Project ManagementProject Management
Merrie Phinney
Day 1: Overview of Project ManagementDay 1: Overview of Project Management
• Define Project and Project Management
• Describe the three constraints that affect project success
• Describe the main phases of the project management processes
• Establish project objectives
• Apply the management by objectives (MBO) methodology
What is a Project?What is a Project?
A project is a temporary endeavorundertaken to accomplish a unique
product or service with a defined start andend point and specific objectives that,
when attained, signify completion.PMBOK definition
PMBOK is a trademark of the Project Management Institute
What can go wrong in a Project?What can go wrong in a Project?
The major cause of project failure is not thespecifics of what went wrong, but ratherthe lack of procedures, methodology and
standards for managing the project.
PMBOK definition
PMBOK is a trademark of the Project Management Institute
5
1994 1995 1998 20000
10
20
30
40
50
60
successfailcancel
%
How can we reduce the risks?How can we reduce the risks?
How Project Management can helpHow Project Management can help
Single point of contact and accountability for theoverall success of the project
Focuses on meeting customer needs and ensuringsatisfaction
Improves performance in time, cost and technicalareas
Focuses on managing project scope and controllingchange
Helps avoid disasters by managing risks Strengthens project teams and improves internal
morale
History of Project ManagementHistory of Project Management
In 1917 Henry Gantt developed the Gantt chart as atool for scheduling work in job shops
Modern project management began with theManhattan Project (circa 1943), which led to thedevelopment of the atomic bomb
In 1958, the Navy pioneered the use of PERTnetwork charts
In the 1970s, the military began the broad use ofproject management software, as did the constructionindustry.
By the 1990s, virtually every industry uses some formof project management
What is Project Management?What is Project Management?
Project management is the application ofknowledge, skills, tools, and techniquesapplied to project activities in order tomeet or exceed stakeholder needs and
expectations from a project.PMBOK definition
PMBOK is a trademark of the Project Management Institute
The Triple ConstraintThe Triple Constraint
Scope CreepScope Creep
1. Add Time- delay the project to give you
more time to add the functionality ($)
2. Add Cost- recruit, hire or acquire more
people to do the extra work ($)
3. Cut Quality- trade off some non-essential
requirements for the new requirements ($)
QUALITY ASSURANCE AND THE SINKING OF THE LARGESTOFFSHORE OIL PLATFORM
Read this quote from a Petrobras executive, citing thebenefits of cutting quality assurance and inspection costs:
on the project that sunk into the Atlantic Ocean off the coast of Brazil in March 2001.
"Petrobras has established new globalbenchmarks for the generation ofexceptional shareholder wealth
through an aggressive and innovative programmeof cost cutting on its P36 production facility.
Conventional constraints have beensuccessfully challenged
and replaced with new paradigms appropriateto the globalised corporate market place.
Through an integrated networkof facilitated workshops,
the project successfully rejected the establishedconstricting and negative influences of prescriptiveengineering,
onerous quality requirements, and outdatedconcepts of inspection and client control.
Elimination of these unnecessary straitjackets hasElimination of these unnecessary straitjackets hasempowered the project's suppliers and contractorsempowered the project's suppliers and contractorsto propose highly economical solutions,to propose highly economical solutions,
with the win-win bonus of enhancedwith the win-win bonus of enhancedprofitability margins for themselvesprofitability margins for themselves
The P36 platform shows the shape of things to comeThe P36 platform shows the shape of things to come
in the unregulated global marketeconomy of the 21st Century.“
And now you have seen the finalresult of this proud achievement by
Petrobras.
"We can do GOOD, QUICK and CHEAP"We can do GOOD, QUICK and CHEAPwork.work.
You can have any two but not all three.
1. GOOD QUICK work won't be CHEAP.
2. GOOD CHEAP work won't be QUICK.3. QUICK CHEAP work won't be GOOD."
Project Management ProcessesProject Management Processes
Management by Objectives (MBO)Management by Objectives (MBO)ApproachApproachEstablish clear and realistic objectives
Good objectives are “clearly stated” andcontain a “measure” of how to assesswhether they have been achieved.
To be realistic, objectives must be“determined jointly” by managers andthose who perform the work.
Exercise 1: Setting Clear ObjectivesExercise 1: Setting Clear Objectives
“To have the painter paint my office apleasing color”
ContractorOffice Manager
Not only did you paintmy office walls blue, butyou painted the ceilingblue as well!
You asked me topaint the room blue,and now you’ve gota blue room.
But the ceiling is oppressive!Ceilings should never be thesame color as the walls. Theyshould always be a lighter color.
You asked for a blueroom. You’re luckyI didn’t paint thefloor blue as well.
How could I have said it?How could I have said it?
The floor and all furniture will be covered by drop clothsprior to painting each of the 4 office walls, notincluding the door, base-boards, crown molding,window frames, windows, light switches, or poweroutlets that will be masked with painters tape. Thewalls should be painted using Behr paint in SapphireBerry #550C-2 in the semi-gloss sheen, using anylon/polyester 3” inch wide brush using a verticalbrush stroke, applying two coats of paint, allowing 16hours between coats, and be completed by Friday,October 6 including removal of all protective tape.
“I know that’s what I said, but it’s not what I meant!”
Key MessagesKey Messages
A Project is a unique endeavor directed towardachieving a specific result; it is temporary, with abeginning and an end
Project management is the process of successfullycompleting a project
The triple constraints affecting project success arerequirements, time and cost (resources)
The main processes of project management areinitiation, planning, execution, control and closeout
MBO is a specific methodology used to establishrealistic objectives and to measure achievement
Reading AssignmentsReading Assignments
Case Study 1-1: The Education of Jerry; Part 1-The Project Environment
Case Study 2-1: Ralph’s Drugstore