ATF 202 – Project Management

1. ATF 202 – Project Management UNIT 1

2. Project Management • Module Leader: Ken Robson • Lecturer: David Baglee & Phil Johnson email: david.baglee@sunderland.ac.uk Industry Centre Wessington Way Telephone: 01915152869

3. Project Management ATF202 • 20 credit module • Assessment by Semester 1 – Individual Assignment: 50% Semester 2 - Examination 50%

4. Module Operation • Driven by study notes and Key text book • Study notes available Ken’s home page • www.cet.sunderland.ac.uk/~cs0kro • Key Text : • Project Management – Rory Burke 4th ed 2003 or • Project Management – Rory Burke 3rd ed 1999

5. Project Management • Course • Lectures/tutorials: David Baglee • Labs – Microsoft Project : Phil Johnson

6. Lesson Objectives • Investigate the characteristics of ‘a project’ • Investigate what is involved in managing projects • Assess the importance of managing a project • Evaluate the likely problem areas within projects • Develop the basic skills to use Microsoft Project

7. Project Management in context • Where does Project Management fit with Operations Improvement? • The main emphasis of this programme is concerned with operations and this module the management of Capital Projects

8. OPERATE AND MAINTAIN REGENERATE IMPROVE What do Operations Manager need to balance ? ‘Day to day business’. Make widgets! Safety, budgets, planning, people management • Significant • BPR • Capital • Projects • Equipment • re-design Incremental e.g. Reduce downtime Changeovers scrap

9. Project Management • What do you think a Project is?

10. Project Management • Various definitions for a project • A temporary endeavour undertaken to create a unique product or service. • Planned activity. • ‘A project is a set of co-ordinated activities that contribute to the achievement of a common goal or goals. • British Standards have defined a project as: “ a unique set of co-ordinated activities, with definite starting and finishing points, undertaken by an individual or organization to meet specific objectives within defined schedule, cost and performance parameters.”

11. Projects vs Functional work • Key characteristics of projects • a start and finish • a budget • planning is required • specific objects are to be met or • a specified product is to be created • the project has a predetermined time span • a lifecycle • unique and non-repetitive tasks or activities • single point of responsibility • Functional work - is normally repetitive, ongoing and predictable

12. Exercise - Categorise the following • Launch a new product. Project/Functional • Manage a research unit. Project/Functional • Conduct an appraisal. Project/Functional • Raise £50,000 in sponsorship. Project/Functional • Sell Company services. Project/Functional • Review existing procedures. Project/Functional • Administer a Theatre Company.Project/Functional • Supervise the office Project/Functional • Build a house. Project/Functional • Write a book. Project/Functional • Editing a magazine. Project/Functional

13. Exercise - Categorise the following • Launch a new product. Project • Manage a research unit. Functional • Conduct an appraisal. Functional • Raise £50,000 in sponsorship. Project • Sell Company services. Functional • Review existing procedures. Project • Administrate Theatre Company. Functional • Supervise the office Functional • Build a house. Project • Write a book. Project • Editing a magazine. Functional • Functional = ongoing and repetitive, • Projects = have a beginning and end and non repetitive.

14. The Project Life Cycle • Generally considered to be four stages within the life cycle. • Concept and Initiation – establishes need or opportunity, feasibility of project is investigated. • Design & Development – uses guidelines to design product, service etc and develop detailed plans for implementing the project • Implementation – implements plan as in baseline plan developed in previous phase. • Commissioning and Handover – confirms the project has been implemented and the project is terminated.

15. The Project Life Cycle • Key points: • Rate of effort and expenditure is higher during the implementation phase. • Normally some knowledge transfer occurs between phases • Potential to influence the project is highest during the concept and design phases. • Each of the four main phases can be managed as a separate project.

16. Project Management • What is Project Management? • Project Management ‘the application of knowledge, skills, tools and techniquesto project activities in order to meet stakeholders needs and expectations’ (PMBOK)

17. PMBOK • PMBOK –Project Management Bodies of Knowledge • Several PM bodies have proposed knowledge frameworks: • PMI – Project Management Institute, • APM - Association of Project Managers • Some differences, but general agreement on key elements within P.M. • PMBOK provided by the PMI is a good example

18. PMBOK PROJECT INTEGRATION MANAGEMENT A subset of project management that includes the processes required to ensure that the various elements of the project are properly coordinated. It consists of: • Project plan development - integrating and coordinating all project plans to create a consistent, coherent document. • Project plan execution - carrying out the project plan by performing the activ­ities included therein. • Integrated change control - coordinating changes across the entire project. PROJECT SCOPE MANAGEMENT A subset of project management that includes the processes required to ensure that the project includes all the work required, and only the work required, to complete the project successfully. It consists of: • Initiation - authorizing the project or phase. • Scope planning - developing a written scope statement as the basis for future project decisions. • Scope definition - subdividing the major project deliverables into smaller, more manageable components. • Scope verification - formalizing acceptance of the project scope. • Scope change control - controlling changes to project scope. PROJECT TIME MANAGEMENT A subset of project management that includes the processes required to ensure timely completion of the project. It consists of: • Activity definition - identifying the specific activities that must be performed to produce the various project deliverables. • Activity sequencing - identifying and documenting interactivity dependencies. • Activity duration estimating - estimating the number of work periods that will be needed to complete individual activities. • Schedule development - analysing activity sequences, activity durations, and resource requirements to create the project schedule. • Schedule control - controlling changes to the project schedule.

19. PMBOK PROJECT QUALITY MANAGEMENT A subset of project management that includes the processes required to ensure that the project will satisfy the needs for which it was undertaken. It consists of: • Quality planning - identifying which quality standards are relevant to the project and determining how to satisfy them. • Quality assurance - evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards. • Quality control - monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory performance. PROJECT HUMAN RESOURCE MANAGEMENT A subset of project management that includes the processes required to make the most effective use of the people involved with the project. It consists of: • Organizational planning - identifying, documenting, and assigning project roles, responsibilities, and reporting relationships. • Staff acquisition - getting the needed human resources assigned to and working on the project. • Team development - developing individual and group skills to enhance project performance. PROJECT COMMUNICATIONS MANAGEMENT A subset of project management that includes the processes required to ensure timely and appropriate generation, collection, dissemination, storage, and ulti­mate disposition of project information. It consists of: • Communications planning - determining the information and communica­tions needs of the stakeholders: who needs what information, when they will need it, and how it will be given to them. • Information distribution - making needed information available to project stakeholders in a timely manner. • Performance reporting - collecting and disseminating performance information. This includes status reporting, progress measurement, and forecasting. • Administrative closure - generating, gathering, and disseminating information to formalize phase or project completion.

20. PMBOK PROJECT RISK MANAGEMENT Risk management is the systematic process of identifying, analysing, and responding to project risk. It includes maximizing the probability and conse­quences of positive events and minimizing the probability and consequences of adverse events to project objectives. It includes: • Risk management planning - deciding how to approach and plan the risk management activities for a project. • Risk identification - determining which risks might affect the project and doc­umenting their characteristics. • Qualitative risk analysis - performing a qualitative analysis of risks and con­ditions to prioritise their effects on project objectives. • Quantitative risk analysis - measuring the probability and consequences of risks and estimating their implications for project objectives. • Risk response planning - developing procedures and techniques to enhance opportunities and reduce threats from risk to the project’s objectives. • Risk monitoring and control - monitoring residual risks, identifying new risks, executing risk reduction plans, and evaluating their effectiveness throughout the project life cycle. PROJECT PROCUREMENT MANAGEMENT A subset of project management that includes the processes required to acquire goods and services to attain project scope from outside the performing organi­zation. It consists of: • Procurement planning - determining what to procure and when. • Solicitation planning - documenting product requirements and identifying potential sources. • Solicitation - obtaining quotations, bids, offers, or proposals, as appropriate. • Source selection - choosing from among potential sellers. • Contract administration - managing the relationship with the seller. • Contract closeout - completion and settlement of the contract, including resolution of any open items. PROJECT COST MANAGEMENT A subset of project management that includes the processes required to ensure that the project is completed within the approved budget. It consists of: • Resource planning - determining what resources (people, equipment, mate­rials) and what quantities of each should be used to perform project activities. • Cost estimating - developing an approximation (estimate) of the costs of the resources needed to complete project activities. • Cost budgeting - allocating the overall cost estimate to individual work activities. • Cost control - controlling changes to the project budget.

21. Project Management • If projects are not managed? THEY’RE GONNA FAIL! • Project management - Not ‘rocket science’ • Its common sense, isn’t it?

22. Projects not delivered on time Confirmation by Airbus of the delays came after Australian airline Qantas revealed last week that delivery of the first of its 12 A380s had been put back from October 2006 to April 2007 and still not complete. Lead contractor Multiplex has missed three completion deadlines since taking on the £757 million project.

23. Projects not delivered on time • Work and pensions IT projects £315m over budget As completion date slips from 2007 to 2011 • Channel TunnelOriginal estimated cost:£4.8bnFinal cost: £10bn one year late

24. Poor planning

25. Next week • Project Evaluation