essentials of project management lecture
DESCRIPTION
INTRODUCTION TO PROJECT MANAGEMENT• EVOLUTIONANDAPPLICATION• PROJECT• PROJECTMANAGEMENTNEED AND IMPORTANCE OF PROJECT • NEED AND IMPORTANCE OF PROJECTMANAGEMENT• PROJECTLIFECYCLE• PROJECTMANAGER• INTERPERSONALANDDECISIONMAKINGSKILLS• PROJECTINTEGRATIONTRANSCRIPT
•Dr. Arun Maity•Dr. Arun Maity
•Associate Professor
•BITS OFF- CAMPUS CENTRE
•KOLKATA
INTRODUCTION TO PROJECT MANAGEMENT
• EVOLUTION AND APPLICATION
• PROJECT
• PROJECT MANAGEMENT
NEED AND IMPORTANCE OF PROJECT• NEED AND IMPORTANCE OF PROJECTMANAGEMENT
• PROJECT LIFE CYCLE
• PROJECT MANAGER
• INTERPERSONAL AND DECISION MAKING SKILLS
• PROJECT INTEGRATION
EVOLUTION AND APPLICATION DEVELOPED IN THE LATE 1950’s TO AID
PLANNING AND SCHEDULING OF LARGEPROJECTS
CONSTRUCTION INDUSTRY CONSTRUCTION INDUSTRY
U.S. DEPARTMENT OF DEFENSE
AUTOMAKERS – TOYOTA, NISSAN, BMW
INFORMATION TECHNOLOGY
STEEL INDUSTRY
FERTILISER INDUSTRY
PROJECT A PROJECT IS A COMPLEX , NON ROUTINE, ONE-TIME
EFFORT LIMITED BY TIME, BUDGET, RESOURCES ANDPERFORMANCE SPECIFICATIONS DESIGNED TO MEETCUSTOMERS’ NEEDS
A PROJECT CONSISTS OF SERIES OF ACTIVITIES AND A PROJECT CONSISTS OF SERIES OF ACTIVITIES ANDTASKS THAT HAVE A SPECIFIC OBJECTIVE TO BE COMPLETED
WITHIN CERTAIN SPECIFICATIONS
HAVE DEFINITE START AND END DATES
HAVE FUNDING LIMITS
CONSUME RESOURCES
MEET AND EXCEED CUSTOMERS’ NEEDS
PROJECT MANAGEMENT PROJECT MANAGEMENT INVOLVES
PROJECT PLANNING
PROJECT SCHEDULING
PROJECT MONITORING & CONTROL PROJECT MONITORING & CONTROL
PROJECT PLANNING
DEFINITION OF WORK REQUIREMENTS
DEFINITION OF QUANTITY OF WORK
DEFINITION OF RESOURCES NEEDED
PROJECT SCHEDULING LIST OF ACTIVITIES TO BE COMPLETED ACTIVITY RELATIONSHIPS GANTT CHARTS CRITICAL, NON-CRITICAL ACTIVITIES, MILESTONES CRITICAL, NON-CRITICAL ACTIVITIES, MILESTONES RESOURCE LOADING, LEVELLING, ALLOCATION
PROJECT MONITORING & CONTROL TRACKING PROGRESS COMPARING ANALYZING IMPACT MAKING ADJUSTMENTS TIME, COST, QUALITY CONTROL
NEED AND IMPORTANCE OF PROJECT MANAGEMENT
ABILITY TO PLAN, IMPLEMENT AND MANAGEACTIVITIES
RESULT-ORIENTED MANAGEMENT STYLES
COMPRESSION OF PRODUCT LIFE CYCLES COMPRESSION OF PRODUCT LIFE CYCLES
GLOBAL COMPETITION
KNOWLEDGE EXPLOSION
CORPORATE DOWNSIZING
INCREASED CUSTOMER FOCUS
MULTI-PROJECT ENVIRONMENT
COMPRESSION OF PRODUCT LIFE CYCLE
SHORTENING OF PRODUCT LIFE CYCLE
TIME TO MARKET FOR NEW PRODUCT WITHSHORTER LIFE CYCLESSHORTER LIFE CYCLES
SIX MONTH PROJECT DELAY CAN RESULT IN 33%LOSS IN PRODUCT REVENUE SHARE
GLOBAL COMPETITION
CHEAPER AND BETTER PRODUCTS AND SERVICES
USE OF QUALITY MANAGEMENT PRACTICES ANDCONTINUOUS IMPROVEMENT
KNOWLEDGE EXPLOSION
INCREASE COMPLEXITY OF PROJECTS BECAUSE OFADVANCED TECHNOLOGIES
COMPLEXITY IN MATERIALS, SPECIFICATIONS, CODES, COMPLEXITY IN MATERIALS, SPECIFICATIONS, CODES,AESTHETICS, EQUIPMENT AND REQUIRED SPECIALISTS
CORPORATE DOWNSIZING
NECESSITY OF DOWNSIZING OR RIGHTSIZING
NECESSITY OF CORE COMPETENCIES FOR SURVIVAL
PROJECT MGMT REPLACING MIDDLE MANAGEMENT
OUTSOURCING OF SIGNIFICANT SEGMENTS OFPROJECT WORK
INCREASED CUSTOMER FOCUS
CUSTOMER : SATISFACTION, DELIGHT, SURPRISE
NEEDS CUSTOMIZED PRODUCTS AND SERVICES
MULTIPROJECT ENVIRONMENT MULTIPROJECT ENVIRONMENT
SHARING AND PRIORITIZING RESOURCES
RISK MANAGEMENT
PROJECT MANAGEMENT IS BEST SUITED FORBUSINESSES REQUIRING ACCOUNTABILITY,FLEXIBILITY, INNOVATION, SPEED ANDCONTINUOUS IMPROVEMENT
PROJECT DRIVEN ORGANIZATION ALL WORK IS CHARACTERIZED THROUGH
PROJECTS WITH EACH PROJECT AS A SEPARATECOST CENTER HAVING ITS OWN PROFIT ANDLOSS STATEMENTLOSS STATEMENT
NON-PROJECT DRIVEN ORGANIZATION
PROJECTS EXIST MERELY TO SUPPORT THEPRODUCT LINES OR FUNCTIONAL LINES
PROFIT AND LOSS ARE MEASURED ON VERTICALOR HORIZONTAL LINESOR HORIZONTAL LINES
PRIORITY RESOURCES ARE ASSIGNED TOREVENUE PRODUCING FUNCTIONAL LINEACTIVITIES RATHER THAN THE PROJECTS
LIMITATIONS OF NON-PROJECT DRIVEN ORGANIZATIONS
PROJECTS MAY BE FEW AND FAR BETWEEN NOT ALL PROJECTS HAVE THE SAME PROJECT
MANAGEMENT REQUIREMENTS EXECUTIVES DO NOT HAVE SUFFICIENT TIME TO
MANAGE PROJECTSMANAGE PROJECTS PROJECTS TEND TO BE DELAYED BECAUSE
APPROVALS MOST OFTEN FOLLOW VERTICAL CHAINOF COMMAND
PROJECT STAFFING IS ON A LOCAL BASIS HEAVY DEPENDENCE UPON SUBCONTRACTORS AND
OUTSIDE AGENCIES FOR PROJECT MANAGEMENTEXPERTISE
PROJECT LIFE CYCLE DEFINING
GOALS
SPECIFICATIONS
TASKS
RESPONSIBILITIES
PLANNING SCHEDULES
BUDGETS
RESOURCES
RISKS
STAFFING
EXECUTING STATUS REPORTS CHANGES / REVISIONS QUALITY FORECASTS FORECASTS
DELIVERING DELIVERING THE PROJECT PRODUCT TO THE
CUSTOMER REDEPLOYING PROJECT RESOURCES TRAIN CUSTOMER TRANSFER DOCUMENTS RELEASE STAFF LESSONS LEARNED
LIFE CYCLE PHASES ENGINEERING
START UP
DEFINITION
MAIN
TERMINATION
MANUFACTURING FORMATION
BUILDING
PRODUCTION
PHASE-OUT
FINAL AUDIT
SOFTWARE DEVELOPMENT CONCEPTUAL PLANNING DEFINITION AND DESIGN CODE INTEGRATION / TESTING INTEGRATION / TESTING CONVERSION MAINTENANCE
CONSTRUCTION PLANNING, DATA COLLECTION AND PROCEDURES STUDIES AND BASIC ENGINEERING MAJOR REVIEW DETAIL ENGINEERING CONSTRUCTION TESTING AND COMMISSIONING
NEW PRODUCT INTRODUCTION FEASIBILITY STUDY
MARKET SURVEY
COST ESTIMATION
TECHNOLOGY ASSESSMENT TECHNOLOGY ASSESSMENT
PRODUCT DESIGN AND DEVELOPMENT
FINANCING
PROCESS PLANNING
QUALITY SPECIFICATIONS
PERSONNEL ASSIGNMENT AND TRAINING
OPERATIONS PLANNING
FACILITIES LAYOUT
SYSTEM INTEGRATION SYSTEM INTEGRATION
PRODUCTION SCHEDULING
PRODUCTION RUN
PRODUCT SHIPMENT
ROLE OF PROJECT MANAGER PROVIDE DIRECTION, COORDINATION AND
INTEGRATION TO THE PROJECT TEAM
MANAGE TEMPORARY, NON-REPETITIVEACTIVITIES TO COMPLETE A FIXED LIFE PROJECTACTIVITIES TO COMPLETE A FIXED LIFE PROJECT
MEET THE CHALLENGES OF EACH PHASE OF THEPROJECT LIFE CYCLE
MANAGE THE TENSION BETWEEN CUSTOMEREXPECTATIONS AND WHAT IS FEASIBLE ORREASONABLE
WORK WITH VENDORS, SUPPLIERS,SUBCONTRACTORS
RESPONSIBLE FOR PERFORMANCE
ENSURE APPROPRIATE TRADE-OFFS BETWEENTIME, COST AND PERFORMANCE REQUIREMENTS
INDUCING THE RIGHT PEOPLE AT THE RIGHT INDUCING THE RIGHT PEOPLE AT THE RIGHTTIME
TO ADDRESS RIGHT ISSUES AND MAKE RIGHTDECISIONS
Categories of Interactions
Superiors or Bosses
Colleagues or Peers
Subordinates or Juniors
Dealing with each category requires definite skillswhich have to be mastered if one is to rise in theorganizational hierarchy
Interaction with Superiors
Boss is always the boss, though he may not be alwaysright
There may be serious differences of opinion with theboss, but ultimately, the will or opinion or decision ofboss, but ultimately, the will or opinion or decision ofthe boss will prevail
Boss is more accountable than the subordinates and willhave to answer the consequences of his decisions andactions
Rather than be a “Yes Man” and agree with everythingthe boss says, the subordinate must definitely expresshis views and opinions for the consideration of thebossboss
If the boss chooses to ignore suggestions or overruledecisions taken by the subordinate, he does so at hisown discretion and risk
Certain bosses who flatly refuses to accept anysuggestions coming from the subordinates, eventhough his suggestions are basically sound andwould be interest of the organizationwould be interest of the organization
Such individuals suffer from a sense of insecurityand are afraid that implementation of thesuggestions would highlight their ownshortcomings and bring credit to the subordinatesat their own expense
What the boss forgets is that credit for achievement orgood performance first goes to the boss for his abilityto get work done
The subordinate only gets a part of the credit received The subordinate only gets a part of the credit receivedby the boss
Boss has greater access to information
By virtue of position in the organization, the boss hasgreater access to vital information affecting the well-being of the organization
Some of the decisions may appear to be ill-conceived Some of the decisions may appear to be ill-conceivedor wrong, however it is more likely that a particulardecision may be based on certain information notavailable to the subordinate
Boss is more Busy
Responsibilities of the boss are considerablygreater than those of the subordinates
The time at his disposal for dealing with particularproblem is naturally less than the time availableproblem is naturally less than the time availablewith the subordinate
Therefore it is the duty of subordinate to do hishomework well, work out options in any givensituation and then put them for consideration andfinal decision with his own recommendation
Boss is under greater pressure
By virtue of his position and responsibility, boss isunder greater pressure to meet targets anddeadlines
Some pressure is bound to get transferred down to Some pressure is bound to get transferred down tolower levels resulting in FIRING
Firing is a part of the game and has to be acceptedas such
One must not be too sensitive to such firings andmust develop a somewhat thick skin in suchmatters
On the other hand, the skin should not be so thickthat firing has no effect at all
On occasion, unpleasant talk may appear to be entirelyunreasonableunreasonable
Outcome of firing of the juniors, who, in turn, maytake it to out on their wives and children
Interaction with Colleagues
Individuals who are more or less at the same level in the hierarchy
Engineers performing shift duty and reporting to ManagerManager
Department heads reporting to the Production Manager
Functional Heads reporting to Unit Head
Project Engineers reporting to Project Managers
Project Managers reporting of Head, Projects
Feeling of cordiality, cooperation, mutual trust andatmosphere of healthy competition
This is easier said than done
Politics is an integral feature of any organization, as Politics is an integral feature of any organization, aseach individual tries to catch the eye of the boss andadvance his own cause for promotion
If the competition leads to confrontation andundermining the position of others, working isbound to suffer
Personal equations can lead to formation of Personal equations can lead to formation ofgroups that adversely affect organizationalworking
Interaction with Subordinates
An engineer in a supervisory position or a manageris responsible not only for his own actions, but alsofor the actions of all those working under hisdirection
Delegation: A successful manager once said, “I Delegation: A successful manager once said, “Inever do anything which I can get done by asubordinate”
This is an excellent way to motivate subordinatesand at the same time freeing the boss from routinematters and giving him time to concentrate onimportant issues
Delegation does not imply that the boss is absolved of responsibilityfor that actions of his subordinates, he should keep a watchful eyeover their activities and issue necessary direction.
Earn the respect of subordinates Earn the respect of subordinates It is easy to get work done if subordinates hold the boss inesteem and respect
Sound knowledge and thorough understanding of plant orprocess are vitally important
Boss should be capable of doing at least 80% of the work doneby each one of its subordinates
20% of his own work should be such that none of hissubordinates can do so effectively
Issue clear instructions Instructions have no meaning if they are vague and
likely to be misinterpreted
Some managers are in the habit of deliberately leaving Some managers are in the habit of deliberately leavinginstructions vague and then pulling juniors for notacting one way or the other
Descend to the level of subordinates Boss must express himself in a language which the
subordinates can understand
Define Jurisdiction
Areas wherein the subordinate is free to take hisown decisions according to established norms andguidelines
Boss will not be troubled with low level decisions Boss will not be troubled with low level decisions
Subordinate must have clear idea about
what he can do without informing the boss at all
what he can do first and inform later
what he can do only after getting approval
Categorize Subordinates
1. THOSE WHO WORK ON THEIR OWN INITIATIVE
2. THOSE WHO WORK ONLY AFTER RECEIVING 2. THOSE WHO WORK ONLY AFTER RECEIVING DIRECTIVES OR GUIDELINES
3. THOSE WHO DO NOT WORK EVEN AFTER RECEIVING DIRECTIVES AND GUIDELINES
Subordinate Problems areUltimately Bosses’ Problems
ANY DEFICIENCY IN WORKING HAVE TO BEREMOVED BY CONCERTED EFFORT
BOSS CANNOT GET AWAY BY SAYING THATTHESE PROBLEMS HAVE TO BE TACKLED BYJUNIOR STAFF ALONETHESE PROBLEMS HAVE TO BE TACKLED BYJUNIOR STAFF ALONE
BOSS HAS TO GET INVOLVED AND ISSUENECESSARY DIRECTIONS TO SOLVE THEPROBLEMS
IT IS THE BOSS WHO WILL HAVE TO ANSWERFOR THE WORKING OF ALL SECTIONS UNDERHIS CHARGE
Strive to become Redundant
EVERY SUPERVISOR OR MANAGER MUST STRIVETO MAKE HIMSELF REDUNDANT ANDSUPERFLUOUS
EFFORT MUST BE MADE TO EVOLVE SYSTEMSAND PROCEDURES, SO THAT WORKING IS NOTAFFECTED IN THE ABSENCE OF SUPERVISOR /MANAGER
Train supervisor totake your place
ADVANCEMENT IS EASY IF THERE ISSOMEONE WHO CAN ASSUME CHARGE OFTHE VACATED POSITION
MANAGER SHOULD TRAIN HIS MANAGER SHOULD TRAIN HISSUBORDINATES ADEQUATELY, NOT ONLY TOREDUCE HIS WORKLOAD BUT ALSO TOFACILITATE HIS OWN ADVANCEMENT AT THEAPPROPRIATE TIME
SOME MANAGERS ARE UNDULY SECRETIVE ANDHABITUALLY CONCEAL DOCUMENTS ANDINFORMATION FROM SUBORDINATES
MANY ORGANIZATIONS FORCE THEIR EMPLOYEE MANY ORGANIZATIONS FORCE THEIR EMPLOYEETO AVAIL DUE LEAVE AND DO NOT PERMIT LEAVEACCUMULATION TO A CERTAIN LEVEL
EXCELLENT PRACTICE AND SERVES TO MOTIVATE ANDTRAIN SUBORIDNATES FOR HIGHER RESPONSIBILITES
SIMULTANEOUSLY, THE BOSS RETURNS REFERESHEDAFTER LEAVE TO DO GREATER JUSTICE TO HISRESPONSIBILITIES
Be Fair and Appear to be Fair
JUSTICE MUST NOT ONLY BE DONE BUT SEENTO BE DONE
BOSS MUST BE FAIR, BUT ALSO APPEAR TO BEFAIR TO HIS SUBORDINATESFAIR TO HIS SUBORDINATES
ALL SUBORIDNATES SHOULD BE TREATED ONMERITS AS FAR AS DISTRIBUTION OFASSIGNMENTS AND PROSPECTS FORADVANCEMENT ARE CONCERNED
IT IS NATURAL TO DEVELOP LIKING ORDISLIKE FOR VARIOUS SUBORDINATES
ONE MUST NOT GET CARRIED AWAY BYSUBJECTIVE CRITERIASUBJECTIVE CRITERIA
FRIENDSHIP AND PERSONAL RELATIONSWITH SUBORDINATES SHOULD NOT ACT ASOBSTACLES TO ADVANCEMENT
THE RECOMMENDED PERSON SHOULDREDUCE THE WORKLOAD OF THE BOSS ANDMAKE HIS LIFE EASIER
DECISION MAKING
MOST PROBLEMS ADMIT MULTIPLESOLUTIONS
A CONCIOUS AND DELIBERATE DECISION HASTO BE TAKEN TO PURSUE A PARTICULARTO BE TAKEN TO PURSUE A PARTICULARCOURSE OF ACTION
IT IS UNLIKELY THAT ALL DECISIONS TAKENBY A MANAGER WOULD PROVE TO BECORRECT IN THE LONG RUN
SUCCESSFUL MANAGERS ARE THOSE WITHHIGH PERCENTAGE OF CORRECT DECISIONS
ONCE A DECISION IS TAKEN, THE MATTERDOES NOT END
DECISION SHOULD BE MONITORED TOASCERTAIN WHETHER THE DESIRED RESULTSASCERTAIN WHETHER THE DESIRED RESULTSARE BEING OBTAINED OR NOT
IN CASE OF DEVIATIONS FROM THEEXPECTED OUTCOME, THERE SHOULD BE NOHESITATION IN REVERSING THE DECISIONBEFORE THE SITUATION GETS OUT OF HAND
DECISIONS SHOULD BE QUICK AND TIMELY PROCASTINATION LEAD TO DISASTROUS
CONSEQUENCES AND AFFECTSORGANIZATIONAL EFFICIENCY
NORMS AND GUIDELINES SHOULD BE NORMS AND GUIDELINES SHOULD BEESTABLISHED SO THAT DECISION ARE TAKENAT THE LOWEST POSSIBLE LEVEL
SUFFICIENT AUTHORITY SHOULD BEDELEGATED TO THE JUNIOR LEVELS -ACTIVEINVOLVEMENT OF PERSONNEL, GOODMORALE AND FREEDOM OF BOSS FROMROUTINE DECISIONS
INTEGRATED PROJECT MANAGEMENT
FOCUSES ALL PROJECT EFFORT TOWARD THESTRATEGIC PLAN OF THE ORGANIZATION
REINFORCES MASTERY OF PROJECTMANAGEMENT AND INTER-PERSONAL SKILLSMANAGEMENT AND INTER-PERSONAL SKILLS
MAY REQUIRE RENGINEERING OF BUSINEESSMANAGEMENT PROCESS
INTEGRATION OF PROJECTS WITH STRATEGICPLAN OF THE ORGANIZATION
INTEGRATION WITHIN THE PROCESS OFMANAGING ACTUAL PROJECTS
INTEGRATION OF PROJECTS WITH STRATEGIC PLANS
NEED: STRATEGIC PLANS ARE MADE BY ONEGROUP OF MANAGERS, PROJECTS SELECTED BYOTHER AND IMPLEMENTED BY ANOTHER
INDEPENDENT DECISIONS LEAD TO CONFLICTS,CONFUSION ETC. ON UNSATISFIED CUSTOMERS
RESOURCES ARE WASTED IN NON-VALUE ADDEDACTIVITIES/PROJECTS
CHARACTERISTICS ALL THE PARTS ARE INTER-RELATED. A CHANGE
IN ONE OF THE PARTS WILL INFLUENCE THEWHOLE
VISION, MISSION, OBJECTIVES AND STRATEGIES VISION, MISSION, OBJECTIVES AND STRATEGIESNEED TO BE PREPARED CONSIDERING INTERNALAND EXTERNAL ENVIRONMENTAL FACTORS
EXTERNAL FACTORS: POLITICAL, SOCIAL,ECONOMIC AND TECHNOLOGICAL
INTERNAL FACTORS: MANAGEMENT, FACILITIES,CORE COMPETENCIES, FINANCIAL CONDITIONS
IMPLEMENTING STRATEGIES THROUGHPROJECTS
SELECTING PROPOSALS THAT MAKE LARGESTAND MOST BALANCED CONTRIBUTION TO THEAND MOST BALANCED CONTRIBUTION TO THEOBJECTIVES AND STRATEGIES
PRIORITIZING PROJECTS SO THAT RESOURCESARE ALLOCATED TO THE RIGHT PROJECTS
INTEGRATION WITHIN THE PROCESS OF MANAGING ACTUAL PROJECTS
TECHNICAL SIDE OF THE MANAGEMENTPROCESS PLANNING, SCHEDULING, CONTROLLING
SOCIO-CULTURAL SIDE OF THE PROJECT SOCIO-CULTURAL SIDE OF THE PROJECTMANAGEMENT PROCESS SHAPING A PROJECT CULTURE THAT STIMULATES
TEAMWORK AND HIGH LEVELS OF PERSONALMOTIVATION
PROBLEM SOLVING APPROACH
EFFECTIVE COMMUNICATION SESSIONS WITHSTAKEHOLDERS