mit32 iv102 vl1

© Gunnar Wettergren 1

MIT32Lecture 1 - Introduction to project management

Gunnar [email protected]


Agenda

Course introductionToday’s lecture (Chapter 1 & 2)

What is project managementThe projectThe role of the project managerProjects organization and the parent organization


MIT32 – Project management

Course responsibleGunnar [email protected]/6747090

7.5 HpMandatory assignment and written examination


Cont.

Textbook: Core concepts of project management (Wiley & Sons)By Mantel, Meredith, Shafer, and Sutton


How is this course structured?

LecturesTutoring sessionsFinal written examination


How does it all fit together

-Planning-Budget

-People

-Scheduling-Resources

-Monitoring-Control Termination

+ Projectmodels =


What is a project?

“A temporary endeavor undertaken to create a unique product or service”

Source: A Guide to the Project Management Body of Knowledge, Project Management Institute Standards Committee, p. 167, 1996

In other words IT’S A RISK


Why the emphasis on project management?

Many tasks and ideas do not fit into the organizationWe need to be able to assign responsibility and authority to achieve organizational goals


How are we doing so far?In 1998, the Financial Review reported that only 13% of companies are very happy with their return on technology investmentsIn 53 out of 59 industries, increased IT spending did not result in a corresponding jump in productivity (McKinsey, 2002)

~ 50% of IT projects fail (Standish Group, 2002)

60% of the surveyed companies in 2002 had little or no formal training in project management (Organizational Project Management Baseline Study, Interthink Consulting,

September 2002)


Characteristics of a project

UniqueHas a specific start and end dateTemporary organizationCan be structured and managed separate from the organization as a whole


PM vs. general management

PM’s deal with short term development projects while general managers is in charge of running the day-to-day activitiesLittle time to develop and improve the human capital


The three goals of a project

What is managed in a project? Time (Schedule)Cost (Budget)Performance (Goal attainment)


Performance, cost, and time targets


Project lifecycles

It measures the completion of a project as a function of either time or resourcesIt is important for you to understand different cycles and different phases of a cycle since it affects how you should manage


Example of project life cycles (1)


Example of project life cycles (2)


Selecting projects

What guides the selection process?Is the project potentially profitable, will it yield ROI?Does the firm in question have the knowledge or manpower to carry out such a projectIn line with the firms strategic plan?Can we do it in the set time frame?


Selection methods

Nonnumeric selection methodsThe Sacred cowThe operating/competitive necessityComparative benefits

Numeric selection methodsFinancial assessment methodsScoring method


Why is it important to understand the selection process?

Knowing the reasons why a project is started will help you manage the project and help you understand the role of the project It could potentially help you get your project proposal approved


Aggregate project plan

The ROI selection criteria used by many companies to select which projects to fund is insufficientIn order to address the problem of choosing the right projects Wheelwright/Clark developed a model called the aggregate project plan


Aggregate project plan (2)

There are four different categories usedDerivative projects – Incremental/Minor Improvements to existing products /processesBreakthrough projects – Seek to develop a new generation of productsPlatform projects – The creation of a platform that can serve as a foundation for other productsR&D Projects – The development of new knowledge


Aggregate project plan (3)


Being a PM – What does it mean?

Using a definition from the book “It is the PM’s job to make sure that the project is properly planned, implemented, and completed”


Roles and responsibilities of a project manager

One could easily claim that a PM is a man or woman with many different faces. The different roles that you might be forced to handle during a project are almost endlessWith these roles come different responsibilities and duties


Roles

FacilitatorCommunicatorVirtual PMSpeaking partnerProblem solverCustomer relationshipsStakeholder managementEtc….


Responsibilities/Duties

ResourcesFighting fires and obstaclesLeadership and making trade-off’sNegotiation, solving conflicts, and persuasion


More on why we use projects

Cuts down time-to-marketProducts today require special knowledge, teams can be formed and quickly disbandedTechnology impact and the rate and magnitude of the changesLack of confidence in upper management ability to cope with large scale changes


How does the project fit into the organization?

What is the connection between the project and the organization?Does it affect us?How should the relationship be handled?


The interface between the project and the organization

The basic problem for most PM’s is the interface between the organization and the project. PM’s have no control over that interfaceThe resources used in a project comes from the parent organization where managers running the day-to-day operations have “power” over resources


Pure project organization


Advantages and disadvantagesAdvantages

Effective and efficient for large projectsResources available as neededBroad range of specialistsshort lines of communication

DrawbacksExpensive for small projectsSpecialists may have limited technological depthMay require high levels of duplication for certain specialties


Functional project organization


Advantages and disadvantages

Advantagestechnological depth

Drawbackslines of communication outside functional department slowtechnological breadthproject rarely given high priority


Matrix project organization


Advantages and disadvantagesAdvantages

flexibility in way it can interface with parent organizationstrong focus on the project itselfcontact with functional groups minimizes problemsability to manage fundamental trade-offs across several projects

Drawbacksviolation of the Unity of Command principlecomplexity of managing full set of projectsconflict


Summary and questions lecture 1

mit32 iv102 vl1

Education

address gunnar wettergren

method gunnar wettergren

gunnar wettergren planning

duties gunnar wettergren

persuasion gunnar wettergren

sutton gunnar wettergren

project unique

project models