prmn6210 2014 (lu 1 & 2)pdf
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PROJECT MANAGEMENT LU 1 & 2 Class NotesTRANSCRIPT
PRMN6210 - 2014
Trudi Schuin-Dorfling
PROJECT MANAGEMENT
All text & information taken & adapted from Project Management Techniques by Rory Burke (2nd Edition)
Assignment 21 Oct
TEST 03 SEPT
AEGROTAT TEST 29 SEPT
EXAM 11 NOV
IMPORTANT DATES:
GETTING TO KNOW YOU
WHAT IS YOUR NAME?
WHAT ARE YOUR INTERESTS?
WHAT ARE YOUR EXPECTATIONS OF THIS SUBJECT?
ICE BREAKER
WHAT DO YOU KNOW ABOUT PROJECTS AND
PROJECT MANAGEMENT?
WHAT DO THESE BALLOONS REMIND YOU OF?
HAVE YOU EVER ARRANGED A PARTY? …………..
THEN YOU HAVE DONE A PROJECT !
LU 1 – Chapter 1 : Pages 17 - 35
INTRODUCTION TO PROJECT MANAGEMENT TECHNIQUES
LESSON 1
LU 1 - OBJECTIVES
The Definition of a project
The Definition of project management
Defining the roles of the following:
Project Sponsor
Project Manager
Project Steering Committee
Defining project success 6
DEFINITION OF PROJECT
Temporary endeavor undertaken to create a unique
product or service.
Temporary: Every project has a defined beginning
& end.
Unique: A produce or service is different in some
way to distinguish it from similar products /
services.
7
• A project is only performed once.
• A project is a multi-task job that has performance,
cost, time & scope requirements according to schedule.
• Seeks solution to problem or need.
Page 18
PROJECTS
Characteristics / Attributes of Projects:
Client & Sponsors
Stakeholders
Life Cycle (Start & Finish)
Charter
Project Manager - 1 person responsible
Teams / Team Work / Team Roles
Scope of work
Schedule - CPM
Budget – associated with cash flow & WBS
Use resources – Teams needing co-ordination
Procurement
Quality
Risks 8
Page 18 -19
Lets review definitions on pages 18 - 19
TYPES OF PROJECTS
9
1 of 8 Construction & Engineering Projects:
Construction of houses, buildings, bridges, dams or power
stations. Usually Unique & use temporary workforce & offices.
Page 20
2 of 8 Military & Aerospace Projects :
The application innovative technology in the construction of
warships, tanks, fighter aircraft and many other armoured
platforms. Large complex projects with lots of R&D.
10
TYPES OF PROJECTS Page 20
3 of 8 Offshore & Petrochemical Projects :
Search & large scale refinement of new energy sources.
Safety standards are of large concern due to flammable items.
11
Page 21 TYPES OF PROJECTS
4 of 8 Information technology (IT) & Computer Projects:
New hardware and software application development as well
as networks. High cost & often over budget & late schedule.
Did you know that more than 98 % of all IT projects are never
cancelled even though they are over budget & are late in finishing –
do you know why?
Page 21 TYPES OF PROJECTS
5 of 8 Product development Projects :
New consumer products to meet market demands which
includes design & development which is fast-tracked to get
product to market before competitors.
TYPES OF PROJECTS Page 22
6 of 8 Advertising & marketing Projects :
Launch of newly developed products usually with advertising & campaigns. This happens with new product releases to consumers.
..\..\Videos\Funny video - Sports drink.wmv
..\..\Videos\FUNNY VIDEO - Levis.mpe
..\..\Videos\Funny Video's - Astra Dog ad.wmv
..\..\Videos\Funny Video's - Bud...Ad.wmv
..\..\Videos\GVOW_3986_33415.wmv
..\..\Videos\Real Men don't complain - Pepsi Max.wmv
..\..\Videos\Project Management\Most creative Ad ever.mp4
..\..\Videos\Project Management\How the Internet Is Changing Advertising.mp4
14
TYPES OF PROJECTS Page 22
7 of 8 Bank Projects:
Launch of newly developed financial products.
When introducing a new mortgage product for a bank, it would
involve the project of co-ordinating staff training, IT systems,
brochures at the banks as well as advertising, marketing &
launching the financial products to the market or consumers.
15
TYPES OF PROJECTS Page 22
8 of 8 Events Projects:
Organising sport, fashion, exhibition, conventions & music
events. Often temporary 1 or 2 day events. Stressful!
TYPES OF PROJECTS Page 23
WHAT IS PROJECT MANAGEMENT
17
PMBOK defines project management as the
application of knowledge, skills, tools & techniques to
project activities in order to meet stakeholders needs
& expectations as well as the requirements of a
project.
AMBOK: The application of processes, methods,
knowledge, skills & experience to achieve project
objectives.
Projects also require special project management
techniques – these are as follows:
Page 24
PROJECT MANAGEMENT TECHNIQUES
18
Characteristics of Project Management:
Project Charter
Tools & Techniques
Project Plan
Project Management process
Project Organization Structure
Project Methodology
Lets review page 24 for the details of these.
..\..\Videos\Project Management\Project Management Explained
Simply.mp4 3 Minutes
Page 24
10 KNOWLEDGE AREAS OF PMBOK
19
1 of 10 – Scope Management
The process of DEFINING & CONTROLLING what is included in the project together with any scope changes to meet the client’s & stakeholders objectives.
Scope refers to ALL THE WORK that is required to complete a project successfully.
..\..\Videos\Project Management\Defining Scope for Your Team_Project - Corporate Trainer_Keynote Speaker Dana Brownlee.mp4 4 minutes
PMBOK: Project Management Body Of Knowledge
describes project management under the following
10 knowledge areas:
Page 25
9 KNOWLEDGE AREAS OF PMBOK
20
2 of 10 – Time Management
Activities are sequenced in an optimal order to achieve the project completion in the QUICKEST TIME possible through
Activity Definition ~ Activity Sequencing ~ Duration Estimation ~ Schedule development & time control.
3 of 10 – Cost Management
Projects are planned according to BUDGETS. Projects need to be completed within this constraint through
Cost Estimating ~ Cost Budgeting ~ Cash flow &
Cost Control.
Page 25
9 KNOWLEDGE AREAS OF PMBOK
21
4 of 10 – Quality Management
QUALITY is closely related to cost.
Ensure project will satisfy the need though:
Determining the Required condition ~ Quality Planning ~ Assurance, Control & Continuous Improvement.
..\..\Videos\Project Management\cost of poor quality.mp4.mp4 Minutes
5 of 10 – Human Resources Management
PEOPLE carry out projects. People are unpredictable & often unreliable, need to find most effective people to do the project through:
Organizational Planning ~ Staff Acquisition ~ Team Development.
Page 25
9 KNOWLEDGE AREAS OF PMBOK
22
6 of 10 – Communications Management
COMMUNICATION is key to good management. Ensures proper collection & dissemination of project info by:
Communication Planning ~ Information Distribution ~ Project Meetings ~ Progress Reporting & Administrative closure.
7 of 10 – Risk Management
The future is UNCERTAIN & we need to identify, quantifying & respond to RISKS through
Controlling the Risk Management Plan & being prepared for disaster recovery – have contingency plans.
Page 25
9 KNOWLEDGE AREAS OF PMBOK
23
9 of 10 – Integration Management
INTEGRATES the 3 main project management processes of Planning, Execution & Control as well as coordinating the elements from the other knowledge areas.
8 of 10 – Procurement Management
ACQUIRE goods & services from outside suppliers through
Procurement Planning ~ Solicitation ~ Source Selection ~ Contract Administration & Contract Closure.
Page 25
10 of 10 – Project Stakeholder Management
Identify key stakeholders & determines their NEEDS & EXPECTATIONS – develop strategies to involve them in decision making process
24
Role of the Project Sponsor Page 28
The role of the project manager is our main focus, but in small projects the project manager & project sponsor is often the same person, however on large projects their roles are distinctly different.
Lets review the table on pages 28 – 29 establish the difference in their roles.
AMBOK Definition:
1. The project sponsor is the person or body for whom the project is undertaken. (primary risk taker)
2. The individual representing the sponsoring body to whom the project manager reports.
3. A person or organization providing funds for the project.
25
Please use your devices to search on the internet for the role of the project manager.
The project manager's role in a nutshell is the overall responsibility for the successful planning, execution, monitoring, control and closure of a project.
http://www.projectsmart.co.uk/role-of-the-project-manager.html
A project manager is the person who has the overall responsibility for the successful initiation, planning, design, execution, monitoring, controlling and closure of a project.
http://www.projectsmart.co.uk/the-role-of-the-project-manager.html
Project managers can have the responsibility of the planning, execution and closing of any project, typically relating to construction industry, architecture, Aerospace and Defence, computer networking, telecommunications orsoftware development.
http://en.wikipedia.org/wiki/Project_manage
26
Role of the Project Manager
PMBOK Definition:
The project manager is the person assigned by the performing organization to lead the team that is responsible for achieving the project objectives.
Page 30
He is the single point of responsibility who integrates & co-ordinates all contributions & guides them to successful completion of the project.
Lets review pages 30 – 31 for the desirable project manager attributes & duties.
27
Role of the Project Steering Board Page 32
The project steering board usually consist of a small group of eminent professionals who have a wealth of knowledge & experience in the field of the company & the disciplines of the project, this enables the to foresee pitfalls & offer impartial advice on how to make the project successful.
These board members are appointed by the CEO & or board of directors & work in conjunction with portfolio managers, project sponsor & project manager.
Lets review pages 32 – 33 this details how the steering
board represents the interests of the key players in a project.
28
Project Success Page 34
The main purpose of a company & a project is to be successful. The media is quick to portray projects that are late or over budget as a failure but not all are failures.
From the project managers perspective the project success relates to deliverables:
1. Was the project delivered on time?
2. Within the set budget?
3. At the required quality?
From the project sponsors perspective the success of the project is related to:
1. Were benefits realized as set out in the business case
2. Quantifiable benefits: profit, improved brand image, increased sales etc.
29
RE-CAP = Summary Chapter 1
Discussed what you know about projects – turns out you DO KNOW something!
Defined what is a Project
Discussed Characteristics of projects
Listed the types of projects
Defined what is Project Management
Discussed the 10 knowledge areas of Projects
Defined Role of the Sponsor
Internet searched the Role of the Project manager
Touched on the Role of the Project Steering Board
Project Success
LU 2 – Chapter 2 : Pages 36 - 49
PROJECT
LIFECYCLE
LESSON 2
LU 2 - OBJECTIVES
Sub-dividing a project into phases
Compare levels of effort at each
stage of the projects life-cycle
Explain how the level of influence &
the cost of changes vary over the
project life-cycle
31
INTRODUCTION
32
The PMBOK states…. Because projects are unique &
involve a certain degree of risk, companies performing
projects will generally use a technique that enables the
project manager to subdivide their projects into sequential
project phases to provide better management control.
Each phase is organized to produce a distinct deliverable
or result.
The challenge is to group the project work into distinct
phases to enable projects to best use company resources
in order to achieve each phase according to the project
objectives & effectively implement the corporate strategy.
..\..\Videos\Project Management\The Essential Skills Series - Project Management.mp4
Page 36
WHAT IS A PROJECT LIFECYCLE?
33
The PMBOK defines project lifecycle as the series of
phases that a project passes through from its initiation to
its closure.
APMBOK says a project lifecycle is the inter-related
phases of a project, programmed or portfolio & provides a
structure for governing the progression of work.
When project lifecycle is expanded to include the
corporate strategy phases & operation phases it is often
referred to as the PRODUCT lifecycle
See Figure 2.1 on Page 37 for Project Lifecycles
Page 37
PROJECT LIFECYCLE (4 Phases)
34
1. Project Feasibility Phase:
Establishing a need or opportunity for the product, facility or service.
A feasibility of proceeding with the project is investigated & on
acceptance of the proposal moves on to the next phase.
Input: Business case, project & phase charter
Output: Project feasibility study
2. Project Definition Phase:
Uses guidelines set by feasibility study to design the product, outline
the build-method & develop detailed schedules & plans for making or
implementing the product.
Input: Phase charter & project feasibility study
Output: Project design & project plan
Page 38
PROJECT LIFECYCLE (4 Phases)
35
3. Execution Phase:
Implements the project as per the design & project plan as developed
in the previous phase, definition phase.
Input: Phase charter, Project design & project plan
Output: Certificate of completion
4. Commissioning & Handover Phase:
This stage confirms the project has been implemented or built to the
approved design & hands the project over to client for operation.
Input: Phase charter & Certificate of completion
Output: Closeout report
See page 39 for an example actual project & its phases ..\..\Videos\FUNNY VIDEO - Coca-Cola team work.wmv
..\..\Videos\Funny Video's - Rav4.wmv
Page 38
WHAT IS PROJECT PHASES?
36
See table 2.1 on page 40 for an explanation of project
phase characteristic:
Phase deliverables
Beneficial grouping
Phase name
Sequential
Fast Track
Time Constraints
Project Control
Go / No Go Decisions
Page 40
Please review these now
PMBOK defines project phase as a collection of logically
related project activities that culminates in the completion
of one or more deliverables
LEVEL OF EFFORT
37
The project lifecycle often presents with its associated level
of effort. This is any parameter that can be measured but it
is most commonly expressed as:
MAN-HOURS or EXPENSES / costs
See Figure 2.4 on page 41 – Lets Discuss
Rate of effort clearly shows a slow build-up of effort during the initial
phase as the project is begun, designed & developed.
The build up accelerates during the construction / execution phase to a
maximum as the faces are opened up & more work can be performed.
There is a sharp decline as the work is progressively completed.
The accumulated effort is the sum of the effort to date & shows a typical
‘S curve’ profile.
Page 41
Level of Influence vs. Cost of changes
38
In the 1960s & 1970s project management tools & techniques
(CPM & Gantt charts) tended to focus on the execution phase
because of the greatest amount of effort was incurred.
But since 1980s emphasis has shifted to focused on more
front end of the lifecycle where corporate vision & values are
established to maintain competitive advantage.
See figure 2.5 it shows level of influence vs. cost of changes
Please read page 43 to understand the figure 2.5 as well as
seeing the example of ship building project & figure 2.6
showing an IT project.
Page 42 - 43
PRODUCT LIFE CYCLE
39
See page 44 – 45 for the 10 phases in a product lifecycle.
Strategy ~ Project ~ Operational stages
However if a project is a building, factory, computer system or
sports stadium, you need to look at the project from the clients
perspective – “the efficient operation of the facility & return on
investment.”
Pre-project Phase usually evolves from the work environment
or market – something that triggers the project.
..\..\Videos\NEW 2014\Top 10 Terms Project Managers Use(1).mp4
Page 44 - 45
40
RE-CAP = Summary Chapter 2
Researched Benefits of Project Management
Internet searched Project Management Associations
Discussed the Project Life-Cycle
Reviewed on all 4 phases of a Project
Defined Project Phases
Explained Characteristics of Project Phases
Level of Effort as a parameter in Projects
Level of Influence vs. cost of changes
PRODUCT Life-Cycle (Cradle to Grave)
41
Please complete at home the 3.6 Revision exercise 2, Question 2.1 in your manual on Page 64.
By consulting a variety of resources, identify at
least five (5) benefits of the project management
approach.
We will discuss next lesson – Please come prepared with your answers next class.
You will need to find this information in other sources, remember to reference your sources & web sites!
REVISION – LU 1 - ICE 1
BENEFITS OF PROJECT MANAGEMENT
42
OTHER WEB SITES: www.pmi.org/.../Value%20of%20Project%20Management_FINAL.ashx http://www.brighthubpm.com/project-planning/2350-the-top-ten-benefits-of-project-management/ www.brighthubpm.com www.mnp.ca www.westerncape.gov.za/text/2009/.../project_management_approach
Benefits of Project Management approach.docx
12 BENEFITS OF PROJECT MANAGEMENT
43
Fast Tracking Brings a product to market quickly before competitor.
Schedule Gantt Chart Communicates the what, where, when & who of a project
Project Integration Co-ordinates & integrates the contribution of all the project
participants
Reporting Interfaces Planning & controlling systems data base can be structured around
Work Breakdown Structures (WBS) or project reporting around
Organisation Breakdown Structures (OBS) for corporate reporting.
Response Time Timely response on projects is essential for effective control.
12 BENEFITS OF PROJECT MANAGEMENT
44
Trends Projects are best controlled by monitoring the progress trends of
time, cost & performance. Trends within the organisations
functional areas need to be communicated to the project
manager.
Procedures planning & control system enables the project manager to
develop procedures & work instructions which are tailored to the
specific project needs.
Project Management Office (PMO) Offers a center for project management excellence.