your time. • We’ll be glad to answer your questions and to show Spider Project software and examples of the real projects. • Our E-mail addresses: • spider@mail.cnt.ru • smt@spiderproject.ru • Visit our Web site: www.spiderproject.ru

26. Appendix:Spider Project advantages • In this Appendix we will describe some advantages of Spider Project software. • Any number of work, resource and cost breakdown structures used in one project or portfolio. • Ability to work with activity quantities (volumes), not only durations as in other software. This feature permits to apply corporate norms like material requirements and costs per unit of volume. • Ability to work resource productivities that define activity durations. Corporate norms can include resource productivities for typical resource assignments.

27. Appendix:Spider Project advantages • Resource constrained schedule optimization. Project schedules created by Spider Project are usually shorter that the schedules created for the same project by other PM software packages. • Project schedules are calculated taking into consideration financial and supply constraints. This feature is unique. • Calculation of resource critical path (critical chain) and feasible activity reserves. • Any number of cost components, multicurrency. • Simulation of income and supplies, calculation of NPV, IRR, payback period with discounting.

28. Appendix:Spider Project advantages • Risk simulation and calculation of necessary contingency reserves. • Trend analysis for any project parameter. • Management of success probability trends. • Keeping project archives. • No restrictions at all, fast work with the very large models. • Ability to work with any standard database (Oracle, SQL Server, Access, Lotus) and export/import to MS Project and Primavera Enterprise. • This list is not full, we can show a lot more if necessary.