MBH1123 Project Scope, Time and Cost Management Prepared by Dr Khairul Anuar. Lecture 1 The Project Environment

Transcription

1 MBH1123 Project Scope, Time and Cost Management Prepared by Dr Khairul Anuar Lecture 1 The Project Environment MBP1123 Scope, Time & Cost Management Prepared by Dr. Zohreh

2 The Project Environment Understanding the concept of project Relate project outcomes to organizational strategy Project Management Body of Knowledge Project Life Cycle and Stakeholders Project Phases 1

3 What is a project? A project is a temporary endeavour undertaken to create a unique product, service, or result. Project is : A specific, finite task to be accomplished Can be of a long or short term duration Can be large or small task 2

4 Projects Vary in Size and Scope NASA shuttle launch Building a boat Building a hospital Building renovation and & space modification Planning a party or wedding Organizing the Olympic games Developing a new software program Building a new gas pipeline Company mergers 3

5 1. Temporary Project Characteristics Temporary nature : definite beginning and definite end Temporary Market Window Temporary project team 2. Unique products, services or results A quantifiable end item or component item Different owner, different design, different location, different contractors 3. Progressive elaboration 4. Multi Disciplinary: Involvement of different experts from different disciplines. 5. Dynamic: In a project always unexpected issues are happening. 6. High Risk : High probabilities of over-running cost and time 4

6 Project Environment All projects are planned and implemented in a social, economic, and environmental context. Therefore, the project team should consider the project contexts containing: Cultural and social environment: How project affect people and how people affect project? International and political environment: Need to be familiar with applicable international, national, regional and local laws. Physical environment: need to have knowledge about the local ecology and physical geography 5

7 Organizational Influences on Projects There are 5 key aspects of organization which influence the project: 1. Organizational systems 2. Organizational culture and styles 3. Organizational Structure 4. The Role of Project Management Office in Organizational structure 5. Project Management System 6

8 Organizational Influences on Projects - Organizational systems Project-based organizations : Organizations that derive their revenue primarily from performing projects for others under contract firms OR adopted management by projects. Non-project-based organizations : These kind of organizations lack management systems to support projects. 7

9 Organizational Influences on Projects - Organizational systems Organizations have developed unique and describable cultures in numerous factors such as: Shared valued, norms, beliefs and expectations Policies and procedures View of authority Work ethic and work hours 8

10 Organizational Influences on Projects - Organizational systems The structure of organization constrains the availability of resources in a spectrum from functional to projectized, with a variety of matrix structure in between. Major types of organizational structures are : Functional organization Projectized organization Matrix organization Composite organization 9

11 Organizational Influences on Projects - Organizational systems Functional Structure 10

12 Organizational Influences on Projects - Organizational systems Projetized Structure 11

13 Organizational Influences on Projects - Organizational systems Matrix Structure 12

14 Organizational Influences on Projects - Organizational systems Functional Structure 13

15 Project and Strategic Planning There are some strategic considerations for organizations such as: market demand, organizational need, customer request, technological advances Projects are a means of organizing activities that can not be addressed within the organization s normal activities such as Strategic Plans. To this goal, organizations employ project teams or a contractors to achieve a strategic plan. 14

16 Examples of Organization s Strategic Considerations Market demand: authorizing a project to build a new library for campus in response to growing number new incoming students. Organizational need: authorizing a project to train staff to utilize automation software Customer request: authorizing a project for launching a new food product line in response to changing customer tastes. Technological advance: authorizing a project to purchase and installation of new software for monitoring construction projects. Legal requirements: authorizing a project to inspect company s current status in response to new rules in the construction industry 15

17 What is Project Management? Project Management is the application of knowledge, skills, tools and techniques to meet project requirements. Project management is accomplished through the application and integration of project management processes of : Initiating, Planning, Executing, Monitoring, Controlling, and Closing. 16

18 Who is a Project Manager? Project Manager is the person responsible for accomplishing the project objectives. Project managers concern about triple constraint : Scope, Time, and Cost. Project quality is affected by balancing abovementioned three factors. 17

19 Project Management Body of Knowledge (PMBOK) PMBOK describes knowledge unique to the project management field and overlaps other management disciplines. The knowledge of project management described in PMBOK guide consists of: Project life cycle definition Five project management process groups Nine knowledge area 18

20 Project Life Cycle Projects are divided into phases to provide better management control with appropriate links to the ongoing operations of the performing organization. These phases are known as the project life cycle. 19

21 Project Life Cycle Definition Projects life cycle generally define : What technical work to do in each step When the deliverables are to be generated and how it is reviewed, verified and validated. Who is involved in each phase How to control and approve each phase 20

22 Project Life Cycle Common Characteristics - 1 Phases are generally sequential and are defined by some form of technical information transfer 21

23 Project Life Cycle Common Characteristics - 2 Level of uncertainty and hence risk of failing is highest at the start of the project. Cost and staffing levels are low at the start, peak during the intermediate phases, and drop rapidly as the project draws to a conclusion. 22

24 Project Life Cycle Common Characteristics - 3 The ability of the stakeholders to influence the financial characteristic of the project s product and the final cost is highest at the start. 23

25 Project Stakeholders Stakeholders are individuals and organizations that are actively involved in the project. Stakeholders interests may be affected as a result of project execution or project completion. Stakeholders may exert influence over the project s objectives and outcomes. Note: Project management team must identify the stakeholders, determine their requirements, expectations and to the extend possible manage their influence in relation to the requirements to ensure a successful project. 24

26 Key Stakeholders Project Manager Internal & External Customers The Performing Organization The Management The Project Sponsor Owners & Funders All the suppliers & Sub-contractors Team Members & their families Government Agencies & Media Outlets Individual Citizens affected by the project The society-at-large 25

27 Project Phases The project life cycle defines the phases that connect the beginning of the project to its end. The completion and approval of one or more deliverables characterizes a project phase. Projects can have four or five phases, but some others may have nine or more. Example : One organization s software development life cycle can have a single design phase, while another can have separate phases for architectural and detailed design. 26

28 Level of effort Project Phases Definition Planning Execution Delivery 1. Goals 2. Specifications 3. Tasks 4. Responsibilities 5. Teams 1. Schedules 2. Budgets 3. Resources 4. Risks 5. Staffing 1. Status reports 2. Changes 3. Quality 4. Forecasts 1. Train customer 2. Transfer documents 3. Release resources 4. Reassign staff 5. Lessons learned 27

29 Project Life Cycle Phase 1 The first phase involves the identification of a need, problem, or opportunity. The need and requirements are usually written by the customer into a document called a request for proposal (RFP). 28

30 Project Life Cycle- Phase 2 The second phase is the development of a proposed solution to the need or problem. This phase results in the submission of a proposal. The customer and the winning contractor negotiate and sign a contract (agreement). 29

31 Project Life Cycle- Phase 3 and 4 The third phase is performing the project. Different types of resources are utilized Results in the accomplishment of the project objective The final phase is terminating the project. Perform close-out activities Evaluate performance Invite customer feedback 30