tm&i 2010 VII.1

technology management & innovation

introduction to project management

(iii) reviewing & operating projects

tm&i 2010 VII.2

project reviews

how to critically review and track projects

tm&i 2010 VII.3

pre-start review • is the objective clear?• do the deliverables satisfy the objective?• will the activities in the task list produce the

deliverables?• always ask: does the client really understand what

they’re getting!

• are the resources and finances adequate for the project to succeed?

periodic progress reviews• is the project running on time?• is the project running on budget?

• today we’ll look at ways of tracking both progress & budget

• problems arising, and how to fix them.

Project Appraisal

tm&i 2010 VII.4

project costing & finances

tm&i 2010 VII.5

TASK LIST DELIVERABLES OBJECTIVE

project costing

BUDGET

RESOURCEBUDGET & RESOURCE

ALLOCATION

TIMING

Project Planning

tm&i 2010 VII.6

TIME

MONEYRESOURCES

Project Culture

project

tm&i 2010 VII.7

which project resources require money?• team members ($/month)• equipment (purchase + consumables + maintainance)• materials & expenses (travel, reagents, consumables)• sub-contractors

what other (hidden) costs might be charged to a project?

• factory/office overheads (water, gas, electricity, rent)

Project Finance

tm&i 2010 VII.8

ID Task Name

1 TM&I course 20092 Evaluate a New Technology3

4 Project Start5

6 Review IP7 define search keyw ords or IPC codes

8 search patent databases

9 review hits

10 shortlist 20 - 30 relevant hits

11 map out and analyse patent landscape

12 identify potential infringements / competition

13 send results to law er for due-dilligence process

14 summarise & conclude in a brief report

15

16 Evaluate Performance (Data)17

18 Evaluate Manufacturing19

20 Compare with competition21

22 Make Recommendation23

24 Prepare Report & Presentation25

26 Presentation27

28 Project End

02/12

02/12

Mary

Mary

Mary

Mary

Mary

Mary

Mary

Mary

Sue

Harry

29/12

T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T30 Nov '09 07 Dec '09 14 Dec '09 21 Dec '09 28 Dec '09 04 Jan '10

tm&i 2010 VII.9

example project cash flow table

Project Planning

Specific Support Action Project Cash FlowProject Acrynom MedILS

First Year

Month 0 1 2 3 4 5 6 7 8 9 10 11Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07

Expenditure (Euros)Post doctoral staff costs 14,025 14,025 14,025 14,025 14,025 14,025 14,025 14,025 14,025

Computer and IT equipmentAdvertising & Courses 11,200 25,800

Travel 5,000 6,000 5,000 5,000 5,000Capital Equipment 65,388 65,388 65,388 65,388

Graduate student stipends 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000Materials and Expenses 12,000

Total 11,200 5,000 65,388 37,025 19,025 89,413 19,025 19,025 115,213 19,025 19,025 89,413

Net Project Expenditure 11,200 5,000 65,388 37,025 19,025 89,413 19,025 19,025 115,213 19,025 19,025 89,413SSA Grant to the Budget 0 0 0 0 0 0 0 0 0 0 0 0

Balance c/f -11,200 -16,200 -81,588 -118,613 -137,638 -227,050 -246,075 -265,100 -380,313 -399,338 -418,363 -507,775

tm&i 2010 VII.10

the cash flow table should include all anticipated project costs

• team• capital equipment• materials and expenses• contractors fees• allowable overheads• etc

tm&i 2010 VII.11

projected monthly c/f balance

Project Planning

-1,400,000 €

-1,200,000 €

-1,000,000 €

-800,000 €

-600,000 €

-400,000 €

-200,000 €

0 €

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 months

tm&i 2010 VII.12

the closing/final balance at month’s end can be used to plot a graph of projected cash flow for the whole project life

so what?

tm&i 2010 VII.13

-1,400,000 €

-1,200,000 €

-1,000,000 €

-800,000 €

-600,000 €

-400,000 €

-200,000 €

0 €

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39

projected

compare actual cash flow with projected

actual

tm&i 2010 VII.14

tracking actual cash flow with projected cash flow provides early warning of possible troubles with the project

tm&i 2010 VII.15

tracking time progress against the project plan

• are we on schedule?

• how do we find out?

tm&i 2010 VII.16

ID Task Name % Complete

1 TM&I course 2009 33%2 Evaluate a New Technology 33%3

4 Project Start 100%5

6 Review IP 33%7 define search keyw ords or IPC codes 100%

8 search patent databases 100%

9 review hits 25%

10 shortlist 20 - 30 relevant hits 20%

11 map out and analyse patent landscape 10%

12 identify potential infringements / competition 5%

13 send results to law er for due-dilligence process 0%

14 summarise & conclude in a brief report 0%

15

16 Evaluate Performance (Data) 90%17

18 Evaluate Manufacturing 5%19

20 Compare with competition 0%21

22 Make Recommendation 0%23

24 Prepare Report & Presentation 0%25

26 Presentation 0%27

28 Project End 0%

33%

33%

02/12

33%

100%

100%

25%

20%

10%

5%

0%

0%

90%

5%

0%

0%

0%

0%

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tm&i 2010 VII.17

Project Management

tracking Ganttestimate the % completion of each task by marks on

the Gantt bars (if using a paper copy)• or use tracking Gantt in MS-Project

draw a line through these points (shown in red)compare actual progress (red line) with your

expected progress (green line = current date)• indicates if project is behind, on, or ahead of schedule

tm&i 2010 VII.18

summary

• project resources “burn” money!• estimate project cash flow using tables• plot the projected closing / final balance vs time

• compare with actual spend to see if the project is under, on, or over- budget

• estimate & mark % task completion on the tracking Gantt chart• is the project behind, on, or ahead of schedule?

• take appropriate ACTION!

tm&i 2010 VII.19

TIME

MONEYRESOURCES

tm&i 2010 VI.20

homework task • reading assignment Week 8