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Project ManagementDr.Anbang QiProf.of International Business School of Nankai UniversityThe Resources of the Materials1.The history of project management There are three different times Old times-before 1940s Traditional times-1940s-1980s Modern times-1980s till now There are two main association:PMI-Project Management Institute IPMA-International Project Management Association,before called Internet.Chapter 1 Introduction2.Modern Project Management There are two characteristics for MPM Enlarged management area-from 3 to 9 areas Expended to all projects not only the construction and engineering projects.Become a discipline of Management Operation or routine management Project and program management Chapter 1 Introduction3.The importance of learning MPM All things start with project and then may or may not transit into operations.The project become the great means for a company to make profit in the knowledge economy since all innovations are realized through projects.The top management should deal with exceptions and that need PMP.Chapter 1 IntroductionChapter 1 Introduction4.The Definition of Project Project temporary endeavor undertaken to create a unique product or service Has a definite beginning and end and interrelated activities Under the restriction of resources For some purpose of a organization or even a person.5.Typical Projects R&D projects BPR and Reorganization Information system integration Construction and Engineering Scientific research and Dissertation Olympic Games and other sports games Every kind shows and performanceChapter 1 IntroductionChapter 1 Introduction6.The Characteristics of a Project Products or Service are unique characteristics are progressively elaborated Progressively:proceeding in steps Elaborated:worked with care and detail The work is temporary.Time limited There are resource restriction.7.The Definition of Project Management Project Management is the overall planning,control and coordination of project from inception to completion.Project Management focus on completing project on-time,within the allotted budget and defined scope,and satisfying the required quality standard.Chapter 1-IntroductionChapter 1-Introduction8.The Methods and Tools of PM Project Management should apply of knowledge,skills,tools and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a defined project balancing and integrating the following:Scope,time,cost,and quality Stakeholders expectations Requirements(needs)vs.unidentified requirements(expectations)Chapter 1-Introduction9.The difference between Program and Project Programs adopt new set of objectives and continue to work;Projects cease when declared objectives have been attained Programs are groups of projects managed in a coordinated way to obtain benefits not available from managing the projects individually Most programs have elements of ongoing operations Series of repetitive or cyclical undertakings Projects is no ongoing operation,are often divided into“subprojects”for more manageability Often contracted out to external organizations10.Project Management Body of Knowledge Project integration management Project scope management Project time management Project cost management Project quality management Project human resource management Project communication management Project risk management Project procurement managementAll these make up a knowledge system of PMChapter 1-IntroductionProject Cost Management,Project Time Management,Project Quality Management Project Risk ManagementProject Communication ManagementProject Procurement ManagementProject Integration ManagementProject Human Resource ManagementProject Scope ManagementThe System of PMBOK General management knowledge and practices Application area knowledge and practices Generally accepted PM knowledge and practices PMBOKThe relationship of the knowledgeChapter 2 Project Management Context1.Project Life CycleProject Life Cycle defines or tells:The phases of the project(time)The work performed in each phase(work)The input and output of each phase(result)The milestone of each phase(end sign)Common Characteristics of Project Life Cycles:Cost and Staffing levels are low at start and move higher towards the end Probability of successfully completing project is low at beginning,higher towards the end as project continues Stakeholder influence is high at the beginning and progressively lowers as project continuesPhase 1Phase 2Phase 3Phase 4Project”go”decisionMajor contract let Installation substantially complete Full operationFeasibility studysuggestion feasibility pre-designapprove Planning&Designtech-designcost estimateschedulingcontractingplan detailsExecutionfabricationconstructioninstallationtrialTurnover final testingmaintenance Percentage Complete 100%Project Life Cycle of DOD of USA for Acquisition Milestone 2Development ApprovalMilestone 0Concept Study ApprovalMilestone 1ConceptDemonstration Approval Milestone 3Production Approval Milestone 4Major Modification Approvals Concept Exploration and DefinitionDemons-tration and ValidationEngineering and Manufacturing DevelopmentProduction andDevelopmentOperation and Supporting Determi-nation of the Mission NeedPhase 1Phase 0Phase 2Phase 3Phase 4Chapter 2 Project Management Context2.Phases of a Project Project Phases are marked by the completion of a deliverable Tangible,verifiable work product Review of deliverables and approval/denial are“phase exits,stage gates,or kill points”Phases are collected into the Project Life Cycle Set of defined work procedures to establish management controlChapter 2 Project Management Context 3.Stakeholders of projects Stakeholders:individuals and organizations who are actively involved in the project Often have conflicting expectations and objectives In general,differences should be resolved in favor of the customer individual(s)or organization(s)that will use the outcome of the project Stakeholder management is a proactive task Project Mangers must determine all stakeholders and incorporate their needs into the projectChapter 2 Project Management Context 3.Stakeholders of projects Stakeholders are:Owners Sponsor Customers End User Contractor(Performing Organizations)Supplier Project Managers Project Teams Society and Citizens Others:government agent and so onOwnersProject ManagerSupplierEnd UserCustomerSponsorSociety,CitizensProject TeamsOthers The relationship of stakeholders of projects4.The Hierarchy of Project Organization ManagementChapter 2 Project Management ContextStakeholders ManagementPerforming Org.Mana.Project Team Mana.Project Manager Chapter 2 Project Management Context5.Organizational Systems The organizational system of Performing Organization is an very important environment factor for a project.Project based vs.Non-Project Based Project Based derive revenues from performing projects for others(consultants,contractors),“management by projects”Non-Project Based seldom have management systems designed to support project needs(manufacturing,financial services)Chapter 2 Project Management Context5.Organizational Systems Organizational Cultures and Styles:Entrepreneurial firms more likely to adopt highly participative Project Manager accept higher risk/reward Hierarchical firms less likely to adopt participative Project Manager take fewer risksChapter 2 Project Management Context6.Organizational Structures Functional Organization More emphasis on functions,Specialists 1 supervisor No career path in PM Projectized Organization Efficient Organization Lack of Professionalism Effective Communication,Duplication of functions Matrix Organization Visible Objectives PM Control More than 1 boss,Potential for conflict More support More complex to control Tough resource allocation,Information distribution Coordination Policies&ProceduresSTAFFSTAFFSTAFF PLine DepartmentLine DepartmentChief ExecutiveFunctionalManager Line Depart.DirectorFunctionalManagerSTAFFSTAFF PSTAFF PSTAFF PSTAFFSTAFF PSTAFFSTAFF PSTAFF PProject CoordinationFunctional and Liner OrganizationSTAFFSTAFFSTAFFSTAFFChief ExecutiveProject ManagerFunctionalManagerProject ManagerProject ManagerSTAFFSTAFFSTAFFSTAFFSTAFFSTAFFSTAFFSTAFFSTAFFSTAFFSTAFFSTAFFProject CoordinationProjectized OrganizationChief ExecutiveLine DepartmentLine Depart.DirectorLine DepartmentFunctionalManagerFunctionalManagerFunctionalManagerProject ManagerProject ManagerProject ManagerSTAFF PSTAFF PSTAFF PSTAFF PSTAFF PSTAFF PSTAFF PSTAFF PSTAFF PProject CoordinationMatrix OrganizationFunctionalManagerLine Depart.DirectorLine DepartmentLine DepartmentFunctionalManagerSTAFF PChief ExecutiveComposite OrganizationFunctionalManagerManager of Project Managers Project ManagerProject ManagerProject ManagerSTAFF PSTAFF PSTAFF PSTAFF PSTAFF PSTAFF PSTAFF PSTAFF PProject CoordinationProject CoordinationChapter 2 Project Management Context7.Project Management Skills General Business Management(consistently producing results expected by stakeholders)Leading(establishing direction,aligning resources,motivating)Communicating(clear,unambiguous,and complete)Negotiating(conferring with others to reach an agreement)Problem Solving(definition and decision making)Distinguish causes and symptoms Identify viable solutions Influencing Organization(understanding power and politics)Chapter 2 Project Management Context8.Socioeconomic Influences Standards document approved that provides common,repeated use,rules and guidelines Regulations document that identifies products,services or characteristics Standards often become actual regulations Internationalization Cultural InfluencesChapter 3 Project Management Processes Project Management requires active management of Project Processes Series of actions that achieve a result Project Management Processes Describing and organizing the work Product-Oriented Processes Specifying and creating the product1.The Processes of Project Life Cycle Production oriented process Management oriented process Total Project Life CycleProduction oriented processManagement oriented processTurnoverProject life cycle including the operation phasesGeneral project LCOperation phasesChapter 3 Project Management ProcessesChapter 3 Project Management Processes2.Management Process Groups:Initiating processes:recognizing a project or phase should begin Planning processes:devising and maintaining a workable plan Executing processes:coordinating resources to execute the plan Controlling processes:ensuring project objectives are met;monitoring,correcting and measuring progress Closing processes:formalized acceptanceChapter 3 Project Management Processes3.The Relationship of Process Groups Process Groups are linked by the results each produces Process Groups are overlapping activities with various levels of intensity Process Group interactions cross phases “rolling wave planning”Individual processes have inputs,tools and techniques,and outputs(deliverables)Links Among Process Groups in a PhaseClosing ProcessesControlling ProcessesExecuting ProcessesPlanning ProcessesInitiating ProcessesChapter 3 Project Management ProcessesClosing ProcessesControlling ProcessesExecuting ProcessesPlanning ProcessesInitiating ProcessesClosing ProcessesControlling ProcessesExecuting ProcessesPlanning ProcessesInitiating ProcessesDesign PhaseImplementation PhaseInteraction between Phases of a projectChapter 3 Project Management Processes控制过程Planning ProcessExecuting ProcessClosing ProcessInitiating ProcessLevel of ActivityPhase StartPhase FinishOverlap of Process Groups in a Phase of a projectControlling ProcessChapter 3 Project Management ProcessesChapter 3 Project Management Processes 4.The Initiating Processes Committing the organization to begin a project or a phase of a project Decision,Initiation,High-level planning,Charter Making5.Planning Processes Core Planning Scope Planning written statement Scope Definition subdividing major deliverables into more manageable units Activity Definition determine specific tasks needed to produce project deliverables Activity Sequencing plotting dependencies Activity Duration Estimating determine amount of work needed to complete the activities(continued)Chapter 3 Project Management ProcessesChapter 3 Project Management Processes5.Planning Processes Core Planning Schedule Development analyze activity sequences,duration,and resource requirements Resource Planning identify what and how many resources are needed to perform the activities Cost Estimating develop resource and total project costs Cost Budgeting allocating project estimates to individual work items Project Plan Development taking results from other planning processes into a collective documentChapter 3 Project Management Processes5.Planning Processes Facilitating(Planning)Processes Quality Planning standards that are relevant to the project and determining how to meet standards Organizational Planning identify,document,and assigning project roles and responsibilities Staff Acquisition obtaining the human resources Communications Planning determining rules and reporting methods to stakeholders(continued)Chapter 3 Project Management Processes5.Planning Processes Facilitating(Planning)Processes Risk Identification determining what is likely to affect the project and documenting these risks Risk Quantification evaluating risks and interactions to access the possible project outcomes Risk Response Development defining enhancement steps and change control measures Procurement Planning determining what to buy and when Solicitation Planning documenting product requirements and identifying possible sourcesChapter 3 Project Management Processes5.Planning Processes The order of planning events:Scope Statement Create Project Team Work Breakdown Structure WBS dictionary Finalize the team Network Diagram Estimate Time and Cost Critical Path Schedule Budget (continued)5.Planning Processes The order of planning events(continued)Procurement Plan Quality Plan Risk Identification,quantification and response development Change Control Plan Communication Plan Management Plan Final Project Plan Project Plan Approval Kick offChapter 3 Project Management ProcessesChapter 3 Project Management Processes6.Executing Processes Project Plan Execution performing the activities Complete Work Packages Information Distribution Scope Verification acceptance of project scope Quality Assurance evaluating overall project performance on a regular basis;meeting standards Team Development developing team and individual skill sets to enhance the project Progress Meetings(continued)Chapter 3 Project Management Processes6.Executing Processes Information Distribution making project information available in a timely manner Solicitation obtaining quotes,bids,order,proposals as appropriate Source Selection chooseing appropriate suppliers Contract Administration managing vendor relationshipsChapter 3 Project Management Processes7.Controlling Processes To regularly measure project performance and to adjust project plan Take preventive actions in anticipation of possible problems Overall Change Control coordinating changes across the entire project plan Scope Change Control controlling“scope creep”Schedule Control adjusting time and project schedule of activities(continued)Chapter 3 Project Management Processes7.Controlling Processes Cost Control managing project budget Quality Control monitoring standards and specific project results;eliminating causes of unsatisfactory performance Performance Reporting status,forecasting,and progress reporting schedule Risk Response Control responding to changes in risk during the duration of the projectChapter 3 Project Management Processes8.Closing Processes Administrative Closure generating necessary information to formally recognize phase or project completion Contract Close-out completion and delivery of project deliverables and resolving open issues Procurement Audits Product Verification Formal Acceptance Lessons Learned Update Records Archive Records Release TeamChapter 3 Project Management Processes9.The Skills for Process of Groups Influencing the organization Leading Problem Solving Negotiating Communicating Meetings Project Selection Techniques Comparative Approach(similar projects)Constrained Optimization(mathematical approach)Chapter 3 Project Management Processes10.Customizing Process Integration Not all of the processes will be needed on all projects,and not all of the interactions will apply to all projects.Key aspect of scope verification is customer acceptance Remember that only 26%of projects are succeed1.Project Scope Management It is the processes required to ensure that the project includes all,and only,work required It is used to define what“is/is not”included in the project The project scope shows the work that must be done and measured against project plan The product scope defines features and functions included in the product or service,and that is measured against requirements It is primarily concerned with defining and controlling what is or is not included in the project.Chapter 4 Project Scope ManagementProject Scope ManagementDefined project scopeOwners expectationActual resultChapter 4 Project Scope ManagementThe philosophy of project scope management 1.Project Scope Management There are 5 project scope management processes.They are:1.Initiation-committing the organization to begin the next phase of the project.2.Scope Planning-developing a written scope statement as the basis for future project decisions.3.Scope Definition-subdividing the major project deliverables into smaller,more manageable components.4.Scope Verification-formalizing acceptance of the project scope.5.Scope Change Control-controlling changes to project scope.Chapter 4 Project Scope Management1.Project Scope Management These processes interact with each other and with the processes in the other knowledge areas as well.Each process may involve effort from one or more individuals or groups of individuals based on the needs of the project.Each process generally occurs at least once in every project phase.Chapter 4 Project Scope Management2.Initiation Process A process of formally recognizing that a new project exists,or an existing project continue to next phase It involves feasibility study,preliminary plan,or equivalent analysis Authorized as a result of:Market Demand,Business Need;Customer Request,Technological Advance;Legal Requirement or othersChapter 4 Project Scope Management2.Initiation Process Inputs:Product Description characteristics of the product/service that the project was to create Less detail in early phases,more comprehensive in latter Initial product description is usually provided by the buyer Strategic Plan supportive of the organizations goals Project Selection Criteria defined in terms of the product and covers range of management concerns(finance,market)Historical Information results of previous project decisions and performance should be consideredChapter 4 Project Scope Management2.Initiation Process Tools&Techniques Project Selection Methods:Benefit measurement models comparative approaches,scoring models,economic models Constrained operation models programming mathematical Decision models generalized and sophisticated techniques Expert judgment Business Units with specialized skills Consultant Professional and Technical Associations Delphi TechniqueChapter 4 Project Scope Management2.Initiation Process Outputs Project Charter formally recognizes project,created by senior manager,includes:Business need/Business Case Product description&title Signed contract Project Manager Identification&Authority level Senior Management approval Projects Goals and Objectives Constraints factors that limit project management teams options Assumptions factors that are considered true for planning purposes.Involve a degree of risk(continued)Chapter 4 Project Scope Management3.Scope Planning Scope Planning a process of developing a written statement as basis for future
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