Projects versus Operations. Project Management. Operations and projects differ: Examples of projects. Organizations perform work - either

Transcription

1 An Introduction Projects versus Operations Organizations perform work - either Operations, or Projects Shared characteristics of projects and operations Performed by people Constrained by limited resources Planned, executed and controlled Operations and projects differ: Examples of projects Operations are ongoing and repetitive Projects are temporary and unique A project is a temporary endeavor undertaken to create a unique product or service. temporary - definite beginning and end unique - different in some distinguishing characteristic Developing a new product or service Effecting a change in structure, staffing, or style of an organization Designing a new transportation vehicle Constructing a building or facility Running a campaign for political office Implementing a new business procedure or process 1

2 What is Project Management Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. The Challenge Meeting or exceeding stakeholder needs and expectations invariably involves balancing competing demands among: Scope, time, cost, and quality Stakeholders with differing needs and expectations Identified needs and unidentified expectations - client relations challenge Knowledge Areas (PMBOK) Relationship to other disciplines - similarities Scope Management Cost Management Communications Management Human Resources Management Time Management Quality Management Risk Management Procurement Management General management encompasses Planning Organizing Staffing Directing Controlling PM management functions overlap 2

3 Function overlap Relationship to other disciplines - differences Planning the work, schedule and budget Organizing and staffing a team to implement the work Controlling the project through tracking and monitoring progress against the plan Directing people and resources so the plan is adjusted and implemented as smoothly as possible Much of the knowledge needed to manage projects is unique or nearly unique to project management, e.g. Critical path analysis, and Work breakdown structures Primary differences between general management and PM found in the use of specialized tools and techniques. Relationship to other disciplines Why do you need project management techniques? The reason for organizing an assignment as a project is to FOCUS the responsibility, authority, and scheduling of the project in order to meet defined goals. schedule cost performance (quality) 3

4 Other major reasons to use PM techniques The two types of project management activities Clear work descriptions minimize surprises and conflicts Responsibilities and assignments for specific tasks are easily identified Reduces need for continuous reporting Progress can be measured against a plan Time limits for task completion are more easily specified Project planning and definition activities Project implementation and control activities More simply Deciding, and Doing Planning and definition activities Implementation and control activities Definition of project goals and objectives Definition of work requirements Definition of quantity of work Definition of quality of work Definition of required resources Definition of organization structure Planning of task sequencing and schedule Planning of the budget Initiating work Monitoring and tracking progress Comparing schedules and budgets to plans Analyzing impact of changes and progress Coordinating activities and people Making adjustments to the plan as required Completing the project Assessing project results 4

5 Success factors in project management Bottom line Appropriately skilled project manager Clear authority for the PM to act Commitment to the PM methodology A skilled PM team agreed to the project goals A complete project plan that is understood by all participants Objectives that contribute to the larger goals of the organization Workable tracking and monitoring methods What project management will do is provide a system for planning, documenting, organizing, and communicating. It provides a basis for better decisions Ultimately, it is the people who will make things happen and make things work, not the methodology 5

6 Management theory history Industrial revolution (prior to 1875) switch from small to large agrarian to industrial no methods or standards for measuring work psychological and physical aspects had not been studied boredom, monotony, and fatigue Captains of Industry ( ) Classical Management Theory ( ) Formation of corporate giants John D. Rockefeller Andrew Carnegie Cornelius Vanderbilt New organizations required new methods of management Businesses could no longer be run out of the home or on an informal basis There is one best way to manage dictated by a set of universal bureaucratic and scientific management principles to be applied in all situations 1

7 Scientific Management Period of Solidification (1920 to early 30 s) 1886 Henry Towne ASME paper, The Engineer as Economist, stressed engineers should be concerned with financial and profit orientation as well as their traditional technical responsibilities Frederick W. Taylor Principles of Scientific Management piece work standards scientifically define a full and fair day s standard Founding of professional management societies Management recognized as a respectable discipline Universities and colleges began to acknowledge the subject of management Previously, ASME presented most management studies 1923 American Management Association Behavioral Theory - (1931- late 40 s) Systems Approach - (1940 s) Hawthorne Studies ( ) Hawthorne Plant of Western Electric in Cicero, IL Relationship between working conditions and productivity Responsiveness to group norms Emphasis shifted from jobs to the human and social aspects of organizations the manager must understand the system and the environment no longer placed reliance on rote approaches to solving problems a way of thinking about the job of managing which provides a framework for visualizing internal and external environmental factors as an integrated whole 2

8 Contingency Theory - (1970 s to date) Current Management Trends different situations and conditions require different management approaches synthesizes classical, behavioral, and systems approaches situational leadership the contingency approach to management shift toward thinking leaner organizations - downsizing larger span of control - flatter, more horizontal organization more technology History of Project Management Historical legacy Pyramids Roman aqueducts Great Wall Inca/Mayan temples and cities 3

9 Late 1800 s - Industrialization 1900 s - Large-scale plants and organizations conversion from agrarian to industrial organizations evolving management concepts Taylor s Scientific Management established basis for work measurement and production scheduling World War I logistics 1940 s World War II Henry Gantt production scheduling and monitoring Gantt chart Manhattan Project reinforced importance of critical scheduling process flow diagrams 4

10 1950 s - Scheduling tools Scheduling tools (continued) 1957 CPM (Critical Path Method) Dupont - set up a group in Newark, DE to study scheduling combined with Remington Rand UNIVAC team no fundamental changes to date 1958 PERT (Program Evaluation and Review Technique) U.S. Navy Polaris missile program Booz Allen & Hamilton (management consulting firm) working as ORSA team for Lockheed Missile System 1960 s - Large scale applications Earned Value concept Massive government contracts (Vietnam, nuclear power plants, NASA Apollo) required widespread computer aided planning and control Government added PERT/COST in contracts to track schedule/cost elements IBM first to use PM commercially, PM s looked across functional lines developed for monitoring schedule and cost 5

11 1980 s - Computerization hardware/software proliferation makes PM tools accessible to smaller firms technological sophistication adds complexity to projects 1990 s Demand for better, faster, cheaper frequent paradigm shifts - must turn on a dime Downsizing to leaner, quicker, more responsive organizations clients want it On time, on budget 6