PROJECTS IN CONTEMPORARY ORGANIZATIONS

1. PROJECTS IN CONTEMPORARY ORGANIZATIONS Introduction • We live in a world of rapid development – physical and infrastructure, technological and human • Projects in Malaysia – MNC (Malaysian National Car –1983), KLIA (completed 1998), KLCC twin tower, many more • Who is involved? Public and Private sector, Local and foreign companies

2. Often hear about project being delayed, not completed, “abandoned/terbengkalai”, etc. why??? • Lack of management skills and knowledge – is one of the reasons for • Costs overrun • Delay – not meeting dateline • Not meeting specification/performance/quality • Therefore, need project management skills and knowledge

3. Introduction • Project mgmt (PM) provides “powerful tools” on how : • to plan, organize, implement & control activities • to use people & resources • PM initiated by the military – Polaris Missile Programme (1950’s) and private companies – EI DuPont (Chemical Plant Maintenance Shutdown Project) – to increase effectiveness of project implementation • PM needed as intense competition between companies – quick response, fast delivery of new products

4. Project Objectives and Triple Constraints • Main objectives of project mgmt (called Triple constraint) • Time • Cost • Performance • Project Manager constantly make tradeoffs on the triple constraints - one affects the other • Also must consider risks involved in project management

5. Project Mgr (also known as the Super manager) – must integrate all aspects of project; ensure proper knowledge & resources; ensure the expected result on a timely & cost effective manner , and know implications of decisions

6. Definition and Characteristics of a Project Basic Definition of Project • Have a specific and finite tasks to be accomplished, whether large or small scales, long or short run • Common terms used in PM : program, project, task, work package, work unit (to be covered later)

7. Definition and Characteristics of a Project Purpose • Project – usually a one-time activity with a set of desired end result; can be divided into subtasks, which required coordination & control Life Cycle • Project life cycle – slow beginning  progress to a buildup of size  peak  begin decline  finally must terminate

8. Definition and Characteristics of a Project Interdependencies • Projects interact with other project being carried out simultaneously by parent org., but always interacts with the parent’s standard, ongoing operations, etc. • The patterns of interaction between functional dept. may change. e.g. Marketing may involved at the beginning & end of project; Mfg may have major involvement throughout; Finance often involved at the beginning & accounting at the end • Project mgr - keep these interactions clear & maintain

9. Definition and Characteristics of a Project Uniqueness • Every project are unique – no two projects are the same • Some degree of customization is there Conflict • Project mgr. – full of conflict; projects compete with functional dept. for resources & people • Project members – conflicting for project’s resources & leadership roles in solving problems; deal with clients & org. • Individual’s conflict – two bosses at the same time; different objectives & priorities

10. Difference between project management and production management • Quantity – usually in large numbers (mass production) • Products similar but with variety – (example - consumer goods - cars, household, computers, etc.) • Inputs to the process put together (based on product) in a facility (factory) but in project they are brought to the ‘site’, e.g. equipments, man, material • Process and activities carried out repetitively/ more than once, not in projects where most activities carried out once

11. Why Project Management? • Project manager expected to coordinate & integrate all activities to reach project’s goals • Project – allows the mgr to be responsive to the client & environ, to identify & correct problems, make timely decisions, ensure mgrs at separate tasks do not sub-optimize • Advantages of project mgmt; • Better control & better customer relations • Shorter development times, lower costs, higher quality & reliability, higher profit margins • Sharper orientation towards results, better interdepartmental coordination & higher worker morale

12. Some disadvantages of project mgmt • Increased organizational complexity • Increase the likelihood that organizational policy being violated – project mgr being autonomous • Higher costs, management difficulties, low personnel utilization • PM is difficult even when everything goes well - what more if things go badly • Project organization is the only feasible way to accomplish certain goals - literally not possible to design & build a major weapon system in a timely & economically acceptable manner, except through project organization – i.e. applying PM tools

13. The Project Life Cycle • Projects – go through similar stages  from origin to completion • Project is born (start-up phase); mgr is selected  project team & resources are assembled  organize work • Work gets way & momentum quickly builds  progress is made  until the end is in sight

14. The Project Life Cycle • Takes time to complete final tasks; Why? Often a number of parts must come together & team members “drag their feet” • Pattern of slow-rapid-slow progress – is common due to changing level of resources used • Project effort, usually in man-hours (or number of people working on project) plotted against time

15. The Project Life Cycle • Beginning – minimal effort; development of concept & processes selection • Activity increases – rises to a peak – begin to taper off as project nears completion – finally ceasing when evaluation is complete – terminated • Some cases – effort never fall to zero; small group may be maintained for the next project

16. The Project Life Cycle • Performance – important at early stage of project’s life cycle; time when planners find the methods required to meet project’s performance goals (these methods is refer as project’s technology; application of science or art) • While technology of project is defined – project schedule is designed & project costs are estimated • Conventional wisdom - Early life cycle – performance important than schedule & costs; During high activities – costs important; Final stages – schedule become paramount – May not be true • Recent research indicates – performance & schedule more important than cost during all stage