Project Management

1. Project Management • Some statistics: • In 2001, the expenditure on Projects in the United States of America was $US 2.3 trillion • This is 25% of the nation’s GDP • It is estimated that the world expenditure on projects is approximately $US10 trillion of its $40 trillion gross product

2. Project Management • Approximately 16 million people regard project management as their profession • A ‘Project Manager’ earns in the vicinity of $US80,000 to $US100,000 per year • In 2000, the number of IT application development projects was 300,000. • In 2001 this increased to 500,000 projects

3. Project Management Some advantages of Project Management • Better control of financial resources • Better control of physical resources • Better control of human resources • Improved customer relations • Shorter development times

4. Project Management • Lower costs • Higher quality - Increased reliability • Improved productivity • Improved internal coordination • Increased worker morale

5. Project Management • You should ask 1 ‘ Better than what’ 2. ‘How is better measured’ 3. ‘Is the measurement before and after on the same basis’ However: Governments, corporations, and non-profit organisations (can you name one ?) recognise that modern project management techniques are necessary for ‘success’. (you should read the article by the Standish Group on their study of IT application projects)

6. Project Management This is a good time to ask : ‘What is a Project ?’ Try this : ‘A project is an endeavour to create a unique product or service’. Projects: • normally involve several people performing interrelated activities, • the main customer of a Project is interested in the effective use of resources to complete the Project in an efficient and timely manner Are your assignments ‘projects’ ?

7. Project Management • And there is more :- • A project has a unique purpose - there must be a clear and defined objective • A project is temporary (some are long term, some are short term) - There is a definite beginning and a definite end point • A project can be split into ‘segments’ - each of which can realistically be a ‘project’ (can you think of one ?)

8. Project Management • A project requires resources - often from various areas. These resources are people, hardware, software and other assets • A project frequently crosses ‘departmental’ boundaries - e.g. sales, marketing, management, IT

9. Project Management • A Project should have a primary customer(s) or sponsor(s) • Projects have interested parties (stakeholders) but there must be a primary role of sponsor • This sponsor provides direction and funding for the project

10. Project Management • A project involves ‘uncertainty’ - Each project in unique. • It is often difficult • to clearly define the project objectives • to estimate how long it will take to complete • or the ‘cost’ • all of which makes Project Management a challenge

11. Project Management • Project Managers work with the project sponsor(s), the project team and other ‘involved’ people (such as the ‘users’ • There are 3 ‘constraints’ in Project Management • scope of the project • time to develop and deliver • costs • These are often known as the ‘ triple constraint’ • Balance of these constraints is essential

12. Project Management • A project Manager is much occupied with • Scope - What is the project objective - What is the expectation of the project • Time - How long to complete ? Schedule ? • Cost - What is the ‘total’ cost Project Managers ‘trade off’ scope, time and costs - increase one, decrease another constraint.

13. Project Management What is ‘Project Management’ ? It is the application of • knowledge, • skills • tools • techniques to project activities in order to meet project requirements

14. Project Management There are 9 Knowledge Areas associated with Project Management They are : 1. Scope Management 2. Time Management 3. Cost Management 4. Quality Management These are regarded as ‘Core Functions’

15. Project Management Supporting these ‘Core’ functions are 4 ‘Facilitating’ functions 5. Human resources Management 6. Communications Management 7. Risk Management 8. Procurement Management And, the 9th Function is : Project Integration Management

16. Project Management Who (or what) are Stakeholders ? Stakeholders are the people involved in or affected by project activities. They include • the Project Sponsor (of course) • the Project Team • Support Staff • Customers

17. Project Management • Users • Suppliers • Those opposed to the Project (have I left anybody/group out ? - such as -) • Senior Management ? Senior Administration ? • Auditors ? Regulatory Bodies ? ?

18. Project Management Stakeholders often have completely different needs and expectations. Consider the building of a new house: Who would you consider is the Project Sponsor ? Who would be the Project Manager - the Contractor ? Who would be the Project Team ? Who would be the ‘support staff’ ? - Suppliers ? Would there be any ‘opposition’ stakeholders ? - Who? Why ?

19. Project Management • Are you a Stakeholder in any project ? • Were you ‘involved’ when the Monash Home Page was redesigned and introduced • Were you involved when your favourite bank changed its home page • Are you ‘involved’ when Amazon.com changes its home page and access patterns ?

20. Project Management • Project Management probably sounds like an enormous effort • However, there are many tools and techniques which exist to lessen the workload and which make project managers very effective. • These are classed as ‘Project Management Tools and Techniques’ - and they will change, improve and expand - and probably become more integrated and ‘intelligent’

21. Project Management • Project Management Tools and Techniques are directed at scope, time, cost and quality management • There are other tools which provide assistance with human resource, communication, risk, purchase (or procurement) and integration management. • Time Management - are you familiar with these ? • Gantt charts • network diagrams • critical path analysis

22. Project Management On the next few overheads there are some Project Management Tools and techniques Knowledge AreaTools and Techniques Integration Management Project plans Project Management Project reviews Scope Management Net present value Requirements analysis Return on Investment Time Management Network diagrams Critical path analysis Program Evaluation and Review Techniques

23. Project Management Knowledge AreaTools and Techniques Cost Management Earned value management Cost estimates Cost management plan Quality Management Quality control charts Quality audits Statistical methods Human resource Management Motivation techniques Resource diagrams Resource levelling Responsibility matrices

24. Project Management Knowledge Area/Category Tools and Techniques Communications Conflict management Management Meetings Project Web sites Procurement Management Contracts Requests for Proposals Selection of Source Risk Management Risk management plan Risk ranking Probability matrices

25. Project Management • Other knowledge requirements • General management • Organisational behaviour • Financial analysis • planning techniques Automation of a Sales force would require knowledge of the processes appropriate automation software mobile computing can you suggest others ?

26. Project Management • Project Management Job Functions • Define scope of project • Identify stakeholders, decision makers • Develop detailed task list • Estimate time requirements • Develop initial project management flow chart • Identify resources and budget • Evaluate project requirements • Identify, evaluate and rank risks

27. Project Management • Prepare contingency plan or plans • Identify critical point (or milestones) • Identify Interdependencies and • Take part in phase reviews • Secure needed resources • Manage the change control process • Report project status

28. Project Management A quick quiz:- read the ‘effective’ project manager attributes, and then develop an ‘ineffective’ manager’s attributes An Effective ManagerAn Ineffective Manager Leads by example Has ‘vision’ Is technically competent Is decisive Is a good communicator Is a good motivator Will argue with senior management (if/when necessary) Supports team managers Encourages new ideas

29. Project Management Time for a few comments/feedback How does or would a Project Manager stay technically competent ? Does ‘decisive’ mean a strong ‘yes’ or ‘no’ ? Are there any other requirements ? What does ‘supporting team members’ imply Does ‘encouragement of new ideas’ automatically imply acceptance or introduction ?

30. Project Integration Management Project Integration Management This involves the co-ordination of all of the project management knowledge areas during the project life cycle (you remember the Project Life Cycle don’t you ?) Integration Management is essential to ensure that cohesiveness is assured - that all of the components of a project merge together at the right time in the right order at the required level of quality and complete the project

31. Project Integration Management Project Integration Management involves these processes • Project Plan Development : all of the other planning processes become part of a ‘Project Plan’ • Project Plan Execution : All of the activities included in the Project Plan are activated and performed • Integrated Change Control : Any and all changes to the Project are co-ordinated Not surprisingly - Management of project scope, quality, time, cost., human resources, communication, risk and procurement is essential

32. Project Integration Management Let’s have a quick look at a Project Plan This is a document which • coordinates all project planning documents • assists in guiding and focussing the execution of a project and its control Project Plans also document • project planning assumptions • decisions where there is more than one choice

33. Project Integration Management A Project Plan also • provide or make possible communication among the stakeholders • define content, scope and timing of management reviews • provide the guideline or measuring point for the measurement and control of a project Project Plans should be dynamic ( meaning ???) Project Plans should be flexible (is this good or bad ?) Project Plans must alter when the conditions or environment of the Project alter.

34. Project Integration Management You have probably formed the impression that a Project Manager must be an ‘Integrator’ A Project Manager must possess and use Integration Management skills Remember that Information is required from all of the project management knowledge areas

35. Project Integration Management • So, what does a Project Plan introduction (overview) contain ? • The Project name - which must be unique (why ?) • A concise description of the project, and why the project does or should exist (is this the same as the Project Justification ?) • Reference to the Sponsor (in what detail /) • Reference to the Project Manager and the Key team members • The deliverables • References to (Scope, Schedule, Cost, Quality, Communications ……. Management plans)

36. Project Integration Management • A description of the project organisation • An organisation chart which should show • lines of authority • responsibilities • communication • Project responsibilities • Management and Technical matters • Management objectives • Project controls • Risk management • Technical processes - (for example) methodology

37. Project Integration Management • The Scope Management plan • A work breakdown structure • Key deliverables • Key Deliverable dependencies • Quality of product deliverables • Project Schedule Information • A short (one page) summary schedule • A detailed schedule (which shows dependencies e.g. work and funding dependencies)

38. Project Integration Management • Budget • A summary budget - the ‘numbers’ by month, quarter .. • A detailed budget - Fixed and recurring costs each year.. • People skills, method of calculation of labour costs • Stakeholder Analysis (why include this ?) • The names of the ‘key’ stakeholders • The stakeholders roles on/with the project • Their level of influence • Stakeholder relationships management • and this could be a ‘sensitive’ document

39. Project Integration Management • We have successfully dealt with Project Plan Development • Now we will deal with Project Plan Execution • This is the 2nd stage of Project Integration Management • This involves managing and performing the work described in the project plans • Most of the project’s budget is spent on execution - this is where the major time component exists - and where the project product(s) appears (or appear)

40. Project Integration Management • Coordination of Planning and Execution • Project Planning and Execution are firmly linked • The main output of creating project plans is to direct or guide project execution • A good plan = a good product • And a good plan must document the the basis of evaluation of ‘good work’

41. Project Integration Management • Leadership and Support • This might seem ‘off centre’ but Project Execution is very dependent on these attributes • As you saw in a previous overhead, Project Managers must lead by example • They must show the importance of creating skilled and accurate project plans • Project Managers must follow the project plans in the development and execution of the project • In addition to this, there must be strong organisation culture - which means that clear and accepted organisation rules exist.

42. Project Integration Management • Project Managers must also have business, product and application area knowledge • A ‘small’ project may call on the Project Manager to develop or work on some of the technical work involved • On ‘large’ projects the Project Manager must lead the team and communicate with the key users - which means that the project manager has strong business and application area skills - and possibly lesser developed technology skills

43. Project Integration Management Some Project Execution Tools and Techniques 1. A work authorisation system 2. Status review meetings (not written weekly or monthly reports - personal and verbal reviews are much more effective) 3. Project Management software (Microsoft Project ?)

44. Project Integration Management • Integrated Change Control Process There are 3 major aspects here; 1. Ensuring that any changes are a benefit - and this can mean trade-offs between scope, time, cost and quality 2. Has a change occurred ? This requires the Project Manager to know at all times the status of the key project items …. and …. Communication of changes with senior management, and the major stakeholders - quickly and accurately 3. Managing changes as they occur. A Key role of Project Managers and their teams. It is important to use discipline to minimise the number of changes (why ?) (Have you heard of prototype system development ?)

45. Project Integration Management Inputs to the Integrated Change Control Process • Project plans • Performance reports • change requests Outputs from the Change Control Process • Project plan updates • Corrective action to be taken • Documentation • Confirmation of Change - or No Change

46. Project Integration Management • The Project Plan is the source for identifying and controlling changes (key deliverables) • The schedule section of the project plan shows the planned dates for completion of key deliverables • Performance Reports give status information relating to the project execution is progressing These give an ‘early warning’ of possible future problems • Is corrective action necessary/essential ? • What is the ‘best’ course of action ? • When should action be taken ?

47. Project Integration Management The Change Control System • This is a formal, documented process which describes when and how project documents may be changed • It describes the authorised persons, the necessary documentation, and automated or manual tracking systems the process will use.

48. Project Integration Management • In large, expensive projects is it common to have a Change Control Group (who would be in this Group ?) • This Group would • provide guidelines for preparing change requests • Evaluate change requests • Manage the change implementation • Question:= Can you see any problems with this approach ?

49. Project Integration Management • Integrated Change Control also includes Configuration Management • This ensures that the project product descriptions are correct and complete • Concentrates on the functional and physical aspects of products and their support documentation

50. Project Integration Management And we have already mentioned the essential nature of communication Try answering these questions • Who communicates with whom ? • What do they communicate ? • Is this communication formal or informal ? • How is this communication performed ?